| Legislative： |
Amendment to Article 10,12~14, 16, 17, 21, 33, 33-1, 43 and 49 promulgated per Financial Supervisory Commission Order No. Jin-Guan-Bao-Zong-Zi- 11004907181 dated March 3, 2021. |
| Content： |
Article 10
A bank that applies for approval to operate concurrently insurance agent business or to increase the types of business shall comply with the provisions of the following subparagraphs:
1. The ratio of regulatory capital to risk-weighted assets within the past year meets the requirement set out in Article 5 of the Ratio of Regulatory Capital to Risk-weighted Assets Regulations Governing the Capital Adequacy and Capital Category of Banks;
2. Having not been imposed disciplinary action by the competent authority pursuant to subparagraphs 1 ~ 5, paragraph 1, Article 61-1, or paragraph 1, Article 62 of the Banking Act, or paragraph 1, Article 164, or Articles 167-2 ~ 167-4 of the Insurance Act
within the past half year; or if there has been any violation, having made concrete improvements recognized by the competent authority; and
3. Not having any material deficiency or irregularity in the implementation of internal controls within the past year; or having made concrete improvements recognized by the competent authority.
If the period from the date of the internet-only bank commencing its business operation to its application date for approval to operate concurrently insurance agent business or to increase the types of business is less than the period set forth in the subparagraphs
of preceding paragraph, the foregoing period is calculated as the actual period of business operation of such a bank.
Article 12
An agent company shall have one general manager in charge of managing the overall operations of the company and shall not have other officers in comparable position.
The geeral manager referred to in the preceding paragraph shall not act concurrently as the chairman or general manager of other agent companies or insurance broker companies.
The general manager of an agent company shall possess one of the following qualifications:
1. Has graduated from a domestic or foreign school at the level of junior college or higher or possessing equivalent academic qualifications, and has served for no less than five years of experience in the position of manager or higher or in an equivalent
position of an insurance company, insurance cooperative, insurance broker company, insurance agent company, insurance surveyor company, or in the position of deputy head of a bank’s separate department operating insurance broker or agent business and has performed
with excellence in such position;
2. Has served for no less than five years as a signatory for an insurance agent or broker; or
3. Has other academic or employment experience sufficient to show that he/she has professional insurance expertise, or experience in managing an insurance business, and is capable of operating an insurance agent business soundly and efficiently.
The appointment or dismissal of the general manager mentioned in the preceding paragraph shall be duly registered with the competent authority in charge of company registration.
Article 13
The chairman of an agent company, at least one third of its directors and supervisors, sales-related vice general manager, managers of branch offices or officers in comparable positions shall possess one of the following qualifications:
1. Has graduated from a domestic or foreign school at the level of junior college or higher or possesses equivalent academic qualifications, and has served for no less than three years of experience in the position of assistant manager or higher or in an equivalent
position on an insurance company, insurance cooperative, insurance broker company, insurance agent company, insurance surveyor company, or in the position of deputy head of a bank’s separate department operating insurance broker or agent business and has performed
with excellence in such position.
2. Has served for no less than two years as a signatory for an insurance agent or broker.
3. Has other academic or employment experience sufficient to show that he/she has professional insurance expertise, or experience in managing an insurance business, and is capable of operating an insurance agent business soundly and efficiently.
Article 14
An agent company shall submit a written statement by the new chairperson or general manager undertaking that who is free of situations set out in any of the subparagraphs of paragraph 1, Article 6 and documents evidencing compliance with qualifications provided
in the preceding two articles, within 15 days after he/she is elected as the chairperson or appointed as the general manager to the competent authority for approval; where the qualifications of the chairperson or general manager are not approved by the competent
authority, the competent authority may order the insurance broker company to make changes within a prescribed period of time; The same shall apply if factual evidence shows that an individual does not possess the required qualifications specified in preceding
two paragraphs after taking office.
Where an agent company has question over whether its chairperson or general manager to be elected or appointed meets the qualification requirements set forth in subparagraph 3 of preceding Article or Article 12, paragraph 3, subparagraph 3 herein, the agent
company may submit the qualification information for approval by the competent authority before the election or appointment.
Where there is a change of director, supervisor, or managers of branch office, an agent company shall submit a written statement by the new appointee undertaking that who is free of situations set out in any of the subparagraphs of paragraph 1, Article 6 and
documents evidencing compliance with qualifications provided in the preceding two articles to the agents association for recordation within fifteen days after the change.
An agent company shall report changes to place of business or paid-in capital to the agents association for recordation within fifteen days after registration of the change (with the appropriate authority); the preceding paragraph applies when an independent
agent or a bank changes his or her place of business.
The directions for the reporting operations set out in the preceding two paragraphs shall be drawn up by the agents association, and submitted to the competent authority for recordation; the preceding provision shall apply to any amendment to those directions.
Article 16
For the agent company applying for operating insurance agent business after Regulations are amended and in force on June 24, 2014 and before Regulations are amended and in force on March 3, 2021, the agent company applying to operate insurance agency business
shall have minimum paid-in capital of NT$5 million. to operate insurance agent business
An agent company already being granted practice license before the amended Regulations are in force on June 24, 2014 shall adjust its capital in accordance with the requirement set out in the preceding paragraph before June 24, 2019.
For the agent company applying for operating insurance agent business after Regulations are amended and in force on March 3, 2021, the agent company shall have minimum paid-in capital of NT$10 million.
For the agent company already being granted practice license before the amended Regulations are in force on March 3, 2021, the agent company shall adjust its capital in accordance with the requirement set out in the preceding paragraph within six months from
date following the settlement date of shares or the transfer date of capital contribution if its accumulated shareholdings or capital contributions transferred is no less than fifty percent of the total outstanding shares or paid-in capital. However, the
above requirement is not applicable to the case where the transfer of shares or capital contributions is due to the death of the shareholder or investor and undertaken by his/her successors.
The capital contributions of promoters and shareholders shall be limited to cash.
Article 17
A bank shall allocate at least NT$50 million as operating capital. The operating capital shall be used exclusively for the insurance agent business and may not be used for other purposes.
A bank already being granted practice license to engage in agent business before the amended Regulations are in force on March 3, 2021 shall adjust its capital to become compliant as set forth in preceding paragraph within one year from the date the amended
Regulations enter into force.
Article 21
A bank that applies to the competent authority for registration to operate insurance agent business shall establish a separate department for such operations with independent operations, and accounting.
Paragraphs 1 of Article 6, paragraphs 1 ~ 3 of Article 12, paragraph 1 and 2 of Article 14 and Article 60 herein shall apply mutatis mutandis to the head of department described in the preceding paragraph; and paragraphs 1 of Article 6, Article 13 and Article
60 herein shall apply mutatis mutandis to the deputy head of department.
Article 33
When independent agents, agent companies and banks practicing or operating business, they shall exercise due care of a good administrator to uphold the interests of the insured, ensure that he or she has provided professional explanations to the proposer and
made full disclosure of information relating to the major contents of the insurance product of interest and major rights and obligations of the insured, ensure that his or her operating procedures and practices are in compliance with applicable laws and regulations,
and store on and file those documents for future reference.
If the insurance contract is produced by insurance companies in digital insurance policy format, the independent agents, agent companies and banks shall obtain the mobile phone number, email, or other contact method of the applicant and insured deemed as sufficient
by the competent authority for transmitting digital documents and provide these information to the underwriting insurance companies.
Agent companies and banks that operate insurance agent business shall draw up internal operating rules and implement them vigorously to make sure their operating procedures and operations are in compliance with relevant laws and regulations.
Article 33-1
A bank shall establish a mechanism to check the source of funds for premiums paid by a customer, whether it is a loan from the bank, a time deposit at the bank that is canceled early without penalty, a contract termination or a policy loan obtained through
the bank that took place within three months prior to the purchase of insurance, and to check whether there is consistency between the customer and the financial information the customer provides for dealings and transactions with the bank.
For customers whose source of funds for premiums paid is a contract termination, a bank loan, a time deposit canceled early without penalty or a policy loan, a bank shall, before referring such cases to the insurer to complete the underwriting process, assign
a staff not from the sales department to conduct phone interview to explicitly inform of associated risks and maximum possible loss for the customers whose source of funds for premiums paid is a bank loan, a time deposit canceled early without penalty or a
policy loan , and clearly inform of related losses of interests in insurance contracts as a result of the insurance purchase after the termination of the contract for customers whose source of funds for premiums paid is a contract termination. However, the
above requirements are not applicable to customers who are purchasing an insurance product that does not require policy value reserve or a mortgage life insurance product that does not pay survival benefit.
When a bank discovers in the phone interview mentioned in the preceding paragraph that there are situations not complying with the rules or countering the intent of the customer, it should, before the insurer completes the underwriting process, notify the insurer
and the customer to rectify the situation or take actions in the interest of the customer.
A bank should tape record the entire phone interview mentioned in Paragraph 2 hereof with the consent of the interviewee and save the record for future audits. The tape record shall be retained for a period of not less than five (5) years after the insurance
contract has expired.
The provisions of the preceding four paragraphs apply mutatis mutandis to insurance agent companies invested and established by a financial holding company or a bank.
Article 43
Independent agents, agent companies and banks shall set up a special ledger to record operating revenues and expenditures and shall compile the various business and financial statements and other items prescribed by the competent authority as well as and submit
them to the competent authority or an institution designated thereby within the time limit set by the competent authority; the formats of the statements and other items shall be separately prescribed by the competent authority.
The competent authority may from time to time send personnel to inspect the operations and assets and liabilities of independent agents, agent companies and banks or order them to report the status of their operations within a time limit.
With respect to the inspection opinions of the competent authority or deficiencies identified by the competent authority in an inspection, an independent agent, an agent company and a bank shall take specific improvement actions and continue to follow up on
the actions taken, and report the implementation of improvement actions to the competent authority within the time limit prescribed by the competent authority. An agent company and a bank shall also submit a written report on the follow-up of improvement actions
taken to its board of directors and supervisors or audit committee for review.
Article 49
Independent agents, agent companies, banks and agents employed by agent companies or banks shall not commit any of the following acts:
1. Make a false representation when applying for a practice license.
2. Operate or practice business operations on behalf of an insurance enterprise that has not been approved and registered.
3. Act on behalf of an insurance enterprise in operating or practicing insurance business operations that have not been approved by the competent authority.
4. Deliberately conceal material matters concerning an insurance contract.
5. Take advantage of his or her professional or business position or use other improper means, with respect to the establishment of a contract, to coerce, induce, or restrict the freedom of an proposer, insured, or insurer, or to collect extra compensation
or other benefit from them.
6. Make exaggerated, false, or misleading claims or advertisements or use other improper methods when operating or practicing business or recruiting personnel.
7. Use improper means to incite an insurance customer to take an action such as to surrender insurance, switch insurance policies, or take a loan.
8. Misappropriate or embezzle insurance premiums or policy proceeds.
9. Not practice oneself, but instead provide the practice license for use by another person.
10. Be sentenced to punishment for embezzlement, fraud, breach of trust, or forgery.
11. Operate or practice insurance business outside the scope specified on his or her practice license.
12. Collect, in addition to commissions and expenses set out in the contract, money, articles or other compensations from an insurer in the name of other expense items or of a third party, or engage in uncustomary transactions.
13. By unlawful means, cause an insurer to make an improper insurance claim payment.
14. Disseminate untrue statements or promotional materials, thus disturbing the financial order.
15. Authorize a third party to operating or practicing business on his/her/its behalf, or operating or practicing business in other’s name.
16. In the case of an agent company, refer an application case solicited by an agent not employed by the company or an insurance solicitor not registered under the company to an insurer, or refer an application case solicited by it to an insurer through another
insurance broker or agent, unless it is a case from an independent agent who has obtained the written consent of the proposer to the effect in advance.
17. Employ people who do not possess the qualifications of insurance solicitor to solicit insurance business.
18. Fail to surrender or cancel practice license within the time period set out in paragraph 1 of Article 15, Article 26, paragraph 5 of Article 27, or paragraph 3 of Article 28.
19. Suspend, suspend its insurance agent business in part or in whole temporarily, resume, dissolve business or terminate its insurance broker business in part or in whole at own discretion.
20. In the case of an agent company or a bank, fail to employ another agent to serve as a signatory in accordance with Article 7, paragraph 2 when an employed agent leaves work.
21. Fail to report matters prescribed by the competent authority to the agents association for recordation.
22. The content of advertising related to insurance products and publicity used in insurance solicitation is not provided or consented by the insurer.
23. Pay commissions to insurance solicitors and their supervisors who did not actually perform the business solicitation; however the preceding provision does not apply to payments of renewal commissions to those who take over policyholder services.
24. Fail to confirm the suitability of an insurance product for a specific consumer.
25. Sell foreign viatical settlement products that have not been approved by the competent authority.
26. Submit business information and financial statement are untrue or incomplete.
27. Is currently serving as an employee of an insurance enterprise or related industry association, or having been registered as an insurance solicitor.
28. Urge or induce customers to rescind or terminate contracts or pay for insurance premiums by taking out a bank loan, canceling a time deposit or taking out a policy loan.
29. Fill out a solicitation report dishonestly.
30.Otherwise violate these Regulations or related acts or regulations.
31. Any other act injurious to the image of insurance business.
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