| Legislative： |
Amended on 20 May 2022 per Order No. Jin-Guan-Bao-Cai-Zi- 11104916624 of
the Financial Supervisory Commission |
| Content： |
Article 3 Insurers shall meet the following qualifications and criteria when applying for investments in insurance-related enterprises:
1. The average risk-based capital ratio in the most recent three years must be higher than 200%. In addition, the average risk-based capital ratio including this investment in the most recent period shall be higher than 200%.
2. The setting aside of various reserve funds during the previous year must be consistent with the legal requirements.
3. The insurer is not subject to any event that may interfere with sound operation, as determined by the competent authority and the insurer meets the following conditions, except if such event has been substantially improved, as determined by the competent
authority:
(1)No Sanction related to the usage of insurer’s funds with a fine of more than NT$3 million was imposed by the competent authority in the most recent year.
(2) No order was issued from the competent authority in the most recent year for the dismissal or replacement of directors, supervisors, or managers.
(3) No sanction was imposed by the competent authority in the most recent year to suspend the insurer’s business or to impose a restriction on the insurer’s finances or business.
(4) No sanction was imposed by the competent authority in the most recent year to cancel any branch organization.
4. The investment is subject to the approval of the insurer’s board of directors. If the insurer is a subsidiary company of a financial holding company, the investment is subject to the approval of the board of directors of such financial holding company.
5. The insurer’s board of directors shall establish a risk management committee or an interior risk management department and one chief risk officer shall assume responsibility for the overall risk management of the company.
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