| Legislative： |
Amended on 4 July 2024 per Order No. Jin-Guan-Bao-Cai-Zi- 11304921744 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 ratio of total adjusted net capital to risk-based capital in the most recent three years must be higher than the regulatory standard for capital adequacy set out in Subparagraph 1, Paragraph 2, Article 143-4 of the Act (hereinafter referred to
as "the regulatory standard"). In addition, the average ratio of total adjusted net capital to risk-based capital including this investment in the most recent period shall be higher than the regulatory standard.
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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