郵政簡易人壽保險投保規則

1The reserves referred to in the Simplified Life Insurance of Chunghwa Post include insurance contract liabilities in accordance with International Financial Reporting Standards 17 (IFRS 17), financial liabilities in accordance with International Financial Reporting Standards 9 (IFRS 9), service contract liabilities calculated in accordance with International Financial Reporting Standards 15 (IFRS 15), and other reserves set aside based on service properties.

2The insurance contract liability mentioned in the preceding paragraph refers to the amount of total of remaining coverage liabilities and claimed liabilities minus the cash flows assets received from the insurance.

3The term Measurement Model as mentioned in the regulations refers to the Premium Allocation Approach, Variable Fee Approach, and General Measurement Model not falling under the former two, as specified in IFRS 17.

4The calculation of policy value reserves for pure endowment, mortality insurance, and endowment insurance adopts the equalization reserve method.

1The proposer shall fill out an application form when entering into an insurance contract. The proposer and the insured shall answer all the questions on the form truthfully, sign or affix their seals on the form, and then give it to Chunghwa Post along with the first premium payment.

2After receiving the premiums as mentioned in the preceding paragraph and agreeing to insure it, Chunghwa Post shall issue a receipt.

1When the proposer and the insured are not the same person, the proposer and the insured shall meet with the insurance agent together.

2Insurance agents as mentioned in the preceding paragraph hereof refer to persons who are engaging in soliciting postal simple life insurance business.

After comprehensive assessment on an application for a postal simple life insurance policy, Chunghwa Post may refuse to underwrite a contract if the insured fails to meet the underwriting standards. However, the insured shall not be denied coverage solely because he/she is physically or mentally disabled. Chunghwa Post shall notify the proposer in writing of the reasons for not underwriting the policy. Chunghwa Post may also decide to offer to lower the amount of insurance or shorten the period of insurance for the reasons of physical or mental handicap of the insured, however, the reasons shall be stated in writing, in such circumstances, Chunghwa Post shall underwrite the insurance after the proposer agrees to the changes.

1The policy shall be signed and sealed by the Deputy General Manager (or positions of equivalent level) of Chunghwa Post in charge of life insurance, and countersigned by the Director of Life Insurance Department, and shall include the following subparagraphs:

21. Insured amount.

32. Coverage type and duration.

43. Premium.

54. Name of the proposer.

65. Name of the insured.

76. Name of designated beneficiary.

87. Effective date of insurance contract.

98. Policy No. and date of issuance.

1The premiums are paid monthly, quarterly, semi-annually, annually or in single payment in accordance with the agreement made in the insurance contract. The premiums shall be calculated in accordance with the premium rate chart and paid by the proposer term-by-term or paid-up in accordance with the paid-up rate table.

2The premium after the second term shall be paid through bank transfers in accordance with the contract. After the premium is paid, the proposer may ask for a receipt.

If the proposer is unable to pay the renewal premium within the grace period specified in Paragraph 1, Article 13 of this Act due to force majeure, the insurer may extend the grace period within 10 days after the cause is eliminated.

In the case that a single proposer has purchased more than two insurance contracts, the proposer may fill out a contract change form and designate that premium be combined and paid on the same date.

When applying to move insurance to another insurance handling branch or applying to change the address, date of payment, payment method, payment schedule, or the account making the bank draft, the proposer shall notify the insurer.

1Within the effective period of insurance, the proposer may make changes to the insurance contract. The period of insurance and the period of payment may not be longer than what’s specified in the original contract. In the case of applying to change the amount insured, the amount may not be higher than the original contract or lower than the amount required. For contracts whose premiums have been paid over a year, the proposer may change it into paid-up insurance with a reduced lump sum payment.

2When applying for any of the aforementioned, a contract change form shall be filled out and given to the insurance handling branch along with the policy.

If the proposer applies to change the beneficiary, or if the proposer died and his/her heir assumes the insurance contract, a notice of contract change shall be prepared, signed or sealed by the insured and submitted to the handling office of Chunghwa Post along with the policy.

1When applying for reinstatement of an insurance contract in accordance with the provisions under Article 14 of this Act, the proposer shall fill out a contract reinstatement form and give it to the insurance handling branch along with the policy as well as the unpaid premiums and interest accrued.

2When applying for reinstatement as mentioned in the preceding paragraph, Article 6 hereof shall apply.

1Proposers terminating the contract in accordance with Article 18 of this Act shall prepare a notice of contract change and submit it together with the policy to the handling office of Chunghwa Post. Those who paid the premiums for more than one year may apply for the return of policy value reserve that they are entitled to.

2The conditions and amount for the return of policy value reserve due as referred to in the preceding paragraph shall be specified in the insurance contract, and the amount shall not be less than 90% of the policy value reserve.

3When the proposer terminates a lump-sum payment insurance contract, the insurer shall return the entire policy value reserve.

When the proposer is applying for the refund of the entitled policy value reserve in accordance with the provisions under Paragraph 1 of Article 21 of this Act, apart from that the insurance contract shall be terminated in accordance with the provisions under Article 18 of this Act, the calculation and conditions shall comply to the provisions under Paragraphs 2 and 3 of the preceding articles hereof.

1When taking out a policy loan in accordance with the provisions under Paragraph 1 of Article 23 of this Act, the amount of loan may not exceed 80% of the amount mentioned in Paragraph 2 of Article 16 hereof.

2The interest rate of the loan as mentioned in the preceding paragraph shall be set and publicly announced by Chunghwa Post.

The interest of the loan shall be calculated in simple interest starting from the date when the loan is handed over. When repaying, the proposer may pay part or all of the capital and accrued interest. Interest shall be calculated until the day before the redemption.

In the event of the insured’s death, the beneficiary shall fill out a claim form and submit it to the insurance handling branch along with the policy, the death certificate or autopsy report and household register with the deceased’s name crossed off.

Beneficiaries applying for insurance benefits upon expiration of the simple life insurance contract with Chunghwa Post shall prepare the application for insurance benefit, and submit it together with the policy to the handling office of Chunghwa Post.

1In the case that the insured becomes disabled or deceased because of disease, birth or accident, the beneficiary shall fill out a claim form and submit it to the insurance handling branch along with the policy, the doctor’s diagnosis in writing and other related certificates.

2The insured shall be the beneficiary of the aforementioned disability benefit in the preceding paragraph.

The insurance handling branch shall deduct the due premiums, the capital and interest of the premium loan or capital and interest of the policy loan from the benefit payable.

1When the number of employees or members and their families of any institution, school, factory, company, store or other government registered organization (which are not established for the purpose of purchasing insurance) reach a certain number, they may purchase group individual life insurance.

2The minimum number as mentioned in the preceding paragraph shall be set by Chunghwa Post.

1Group individual life insurance as mentioned in the preceding article shall enjoy a premium discount; the discount amount and methods shall be separately negotiated by the insurer and the proposer.

2The insurer shall submit a report of the aforementioned situation to the FSC for approval and notify the Ministry of Transportation and Communications in writing.

1When applying for a group individual life insurance, the group applying shall elect a representative to fill out the group individual life insurance application and submit it to Chunghwa Post along with the application and first premium of each insured.

2After receiving the premiums as mentioned in the preceding paragraph and agreeing to insure it, Chunghwa Post shall issue a receipt.

In the case of any new proposer for group individual life insurance, a “Notification of Individual Joining Group Insurance” shall be filled out and submitted to the branch handling the insurance along with the application of the new member.

The best estimating assumption for the discount rate of insurance contract liabilities shall take into account up-to-date information of the liquid financial market, and follow the methods specified by the FSC and IFRS regulations.

1For funds set aside as reserves, except for the discount rate assumption mentioned in the preceding article, other assumptions shall be made based on the best estimating assumptions of Chunghwa Post and relevant empirical data.

2Regarding the assumption of occurrence rate, if the empirical data on occurrence rate is insufficient and lacks credibility, it shall be determined based on the credibility actuarial principles of the empirical data on occurrence rate, and the following data:

31. Life tables compiled and published by government agencies based on population data of different regions.

42. The empirical life tables, annuity tables, and related experience tables designated by the FSC.

5The principles for calculating the credibility of empirical data on occurrence rate and other actuarial assumptions in the preceding paragraph shall be subject to the principles for actuarial practice issued by the Actuarial Institute of Chinese Taipei (AICT).

After complete judgment of the merger or separation of insurance products sold, if the contracts of insurance products meet the scope definition of insurance contracts and investment contracts with discretionary participation characteristics as stated in IFRS 17, the General Measurement Model, Premium Allocation Approach, or Variable Fee Approach shall be applied, and the insurance contract liabilities shall be calculated in accordance with the regulations of IFRS 17.

1When the General Measurement Model is applied to a contract group, a reserve shall be set aside for liabilities based on the remaining coverage liabilities measured.

2The remaining coverage liabilities referred to in the preceding paragraph is the sum of the following two subparagraphs calculated in accordance with the regulations of IFRS 17 and based on the actuarial assumptions stipulated in Articles 28 and 29:

31. The performance cash flows allocated to the contract group on the valuation date for future services.

42. The contractual service margin of the contract group on the valuation date.

1After complete judgment of the merger or separation of insurance products sold, if the contracts of insurance products are essentially contracts on investment related services, and they meet all the following three conditions, the Variable Fee Approach shall apply:

21. The contract terms specify the proposer’s share in a clearly identifiable target project pool.

32. The expected amount to be paid to the proposer is equal to a significant share of the fair value compensation of the target project.

43. The significant proportion of any changes in the amount expected to be paid to the proposer is subject to changes in the fair value of such target projects.

5The principles for determining the significant share referred to in the preceding Subparagraph 2 and the significant proportion referred to in Subparagraph 3 shall be subject to the practice principles of AICT approved by FSC.

1When the Variable Fee Approach is applied to a contract group, the contractual service margin shall be adjusted according to the regulations of IFRS 17 to reflect fees collected. The remaining coverage liabilities shall be calculated based on the nature of changes in the investment target, and a reserve shall be set aside for liabilities.

2The remaining coverage liabilities referred to in the preceding paragraph is the sum of the following two subparagraphs calculated in accordance with the regulations of IFRS 17 and based on the actuarial assumptions stipulated in Articles 28 and 29:

31. The performance cash flows allocated to the contract group on the valuation date for future services.

42. The contractual service margin of the contract group on the valuation date.

1When the General Measurement Model or Variable Fee Approach is applied to a contract group, a compensation reserve shall be set up based on the claimed liabilities measured.

2Claimed liabilities referred to in the preceding paragraph are the cash flows calculated in accordance with the regulations of IFRS 17 and based on the actuarial assumptions stipulated in Articles 28 and 29; such cash flows were allocated to the contract group on the valuation date and related to past services.

1After complete judgment of contract group of the merged or separated insurance products sold, if the contract group meets one of the following conditions for initial recognition, the Premium Allocation Approach shall be applied to the calculation of the insurance contract liability:

21. It is reasonably expected that there will be no significant difference in the measurement of remaining coverage liabilities of the group resulting from the simplification compared to that using the General Measurement Model.

32. The coverage period for each contract within the group is within one year.

1When the Premium Allocation Approach is applied to the contract group, there is no need to calculate the split performance cash flows and contractual service margin using the General Measurement Model or Variable Fee Approach. Instead, the remaining coverage liabilities shall be calculated based on the collected premiums in accordance with the regulations of IFRS 17, and a reserve shall be set aside for unearned premiums.

2When calculating the remaining coverage liabilities, the following simplification methods shall be adopted:

31. If the coverage period of each contract within the group does not exceed one year, such costs shall be recognized as current expenses when cash flows from insurance occur.

42. When the expected time for each part of the service provided for initial recognition is no more than one year after the expiration date of the relevant premium, the amount impacted by the time value of money and financial risks shall not be reflected.

5When the contract group has incurred losses during the remaining coverage period under factual and objective conditions, the general model shall be used to calculate the cash flows related to the remaining coverage period of the group, and a reserve shall be set aside for unearned premiums based on the amount of remaining coverage liabilities exceeding that referred to in Paragraph 1.

1When the Premium Allocation Approach is applied to the contract group, incurred loss reserve shall be set aside based on the liability for incurred claims measured.

2Liability for incurred claims referred to in the preceding paragraph are the cash flows calculated in accordance with the regulations of IFRS 17 and based on the actuarial assumptions stipulated in Articles 28 and 29, which were allocated to the contract group on the measurement date and related to past services. However, for the expected future cash flows paid or received within one year from the date of claim, the corresponding fulfillment cash flows shall not reflect the amount impacted by the time value of money and financial risk.

When insurance acquisition cash flows are not designated as current expenses, such acquisition cash flows assets shall be calculated based on insurance acquisition cash flows paid before an insurance contract group is recognized, and an equal amount shall be set aside as a negative insurance acquisition cost reserve.

1After complete judgment of the merger or separation of insurance products sold, if the contracts are non-discretionary investment contracts, a reserve shall be set aside for insurance contracts with financial product features based on the financial liabilities measured at fair value or financial liabilities measured at amortized cost in accordance with the regulations of IFRS 9.

2The principles for measuring the financial liabilities shall be subject to the practice principles of AICT approved by FSC.

1Where there is a distinguishable single commodity or service in the insurance products sold, the service contract liability shall be measured by calculating the transaction price allocated to each performance obligation in accordance with the regulations of IFRS 15, and set aside as a reserve for service contracts.

2The principles for measuring the service contract liabilities shall be subject to the regulations of IFRS 15 and the practice principles of AICT approved by FSC.

1For foreign investment assets held, a foreign exchange price fluctuation reserve shall be set aside from other liabilities.

2The aggregate limit of reserves and methods of setting aside and offsetting referred to in the preceding paragraph, and other items to be complied with, shall be subject to the regulations of FSC.

1For participating life insurance products sold, at settlement of the accounting year, the accumulative difference between the accounting profit and loss of the account to which the policy dividend belongs and the time of shareholder dividend distribution shall be calculated in accordance with the Method for Sharing and Income Distribution of Participating and Non-participating Life Insurance Policies reported to the FSC for reference and the regulations of IFRS 17, so as to set aside a special reserve for participating policy dividends.

2The aforementioned special reserve for participating policy dividends shall be allocated to the special surplus reserve under the equity in accordance with the regulations of IAS 12 after income tax is deducted.

1Liabilities for remaining coverage of each contract group shall be calculated using the General Measurement Model and Variable Fee Approach, in order to set aside a liability reserve. When the amount of such reserve is lower than the corresponding policy value reserve after policy loans are deducted, a policy value difference reserve shall be set aside according to the method determined by FSC.

2The aforementioned special reserve for participating policy dividends shall be allocated to the special surplus reserve under the equity in accordance with the regulations of IAS 12 after income tax is deducted.

1The special reserve for retained insurance with a coverage period of less than one year shall include the following subparagraphs:

21. Special reserve for major accidents: refers to the reserve set aside to cope with huge compensation required for future major accidents.

32. Special reserve for abnormal fluctuations: refers to the reserve set aside to cope with abnormal changes in loss rates or claims for each insurance coverage.

43. Other special reserves increased due to special needs. The methods of increasing and offsetting, and the aggregate limit, shall be first approved by FSC.

5The major accident referred to in the preceding Subparagraph 1 refers to a situation that meets the requirements of a major disaster announced by the government. In the event of a single accident, the cumulative retained compensation for each insurance coverage of Chunghwa Post reaches NTD$30,000,000, and the total amount of compensation payable for each insurance coverage of the entire life insurance industry reaches NTD$1,000,000,000 or above.

6The annual increase in the amount of special reserves for each Subparagraph referred to in Paragraph 1 shall be allocated to the special surplus reserve under the equity in accordance with the regulations of IAS 12 after income tax is deducted.

1For retained insurance with a coverage period of less than one year, a special reserve for major accidents shall be set aside or treated in accordance with the following subparagraphs:

21. Special reserves for major accidents for each insurance coverage shall be set aside based on the ratios determined by FSC.

32. When the amount of retained compensation for a major accident exceeds NTD$30,000,000, it shall be offset against the special reserve for major accidents. The offset amount shall be reported to FSC for reference.

43. For special reserves set aside for major accidents for more than 15 years, a recovery mechanism shall be established and evaluated by a certified actuary, and submitted to FSC. for reference. The same applies when making changes.

5The amount to be offset or recovered referred to in the preceding Subparagraphs 2 and 3 shall be the balance after income tax is deducted in accordance with the regulations of IAS 12, and may be offset or recovered from the special reserve for major accidents set aside under the equity.

1For retained insurance with a coverage period of less than one year, a special reserve for abnormal fluctuations shall be set aside or treated in accordance with the following subparagraphs based on insurance coverage:

21. When the balance of actual compensation of each insurance product is lower than the expected compensation priced after the special reserve for major accidents is deducted, a special reserve for abnormal fluctuations shall be set aside at 15% of the difference.

32. When the balance of actual compensation of each insurance coverage exceeds the expected compensation priced after the special reserve for major accidents is deducted, the excess amount shall be offset against the special reserve set aside for abnormal fluctuations. When the special reserve for abnormal fluctuations for the insurance product is insufficient to offset, it may be offset by the special reserve for abnormal fluctuations set aside for other insurance coverage. The insurance coverage and amounts offset shall be subject to the points for attention provided by FSC, and reported to the Commission for reference.

43. When the cumulative total amount of special reserves for abnormal fluctuations for each insurance coverage exceeds 30% of the retained maturity amount for the current year, the excess amount shall be recovered in accordance with the regulations.

5The recovery of special reserves for abnormal fluctuations referred to in the preceding third paragraph shall be designated or restricted by FSC based on the needs of stable development of the insurance industry.

6The balance of each insurance coverage to be offset or recovered referred to in the second and third paragraphs of Subparagraph 1 after income tax is deducted in accordance with the regulations of IAS 12, shall be offset or recovered by the special reserve for abnormal fluctuations in the special surplus reserve set aside under the equity.

1For insurance products with a coverage period exceeding one-year, special reserves shall be increased based on special needs. The method of increasing and offsetting, and the aggregate limit, shall be reported to and approved by FSC.

2The annual increase in the special reserve referred to in the preceding paragraph shall be allocated to the special surplus reserve under the equity in accordance with the regulations of IAS 12 after income tax is deducted.

The reserve ratios and calculation methods for other insurance products with special properties, and other items to be complied with, shall be subject to the regulations of FSC.

1The reserves required to be set aside for reinsurance contracts held for the handling of reinsurance ceding include insurance contract assets calculated based on the nature of reinsurance contracts and in accordance with the regulations of IFRS 17, financial assets calculated in accordance with the regulations of IFRS 9 for ceding, and other reserves set aside for ceding based on service features.

2The insurance contract assets for ceding referred to in the preceding paragraph are the total amount of remaining coverage assets and claimed assets. The measurement of these assets shall be carried out in accordance with the following subparagraphs and other provisions of this chapter by using the same measurement method as the liabilities under Articles 4, 28, and 29, and shall reflect the differences in treatment between the holder and the issuer from different perspectives:

31. When grouping the reinsurance contracts held, claimed onerous contracts issued in accordance with the regulations of IFRS 17 shall be replaced by net profit contracts.

42. If the reinsurance contracts held are not insurance contracts with direct participation features, the Variable Fee Approach shall not apply. The contractual service margin or remaining coverage assets of remaining measurement models shall be adjusted in accordance with the regulations of IFRS 17 for any losses incurred by onerous underlying insurance contract groups.

53. The estimated future cash flows measured with the group of reinsurance contracts held shall adopt actuarial assumptions consistent with the underlying insurance contracts, and include all expected cash flows arising from the existence of substantive rights and obligations under the contracts of the group. Such cash flows include expected future underwriting covered by the contract group, and cede cash flows related to the insurance contracts, and shall reflect the impact of any non-performance risk of the issuer of reinsurance contracts.

64. The risk adjustment of reinsurance contract groups held shall reflect the corresponding amount of risk transferred by Chunghwa Post to the re-insurer for the group.

75. The contractual service margin measured by the reinsurance contract group held shall reflect any net cost or net benefit of the purchase of the reinsurance contract group held, as well as the amount of loss recovery and reversal arising from onerous underlying insurance contract groups.

1After complete judgment of the merger or separation of reinsurance contracts held for reinsurance ceding, if the contracts meet the scope definition of insurance contracts in IFRS 17, the General Measurement Model or Premium Allocation Approach shall be applied, and the insurance contract assets shall be calculated in accordance with the regulations of IFRS 17. If the reinsurance contract group meets one of the following conditions for initial recognition, the Premium Allocation Approach shall be applied:

21. It is reasonably expected that there will be no significant difference between the measurement of the remaining coverage assets of the group generated by simplification and the measurement generated by applying the General Measurement Model.

32. The coverage period of each reinsurance contract held in the group is within one year.

1When the General Measurement Model is applied to the group of reinsurance contracts held for reinsurance ceding, a reserve for ceding liability shall be set aside based on the remaining coverage assets measured.

2The remaining coverage liabilities referred to in the preceding paragraph is the sum of the following two subparagraphs calculated in accordance with the regulations of IFRS 17 and based on the calculation in Article 49:

31. The performance cash flows allocated to the contract group on the measurement date for future services.

42. The contractual service margin of the contract group on the measurement date.

1When the Premium Allocation Approach is applied to the group of reinsurance contracts held for reinsurance ceding, there is no need to calculate the split performance cash flow and contractual service margin using the General Measurement Model. Instead, the remaining coverage assets of ceding shall be calculated based on the paid reinsurance premiums in accordance with the regulations of IFRS 17, and a reserve shall be set aside for immature ceded premiums.

2When calculating the remaining coverage assets referred to in the preceding paragraph, the simplification method as stated in Paragraph 2, Article 36 shall be referred to.

1For groups of reinsurance contracts held for reinsurance ceding, claimed assets shall be calculated based on the measurement model, and a reserve shall be set aside for ceded indemnities.

2Claimed assets referred to in the preceding paragraph refer to the cash flows related to past services allocated to the contract group on the measurement date, which are calculated based on actuarial assumptions stated in Article 49 in accordance with the regulations of IFRS 17. When the Premium Allocation Approach is applied, the expected future cash flows will be paid or received within one year from the date of claim, and the performance cash flows shall not reflect the amount impacted by the time value of money and financial risk.

After complete judgment of the merger or separation of reinsurance contracts held for reinsurance ceding, if the contracts are non-discretionary investment contracts, a reserve shall be set aside and ceded for insurance contracts with financial product features based on the financial assets measured at fair value or financial assets measured at amortized cost in accordance with the regulations of IFRS 9.

1For ceded personal insurance with a reinsurance coverage period exceeding one year, FSC may designate and set aside a specific reserve for long-term ceded reinsurance based on the ceded reinsurance coverage.

2The specific reserve for long-term ceded reinsurance referred to in the preceding paragraph shall be set aside as a special surplus reserve under the equity in accordance with the regulations of IAS 12 after income tax is deducted, which shall not be distributed or used for any other purposes without the approval of FSC, and shall be disclosed in the notes to the financial statements.

When treating reinsurance ceding, Chunghwa Post shall set aside or treat a special reserve for major accidents for ceded policies after incorporating the reinsurance contracts held for a period of less than one year into the calculation of retained insurance as stated in Articles 44 to 46, as well as a special reserve for abnormal fluctuations.

1For reserves set aside in accordance with the regulations, except for special reserves, in addition to the calculation of the relevant funds for direct insurance, reinsurance ceding, and retained insurance, relevant statements shall be prepared in accordance with the accounting system or accounting treatment principles approved by FSC, and recorded in special account books.

2At the end of the business year, reserves for direct insurance, reinsurance ceding, and retained insurance for that year shall be reported in accordance with the requirements of FSC in terms of format and content after being audited and signed by the actuary.

The regulations shall come into effect on the date of issuance, except for Article 4 and Articles 28 to 57, which shall come into effect on January 1, 2026.