郵政簡易人壽保險監督管理辦法

The regulations hereof are being established as mandated by Article 31 of the Simple Life Insurance Act (hereinafter referred to as “this Act”).

Insurance products as mentioned in the regulations hereof refer to products offered by Chunghwa Post Co., Ltd. (hereinafter referred to as “Chunghwa Post”) as mandated in Article 4 of this Act, including insurance clauses, applications, premiums and related information specified by the Financial Supervisory Commission（FSC）.

The sale of insurance products by Chunghwa Post, unless otherwise specified by the Insurance Act or unless a product has acquired special approval from the Ministry of Transportation and Communications (MOTC) and the FSC, shall comply with the regulations hereof.

1The procedure before an insurance product is put on the market is as follows:

21. Design: the research and development of an insurance product prior to submission for review.

32. Review: the design of the product is submitted to the MOTC for review and, if and when it is approved, passed on to the FSC for review.

43. Preparation for sale: the procedure after the review and before the commencement of the sale of the product.

1The design procedure for an insurance product shall include the following:

21. Research and development.

32. Formal development: including drafting its clauses, risk control manuals, and its premium rates prospectus.

43. Preparing the submission for review.

5The design procedure as mentioned in the preceding paragraph shall be submitted to the MOTC for approval before being passed on to the FSC for reference; the same shall apply to any amendments.

1Before being submitted for review by Chunghwa Post, the product shall be reviewed by an insurance product review panel. Minutes shall be made of each meeting, and the president of Chunghwa Post shall review the minutes before they are submitted to the MOTC and the FSC for review and approval.

2Either Chunghwa Post’s vice president (or positions of equivalent level) or a department head authorized by the vice president shall serve as the chairperson of the review panel as mentioned in the preceding paragraph, and resolutions shall be made by panel members who are relevant signatories or their agents.

1During the research and development of an insurance product, Chunghwa Post shall precisely implement the following procedures:

21. Evaluate the appropriateness and legality of the product.

32. Evaluate the competitiveness of the rates.

43. Evaluate the feasibility of its system administration.

54. Evaluate its policy goals and establish feasible courses of action. There shall also be concrete ideas detailing professional duty of care, the prudent person rule, target markets, and consumer safeguards with regard to the design of the insurance product.

65. During the design of an insurance product, no false, fraudulent, or exaggerated claims about the performance of the insurance industry may be made, nor any other misleading behavior engaged in.

76. Evaluate the effectiveness of risk control mechanisms.

87. Evaluate the potential impact and adverse factors of the characteristics of insurance products on clients aged 65 and above, including the suitability for sale to clients aged 65 and above.

1When drafting the insurance clauses during the formal development of an insurance product, Chunghwa Post shall precisely implement the following procedures:

21. That the clauses be drawn up in accordance with the design of the product.

32. That the meaning of the clauses is clear.

43. That the clauses are in compliance with relevant insurance law.

54. That the rights and obligations of the applicants, the insured and the beneficiaries are clearly set forth in accordance with the product characteristics as well as with all past complaints and arbitration and litigation cases involving in.

65. That adjustments are made to ensure legal compliance when an insurance product is introduced based on a foreign product.

1When drafting the actuarial memorandum during an insurance product’s formal development stage, Chunghwa Post shall precisely implement the following procedures:

21. Establishing claim items and gathering information for rate making, as well as confirming that the referenced experience and data are related to premium rate making and complies with the following regulations, and that the premium rates are adequate, reasonable and fair. The rates shall reflect the cost of each item and reasonable profits. Chunghwa Post shall not solicit or conduct insurance business by offering unreasonable prices.

3(1) The referenced experience and data shall be based on statistical data from the past 3 to 5 years, focusing on domestic data. Experience and data from the company itself shall also be included in the evaluation. However, where there is no statistical data from the past 3 to 5 years, equivalent foreign data may be referenced to.

4(2) When domestic and foreign data is used to determine the predetermined risk occurrence rate, payment conditions and exclusions specified in the insurance clauses shall be taken into consideration.

5(3) When referring to domestic and foreign data, Chunghwa Post shall understand and obtain the original data, and shall not directly refer to the occurrence rate provided by the reinsurance company. Chunghwa Post shall also ensure complete consistency with the payment terms and conditions of the insurance clauses.

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1Before an insurance product is filed for review, the product should be signed off on by Chunghwa Post’s president or a department head authorized by the president as well as the required number of additional qualified signatories.

2The president shall assume joint liability for the actions of the department head he/she authorizes and be responsible for supervising the signatories.

3One person may not serve concurrently as two or more signatories as mentioned in paragraph 1.

1The qualified signatories as mentioned in paragraph 1 of the preceding article refer to persons with the following qualifications who are designated by Chunghwa Post to signify responsibility by signing and thus facilitate the filing processes of its insurance products:

21. Underwriters who meet the qualifications set forth for underwriters as stated in Article 43.

32. Claim adjusters who meet the qualifications set forth for claim adjusters as stated in Article 44.

43. Actuaries who meet the qualifications set forth for actuaries as stated in Article 32.

54. Legal staff who meet one of the following five sets of qualifications:

6(1) Attorneys qualified to practice under the Attorney Regulation Act.

7(2) Those who have a degree from a department of insurance or law at a domestic junior college or higher educational institution and five years’ experience supervising insurance related legal affairs.

8(3) Those who have five years’ experience in charge of legal affairs at an insurance company.

1When signing off on an insurance product, the president or the department head authorized by the president as well as the qualified signatories shall inspect carefully the factual accuracy, reasonableness, and legality of those for which they are responsible. They shall at least be responsible for the following items or areas:

21. The president or the department head authorized by the president shall be responsible for:

3(1) Description of insurance and declaration.

4(2) Declaration to the FSC.

5(3) The policy amendment form.

6(4) The correctness of the insurance product self-review form.

7(5) The application form.

8(6) The completeness of all mandatory filing components.

9(7) The compliance of the insurance product to applicable regulations.

1The insurance product signatories shall attend at least 15 hours of insurance related professional training offered by an institute designated or recognized by the FSC each year.

2The insurance product signatories who fail to complete the required hours of professional training as mentioned in the preceding paragraph by the end of the year may not sign off on insurance products for Chunghwa Post during the following year.

3The institute designated by the FSC as mentioned in the first paragraph shall submit its course content and assessment standards to the FSC for approval and reference each year.

1Any given insurance product shall complete its review procedure in one of the following manners, unless otherwise specified by the FSC:

21. Review and approval: insurance products shall be submitted by Chunghwa Post to the MOTC for approval before being passed on to the FSC for approval. For insurance products requiring approval from the FSC, the approval shall be obtained prior to the sale.

32. Submission of paperwork for reference: insurance products requiring no approval from the MOTC and subsequently the FSC may go on sale directly. However, Chunghwa Post must submit information required to the MOTC, the FSC or a designated organization for reference within 15 working days of the commencement of sales.

4Regarding the insurance products referred to in Subparagraph 1 of the preceding paragraph, the FSC shall make a reply within 40 working days starting from the day when the application and all relevant documents are received and issue a review result within 75 working days.

5If the insurance products submitted by Chunghwa Post, which are referred to in Subparagraph 1 of Paragraph 1, fail to obtain approval by the FSC and are submitted again for approval within 30 days from the date of denial, the FSC shall make a reply within 25 working days starting from the day when the application and all relevant documents are received and issue a review result within 45 working days. In such cases, the provisions of the preceding paragraph shall not be applicable.

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1When filing an insurance product for review, Chunghwa Post shall do so in accordance with the following: applicable acts and regulations; directions for insurance product review as adopted by the FSC; and practice principles, self-regulatory rules or codes of professional conduct adopted by domestic professional societies (associations) or other relevant entities designated or commissioned by the FSC.

2Chunghwa Post shall submit the necessary documents (both hard and digital copies) as required by the FSC or any FSC-designated institution to the FSC or the designated institution for review and for establishing an insurance product database.

3The hard and digital copies mentioned in the preceding paragraph shall be prescribed by the FSC.

4After an insurance product has been approved and recorded by the FSC, the FSC may disclose relevant information to the public. Such information shall contain at least the following:

51. Insurance product descriptions.

62. Policy clauses.

73. Application forms.

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1The MOTC or the FSC may return Chunghwa Post’s insurance product filing without review or order Chunghwa Post to suspend sale under any of the following situations (except for circumstances specified in Subparagraphs 8 and Subparagraphs 10 to 12 hereof), and make a public announcement of the same:

21. The content is not compliant with applicable legal requirements in a material manner.

32. The product has not been signed off on by the president, a department head authorized by the president or the required numbers of qualified signatories.

43. The filing contains a major error or misses an important filing component.

54. The filing contains false information.

65. A false or materially erroneous statement is made by the president, a department head authorized by the president, or any of the signatories.

76. Sales have commenced without observing the provisions of Article 14, Paragraph 1 or Article 18 Paragraph 1.

87. The company fails to follow correct filing procedures.

1Chunghwa Post shall submit its insurance product filing to the FSC for approval within the limits that the FSC sets forth.

2In the event that a filing as mentioned in the preceding paragraph is still under review by the FSC or the FSC has requested Chunghwa Post to make additions or revisions to a filing, and the total number of such products has exceeded the limit set by the FSC, the filing will be returned without review by the FSC.

1In the event that an approved insurance product has made changes to its policy clauses, application forms, actuarial memorandums or pricing, such changes shall be subject to the procedures for Submission of paperwork for reference set out in these Regulations unless the FSC determines that the changes are significant or the renewal rate is increased for guaranteed renewal, in which case the provisions of Subparagraph 1 of Paragraph 1 of Article 14 shall govern. The preceding paragraph does not apply unless otherwise specified by the FSC.

2When increasing the renewal premium rate for personal health insurance products that are guaranteed to be renewed, Chunghwa Post shall follow Item 1, Paragraph 1, Article 9, and shall deliver a notice to the policyholder three months before the new premium rate is charged, stating that the product is guaranteed to be renewed without guarantee of the premium rate, as well as the rate adjustment content, and assign personnel or a dedicated person to clarify the details by phone call. However, if the policyholder is provided such details during the sale of a new contract or after underwriting with proof retained, it is not necessary to do so.

3The rate adjustment referred to in the preceding paragraph includes the new rate, reasons for rate adjustment, timing of premiums calculation based on the new rate, and handling of objections from the policyholder regarding rate adjustment.

4The audit unit of Chunghwa Post shall verify and confirm whether the regulations on rate adjustment referred to in the three preceding paragraphs are implemented for the increase of premium rate for renewal of personal health insurance products. Rates shall be adjusted only after the Auditor General issues a statement.

1Before an insurance product is put on the market, Chunghwa Post shall call a product management panel meeting to review the following:

21. Disclosure of product information.

32. Verification of actuarial data and putting them on line.

43. Risk management mechanism and arrangement of reinsurance.

54. Setting up and testing of information systems.

65. The printing of such documents as policy clauses, application forms, rate charts and brochures.

76. Educational training, including training salespersons to understand whether the insurance products are suitable for sale to clients aged 65 and above, and to identify unsuitable sales targets and client characteristics.

8Chunghwa Post shall review and confirm the consistency between the items listed in the preceding paragraph and the evaluation results referred to in Paragraph 7, Article 7 in accordance with the same paragraph.

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1After an insurance product has been put on the market, Chunghwa Post shall convene an insurance product management meeting at least once every six months to review the following product-related matters, take responding measures and make necessary adjustments:

21. Its compliance with applicable laws and regulations.

32. Its consumer protection measures, including more review and evaluation of adverse effects of insurance products on the rights and interests of customers aged 65 and above based on past policyholder dispute cases, any situations where product suitability has not been implemented, or any violation of the principle of fair hospitality.

43. Its business strategies regarding the insurance product and the potential impacts of the product on its current or future solvency.

54. The appropriateness of the product’s asset-liability allocation. For life insurance products with an insurance period exceeding one year, implementation of asset allocation schemes shall be included.

65. Analysis of the pricing reasonableness of insurance products shall include the adequacy of the premium (loading rate). Furthermore, pricing rationality analysis shall be conducted in accordance with the analysis methods prescribed by the FSC. For cases where the rate is insufficient due to deterioration of practical experience incidence, or where the rate is higher due to improvement of practical experience incidence, specific response measures shall be developed.

Where it is necessary to make changes to an insurance product in order to comply with the revisions to applicable laws or regulations, Chunghwa Post shall, unless otherwise stipulated by these laws or regulations, make the necessary changes and file a memorandum to the insurance product database established by the FSC or an institution it commissions within 45 working days from the date the revisions to the laws or regulations become effective. Article 18 herein does not apply.

When asked to attend (or observe) an insurance product screening meeting convened by the FSC or a professional institution it commissions, Chunghwa Post shall send at least one executive with a thorough understanding of the product to attend (or observe) the meeting. Before attending the meeting, the company’s representatives shall carefully read the meeting materials. After the meeting, these representatives shall submit a written report detailing all the material controversies and the main conclusions of the meeting to the insurance product review panel as well as a copy to the president for review.

1In the event Chunghwa Post errs in one of the following ways, the FSC may, depending on the seriousness of the offense, prohibit Chunghwa Post from filing for approval or submission of paperwork for reference for an insurance product in accordance with Paragraph 1 of Article 14 herein within one year, and a public announcement about the matter shall be made. This article does not apply to insurance products that are being amended in order to comply with the changes in applicable laws or regulations or when prior approval has been granted by the FSC.

21. Chunghwa Post fails to suspend its sales of an insurance product when it is ordered by the FSC to do so.

32. A signatory continues to sign off for Chunghwa post after being disqualified by the FSC.

43. Three times or more within the past year, the FSC has confirmed the occurrence of a circumstance set out in the subparagraphs under Paragraph 1 of Article 16. However, a minor violation stated in Subparagraph 7 of Paragraph 1 of Article 16, when the FSC has dealt with the matter in accordance with Paragraph 3 of Article 16, is not subject to the limits.

54. Within the past year, the FSC has assessed a cumulative total of 15 or more violation points for insurance products that Chunghwa Post’s signatories have signed off on behalf of Chunghwa Post.

1Where any one of the following situations applies with respect to an item for which a signatory bears responsibility as mentioned in Article 12, the FSC may, depending on the seriousness of the offense, assess from one to three violation points and disclose the same to the insurance industry for a period of three years:

21. The content on which a signatory has signed off on is not compliant with applicable laws in a material manner.

32. There are major discrepancies between the content or format of what was submitted and the filing requirements.

43. The content contains a major error or misses an important filing component.

54. The filing contains false information.

65. The filing contains a false or wrong statement.

76. The content on which a signatory has signed off on is in material violation of directions for insurance product review adopted by the FSC.

87. The content fails to meet the practice principles and self-regulatory rules or codes of professional conduct in a material manner by domestic professional societies (associations) or other relevant entities designated or commissioned by the FSC.

1The persons responsible for the simple life insurance operations of Chunghwa Post as mentioned in the regulations hereof include the following:

21. Board members and corporate supervisors of Chunghwa Post.

32. President of Chunghwa Post.

43. The chief auditor, the vice president and directors supervising simple life insurance and its financial matters (or positions of equivalent level).

54. Directors of Chunghwa Post’s Simple Life Insurance, director of the Department of Capital Operations and director of the Department of Property Operations.

65. Managers of post office branches of all levels at Chunghwa Post.

1The responsible person for the simple life insurance business of Chunghwa Post must have good moral character and must not be in any of the following situations. A responsible person having taken office to whom any of the following descriptions applies shall be dismissed:

21. Legally incompetent persons or legally quasi-incompetent persons.

32. Persons who have been convicted of breaking the Organized Crime Prevention Act.

43. Persons convicted of counterfeiting currency, counterfeiting valuable securities, embezzlement, fraud or breach of trust and sentenced to imprisonment who are either not yet in prison or have not started serving, are still in prison or were released from prison, on probation or pardoned within the last 10 years.

54. Persons found guilty of forgery, invasion of privacy, usury, preventing people from collecting debts owed them, or breaking provisions in the Tax Act, Commercial Label Act, the Copyright Act or other acts or regulations governing industry and commerce and sentenced to imprisonment who are either not yet in prison or have not started serving, still in prison or who were released from prison, on probation or pardoned within the last 5 years.

65. Persons convicted of corruption and sentenced to imprisonment who are either execution of the sentence has not started serving, still in prison or who were released from prison, on probation or pardoned within the last 5 years.

1Chunghwa Post’s chief auditor, vice president and directors supervising the simple life insurance business and its financial matters (or positions of equivalent level), as well as the director of the Life Insurance department, the director of the Capital Operations department, Director of the Department of Property Operations department and the managers of the special supervisory post offices, must have good moral character and possess one of the following qualifications:

21. A degree from a domestic or overseas junior college or higher-level educational institution, or an equivalency diploma of that level, or a passing mark on the senior-level civil service exam or equivalent exam; 12 years’ experience working in postal administration with a good job record; completion of coursework in insurance and auditing, with a combined total of at least 40 hours of classroom time, for which certificates from a professional training facility recognized by the MOTC and the FSC are obtained.

32. A degree from a domestic or overseas junior college or higher-level educational institution, or an equivalency diploma of that level; 5 years’ experience working in insurance companies and 3 years’ experience working at the level of assistant manager or above or a similar position in the headquarters of an insurance company with a good job record.

1Managers of first-grade and second-grade supervisory regional post offices of Chunghwa Post must have good moral character and possess one of the following qualifications:

21. A degree from a domestic or overseas junior college or higher-level educational institution, or an equivalency diploma of that level, or a passing mark on the senior-level civil service exam or equivalent exam; 8 years of experience working in postal administration with a good job record; completion of coursework in insurance and auditing, with a combined total of at least 30 hours of classroom time and graduation certificates from a professional training facility recognized by the MOTC and the FSC.

32. A degree from a domestic or overseas junior college or higher-level educational institution, or an equivalency diploma of that level; 3 years’ experience working in insurance companies and 2 years’ experience working as a junior manager or above or having a similar position in the headquarters of an insurance company with a good job record.

Chunghwa Post shall submit a report for reference to the MOTC and the FSC of the persons filling post of chief auditor within 10 days from the date on which the post is filled. If a person filling a post is not qualified as mandated in the regulations hereof, that person shall be dismissed.

1The board members of Chunghwa Post (including a chairperson) shall have good morals and shall meet one of the following four sets of qualifications:

21. A degree from a domestic or overseas junior college or higher-level educational institution, or an equivalency diploma of that level ,or a passing mark on the senior-level civil service exam or equivalent exam; 12 years’ experience working in postal administration with a good job record; completion of coursework in insurance and auditing, with a combined total of at least 40 hours of classroom time and graduation certificates from a professional training facility recognized by the MOTC and the FSC.

32. A degree from a domestic or overseas junior college or higher-level educational institution, or an equivalency diploma of that level; 10 years’ experience working in insurance companies and 3 years’ experience working as a manager or above or a similar position in the headquarters of an insurance company with a good job record.

43. A degree from a domestic or overseas junior college or higher-level educational institution, or an equivalency diploma at that level; 5 years’ experience working in postal administration or insurance administration with a good job record; having held an intermediate level position of grade 8 or above, or a position of similar rank with a good job record.

54. Other experiences or facts that sufficiently indicate leadership quality, professional knowledge or operational experiences in the simple life insurance business which indicate that the person is able to run the simple life insurance business of Chunghwa Post efficiently (as approved by the FSC beforehand).

If the FSC has doubts about the qualifications of a person-in-charge of the simple life insurance business at Chunghwa Post, the MOF may notify Chunghwa Post to submit necessary documentation or information or to send someone to explain within a certain timeframe.

1To ensure a sound operation of postal simple life insurance business, Chunghwa Post shall appoint one of the hired actuaries as the Appointed Actuary.

2The Appointed Actuary provided in the preceding paragraph shall have all of the following qualifications:

31. The qualifications of an actuary.

42. Five years’ experience of actuarial work in the field of insurance.

53. Coursework completed in the professional ethics of a valuation actuary from a training facility designated or recognized by the FSC.

6An external reviewing actuary (hereinafter referred to as “reviewing actuary”) shall be appointed only after serving as an Appointed Actuary for at least 5 years. However, those who have served as reviewing actuaries before January 16, 2024 are not subject to this restriction.

7Actuaries referred to in Paragraph 1 and subparagraph 1 of Paragraph 2 to a professional working as an insurance actuary and meet one of the following conditions:

81. Fellow of a domestic actuarial institute (society) recognized by the FSC.

1Anyone who falls into any of the following categories shall be unqualified to assume the post of an Appointed Actuary or reviewing actuary, and if the person has assumed such post, he/she shall be dismissed:

21. Legally incompetent persons or legally quasi-incompetent persons.

32. Persons who have been convicted of rebellion or treason.

43. Persons convicted of forgery, embezzlement, fraud or breach of trust and sentenced to imprisonment who are either still in prison or were released from prison, on probation or pardoned within the last 10 years.

54. Persons convicted of corruption and sentenced to imprisonment who are either still in prison or who were released from prison, on probation or pardoned within the last 5 years.

65. Persons convicted of breaking provisions of this Act, Insurance Act, Banking Act, Securities Transaction Act, Futures Trading Act or Foreign Exchange Management Act who were sentenced to imprisonment and are either still in prison or were released from prison, on probation or pardoned within the last 5 years.

76. Persons who have suffered or are responsible for a major loss of credit standing, whether resolved or not, within the last 5 years.

1The appointment of an Appointed Actuary appointed by Chunghwa Post shall be first approved by more than half of the attendance in the meeting of the board directors which shall be attended by more than half of the board members of Chunghwa Post. The same shall apply to termination of appointment.

2After appointing an Appointed Actuary or the reviewing actuary, Chunghwa Post shall submit the following documents to the MOTC and the FSC for review:

31. The application for appointment.

42. The minutes of the meeting of the board of directors relating to the approval for assignment or appointment.

53. The certificates substantiating that an Appointed Actuary or reviewing actuary meets the qualifications set forth under Paragraph 3 of Article 32.

64. A statement stating that an Appointed Actuary or reviewing actuary has not been in the circumstances set forth in Article 33.

75. A letter of authorization issued by the board of directors pursuant to Article 38.

8Upon termination of an Appointed Actuary, Chunghwa Post shall submit a written statement to the MOTC and the FSC to report the reasons for the termination and appoint a new Appointed Actuary within three months.

1Chunghwa Post shall appoint a reviewing actuary to be responsible for signing the report review items designated by the FSC.

2Chunghwa Post shall not appoint a reviewing actuary with any of the following circumstances. Those who have already been appointed shall be dismissed:

31. Those who have been appointed for two consecutive times for review in accordance with Paragraph 1, Article 36.

42. Those who worked as an Appointed Actuary for Chunghwa Post within the past 3 years.

5The appointment of a reviewing actuary shall be subject to the approval of the board of directors of Chunghwa Post with the attendance of more than half of directors and the consent of more than half of attending directors.

6After appointing a reviewing actuary, Chunghwa Post shall submit the following documents to the MOTC and the FSC for reference:

71. The application for appointment.

82. The minutes of the meeting of the board of directors relating to the approval for assignment or appointment.

Chunghwa Post shall establish a system and appoint personnel for actuarial affairs to assist in the provision, establishment and maintenance of data required by the Appointed Actuaries or reviewing actuaries; and shall cooperate with the handling of actuarial affairs, and implement continuous education, training or development plans for actuaries to enhance their quality.

1The Appointed Actuary shall submit a signing report to the FSC on the following items on the date designated by the FSC each year:

21. Determination of premium rates: Actuaries shall regularly review the premium rates of simplified life insurance products on sale, and propose appropriate adjusted rates or other feasible measures if the premium rates lack fairness, reasonableness, or adequacy.

32. Reserve accounting: The Appointed Actuaries shall ensure that reserves and actuarial assumptions made by Chunghwa Post in accordance with Regulations Governing Enrollment in Postal Simple Life Insurance Policies are reasonable, and reasonably ensure that the reserves are sufficient to meet future payment needs of the policy. Where there is insufficient deposit, the Appointed Actuary shall recommend response measures to Chunghwa Post.

43. Policy dividend distribution: The Appointed Actuaries of Chunghwa Post shall recommend an appropriate policy dividend distribution scheme before the distribution of policy dividends each year.

54. Investment decision evaluation: The Appointed Actuary shall provide professional analysis and opinions on the coordination and impact of investments in Postal Simple Life Insurance on its assets and liabilities, which shall serve as a reference for investment decision making.

65. Assessment of solvency: Appointed Actuaries should evaluate the financial solvency of Postal Simple Life Insurance annually based on different assumed economic conditions and environments.

1Chunghwa Post shall submit a review report to the FSC on the signing report for the past year and review items specified by the FSC on the designated date based on the following review conditions and frequency:

21. A review shall be conducted annually on the capital level that fails to meet the conditions of capital adequacy as defined in Article 143-4 of the Insurance Law in the past two years.

32. A review shall be conducted every three years on the capital level that meets the conditions of capital adequacy as defined in Article 143-4 of the Insurance Law in the past two years.

4The FSC may adjust the review frequency referred to in the preceding paragraph based on the quality of the signing report, compliance with the laws and regulations on deposit of reserves, and business distribution, and may designate additional years and items for review as necessary.

5The review report in paragraph 1 should include the relevant items and scope as required by the FSC.

1While on duty, should the valuation actuary find that the operation of the postal simple life insurance business is likely to cause or has already had a big negative impact on the company’s financial situation, the valuation actuary shall report to the president in writing immediately and make recommendations on measures to improve the situation within a certain time. If the situation is not improved within certain time, the valuation actuary shall report to the board of directors in writing. If the situation is serious, the valuation actuary shall report to the MOTC and the FSC immediately.

2After completing the Appointed Actuary’s report, the Appointed Actuary shall submit the report, together with the relevant proposals to the board of directors of Chunghwa Post. If necessary, the board of directors or the FSC may request the Appointed Actuary give an oral explanation of the contents of such submission.

3After completing the peer review report, the reviewing actuary shall submit the copy of the report to Chunghwa Post and its Appointed Actuary for reference. Then, the Appointed Actuary shall submit the result of the review assessment to the board of directors of Chunghwa Post. If necessary, the board of directors or the FSC may request the reviewing actuary give an oral explanation of the contents of such submission, and the Appointed Actuary shall attend.

4Chunghwa Post shall, within fifteen days after each of the board meetings referred in the preceding three paragraphs, submit the respective meeting minutes to the FSC for recordation.

1The Appointed Actuary and reviewing actuary shall handle signing and review services in accordance with insurance laws and relevant principles on actuarial practice.

2The actuarial practices principles referred to in the preceding paragraph shall be developed by domestic actuarial societies (associations) or other relevant units designated or commissioned by the FSC.

1The board of directors of Chunghwa Post should authorize the valuation actuary to be allowed to make the following demands in the performance of his/her duties:

21. The valuation actuary may demand the persons responsible for or the employees of the postal simple life insurance business to provide accurate information or documents as well as to answer questions relating to his/her valuation works.

32. In regard to related questions about the solvency of the postal simple life insurance business, the valuation actuary may attend meetings at Chunghwa Post in which important decisions are made and express his/her opinions.

4The board of directors of Chunghwa Post shall authorize the reviewing actuary to request the Appointed Actuary or related staff to provide correct information or documents associated with his/her reviewing procedures and to answer relevant questions.

1The Appointed Actuary or reviewing actuary shall comply with the code of professional ethics developed by their actuarial societies (associations) or that developed by domestic insurance academic institutions recognized by the FSC. The Appointed Actuary or reviewing actuary shall avoid the following circumstances in their signing or review:

21. The signing report or review report contains items that should be clarified to avoid misunderstandings, but are unaccounted for.

32. The signing report or review report contains falsehoods, omissions, or errors, which are not disclosed or corrected.

43. Methods inconsistent with insurance laws and actuarial practice principles are adopted, which are not disclosed.

1In any of the following circumstances, an Appointed Actuary or reviewing actuary shall refuse to perform certification:

21. Where Chunghwa Post intends to mislead him or her to make a false or improper certification.

32. When Chunghwa Post intentionally refuses to provide necessary information.

43. Where he or she is unable to make a fair, detailed, and true certification due to wrong-doings committed by Chunghwa Post.

An Appointed Actuary or reviewing actuary shall, on a regular basis, attend the training programs designated or recognized by the FSC and obtain certificates proving that he/she has passed. And shall be filed with the FSC together with the Appointed Actuary’s report or the peer review report for recordation. An Appointed Actuary or reviewing actuary, who fails to obtain the completion certificate for each of the aforesaid training programs which shall be attended in a specific period, shall not perform any certification for Chunghwa Post.

In the case that an Appointed Actuary or reviewing actuary has violated this Act or the regulations hereof, the FSC may give him/her warning or revoke his/her qualifications for certification for 3 years, depending on the seriousness of the offense, and may order Chunghwa Post to replace the offending actuary.

1Underwriters of postal simple life insurance shall meet one of the following five sets of qualifications:

21. A degree from a domestic or overseas junior college or higher-level educational institution, or an equivalency diploma of that level, or a passing mark on the senior-level civil service exam or equivalent exam; completion of coursework in insurance-related subjects, with a total of at least 120 hours of classroom time; four years work experience in assisting underwriters.

32. A degree from a domestic or overseas junior college or higher-level educational institution, or an equivalency diploma at that level; five years’ work experience assisting underwriters.

43. Work experience as a postal life insurance claims adjuster including at least one year of experience assisting underwriters.

54. A qualification that is the equivalent of an insurance underwriter qualification from a domestic or overseas insurance association, insurance research institute or a government registered insurance professional institute and have one year of experience assisting underwriters.

65. A qualification certificate for an insurance underwriter acquired before the implementation of the regulations hereof.

1Claims adjusters of postal simple life insurance shall meet one of the following five sets of qualifications:

21. A degree from a domestic or overseas junior college or higher-level educational institution, or an equivalency diploma of that level, or a passing mark on the senior-level civil service exam or equivalent exam; completion of coursework in insurance-related subjects, with a total of at least 120 hours of classroom time; four years work experience in assisting claims adjusters.

32. A degree from a domestic or overseas junior college or higher-level educational institution, or an equivalency diploma in that level; five years’ work experience assisting claims adjusters.

43. Work experience as a postal life insurance underwriter including at least one year of experience assisting claims adjusters.

54. A qualification that is the equivalent of insurance claims adjuster qualifications from a domestic or overseas insurance association, insurance research institute or a government-registered insurance professional institute and at least one year of experience assisting claims adjusters.

65. A qualification certificate for an insurance claims adjuster acquired before the implementation of the regulations hereof.

Persons who have committed crimes internationally and were sentenced to imprisonment within the last 5 years may not serve as an underwriter or claims adjuster of postal simple life insurance; persons who have committed crimes internationally and were sentenced to imprisonment within the last 5 years and who are already an underwriter or claims adjuster of postal simple life insurance shall be dismissed.

1Persons who have qualifications to be both an underwriter and claims adjuster may serve as only one of the two for postal simple life insurance.

2Any claims adjuster of postal simple life insurance may not handle the process of signing any claim cases that he/she reviewed or signed off within the last three years.

3Any underwriter or claims adjuster of postal simple life insurance may not conduct underwritings, claim reviews or sign off for the cases that he/she previously solicited.

1“Insurance agents” as mentioned in the regulations hereof refer to persons who engage in soliciting postal simple life insurance business. “Insurance agents management” as mentioned in the regulations hereof refers to the management of these insurance agents as they solicit insurance contracts.

2Insurance agents of Chunghwa Post may not solicit postal simple life insurance business without obtaining an agent registration certificate from Chunghwa Post first.

1The person has attained the age of majority and hold a degree from a junior high school or higher-level educational institution, or an equivalency diploma of that level may apply, subject to Chunghwa Post’s approval, to be a Chunghwa Post insurance agent if they fall into any of the following qualifying categories:

21. Those who have received educational training on simple life insurance and passed an insurance agent qualification test.

32. Those who have passed the life insurance agent qualification test held by the Life Insurance Association of the ROC may directly register after receiving educational training on simple life insurance.

43. Any insurance agent who has passed the postal simple life insurance agent qualification test before the enforcement of the regulations hereof.

5The required qualifications as mentioned in the preceding paragraph shall be set forth in the regulations governing the insurance agents.

6Chunghwa Post shall draw up the guidelines for the insurance agent qualification tests as mentioned in subparagraph 1 of paragraph 1 and submit them to the MOTC and the FSC for reference.

1Chunghwa Post shall not approve an insurance agent registration application from anyone who falls into any of the following categories (and registration shall be cancelled for anyone who already possesses a registration found to belong to any of the following categories):

21. Legally incompetent persons, legally quasi-incompetent persons or those with limited legal capacity or subject to the court order of commencement of assistance and such order has not been revoked.

32. Persons whose applications are found to contain false statements.

43. Persons who have violated provisions of the Organized Crime Prevention Act and who were sentenced to imprisonment and are either still in prison or were released from prison, on probation or pardoned within the last 5 years.

54. Persons convicted of forgery, embezzlement, fraud or breach of trust and sentenced to imprisonment who are either still in prison or were released from prison, on probation or pardoned within the last 3 years.

65. Persons who have violated provisions of this Act, Insurance Act, Banking Act, Financial Holding Company Act, Trust Enterprise Act, the Act Governing Bills Finance Business, Financial Asset Securitization Act, Real Estate Securitization Act, Securities and Exchange Act, Futures Trading Act, Securities Investment Trust and Consulting Act, Foreign Exchange Control Act, Credit Cooperative Act, Money Laundering Control Act, Counter-Terrorism Financing Act, or other financial regulations who were sentenced to imprisonment in a final judgment and are either still in prison or were released from prison, on probation or pardoned within the last 3 years.

1Should there be any change of status for an insurance agent, Chunghwa Post shall take the following actions towards the agent’s registration within 5 days:

21. Add an entry of changes should there be any changes on the items registered.

32. Add an entry of suspension if the agent is ordered to stop soliciting as punishment.

43. The solicitor’ s registration revoked in accordance with Article 49 hereof add an entry of annulment should the agent die, lose legal capacity, terminate his/her contract with Chunghwa Post or for other reasons stop soliciting for Chunghwa Post.

54. Add an entry of revocation should the agent’s registration be revoked in accordance with Articles 51 or 56 hereof.

6Under any of the situations set forth in Subparagraphs 2 to 4 of the preceding paragraph, the agent or his/her heir shall hand in the registration certificate for cancellation.

7The change of status of an agent as mentioned in subparagraph 3 of the first paragraph shall be the date on which the solicitor has completed the change formalities.

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1After registering with Chunghwa Post, insurance agents shall attend training held by Chunghwa Post regularly.

2Chunghwa Post shall revoke the registration of any insurance agent failing to attend a training course. The same shall apply to any agent who fails the training course twice in a row.

Agents registered with Chunghwa Post shall solicit simple life insurance business for Chunghwa Post only.

1Any agent who solicits postal simple life insurance business with Chunghwa Post’s authorization shall be deemed as engaging in behavior authorized by Chunghwa Post; Chunghwa Post shall strictly manage the registered solicitors and shall be jointly and severally liable for any damage caused by solicitation of the solicitors.

2The authorization as mentioned in the preceding paragraph shall be in a written form and entered on the agent’s registration certificate.

3The soliciting of postal simple life insurance business as mentioned in the first paragraph hereof refers to the following behaviors of solicitors:

41. Explaining the contents and policy clauses of insurance products.

52. Explaining how to fill out application forms.

63. Conveying application documents and policies.

74. Other behaviors authorized by Chunghwa Post to carry out solicitation of postal simple life insurance business.

8In engaging in the act of insurance solicitation referred to in the preceding paragraph, a solicitor shall meet with the applicant and the insured in person and obtain the relevant insurance documents signed by the applicant and the insured, unless otherwise stipulated by the FSC.

Chunghwa Post shall establish a separate set of guidelines to govern the solicitation of business of the insurance agents.

In the case that an insurance agent has violated the Simple Life Insurance Act, or the FSC or MOTC has made enquiries about the soliciting of insurance of an insurance agent, Chunghwa Post shall submit an explanation within a certain timeframe set by the FSC or MOTC.

1Should an agent violate the regulations hereof or be at fault in any of the following ways, apart from when an agent suspected of breaking the law shall refer the solicitor to the law enforcement for investigation of alleged crime, Chunghwa Post shall punish him/her with a suspension for the said solicitation activities for a period of not less than three months but not more than one year or revoke his or her solicitor registration, and arrange mandatory trainings for the solicitor:

21. In regard to matters affecting the rights and interests of the applicant or the insured, the agent has either given an explanation that is a misrepresentation or has failed to give any explanation at all.

32. The agent instigates the applicant or the insured to conceal facts or make false statements; or the agent knows that the applicant or the insured has concealed facts or made false statements and has intentionally kept it from the company.

43. The agent hinders the applicant or the insured from providing relevant information.

54. In order to obtain business, the agent gives the applicant or the insured incorrect quotes, sharing parts of the commission or employing some other inappropriate method to provide a discount on the premium.

65. The agent has made exaggerated promotional statements or advertisements or used other inappropriate methods to solicit business.

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This regulation shall come into effect on the date of issuance, except for Articles 35 and 36, which were revised and issued on November 24, 2025, and shall come into effect on January 1, 2026.