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Article 2 |
The term "mainland China branch unit of a Taiwan-area insurance enterprise" herein means a representative office, branch office, or subsidiary that a Taiwan-area insurance enterprise has established in the mainland China area.
The term "subsidiary" as used in the preceding paragraph means a mainland China-area insurance company in which a Taiwan-area insurance enterprise holds at least 25 percent of either the total number of issued shares or paid-in capital.
The term "equity investment" herein means an equity investment by a Taiwan-area insurance enterprise amounting to less than 25 percent of either the total number of issued shares or paid-in capital of a mainland China-area insurance company.
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Article 4 |
When a Taiwan-area insurance enterprise applies to establish a branch unit or engage in an equity investment in the mainland China area, in addition to abiding by the provisions of these Regulations, it shall also ensure that investments related thereto comply with the provisions of the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area as it relates to investments in the mainland China area.
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Article 13 |
A Taiwan-area insurance enterprise may apply to the competent authority to establish a branch office or subsidiary in the mainland China area if it is in compliance with each of the following provisions:
1. It has already established a representative office in the mainland China area.
2. The figure for paid-in capital less accumulated deficit meets the requirement for minimum capital or fund as set forth under Article 139 of the Insurance Act, and the enterprise has sound operational performance and secure financial capacity.
3. The enterprise's ratio of equity capital to risk-based capital for the most recent year is at least 200 percent.
4. Has committed no material regulatory violations in the past three years.
A Taiwan-area insurance enterprise that is in compliance with subparagraphs 2 through 4 of the preceding paragraph may apply to engage in an equity investment in the mainland China area.
Where facts indicate that an application submitted under either of the two preceding paragraphs is likely to hinder sound business operations, or that such application is not in compliance with the requirements of government policy, the competent authority may deny permission. Where permission has already been granted, it may be revoked.
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Article 14 |
A Taiwan-area insurance enterprise that intends to establish a branch unit in the mainland China area or engage in an equity investment there shall file with the competent authority for permission, submitting the following documents:
1. Application form.
2. Minutes from meetings of the board of directors.
3. Financial reports for the most recent three years, audited and attested by a certified public accountant.
4. Other materials or documents prescribed by the competent authority.
Where the insurance enterprise under the preceding paragraph applies to establish a branch office or subsidiary in the mainland China area, it shall further submit the following documents:
1. A feasibility study report.
2. A business plan setting forth the scope of business that the applicant intends to operate, its business principles and policies, its plans for future development, a financial forecast for the coming five years, its internal organization and division of labor, the ownership relationship between itself and its parent company or head office, the deployment of its personnel, and a recruitment and training plan.
3. An operational risk assessment, analysis of returns, and concrete plan for risk control/management.
4. Possible amount of future capital injections or equity contributions, and an analysis for their different stages.
5. The internal control and auditing systems, and the methods of business operation management and performance evaluation.
6. Certification of the qualifications of the persons expected to serve as responsible persons.
Where the insurance enterprise under paragraph 1 engages in an equity investment in the mainland China area, it shall further submit the following documents:
1. Feasibility study report.
2. The name of the investment target, and a cooperation plan.
3. The percentage of the stake of any equity investment, and the dollar amount.
4. An assessment of risks and analysis of returns.
A Taiwan-area insurance enterprise that has obtained permission from the competent authority to establish a branch unit or engage in an equity investment in the mainland China area shall file again with the competent authority for permission, submitting relevant materials, if any one of the following conditions arises before it carries out the establishment or investment:
1. There is a change in the location or form of the branch unit.
2. There is a change in the investment target.
3. The percentage of the stake or the dollar amount of the investment changes.
The format of the application form set forth in paragraph 1, subparagraph 1 shall be prescribed by the competent authority.
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Article 16 |
Where a Taiwan-area insurance enterprise establishes a branch office or subsidiary in the mainland China area or engages in an equity investment there -- the total amount thereby invested by such enterprise, plus the total amount invested by such enterprise in insurance-related enterprises, as provided for in Article 146-6, paragraph 1 of the Insurance Act, plus the total amount put forward by such enterprise to establish or invest in foreign insurance companies, insurance agent companies, insurance broker companies, or other insurance-related enterprises as approved by the competent authority, as provided for in Article 3, paragraph 1, subparagraph 3 of the Regulations Governing the Scope and Types of Foreign Investment by Insurance Enterprises, may not exceed 40 percent of the insurance enterprise's balance of paid-in capital minus accumulated deficit, and such establishments and investments must also comply with the applicable requirements of the Ministry of Economic Affairs relating to investments in the mainland China area.
When a Taiwan-area insurance enterprise engages in an equity investment in the mainland China area, the total value of its investment in any single mainland China-area insurance company shall not exceed 10 percent of the insurance enterprise's paid-in capital less accumulated deficit.
If a Taiwan-area insurance enterprise intends to increase working capital at a branch office or subsidiary that it has established in the mainland China area, or to increase the amount of an equity investment in the mainland China area, it shall file with the competent authority for permission.
Where an insurance enterprise remits to the Taiwan area the working capital of a branch office in the mainland China area, the capital stock and surplus of a subsidiary there, or the income from an equity investment there, it may deduct the total value of the investments set forth under paragraphs 1 and 2.
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Article 18 |
Within one month after the date on which the competent authority for insurance in the mainland China area grants permission for it to establish a branch office in the mainland China area, a Taiwan-area insurance enterprise shall submit documents pertaining to the following matters to the competent authority [in the ROC] for recordation:
1. The letter of approval from the competent authority for insurance in the mainland China area; if a business license has already been issued, a photocopy of the license shall also be submitted.
2. A list of the lines of business for which the competent authority for insurance in the mainland China area has granted prior approval for the enterprise to operate.
3. The date of establishment, and the full address.
4. The name and contact information of the responsible person or representative.
Within one month after the date on which the competent authority for insurance in the mainland China area grants permission for it to engage in an equity investment, a Taiwan-area insurance enterprise shall submit documents pertaining to the following matters to the competent authority [in the ROC] for recordation:
1. The letter of approval from the competent authority for insurance in the mainland China area.
2. The amount of the investment.
3. The investment target.
4. The equity structure of the investment target.
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Article 19 |
A Taiwan-area insurance enterprise that has established a branch unit in the mainland China area shall submit relevant materials and file again with the competent authority for permission if any one of the following descriptions applies to it:
1. The location, form, responsible person, or line(s) of business of the branch unit undergoes a change, or the branch unit is closed.
2. There is a change in the amount of its capital or equity contribution.
Where any one of the following descriptions applies to a mainland China-based branch office or subsidiary of a Taiwan-area insurance enterprise, its head office or parent company shall take the initiative to file with the situation to the competent authority, setting forth a statement of the reasons and providing relevant materials:
1. Its business address undergoes a change.
2. A particular line of insurance that it operates in order to accommodate local insurance laws and regulations or business practices does not comply with the insurance laws and regulations of the Republic of China.
3. A subsidiary in the mainland China area invests in another company or establishes a new branch unit.
4. There is a material change in its operating policies.
5. A material loss has occurred or is foreseeable.
6. It has been dissolved, or has suspended its business operations.
7. Some other incident of material significance has occurred.
Where any one of the following descriptions applies to a Taiwan-area insurance enterprise that engages in an equity investment in the mainland China area, it shall take the initiative to file with the competent authority, setting forth a statement of the reasons and providing relevant materials.
1. It reduces the amount of its equity investment.
2. The mainland Chinese insurance company in which it has invested suffers a material loss, or is dissolved or has suspended its business operations.
3. Some other incident of material significance occurs.
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Article 21 |
A Taiwan-area insurance enterprise that has established a branch office or subsidiary in the mainland China area, or has engaged in an equity investment there, shall still be required to act in compliance with the provisions of these Regulations upon establishing a new branch office or subsidiary in the mainland China area, or upon engaging in an additional equity investment there.
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Article 22 |
A Taiwan-area insurance enterprise that establishes a branch office or subsidiary in the mainland China area, or engages in an equity investment there, shall, in disclosing its mainland China investment and various financial and operational information, abide by the "Regulations Governing Preparation of Financial and Operational Reports by Enterprises Engaging in Insurance of the Person" or the "Regulations Governing Preparation of Financial and Operational Reports by Enterprises Engaging in Non-life Insurance." In addition, if the aforementioned insurance enterprise is a public company, it shall also abide by the general disclosure requirements set forth in the Securities and Exchange Act under Article 14, paragraph 2, Article 36, paragraph 2, subparagraph 2, and Article 36-1.
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