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Article 7 |
A person in any of the following circumstances may not apply for a broker practice license or serve as a director, supervisor, or manager of a broker company.
1.Has no legal capacity or limited legal capacity;
2.Has committed a crime under the Organized Crime Prevention Act, and has been found guilty by a final and unappealable judgment;
3.Has previously committed a crime of embezzlement, fraud, breach of trust, or forgery, and has received a final and unappealable sentence of imprisonment for a definite period or a more severe punishment, and three years have not yet passed since execution of the sentence was completed, probation expired, or pardon was granted, as the case may be;
4.Has received a final and unappealable sentence for violating the Insurance Act, the Banking Act, the Financial Holding Company Act, the Trust Enterprise Act, the Act Governing Bills Finance Business, the Financial Asset Securitization Act, the Real Estate Securitization Act, the Securities and Exchange Act, the Futures Trading Act, the Securities Investment Trust and Consulting Act, the Act for Regulation of Foreign Exchange, the Credit Cooperative Act, or any other financial regulatory act, and three years have not yet passed since execution of the sentence was completed, probation expired, or pardon was granted, as the case may be;
5.Has been declared bankrupt, and his or her rights have not been reinstated;
6.Has served as the responsible person of a juristic person at the time it was declared bankrupt, where three years have not yet passed since the close of bankruptcy, or where reconciliation has not been performed;
7.Has undergone a material loss of creditworthiness that has yet to be settled or three years have not yet passed since settlement;
8.Has been dismissed from office or sanctioned with an administrative fine for a violation of the Insurance Act or the Fair Trade Act and three years have not yet passed since dismissal or sanction;
9.There is factual proof that he or she has engaged in or otherwise been involved with any other dishonest or improper activities in the past three years, demonstrating unsuitability for the work in question;
10.Is currently serving as an employee of an insurance enterprise or related industry association;
11.Is already registered as an insurance solicitor, provided, this does not apply where a solicitor of a broker company is to serve as a director or manager;
12.His or her practice license has been cancelled or revoked by the competent authority and five years have not yet elapsed;
13.Has been involved in serious cheating in a special examination for professional or technical personnel of insurance enterprises, and has been sentenced to imprisonment for a definite period by a final and unappealable judgment;
14.Is otherwise restricted by law.
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Article 8 |
A person possessing a broker qualification as set out in these Regulations may, after obtaining a practice license, practice individually in his or her own name or as an employee of a corporate organization.
A corporate organization applying to operate a brokering business shall employ at least one person possessing one of the broker qualifications set forth in the preceding paragraph to serve as a signatory, and carry out registration of permission with the competent authority. The company shall make appropriate adjustments to the number of such persons according to the scale of its business. When necessary, the competent authority also may require the company to employ additional brokers to serve as signatories.
After completing the registration under the preceding paragraph, it shall duly carry out registration of incorporation with the appropriate authority.
No broker may serve as a signatory for two or more companies concurrently.
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Article 9 |
A person intending to practice individually as a broker shall submit the following documents in carrying out registration of permission with the competent authority:
1.An application form.
2.Certification showing that the qualification requirements set out in these Regulations are met.
3.Certification of pre-job training, obtained within the last two years and recognized by the competent authority; for a person whose certification of pre-job training was obtained two years or more earlier, the already obtained certification of pre-job training may be submitted along with certification of on-the-job training as set out in Article 24; where registration of permission is based on the qualifications set out in Article 5, paragraph 1, subparagraph 3, certification of on-the-job training as set out in Article 24 may be submitted.
4.Proof of identity.
5.A business plan.
6.Written statement of the non-existence of the circumstances listed in the subparagraphs of Article 7.
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Article 10 |
Where brokering business is being practiced under the name of a corporate organization, the following documents shall be submitted in registering for permission with the competent authority:
1.An application form.
2.Certification showing that any brokers employed meet the qualification requirements set out in these Regulations.
3.Proof of identity for any brokers employed.
4.Certification of pre-job training, obtained within the last two years by any brokers employed and recognized by the competent authority; for a person whose certification of pre-job training was obtained two years or more earlier, the already obtained certification of pre-job training may be submitted along with certification of on-the-job training as set out in Article 24; where registration of permission is based on the qualifications set out in Article 5, paragraph 1, subparagraph 3, certification of on-the-job training as set out in Article 24 may be submitted.
5.A written statement that any brokers employed are free of the circumstances in subparagraphs 1 to 9 and 12 to 14 of Article 7.
6.A business plan.
7.A list of promoters or shareholders stating each promoter's or shareholder's name, sex, date of birth, domicile, ID number, and amount paid for subscription/purchase of shares.
8.The articles of incorporation.
9.Proof of full payment for shares or proof of the balance of deposits of the company.
10.Documents evidencing the qualifications of the designated manager.
Where any of the promoters or shareholders referred to in subparagraph 7 of the preceding paragraph is a foreign insurance broker company, the documents set out in Article 39, paragraph 1, subparagraphs 1 through 3 shall also be submitted.
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Article 11 |
A manager of a broker company shall possess one of the following qualifications:
1.Has graduated from a domestic or foreign school at the level of junior college or higher or possesses equivalent academic qualifications, and has no less than three years of insurance company, insurance cooperative, insurance broker, insurance agent, or insurance surveyor work experience.
2.Has graduated from a domestic or foreign school at the level of junior college or higher or possesses equivalent academic qualifications, and has served for no less than two years as a signatory for an insurance broker.
3.There is other factual evidence sufficient to prove professional insurance expertise or insurance work experience, and capability for safe, sound, and effective operation of an insurance business.
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Article 12 |
Where there is a change of director, supervisor, or manager at a broker company, a written statement of the non-existence of the circumstances listed in the subparagraphs of Article 7 shall be submitted to the brokers association for recordation.
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Article 13 |
When a broker company employs an additional broker or changes a broker, and such new broker already has a practice license, the broker company shall report to the brokers association for recordation within one week after employing the additional broker or changing the broker.
The brokers association shall prescribe directions for the procedures under the preceding paragraph.
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Article 14 |
A corporate organization applying to operate brokering business shall have minimum paid-in capital of NT$3 million; one applying to operate reinsurance brokering business shall have minimum paid-in capital of NT$6 million; one applying to simultaneously operate insurance brokering business and reinsurance brokering business shall have minimum paid-in capital of NT$6 million. The capital contributions of promoters and shareholders shall be limited to cash.
If paid-in capital is less than what is required under the preceding paragraph, a capital increase shall be carried out to make up the difference by 8 December 2006.
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Article 15 |
After registration of permission, a broker shall present the receipt for bond posted with the Central Bank or a bank commissioned thereby, or an insurance policy showing the purchase of professional liability insurance, to the competent authority and request issuance of a practice license.
An individual practitioner shall post a bond of NT$200,000; a corporate organization shall post a bond amounting to 15 percent of its paid-in capital, provided, the amount posted may not be less than NT$600,000.
A person concurrently applying to obtain practice licenses for brokering of insurance of the person and of non-life insurance shall separately post bonds in accordance with the preceding two paragraphs; one operating reinsurance brokering business shall post double the amount of bond required under the preceding paragraph.
Bond may be posted in cash, government bonds, or treasury bills.
The posted bond will be returned upon duly made application only after suspension of business has been declared, liquidation completed, and the practice license surrendered and cancelled; provided, an individual practitioner may apply for return of the bond after he has ceased to practice and his practice license has been surrendered and cancelled.
Where purchasing professional liability insurance, the policy period may not be interrupted, and for an individual practitioner the insured amount for any one occurrence may not be less than NT$1 million; for a corporate organization, the amount shall be 30 percent of paid-in capital, but not less than NT$2 million; for a broker operating reinsurance brokering business, the amount shall be not less than NT$4 million, and the same shall apply for a broker simultaneously operating insurance brokering business and reinsurance brokering business.
For professional liability insurance referred to in the preceding paragraph the aggregate insured amount for each policy period shall be not less than three times the minimum insured amount for any one occurrence as referred to in the preceding paragraph.
Where professional liability insurance has been purchased, each year after renewing the insurance contract [the broker] shall file a report for recordation with the brokers association for corporate or individual practitioners. Where the insurance contract is to be canceled or terminated and a bond posted instead, a request for approval shall be submitted in advance to the competent authority.
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Article 16 |
A broker shall apply to the competent authority for issuance of a practice license and commence operations within six months from the date of registration of permission. If the broker has not yet applied or has not yet commenced operation at the end of this period, the competent authority will revoke its registration.
A broker company may apply to suspend its practice temporarily upon approval from the competent authority. However, it shall within one year employ at least one qualified broker to serve as a signatory and resume operations. If it exceeds this period, the competent authority will cancel its practice registration and practice license.
Where there is legitimate reason, an application for extension of a deadline specified in the preceding two paragraphs may be filed; such an application may be made one time only.
If after a broker company has begun operating it fails to employ at least one qualified broker to serve as a signatory in accordance with Article 8, paragraph 2, it may not practice business, and it shall within three months employ at least one qualified broker to serve as a signatory. If it exceeds this period, the competent authority will cancel its practice registration and practice license.
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Article 17 |
Upon application to the competent authority for the issuance of a practice license, a broker shall pay the fees set by the competent authority and submit either proof of the posting of bond or an insurance policy showing the purchase of professional liability insurance.
A corporate organization shall also submit an incorporation registration form, a list of directors and supervisors, as well as a written statement of the non-existence of the circumstances listed in any of the subparagraphs of Article 7 with respect to the directors, supervisors, and managers, and proof of the non-existence of the circumstances in subparagraphs 10 and 11 of Article 7 with respect to the brokers employed.
Where a broker company is dissolved and liquidated or a broker practicing individually ceases business activities, the practice license thereof shall be surrendered and cancelled.
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Article 19 |
A practice license is valid for a period of five years and procedures for its renewal shall be completed before the expiration of the period.
Upon application for renewal of a practice license, the fee set by the competent authority shall be paid and the following documents submitted:
1.The original practice license.
2.Certification of on-the-job training recognized by the competent authority.
3.Proof of posting of bond, or an insurance policy showing the purchase of professional liability insurance.
4.The consolidated income tax returns of the broker (listing sources of income) for the past three years, tax withholding statements accompanied by an affidavit, or other documents proving that he or she has actually practiced the business.
5.Written statement of the non-existence of the circumstances listed in the subparagraphs of Article 7.
6.Certification showing membership in the brokers association for corporate or individual practitioners in accordance with Article 33.
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Article 20 |
The competent authority may not renew a practice license under any of the following circumstances:
1.Violation of Article 6.
2.Any of the circumstances listed in the subparagraphs of Article 7.
3.Violation of Article 8, paragraph 2 or 4.
4.Failure to apply for renewal of the practice license within the time limit specified in Article 19.
5.Failure to carry out amendment registration and have the practice license renewed within the time limit specified in Article 31, paragraph 2.
6.Failure to file business and financial statements in accordance with Article 32.
7.Failure to pay administrative fines, annual supervisory fees, examination fees, or other fees.
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Article 35 |
A broker that has not been sanctioned by the competent authority within the last three years for violating an act or regulation may apply to the competent authority for approval to establish a branch office.
In addition to employing a qualified broker to serve as a signatory, an applicant for establishment of a branch office shall submit the following documents:
1.An application form clearly stating the name and location of the branch office.
2.The minutes of the board of directors meeting resolving to establish the branch office.
3.Proof of identity for the branch office's responsible person and any additionally employed brokers, and proof of their compliance with the qualification requirements set out in these Regulations.
4.Certification of pre-job training for any brokers employed, obtained within the last two years and recognized by the competent authority; for a person whose proof of pre-job training was obtained two years or more earlier, the already obtained certification of pre-job training may be submitted along with certification of on-the-job training as set out in Article 24; where registration of permission is based on the qualifications set out in Article 5, paragraph 1, subparagraph 3, certification of on-the-job training as set out in Article 24 may be submitted.
5.A written statement that any brokers employed are free of the circumstances in subparagraphs 1 to 9 and 12 to 14 of Article 7.
6.A business plan for the branch office.
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Article 36 |
A broker shall not commit any of the following acts:
1.Make a false representation when applying for a practice license.
2.Negotiate and conclude an insurance contract for an insurance enterprise that has not been approved and registered.
3.Deliberately conceal material matters concerning an insurance contract.
4.Take advantage of his or her professional or business position or use other improper means, with respect to the establishment of a contract, to coerce, induce, or restrict the freedom of a proposer, insured, or insurer, or to collect extra compensation or other benefit from them.
5.Make exaggerated, false, or misleading claims or advertisements or use other improper methods when engaging in business or recruiting personnel.
6.Use improper means to incite an insurance customer to take an action such as to surrender insurance, switch insurance policies, or take a loan.
7.Misappropriate or embezzle insurance premiums or policy proceeds.
8.Not practice oneself, but instead provide the practice license for use by another person.
9.Be sentenced to punishment for embezzlement, fraud, breach of trust, or forgery.
10.Operate insurance business outside the scope specified on his or her practice license.
11.Solicit unreasonable compensation from an insurer in violation of the fee schedules approved by the competent authority.
12.By unlawful means, cause an insurer to make an improper insurance claim payment.
13.Disseminate untrue statements or promotional materials, thus disturbing the financial order.
14.Otherwise violate these Regulations or related acts or regulations.
15.Any other act injurious to the image of insurance brokers.
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Article 39 |
Those applying for permission under the preceding two Articles shall submit the following documents:
1.Documentary proof that the competent authority of its home country has approved the registration of the applicant's incorporation as well as the scope of its business operations.
2.Documentary proof of the nationality of the designated representative in the Republic of China and proof of the qualifications in subparagraph 2 of the preceding article.
3.The articles of incorporation of the applying company, a balance sheet and income statement for the last year audited and attested by a certified public account approved by the home country, and the names, nationalities, positions, and domiciles or residences of important responsible persons involved in the practicing of business.
4.A business plan.
5.Certification showing that any brokers employed meet the qualification requirements set out in these Regulations, as well as certification of pre-job education, obtained by such brokers within the last two years and recognized by the competent authority; for a person whose certification of pre-job training was obtained two years or more earlier, the already obtained certification of pre-job training may be submitted along with certification of on-the-job training as set out in Article 24; where registration of permission is based on the qualifications set out in Article 5, paragraph 1, subparagraph 3, certification of on-the-job training as set out in Article 24 may be submitted.
6.A written statement that any brokers employed are free of the circumstances in subparagraphs 1 to 9 and 12 to 14 of Article 7.
The documents in subparagraphs 1 through 3 of the preceding paragraph shall be legalized by an overseas ROC representative office. However, if that country does not have an overseas ROC representative office, legalization may be provided by an overseas representative office in a neighboring country.
If the application documents in paragraph one are in a foreign language, a Chinese translation shall be attached for each.
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Article 40 |
The minimum working capital of a branch office established by a foreign insurance broker company within the territory of the Republic of China shall be NT$3 million and a bond shall be posted at 15 percent of the working capital, provided, the amount posted may not be less than NT$600,000.
If the minimum working capital is less than NT$3 million, an amount sufficient to make up the difference shall be allocated by 8 December 2006.
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Article 42 |
A foreign insurance broker company establishing a branch office to operate business within the territory of the Republic of China shall employ at least one person holding a Republic of China broker's practice license of the same type to practice the business.
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