Regulations Governing Enrollment in Postal Simple Life Insurance Policies Article 4

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