Regulations Governing Enrollment in Postal Simple Life Insurance Policies Article 45

For 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:1. Special reserves for major accidents for each insurance coverage shall be set aside based on the ratios determined by FSC.2. 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.3. 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.The 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.