Regulations Governing Enrollment in Postal Simple Life Insurance Policies Article 46

For retained insurance with a coverage period of less than one year, a special reserve for abnormal fluctuations shall be set aside or treated in accordance with the following subparagraphs based on insurance coverage:1. When the balance of actual compensation of each insurance product is lower than the expected compensation priced after the special reserve for major accidents is deducted, a special reserve for abnormal fluctuations shall be set aside at 15% of the difference.2. When the balance of actual compensation of each insurance coverage exceeds the expected compensation priced after the special reserve for major accidents is deducted, the excess amount shall be offset against the special reserve set aside for abnormal fluctuations. When the special reserve for abnormal fluctuations for the insurance product is insufficient to offset, it may be offset by the special reserve for abnormal fluctuations set aside for other insurance coverage. The insurance coverage and amounts offset shall be subject to the points for attention provided by FSC, and reported to the Commission for reference.3. When the cumulative total amount of special reserves for abnormal fluctuations for each insurance coverage exceeds 30% of the retained maturity amount for the current year, the excess amount shall be recovered in accordance with the regulations.The recovery of special reserves for abnormal fluctuations referred to in the preceding third paragraph shall be designated or restricted by FSC based on the needs of stable development of the insurance industry.The balance of each insurance coverage to be offset or recovered referred to in the second and third paragraphs of Subparagraph 1 after income tax is deducted in accordance with the regulations of IAS 12, shall be offset or recovered by the special reserve for abnormal fluctuations in the special surplus reserve set aside under the equity.