Implementation Regulations for the Risk Spreading Mechanism of Residential Earthquake Insurance Article 7

The insured amount shall be calculated based on the replacement cost of the subject matter insured at the time of applying for the Insurance. If the replacement cost of the subject matter insured exceeds NTD$1.5 million, the insured amount shall be limited to NT$1.5 million.The contingent living expense (hereunder called CLE) will be paid in the event of "total loss" of the insured building, CLE shall be limited to NT$200,000 per subject matter insured.When a subject matter insured is damaged in an earthquake but does not sustain total loss, and it undergoes emergency assessment by the municipal or county (city) government in accordance with the Regulations Governing Post-Disaster Emergency Assessment of Hazardous Buildings, and is found hazardous based on the assessment result and tagged a red hazard sign, the non-life insurer shall pay CLE in the amount of NT$100,000 per subject matter insured.The CLEs specified in the preceding two paragraphs combined during the policy period shall be limited to NT$200,000.The TREIF may from time to time propose to the competent authorities that the insured amount and CLE specified in the preceding four paragraphs be adjusted in light of the status of underwriting and claim settlements of the residential earthquake insurance, and submit proposals to the competent authorities for timely adjustment.