Implementation Regulations for the Risk Spreading Mechanism of Residential Earthquake Insurance Article 8

When the subject matter insured is "total loss" in an earthquake, the claim shall be settled at the insured amount without any deductible.The term "total loss" in the preceding paragraph refers to any of the following conditions:1. The subject matter insured is demolished as informed, ordered or acted by the government agency.2. The subject matter insured has been assessed by a qualified adjustor, or by an association of professional architect, structural engineer, civil engineer, or geotechnical engineers, that the insured building has been assessed uninhabitable and in need of demolition and rebuilding; or has been assessed that it could be inhabitable after repairing and the repairing cost equals to or exceeds 50% of the replacement cost at the time when the insured risk occurs.The criteria of "total loss" of assessment as mentioned in subparagraph 2 of the preceding paragraph are to be instituted by TREIF, and submit to competent authorities for approval before enforcement. The same also applies to revision.The term "qualified adjustor" in subparagraph 2 of paragraph 2 means an insurance surveyor or claim adjustor, inspection or loss prevention related staff of a non-life insurance companies who has attended a training course (offered by an institution designated by the competent authorities) for earthquake building damage adjustor and received a certificate of successful completion of training.Guidelines for the management of the foresaid qualified adjustor are to be instituted by TREIF in consultation with the NLIA and submit to competent authorities for approval before enforcement. The same also applies to revision.