Regulations Governing the Implementation of Internal Control and Audit System and Business Solicitation System of Insurance Agent Companies and Insurance Broker Companies Article 12

Insurance agent companies, insurance broker companies or banks shall appoint an appropriate number of qualified auditors directly under the board of directors (council) to take charge of the audit operations. Auditors shall not serve concurrently in positions that are in conflict with or will handicap their audit works set out in Article 13 herein and shall report the audit operation to the board of directors (council) and supervisors (board of supervisors) or audit committee at least once every year.The appointment, dismissal or transfer of auditors of insurance agent companies and insurance broker companies must be passed by the board of directors (council) and reported to the competent authority in a manner designated by the competent authority with confirmation document and record filed and saved.The appointment, dismissal or transfer of auditors of banks shall be effected in accordance with the Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries and reported to the competent authority in a manner designated by the competent authority with confirmation document and record filed and saved.To put the internal control system into effect, strengthen the professional abilities of the deputy of the auditor and to further improve and maintain the quality of audit and its implementation result, an insurance agent or broker company shall have a deputy in place for auditor.The provisions in Articles 14 ~ 16 and Article 20 herein shall apply mutatis mutandis to the deputy mentioned in the preceding paragraph.