Regulations Governing the Implementation of Internal Control and Audit System and Business Solicitation System of Insurance Agent Companies and Insurance Broker Companies Article 4

The internal control and audit system and business solicitation system and procedures of insurance agent companies, insurance broker companies or banks shall be passed by its board of directors (council), and, if any director has a reservation or dissenting opinion, the company shall state such director’s opinion and reasons in the board of directors (council) meeting minutes, and shall send the minutes together with the internal control, audit and business solicitation system and procedures passed by the board of directors (council) to each supervisor(board of supervisors) or audit committee ; the same shall apply to any amendment thereto.If an insurance agent company, insurance broker company or bank has established an audit committee, the adoption of or any amendment to the internal control and audit systems as well as solicitation systems and procedures shall be approved by its audit committee with the consent of one-half or more of audit committee members and submitted to its board of directors (council) for a resolution.If the adoption or amendment under the preceding paragraph is not approved by the audit committee, it may be done with the approval of at least two-thirds of the entire board of directors (council), and the resolution of the audit committee shall be recorded in the minutes of the board of directors (council) meeting.