Regulations Governing Pre-sale Procedures for Insurance Products Article 20

For an insurance product that has already passed review, if there is subsequently an amendment to its policy provisions, proposal, or pricing actuarial memorandum, or if its premium rates are restructured, such change shall be subject to the use-and-file procedures set out in these Regulations unless the competent authority determines the change is significant or it is for increasing the renewal premium rate of a guaranteed renewable personal health insurance product, in which case the provisions of Article 15, paragraph 1, subparagraph 1 shall govern. The preceding paragraph does not apply if it is otherwise provided by the competent authority.The preceding paragraph applies to an insurance product that had already passed review before these Regulations went into effect.For increasing the renewal premium rates of guaranteed renewable personal health insurance products, the insurance enterprise shall take actions in accordance with Subparagraph 1, Paragraph 1 of Article 9 herein, and in addition, three months before the time at which premium will be charged based on the new rate, deliver a notice to the applicant about the product that its renewal is guaranteed but its premium rate is not guaranteed and the content of rate adjustment, and assign staff or a dedicated person to explain to the applicant by phone. However explanation by phone is not required when the insurance enterprise or its sales channel partner sells a new contract or has explained to the applicant after underwriting the policy that the product’s renewal is guaranteed but its premium rate is not guaranteed with proof of such action saved.The content of rate adjustment mentioned in the preceding paragraph includes the new premium rate, reasons for rate adjustment, the time at which premium will be charged based on the new rate, and how it will be handled if the applicant has objection to the rate adjustment.When an insurance enterprise increases the renewal premium rate of a guaranteed renewable personal health insurance product, its audit unit shall check and confirm whether the rate adjustment related provisions under the preceding four paragraphs are rigorously implemented and its chief auditor shall issue a statement to the effect before the premium rate is adjusted.