Regulations Governing Pre-sale Procedures for Insurance Products Article 29

Where any one of the following situations applies with respect to an insurance enterprise, the competent authority may, depending on the severity of the circumstances, prohibit the insurance enterprise for a period of one year or less from filing for prior approval or use-and-file launch of an insurance product in accordance with Article 15, paragraph 1 herein and make public announcement of the same, provided, however, that this does not apply where an insurance product has been amended in order to coordinate with changes to applicable acts or regulations, or where the competent authority has granted approval.1. The enterprise has continued selling an insurance product after being ordered by the competent authority to suspend sales.2. A signatory has continued to act as signatory after being disqualified by the competent authority.3. Three times or more within the past year, the competent authority has determined that the circumstances set out in any one of the subparagraphs under paragraph 1 of Article 30 obtain with respect to the enterprise's insurance products, provided, however, that this does not apply to a minor violation of Article 30, paragraph 1, subparagraph 7 if the competent authority has dealt with the matter in accordance with Article 30, paragraph 3.4. Within the past year, the competent authority has assessed a cumulative total of 10 or more violation points for insurance products that the insurance enterprise's signatories have signed off on in behalf of that insurance enterprise.