Regulations Governing Implementation of Internal Control and Auditing System of Insurance Enterprises Article 31

The regulatory compliance unit of an insurance enterprise shall establish a regulatory compliance system which will be implemented after being passed by the board of directors. The regulatory compliance unit shall also review from time to time the regulatory compliance system in line with the amendment of insurance rules and regulations, and implement the revised system after it is passed by the board of directors.The regulatory compliance system shall include at least the following particulars:1. Decision making process of board of directors and control functions of directors;2. Preservation of board meeting minutes;3. Operation monitoring functions of supervisors;4. Code of regulatory compliance for directors’ conduct;5. Establishment of regulatory compliance evaluation standards;6. Formulation of annual regulatory compliance plan;7. Creation of a regulatory compliance environment;8. The audit of regulatory compliance operations and handling of regulatory violation;9. Regulatory compliance organization and duties; and10. Drafting of regulatory compliance manual.