Regulations Governing Derivatives Transactions Conducted by Insurance Companies Article 4-1
An insurer which intends to engage in the derivatives transactions for hedging purpose with hedged item being a specific liability position on specific type of guaranteed benefits, unless it has been approved by the competent authority to engage in hedging transactions for liability positions on the same type of guaranteed benefits, shall, in addition to acting according to the hedging program already approved or on record, submit an application together with the following documents to the competent authority for prior approval:1. Documents provided under Paragraph 1 of Article 3 herein;2. A hedging program drawn up for the specific type of guaranteed benefits; and3. Other documents designated by the competent authority.The hedging program mentioned in Subparagraph 2 of the preceding paragraph shall contain the following particulars and be subject to proper model validation to show hedging effectiveness and compliance with the stated hedging purpose, and the hedging program, when it is first produced or subsequently revised, shall be jointly signed off by the head of risk management unit, the appointed actuary, and the responsible head for the business of hedging transactions who are all independent of the insurer's trading department, and passed by the insurer's board of directors:1. Hedging purpose and expected hedging effect;2. Types of derivatives applied to and application principles;3. Hedging strategies;4. Criteria for the construction of hedging model, frequency of updating such model, analytical procedure and criteria for model validation;5. Model or mathematical equation for computing hedge effectiveness and computing frequency; and6. Risk management mechanism: The limits on the position of hedging transactions and valuation frequency; method and frequency for conducting stress testing, and procedure for handling irregularity when it occurs.When the hedging program mentioned in Subparagraph 2 of Paragraph 1 hereof is revised, the insurer shall submit documents provided under Paragraph 1 to the competent authority for record.
中文原文 保險業從事衍生性金融商品交易管理辦法第4-1條
保險業基於避險目的，從事被避險項目為特定保證給付型態之特定負債部位之衍生性金融商品交易，除曾經主管機關核准從事相同保證給付型態之負債部位避險交易者，得依原經核准或備查之避險計畫書辦理外，應檢送申請書連同下列文件，向主管機關申請核准後辦理：
一、第三條第一項所列文件。
二、依特定保證給付型態訂定之避險計畫書。
三、其他經主管機關指定之文件。
前項第二款避險計畫書應載明以下項目，並經適當模型驗證存在避險有效性及符合避險目的，且其訂定或修正應經獨立於交易部門以外之風險管理單位主管、簽證精算人員及本業務負責主管共同簽署確認，並經董（理）事會通過：
一、避險目的及預期避險效果。
二、衍生性金融商品之種類及應用準則。
三、避險交易策略。
四、避險模型之建置準則、更新頻率、驗證模型有效性之分析程序與準則。
五、計算避險有效性之模型或數理方式及計算頻率。
六、風險管理機制：避險交易部位之限額與評價頻率、執行壓力測試之方式與頻率及異常狀況發生時之處理程序。
第一項第二款避險計畫書有修正時，應檢送第一項所列文件報主管機關備查。
一、第三條第一項所列文件。
二、依特定保證給付型態訂定之避險計畫書。
三、其他經主管機關指定之文件。
前項第二款避險計畫書應載明以下項目，並經適當模型驗證存在避險有效性及符合避險目的，且其訂定或修正應經獨立於交易部門以外之風險管理單位主管、簽證精算人員及本業務負責主管共同簽署確認，並經董（理）事會通過：
一、避險目的及預期避險效果。
二、衍生性金融商品之種類及應用準則。
三、避險交易策略。
四、避險模型之建置準則、更新頻率、驗證模型有效性之分析程序與準則。
五、計算避險有效性之模型或數理方式及計算頻率。
六、風險管理機制：避險交易部位之限額與評價頻率、執行壓力測試之方式與頻率及異常狀況發生時之處理程序。
第一項第二款避險計畫書有修正時，應檢送第一項所列文件報主管機關備查。