Regulations Governing the Taiwan Residential Earthquake Insurance Fund Article 5

The balance of the total pure premium received by TREIF in accordance with the provisions of Article 6, subparagraph 1 of its Charter of Endowment after deduction of premium allocated to the Pool and the costs in connection with spreading of risk on domestic, overseas reinsurance or capital markets shall be accumulated in their entirety, and may not be drawn upon except for the claim payments which shall be made in connection with an earthquake event or for the principal and interest payments of financing loans mentioned in paragraph 2.When the occurrence of a major earthquake disaster results in claim payments that exceed the amount of funds accumulated in TREIF, TREIF shall lay down a financing plan to raise fund with domestic or foreign institutional loans or other financing patterns, and in order to safeguard the interest of the insured parties TREIF may as necessary ask the competent authority and the Ministry of Finance to jointly request Executive Yuan’s approval for the national treasury to provide collateral to obtain the necessary source of funding.