Compulsory Automobile Liability Insurance Act Article 47

(Insurer’s Obligation to Establish Independent Account Books)An insurer shall establish independent accounting to record the operational and financial status of this insurance.The premium of this insurance which belongs to the expected losses referenced in Article 44, paragraph 1, subparagraph 1 shall be used exclusively for purposes of claims under this insurance and for setting aside of the various reserves. The difference between the expected losses and actual losses shall be set aside as special reserve, and may not be withdrawn, transferred, or used for any other purpose, except adjustment of premium rates, raising of insured amounts, covering a pure premium loss, or treatment pursuant to the regulations adopted under paragraph 3.Regulations governing accounting treatment, the reporting of operational and financial information, the provisioning, custody, utilization, withdrawal, and transfer of the various reserves, and other matters for compliance by an insurer when handling this insurance shall be adopted by the competent authority in consultation with the central competent authority for transportation and communications.