Regulations for the Accounting Arrangement and Procedure of Submitting Business and Financial Reports of Compulsory Automobile Liability Insurance Article 7

An insurer handling the business entrusted by the Motor Vehicle Accident Compensation Fund (hereinafter referred to as Compensation Fund) shall follow the accounting treatment requirements:1. An insurer shall book the aforementioned business at the end of each month on an accrual basis under the sub-account "insurance service expenses－compulsory insurance Compensation Fund and fees payable－compulsory insurance Compensation Fund." The latter item shall be offset when consolidated payment is made.2. An insurer that handles a compensation case entrusted by the Compensation Fund shall book the compensation payment under the sub-account "temporary payment and suspense account－compulsory insurance Compensation Fund," to be offset upon payment by the Compensation Fund.3. The insurer, upon receiving payment for entrusted expenses from the Compensation Fund, shall offset the "insurance service expenses－compulsory automobile liability insurance" sub-account.4. An insurer shall send a written notice to the Compensation Fund by January 15 each year to estimate the compensation payment and handling expense for each compensation case entrusted by the Compensation Fund that was accepted for processing but not yet paid out as of the end of the preceding year.