Regulations Governing Permission for Establishment of Branch Units and Subsidiaries in Hong Kong and Macau by Taiwan-area Insurance Institutions Article 3

A Taiwan-area insurance enterprise that meets the following requirements may apply to the Competent Authority for approval to establish a branch office or subsidiary in Hong Kong or Macau:1. The enterprise has shown operational performance and secure financial capacity for the past three years;2. The enterprise’s ratio of capital resources to risk capital in the most recent period is at least 1.25 times the statutory standard for adequate capital as specified in Subparagraph 1, Paragraph 2, Article 143-4 of the Insurance Act, and the classification of capital after deducting the amount of the investment applied for meets the terms of adequate capital as specified in Subparagraph 1, Paragraph 2, Article 143-4 of the Insurance Act;3. The enterprise has not been subject to any sanction imposed by the Competent Authority in the three years prior to application, or has been subject to sanction but specific remedial actions have been taken therefor and accepted by the Competent Authority;4. The enterprise is free of the record of deficiency in the implementation of risk management in the past year prior to application or there has been the record of deficiency but specific remedial actions have been taken therefor and accepted by the Competent Authority;5. The enterprise has sound internal control systems in place; and6. There are no other facts indicating that the business applied for is likely to adversely affect the sound business operations of the enterprise.A Taiwan-area insurance agent company, insurance broker company or insurance surveyor company that applies for approval to establish a branch office or subsidiary in Hong Kong or Macau, or a Taiwan-area insurance institution that applies for approval to establish a representative office in Hong Kong or Macau shall meet the requirements set forth in Subparagraphs 1 and 3 of the preceding paragraph.