Regulations Governing Permission of Insurance Business Transactions and Investment Between the Taiwan Area and the Mainland Area Article 20-1

A Taiwan-area insurance enterprise that meets the following requirements may apply to the Competent Authority for approval to establish a branch or subsidiary in Mainland Area:1.The enterprise has shown sound operational performance and secure financial capacity in the three years prior to application;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 sound business operations of the enterprise are likely to be adversely affected.Articles 22 to 26 and Article 34 shall apply mutatis mutandis with respect to required documents and business management when a Taiwan-area insurance enterprise applies to the Competent Authority for approval to establish a branch or subsidiary in Mainland Area.