Regulations Governing Permission of Insurance Business Transactions and Investment Between the Taiwan Area and the Mainland Area Article 27

A Taiwan-area insurance enterprise that meets the following requirements may apply to the Competent Authority for approval to make equity investment in an insurance enterprise in Mainland Area or a foreign-invested insurance enterprise as defined 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 classification of capital after deducting the amount of the planned 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.