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FSC issued a ruling to supplement Paragraph 3 of Article 146 of the Insurance Act regarding the applicable ceiling on deposits of individual insurance enterprises with each financial institution.

10/28/2013

Trisha Chang/Emily Hsu

FSC issued a ruling (Ref. No. Jin-Kuan-Pao-Tsai-10202034131) on 12 July 2013 to supplement Paragraph 3 of Article 146 of the Insurance Act regarding the applicable ceiling on deposits of individual insurance enterprises with each financial institution.

The deposits of an insurance enterprise with each financial institution shall not be more than 10% of the capital of such insurance enterprise. However, where to satisfy the need of capital verification for capitalization (including the capital injected by foreign insurance enterprises), to deposit large amounts of funds to meet business needs (including insurance business), or to receive large amounts of funds or checks in business dealings, resulting in the deposits of an insurance enterprise with a financial institution to be more than 10% of the capital of such insurance enterprise, such insurance enterprise is allowed to adjust the deposits within 10 business days after the completion of the capital verification or the date on which the deposits to be more than the stipulated deposit cap to comply with the deposit cap stipulated in Paragraph 3 of Article 146 of the Insurance Act. If the adjustment is not made within the abovementioned time limit, the insurance enterprise may be subject to punishment according to Article 168 of the Insurance Act.