Newsletter
NEW RULES FOR CROSS-STRAIT INSURANCE MATTERS
In March 2000, the DOI amended its Regulations Governing Approval of Insurance Industry Contacts between the Taiwan Area and the Mainland Area, by amending three Articles (Ar-ticles 9-1, 9-2 and 9-3). The main points of the new provisions are as follows:
Conditions which Taiwan Area insurance com-panies must satisfy to be eligible to establish a place of business in Mainland China include: sound operating performance and sound ability to meet financial commitments throughout the last three years; and no sanctions imposed under Article 149 Paragraph 2 of the Insurance Law within the last three years.
Documents to be submitted by an insurance company when applying to set up a place of business in Mainland China include: application, Board of Directors meeting minutes, financial reports for the last three years, and any other information or documents required by the regu-latory authority.
An insurance company may set up a place of business in Mainland China to conduct activities such as researching market conditions relevant to insurance, and gathering data. But it may not be engaged in acts of direct trade in contravention of the Statute Governing the Relations between the People of the Taiwan Area and the Mainland Area.