Taiwan Insurance Guaranty Fund LOGO
Font Size :
Bulletin Board
About Us
Insurance Guaranty System
Laws & Regulations
Publications
Links
Contact Us
Google Search
Regulations
Home > Laws & Regulations > Regulations

Regulations on the Scope and Monetary Limits of the Drawdown of the Insurance Guaranty Fund for Non-life Insurance Enterprises
1.
Pursuant to the provisions of Subparagraph (3), Paragraph 1, Article 143-3 of the Insurance Act (hereinafter the “Act”), the scope of funds that may be advanced by the Taiwan Insurance Guaranty Fund (hereinafter the “Fund”) on behalf of the insurance enterprise to settle claims which policyholders, insureds and beneficiaries are entitled to make under in-force contracts shall be limited to insurance policies sold by non-life insurance enterprises and the head office and branch office(s) established by foreign non-life insurance enterprises in the Republic of China. However, insurance policies ceded from other insurers as reinsurance are not included in the scope.
2.
According to Subparagraph (3), Paragraph 1, Article 143-3 of the Act, the monetary amounts that may be advanced by the Fund on behalf of an insurance enterprise to settle claims which policyholders, insureds and beneficiaries are entitled to make under in-force contracts shall be determined by the following criteria:
(1) The limits of advance payments that apply to claims or policy proceeds based on the terms of the insurance policies are as follows:
i. For claims filed under Compulsory Automobile Liability Insurance coverage, the amounts of advance payments shall be based on the Payment Standards of Compulsory Automobile Liability Insurance.
ii. For claims filed under Residential Earthquake Insurance coverage, the amounts of advance payments shall be based on the provisions of the Enforcement Rules for the Risk Spreading Mechanism of Residential Earthquake Insurance.
iii. For claims filed under other insurance policies, the amount that can be advanced by the Fund is ninety percent (90%) of the contractual obligations for which the insurer is liable, subject to a maximum of NT$3 million.
iv. If a person possesses several claims at an insurance company (or insurance cooperative), the total amount of advance payment is capped at NT$3 million. For liability insurance, the maximum amount of the advance payment shall apply to the aggregate amount of third-party’s direct claim against the insurer and the claim of the insured party, pursuant to Paragraph 2, Article 94 of the Act.
(2) Where insurance premiums are requested to be refunded, the amount of the advance payment shall be forty percent (40%) of the amount that may be claimed.
In the event that the guaranty fund is potentially insufficient for fulfilling the obligations for advance payments estimated in accordance with the foregoing criteria, the Fund can adjust the percentages and limits of advance payments with the approval of both the competent authority and Fund’s board of directors.
3.
The drawdown of the guaranty fund based on the criteria stated in Subparagraphs (1), (2) or (7), Paragraph 1, Article 143-3 of the Act shall be conducted based on the drawdown plan established under Article 6 of the Regulations of the Organization and Administration of the Taiwan Insurance Guaranty Fund and submitted to the competent authority for approval.

Regulations on the Scope and Monetary Limits of the Drawdown of the Insurance Guaranty Fund for Non-life Insurance Enterprises
Supplementary Notes
1.
Advanced payments that apply to the Compulsory Automobile Liability Insurance and Residential Earthquake Insurance are made pursuant to the provisions of the Payment Standards of Compulsory Automobile Liability Insurance and the Enforcement Rules for the Risk Spreading Mechanism of Residential Earthquake Insurance, respectively. The amounts of the advance payments are not subject to the NT$3 million cap as specified in Item (iv), Subparagraph 1, Paragraph 1, Article 2 of the Regulations on the Scope and Monetary Limits of the Drawdown of the Insurance Guaranty Fund for Non-life Insurance Enterprises.
2.
With respect to individual and group accident insurance coverage, regardless of the identities of the policyholders and beneficiaries, the calculations of advance payments shall be based on the individual insured parties.
3.
For an automobile insurance policy that provides coverage to an entire legal entity, if individual owners of the vehicles are able to prove their ownerships of the corresponding automobiles covered by the policy (such as in cases where the vehicles are part of a fleet but owned individually), the advance payments shall be calculated on an individual basis.
4.
If a damaged vehicle has been repaired by the auto service center and reclaimed by the owner, and if it is not possible to locate the insured party afterwards and request him or her to fill out the form, can the auto service center subsequently file the claim and receive the indemnity?
Based on current practices, an auto service center that has entered into an agreement with Kuo Hua Insurance Co., Ltd. on automobile repair may apply to the Fund for advance payments on the policy proceeds, provided that the service center has secured the automobile indemnity payment agreement signed by the insured party (including consent on the transfer of claims) and the payment receipt. If the above requirements are not met, the Fund can accept claims filed by the insured party only.
5.
Is there an upper limit, like a ratio of loss incurred or a ratio of NT$3 million, on the payment of notary fees?
Notary fees have been approved by the competent authority and shall be paid pursuant to Subparagraph (7), Paragraph 1, Article 143-3 of the Insurance Act. The provisions of Subparagraph (3), Paragraph 1, Article 143-3 of the same Act shall not apply, and therefore no limits on the proportion shall apply.
6.
If an insured party owns a freight transport or taxi company with several commercial vehicles, advance payments shall be calculated based on each insured automobile in order to protect the interests of third parties covered under the automobile insurance.

Regulations on the Scope and Monetary Limits of the Drawdown of the Insurance Guaranty Fund for Life Insurance Enterprises
1.
The scope and monetary limits in these Regulations have been defined in accordance with Paragraph 2, Article 143-3 of the Insurance Act (hereinafter the “Act”).
2.
Taiwan Insurance Guaranty Fund (hereinafter the “Fund”) shall provide advance payments to in-force policies issued by a domestic or foreign life insurance enterprise within the territory of the Republic of China. However, the Fund shall not provide advance payments for the following contracts:
(1) A policy sold in the Republic of China by an insurance enterprise at a time when it was not licensed to sell the policy.
(2) Insurance policies sold outside the Republic of China by the head office or branch office(s) of a domestic insurance enterprise.
(3) Separate accounts of insurance products.
(4) Corporate labor pension annuity contracts and individual labor pension annuity contracts sold pursuant to the Regulations for Implementation of Annuity Insurance Scheme under Labor Pension Act.
(5) Reinsurance contracts.
3.
For an insurance company’s single drawdown incident pursuant to Subparagraph (3), Paragraph 1, Article 143-3 of the Act, the scope and monetary limits on the payments advanced by the Fund are as follows:
(1) Death, disability, maturity, dread disease benefits (including first diagnosis and prepayment benefit):
For each insured person in each insured event; or all matured contracts of each insured (including main contracts and riders), the amount that can be advanced by the Fund is ninety percent (90%) of the contractual obligations for which the insurer is liable, subject to a maximum of NT$3 million.
(2) Annuities (including the survival benefits of life insurance policies):
For each insured person, regardless of the number of policies, the amount that can be advanced by the Fund is ninety percent (90%) of the contractual obligations for which the insurer is liable, subject to an annual maximum of NT$200,000.
(3) Medical benefits (including all medical payments covered by main contract and rider):
For each insured person in each insured event, the amount that can be advanced by the Fund is subject to an annual maximum of NT$300,000.
(4) Payment of cash surrender value:
For each insured person, the amount that can be advanced by the Fund is twenty percent (20%) of the contractual obligations for which the insurer is liable, subject to a maximum of NT$1 million.
(5) Unearned premiums:
For each insured person, the amount that can be advanced by the Fund is forty percent (40%) of the contractual obligations for which the insurer is liable.
(6) Payment of dividends:
For each insured person, the amount that can be advanced by the Fund is ninety percent (90%) of the contractual obligations for which the insurer is liable, subject to a maximum of NT$100,000.
The contractual obligations for which the insurer is liable, specified in the preceding paragraphs, represents the balance after deducting the unpaid premiums, the principal and interest of automatic premium loan, and the outstanding principal and interest on policy loan.
In the event that the guaranty fund is potentially insufficient for fulfilling the obligations for advance payments, or if additional funds are required under special circumstances, the Fund can adjust the percentages and limits of advance payments specified in the subparagraphs of Paragraph 1 above with the approval of both the competent authority and Fund’s board of directors.
While carrying out the tasks as specified in Subparagraph (2), Paragraph 1, Article 143-3 of the Act, if it is necessary to adjust the fund advance percentages and limits specified in the subparagraphs of Paragraph 1, Article 143-3 of the Act, the provisions of the preceding paragraph may apply on calculating the amounts of subsidies.
4.
In the event that the guaranty fund is triggered due to the occurrences of any of the circumstances stated in Subparagraph (3), Paragraph 1, Article 143-3, the processing of applications accepted for fund advances shall be completed within three months, except for cases specified in Subparagraphs (1) to (3), Paragraph 1 of Point 3 above. The process may be extended to six months if there is sufficient justification and prior approval is secured from the competent authority.
After an application accepted for fund advance has been processed, it must first be investigated to determine its compliance with all fund advance requirements and receive approval from the Board of Directors before the funds can be advanced based on the scope and limits established by the Fund and approved by the competent authority.
If an application for fund advance involved in any of the cases specified in Subparagraphs (1) to (3), Paragraph 1 of Point 3 is filed prior to the completion of the process of being placed into receivership, ordered to suspend business and undergo liquidation, or ordered to dissolve by the competent authority pursuant to Paragraph 3, Article 149 of the Act, the Fund shall proceed fund advance in accordance with the procedure described in the preceding paragraph.
5.
The drawdown of the guaranty fund based on the criteria stated in Subparagraphs (1), (2) or (7), Paragraph 1, Article 143-3 of the Act shall be conducted based on the drawdown plan established under Article 6 of the Regulations of the Organization and Administration of the Taiwan Insurance Guaranty Fund and submitted to the competent authority for approval.
6.
The Regulations on the scope and monetary limits of the Fund’s drawdown and any amendments thereto shall become effective upon approval by the competent authority.




Print Forward(opened with new window) Back Share to Facebook Share to Plurk Share to Twitter

Web Priority 1 Accessibility Approval.(Opened With New Window.)
Privacy & Security Intellectual Property
Copyright Taiwan Insurance Guaranty Fund. All rights reserved. Tel : 886-2-23957088 Fax : 886-2-23957068
Add : 9F., No.123, Sec. 2, Zhongxiao E. Rd., Taipei 10058, Taiwan (R.O.C.)
Best viewed with 1024*768 screen display resolution, IE 8.0 & Firefox 3.0 and above browser.
Visitors : 55824
Month Visitors : 296
Latest Update : 2018-10-15