Newsletter
Interpretation Letter Concerning Regulations Governing Use of Insurer's funds in Special Projects, Public Utilities and Social Welfare Enterprises
The Financial Supervisory Commission (FSC) issued an interpretation letter for Regulations Governing Use of Insurer's funds in Special Projects, Public Utilities and Social Welfare Enterprises, Ref. No. Jin-Guan-Bao-Cai-Zi No. 10801317391 dated August 16, 2019. Relevant rules are as follows:
The "other use in line with government policies" stated in subparagraph 6 of Article 2 of the Regulations authorized by Article 146-5 of the Insurance Act refers to public urban renewals invested and implemented by insurers in accordance with the following conditions:
(1) The invested cases are limited to public urban renewal, and shall meet the following qualifications: "urban renewals recognized by competent authorities as public urban renewal in line with government policies or for infrastructure purposes," "fully-owned by public, the National Housing and Urban Regeneration Center, or state-owned enterprises," "intact construction land," "solely developed," and "land or superficies requiring no further combination with other land areas."
(2) For assets acquired from public urban renewals, insurers shall not operate outside its business scope as stipulated under the Insurance Act, and shall utilize them effectively and generate revenue.
(3) Insurers shall meet the qualification of "the latest Risk-Based Capital meeting the amount required by laws upon investment," and "no major error emerging from each internal control handling procedure for fund utilization, or the error has been corrected and approved by the competent authority."