Interpretative Letter Issued for Subparagraph 4 of Paragraph 1 of Article 146-1 of Insurance Act

10/25/2021

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The Financial Supervisory Commission issued the interpretative letter for Subparagraph 4 of Paragraph 1 of Article 146-1 of the Insurance Act, Ref. No. Jin-Guan-Bao-Tsai-Zi No. 11004934441 dated September 16, 2021, and abolished the letter issued by the Ministry of Finance, Ref. No. Tai-Tsai-Bao-Zi No. 0900707707 dated September 10, 2001. Relevant rules are explained as follows:

The required rating above the equivalent level assigned by a rating agency under Subparagraph 4 of Paragraph 1 of Article 146-1 of the Insurance Act means the long-term credit rating of corporate bonds or non-guarantee commercial paper issued in the most recent year shall be subject to one of the following conditions: 

1. The long-term credit rating is equivalent to BBB- or above from Standard & Poor's Corporation;

2. The long-term credit rating is equivalent to Baa3 or above from Moody's Investors Service;

3. The long-term credit rating is equivalent to BBB- or above from Fitch Ratings Ltd.;

4. The long-term credit rating is equivalent to twBBB- or above from Taiwan Ratings Corporation; or

5. The long-term credit rating is equivalent to BBB-(twn) or above from Fitch Australia Pty Ltd, Taiwan Branch.