Newsletter
TWO-YEAR GRACE PERIOD FOR CASH INJECTIONS
The amendments to the Insurance Law are suc-cessfully passed in the current special session of the Legislative Yuan and with effect from July 9, 2001, the new Article 143-4 introduces risk-based capital as the new system for deter-mining insurance companies' capital adequacy, and will give insurers a two-year grace period within which to complete cash injections when they need to increase their capital. The new provision is intended to replace the existing Ar-ticle 143, which uses admitted assets as the measure of capital adequacy, and requires in-surers to increase their capital within a limited period set by the competent authority. Once the new provisions come into effect, the admitted assets requirements under Article 143 will cease to apply.