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THE FINANCIAL SUPERVISORY COMMISSION HAS APPROVED THE "CONTENT AND SCOPE OF THE EXEMPTIONS TO GROUP LIFE INSURANCE ENDORSEMENT FROM APPLYING INSURANCE PRODUCTS REVIEW PROCESS"

09/01/2012

Trisha Chang/Jacqueline Wang

On 23 July 2012, the Financial Supervisory Commission approved the Content and Scope of the Exemptions to Group Life Insurance Endorsement From Applying Insurance Products Review Process proposed by The Life Insurance Association of the Republic of China (LIA). The Content and Scope covers the following situations:

1.	Change of the insured persons: any change to the insured persons listed in the original insurance contract or a change to the effective date of the group life insurance.
2.	Experience refund: where any variable in the formula determining the experience refund set forth in the original insurance contract has been changed and the number of insured persons in the group is 50 or more.

In the aforesaid situations, if an insurance company, by issuing endorsements, amends the provisions relating to "change of the insured persons" or "experience refund" in a one-year group life insurance policy, such endorsements will be exempted from the insurance products review process if:

1.	they are in compliance with the relevant insurance laws and regulations;
2.	they have no effect on the premiums and reserves; and
3.	the endorsements will not adversely affect the insureds.

The above criteria apply to personal accident insurance and health insurance products offered by a non-life insurance company as well.