Use of Insurer’s funds for public utilities shall be restricted to the following utilities:
1. Transportation facilities of highways, railroads, harbors, parking lots and airports.
2. Facilities of public utilities, such as water, electricity, telecommunications, etc.
3. Public housing construction projects.
4. Environmental protection facilities, including river, sewerage, garbage and waste disposal, and funeral facilities.
5. Construction of public-welfare facilities for public recreation.
6. Other public utilities as promoted by the government or in line with the government''s construction projects.
The insurance industry’s investment in social welfare business is limited to the business for social welfare operation that is established in accordance with the authorization of the competent authorities and the necessary facilities, including social assistance, welfare services, employment, social insurance, and healthcare.
The total amount that an insurance company uses for special projects, public utilities and social welfare enterprises shall not exceed 10% of its total funds, and the total amount invested in one and the same entity shall not exceed 5% of its total funds.
The total amount of an insurance company''s investment in one and the same investee shall not exceed 10% of the paid-in capital of the invested entity; where the invested entity is a venture investment enterprise, such amount shall not exceed 25% of the paid-in capital of the invested entity; where the investment is made onto an enterprise with the items enumerated under Article 3 and 4, such amount shall not exceed 35% of the paid-in capital of the invested entity.
In case of securitization products issued by an insurance enterprise aiming at the contents set forth in Article 3 and 4 as the target, such insurance company may invest within the limit of 10% of the total amount of the securitization products, free of the restriction of the investment ratio set forth in the preceding paragraph.
Where, after an insurance company invests in an entity for special projects, public utilities and social welfare enterprises, the said entity is qualified to accept investments under Subparagraph 3 or 4 of Paragraph 1 of Article 146-1 of the Act, the investments in such entity shall be governed by the provisions of the said Subparagraph instead, provided that if the said investment exceeds such limits as are prescribed in Subparagraph 3 or 4 of Paragraph 1 of Article 146-1 of the Act instead, provided that if the said investment exceeds the ratio as prescribed in Subparagraph 3 or 4 of Paragraph 1 or Paragraph 2 of Article 146-1 of the Act, no additional funds shall be invested in the entity unless the additional investment is made to maintain the original equity share in the entity.
Insurance industry handles special use of loans as follows:
1. Loans guaranteed by credit guarantee institutions authorized by the banks or competent authorities;
2. Loans guaranteed with the collateral of properties or real properties;
3. Loans guaranteed with collateral of marketable securities in compliance with Article 146.1 of this Act;
The insurance industry must collect 100% collateral for the loans granted to the person in charge, employees or major shareholders, or the related party of the person in charge or the responsible loan officer; also, the loan terms and conditions shall not be superior to other similar debtors, If the loan amount exceeds the threshold stipulated by the competent authorities, it must be with the consent of three fourths of the directors at the meeting and two thirds of the boards attending the meeting. The scope, quota, total loan amount, and other binding matters for the related party are guided by the Rules Governing the Loans Granted to Related Party by Insurance Industry.”
For the insurance industry with the latest equity capital and risk capital ratio over 200%, the special loans arranged in accordance with the government policy may be reported to the competent authorities for exemption not subject to the restrictions of the first paragraph.