TREIF Articles of Incorporation
Adopted per 30 November 2001 Letter No. Taiwan-Finance-Insurance-0900751338
Amended per 13 October 2004 Letter No. Financial-Supervisory-Insurance-09300027430
Amended per 25 May 2005 Letter No. Financial-Supervisory-Insurance-09400051390
Amended per 25 November 2005 Letter No.Financial-Supervisory-Insurance-09402118950
Amended per 7 February 2006 Letter No. Financial-Supervisory-Insurance-09500007990
Amended per 26 November 2007 Letter No. Financial-Supervisory-Insurance-09602564108
 Article 1 | This incorporated foundation shall be known as the Taiwan Residential Earthquake Insurance Fund ("TREIF"), and is organized in accordance with Article 138-1 of the Insurance Act and the Civil Code provisions governing incorporated foundations. |
| Article 2 | The purpose of the TREIF is to assume and spread residential earthquake risks underwritten by non-life insurers, and to manage the risk spreading mechanism established by the competent authority. |
| Article 3 | The competent authority shall be the Financial Supervisory Commission ("FSC"), Executive Yuan. |
| Article 4 | The TREIF's head office shall be based in Taipei County or Taipei City, and domestic branch offices may be established as required by business operations. |
| Article 5 | At the time of establishment of the TREIF, NT$20 million was be contributed by the Committee for the Administration of Development of Insurance Business, and the TREIF registered as an incorporated foundation. |
| Article 6 | TREIF revenue sources shall be as follows:
1. Pure premium income ceded from residential earthquake insurance ("the Insurance") assumed by non-life insurers.
2. Expense loading income allocated by the Insurance.
3. Proceeds derived from fund utilization.
4. Other income. |
| Article 7 | The scope of TREIF business shall be as follows:
1. Reinsurance placement, assumption and spreading of risk for the Insurance.
2. Collection of the various types of income named in the preceding article and fund utilization .
3. Contracting loans or obtaining financing domestically and/or overseas in accordance with the fundraising plan.
4. The handling of other business in relation to the preceding three subparagraphs.
5. Matters designated by the competent authority.
6. Other business that the TREIF is permitted to undertake in accordance with the Insurance Act or other laws and regulations. |
| Article 8 | The TREIF shall have a board of directors comprising 11 directors appointed from among the following persons by the competent authority :
1. Three representatives of the competent authority.
2. One representative of the National Treasury Agency, Ministry of Finance.
3. Four experts or scholars designated by the competent authority.
4. Three representatives drawn from members of the residential earthquake insurance pool.
The directors shall elect from among themselves one chairperson, who shall chair meetings of the board of directors and represent the TREIF in external affairs. |
| Article 9 | The functions of TRIEF's board of directors shall be as follows:
1. Receipt, disbursement, management, and utilization of funds.
2. Formulation and management of the internal organizational structure.
3. Review, approval and implementation of the business plan.
4. Review and approval of budgets and final accounts for annual revenues and expenditures.
5. Review of the fundraising plan.
6. Appointment and dismissal of key personnel.
7. Formulation and revision of key rules and systems.
8. Review and approval of other important matters. |
| Article 10 | The TREIF shall have one to three supervisors to be appointed by the competent authority. |
| Article 11 | The functions of the TREIF supervisors shall be as follows:
1. Oversight of the TREIF's business and finances.
2. Auditing of TREIF's books and documents.
3. Other functions conferred under laws and regulations. |
| Article 12 | Directors and supervisors shall serve three-year terms, and if reappointed may serve successive terms, provided that the number of directors serving a successive term at the expiration of any term may not exceed two-thirds of the total number of directors. If a director or supervisor is replaced for any reason, the term of the replacement shall last only until the expiration of the term of the original director or supervisor. If, upon expiration of the term of office, a director or supervisor has not been replaced, then he or she shall continue to serve until a newly appointed director or supervisor assumes office.
The number of directors and supervisors having a spousal relationship or a relationship within the third degree of kinship by blood or by marriage with respect to another director or supervisor shall not exceed one-third of the total number of directors and supervisors.
When calculating the proportions of the preceding two paragraphs, the number of directors and supervisors appointed by the competent authority shall be deducted from the numerator of each of the respective proportions.
A director or supervisor that has a conflict of interest in the course of executing his or her duties shall voluntarily recuse him or herself, provided that this requirement shall not apply when a chairperson or new directors are elected.
The term "conflict of interest" in the preceding paragraph means that a director or supervisor may, by act or omission, directly or indirectly obtain benefit for himself or herself or a related party. |
| Article 13 | The TREIF shall have one President, and if necessary for business operations, shall have one or two Executive Vice President and different departments.
The TREIF's President shall be employed or dismissed upon recommendation of the board chairperson and approval by the board of directors. The Executive Vice President and heads of departments shall be appointed or dismissed upon recommendation of the President and approval by the board of directors.
The President shall exercise overall administration of TREIF affairs in accordance with the resolutions of the board of directors. |
| Article 14 | Rules governing major matters for which the TREIF's Articles of Incorporation or Organizational Charter make no provision, and any amendments to those rules, shall be separately adopted by the board of directors, and shall be reported to the competent authority for approval prior to their implementation. |
| Article 15 | TREIF accounts shall be maintained on an accrual basis, and the beginning and end of its fiscal year shall be based on the calendar year.
Prior to formulation of each year's budget, the TREIF shall draw up operational objectives and an operations plan for the fiscal year and submit them to the competent authority for review and approval. Two months prior to the start of the fiscal year, the TREIF shall submit for recordation to the competent authority a budget report and business plan for the coming fiscal year. Within three months after the close of the fiscal year, the TREIF shall submit the final accounting report and operations report for the previous fiscal year to the competent authority for recordation. The TREIF's financial report shall be audited and attested by a certified public accountant.
The operational objectives, operations plan, budget report, business plan, final accounting report, and operations report of the preceding paragraph shall first be submitted to the board of directors for review and approval and then subsequently submitted to the competent authority.
The budget report and final accounting report of paragraph 2 shall include a balance sheet, statement of revenues and expenditures, cash flow statement, inventory of assets, and related tables.
The TREIF shall file quarterly reports regarding the status of its business and budget implementation for recordation with the competent authority. |
| Article 16 | When the TREIF is dissolved in accordance with law, then unless otherwise provided by laws, its residual assets shall be transferred to public interest institutions or organizations designated by the competent authority. Where that competent authority makes no such designation, the residual assets shall belong to the National Treasury. |
| Article 17 | Matters for which these Articles of Incorporation make no provision shall be subject to related laws and regulations, rules, and standard practices. |
| Article 18 | These Articles of Incorporation adopted and implemented per 30 November 2001 Letter No. Taiwan-Finance-Insurance-0900751338 of the Ministry of Finance.
Amendments to these Articles of Incorporation are for implementation after revision by the competent authority. |
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