When the takeover organization believes that the property of the insurance company is insufficient to clear all of its debts, subject to the approval of the financial supervision and management departments, the takeover organization may appeal to the People's Court to declare the insurance company bankrupt.

Article 117. An insurance company shall submit a business report, a financial report and other relevant statements of the previous year to the financial supervision and management departments within three months of the end of a fiscal year, and publicly announce such statements according to the law.

Article 118. An insurance company shall submit the business statistical report for the previous month to the financial supervision and management departments before the end of each month.

Article 119. An insurance company engaging in life insurance shall employ actuaries to be recognized by the financial supervision and management department.

Article 120. Both the Insurer and the Insured may hire appraisal agencies established according to the law or legally qualified experts to make appraisal and judgement concerning an insured event.

Article 121. An insurance company shall properly keep complete account books, original invoices and relevant materials related to its business operation activities.

The period of custody of the account books, original invoices and relevant materials shall be minimum of ten (10) years commencing from the termination of an insurance contract.

Chapter VI Insurance Agents and Insurance Brokers

Article 122. An "Insurance Agent" is any unit or individual who, in accordance with entrustment by the insurer, collects agency fees from the Insurer and handles insurance business on behalf of the Insurer in a scope authorized thereby.

Article 123. An "Insurance Broker" means any unit or individual who, based on the interests of the Applicant, provides intermediary services with regard to the establishment of insurance contracts between the Applicant and the Insurer and collects commission in accordance with the law.

Article 124. The Insurer shall be liable for the actions of an Insurance Agent in conducting insurance business authorized by the Insurer.

An Insurance Agent engaged in life insurance business is not allowed to undertake the entrustment of two or more Insurers at the same time.

Article 125. Any loss to the Applicant and the Insurer caused by the Insurance Broker in handling insurance business shall be compensated by the Insurance Broker.

Article 126. While conducting insurance business, the Insurance Agents and Insurance Brokers shall not take advantage of administrative power, position or professional convenience or other illegal means in forcing, inducing or restricting the Applicant in establishing an insurance contract.

Article 127. Insurance Agents and Insurance Brokers shall have qualifications stipulated by the State department in charge, shall obtain a license for conducting insurance agency business or license for brokerage from the departments in charge, shall register with the Administration for Industry and Commerce, obtain a business license and pay a guarantee money or cover professional liability insurance.

Article 128. Insurance Agents and Insurance Brokers shall have their own business sites, shall establish special account books for keeping receipts and expenditures incurred in insurance agency business or brokerage, and accept the supervision by the departments in charge.

Article 129. Insurance companies shall establish a registration book of their Insurance Agents.

Article 130. The stipulations set forth in Article 105, Article 107 and Article 117 shall apply for Insurance Agents and Insurance Brokers.

Chapter VII Legal Liability

Article 131. In the event the Applicant, the Insured or the Beneficiary conducts any of the following acts, committing insurance fraud and the case is serious enough to constitute a crime, he shall be criminal liability:

(1) The Applicant intentionally fabricates the subject matter insured and obtains insurance money through fraud;
(2) Falsely claims an insured event when no such event has occurred and obtains insurance money through fraud;
(3) Claims an insured event that deliberately causes property losses and obtains insurance money through fraud;
(4) Deliberately causes life insurance events such as death, injury or deformity, illness of the Insured and obtains insurance money through fraud;
(5) Forges or alters relevant evidence of insured events, information or other evidence, or instigate and make bribes to offer false certificates, information or other evidence, and provides false causes or exaggerates the extent of losses in order to obtain insurance money through fraud;

If the Applicant, the Insured or the Beneficiary commit any of the above actions, if the case is light and not serious enough to constitute a crime shall face disciplinary actions according to relevant State regulations.

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