STORM AND FLOOD INSURANCE ACT
Act No. 7859, Mar. 3, 2006
Amended by Act No. 8852, Feb. 29, 2008
Act No. 8863, Feb. 29, 2008
Act No. 8998, Mar. 28, 2008
Act No. 10224, Mar. 31, 2010
Act No. 11497, Oct. 22, 2012
Act No. 11690, Mar. 23, 2013
Act No. 12844, Nov. 19, 2014
Act No. 12945, Dec. 30, 2014
Act No. 14755, Mar. 21, 2017
Act No. 14839, Jul. 26, 2017
Act No. 15804, Oct. 16, 2018
Act No. 16043, Dec. 24, 2018
Act No. 16954, Feb. 4, 2020
Act No. 17112, Mar. 24, 2020
Act No. 18210, jun. 8, 2021
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to contribute to the stabilization of citizens' livelihood by providing for matters necessary for storm and flood insurance with which damage and losses caused to property by storms and floods can be indemnified for promptly and fairly.
[This Article Wholly Amended on Mar. 28, 2008]
The terms used in this Act are defined as follows: <Amended on Oct. 22, 2012; Dec. 30, 2014>
| 2. | The term "storm and flood insurance" means insurance that indemnifies the insured for damage and losses caused to his or her property by storms and floods; |
| 3. | The term "the amount of insurance coverage" means an amount of money agreed between an insurance policy holder and an insurer as the maximum amount up to which an insurance policy may cover damage and losses on the insured's property; |
| 4. | The term "premium" means the amount of money that an insurance policy holder shall pay to an insurer in accordance with an agreement between the insurance policy holder and the insurer; |
| 5. | The term "insurance proceeds" means the amount of money that an insurer pays to the insured in accordance with the agreement between the insurance policy holder and the insurer when the insured sustains damage to his or her property; |
| 6. | The term "damage assessment" means adjustment of the damage amount and insurance proceeds in accordance with damage of properties incurred from storms and floods; |
| 7. | The term “damage evaluator” means a person who has acquired the qualification of a damage evaluator under Article 16-2. |
[This Article Wholly Amended on Mar. 28, 2008]
| Article 3 (Jurisdiction over Insurance Program) |
The storm and flood insurance program in accordance with this Act shall be under the jurisdiction of the Minister of the Interior and Safety. <Amended on Nov. 19, 2014; Jul. 26, 2017>
[This Article Wholly Amended on Mar. 28, 2008]
| Article 4 (Subject Matters of Insurance) |
Subject matters that can be covered by a storm and flood insurance policy (hereinafter referred to as "subject matter of insurance") shall be the following structures and chattels ancillary to or contained in such structures: <Amended on Dec. 24, 2018; Feb. 4, 2020>
| 3. | Other structures prescribed by Presidential Decree, taking into consideration probability of damage, the utility of insurance, and other relevant factors comprehensively. |
[This Article Wholly Amended on Mar. 28, 2008]
The insured of a storm and flood insurance policy shall be the owner of a subject matter of insurance under Article 4. [This Article Wholly Amended on Mar. 28, 2008]
| (1) | Persons who may engage in the storm and flood insurance program are as follows: |
| 2. | Other institutions and organizations authorized to engage in insurance services or mutual aid services in relation to storm and flood pursuant to any other Act. |
| (2) | Where an insurer under paragraph (1) intends to engage in the storm and flood insurance program, he or she shall submit the following documents to the Minister of the Interior and Safety and shall execute an agreement on the storm and flood insurance program with the Minister of the Interior and Safety: <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| 1. | Business manual, insurance terms and conditions, and manual for the calculation of insurance premium and liability reserve (hereinafter referred to as "basic documents"); |
| 2. | Other documents prescribed by Presidential Decree, such as articles of incorporation and a certified transcript of corporate register. |
| (3) | Where the Minister of the Interior and Safety intends to execute an agreement pursuant to paragraph (2), he or she shall consult with the Financial Services Commission on the appropriateness of the basic documents. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (4) | Matters necessary for the agreement on the storm and flood insurance program provided for under paragraph (2) shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Mar. 28, 2008]
| Article 7 (Financial Support from the State and others) |
| (1) | The State or a local government may grant subsidies, within budgetary limits, to insurance policy holders for a portion of the premiums that shall be borne by insurance policy holders: Provided, That no subsidy shall be granted if a subject matter of insurance is covered by the agricultural and fishery disaster insurance under the Agricultural and Fishery Disaster Insurance Act. <Amended on Mar. 31, 2010> |
| (2) | Matters necessary for the subsidization of premiums under the main body of paragraph (1) shall be prescribed by Presidential Decree. <Amended on Mar. 31, 2010> |
[This Article Wholly Amended on Mar. 28, 2008]
| Article 8 (Committee for Deliberation on Storm and Flood Insurance) |
| (1) | The Committee for Deliberation on Storm and Flood Insurance (hereinafter referred to as the "Deliberative Committee") shall be established under the jurisdiction of the Minister of the Interior and Safety for the purpose of deliberating on the following matters: <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| 1. | Matters concerning the selection of the subject matters of insurance; |
| 2. | Matters concerning the extent of storm and flood covered by storm and flood insurance; |
| 3. | Matters concerning financial support for storm and flood insurance program; |
| 4. | Matters concerning the method and procedure for damage assessment; |
| 5. | Other matters brought by the Chairperson of the Deliberative Committee for deliberation. |
| (2) | The Deliberative Committee shall be comprised of not more than 15 members as prescribed by Presidential Decree, including one Chairperson and one vice chairperson. |
| (3) | The Deputy Minister of the Interior and Safety in charge of the national disaster and safety management shall serve as the Chairperson, while the Vice Chairperson shall be elected by and from among committee members. <Amended on Nov. 19, 2014; Mar. 21, 2017; Jul. 26, 2017> |
| (4) | Matters necessary for the organization and operation of the Deliberative Committee shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Mar. 28, 2008]
CHAPTER II OPERATION OF STORM AND FLOOD INSURANCE PROGRAM
| Article 9 (Insurance Term) |
The basic insurance term under the storm and flood insurance program shall be one year: Provided, That a different insurance term for the type of each subject matter of insurance may be set by Presidential Decree, taking into consideration the purposes of installation and the structure of each subject matter of insurance.
[This Article Wholly Amended on Mar. 28, 2008]
| Article 10 (Separate Accounting for Insurance Program) |
An insurer shall separate accounts for the storm and flood insurance program from other accounts and make profits and losses thereon clear.
[This Article Wholly Amended on Mar. 28, 2008]
| Article 11 (Calculation of Premium Rates) |
An insurer shall calculate storm and flood insurance premium rates on the basis of objective and reasonable statistical data in accordance with the following guidelines:
| 2. | The premium rate shall vary depending upon the frequency of incurrence of damage to each subject matter of insurance; |
| 3. | The premium rate shall vary depending upon the degree of risk for each region as indicated in the maps for the management of storm and flood insurance under Article 25 (1). |
[This Article Wholly Amended on Mar. 28, 2008]
| Article 12 (Limit on Amount of Insurance Coverage) |
The Minister of the Interior and Safety may set a limit to the amount of insurance coverage so that the insured can estimate the insurance proceeds to which he or she is entitled and the storm and flood insurance program can be operated properly. <Amended on Nov. 19, 2014; Jul. 26, 2017>
[This Article Wholly Amended on Mar. 28, 2008]
| Article 13 (Consent to Revision to Basic Documents) |
| (1) | Where an insurer intends to revise any basic document, it shall obtain consent thereto from the Minister of the Interior and Safety. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (2) | Where the Minister of the Interior and Safety intends to give his or her consent pursuant to paragraph (1), he or she shall consult with the Financial Services Commission. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Mar. 28, 2008]
| Article 14 (Solicitation of Insurance) |
| (1) | A person who may solicit storm and flood insurance are as follows: |
| 2. | An executive or employee of an insurer under Article 6 (1) 2; |
| 3. | Other person prescribed by Presidential Decree, such as an executive officer or employee of a member cooperative of an insurer. |
| (2) | An insurer may sell storm and flood insurance in the form of a comprehensive insurance policy or similar in combination with other non-life insurance. In such cases, Article 10 shall be complied with as regards accounting. |
[This Article Wholly Amended on Mar. 28, 2008]
| Article 15 (Cooperation in Actual Inspection on Subject Matters of Insurance Prior to Execution of Insurance Contract) |
| (1) | If necessary for conducting an actual inspection on the size, location, structure, etc. of a subject matter of insurance before executing a storm and flood insurance contract, an insurer may request the cooperation of the head of the competent local government. |
| (2) | Upon receiving a request for cooperation under paragraph (1), the head of the competent local government shall give cooperation, unless there is a compelling reason not to do so. |
[This Article Wholly Amended on Mar. 28, 2008]
| Article 16 (Damage Assessment) |
| (1) | An insurer may retain any of the following persons to take charge of damage assessment: <Amended on Dec. 30, 2014; Jul. 26, 2017> |
| (2) | A person who takes charge of damage assessment pursuant to paragraph (1) shall carry out damage assessment in good faith in accordance with guidelines for damage assessment determined and publicly notified by the Minister of the Interior and Safety. In such cases, the person shall not intentionally conceal a true fact or commit fraud in damage assessment. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (3) | Where the Minister of the Interior and Safety intends to give public notice of guidelines for damage assessment under paragraph (2), he or she shall consult with the Financial Services Commission in advance. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (4) | The Minister of the Interior and Safety shall devise measures for securing and training certified damage evaluators pursuant to paragraph (1). <Amended on Nov. 19, 2014; Dec. 30, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Mar. 28, 2008]
| Article 16-2 (Damage Evaluators) |
| (1) | Any person who intends to become a damage evaluator shall have requirements such as professional experience and knowledge concerning subject matters of insurance prescribed by Presidential Decree and receive education conducted or accepted by the Minister of the Interior and Safety, as prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Jul. 26, 2017> |
| (2) | The Minister of the Interior and Safety shall issue a certificate of damage evaluator prescribed by Ordinance of the Ministry of the Interior and Safety, to a person who has received education under paragraph (1). <Amended on Mar. 21, 2017; Jul. 26, 2017> |
| (3) | None of the following persons may become a damage evaluator: <Amended on Dec. 24, 2018> |
| 2. | A person under adult guardianship or limited guardianship; |
| 3. | A person for whom two years have not elapsed since his or her imprisonment without labor or greater punishment, declared by a court for violation of this Act, was complete (including where the execution of such sentence is deemed complete) or the non-execution of such sentence became final; |
| 4. | A person who is under suspension of the execution of his or her imprisonment without labor or greater punishment, declared by a court for violation of this Act; |
| 5. | A person for whom two years have not elapsed from the date on which a qualification of a damage evaluator has been revoked under Article 16-3 (1) (Excluding the case where his or her qualification is canceled since he or she falls under subparagraph 1 or 2 of this Act). |
| (4) | Any damage evaluator shall receive continuing education provided or recognized by the Minister of the Interior and Safety as prescribed by Ordinance of the Ministry of the Interior and Safety for improvement of qualification and ability as a damage evaluator. <Amended on Jul. 26, 2017> |
[This Article Newly Inserted on Dec. 30, 2014]
| Article 16-3 (Cancellation and Suspension of Qualification of Damage Evaluators) |
| (1) | The Minister of the Interior and Safety shall cancel the qualification if a damage evaluator falls under any of the following: <Amended on Jul. 26, 2017> |
| 1. | Where a person has acquired the qualification of a damage evaluator by fraud or other illegal means; |
| 2. | Where a person has intentionally hidden the truth or evaluate the damage in violation of the latter part of Article 16 (2); |
| 3. | Where a person has fallen under any subparagraph of Article 16-2 (3). |
| (2) | The Minister of the Interior and Safety may order suspension of the qualification in determination of period less than one year as prescribed by Ordinance of the Ministry of the Interior and Safety in any cases a damage evaluator has not received continuing education under Article 16-2 (4) without good cause. <Amended on Jul. 26, 2017> |
| (3) | The Minister of the Interior and Safety shall have a hearing where he or she intends to cancel the qualification of a damage evaluator under paragraph (1). <Amended on Jul. 26, 2017> |
[This Article Newly Inserted on Dec. 30, 2014]
| Article 17 (Verification of Damage Assessment) |
| (1) | An insurer may conduct sample surveys in order to verify damage assessment under Article 16 (1). |
| (2) | If it is necessary to make any adjustment due to a considerable discrepancy between the results of a sample survey under paragraph (1) and the result of a damage assessment, an insurer may conduct another damage assessment, subject to prior consultation with the Minister of the Interior and Safety. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Mar. 28, 2008]
| Article 18 (Payment of Insurance Proceeds) |
Guidelines for application for payment of insurance proceeds, payment of such proceeds, and other relevant matters shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Mar. 28, 2008]
| Article 19 (Accumulation of Liability Reserve) |
| (1) | An insurer shall appropriate a liability reserve and an emergency risk reserve separately at the end of each fiscal year. |
| (2) | Matters necessary for appropriating a liability reserve and an emergency risk reserve shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Mar. 28, 2008]
| Article 20 (Establishment of Deficit Compensation Reserve) |
| (1) | An insurer shall accumulate a deficit compensation reserve for the smooth stabilization of insurance finances and the smooth operation of the insurance program. |
| (2) | The deficit compensation reserve shall be established with earnings retained at the time of settlement of accounts of the insurance program, gains on operation of the deficit compensation reserve, borrowings, contributions from the Government and other Funds, and other revenues. In such cases, borrowing a loan for the purpose of establishing the deficit compensation reserve shall be subject to approval from the Minister of the Interior and Safety. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (3) | Matters necessary for the management and operation of the deficit compensation reserve shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Mar. 28, 2008]
| Article 21 (Disposition of Deficits) |
An insurer shall appropriate the emergency risk reserve and the deficit compensation reserve for the deficit accrued, if any, at the time of settlement of accounts for the insurance program, and if the amount of such deficit exceeds the emergency risk reserve and the deficit compensation reserve which have been accumulated, a subsidy from the National Treasury may be granted to cover the difference.
[This Article Wholly Amended on Mar. 21, 2017]
| Article 22 (Execution of Reinsurance Contract) |
An insurer may execute a reinsurance contract with another insurer entitled to engage in reinsurance business pursuant to the Insurance Business Act and other relevant laws for the purpose of transferring part of its liability for the payment of insurance proceeds that it is required to pay otherwise if a disaster occurs. [This Article Wholly Amended on Mar. 28, 2008]
CHAPTER III ASSISTANCE IN STORM AND FLOOD INSURANCE PROGRAM
| Article 23 (Promotion of Insurance Purchase) |
| (1) | The State or a local government may induce any of the following persons to purchase and maintain a storm and flood insurance policy during the period specified by Presidential Decree, subject to the person's consent, in order to promote the purchase of storm and flood insurance policies and raise awareness of autonomous disaster prevention: <Amended on Jun. 8, 2021> |
| 1. | A person to whom a loan or subsidy prescribed by Presidential Decree is granted; |
| (2) | The State and local governments shall formulate and implement an implementation plan each year to promote the purchase of a storm and flood insurance policy in the following areas: <Newly Inserted on Jun. 8, 2021> |
[This Article Wholly Amended on Mar. 28, 2008]
| Article 24 (Collection, Consolidation, and Management of Statistics Related to Storm and Flood) |
| (1) | The Minister of the Interior and Safety shall establish and manage a computer network for the management of statistics with which necessary statistical data, such as the current status of subject matters of insurance, the amount of damage, and causes of damage, can be collected and consolidated, so as to prevent damage from storms and floods and to operate the storm and flood insurance program properly. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (2) | The head of each Si/Gun/Gu shall submit the following data to the Minister of the Interior and Safety by no later than March 31 each year, via the Special Metropolitan City Mayor or the competent Metropolitan City Mayor, Do Governor, or the Governor of a Special Self-Governing Province (hereinafter referred to as "Mayor/Do Governor"), so as to collect and consolidate the statistical data under paragraph (1): <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| 1. | The overall status of the subject matters of insurance during the previous year by type of structure, purpose of use, and regions; |
| 2. | The amount of damage to the subject matters of insurance during the previous year by type of structure, purpose of use, and region and cause of damage; |
| 3. | Data regarding premiums, insurance proceeds and other data that the Administrator of the Minister of the Interior and Safety deems necessary for establishing a budget for the following year. |
| (3) | An insurer may request the Minister of the Interior and Safety to furnish it with statistical data under paragraph (2) for calculating the premium rate for storm and flood insurance and amount of insurance coverage. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (4) | Detailed procedures and the method of operation necessary for the collection, consolidation, and management of statistics under paragraphs (1) and (2) shall be determined by the Minister of the Interior and Safety. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Mar. 28, 2008]
| Article 25 (Preparation of Maps for Management of Storm and Flood Insurance) |
| (1) | The Minister of the Interior and Safety shall prepare maps indicating the degree of risk of storm and flood in each region (hereinafter referred to as "maps for the management of storm and flood insurance"), taking into consideration the history of storms and floods that have occurred in the past and risk of probable occurrences of storm and flood in the future, and shall set up and manage a computer system for the integrated management of such maps so as to prevent damage from storms and floods and to operate the storm and flood insurance program properly. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (2) | Matters necessary for the method of preparation of maps for the management of storm and flood insurance, including the units and contents of such maps, shall be determined by the Minister of the Interior and Safety, subject to consultation with related agencies. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (3) | The Minister of the Interior and Safety shall comprehensively review every five years the accuracy of the maps prepared for the management of storm and flood insurance pursuant to paragraph (1) and set the maps in good working conditions accordingly. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (4) | The Minister of the Interior and Safety may delegate any part of the work for the preparation of the maps for the management of storm and flood insurance to the head of a local government, as prescribed by Presidential Decree. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (5) | An insurer may request the Minister of the Interior and Safety to permit it to use the maps for the management of storm and flood insurance for the calculation of premium rates of storm and flood insurance and amounts of insurance coverage. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
[This Article Wholly Amended on Mar. 28, 2008]
| Article 25-2 (Vicarious Preparation of Maps for Management of Storm and Flood Insurance) |
| (1) | The Minister of the Interior and Safety may authorize a person who has the technical capability of preparing maps for the management of storm and flood insurance to prepare maps for the management of storm and flood insurance vicariously. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (2) | A person who intends to carry out the work under paragraph (1) vicariously shall have technical human resources that meet standards prescribed by Presidential Decree. |
| (3) | Procedure for the vicarious preparation of maps for the management of storm and flood insurance and other necessary matters shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
[This Article Newly Inserted on Mar. 28, 2008]
| Article 25-3 (Vicarious Integration and Management of Maps for Management of Storm and Flood Insurance) |
| (1) | The Minister of the Interior and Safety may authorize a specialized institution designated by the Minister of the Interior and Safety to vicariously carry out the work for the integration and management of maps for the management of storm and flood insurance, as prescribed by Presidential Decree. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (2) | A person who vicariously carries out the integration and management of maps for the management of storm and flood insurance may provide copies of all or some information contained in maps for the management of storm and flood insurance or data processed with such information in return for fees, subject to prior approval of the Minister of the Interior and Safety. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (3) | Procedure for the use of information of maps for the management of storm and flood insurance and matters for the collection of fees shall be prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
[This Article Newly Inserted on Mar. 28, 2008]
| Article 26 (Academic Survey and Research) |
| (1) | The Minister of the Interior and Safety shall devise measures to encourage scientific surveys and research on systems for the prevention of damage by storm and flood, and the storm and flood insurance system, the development of related technologies, and the training of professional human resources. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (2) | The State may provide assistance as may be necessary for the scientific surveys and research stipulated under paragraph (1). |
[This Article Wholly Amended on Mar. 28, 2008]
CHAPTER IV SUPPLEMENTARY PROVISIONS
| Article 27 (Entrustment of Business Affairs) |
If necessary for the smooth implementation of the storm and flood insurance program, an insurer may entrust part of the business affairs of storm and flood insurance, as prescribed by Presidential Decree, such as solicitation of insurance and damage assessment, to any of the following persons:
| 3. | Any other persons prescribed by Presidential Decree. |
[This Article Wholly Amended on Mar. 28, 2008]
If the Minister of the Interior and Safety deems it necessary for the smooth operation of the storm and flood insurance program and the protection of insurance policy holders and the insured, he or she may require an insurer to submit a report on the current status of its business performance related to the storm and flood insurance program or relevant documents. <Amended on Nov. 19, 2014; Jul. 26, 2017>
[This Article Wholly Amended on Mar. 28, 2008]
| Article 29 (Mediation of Disputes) |
Articles 33 through 43 of the Financial Consumer Protection Act shall apply to mediation in disputes arising in connection with a storm and flood insurance. <Amended on Mar. 24, 2020> [This Article Wholly Amended on Mar. 28, 2008]
| Article 30 (Succession to Rights and Obligations upon Transfer of Insured Subject Matters) |
| (1) | Where the insured transfers an insured subject matter to another person, the transferee shall be presumed to succeed to the transferor's rights and obligations arising from the relevant insurance contract. |
| (2) | In cases under paragraph (1), either the transferor or the transferee shall without delay notify the insurer of the fact. |
[This Article Wholly Amended on Mar. 28, 2008]
| Article 31 (Protection of Beneficial Rights) |
A right to be paid insurance proceeds of a storm and flood insurance policy shall not be subject to seizure: Provided, That the foregoing shall not apply where a subject matter of insurance has been offered as security.
[This Article Wholly Amended on Mar. 28, 2008]
| Article 32 (Notice and Prescription) |
| (1) | An insurer shall notify insurance policy holders of premiums, and the payment deadline of premiums, etc., as prescribed by Ordinance of the Ministry of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (2) | The right to the return of premiums or the right to receive insurance proceeds pursuant to this Act shall become extinct by prescription, if such right is not exercised within two years. |
| (3) | The extinctive prescription under paragraph (2) shall be governed by the Civil Act, except as provided in this Act. |
[This Article Wholly Amended on Mar. 28, 2008]
| Article 33 (Organization of Local Government) |
The head of each local government shall organize and operate a department exclusively responsible for the business affairs of storm and flood insurance in order to smoothly operate the storm and flood insurance system under this Act.
[This Article Wholly Amended on Mar. 28, 2008]
| Article 34 (Relationship to Damage Subsidization Systems) |
| (2) | Subsidies from the National Treasury or the local expenditure under Article 66 of the Framework Act on the Management of Disasters and Safety shall be granted for disaster recovery projects for subject matters not insured by storm and flood insurance, but the scale of such subsidies shall be adjusted yearly in accordance with guidelines prescribed by Presidential Decree. |
[This Article Wholly Amended on Mar. 28, 2008]
| Article 35 (Application of the Insurance Business Act) |
| (1) | Articles 118 (1), 119, 124, 131, 132, 134 (1), 136, 162, 176, and 181 (1) of the Insurance Business Act shall apply to a storm and flood insurance program. In such cases, "insurance company" shall be construed as "insurer." <Amended on Mar. 24, 2020> |
| (2) | Article 45 of the Financial Consumer Protection Act shall apply to a storm and flood insurance program under this Act. In such cases, "direct sellers of financial products" shall be construed as "insurers". <Newly Inserted on Mar. 24, 2020> |
[This Article Wholly Amended on Mar. 28, 2008]
[Title Amended on Mar. 24, 2020]
CHAPTER V PENALTY PROVISIONS
| Article 36 (Penalty Provisions) |
| (1) | A person who provides money or goods, or an insurance policy holder who demands and receives money or goods, in violation of Article 98 of the Insurance Business Act applied mutatis mutandis pursuant to Article 14 (3) shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 20 million won. |
| (2) | Any of the following persons shall be punished by imprisonment for not more than one year or by a fine not exceeding 10 million won: |
| 1. | A person who conducts solicitation, in violation of Article 14 (1); |
| 2. | A person who intentionally conceals a true fact, or who commits fraud in damage assessment, in violation of the latter part of Article 16 (2). |
| (3) | A person who engages in accounting, in violation of Article 10 shall be punished by a fine not exceeding five million won. |
[This Article Wholly Amended on Mar. 28, 2008]
| Article 37 (Joint Penalty Provisions) |
| (1) | Where the representative, an agent, or an employee of, or any other person employed by, a corporation commits any violation referred to in Article 36 in conducting the business affairs of the corporation, the corporation shall, in addition to punishing the violator accordingly, be subject to a fine prescribed in the relevant Article: Provided, That this shall not apply where such corporation has not been negligent in giving due attention and supervision concerning the relevant business affairs to prevent such violation. |
| (2) | Where an agent, or an employee of, or any other person employed by, an individual commits any violation referred to in Article 36 in conducting the business affairs of the individual, the individual shall, in addition to punishing the violator accordingly, be subject to a fine prescribed in the relevant Article: Provided, That this shall not apply where such individual has not been negligent in giving due attention and supervision concerning the relevant business affairs to prevent such violation. |
[This Article Wholly Amended on Mar. 28, 2008]
| Article 38 (Administrative Fines) |
| (2) | Where a promoter, an incorporator, an executive officer, a senior executive employee, an ordinary executive employee, an inspector, a bankruptcy administrator, or a liquidator of an insurer falls under any of the following, he or she shall be subject to an administrative fine not exceeding five million won: <Amended on Mar. 21, 2017; Mar. 24, 2020> |
| 1. | Where he or she fails to appropriate a liability reserve or an emergency risk reserve separately, in violation of Article 19 (1); |
| 1-2. | Where he or she fails to accumulate a deficit compensation reserve, in violation of Article 20 (1); |
| (3) | Any of the following persons shall be subject to an administrative fine not exceeding five million won: <Amended on Mar. 24, 2020> |
| 3. | A person who fails to submit a report or the relevant document under Article 28 or who makes a false representation in submitting such a report or relevant document. |
| (4) | Administrative fines under paragraphs (1) and (3) shall be imposed and collected by the Minister of the Interior and Safety, while administrative fines under paragraph (2) shall be imposed and collected by the Financial Services Commission, as prescribed by Presidential Decree. <Amended on Nov. 19, 2014; Jul. 26, 2017> |
| (5) | Deleted. <Mar. 31, 2010> |
| (6) | Deleted. <May 31, 2010> |
| (7) | Deleted. <Mar. 31, 2010> |
[This Article Wholly Amended on Mar. 28, 2008]
ADDENDUM <Act No. 7859, Mar. 3, 2006>
This Act shall enter into force on the day prescribed by Presidential Decree, which shall not be later than six months after the date of its promulgation.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 8863, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 8998, Mar. 28, 2008>
This Act shall enter into force six months after the date of its promulgation.
ADDENDUM <Act No. 10224, Mar. 31, 2010>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 11497, Oct. 22, 2012>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation. |
Articles 2 through 7 Omitted.
ADDENDA <Act No. 12844, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That amended parts of any Act of which enforcement date does not arrive though the Act has been promulgated before this Act enters into force under Article 6 of the Addenda shall enter into force on the date of promulgation of relevant Act, respectively. Articles 2 through 7 Omitted.
ADDENDA <Act No. 12945, Dec. 30, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability concerning Grounds for Disqualification)
The amended provisions of Article 16-2 (3) shall apply beginning with a person who acquires the qualification of a damage evaluator after this Act enters into force. Article 3 (Applicability concerning Cancellation and Suspension of Qualifications of Damage Evaluators)
The amended provisions of Article 16-3 (1) and (2) shall apply from such cases falling under the reasons of cancellation and suspension of qualification incurred after this Act enters into force. Article 4 (Special Cases concerning Grounds for Disqualification of Persons under Adult Guardianship, etc.)
Persons under adult guardianship or persons under limited guardianship referred to in the amended provision of Article 16-2 (3) 2 shall be deemed to include persons for whom the declaration of incompetency or quasi-incompetency remains effective under Article 2 of the Addenda to the Civil Act (Act No. 10429).
ADDENDA <Act No. 14755, Mar. 21, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Liability to Accumulate Retained Earnings Accrued at the Time of Settlement of Accounts as Deficit Compensation Reserves)
| (1) | Retained earnings accrued at the time of settlement of accounts in the fiscal year whereto belongs the enforcement date of this Act shall be accumulated as deficit compensation reserves under the previous provisions, notwithstanding the amended provision of Article 21. |
| (2) | Where any insurer fails to accumulate retained earnings accrued at the time of settlement of accounts in the fiscal year whereto belongs the enforcement date of this Act, as deficit compensation reserves, he/she shall be subject to an administrative fine not exceeding five million one. |
| (3) | The previous provisions shall apply to the imposition of administrative fines for acts committed before this Act enters into force. |
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation: Provided, That the amendments to the Acts to be amended pursuant to Article 5 of the Addenda, which were promulgated before this Act enters into force but the enforcement dates of which have yet to arrive, shall enter into force the enforcement date of the relevant Act. |
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 15804, Oct. 16, 2018>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 16043, Dec. 24, 2018>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 16954, Feb. 4, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 17112, Mar. 24, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Article 2 through 13 Omitted.
ADDENDUM <Act No. 18210, Jun. 8, 2021>
This Act shall enter into force three months after the date of its promulgation.