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ENFORCEMENT DECREE OF THE INSURANCE BUSINESS ACT

Wholly Amended by Presidential Decree No. 18093, Aug. 27, 2003

Amended by Presidential Decree No. 18297, Feb. 28, 2004

Presidential Decree No. 18312, Mar. 17, 2004

Presidential Decree No. 18325, Mar. 22, 2004

Presidential Decree No. 18343, Mar. 29, 2004

Presidential Decree No. 18596, Dec. 3, 2004

Presidential Decree No. 18736, Mar. 8, 2005

Presidential Decree No. 18740, Mar. 18, 2005

Presidential Decree No. 18767, Mar. 31, 2005

Presidential Decree No. 18761, Mar. 31, 2005

Presidential Decree No. 20823, jun. 13, 2008

Presidential Decree No. 20947, Jul. 29, 2008

Presidential Decree No. 9407, Feb. 3, 2009

Presidential Decree No. 21480, May 6, 2009

Presidential Decree No. 21518, May 29, 2009

Presidential Decree No. 21765, Oct. 1, 2009

Presidential Decree No. 21911, Dec. 29, 2009

Presidential Decree No. 22151, May 4, 2010

Presidential Decree No. 22467, Nov. 2, 2010

Presidential Decree No. 22493, Nov. 15, 2010

Presidential Decree No. 22637, Jan. 24, 2011

Presidential Decree No. 23496, Jan. 6, 2012

Presidential Decree No. 23488, Jan. 6, 2012

Presidential Decree No. 23644, Feb. 29, 2012

Presidential Decree No. 23826, jun. 1, 2012

Presidential Decree No. 23987, Jul. 24, 2012

Presidential Decree No. 24001, Jul. 31, 2012

Presidential Decree No. 24076, Aug. 31, 2012

Presidential Decree No. 24097, Sep. 7, 2012

Presidential Decree No. 24657, Jul. 8, 2013

Presidential Decree No. 24697, Aug. 27, 2013

Presidential Decree No. 25050, Dec. 30, 2013

Presidential Decree No. 25279, Mar. 24, 2014

Presidential Decree No. 25311, Apr. 15, 2014

Presidential Decree No. 25459, Jul. 14, 2014

Presidential Decree No. 25532, Aug. 6, 2014

Presidential Decree No. 25751, Nov. 19, 2014

Presidential Decree No. 25887, Dec. 23, 2014

Presidential Decree No. 25945, Dec. 30, 2014

Presidential Decree No. 26040, Jan. 6, 2015

Presidential Decree No. 26200, Apr. 14, 2015

Presidential Decree No. 26205, Apr. 20, 2015

Presidential Decree No. 26438, Jul. 24, 2015

Presidential Decree No. 26517, Sep. 11, 2015

Presidential Decree No. 26600, Oct. 23, 2015

Presidential Decree No. 26917, Jan. 19, 2016

Presidential Decree No. 27037, Mar. 11, 2016

Presidential Decree No. 27080, Apr. 1, 2016

Presidential Decree No. 27205, May 31, 2016

Presidential Decree No. 27288, jun. 28, 2016

Presidential Decree No. 27414, Jul. 28, 2016

Presidential Decree No. 27472, Aug. 31, 2016

Presidential Decree No. 27556, Oct. 25, 2016

Presidential Decree No. 27923, Feb. 28, 2017

Presidential Decree No. 27970, Mar. 29, 2017

Presidential Decree No. 28142, jun. 20, 2017

Presidential Decree No. 28152, jun. 27, 2017

Presidential Decree No. 28218, Jul. 26, 2017

Presidential Decree No. 28383, Oct. 17, 2017

Presidential Decree No. 28945, jun. 5, 2018

Presidential Decree No. 28946, jun. 5, 2018

Presidential Decree No. 29089, Aug. 7, 2018

Presidential Decree No. 29429, Dec. 24, 2018

Presidential Decree No. 29498, Jan. 22, 2019

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Decree is to provide for matters delegated by the Insurance Business Act and matters necessary for the implementation thereof.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 1-2 (Insurance Products)
(1) "Those prescribed by Presidential Decree" in the part other than the items of subparagraph 1 of Article 2 of the Insurance Business Act (hereinafter referred to as the "Act") means any of the following insurances:
1. Employment insurance under the Employment Insurance Act;
2. Health insurance under the National Health Insurance Act;
3. National pension under the National Pension Act;
4. Long-term care insurance under the Long-Term Care Insurance Act;
5. Industrial accident compensation insurance under the Industrial Accident Compensation Insurance Act;
6. Prepaid installment contract under subparagraph 2 of Article 2 of the Installment Transactions Act.
(2) "Contract prescribed by Presidential Decree" in subparagraph 1 (a) of Article 2 of the Act means any of the following contracts:
1. Life insurance contract;
2. Pension insurance contract (including retirement insurance contract).
(3) "Contract prescribed by Presidential Decree" in subparagraph 1 (b) of Article 2 of the Act means any of the following contracts:
1. Fire insurance contract;
2. Maritime insurance contract (including aviation or transportation insurance contract);
3. Automobile insurance contract;
4. Surety insurance contract;
5. Reinsurance contract;
6. Liability insurance contract;
7. Technology insurance contract;
8. Title insurance contract;
9. Pilferage insurance contract;
10. Plate glass insurance contract;
11. Animal insurance contract;
12. Nuclear energy insurance contract;
13. Cost reimbursement insurance contract;
14. Weather insurance contract.
(4) "Contract prescribed by Presidential Decree" in subparagraph 1 (c) of Article 2 of the Act means any of the following contracts:
1. Injury insurance contract;
2. Disease insurance contract;
3. Nursing insurance contract.
(5) Detailed standards for classifying the types of insurance under paragraphs (2) through (4) shall be determined and publicly notified by the Financial Services Commission.
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 2 (Scope of Credit Extension)
(1) The scope of credit extension under subparagraph 13 of Article 2 of the Act shall be as follows, and the specific details thereof shall be determined and publicly notified by the Financial Services Commission:
1. Loan;
2. Purchase of bills and bonds;
3. Other transactions that are likely to cause losses to insurance companies when a business partner becomes insolvent;
4. Transactions that are likely to bring about the same results as transactions mentioned in subparagraphs 1 through 3, even though an insurance company is not directly engaged in transactions falling under any of subparagraphs 1 through 3.
(2) Notwithstanding paragraph (1), the Financial Services Commission may choose not to include the following transactions in the scope of credit extension:
1. Transactions that are likely to have a minor possibility of causing losses to insurance companies;
2. Transactions of which inclusion in the scope of credit extension seems improper in light of situations of the relevant transactions, such as influences over financial markets, etc.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 3 (Scope of Total Assets)
(1) "Such assets as prescribed by Presidential Decree, including deferred acquisition cost, goodwill, etc." in subparagraph 14 of Article 2 of the Act means deferred acquisition cost, goodwill and special account assets under Article 108 (1) 2 and 3 of the Act.
(2) Detailed matters concerning the scope of assets, etc. under paragraph (1) shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 4 (Scope of Equity Capital)
Items to be added and items to be deducted in computing equity capital under subparagraph 15 of Article 2 of the Act shall be determined and publicly notified by the Financial Services Commission in accordance with the following subparagraphs:
1. Items to be added: Those contributing to the debt-to-equity balance of the insurance company or capable of covering losses incurred in the business activities, such as paid-in capital, capital surplus or earned surplus;
2. Items to be deducted: Those not contributing to the debt-to-equity balance in real terms, such as goodwill.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 5 (Scope of Same Borrowers)
"Person as prescribed by Presidential Decree" in subparagraph 16 of Article 2 of the Act means any company belonging to an enterprise group under subparagraph 2 of Article 2 of the Monopoly Regulation and Fair Trade Act.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 6 Deleted. <by Presidential Decree No. 27414, Jul. 28, 2016>
 Article 6-2 (Scope of Professional Policyholders)
(1) “Person prescribed by Presidential Decree" in the proviso to the main body of subparagraph 19 of Article 2 of the Act means any of the following persons:
1. A local government;
2. A stock-listed corporation;
3. A person falling under paragraph (2) 15;
4. A person falling under paragraph (3) 15, 16 or 18.
(2) "Financial institutions prescribed by Presidential Decree" in subparagraph 19 (c) of Article 2 of the Act means any of the following institutions:
1. Insurance companies;
2. Financial holding companies under the Financial Holding Companies Act;
3. The National Agricultural Cooperative Federation under the Agricultural Cooperatives Act;
4. The National Forestry Cooperative Federation under the Forestry Cooperatives Act;
5. Mutual savings banks and the Korea Federation of Savings Banks under the Mutual Savings Banks Act;
6. The Korean Federation of Community Credit Cooperatives under the Community Credit Cooperatives Act;
7. The National Federation of Fisheries Cooperatives under the Fisheries Cooperatives Act;
8. The National Credit Union Federation of Korea under the Credit Unions Act;
9. Specialized credit financial companies under the Specialized Credit Financial Business Act;
10. Banks under the Banking Act;
11. Financial investment business entities (excluding concurrently-run financial investment business entities under Article 22 of the Financial Investment Services and Capital Markets Act), securities finance companies, merchant banks and financial brokerage companies under the Financial Investment Services and Capital Markets Act;
12. The Industrial Bank of Korea under the Industrial Bank of Korea Act;
13. The Korea Development Bank under the Korea Development Bank Act;
14. The Export-Import Bank of Korea under the Export-Import Bank of Korea Act;
15. Foreign financial institutions corresponding to the institutions under subparagraphs 1 through 14.
(3) "Person prescribed by Presidential Decree" in subparagraph 19 (e) of Article 2 of the Act means any of the following persons: <Amended by Presidential Decree No. 24697, Aug. 27, 2013; Presidential Decree No. 25279, Mar. 24, 2014; Presidential Decree No. 27037, Mar. 11, 2016; Presidential Decree No. 27205, May 31, 2016>
1. A local government;
2. A person entitled to engage in insurance solicitation under Article 83 of the Act;
3. An insurance association under Article 175 of the Act, a premium rate calculation agency under Article 176 of the Act, and an insurance-related organization under Article 178 of the Act;
5. The Financial Supervisory Service under the Act on the Establishment, Etc. of Financial Services Commission (hereinafter referred to as the "Financial Supervisory Service");
6. The Korea Deposit Insurance Corporation and financial companies for resolution under the Depositor Protection Act;
7. The Korea Securities Depository prescribed in the Financial Investment Services and Capital Markets Act and the Exchange that obtained permission under Article 373-2 of the said Act (hereinafter referred to as the "Exchange");
8. Collective investment schemes under the Financial Investment Services and Capital Markets Act: Provided, That the collective investment schemes determined and publicly notified by the Financial Services Commission shall be excluded herefrom;
9. The Korea Housing Finance Corporation under the Korea Housing Finance Corporation Act;
10. The Korea Investment Corporation under the Korea Investment Corporation Act;
11. Deleted; <by Presidential Decree No. 25945, Dec. 30, 2014>
12. The Korea Technology Finance Corporation under the Korea Technology Finance Corporation Act;
13. The Credit Guarantee Fund under the Credit Guarantee Fund Act;
14. A corporation performing mutual-aid business in accordance with other Acts;
15. A fund established under other Acts (excluding a fund referred to in subparagraph 12 or 13) and a corporation that manages and operates such fund;
16. A domestic corporation that has issued certificates of shares listed in an overseas securities market;
17. Any of the following foreigners:
(a) A foreign government;
(b) An international organization established under a treaty;
(c) A central bank of a foreign country;
(d) A foreigner equivalent to those falling under subparagraphs 1 through 15 and 18;
18. Any other person determined and publicly notified by the Financial Services Commission as a person who understands and is capable of implementing the details of insurance contracts in view of the expertise in insurance contracts and value of assets.
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 7 (Conclusion of Insurance Contracts)
(1) Cases where any person may conclude an insurance contract with persons other than an insurance company pursuant to the proviso to Article 3 of the Act shall be as follows:
1. Where he or she concludes a life insurance contract, insurance contract on export cargo, insurance contract on import cargo, aviation insurance contract, travel insurance contract, hull insurance contract, long-term accident insurance contract or reinsurance contract with a foreign insurer;
2. Where he or she concludes an insurance contract with a foreign insurer, except such cases as described in subparagraph 1, as he or she has been rejected by not less than three insurance companies to effect the types of insurance being sold in the Republic of Korea;
3. Where he or she concludes a contract with a foreign insurer with respect to the types of insurance being sold in the Republic of Korea;
4. Where he or she has concluded an insurance contract in a foreign country, and maintains it within the Republic of Korea before the period for coverage expires;
5. Where he or she has difficulty to conclude insurance contracts with any insurance company aside from subparagraphs 1 through 4 and has obtained approval from the Financial Services Commission.
(2) Methods to confirm the insurance contracts which may be concluded pursuant to paragraph (1) 1 through 3, and necessary matters concerning the methods of foreign insurers' concluding or soliciting insurance contracts within the Republic of Korea, shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
CHAPTER II LICENSES OF INSURANCE BUSINESS
 Article 8 (Types of Insurance Business)
(1) "Other types of insurance business prescribed by Presidential Decree" in Article 4 (1) 2 (f) of the Act means any of the following types of insurance business: <Amended by Presidential Decree No. 25311, Apr. 15, 2014>
1. Liability insurance;
2. Technology insurance;
3. Title insurance;
4. Theft insurance, plate glass insurance, animal insurance or nuclear insurance;
5. through 7. Deleted; <by Presidential Decree No. 25311, Apr. 15, 2014>
8. Cost reimbursement insurance;
9. Weather insurance.
(2) Detailed standards for classifying the types of insurance under each subparagraph of Article 4 (1) of the Act shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 9 (Applications for Licenses)
(1) Each person who applies for a license for insurance business under Article 5 of the Act shall submit an application stating the following matters to the Financial Services Commission:
1. Company name;
2. Location of the principal office;
3. Names, resident registration numbers and addresses of the representative and executive officers;
4. Matters concerning capital or funds;
5. Matters concerning facilities, equipment and human resources;
6. Types of insurance for which the license is applied.
(2) "Documents prescribed by Presidential Decree" in subparagraph 3 of Article 5 of the Act means business manuals by type of insurance.
(3) "Documents prescribed by Presidential Decree" in subparagraph 4 of Article 5 of the Act means documents classified as follows. In such cases, the Financial Services Commission shall confirm a corporate registration certificate (applicable only to that of a stock company or mutual company excluding foreign insurers) through joint use of administrative information pursuant to Article 36 (1) or (2) of the Electronic Government Act:
1. The following documents in cases of any stock company or mutual company other than foreign insurers: Provided, That such company may choose not to submit the documents referred to in items (a) through (c) where intending to add the types of insurance to sell:
(a) Minutes of promoters' meeting;
(b) Resumes and career certificates of executive officers and promoters;
(c) Joint-venture contracts (applicable only to the case where intending to run an insurance business through a joint venture with a foreign company);
(d) Documents attesting the payment of capital or funds under Article 9 (1) and (2) of the Act;
(e) Financial statements and documents annexed thereto;
(f) Documents indicating the names or titles of shareholders (members, in cases of a mutual company), and the number of stocks in their possession (investment shares, in cases of a mutual company);
(g) Other documents necessary to examine the requirements for granting a license under the Act or this Decree, which are prescribed by Ordinance of the Prime Minister;
2. The following documents in cases of a foreign insurer: Provided, That such company may choose not to submit the documents referred to in items (b), (d) and (e) where intending to add the types of insurance to sell:
(a) Documents issued by an authorized institution in the native country, attesting that the head office of the foreign insurer operates a lawful insurance business;
(b) Documents attesting the power of representation of a person who represents the foreign insurer (hereafter referred to as "representative" in this subparagraph) in the Republic of Korea;
(c) Balance sheets and income statements for the latest three years of the head office of the foreign insurer;
(d) Documents attesting to the payment of operating funds under Article 9 (3) of the Act;
(e) Resume and job reference of the representative;
(f) Financial statements and documents annexed thereto;
(g) Other documents necessary to examine the requirements for granting a license under the Act or this Decree, which are prescribed by Ordinance of the Prime Minister.
(4) When the Financial Services Commission receives an application for license under Article 5 of the Act, it shall examine such application within two months (within one month in cases of an application for a preliminary license under Article 7 of the Act) and notify the applicant as to whether it will grant a license: Provided, That the period required for supplementing application documents or for on-site investigation shall not be counted in the notification period.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 10 (Detailed Requirements for Licenses)
(1) Each person who intends to obtain an insurance business license under Article 6 (1) 2 of the Act shall fulfill the following conditions as to experts and physical facilities: <Amended by Presidential Decree No. 27414, Jul. 28, 2016>
1. The promoters (who should be private individuals) shall not fall under the grounds for ineligibility to become an executive officer under Article 5 (1) of the Act on Corporate Governance of Financial Companies, and a required workforce, such as experts with the speciality and soundness relating to the insurance business for which he or she intends to obtain a license, and computer staff for the business operation of the insurance company shall be secured;
2. Computer facilities necessary to run the insurance business for which he or she intends to obtain a license shall be established, and sufficient space, including offices, shall be secured.
(2) Where a person intending to obtain an insurance business license entrusts a third party with any of the following affairs, he or she shall be deemed to have experts and physical facilities related to such affairs under the latter part of Article 6 (1) 2 of the Act:
1. Claim adjustment;
2. Investigation for review of insurance contracts;
3. Investigation into insurance accidents for review of payment of insurance proceeds;
4. Development, operation, maintenance and repair of computer facilities.
(3) Each business plan under Article 6 (1) 3 of the Act shall comply with all of the following requirements:
1. It shall be suitable for carrying on continuous business, and the estimated financial statements and prospective revenues shall be appropriate in light of the business plan;
2. The method of raising funds, such as the capital required to implement the business plan, etc., shall be appropriate;
3. Its business manual shall be appropriate in order to protect policyholders.
(4) Large shareholders under Article 6 (1) 4 of the Act shall satisfy the requirements set forth in attached Table 1.
(5) "Relaxed requirements prescribed by Presidential Decree" in the proviso to Article 6 (1) 3 of the Act means requirements classified as follows:
1. Where a large shareholder falls under any of subparagraphs 1 through 3 of attached Table 1: He or she shall meet the requirements of subparagraph 1 (d) and (e) (i) and (iii) of the same Table only. In such cases, "for the latest five years" in subparagraph 1 (e) (i) of attached Table 1 shall be construed as a "large shareholder for the latest five years" and "punishment of a fine" as "punishment of a fine of 500 million won";
2. Where a large shareholder falls under any of subparagraph 4 or 5 (d) of attached Table 1: He or she shall meet the requirements of subparagraphs 1 (e) (i) and (iii) and 4 (d) of the same Table only. In such cases, "for the latest five years" in the subparagraph 1 (e) (i) of attached Table 1 shall be construed as a "large shareholder for the latest five years", "punishment of a fine" as "punishment of a fine of 500 million won", "for the latest three years" in subparagraph 4 (d) of the same Table as a "large shareholder for the latest three years", and the "fact that the relevant foreign corporation has been subjected to an administrative measure corresponding to a disposition not lighter than corporative warning or punished under a criminal case by not lighter than a punishment of a fine by a supervisory agency in its native country" as the "fact that the relevant foreign corporation has been punished under a criminal case by not lighter than a punishment of a fine of 500 million won by a judicial agency of its native country";
3. Where a large shareholder falls under subparagraph 5 (excluding item (d)) of attached Table 1: He or she shall meet the requirements of subparagraph 1 (e) (i) and (iii) of the same Table. In such cases, "for the latest five years" shall be construed as a "large shareholder for the latest five years" and "punishment of a fine" as "punishment of a fine of 500 million won".
(6) "Sound financial standing and social credibility prescribed by Presidential Decree" in Article 6 (3) 2 of the Act means those classified as follows: <Amended by Presidential Decree No. 27414, Jul. 28, 2016>
1. Sound financial standing: For the purpose of securing capability to pay insurance proceeds and managerial soundness, an insurance company shall satisfy the criteria for financial soundness determined and publicly notified by the Financial Services Commission;
2. Social credibility: An insurance company shall satisfy all of the following requirements: Provided, That cases where the gravity of violation, etc. is deemed negligible shall be excluded herefrom:
(a) It shall be free of any history of a criminal prosecution heavier than fines for the latest three years, for violation of statutes and regulations under Article 5 of the Enforcement Decree of the Act on Corporate Governance of Financial Companies (hereinafter referred to as “finance-related statutes and regulations”), the Monopoly Regulation and Fair Trade Act, or the Punishment of Tax Offenses Act;
(b) It shall not have impaired a sound credit system for the latest three years by default, etc.;
(c) It shall not have been designated as an insolvent financial institution under the Act on the Structural Improvement of the Financial Industry nor its authorization, permission or registration is revoked under finance-related statutes and regulations: Provided, That those adjudicated by the court to be irresponsible for the insolvency or those fulfilling the criteria determined and publicly notified by the Financial Services Commission by bearing the financial responsibility, etc. shall be excluded herefrom;
(d) The period classified as follows shall expire after it has been ordered to close its branches or other business offices or suspend all or some of its business, or has been subject to any heavier disposition by the Financial Services Commission, any foreign finance supervisory agency, etc., under finance-related statutes and regulations defined in subparagraph 7 of Article 2 of the Act on Corporate Governance of Financial Companies:
(i) Suspension of all business: Three years from the expiry date of the business suspension;
(ii) Suspension of some business: Two years from the expiry date of the business suspension;
(iii) Closedown of branches or other business offices, or suspension of all or some of their business: One year from the date of the relevant disposition.
(7) Where an insurance company partially modifies its license for the insurance business in order to upgrade the functions of computer facilities, to strengthen its security systems, or to perform similar services after it has obtained the license, it shall be deemed to have maintained its physical facilities in accordance with the main sentence of Article 6 (4) of the Act.
(8) "Cases prescribed by Presidential Decree" in the proviso to Article 6 (4) of the Act means inevitable cases for upgrading the efficiency of management, etc. of the relevant insurance company without impeding the protection of policyholders' interests, which fulfill all of the following requirements:
1. The protection of personal information shall not be interrupted;
2. There is no possibility that civil complaints are raised due to any delay in the provision of insurance services;
3. Reliable insurance statistics relating to insurance contracts shall be produced in a timely manner;
4. Any performance of supervisory or inspectional duties over the relevant insurance company shall not be impaired.
(9) The Financial Services Commission may determine and publicly notify the detailed standards for the requirements of paragraphs (1) through (8).
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 11 Deleted. <by Presidential Decree No. 27414, Jul. 28, 2016>
 Article 12 (Capital or Fund by Type of Insurance)
(1) The amount of capital or fund by type of insurance to be paid by an insurance company intending to sell only part of the insurance types under the proviso to Article 9 (1) of the Act shall be classified as follows:
1. Life insurance: 20 billion won;
2. Pension insurance (including retirement insurance): 20 billion won;
3. Fire insurance: 10 billion won;
4. Marine insurance (including aviation or transportation insurance): 15 billion won;
5. Automobile insurance: 20 billion won;
6. Surety insurance: 30 billion won;
7. Reinsurance: 30 billion won;
8. Liability insurance: 10 billion won;
9. Technology insurance: 5 billion won;
10. Title insurance: 5 billion won;
11. Injury insurance: 10 billion won;
12. Disease insurance: 10 billion won;
13. Nursing insurance: 10 billion won;
14. Types of insurance, other than subparagraphs 1 through 13: 5 billion won.
(2) Paragraph (1) 7 shall apply only to an insurance company which intends to specialize in reinsurance: Provided, That the same shall not apply to an insurance company intending to run reinsurance business for the types of insurance it is selling.
(3) Where an insurance company intends to sell two or more types of insurance among the types of insurance under the subparagraphs of paragraph (1), the sum of the amounts according to the classification under the subparagraphs of paragraph (1) shall be the capital or funds of the insurance company: Provided, That where the said sum exceeds 30 billion won, the capital or funds of the insurance company shall be 30 billion won.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 13 (Insurance Companies Specializing in Telemarketing)
(1) "Insurance company that solicits insurance contracts using a means of communication, such as telephone, mail, computer communications, etc., as prescribed by Presidential Decree" in Article 9 (2) of the Act means an insurance company that solicits not less than 90/100 of the total number of insurance contracts and insurance premiums by means of communication, such as telephone, mail, computer communications, etc. (hereinafter referred to as "insurance company specializing in telemarketing").
(2) Where an insurance company specializing in telemarketing has violated a solicitation ratio under paragraph (1), it shall be prohibited from soliciting insurance contracts by means, other than those under paragraph (1), until the said ratio is fulfilled.
(3) Matters necessary for solicitations by means of communication, such as standards for calculating the solicitation ratio, etc. shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 14 (Operating Funds of Foreign Insurers)
The operating funds of foreign insurers under Article 9 (3) of the Act shall not be less than three billion won.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 15 (Types of Insurance Allowed for Concurrent Operation)
(1) "Types of insurance prescribed by Presidential Decree" in subparagraph 2 of Article 10 of the Act means any of the following insurances: Provided, That an insurance company that sells only some of the types of insurance constituting the non-life insurance business under Article 4 (1) 2 of the Act (excluding reinsurance and surety insurance; hereafter in this Article, the same shall apply) and an insurance company that operates only Type 3 insurance business, shall be prohibited from concurrent operation: <Amended by Presidential Decree No. 23987, Jul. 24, 2012>
2. Insurance contracts under Article 29 (2) of the Act on the Guarantee of Workers' Retirement Benefits, and retirement insurance contracts under Article 2 (1) of the Addenda to the Act on the Guarantee of Workers' Retirement Benefits.
(2) "Insurance added to the types of Type 3 insurance in accordance with the standards prescribed by Presidential Decree" in subparagraph 3 of Article 10 of the Act means insurance that covers death caused by a disease in the form of special agreement of a Type 3 insurance and which satisfies all of the following requirements: <Amended by Presidential Decree No. 28945, Jun. 5, 2018>
1. Insurance maturity shall be at 80 or younger years old;
2. Upper limit of the insurance shall be 200 million won per person;
3. Maturity repayment shall not exceed the total sum of paid premiums.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 16 (Scope of Concurrent Business)
(1) "Finance business prescribed by finance-related statutes and regulations that are prescribed by Presidential Decree" in subparagraph 1 of Article 11 of the Act means any of the following:
1. Management of securitized assets under the Asset-Backed Securitization Act;
2. Management of securitized assets under the Act on Special-Purpose Companies for Mortgage-Backed Bonds;
3. Management of credit-backed assets under the Korea Housing Finance Corporation Act;
4. Electronic funds transfer services under Article 28 (2) 1 of the Electronic Financial Transactions Act (excluding electronic funds transfer services provided by a corporation participating in the payment gateway system under subparagraph 6 of Article 2 of the same Act (hereafter referred to in this subparagraph as "payment gateway system") and electronic funds transfer services that pass through corporations participating in the payment gateway system for the purpose of balancing the accounts or settlement of funds following the electronic funds transfer services of an insurance company).
(2) "Finance business prescribed by Presidential Decree" in subparagraph 2 of Article 11 of the Act means any of the following: <Amended by Presidential Decree No. 23987, Jul. 24, 2012>
5. Investment trading business of collective investment securities under Article 9 (21) of the Financial Investment Services and Capital Markets Act;
6. Investment brokerage business of collective investment securities under Article 9 (21) of the Financial Investment Services and Capital Markets Act;
7. Foreign exchange affairs under subparagraph 16 of Article 3 of the Foreign Exchange Transactions Act;
8. Business of a retirement pension trustee under subparagraph 13 of Article 2 of the Act on the Guarantee of Workers' Retirement Benefits.
(3) "Finance business prescribed by Presidential Decree" in subparagraph 3 of Article 11 of the Act means business of other financial institutions which is entrusted as determined and publicly notified by the Financial Services Commission, because it is not deemed to be an essential element in the methods for or in the process of carrying on the business nor requires any important decision making.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 16-2 (Public Notice of Incidental Business)
(1) Where an insurance company reports on business incidental to the insurance business under Article 11-2 (1) of the Act (hereinafter referred to as "incidental business"), the Financial Services Commission shall give public notice by posting the following matters on its website, etc. within seven days from the date of the report:
1. Name of the insurance company;
2. Date of reporting incidental business;
3. Scheduled date of commencement of incidental business;
4. Details of incidental business;
5. Other matters, the public notice of which is deemed necessary for the protection of policyholders and which are determined and publicly notified by the Financial Services Commission.
(2) Where the Financial Services Commission issues an order to restrict incidental business or correct it under Article 11-2 (2) of the Act, it shall give public notice by posting the relevant details and reasons on its website, etc.
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 17 (Accounting of Concurrent Business and Incidental Business)
(1) Where an insurance company runs any business referred to in Article 16 (1) 1 through 3 and (2) 2 through 4 and incidental business (applicable only to the business whose turnover in the immediately preceding business year exceeds the amount corresponding to 1/1,000 of earned premiums of the relevant insurance company or one billion won, whichever is larger) the assets, liabilities, earnings, and expenditures belonging to the relevant business shall be accounted separately from the insurance business under Article 11-3 of the Act. <Amended by Presidential Decree No. 27080, Apr. 1, 2016>
(2) Other necessary matters, such as detailed standards for accounting under paragraph (1), shall be determined and publicly notified by the Financial Services Commission. <Amended by Presidential Decree No. 27080, Apr. 1, 2016>
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 18 Deleted. <by Presidential Decree No. 22637, Jan. 24, 2011>
CHAPTER III INSURANCE COMPANIES
 Articles 19 through 23 Deleted. <by Presidential Decree No. 27414, Jul. 28, 2016>
 Article 23-2 (Reduction of Capital)
"Reduction of capital as prescribed by Presidential Decree" in Article 18 (2) of the Act means the actual reduction of capital due to the reduction of the value or number of stocks.
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 24 Deleted. <by Presidential Decree No. 27414, Jul. 28, 2016>
 Article 25 (Documents to be Appended to Written Application for Registration of Incorporation)
When a mutual company intends to register its incorporation under Article 40 of the Act, it shall append the following documents to the application for registration:
1. Articles of incorporation;
2. Roster of members;
3. When recruiting members, the written application of each member;
4. Search reports by directors, auditors or inspectors, and documents annexed thereto;
5. Minutes of the inaugural general meeting;
6. Minutes of the board of directors with regard to the representative director.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 25-2 (Holding of Assets by Local Branches of Foreign Insurers)
Local branches of foreign insurers shall hold any of the following assets in the Republic of Korea, as prescribed by Article 75 (1) of the Act: <Amended by Presidential Decree No. 25311, Apr. 15, 2014>
1. Cash or savings, savings by installments, or installment deposits in domestic financial institutions;
2. Securities deposited or kept in the Republic of Korea;
3. Loans to persons in the Republic of Korea, or other credits;
4. Fixed assets in the Republic of Korea;
5. Deferred acquisition costs;
6. Reinsured assets under Article 63 (2) that are reserved in the Republic of Korea;
7. Assets determined and publicly notified by the Financial Services Commission, which are similar to assets referred to in subparagraphs 1 through 6.
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
CHAPTER IV SOLICITATION
 Article 26 (Persons Entitled to Be Engaged in Solicitation)
(1) Any of the following entities among insurance agencies, etc. of financial institutions prescribed in Article 91 (2) of the Act (hereinafter referred to as "insurance agencies, etc. of financial institutions") may permit persons, other than its executive officers or employees, to engage in insurance solicitation or to provide consultation or introduction on the conclusion of insurance contracts, and pay consideration for such consultation or introduction, pursuant to Article 83 (2) of the Act: <Amended by Presidential Decree No. 23479, Dec. 31, 2011; Presidential Decree No. 28152, Jun. 27, 2017>
1. A credit card business operator referred to in Article 40 (1) 3;
2. A cooperative referred to in Article 40 (1) 4 (limited to solicitation of insurance products sold by Nonghyup Life Insurance Co., Ltd. or Nonghyup Property and Casualty Insurance Co., Ltd. incorporated under Article 161-12 of the Agricultural Cooperatives Act)
(2) Detailed scope of persons, other than executive officers or employees belonging to cooperatives that can permit such persons to engage in insurance solicitation or to provide consultation or introduction on the conclusion of insurance contracts pursuant to paragraph (1) 2, as insurance solicitors shall be determined and publicly notified by the Financial Services Commission. <Newly Inserted by Presidential Decree No. 23479, Dec. 31, 2011>
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
[Paragraphs (1) 2 and (2) of this Article shall be effective until Mar. 1, 2017 under the provisions of Article 2 of the Addenda of Presidential Decree No. 23479, Dec. 31, 2011.]
 Article 27 (Classification of Insurance Solicitors and Requirements for Registration)
(1) Insurance solicitors under Article 84 of the Act shall be classified into life insurance solicitors, non-life insurance solicitors [including non-life insurance solicitors belonging to simple non-life insurance agencies (hereinafter referred to as "simple non-life insurance solicitor") under Article 30 (1); hereinafter the same shall apply], and Type 3 insurance solicitors. <Amended by Presidential Decree No. 26040, Jan. 6, 2015; Presidential Decree No. 28945, Jun. 5, 2018>
(2) Requirements for the registration of insurance solicitors under paragraph (1) shall be as listed in attached Table 3.
(3) "Person prescribed by Presidential Decree" in Article 84 (2) 7 of the Act means any of the following persons:
1. An executive officer subject to suspension of duty or a heavier disposition;
2. An employee subject to suspension of duty or a heavier disposition;
3. A person who has resigned or retired prior to the disposition referred to in subparagraph 1 or 2.
(4) Methods of registering insurance solicitors and other matters necessary for the registration of insurance solicitors shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 28 (Scope of Insurance Solicitors' Business)
(1) The scope of insurance solicitors' business shall be as follows: <Amended by Presidential Decree No. 26040, Jan. 6, 2015; Presidential Decree No. 28945, Jun. 5, 2018>
1. Life insurance solicitors: Insurance types under Article 4 (1) 1 of the Act;
2. Non-life insurance solicitors: Insurance types under Article 4 (1) 2 of the Act: Provided, That the scope of business of simple non-life insurance solicitors shall be the types of insurance determined and publicly notified by the Financial Services Commission in consideration of the connectivity, etc. with the main business of simple non-life insurance agencies under Article 30 (1);
3. Type 3 insurance solicitors: Insurance types under Article 4 (1) 3 of the Act.
(2) Matters necessary for insurance solicitors' business, other than those prescribed in paragraph (1), shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 29 (Cross-Solicitation by Insurance Solicitors)
(1) When an insurance solicitor intends, under Article 85 (3) of the Act, to engage in insurance solicitation for any insurance company, other than the insurance company to which he or she belongs (hereafter in this Article, referred to as "cross-solicitation"), he or she shall submit the documents stating the matters prescribed by the Financial Services Commission, such as the name, etc. of the insurance company for which he or she intends to make a cross-solicitation, to an insurance association established under Article 175 of the Act (hereinafter referred to as "insurance association").
(2) An insurance solicitor intending to make a cross-solicitation (hereafter in this Article, referred to as "insurance solicitor for cross-solicitation") shall file for registration with the insurance association after meeting the registration requirements pursuant to the classifications under Article 27 (1) and (2) in accordance with the types of insurance contracts intended for solicitation.
(3) An insurance company to which an insurance solicitor for cross-solicitation belongs or which has entrusted cross-solicitation shall be prohibited from committing any of the following conducts pursuant to Article 85 (4) of the Act:
1. Persuading an insurance solicitor for cross-solicitation to convert to an insurance solicitor belonging to the insurance company;
2. Making a promise to an insurance solicitor for cross-solicitation that consideration is to be paid in addition to fees and allowances set by the insurance company if he or she engages in solicitation for the insurance company, or actually paying such;
3. Persuading an insurance solicitor for cross-solicitation to treat any insurance contract solicited for another insurance company as the insurance contract for the insurance company;
4. Rendering to an insurance solicitor for cross-solicitation any disadvantages, such as the termination of a consignment contract or restriction on the scope of consignment, without justifiable grounds;
5. Restricting or obstructing cross-solicitation, such as changing the business office to which an insurance solicitor for cross-solicitation belongs, or changing the managers of solicited contracts, etc.;
6. Other conducts determined by Ordinance of the Prime Minister for protecting policyholders and maintaining the soliciting order.
(4) Insurance solicitors for cross-solicitation shall be prohibited from committing any of the following conducts:
1. Furnishing information on a specific insurance company which they have become aware of in the course of performing their duties, to any other insurance company;
2. Engaging in solicitation for only one insurance company among insurance companies which have entrusted solicitation, such as persuading the conclusion of insurance contracts with other insurance companies in contradiction to the intent of the persons desiring to conclude insurance contracts;
3. Requesting an insurance company which has entrusted solicitation to pay consideration in addition to fees and allowances set by the insurance company;
4. Other conducts determined by Ordinance of the Prime Minister for protecting policyholders and maintaining the soliciting order.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 29-2 (Training of Insurance Solicitors)
(1) An insurance company, insurance agency or certified insurance broker (hereafter referred to in this Article as "insurance company, etc.") shall, under Article 85-2 (1) of the Act, provide its insurance solicitors with training in accordance with the standards set forth in attached Table 4 within six months after the lapse of every two years after filing for registration under Article 84 of the Act.
(2) A non-corporate insurance agency or non-corporate certified insurance broker shall, under Article 85-2 (2) of the Act, receive training in accordance with the standards set forth in attached Table 4 within six months after the lapse of every two years after filing for registration under Article 87 or 89 of the Act.
(3) An insurance association, insurance company, etc. may establish and operate organizations necessary for the efficient implementation of training under paragraphs (1) and (2).
(4) Detailed standards for, methods of, and procedures for training under paragraphs (1) and (2) and matters concerning the establishment and operation of organizations under paragraph (3) shall be determined and publicly notified by the Financial Services Commission. <Amended by Presidential Decree No. 23479, Dec. 31, 2011>
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 29-3 (Measures to Protect Customer Service Employees)
“Measures prescribed by Presidential Decree, including legal measures” in Article 85-4 (1) 4 of the Act means the following:
1. Where verbal abuses, sexual harassment, assault, etc. (hereinafter referred to as “verbal abuses, etc.”) committed by a customer are deemed to violate criminal punishment provisions of any applicable Act and there is a request from an employee who suffers damage inflicted by such abusive act: Filing a criminal charge with the competent investigative authority, etc.;
2. Where a customer’s verbal abuses, etc. do not violate any criminal punishment provision but it is deemed necessary to take measures considering the extent of the damage the relevant employee suffers due to such act and the possibility of future damage to the employee at issue as well as other employees: Requesting the competent investigative authority, etc. to take necessary measures;
3. Offering administrative and procedural assistance necessary for an employee to take measures in person, such as filing a criminal complaint, a criminal charge, or a claim for damages, with the competent investigative authority, etc. against a customer who commits any act of verbal abuses, etc.;
4. Offering education to prevent verbal abuses, etc. of customers or respond thereto, such as behavioral guidelines;
5. Other measures determined and publicly notified by the Financial Services Commission in order to protect employees from verbal abuses, etc. by customers.
[This Article Newly Inserted by Presidential Decree No. 27288, Jun. 28, 2016]
 Article 30 (Classification of Insurance Agencies and Requirements for Registration)
(1) Insurance agencies under Article 87 of the Act shall be classified into individual insurance agencies (hereinafter referred to as "individual insurance agencies") and corporate insurance agencies (hereinafter referred to as "corporate insurance agencies"), and each of them shall be classified into life insurance agencies, non-life insurance agencies [including a non-life insurance agency (hereinafter referred to as "simple non-life insurance agency") that solicits insurance products related to goods or services sold, provided, or brokered by a person whose main business is the sale of goods, the provision of services, or the brokerage of goods or services through a cyber-mall (referring to a cyber-mall defined in subparagraph 4 of Article 2 of the Act on the Consumer Protection in Electronic Commerce, Etc.; hereinafter the same shall apply); hereinafter the same shall apply], and Type 3 insurance agencies. <Amended by Presidential Decree No. 26040, Jan. 6, 2015; Presidential Decree No. 28945, Jun. 5, 2018>
(2) Requirements for registration of insurance agencies pursuant to paragraph (1) shall be as listed in attached Table 3.
(3) Methods of registering insurance agencies and other matters necessary for the registration of insurance agencies shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 31 (Scope of Insurance Agencies' Business)
(1) The scope of insurance agencies' business [excluding the financial institutions registered as insurance agencies under Article 91 (1) of the Act (hereinafter referred to as "insurance agencies of a financial institution"); hereafter the same shall apply in this Article] shall be as follows: <Amended by Presidential Decree No. 26040, Jan. 6, 2015; Presidential Decree No. 28945, Jun. 5, 2018>
1. Life insurance agencies: Insurance types under Article 4 (1) 1 of the Act;
2. Non-life insurance agencies: Insurance types under Article 4 (1) 2 of the Act: Provided, That the scope of business of simple non-life insurance agencies shall be the types of insurance which cover perils occurring in the daily life of an individual or household and which are determined and publicly notified by the Financial Services Commission in consideration of the connectivity, etc. with goods or services sold, provided, or brokered through simple non-life insurance agencies;
3. Type 3 insurance agencies: Insurance types under Article 4 (1) 3 of the Act.
(2) Matters necessary for the insurance agencies' business other than those prescribed in paragraph (1) shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 32 (Restriction on Registration of Insurance Agencies)
(1) "Person prescribed by Presidential Decree" in Article 87 (2) 5 of the Act means any of the following persons: <Amended by Presidential Decree No. 28945, Jun. 5, 2018>
1. A corporation or organization which is composed of the State agencies, institutions established under special Acts, and the retirees of the said institutions;
2. A corporation or organization over which institutions under subparagraph 1, financial holding companies under the Financial Holding Companies Act, financial institutions falling under the subparagraphs of Article 91 (1) of the Act (excluding the insurance companies which have obtained authorization for the concurrent operation of investment trading business or investment brokerage business under the Financial Investment Services and Capital Markets Act) are deemed to exercise de facto control pursuant to the methods and criteria set by the Financial Services Commission, by contribution, investment, etc.;
3. An institution referred to in any subparagraph of Article 38 of the Act on the Establishment, Etc. of Financial Services Commission (excluding financial institutions under the subparagraphs of Article 91 (1) of the Act);
4. An executive officer or employee of the corporation, organization or institution referred to in subparagraphs 1 through 3;
5. Any other person deemed by the Financial Services Commission to be obstructive to the establishment of order in fair insurance trading and to the fosterage of insurance agencies, if he or she operates an insurance agency.
(2) Notwithstanding paragraph (1) 3, an electronic financial business entity defined in subparagraph 4 of Article 2 of the Electronic Financial Transactions Act (excluding financial institutions under the subparagraphs of Article 91 (1) of the Act) may be registered as a simple non-life insurance agency. <Newly Inserted by Presidential Decree No. 28945, Jun. 5, 2018>
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 33 (Business Bonds of Insurance Agencies)
(1) The business bonds of an insurance agency under Article 87 (4) of the Act may be determined by consultation between the insurance company and the insurance agency within 100 million won (300 million won in cases of corporate insurance agencies): Provided, That the insurance agency of a financial institution shall be exempted from the obligation to deposit business bonds.
(2) Where the Financial Services Commission deems it necessary for protecting policyholders and maintaining the soliciting order, it may issue an order to increase the amount of business bonds, notwithstanding paragraph (1).
(3) No person whose insurance agency is registered shall conduct his or her business unless he or she deposits a business bond under paragraphs (1) and (2) with an institution designated by the Financial Services Commission (hereinafter referred to as "depository institution of business bonds"). <Amended by Presidential Decree No. 25311, Apr. 15, 2014>
(4) Business bonds under paragraphs (1) and (2) may be deposited in cash or with any of the following securities, etc.: <Amended by Presidential Decree No. 24697, Aug. 27, 2013>
1. Securities recognized by the Financial Services Commission among the securities listed in the Exchange;
2. Surety insurance policies recognized by the Financial Services Commission;
3. Payment guarantee letters issued by an institution recognized by the Financial Services Commission.
(5) When securities, etc. deposited pursuant to paragraph (4) fall short of the amount referred to in paragraphs (1) and (2) due to fluctuations in their appraised value, or the insurance period expires, a person whose insurance agency is registered shall make up for the insufficient amount or deposit a business bond under paragraphs (1) and (2) again within a period set by the Financial Services Commission. <Amended by Presidential Decree No. 25311, Apr. 15, 2014>
(6) Methods of appraising the securities, etc. deposited as prescribed by paragraph (4) and determination of the appraised value shall be prescribed by the Governor of the Financial Supervisory Service under the Act on the Establishment of Financial Services Commission (hereinafter referred to as the “Governor of the Financial Supervisory Service”). <Amended by Presidential Decree No. 27414, Jul. 28, 2016>
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 33-2 (Business Standards of Insurance Agencies)
(1) Any corporate insurance agency having not less than 100 insurance solicitors, which is determined and publicly notified by the Financial Services Commission, shall satisfy all of the following requirements under Article 87 (4) of the Act:
1. It shall formulate a business guideline for the purpose of complying with statutes and regulations and protecting policyholders;
2. It shall have one or more executive officers or employees who shall inspect whether the business guideline under subparagraph 1 is observed and investigate violations thereof;
3. It shall be equipped with sufficient physical facilities, such as computer facilities, etc. that are necessary for the protection of policyholders and the performance of insurance solicitation business.
(2) Where an insurance agency or executive officers, employees and insurance solicitors belonging thereto use the trade name of the insurance agency in the materials or advertisements set forth in the following subparagraphs, they shall use the words "insurance agency" in the name of the insurance agency:
1. Materials to be furnished for the purpose of concluding insurance contracts or insurance solicitation, such as insurance prospectus under Article 95 (1) of the Act (hereinafter referred to as "insurance prospectus");
2. Advertisements of insurance products.
(3) Each insurance agency shall retain and manage the consignment contracts entered into with insurance solicitors belonging thereto, accounting books, etc. relating to the revenue and expenditure.
(4) Any simple non-life insurance agency shall observe the following matters: <Newly Inserted by Presidential Decree No. 28945, Jun. 5, 2018>
1. It shall not compel a consumer to take out an insurance policy on the condition of selling, providing, or brokering goods or services;
2. It shall guarantee a consumer the opportunity to conclude or cancel an insurance contract or be covered by an insurance contract, separately from goods or services it sells, provides, or brokers;
3. Where it concludes a group insurance contract (applicable only to where a policyholder has no insurable interest and the insured fully bears premiums; hereafter the same shall apply in this Article), it shall provide a potential policyholder with an insurance prospectus containing the following matters in advance in writing or by text-message, e-mail, facsimile or other means:
(a) Matters prescribed in Article 42-2 (1) 1 through 11;
(b) Matters concerning the methods and procedures for being excluded from the insured of a group insurance contract;
(c) Matters concerning the opportunity guaranteed to a consumer pursuant to subparagraph 2;
(d) Matters determined and publicly notified by the Financial Services Commission for the protection of consumers such as policyholders;
4. It shall ensure that no difference in premiums, conditions of payment of insurance proceeds, amounts of payments of insurance proceeds, etc. occurs between cases of concluding an insurance contract simultaneously with the purchase of goods or services and cases of concluding an insurance contract only;
5. In cases of a simple non-life insurance agency registered pursuant to Article 32 (2), it shall conduct the following acts only through a website (including a place created in a virtual space through applications used in a mobile communications terminal device and other similar application programs):
(a) Soliciting an insurance contract;
(b) Forming an organization composed of insured persons for a group insurance contract.
(5) Necessary matters concerning the business standards of insurance agencies, other than those prescribed in paragraphs (1) through (4), shall be determined and publicly notified by the Financial Services Commission. <Amended by Presidential Decree No. 28945, Jun. 5, 2018>
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 33-3 (Qualifications for Executive Officers of Corporate Insurance Agencies)
"Person prescribed by Presidential Decree" in the part other than the subparagraphs of Article 87-2 (1) of the Act means a person defined in any subparagraph of Article 401-2 (1) of the Commercial Act.
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 33-4 (Scope of Business of Corporate Insurance Agencies)
(1) No corporate insurance agency shall engage in any of the following affairs, pursuant to Article 87-3 (1) of the Act:
1. Multi-level marketing business under the Act on Door-to-Door Sales, Etc.;
2. Credit business or credit brokerage business under the Act on Registration of Credit Business, Etc. and Protection of Finance Users.
(2) "Significant business matters prescribed by Presidential Decree, such as management status, etc." in Article 87-3 (2) of the Act means any of the following matters:
1. Types of business being operated;
2. Matters concerning organization for solicitation;
3. Matters concerning the performance results of solicitation;
4. Other matters that the Financial Services Commission determines and publicly notifies for the protection of policyholders.
(3) For a public notice under Article 87-3 (2) of the Act, an insurance company shall provide materials necessary for the public notice to the corporate insurance agencies with which consignment contracts for solicitation have been concluded, and the insurance company or insurance association may, on behalf of the corporate insurance agencies, inform the Financial Services Commission of the matters referred to in the subparagraphs of paragraph (2).
(4) Each corporate insurance agency shall, under Article 87-3 (2) of the Act, give public notice by posting the matters referred to in the subparagraphs of paragraph (2) on the website of the insurance association every six months.
(5) Necessary matters concerning the methods of and procedures for giving public notice of corporate insurance agencies, other than those prescribed in paragraphs (2) through (4), shall be determined and publicly notified by the Financial Services Commission.
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 34 (Classification of Certified Insurance Brokers and Registration Requirements)
(1) Certified insurance brokers under Article 89 of the Act shall be classified into certified individual insurance brokers (hereinafter referred to as "individual insurance brokers") and certified corporate insurance brokers (hereinafter referred to as "corporate insurance brokers"), and each of them shall be classified into life insurance brokers, non-life insurance brokers and Type 3 insurance brokers.
(2) Requirements for registration of certified insurance brokers under paragraph (1) shall be as listed in attached Table 3.
(3) Methods of filing for the registration of certified insurance brokers and other matters necessary for the registration thereof shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 35 (Scope of Certified Insurance Brokers' Business)
The scope of certified insurance brokers' business (excluding the financial institutions registered as certified insurance brokers under Article 91 (1) of the Act (hereinafter referred to as "insurance brokers of financial institutions")) shall be as follows:
1. Certified life insurance brokers: Insurance types under Article 4 (1) 1 of the Act and their reinsurance;
2. Certified non-life insurance brokers: Insurance types under Article 4 (1) 2 of the Act and their reinsurance;
3. Certified Type 3 insurance brokers: Insurance types under Article 4 (1) 3 of the Act and their reinsurance.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 36 (Business Standards for Certified Insurance Brokers)
(1) Corporate insurance brokers determined and publicly notified by the Financial Services Commission under Article 89 (4) of the Act, shall meet all of the following requirements:
1. They shall formulate a business guideline for the purpose of complying with statutes and protecting policyholders;
2. They shall have one or more executive officers or employees who shall inspect whether the business guideline under subparagraph 1 is complied with and investigate violations thereof;
3. They shall be equipped with sufficient physical facilities, such as computer facilities, etc. that are necessary for the protection of policyholders and the performance of insurance solicitation business.
(2) Where a certified insurance broker or executive officers, employees and insurance solicitors belonging thereto use a trade name of the certified insurance broker in the materials or advertisements set forth in the following subparagraphs, they shall use the words "certified insurance broker" in the name of the certified insurance broker:
1. Materials to be furnished to consumers for the purpose of brokerage of insurance contracts, such as insurance prospectus;
2. Advertisements of insurance products.
(3) Each certified insurance broker shall retain and manage the consignment contracts entered into with insurance solicitors belonging thereto, accounting books, etc. relating to the revenue and expenditure.
(4) Necessary matters concerning the business standards for certified insurance brokers, other than those prescribed in paragraphs (1) through (3), shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 37 (Business Bonds of Certified Insurance Brokers)
(1) The business bonds of certified insurance brokers under Article 89 (3) of the Act shall be at least 100 million won in cases of individuals, and at least 300 million won in cases of corporation; the specific amount shall be prescribed by Ordinance of the Prime Minister, by taking account of the business scale of the relevant certified insurance brokers: Provided, That the certified insurance brokers of financial institutions shall be exempted from the obligation to deposit business bonds.
(2) When the Financial Services Commission deems it necessary for protecting policyholders and maintaining the soliciting order, it may issue an order to increase the business bonds within five times the gross revenue related to the insurance brokerages in the latest business year, notwithstanding paragraph (1).
(3) Where a certified insurance broker falls under any of the following subparagraphs, the Financial Services Commission shall fully or partially refund the business bonds, as prescribed by Ordinance of the Prime Minister:
1. Where a certified insurance broker has discontinued the operation of insurance brokerage business;
2. Where an individual that is a certified insurance broker has deceased;
3. Where a corporation that is a certified insurance broker has become bankrupt or dissolved, or extinguished due to a merger;
4. Where the registration has been revoked under Article 90 (1) of the Act;
5. Where the already-deposited business bonds exceed the business bonds to be deposited due to changes in business situation, etc.
(4) Article 33 (3) through (6) shall apply mutatis mutandis to the methods, etc. of depositing business bonds by a certified insurance broker. <Amended by Presidential Decree No. 25311, Apr. 15, 2014>
(5) Matters necessary for the business bonds of a certified insurance broker, such as the methods of calculating business bonds under paragraph (1), shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 38 (Compensation for Losses by Certified Insurance Brokers)
(1) Policyholders, etc. who have suffered from losses in relation to the brokering acts for concluding insurance contracts by a certified insurance broker may file an application for the payment of compensation with the depository institution of business bonds within the limit of business bonds of the relevant certified insurance broker.
(2) When the head of a depository institution of business bonds has received an application for the payment of compensation under paragraph (1), he or she may fully or partially pay the amount of compensation from the business bonds of the relevant certified insurance broker according to the procedures set by Ordinance of the Prime Minister.
(3) With regard to the policyholders, etc. who have fully or partially received the amount of compensation from the head of a depository institution of business bonds under paragraph (2), a certified insurance broker shall be exempted from liability for compensation up to the amount paid for compensation.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 38-2 (Scope of Business of Certified Corporate Insurance Brokers)
(1) No corporate insurance broker shall, under Article 89-3 (1) of the Act, engage in any business described in the subparagraphs of Article 33-4 (1).
(2) "Significant business matters prescribed by Presidential Decree, such as management status, etc." in Article 89-3 (2) of the Act means any of the following business matters:
1. Types of business being operated;
2. Matters concerning organizations for solicitation;
3. Matters concerning the performance results of solicitation;
4. Other matters that the Financial Services Commission determines and publicly notifies for the protection of policyholders.
(3) For public notice under Article 89-3 (2) of the Act, an insurance company shall provide the corporate insurance broker which has brokered the conclusion of insurance contracts with the materials necessary for public notice.
(4) A corporate insurance broker shall, under Article 89-3 (2) of the Act, give public notice by posting matters described in the subparagraphs of paragraph (2) on the website, etc. of the corporate insurance broker every six months.
(5) Necessary matters concerning the methods of and procedures for giving public notice by corporate insurance brokers, other than those prescribed in paragraphs (2) through (4), shall be determined and publicly notified by the Financial Services Commission.
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 39 (Exception to Revocation of Registration for Certified Insurance Brokers)
(1) "Corporation prescribed by Presidential Decree" in the proviso to Article 90 (1) 1 of the Act means a corporation whose liabilities have come to exceed its assets due to changes in the property status of a certified insurance broker, on account of the incurrence of investment costs following the commencement of the said broker's business, radical changes in the business environment, and other reasons not attributable to the said broker, and which has obtained approval from the Financial Services Commission on condition that it shall improve the situation within six months instead of the revocation of registration.
(2) Where the liabilities of the relevant certified insurance broker exceed its assets even though six months have passed after the date of approval under paragraph (1), the Financial Services Commission shall promptly revoke its registration.
(3) Necessary matters concerning the methods of and procedures for approval under paragraph (1) shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 40 (Business Standards for Insurance Agencies of Financial Institutions)
(1) "Any other institution prescribed by Presidential Decree" in Article 91 (1) 4 of the Act means any of the following institutions: <Amended by Presidential Decree No. 23479, Dec. 31, 2011; Presidential Decree 23496, Jan. 6, 2012>
1. Korea Development Bank established under the Korea Development Bank Act;
2. Industrial Bank of Korea established under the Industrial Bank of Korea Act;
2-2. Deleted; <by Presidential Decree 23826, Jun. 1, 2012>
3. Credit card business operators (excluding concurrent loan service providers; hereinafter the same shall apply) who have been licensed under the Specialized Credit Financial Business Act;
4. Cooperatives and Nonghyup Banks incorporated under the Agricultural Cooperatives Act.
(2) The scope of insurance products which may be sold by insurance agencies, etc. of financial institutions under Article 91 (2) of the Act shall be as listed in attached Table 5: Provided, That the scope of insurance products which may be sold by credit card business operators under paragraph (1) 3 is the same as that of insurance products which may be sold by insurance agencies other than insurance agencies, etc. of financial institutions, and insurance products which may be solicited by cooperatives referred to in paragraph (1) 4 are insurance products deemed permitted under Article 15 (8) of the Addenda to the partially amended Agricultural Cooperatives Act (Act No. 10522) and the detailed scope of such insurance products shall be determined and publicly notified by the Financial Services Commission. <Amended by Presidential Decree No. 23479, Dec. 31, 2011>
(3) Insurance agencies, etc. of financial institutions shall engage in solicitation by any of the following methods: Provided, That the methods referred to in subparagraph 3 shall be used only by credit card business operators under paragraph (1) 3:
1. Methods of engaging in solicitation by directly interviewing with policyholders at the designated places in the stores of the relevant insurance agencies, etc. of financial institutions under Article 100 (2) 3 of the Act;
2. Methods of engaging in solicitation by introducing or explaining insurance products to many unspecified persons by utilizing Internet websites;
3. Methods of engaging in solicitation by means of communication, such as telephone, mail, computer communications, etc. pursuant to Article 96 (1) of the Act.
(4) Insurance agencies, etc. of financial institutions (excluding credit card business operators under paragraph (1) 3) may permit not more than two of their executive officers and employees who were registered under Article 84 (1) of the Act for each store, such as the main office or branches of the relevant insurance agencies, etc. of financial institutions, to engage in solicitation (excluding any person qualified as an insurance solicitor and employed under the criteria and methods as provided by the Financial Services Commission).
(5) No person engaged in solicitation at an insurance agency, etc. of a financial institution shall deal with business which is likely to cause unfair solicitation, such as loan, etc.
(6) The sales amount of the products of one life insurance company or one non-life insurance company, which may be solicited by an insurance agency, etc. of a financial institution (applicable only to an institution, the total amount of assets as of the end of the latest business year of which is not less than two trillion won), shall not exceed 25/100 (33/100 in case of calculation by aggregating the sales amount of products of an insurance company under paragraph (7)) of the gross sales amount of the products of either of life insurance companies or non-life insurance companies, which are newly solicited by the relevant insurance agency, etc. of the financial institution for each business year.
(7) When computing the sales amount of the products of one insurance company under paragraph (6), the sales amount of the products of an insurance company which has concluded an insurance agency contract with an insurance agency of a financial institution, etc. (hereafter referred to in this Article as "contracted insurance company") and that of the products of an insurance company having the following relationship with the contracted insurance company shall be aggregated:
1. An insurance company whose largest stockholder is the same as the largest stockholder of the contracted insurance company;
2. An insurance company, 15/100 or more of whose equity shares are owned by an insurance agency, etc. of a financial institution having 15/100 or more of equity shares of the contracted insurance company;
3. An insurance company, 15/100 or more of whose equity shares are owned by the holding company of an insurance agency, etc. of a financial institution having 15/100 or more of equity shares of the contracted insurance company;
4. An insurance company which is in such relationship as determined and publicly notified by the Financial Services Commission and which is set forth in any of subparagraphs 1 through 3.
(8) Insurance agencies, etc. of financial institutions shall post the ratio of solicitation fees applicable to the relevant financial institutions on their store windows and Internet websites which make solicitation; insurance companies shall compare and give public notice of the ratio of solicitation fees of the insurance agencies, etc. of financial institutions which have been entrusted with solicitation; and the insurance association shall compare and give public notice of the ratio of solicitation fees of insurance agencies, etc. of all financial institutions, respectively.
(9) Insurance agencies, etc. of financial institutions shall explain each of the following matters to policyholders when making representation for or brokering the conclusion of insurance contracts under conditions determined and publicly notified by the Financial Services Commission:
1. Major coverage of the insurance contracts which they represent or broker;
2. Refund money of the insurance contracts which they represent or broker;
3. Other matters necessary to prevent an incomplete sale, which are determined and publicly notified by the Financial Services Commission.
(10) Detailed standards, methods, etc. pertaining to the provisions of paragraphs (2) through (9), and other matters necessary for solicitation by insurance agencies, etc. of financial institutions shall be determined and publicly notified by the Financial Services Commission: Provided, That the same shall not apply to matters regulated in statutes and regulations related to consumers, such as the Act on the Consumer Protection in Electronic Commerce.
(11) The Governor of the Financial Supervisory Service shall prepare a report on the gross amount of solicitation of insurance agencies, etc. of financial institutions under paragraph (6) and the ratio of solicitation fees under paragraph (8) for each business year of insurance agencies, etc. of financial institutions.
(12) Paragraph (3), (4) or (6) shall not apply where the cooperatives referred to in paragraph (1) 4 solicit the following insurance products to farmers: <Newly Inserted by Presidential Decree No. 23479, Dec. 31, 2011>
1. Agricultural and fishery disaster insurance defined in subparagraph 2 of Article 2 of the Agricultural and Fishery Disaster Insurance Act;
2. Insurance products determined and publicly notified by the Financial Services Commission, the premiums of which are partially subsidized by the State or local governments to enhance the welfare of farmers and fishermen defined in subparagraph 3 of Article 3 of the Special Act on Quality Improvement of Life of Farmers and Fishers and Development Promotion of Agricultural and Fishing Villages and to facilitate the development of agricultural or fishing villages.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 41 (Duties of Certified Insurance Brokers)
(1) Matters to be entered in books by a certified insurance broker under Article 92 (1) of the Act shall be as follows:
1. Matters to be entered in contractual documents prepared and delivered under Article 96 of the Commercial Act (hereinafter referred to as "contractual documents"), which are determined and publicly notified by the Financial Services Commission;
2. Commissions, remunerations and other consideration received by the certified insurance broker in connection with the brokerage of conclusion of insurance contracts;
3. Where any insurance contract has been concluded through a brokerage, which makes the certified insurance broker or a person employing the certified insurance broker the policyholder or the insured under Article 101 of the Act, the details thereof.
(2) Books and documents to be kept by a certified insurance broker under Article 92 (1) of the Act shall be as follows:
1. Copies of the contractual documents;
2. Documents stating the matters referred to in paragraph (1) 2 and 3;
3. Documents issued under paragraph (3);
4. Where a brokerage business contract has been concluded with an insurance company, or any remuneration contract has been concluded with a policyholder, the said contract.
(3) In concluding insurance contracts, a certified insurance broker shall, under Article 92 (1) of the Act, issue in advance documents stating the following matters to the policyholders and explain thereon:
1. Trade name or title of the certified insurance broker, and name and address of the representative;
2. Matters relating to the right and status of the certified insurance broker as prescribed by Ordinance of the Prime Minister;
3. Matters relating to compensation for losses by the certified insurance broker as prescribed by Ordinance of the Prime Minister;
4. Where an insurance company delegates authority, the details thereof;
5. Matters relating to the code of practice of the certified insurance broker as prescribed by Ordinance of the Prime Minister.
(4) If requested by a policyholder, a certified insurance broker shall notify him or her of fees, remunerations and other consideration received from an insurance company in connection with its brokerage of the conclusion of insurance contracts.
(5) A certified insurance broker shall make the books or documents referred to in paragraph (2) available for inspection by policyholders or interested parties and, if requested by a policyholder, etc., shall issue the certificate for the details thereof.
(6) Other matters relating to the methods, etc. of keeping the books and documents referred to in paragraph (2) shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 42 (Matters to Be Entered in Insurance Prospectus)
(1) In cases of the amount-variable insurance contract under Article 108 (1) 3 of the Act (hereinafter referred to as "amount-variable insurance contract"), matters concerning the rights and duties following insurance coverage under Article 95 (1) 2 of the Act shall contain the following matters:
1. Fact that there exist some possibilities for the principal of paid premiums to incur losses in proportion to the results of operation of the assets of amount-variable insurance, and that such losses shall be reverted to the policyholders;
2. Where any insurance proceeds to be guaranteed at a minimum are set, the details thereof.
(2) None of the following matters shall be entered in an insurance prospectus:
2. Matters that are different from the details of insurance contracts;
3. Matters introduced by selecting terms favorable to policyholders, or matters that are compared with the products of other insurance companies;
4. Matters compared favorably on the basis of undecided or unfounded matters, in comparison with the products of other insurance companies.
(3) "Other matters prescribed by Presidential Decree" in Article 95 (1) 6 of the Act means any of the following matters: <Amended by Presidential Decree No. 26040, Jan. 6, 2015>
1. Matters relating to the applied interest rate and fluctuations in the insurance proceeds, in cases of insurance products whose insurance proceeds are linked with interest rates;
2. Exemplification of conditions of restrictions on the payment of insurance proceeds;
3. The person and the date of manufacturing the insurance prospectus and the examination or management number of the insurance prospectus issued by the insurance company;
4. Matters relating to insurance consultation and the settlement of disputes.
(4) The Financial Supervisory Commission may determine and publicly notify matters necessary to prepare and manage an insurance prospectus in order to protect policyholders and to avoid misunderstandings with persons who acquired relevant information.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 42-2 (Significant Matters Subject to Duty to Explain)
(1) "Significant matters prescribed by Presidential Decree concerning insurance contracts, such as a premium, scope of coverage, grounds for restricting the payment of insurance proceeds, and other relevant matters" in Article 95-2 (1) of the Act means any of the following matters: <Amended by Presidential Decree No. 28945, Jun. 5, 2018>
1. Premiums by prime contract and special agreement;
2. Major risk factors, such as death, disease, and injury, and insurance proceeds covered respectively by prime contract and special agreement;
3. The payment period of premiums and the insurance period;
4. The trade name of an insurance company, and the kinds and titles of insurance products;
5. Matters concerning the withdrawal of subscription;
6. Conditions for restriction on the payment of insurance proceeds, such as limit of insurance proceeds, exemption from liability, and matters subject to payment of reduced amount of insurance proceeds;
7. Effect of the breach of the duty of disclosure and notification;
8. Matters concerning the cancellation and nullity of a contract;
9. Matters concerning refund upon revocation of a contract;
10. Matters concerning the procedures for conciliation of disputes;
11. In cases of a simple non-life insurance agency, matters concerning the opportunity guaranteed to consumers pursuant to Article 33-2 (4) 2;
12. Other matters that the Financial Services Commission determines and publicly notifies for the protection of policyholders.
(2) “Any other means prescribed by Presidential Decree” in Article 95-2 (2) of the Act means any of the following means: <Newly Inserted by Presidential Decree No. 23479, Dec. 31, 2011; Presidential Decree No. 27080, Apr. 1, 2016>
1. A digital signature as defined in subparagraph 2 of Article 2 of the Digital Signature Act;
2. Any other method to confirm that an ordinary insurance policyholder has understood the explanations provided pursuant to Article 95-2 (1) of the Act, using any means ensuring safety and reliability in compliance with the standards determined by the Financial Services Commission.
(3) Insurance companies shall explain important matters by item to ordinary policyholders at each of the following stages in accordance with the main sentence of Article 95-2 (3) of the Act and paragraph (4) of the same Article: Provided, That at the stage of concluding an insurance contract under subparagraph 1 (limited to grounds for rejection referred to in item (e)), of claiming insurance proceeds prescribed in subparagraph 2, or of conducting examination or making payment of insurance proceeds under subparagraph 3, insurance companies may notify ordinary policyholders or persons entitled to claim insurance proceeds of important matters, in writing or by text-message, e-mail, facsimile, etc., instead of explaining them only if such ordinary policyholders or persons entitled to claim insurance proceeds give their consent before entering into a contract or when claiming insurance proceeds: <Amended by Presidential Decree No. 23479, Dec. 31, 2011; Presidential Decree No. 27080, Apr. 1, 2016>
1. At the stage of concluding an insurance contract:
(a) Name and contact information of the person engaged in the insurance solicitation and organization where he or she belongs;
(b) Whether the person engaged in the insurance solicitation is authorized to conclude an insurance contract on behalf of the insurance company;
(c) Whether the person engaged in the insurance solicitation is authorized to receive insurance premiums or matters subject to duty to notify on behalf of the insurance company;
(d) Procedure for acceptance of the insurance contract;
(e) Ground for rejection in cases of rejecting the acceptance of the insurance contract;
(f) Fact that the relevant insurance contract may be cancelled within three months as prescribed in Article 638-3 (2) of the Commercial Act and the procedures and methods therefor;
(g) Other matters to be explained for ordinary policyholders at the stage of concluding an insurance contract, which are determined and publicly notified by the Financial Services Commission;
2. At the stage of claiming insurance proceeds:
(a) Office in charge, contact information, and documents required to claim insurance proceeds;
(b) Procedures for examination of claims for insurance proceeds, expected period of examination, and expected date of payment;
(c) Matters determined and publicly notified by the Financial Services Commission, which are to be explained to ordinary policyholders with regard to investigation of an accident covered by insurance and damage adjustment;
(d) Other matters to be explained to ordinary policyholders at the stage of claiming insurance proceeds, which are determined and publicly notified by the Financial Services Commission;
3. At the stage of examination and payment of insurance proceeds:
(a) Procedures for payment, including the date of payment of insurance proceeds;
(b) Details of the payment of insurance proceeds;
(c) Where the examination of insurance proceeds is delayed, reasons therefor and an expected date of payment;
(d) Where insurance proceeds are paid in a reduced amount or not paid at all, grounds therefor;
(e) Other matters to be explained to ordinary policyholders at the stage of examination and payment of insurance proceeds, which are determined and publicly notified by the Financial Services Commission.
(4) Deleted. <by Presidential Decree No. 27080, Apr. 1, 2016>
(5) Detailed matters concerning those referred to in paragraphs (1) through (3) shall be determined and publicly notified by the Financial Services Commission. <Amended by Presidential Decree No. 23479, Dec. 31, 2011; Presidential Decree No. 27080, Apr. 1, 2016>
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 42-3 (Matters to Confirm under Principle of Conformity)
(1) "Matters prescribed by Presidential Decree, such as the age and property status of a policyholder, the reason the policyholder buys insurance, and other relevant matters" in Article 95-3 (1) of the Act means any of the following matters:
1. Age of the policyholder;
2. Monthly income and the share of insurance premium disbursement in the monthly income;
3. Purpose of purchasing the insurance;
4. Whether the policyholder has an amount-variable insurance contract or has purchased collective investment securities under Article 9 (21) of the Financial Investment Services and Capital Markets Act;
5. Other matters deemed necessary for recommendation of the conclusion of an insurance contract suitable to the policyholder, which are determined and publicly notified by the Financial Services Commission.
(2) Any insurance product governed by Article 95-3 (1) and (2) of the Act as referred to in paragraph (3) of the same Article shall be an amount-variable insurance: Provided, That insurance products governed by Article 46 of the Financial Investment Services and Capital Markets Act shall be excluded herefrom.
(3) Insurance companies and persons who are engaged in insurance solicitation shall retain and manage the matters verified under Article 95-3 (1) of the Act from conclusion of the insurance contract for two years after the termination thereof.
(4) Detailed matters necessary for application of the principle of conformity, other than those prescribed in paragraphs (1) through (3) shall be determined and publicly notified by the Financial Services Commission.
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 42-4 (Matters to be Observed in Relation to Solicitation Advertisements)
(1) "Details prescribed by Presidential Decree" in Article 95-4 (2) 3 of the Act means any of the following:
1. Details specifying insurance proceeds may be subject to variation in accordance with the performance results of the operation of the assets;
2. Scope of insurance proceeds governed by the Depositor Protection Act.
(2) "Any other details prescribed by Presidential Decree" in Article 95-4 (2) 4 of the Act means any of the following matters: Provided, That in cases of advertisements meeting requirements determined and publicly notified by the Financial Services Commission, such as the exposure of the image only of the insurance product without the specific exemplification of premiums and insurance proceeds, such details shall be limited to matters prescribed in subparagraphs 1, 5, and 6: <Amended by Presidential Decree No. 26040, Jan. 6, 2015>
1. The trade name of an insurance company and titles of insurance products;
2. Examples of insurance premiums for each prime contract and special agreement;
3. Examples of major risk factors, such as death, disease, and injury, and insurance proceeds guaranteed respectively by prime contacts and special agreements;
4. Examples of refunded amount upon revocation of a contract;
5. Conditions for restrictions on the payment of insurance proceeds, such as the limit of the insurance proceeds, exemption from liability, matters subject to payment of the reduced amount of the insurance proceeds, etc.;
6. Applicable interest rate, in cases of interest sensitive insurance products.
(3) "Any other conduct prescribed by Presidential Decree" in Article 95-4 (3) 6 of the Act means any of the following conducts:
1. A conduct that leads to a misunderstanding that insurance proceeds may be paid, when an insurance accident occurs, by adding up the proceeds of at least two insurances whose grounds or timing for payments are different from each other;
2. A conduct that an insurance agency approved as a program-providing business operator under the proviso to Article 9 (5) of the Broadcasting Act allows other persons who are not authorized to engage in solicitation under Article 83 of the Act to explain the insurance products.
(4) An insurance company or a person engaged in insurance solicitation shall observe the following methods and procedures, when advertising insurance products, as prescribed in Article 95-4 (4) of the Act: <Amended by Presidential Decree No. 25311, Apr. 15, 2014; Presidential Decree No. 27414, Jul. 28, 2016>
1. The size of letters that describe the coverage shall be similar to the size of letters describing conditions for restrictions on the payment of insurance proceeds;
2. In cases of insurance products that renew automatically upon maturity, the size of letters that describe the possibility of raising insurance premiums shall be similar to the size of letters describing the examples of insurance premiums;
3. The strength or tempo of the voice that explains the details of coverage shall be similar to the strength or tempo of the voice that explains the details referred to in Article 95-4 (2) 1 through 3 and paragraph (2) 5 of the Act;
4. Where an insurance company or insurance agency approved as a program-providing business operator pursuant to the proviso to Article 9 (5) of the Broadcasting Act releases an advertisement via the broadcasting defined in subparagraph 1 of Article 2 of the aforementioned Act, the insurance company or insurance agency shall publish such advertisement on the Internet website of the relevant insurance company or insurance agency, specifying the mass media through which and the period during which it releases the advertisement, within 15 business days from the date it releases the advertisement;
5. Matters to be observed when advertising shall be reflected in the internal control standards provided for in Article 24 (1) of the Act on Corporate Governance of Financial Companies (hereinafter referred to as “the internal control standards”) for the relevant insurance company;
6. Advertisements of insurance products shall be confirmed in advance by a compliance officer of the relevant insurance company (referring to a compliance officer provided for in Article 25 (1) of the Act on Corporate Governance of Financial Companies; hereinafter the same shall apply).
(5) Other than those prescribed in paragraphs (1) through (4), matters necessary for advertising insurance products shall be determined and publicly notified by the Financial Services Commission.
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 42-5 (Duty to Verify Conclusion of Dual Contracts)
(1) "Insurance contracts prescribed by Presidential Decree" in Article 95-5 (1) of the Act means Type 3 insurance contracts under which only the amount of medical expenses actually reimbursed is paid (hereinafter referred to as "indemnity medical insurance contract") and insurance contracts prescribed by the Governor of the Financial Supervisory Service under which only the amount of losses actually reimbursed is paid (hereinafter referred to as “other non-life insurance contracts”): Provided, That any of the following insurance contracts shall be excluded herefrom: <Amended by Presidential Decree No. 26040, Jan. 6, 2015; Presidential Decree No. 28945, Jun. 5, 2018>
1. Deleted; <by Presidential Decree No. 25311, Apr. 15, 2014>
2. Any of the following insurance contracts which cover perils which occur while travelling:
(a) Insurance contracts which travel agencies registered pursuant to Article 4 of the Tourism Promotion Act conclude en bloc for travellers;
(b) Insurance contracts which specific organizations conclude en bloc for their members;
3. Insurance contracts to cover perils which occur while staying in foreign countries for overseas travel, training, study, etc.
(2) Where any insurance company or any person who engages in insurance solicitation solicits an indemnity medical insurance contract or other non-life insurance contracts, he or she or it shall verify whether a potential policyholder under Article 95-5 (1) of the Act has already concluded another indemnity medical insurance contract or other non-life insurance contracts with the same coverage as an insured person. <Amended by Presidential Decree No. 28945, Jun. 5, 2018>
(3) Where a potential policyholder has turned out to be insured by another indemnity medical insurance contract or other non-life insurance contracts with the same coverage after the verification under paragraph (2), detailed matters concerning the payment of guaranteed amount, such as proportional sharing of insurance proceeds, etc., shall be notified to him or her. <Amended by Presidential Decree No. 28945, Jun. 5, 2018>
(4) Detailed matters necessary for the verification and provision of information under paragraphs (2) and (3) shall be determined and publicly notified by the Financial Services Commission.
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 43 (Matters to Be Observed in Relation to Insurance Solicitation, Cancellation, and Surrender Using Means of Communication)
(1) Any person subject to solicitation using a means of communication under Article 96 (1) of the Act shall be a person who gives consent to solicitation using a means of communication. <Amended by Presidential Decree No. 27080, Apr. 1, 2016>
1. through 4. Deleted. <by Presidential Decree No. 27080, Apr. 1, 2016>
(2) Any person who engages in solicitation by telephone among means of communication under Article 96 (1) of the Act shall question or explain, if there exists any application for an insurance contract, matters necessary for the conclusion of an insurance contract, such as the contents of application, payment of premiums, insurance period, obligation to notify, and major terms of insurance clauses, with consent of the policyholder, and shall secure and keep evidential data, such as making an audio recording of the details of the policyholder's answers and confirmation therefor, and shall, without delay, have such application signed by the policyholder by mail or facsimile.
(3) Notwithstanding paragraph (2), where any evidential data, etc. capable of confirming the applicant's identity exists or in any other cases determined and publicly notified by the Financial Services Commission, a policyholder's signature under paragraph (2) may be exempted.
(4) A person who engages in solicitation using a cyber-mall shall observe the following matters: <Amended by Presidential Decree No. 27080, Apr. 1, 2016; Presidential Decree No. 28945, Jun. 5, 2018>
1. Deleted; <by Presidential Decree No. 27080, Apr. 1, 2016>
2. He or she shall post major contents of the insurance clauses on the cyber-mall and receive a written application signed by a policyholder except in any of the following cases:
(a) Where he or she has obtained the policyholder’s certified digital signature defined in subparagraph 3 of Article 2 of the Digital Signature Act;
(b) Where he or she has obtained confirmation from the policyholder of the contents of the insurance clauses using other means ensuring safety and reliability in compliance with the standards determined by the Financial Services Commission;
3. Where the insurance clauses or insurance policy is issued in electronic form, he or she shall confirm whether a policyholder has received the relevant clauses or policy, and where a policyholder requests to issue them in written form, they shall be issued in such.
(5) Where a person who has subscribed for an insurance contract pursuant to Article 96 (2) 1 of the Act intends to request the verification or correction of details subscribed or to cancel the subscription by telephone, the insurance company shall, with the consent of such subscriber, confirm the details of subscription and his or her identity, and then shall secure and preserve corroborative evidence, such as audio recordings of the details thereof.
(6) Where a person who has subscribed for an insurance contract pursuant to Article 96 (2) 1 of the Act intends to request the verification or correction of details subscribed or to cancel the subscription by computer communications, the insurance company shall verify his or her identity using either of the following methods: <Amended by Presidential Decree No. 27080, Apr. 1, 2016>
1. The person’s certified digital signature defined in subparagraph 3 of Article 2 of the Digital Signature Act;
2. Any other method to verify the identity of the relevant policyholder using any means ensuring safety and reliability in compliance with the standards determined by the Financial Services Commission.
(7) Where a policyholder intends to verify the details of a concluded contract by telephone pursuant to Article 96 (2) 2 of the Act, the insurance company shall, with the consent of such policyholder, confirm his or her identity, and then shall secure and preserve corroborative evidence, such as audio recordings of the details thereof.
(8) Where a policyholder intends to cancel a concluded contract by telephone pursuant to Article 96 (2) 3 of the Act, the insurance company shall, with the consent of such policyholder, confirm each of the following, and then shall secure and preserve corroborative evidence, such as audio recordings of the details thereof:
1. Whether he or she is the policyholder himself or herself;
2. Whether he or she has agreed before concluding the contract to utilize a means of communication in cancelling the contract;
3. Deleted. <by Presidential Decree No. 23479, Dec. 31, 2011>
(9) Where a policyholder intends to cancel a concluded contract by computer communications in accordance with Article 96 (2) 3 of the Act, the insurance company shall confirm any of the following matters: <Amended by Presidential Decree No. 27080, Apr. 1, 2016>
1. Whether he or she is the policyholder himself or herself; in such cases, his or her identity shall be confirmed using either of the following methods:
(a) The person’s certified digital signature defined in subparagraph 3 of Article 2 of the Digital Signature Act;
(b) Any other method to verify the identity of the relevant policyholder using any means ensuring safety and reliability in compliance with the standards determined by the Financial Services Commission.
2. Whether he or she has agreed before concluding the contract to utilize means of communications in cancelling the contract;
3. Deleted. <by Presidential Decree No. 23479, Dec. 31, 2011>
(10) The Financial Services Commission may determine and publicly notify detailed matters necessary for the items to be specified at cyber-malls, solicitation using a means of communication, verification of the details of application, cancellation of application, verification of the details of contracts and cancellation of contracts: Provided, That the same shall not apply to matters regulated in statutes and regulations pertaining to consumers, such as the Act on the Consumer Protection in Electronic Commerce.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 43-2 (Prohibited Conducts concerning Conclusion and Solicitation of Insurance Contracts)
(1) A new insurance contract whose coverage, etc. is similar to that of an already-concluded insurance contract under Article 97 (1) 5 of the Act (hereinafter referred to as "existing insurance contract") shall satisfy each of the following requirements: Provided, That the same shall not apply where the insurance period of the existing insurance contract or the new insurance contract is not longer than one year or where a new insurance contract is concluded using computer communications: <Amended by Presidential Decree No. 27080, Apr. 1, 2016>
1. The insured person of the existing and new insurance contracts shall be the same person;
2. The scope of risk coverage of the existing and new insurance contracts shall be similar in accordance with the classifications of life insurance, non-life insurance and Type 3 insurance defined under the items of subparagraph 1 of Article 2 of the Act.
(2) A principal's intent prescribed in the proviso to Article 97 (3) 1 of the Act shall be verified by any of the following methods: <Amended by Presidential Decree No. 23479, Dec. 31, 2011; Presidential Decree No. 27080, Apr. 1, 2016>
1. Signing his or her own name (including the digital signature as defined in subparagraph 2 of Article 2 of the Digital Signature Act);
2. Writing his or her name and affixing his or her seal;
3. Recording;
4. Any other method to clearly verify that the relevant conduct is based on the principal’s intent, using other means ensuring safety and reliability in compliance with the standards determined by the Financial Services Commission.
(3) An insurance company shall keep and manage documents, etc. proving the principal’s intent was verified according to methods falling under any of the subparagraphs of paragraph (2), in accordance with methods prescribed and publicly notified by the Financial Services Commission. <Newly Inserted by Presidential Decree No. 25311, Apr. 15, 2014>
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 44 (Comparison and Notification When Insurance Contracts are Amended)
(1) "Important matters prescribed by Presidential Decree" in Article 97 (3) 2 of the Act means any of the following matters: <Amended by Presidential Decree No. 25311, Apr. 15, 2014>
1. Premiums, insurance period, timing for the payment of premiums, and payment period;
2. Amount of insurance coverage, and major details of guarantees;
3. Insurance amount and redemption amount;
4. Notified interest rate out of scheduled interest rates;
5. Insurance purposes;
6. Reasons for exemption from liability of insurance companies and exempted items.
(2) An insurance company shall keep and manage documents, etc. that may confirm the fact that it has compared and informed matters referred to in the subparagraphs of paragraph (1) in accordance with methods determined and publicly notified by the Financial Services Commission. <Newly Inserted by Presidential Decree No. 25311, Apr. 15, 2014>
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 45 (Procedures for Claiming Reinstatement of Insurance Contracts)
(1) A policyholder who intends to claim reinstatement of the terminated insurance contract and to cancel a new insurance contract under Article 97 (4) of the Act shall submit to the insurance company a written claim to reinstate his or her insurance contract, along with the following documents:
1. Documents attesting to termination of the existing insurance contract;
2. Insurance policy of the new insurance contract.
(2) When an insurance company has received the documents under paragraph (1), it shall issue a certificate of receipt, and verify the reasons for reinstatement and the items mentioned in the submitted documents.
(3) An insurance company shall give notice of consent or refusal, within 30 days from the date of receiving a claim to reinstate an insurance contract (in the case of a contract subject to medical examination, the date of examination), and when no notice is given within the said period, it is deemed to grant consent.
(4) Reinstatement of a terminated insurance contract and of cancellation of a new insurance contract under Article 97 (4) of the Act shall become effective when each of the following requirements are satisfied:
1. Returning of the refund money for cancellation, which has been received by a policyholder due to the termination of the existing insurance contract;
2. Returning of the various benefits which a policyholder has received under the new insurance contract.
(5) Reinstatement and cancellation of insurance contracts under Article 97 (4) and (5) of the Act shall apply only to the relevant contracts where a party thereto is the same and identical insurance company.
(6) The Financial Services Commission may determine and publicly notify detailed matters necessary for the reinstatement of insurance contracts.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 46 (Prohibition on Provision of Special Benefits)
"Amount prescribed by Presidential Decree" in subparagraph 1 of Article 98 of the Act means the lesser amount between 10/100 of the premiums paid for the first year after the conclusion of an insurance contract and 30 thousand won.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 47 (Exception to Prohibition on Payment of Commissions)
(1) "Otherwise prescribed by Presidential Decree" in Article 99 (3) of the Act means cases where a claim is made pursuant to a written agreement to which a policyholder consents in advance that the remuneration and other consideration indicated in a specific amount be paid for the services specially provided to the policyholder in addition to the brokerage of conclusion of an insurance contract.
(2) Where any certified insurance broker intends to make a claim on remuneration or other consideration under paragraph (1), he or she shall notify the relevant policyholder of the statement of remuneration indicating the details by service to be provided prior to the provision of the relevant services.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 48 (Prohibited Acts of Insurance Agencies of Financial Institutions)
(1) "Other acts prescribed by Presidential Decree" in Article 100 (1) 6 of the Act means any of the following acts: <Amended by Presidential Decree No. 25311, Apr. 15, 2014>
1. Requiring executive officers or employees, other than persons engaged in solicitation under Article 40 (4), to provide consultation or introduction on the purchase of insurance products, or paying the price for consultation or introduction;
2. Compelling the purchase of insurance products in return for a loan contrary to the intention of the borrower;
3. Compelling a person who has relationship with a borrower determined and publicly notified by the Financial Services Commission, such as the representative or an executive officer of a small and medium enterprise (referring to a small and medium enterprise determined and publicly notified by the Financial Services Commission among small and medium enterprises under Article 2 of the Framework Act on Small and Medium Enterprises; hereafter the same shall apply in this paragraph) in connection with a loan to take out an insurance policy against his or her will;
4. Selling insurance products to a borrower that is a small and medium enterprise, other borrower and a person that has relationship with a borrower determined and publicly notified by the Financial Services Commission in connection with a loan within one month before and after the date of the execution of the loan, which meets requirements determined and publicly notified by the Financial Services Commission in consideration of the characteristics, sales amount, etc. of insurance products for the purpose of protecting the relevant borrower and person that has relationship with the borrower;
5. Other acts that are likely to harm sound trade practices, which are determined and publicly notified by the Financial Services Commission.
(2) "Matters prescribed by Presidential Decree" in Article 100 (2) 4 of the Act means the establishment and operation of an exclusive window to accept and deal with civil complaints regarding insurance from policyholders, etc. in the main office of the relevant financial institution.
(3) "Any other unfair request, which is prescribed by Presidential Decree" in Article 100 (3) 3 of the Act means an act to request a share of profits accruing from insurance contracts solicited by the insurance agencies, etc. of financial institutions other than solicitation fees (excluding cases of requesting a share of profits pursuant to the criteria determined and publicly notified by the Financial Services Commission).
(4) Standards for prohibited conducts of the insurance agencies, etc. of financial institutions, or persons that intend to become such agencies under Article 100 (4) of the Act, shall be as follows:
1. Requests from the insurance agencies, etc. of financial institutions shall be clearly acknowledgeable to be contrary to the interests of insurance companies in terms of ordinary trading conditions;
2. Relevant conducts shall be clearly acknowledgeable to harm the sound management of insurance companies or the interests of policyholders, and the sound soliciting order.
(5) Matters necessary for the standards for prohibited conducts and the guidelines for the prevention of the abuse of a predominant position of the insurance agencies, etc. of financial institutions under paragraphs (1) through (4) shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 48-2 (Insurance Contracts subject to Withdrawal of Applications for Insurance)
(1) "Insurance contracts prescribed by Presidential Decree" in the main body of Article 102-4 (1) of the Act means insurance contracts that do not fall under any of the following:
1. An insurance contract that requires the insured to undergo medical examination to enter into the insurance contract;
2. An insurance contract, the period of which is less than one year;
3. An insurance contract which any person is obligated to buy pursuant to Article 5 of the Guarantee of Automobile Accident Compensation Act;
4. A guarantee insurance contract for a third party (excluding where a general insurance policyholder has obtained consent to the withdrawal of an application for insurance from a third party);
5. Other insurance contracts determined and publicly notified by the Financial Services Commission, which do not interfere with the protection of general insurance policyholders.
(2) The expression of intention to withdraw an application for insurance under the main sentence of Article 102-4 (1) of the Act shall be made by any of the followings:
1. Method of submitting a document expressing one's intention to withdraw an application for insurance to an insurance company;
2. Method of using communication means pursuant to Article 96 (2) of the Act.
(3) With regard to the period for which the return of a premium is delayed pursuant to Article 102-5 (1) of the Act, an insurance company shall pay the premium to which the amount calculated by applying the interest rate stipulated to apply to the calculation of a penalty interest is added where the payment of insurance money is delayed in the relevant insurance policy: Provided, That where the premium has been paid using a credit card, the amount of the premium calculated shall become zero.
[This Article Newly Inserted by Presidential Decree No. 25459, Jul. 14, 2014]
CHAPTER V MANAGEMENT OF ASSETS
 Article 49 (Prohibited or Restricted Asset Management)
(1) "That prescribed by Presidential Decree for business purposes" in subparagraph 1 of Article 105 of the Act means real estate which does not fall under Article 49 (1) 1 of the Enforcement Decree of the Corporate Tax Act, but falls under any of the following subparagraphs:
1. Real estate for business facilities: Land, buildings and their accessory facilities being used or to be used for the places of business (applicable to cases where the insurance company uses 10/100 or more of total floor area for itself), training facilities, welfare facilities for executive officers or employees, and for uses corresponding thereto: Provided, That the places of business shall be, in principle, the objects of a single ownership, and shall satisfy each of the following requirements, if they are possessed under the partitioned ownership of a single building:
(a) Several floors which are the objects of the partitioned ownership shall be connected, or physically recognizable to be a single piece of real estate;
(b) Inevitability of acquiring multiple real estates shall be recognized in light of the purposes of possessing real estate, economic utility and trade practices;
2. Real estate for investment projects: Land, buildings and their accessory facilities for housing projects, real estate rental projects, social welfare projects including cemetery projects, urban redevelopment projects, public projects including infrastructure projects, etc. and for overseas real estate business.
(2) "Conduct prescribed by Presidential Decree" in subparagraph 7 of Article 105 of the Act means any of the following conducts:
1. Foreign exchanges which do not satisfy the standards determined by the Financial Services Commission (applicable only to foreign means of payment, foreign currency securities, and foreign currency claims among foreign exchanges under subparagraph 13 of Article 3 of the Foreign Exchange Transactions Act) and financial derivative trades (including derivative trades under subparagraph 9 of Article 3 of the Foreign Exchange Transactions Act, which impute credit risks to one of the parties to trades at the time of occurrences of credit accidents under the conditions as agreed between the parties to a contract, such as default on obligations and decline in credit rating, etc., or trades similar thereto);
2. Deleted; <by Presidential Decree No. 23479, Dec. 31, 2011>
3. Other conducts that are likely to considerably harm the stability of asset management, which are determined and publicly notified by the Financial Services Commission.
(3) Detailed matters concerning paragraphs (1) and (2) shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 50 (Ratio of Asset Management)
(1) "Subsidiaries prescribed by Presidential Decree" in the main body of both Article 106 (1) 5 and 6 of the Act means subsidiaries that do not fall under any of the following subparagraphs: <Amended by Presidential Decree No. 25311, Apr. 15, 2014; Presidential Decree No. 25887, Dec. 23, 2014>
1. Companies running business falling under Article 59 (1) 1 through 13, all the issued voting stocks (including the investment shares) of which are owned by insurance companies;
1-2. Venture capitals that invest in small and medium enterprises under the Support for Small and Medium Enterprise Establishment Act or the Small and Medium Enterprise Venture Capital Association;
2. Collective investment vehicles under the Financial Investment Services and Capital Markets Act;
3. Real estate investment companies under the Real Estate Investment Company Act;
4. Ship investment companies pursuant to the Ship Investment Company Act;
4-2. The Korea Venture Investment Association under the Act on Special Measures for the Promotion of Venture Businesses;
4-3. The New Technology Business Investment Association under the Specialized Credit Finance Business Act;
5. Companies running business under Article 59 (1) 14;
5-2. Companies that perform affairs under Article 59 (1) 15;
6. Companies running business under Article 59 (2) 1.
(2) Consignment guarantee money (the amount agreed upon in cases of over-the-counter derivatives) in the main body of Article 106 (1) 10 of the Act shall be as follows:
1. Exchange-traded derivatives: A good faith deposit prescribed in the business regulations for derivatives under Article 396 (1) of the Financial Investment Services and Capital Markets Act;
2. Over-the-counter derivatives: The amount agreed upon, which is calculated based on the standards that the Financial Services Commission determines and publicly notifies by reflecting the trading mechanism of over-the-counter derivatives.
(3) Pursuant to Article 106 (2) of the Act, the asset management ratio for the possession of real estate under Article 106 (1) 8 (a) of the Act shall be lowered to 15% of the total assets.
(4) "Amount prescribed by Presidential Decree" in Article 106 (3) of the Act means 30 billion won, based on the amount as of the end of every quarter.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 51 (Exception of Restrictions on Asset Management)
"Grounds prescribed by Presidential Decree" in the proviso to the part other than the subparagraphs of Article 107 of the Act means cases where the Financial Services Commission deems that the disposal of excess assets within one year from the date when an insurance company exceeds the limit of asset management ratio results in significant losses in the assets and the worsening of financial stability of the relevant insurance company, in light of ordinary cases.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 52 (Establishment and Operation of Special Account)
(1) An insurance company that establishes and operates a special account under Article 108 (1) of the Act shall establish and operate a separate special account for each insurance contract classified in the subparagraphs of the same paragraph.
(2) Where the Financial Services Commission deems it necessary for the efficient operation of a special account, an insurance company may establish and operate two or more special accounts for each insurance contract classified in the subparagraphs of Article 108 (1) of the Act.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 53 (Operating Ratio of Special Account Assets)
(1) An insurance company shall be prohibited from exercising voting rights on the stocks acquired by assets of special accounts (excluding those established pursuant to contracts under Article 108 (1) 3 of the Act): Provided, That the same shall not apply to merger, transfer or acquisition of business, appointment of executive officers of the company having issued the stocks, and others corresponding thereto which are evidently expected to cause losses to the assets of special accounts.
(2) An insurance company shall be prohibited from borrowing funds at the expense of special accounts established for contracts under Article 108 (1) 2 of the Act: Provided, That the same shall not apply to the borrowing of funds by any of the following methods within the limit of 10/100 of assets for each special account: <Amended by Presidential Decree No. 27414, Jul. 28, 2016>
1. Overdrafts from banks under the Banking Act;
2. Borrowing short-term funds with the maturity of less than one month from financial institutions;
3. Borrowing short-term funds with the maturity of less than one month from general accounts (referring to the accounts that exclude insurance contracts that belong to special accounts; hereinafter the same shall apply). In such cases, the interest rate shall be fixed in accordance with the standards determined and publicly notified by the Financial Services Commission;
4. Methods corresponding to those provided for in subparagraphs 1 through 3, determined and publicly notified by the Financial Services Commission.
(3) An insurance company shall be prohibited from performing any of the following conducts in managing the assets of special accounts: <Amended by Presidential Decree No. 27080, Apr. 1, 2016>
1. Managing the assets under the instructions of policyholders;
2. Guaranteeing a prior yield for an amount-variable insurance contract;
3. Incorporating the assets of special accounts into a general account or into another special account; or incorporating the assets of a general account into a special account: Provided, That each of the following conducts shall be excluded herefrom:
(a) Incorporating initial investments of a general account into a special account as determined and publicly notified by the Financial Services Commission to efficiently manage the special account;
(b) Borrowing short-term funds with the maturity of less than one month from a general account to a special account according to the standards of interest rate determined and publicly notified by the Financial Services Commission;
(c) Transferring assets whilst converting retirement insurance contracts under Article 2 (1) of Addenda to the Guarantee of Workers' Retirement Benefits Act (Act No. 7379) into insurance contracts under Article 16 (2) of the same Act;
(d) Converting a special account established under contracts under Article 108 (1) 3 of the Act to a master-feeder fund under Article 233 of the Financial Investment Services and Capital Markets Act, where the assets of the feeder fund are transferred to the master fund;
(e) Other conducts corresponding to those mentioned in items (a) through (d), which are determined and publicly notified by the Financial Services Commission;
4. Receiving premiums in bills;
5. Seeking the benefit of a third party by the specific assets of a special account.
(4) Article 106 (1) of the Act shall not apply where the value of assets of an insurance company is changed due to fluctuations in the prices of assets, exercise of security rights, or other reasons not attributable to the intention of the insurance company. In such cases, the said insurance company shall comply with the provisions of Article 106 (1) of the Act within one year from the date on which it exceeds the ratios, and in case of falling under any ground provided for in Article 51, the Financial Services Commission may extend the relevant period.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 54 (Assessment of Assets of Special Accounts, and Distribution of Profits and Losses)
(1) Assets of a special account (excluding the special accounts established under a contract referred to in Article 108 (1) 3 of the Act) shall be assessed in a manner determined by the Financial Services Commission.
(2) An insurance company shall treat the proceeds obtained by deducting any remuneration for operation of the relevant special account and other fees from the operational revenues of the amount-variable insurance special account, as shares for policyholders of the relevant special account.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 55 (Public Notification of Performance of Special Accounts)
(1) An insurance company shall give public notification on the following matters pertaining to the management of assets of special accounts (excluding the special accounts established under a contract referred to in Article 108 (1) 3 of the Act):
1. Details of assets, debts and composition of assets for each special account as of the end of each month;
2. Remuneration and fees for asset management;
3. Other matters, the public notification of which is deemed necessary for the protection of policyholders, and which are determined and publicly notified by the Financial Services Commission.
(2) An insurance association may compare and publicly notify the performance of assets by insurance company, such as the standard price and yield for each special account established by each insurance company.
(3) An insurance company shall provide policyholders with the details of management of insurance contracts established and operated by a special account (excluding the special accounts established under a contract referred to in Article 108 (1) 3 of the Act), at least once a year.
(4) Methods of and procedures for giving public notification under paragraphs (1) through (3) and other necessary matters shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 56 (Obligation to Secure Professionals to Manage Special Accounts)
(1) An insurance company that establishes and operates special accounts (excluding the special accounts established under a contract referred to in Article 108 (1) 3 of the Act) shall have systems and human resources in exclusive charge of the management and operation of the special accounts in order to ensure the fair management thereof: Provided, That human resources and organizations of a general account may engage in the loan business of special accounts following a compliance officer's confirmation as to whether the internal control standards are complied with.
(2) Where a person falling under any subparagraph of Article 83 (1) of the Act intends to solicit amount-variable insurance contracts, he or she shall have training for solicitation of amount-variable insurance contracts under conditions determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 56-2 (Types of Unfair Loans)
The specific types of unfair loans referred to in Article 110-2 (1) of the Act shall be as follows: <Amended by Presidential Decree No. 23479, Dec. 31, 2011; Presidential Decree No. 25311, Apr. 15, 2014>
1. Compelling the purchase of insurance products in return for a loan contrary to the intention of a borrower;
2. Requesting a borrower or a third party to provide a comprehensive continuing security (referring to the provision of an object or right as a security within a specific limit of amount for a number of debts or liabilities of unfixed amount which have currently incurred or shall be incurred in the future) or a comprehensive continuing guarantee (referring to guarantee within a specific limit of amount for several debts or liabilities of unfixed amount which have currently incurred or shall be incurred in the future) without justifiable grounds when acquiring securities or guarantees from the borrower or the third party;
3. Requesting a third person who has provided security in connection with a loan to provide joint guarantee;
4. Compelling a person that has relationship with a borrower determined and publicly notified by the Financial Services Commission, such as the representative or an executive officer of a small and medium enterprise (referring to a small and medium enterprise determined and publicly notified by the Financial Services Commission among small and medium enterprises under Article 2 of the Framework Act on Small and Medium Enterprises; hereafter the same shall apply in this paragraph) in connection with a loan to take out an insurance policy against his or her will;
5. Selling insurance products to a borrower that is a small and medium enterprise, other borrower and a person that has relationship with a borrower determined and publicly notified by the Financial Services Commission in connection with a loan within one month before and after the date of the execution of the loan, which meets requirements determined and publicly notified by the Financial Services Commission in consideration of the characteristics, sales amount, etc. of insurance products for the purpose of protecting the relevant borrower and person who has relationship with the borrower;
6. Other unfair acts performed by an insurance company by making use of its predominant standing, which are determined and publicly notified by the Financial Services Commission.
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 57 (Prohibition on Transaction with Large Shareholders)
(1) No insurance company shall directly or indirectly perform any of the following conducts with its large shareholders, under Article 111 (1) 2 of the Act:
1. Gratuitously providing any tangible or intangible assets which have economic value, such as stocks, real estates, intangible property rights, etc.;
2. Trading assets under subparagraph 1 at a price which is apparently lower or higher than a normal price (referring to a price which is applied or is deemed to be applied to an ordinary transaction; hereafter the same shall apply in this Article);
3. Exchanging assets under subparagraph 1 with assets whose price is apparently lower than a normal price;
4. Extending any credit in return for an asset whose price is apparently lower than a normal price;
5. Concluding a reinsurance contract by receiving or paying a premium which is apparently lower or higher than a normal price.
(2) In applying Article 111 (1) 2 of the Act, the large shareholders referred to in the same paragraph (excluding its subparagraphs) shall not include, from among the related persons falling under any of the subparagraphs of Article 3 (1) of the Act on Corporate Governance of Financial Companies (hereinafter referred to as “related persons”), a non-profit corporation or organization falling under the public service corporation, etc. under Article 16 (1) of the Inheritance Tax and Gift Tax Act (hereafter in this Article, referred to as “public service corporation, etc.”). <Newly Inserted by Presidential Decree No. 24657, Jul. 8, 2013; Presidential Decree No. 27414, Jul. 28, 2016>
(3) The term “amount prescribed by Presidential Decree" in the former part of Article 111 (2) and (3) 1 and 2 of the said Article of the Act means the lesser amount between the amount that a single trade amount (in cases of acquisition of stocks issued by a majority shareholder under Article 111 (2) and (3) 2 of the Act, excluding the amount acquired in the securities market or the Alternative Trading System pursuant to the Financial Investment Services and Capital Markets Act, or other foreign markets similar thereto) falls under 1/1,000 of the equity capital and one billion won. In such cases, detailed criteria for computation of the amount of a single trade shall be determined and publicly notified by the Financial Services Commission. <Amended by Presidential Decree No. 24657, Jul. 8, 2013; Presidential Decree No. 24697, Aug. 27, 2013>
(4) An insurance company shall, under Article 111 (4) of the Act, report to the Financial Services Commission within one month after the end of each quarter, the scale of credit extended to the majority shareholders as of the end of the relevant quarter, the increased or decreased amounts of credit extended during the relevant quarter, the trade conditions for extension of credit, the acquisition scale of bonds or stocks issued by the majority shareholders of the relevant insurance company, and other matters determined and publicly notified by the Financial Services Commission, and give public notice by posting them on its Internet website, etc. <Amended by Presidential Decree No. 24657, Jul. 8, 2013>
(5) The term "any other conduct prescribed by Presidential Decree" in Article 111 (5) 5 of the Act means the conducts falling under any of the following subparagraphs: <Amended by Presidential Decree No. 24657, Jul. 8, 2013>
1. Requesting, at the time of providing credit extension to any competitor of a large shareholder, that such contract conditions as interest rate and security be made disadvantageous without justifiable grounds;
2. Having an insurance company gratuitously transfer any asset to a public service corporation, etc. referred to in paragraph (2), or perform such conducts as trading or exchanging any assets, extending credit, or concluding reinsurance contracts on apparently disadvantageous terms to the relevant insurance company in light of the conventional terms of transactions.
(6) "Cases prescribed by Presidential Decree" in the part other than the subparagraphs of Article 111 (6) of the Act means cases where a majority shareholder falls under any of the following subparagraphs: <Amended by Presidential Decree No. 24657, Jul. 8, 2013; Presidential Decree No. 24697, Aug. 27, 2013>
1. Where liabilities of the majority shareholder (applicable only to a corporation and including a specially-related person who is a corporation; hereafter in this paragraph, the same shall apply) exceed its assets;
2. Where the majority shareholder has received non-investment grade by two or more credit rating companies under the Financial Investment Services and Capital Markets Act.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 57-2 (Exception to Prohibition on Debt Guarantee for Third Persons)
(1) An insurance company may, under the proviso to Article 113 of the Act, purchase securities (referring to securities defined in Article 3 (2) 1 of the Financial Investment Services and Capital Markets Act) or deposits, based on the contract whereby a person who intends to transfer credit risks pays money, etc. for a consideration to a person who acquires the credit risks, and if a credit accident occurs, the person who has acquired the credit risks indemnifies the person who has transferred the credit risks. <Amended by Presidential Decree No. 23479, Dec. 31, 2011>
(2) An insurance company may provide debt guarantee for any of its subsidiaries prescribed in Article 115 (1) of the Act (referring to a subsidiary that carries on insurance business in any foreign country; hereafter the same shall apply in this Article) pursuant to the proviso to Article 113 of the Act. In such cases, all of the following requirements shall be satisfied: <Newly Inserted by Presidential Decree No. 23479, Dec. 31, 2011>
1. The ceiling of debt guarantee shall not exceed 3/100 of the total assets of the insurance company;
2. The insurance company’s solvency margin ratio as at the end of the immediately preceding quarter shall be at least 200/100;
3. The debt guarantee shall be for the obligation to pay insurance proceeds;
4. The insurance company shall hold (referring to holding voting stocks up to the maximum holding limit if a foreign government sets such limit) more than 50/100 of the total voting stocks (including investment shares) issued by the subsidiary for which it intends to provide debt guarantee.
(3) The Financial Services Commission may request an insurance company to submit data necessary for it to verify whether the insurance company satisfies the requirements prescribed in the subparagraphs of paragraph (1). <Newly Inserted by Presidential Decree No. 23479, Dec. 31, 2011>
(4) Details concerning the ceiling of debt guarantee and the calculation of the solvency margin ratio prescribed in paragraph (2) and methods of requesting the submission of data under paragraph (3) and other matters shall be determined and publicly notified by the Financial Services Commission. <Newly Inserted by Presidential Decree No. 23479, Dec. 31, 2011>
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 58 (Methods of Appraising Assets and Relevant Matters)
(1) Where any insurance company needs appraisal for the acquisition, disposal, loan, etc. of assets prescribed in Article 114 of the Act, it shall be governed by the Act on Appraisal and Certified Appraisers. <Amended by Presidential Decree No. 27472, Aug. 31, 2016>
(2) An insurance company may, under Article 114 of the Act, borrow funds by any of the following methods, only where it is to satisfy the standards for financial soundness prescribed in Article 123 of the Act, or where it is to maintain an adequate liquidity:
1. Overdrafts from banks prescribed in the Banking Act;
2. Issuance of bonds or bills;
3. Sale of repurchase agreements;
4. Subordinated borrowings;
5. Other methods of borrowing funds that are not likely to damage the sound management of the insurance company, which are determined and publicly notified by the Financial Services Commission.
(3) Limits to the issuance of bonds under paragraph (2) 2 shall not exceed the equity capital as of the end of the immediately preceding quarter.
(4) The Financial Services Commission may determine and publicly notify detailed matters necessary concerning the methods of borrowing funds pursuant to the subparagraphs of paragraph (2), such as conditions for issuing bonds or bills.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 59 (Holding of Subsidiaries)
(1) "Business prescribed by Presidential Decree" in the proviso to Article 115 (1) of the Act means any of the following business: <Amended by Presidential Decree No. 25311, Apr. 15, 2014; Presidential Decree No. 26600, Oct. 23, 2015; Presidential Decree No. 27080, Apr. 1, 2016>
1. Managing office buildings of an insurance company;
2. Underwriting insurances;
3. Evaluating damage;
4. Brokering insurance contracts;
5. Investigating insurance accidents and insurance contracts;
6. Conducting education, training, book publishing, financial research, or management consultation, which are related to insurance;
7. Rental, sale, and consultation in respect of computer systems, software, etc. related to insurance;
8. Consultations related to insurance contracts, loans, etc.;
9. Providing internet information services related to insurance;
10. Additional services related to automobiles, such as emergency road services, vehicle management, and operational information;
11. Risk management for policyholders, etc.;
12. Social welfare business, such as health, cemeteries, long-term nursing, and physical disabilities, and investigation, analysis or counseling related thereto;
13. Establishing and operating welfare facilities for older persons under Article 31 of the Welfare of Older Persons Act, and investigation, analysis or counseling related thereto;
14. Insurance business, underwriting insurance business, damage evaluation business, insurance brokerage business, financial research business related to insurance, investment advisory business, discretionary investment business, collective investment business or real estate business conducted in foreign countries;
15. Infrastructure facilities projects and investment or financing business for infrastructure facilities under the Act on Public-Private Partnerships in Infrastructure;
16. Asset-backed securitization business and management business of securitization assets under the Asset-Backed Securitization Act;
17. Business run by a small and medium enterprise start-up investment company and a small and medium businesses start-up investment cooperative under the Support for Small and Medium Enterprise Establishment Act;
18. Business run by an investment company or a private equity fund under the Financial Investment Services and Capital Markets Act;
19. Business run by a real estate investment company under the Real Estate Investment Company Act;
20. Business run by a ship investment company under the Ship Investment Company Act;
21. Business run by the Korea Venture Fund under the Act on Special Measures for the Promotion of Venture Businesses;
22. Business run by a venture business investment association under the Specialized Credit Finance Business Act.
(2) "Other business prescribed by Presidential Decree" in Article 115 (1) 4 of the Act means any of the following business:
1. Business operated in a foreign country (excluding a business referred to in paragraph (1) 14);
2. Agency services for counseling and administrative works related to welfare programs of enterprises.
(3) An insurance company that intends to obtain approval for holding a subsidiary under the main sentence of Article 115 (1) of the Act shall satisfy each of the following requirements:
1. The financial conditions and management status of the insurance company shall be sound;
2. The financial conditions of the subsidiary shall be appropriate;
3. It shall not exceed the ratio in managing assets in accordance with Article 106 (1) 6 of the Act.
(4) Where the Financial Services Commission receives an application for approval under the main sentence of Article 115 (1) of the Act, it shall examine the application and inform the applicant whether it is approved within two months.
(5) Detailed matters necessary for requirements for approval for a subsidiary other than those prescribed in paragraphs (3) and (4) shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 59-2 (Prohibited Conduct with Subsidiaries)
No insurance company shall, pursuant to subparagraph 1 of Article 116 of the Act, perform a conduct falling under any subparagraph of Article 57 (1) with its subsidiary: Provided, That this shall not apply to gratuitous transfer of intangible assets to its subsidiary that runs insurance business in a foreign country (limited to where five years have not passed since the subsidiary was incorporated into the relevant insurance company). <Amended by Presidential Decree No. 27080, Apr. 1, 2016>
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 60 (Documents for Reporting on Subsidiaries)
(1) "Documents prescribed by Presidential Decree" in Article 117 (1) of the Act means the following documents:
1. Articles of incorporation;
2. Documents stating the types and methods of business;
3. Present status of shareholders;
4. Financial statements, such as balance sheets and income statements, and business reports;
5. Present status of companies in which the subsidiary holds in excess of 10/100 of the total number of stocks issued.
(2) "Documents prescribed by Presidential Decree" in Article 117 (2) of the Act means the following documents:
1. Financial statements, such as balance sheets and income statements, and business reports;
2. Documents stating status of major trades with subsidiaries.
(3) "Those prescribed by Presidential Decree" in Article 117 (3) of the Act means any of the following companies:
1. Investment companies under the Financial Investment Services and Capital Markets Act and companies operating any business identical thereto in foreign countries;
2. Companies for which one year has not lapsed since the date of establishment.
(4) Any insurance company having a subsidiary under paragraph (3) may be exempted from submitting documents classified as follows, in accordance with Article 117 (3) of the Act:
1. Where the insurance company has a subsidiary falling under paragraph (3) 1: Documents under paragraphs (1) 1 and 2 and (2) 2;
2. Where the insurance company has a subsidiary falling under paragraph (3) 2: Documents under paragraph (1) 4.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 61 (Date for Closing Books)
"Date prescribed by Presidential Decree" in Article 118 (1) of the Act means December 31.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 62 (Methods of Submitting Electronic Documents)
(1) An insurance company may, under Article 118 (3) of the Act, submit the documents referred to in paragraphs (1) and (2) of the same Article by means of electronic documents (referring to electronic documents under subparagraph 1 of Article 2 of the Framework Act on Electronic Documents and Transactions) which utilize an information and communications network (referring to an information and communications network under the Act on Promotion of Information and Communications Network Utilization and Information Protection, Etc.). <Amended by Presidential Decree No. 24076, Aug. 31, 2012>
(2) The Financial Services Commission may determine and publicly notify detailed standards necessary for the methods of submitting documents under paragraph (1).
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 63 (Accumulation of Liability Reserves)
(1) Any insurance company shall appropriate the following amounts for the liability reserves in order to reimburse insurance proceeds, refund money, dividends to policyholders, which are payable under Article 120 (1) of the Act (hereafter referred to as "insurance proceeds, etc." in this Article): <Amended by Presidential Decree No. 26040, Jan. 6, 2015>
1. The following amounts with regard to contracts for which any cause for the payment of insurance proceeds, etc. has not yet occurred as of the end of each period for the settlement of accounts:
(a) The amount reserved in a fixed level or higher to pay insurance proceeds;
(b) The amount accumulated to pay insurance money and refunds in the future;
(c) The amount of accumulated premiums corresponding to the period after the end of the accounting period of the premiums paid before the end of the accounting period;
2. The amount for which a lawsuit is pending on insurance proceeds, etc. or amounts for which payment has been fixed with regard to contracts for which causes for the payment of insurance proceeds, etc. have occurred as of the end of each accounting period, and amounts that have yet to be paid due to the unsettled amount of insurance proceeds payable, even though causes for the payment of such insurance proceeds have already occurred;
3. The amount reserved by an insurance company for distribution to policyholders.
(2) Where any insurance company has itself covered by re-insurance that satisfies all of the following requirements, the insurance company accepting such re-insurance shall accumulate liability reserves for the portions reinsured, and the insurance company covered by reinsurance shall indicate such liability reserves as separate assets (hereafter referred to as "reinsured assets" in this Article):
1. Insurance risks are transferred;
2. The relevant re-insurance contract is likely to cause damage to the insurance company accepting the re-insurance.
(3) Notwithstanding paragraph (2), each insurance company shall reduce the reinsured assets by the method determined and publicly notified by the Financial Services Commission, if the insurance company accepting reinsurance falls under any of the following subparagraphs:
1. Where it fails to satisfy the criteria for financial soundness prescribed by domestic or foreign supervisory agencies;
2. Where its credit appraisal rating conducted by an internationally recognized credit rating agency (including the credit appraisal rating conducted by a domestic credit appraisal rating agency corresponding thereto) within the latest three years is below investment grade: Provided, That any foreign insurer in which a foreign government rated by an internationally recognized credit rating agency within the latest three years as investment grade has invested at least a half of the capital shall be excluded herefrom.
(4) Any insurance company that runs non-life insurance business shall appropriate emergency-risk reserves pursuant to the criteria determined and publicly notified by the Financial Services Commission within 50% (in cases of guarantee insurance, 150%) of the aggregate of premiums for the relevant business year under Article 120 (1) of the Act. <Amended by Presidential Decree No. 25311, Apr. 15, 2014>
(5) "Matters prescribed by Presidential Decree" in Article 120 (3) of the Act means any of the following matters:
1. Matters concerning the accumulation of reserves aimed at offsetting future losses;
2. Matters concerning the disposition of profits and losses in connection with the appropriation of liability reserves and emergency risk reserves.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 64 (Accounting of Dividend Insurance Contracts)
(1) An insurance company shall, under Article 121 (1) of the Act, keep separate accounting of the profit and loss of dividend insurance contracts from the profit and loss of non-dividend insurance contracts at the end of each accounting period, and some of the policyholders' shares of profits from dividend insurance contracts may be accumulated for the reserves to replenish losses from dividend insurance contracts within the limit determined and publicly notified by the Financial Services Commission. <Amended by Presidential Decree No. 27080, Apr. 1, 2016>
(2) When offering dividends under Article 121 (2) of the Act, an insurance company shall determine the policyholders' shares and shareholders' shares pursuant to the criteria set by Ordinance of the Prime Minister, by taking into account the level of contribution to the profit generation, the financial soundness, etc. of the insurance company.
(3) An insurance company may offer dividends to dividend insurance contracts with any of the following financial resources: Provided, That the financial resources under subparagraph 1 may be used for the financial resources for accumulating reserves under paragraph (1):
1. Policyholders' shares generated from dividend insurance contracts in the relevant fiscal year;
2. Amounts accumulated in gross amount without being paid as dividends among policyholders' shares generated prior to the relevant fiscal year;
3. Shareholders' shares where the financial resources under subparagraphs 1 and 2 fall short of the dividend resources.
(4) Where any losses have been incurred in dividend insurance contracts, they shall be replenished by preferentially using reserves under paragraph (1), and where there remain any losses thereafter, they shall be replenished by the methods prescribed by Ordinance of the Prime Minister.
(5) Policyholders' shares in dividend insurance contracts shall not be used for any purpose other than financial resources for paying dividends to policyholders and for replenishing losses of the dividend insurance contracts.
(6) Matters necessary for distribution to policyholders of dividend insurance contracts, other than those specified in paragraphs (1) through (5), shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 64-2 (Accounting of Insurance Contracts other than Dividend Insurance Contracts)
(1) Accounting of assets, or profits or losses, of insurance contracts other than dividend insurance contracts under Article 121-2 of the Act shall be made by any of the following methods: <Amended by Presidential Decree No. 27080, Apr. 1, 2016>
1. Assets are not classified by insurance contract but managed as a whole; accrued profits or losses are classified by average liability reserve ratio for each insurance contract to that of the whole insurance contracts, and allocated proportionally for each insurance contract;
2. Assets are not classified by insurance contract but managed as a whole; accrued profits or losses are classified by ratio of funds already financed to funds needed for the acquisition of assets for each insurance contract, and allocated proportionally for each insurance contract;
3. Assets are classified by insurance contract; accrued profits or losses are directly allocated for each insurance contract;
4. Other methods of allocation, which are deemed reasonable by the Financial Services Commission.
(2) In case of following the method referred to in paragraph (1) 3 or 4, approval by the Financial Services Commission shall be obtained in advance.
(3) Detailed standards applicable for paragraphs (1) and (2) and other necessary matters shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
CHAPTER VI SUPERVISION
 Article 65 (Standards for Financial Soundness)
(1) Definitions of terms used in this Article shall be as follows:
1. The term "amount of solvency margin" means the amount obtained by subtracting deferred acquisition cost, goodwill and other amounts similar thereto which are determined and publicly notified by the Financial Services Commission, from capital, reserves for dividends to policyholders, bad debt allowances, subordinated borrowings and other amounts similar thereto which are determined and publicly notified by the Financial Services Commission;
2. The term "standard amount of solvency margin" means the results produced by converting any risks incurred while running an insurance business into the amount of money by the methods determined and publicly notified by the Financial Services Commission;
3. The term "solvency margin ratio" means the ratio obtained by dividing the amount of solvency margin by the standard amount of solvency margin.
(2) Standards for the financial soundness to be observed by insurance companies under Article 123 (1) of the Act shall be as follows:
1. Solvency margin ratio shall be maintained at not less than 100/100;
2. Soundness of assets, such as loan obligations, shall be regularly classified, and the bad debt allowances shall be accumulated;
3. Standards determined and publicly notified by the Financial Services Commission for the risks, liquidity and management of reinsurance of insurance companies shall be satisfied.
(3) When the Financial Services Commission intends to take measures against any insurance company, including orders to increase its capital or funds, or restrictions on the possession of high-risk assets, such as stocks, pursuant to Article 123 (2) of the Act, it shall take into account the following matters:
1. Whether the relevant measures are appropriate to protect policyholders;
2. Whether the relevant measures are necessary to prevent any insolvency of insurance companies, and to lead their sound management.
(4) The Financial Services Commission may determine and publicly notify details of the standards under paragraphs (1) through (3).
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 66 (Assessment of Financial Soundness)
The Financial Services Commission shall, under Article 123 (2) of the Act, assess the management status and risks, for the purpose of securing financial soundness of an insurance company.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 67 (Matters to be Published)
(1) "Matters prescribed by Presidential Decree" in Article 124 (1) of the Act means any of the following matters:
1. Matters relating to finances and profits and losses;
2. Matters relating to the raising and management of funds;
4. Data necessary for comparing premiums, such as insurance clauses and business manuals, premiums and refund money for cancellation, notified interest rate, etc.;
5. Other matters deemed necessary to be published for the protection of policyholders, which are determined and publicly notified by the Financial Services Commission.
(2) "Matters prescribed by Presidential Decree" in Article 124 (2) of the Act means any of the following matters:
1. Data necessary for comparing premiums, such as premiums, insurance proceeds, insurance period, risks guaranteed by insurance contracts, causes for exemption from liability of insurance companies, and notified interest rate, etc.;
2. Other matters deemed necessary for the protection of policyholders and the conclusion of insurance contracts, which are determined and publicly notified by the Financial Services Commission.
(3) The Financial Services Commission may determine and publicly notify detailed standards for the matters to be published under paragraphs (1) and (2), methods of and procedures for publication, etc.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 68 (Insurance Products Publication Committee)
(1) The insurance products publication committee established under Article 124 (3) of the Act (hereafter referred to as the "Committee" in this Article) shall deliberate on and determine important matters concerning the comparison or publication of insurance products which is performed by the insurance association.
(2) The Committee shall be comprised of nine members, including one chairperson.
(3) The Chairperson of the Committee shall be elected by the Committee from among its members, and the Committee shall be composed of the chief of department in charge of products in the Financial Supervisory Service, an executive officer in charge of products in the insurance association, an executive officer in charge of products in a premium rate calculation agency, and the following persons commissioned by the head of the insurance association: <Amended by Presidential Decree No. 26040, Jan. 6, 2015>
1. Two persons from among executive officers in charge of products in insurance companies or certified senior actuaries;
2. One person qualified as a judge, prosecutor, or attorney-at-law;
3. Two persons recommended by a consumer organization;
4. One person having considerable knowledge and experience in insurance.
(4) The term of office of members shall be two years: Provided, That the term of office of members who are the chief of department in charge of products in the Financial Supervisory Service, an executive officer in charge of products in the insurance association, and an executive officer in charge of products in a premium rate calculation agency shall be the period during which they hold the relevant office. <Amended by Presidential Decree No. 26040, Jan. 6, 2015; Presidential Decree No. 27414, Jul. 28, 2016>
(5) A meeting of the Committee shall be commenced with the presence of a majority of all incumbent members, and adopt a resolution with the consent of shall require the consent of a majority of those present.
(6) Matters necessary for the organization and operation of the Committee, other than those specified in paragraphs (1) through (5), shall be determined by the chairperson subject to resolution by the Committee.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 69 (Authorization of Mutual Agreement)
(1) Where any insurance company intends to obtain authorization for the conclusion, amendment or abolition of a mutual agreement under Article 125 (1) of the Act, it shall file with the Financial Services Commission an application stating each of the following matters, accompanied by a document prescribed by Ordinance of the Prime Minister:
1. Where a mutual agreement is concluded:
(a) Trade names or titles, the locations of main offices or principal offices of the parties to the mutual agreement;
(b) Title and terms of the mutual agreement;
(c) Time when the mutual agreement takes effect, and the period therefor;
(d) Reasons for effecting the mutual agreement;
(e) Where a store or office performs overall control over affairs concerning the mutual agreement, its title and location;
(f) In cases of a mutual agreement with a foreign insurer, the summary and present status of the business types and currently-run business of the said insurer;
2. Where a mutual agreement is amended:
(a) Descriptions under subparagraph 1 (a) and (b);
(b) Time when the mutual agreement subject to amendment takes effect, and the period therefor;
(c) Reasons for amending the mutual agreement and the details thereof;
3. Where a mutual agreement is abolished:
(a) Title of the mutual agreement to be abolished;
(b) Time when the abolition of the mutual agreement takes effect;
(c) Reasons for abolishing the mutual agreement.
(2) The Financial Services Commission shall, upon receiving a written application referred to in paragraph (1), examine each of the following matters and determine whether to grant authorization:
1. Whether the terms of the mutual agreement undermine fair competition between insurance companies;
2. Whether the terms of the mutual agreement infringe on the interests of policyholders.
(3) "Insignificant matters prescribed by Presidential Decree" in the provisos to Article 125 (1) and (3) of the Act means any of the following matters:
1. Change of members of a mutual agreement due to the change of the trade name of an insurance company, merger between insurance companies, establishment of a new insurance company, etc.;
2. Modifications which do not change substantive terms of a mutual agreement, such as changes of the structure of provisions, modification of words and phrases, etc.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 70 (Report on Amendments to Articles of Incorporation)
(1) Where the matters reported under Article 126 of the Act are contrary to this Act or related statutes and regulations, or infringe on the rights and interests of policyholders, insured persons, etc., the Financial Services Commission may demand the relevant insurance company to supplement them.
(2) Necessary matters concerning the methods of and procedures for reporting on amendments to the articles of incorporation under Article 126 of the Act shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 71 (Preparation and Change of Basic Documents)
(1) Matters to be reported in advance to the Financial Services Commission by an insurance company when it intends to prepare or change the basic documents (referring to the basic documents under subparagraph 3 of Article 5 of the Act; hereinafter the same shall apply) under Article 127 (2) 3 of the Act shall be as specified in attached Table 6: Provided, That this shall not apply where modification to the basic documents is limited to changes in organization of the contract clauses, wording, etc. while maintaining the original contents of the basic documents already reported. <Amended by Presidential Decree No. 26040, Jan. 6, 2015; Presidential Decree No. 27080, Apr. 1, 2016>
(2) Where an insurance company reports basic documents pursuant to Article 127 (2) of the Act, it shall submit a report on insurance products as determined and publicly notified by the Financial Services Commission along with the following documents by no later than 30 days (where it makes a report in which matters recommended pursuant to Article 127-2 (1) of the Act are reflected, referring to 15 days) before the date of beginning the sale thereof: Provided, That where the Financial Services Commission prescribes and publicly announces cases, such as where the details of basic documents are changed according to the amendments of other statutes, it may submit a report on insurance products by the deadline determined and publicly notified by the Financial Services Commission: <Amended by Presidential Decree No. 26040, Jan. 6, 2015>
1. Basic documents which have been verified and ascertained by a certified senior actuary under Article 184 (1) of the Act;
2. Where premiums, liability reserves or risk rates are changed, a certificate of a premium rate calculation agency or an independent certified actuary under Article 128 (2) of the Act verifying that the change of premiums, liability reserves or risk rates is appropriate.
(3) “Where it intends to change minor matters prescribed by Presidential Decree” in the proviso to Article 127 (2) of the Act means where an insurance company separately determines premium rates, among the matters to be entered in basic documents related to insurance products provided by the insurance company, as determined and publicly notified by the Financial Services Commission. <Newly Inserted by Presidential Decree No. 26917, Jan. 19, 2016>
(4) The Financial Services Commission may, if deemed necessary for the protection, etc. of policyholders, require the insurance companies to submit the list of sales of insurance products by quarter in accordance with Article 127 (3) of the Act by no later than the last day of the next month following the last day of each quarter, as determined and publicly notified by the Financial Services Commission. <Amended by Presidential Decree No. 26917, Jan. 19, 2016; Presidential Decree No. 27080, Apr. 1, 2016>
(5) The Financial Services Commission may, with regard to the insurance products whose ascertainment is deemed necessary for the protection, etc. of policyholders in accordance with Article 127 (3) of the Act, request the relevant insurance company to submit the basic documents verified and ascertained by a certified senior actuary under Article 184 (1) of the Act, specifying the grounds therefor in writing. <Amended by Presidential Decree No. 26917, Jan. 19, 2016>
(6) The Financial Services Commission may, where it deems verification of the appropriateness of premiums and liability reserves in respect of insurance products which have been ascertained under paragraph (5) is necessary, request the relevant insurance company to submit the verification certificate of a premium rate calculation agency or an independent certified actuary under Article 128 (2) of the Act and a report on insurance products under paragraph (2), in addition to the documents under paragraph (5), specifying the grounds therefor in writing. In such cases, the insurance company shall submit the verification certificate within 30 days from the date of a request for submission. <Amended by Presidential Decree No. 26040, Jan. 6, 2015; Presidential Decree No. 26917, Jan. 19, 2016>
(7) Detailed matters necessary for paragraphs (1) through (6) shall be determined and publicly notified by the Financial Services Commission. <Amended by Presidential Decree No. 26917, Jan. 19, 2016>
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 71-2 (Recommendation for Changes to Basic Documents)
Where the details of basic documents reported pursuant to Article 71 (2) or basic documents submitted pursuant to paragraph (5) of the same Article which are submitted by an insurance company pursuant to Article 127-2 (1) of the Act violate Article 128-3 or 129 of the Act, the Financial Services Commission may recommend the changes of such basic documents within 20 days (where it recommends again to make changes to matters to which it has recommended to make changes, referring to 10 days) from the date the report is accepted or the documents are submitted (referring to the date the verification certificate is submitted, where a verification certificate is submitted pursuant to Article 71 (6)). <Amended by Presidential Decree No. 26040, Jan. 6, 2015; Presidential Decree No. 26917, Jan. 19, 2016>
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 71-3 (Qualifications of Independent Actuarial Business Operators)
"Insurance actuarial business operator prescribed by Presidential Decree" in Article 128 (2) of the Act means an insurance actuarial business operator who is a corporation (limited to a corporation which has five or more standing certified insurance actuaries) registered under Article 183 (1) of the Act: Provided, That any of the following insurance actuarial business operators shall be excluded herefrom:
1. An insurance actuarial business operator who is performing insurance actuarial business which is entrusted by the relevant insurance company under Article 181 (1) of the Act;
2. An insurance actuarial business operator whose representative has been employed by the relevant insurance company within the last two years;
3. An insurance actuarial business operator whose representative or the spouse of the representative is a majority shareholder of the relevant insurance company;
4. An insurance actuarial business operator who is a subsidiary of the relevant insurance company;
5. Where an insurance actuarial business operator or the representative thereof has been subjected to any of the following measures within the last five years, the said insurance actuarial business operator:
(a) Warning or reprimand under Article 134 (1) 1 of the Act;
(b) Dismissal or suspension of performance of duties under Article 134 (1) 3 of the Act;
(c) Revocation of registration of the insurance actuarial business operator under Article 190 of the Act;
(d) Suspension of services or dismissal under Article 192 (1) of the Act.
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 71-4 (Management Standards of Basic Documents)
(1) "Any other matters prescribed by Presidential Decree, such as procedures, etc. for establishing and amending the management standards of basic documents" in Article 128-2 (2) 5 of the Act means any of the following matters:
1. Procedures for establishment and amendment of management standards of basic documents under Article 128-2 (1) of the Act (hereinafter referred to as "management standards of basic documents");
2. Matters concerning the sharing of responsibility of duties in respect of preparation and change of basic documents and the person responsible for management of basic documents;
3. Procedures for and methods of ascertaining whether executive officers and employees satisfy the management standards of basic documents and measures to be taken against the executive officers and employees who are in violation of the standards;
4. Other matters pertaining to the preparation and change of basic document for complying with the statutes and for protecting policyholders, which are determined and publicly notified by the Financial Services Commission.
(2) Where the Financial Services Commission deems that the management standards of basic documents reported by an insurance company under Article 128-2 (3) of the Act are inappropriate, it may order to change the relevant standards or to improve the relevant business within 15 days from the date of report.
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 71-5 (Principles for Preparing and Changing Basic Documents)
Matters to be observed by an insurance company under Article 128-3 (1) of the Act in preparing and changing its basic documents shall be as set forth in attached Table7.
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 71-6 (Evaluation on Understanding of Insurance Policies)
(1) Those subject to evaluation on their understanding of insurance policies pursuant to Article 128-4 (1) of the Act shall be as follows:
1. Two insurance consumers recommended by the Governor of the Financial Supervisory Service;
2. Two insurance consumers recommended by the President of the Korea Consumer Agency established under the Framework Act on Consumers;
3. One insurance consumer recommended by the head of a premium rate calculation agency;
4. One insurance expert recommended by the head of a premium rate calculation agency;
5. One insurance solicitor recommended by the head of an association comprised of life insurance companies (hereinafter referred to as “life insurance association”) from among insurance associations;
6. One insurance solicitor recommended by the head of an association comprised of non-life insurance companies (hereinafter referred to as “non-life insurance association”) among insurance associations;
7. One insurance-related legal expert recommended by the president of the Korea Insurance Research Institute that is an incorporated association established upon obtaining permission from the Financial Services Commission pursuant to Article 32 of the Civil Act.
(2) Standards for giving public notice of the findings of evaluation on understanding of insurance policies under Article 128-4 (1) of the Act shall be as follows:
1. Matters to be published: Standards for evaluation on understanding of insurance policies and findings of the evaluation pursuant to the relevant standards;
2. Methods of giving public notice: To post them on the website of the evaluation agency designated under Article 128-4 (2) of the Act;
3. Frequency of giving public notice: At least twice a year.
(3) Detailed matters necessary for standards and procedures for recommending those subject to evaluation on their understanding of insurance policies pursuant to paragraph (1) and other related matters shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 23179, Sep. 29, 2011]
 Article 72 (Matters to be Reported)
"Any other cases prescribed by Presidential Decree" in subparagraph 6 of Article 130 of the Act means any of the following cases:
1. Where an insurance company increases its capital or funds;
2. Where an insurance company passes a resolution on change in the organization under Article 21 of the Act;
3. Where an insurance company is punished under Chapter XIII of the Act;
4. Where an insurance company is subject to a disposition on defaults of tax or punished due to any violation of statutes on taxes;
5. Where an insurance company makes overseas investments under the Foreign Exchange Transactions Act, or establishes places of business and other offices in foreign countries;
6. Where an insurance company becomes a party to a lawsuit which has been filed by any person who is or has been a shareholder of an insurance company.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 73 (Financial Services Commission's Rights to Issue Orders)
(1) "Other necessary measures prescribed by Presidential Decree" in Article 131 (1) 6 of the Act means issuing orders to give public notice of matters necessary to protect policyholders.
(2) "Insignificant matters prescribed by Presidential Decree" in the proviso to Article 131 (2) of the Act means matters for which changes of basic documents are needed pursuant to amendments to statutes.
(3) Public notice under Article 131 (5) of the Act shall be given at least once in two or more daily newspapers with nationwide circulation, respectively, and where deemed necessary by the Financial Services Commission, it shall be notified in writing to policyholders, etc.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 73-2 (Public Notice of Sanctions)
(1) The Financial Services Commission may require an insurance company to publicly announce the fact that sanctions were imposed thereon, where the insurance company has received sanctions pursuant to Article 134 (3) of the Act in regards to matters described in paragraph (1) or (2) of the same Article, pursuant to the following classification:
1. Warning to the insurance company, recommendation for dismissal of any executive officer, or request for the suspension of performance of his or her duties: To post it on the Internet website of the relevant insurance company for not less than seven business days;
2. Corrective order, suspension of all or part of business, or cancellation of a license: To publish it on daily newspapers with nationwide circulation one or more times and to give public notice on the main office and business offices of the relevant insurance company for not less than seven working days.
(2) Detailed matters necessary for public notice of sanctions, other than those prescribed by paragraph (1), shall be determined and publicly notified by the Financial Services Commission.
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 74 (Mutatis Mutandis Application of Provisions for Data Submission, Inspection)
(1) "Business prescribed by Presidential Decree" in the former part of Article 136 (2) of the Act means any business listed in Article 59 (1) 2, 3 and 5.
(2) "Business prescribed by Presidential Decree" in the former part of Article 136 (3) of the Act means any business listed in Article 59 (1).
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
CHAPTER VII DISSOLUTION AND LIQUIDATION
 Article 75 (Matters to be Stated in Merger Contracts)
(1) Where insurance companies intend to obtain authorization of a merger under Article 139 of the Act, both companies shall jointly submit a written application along with the following documents to the Financial Services Commission within one month after the lapse of period for raising an objection under Article 141 (2) of the Act:
1. Merger contract;
2. Articles of incorporation of the company surviving after the merger, or of the company to be incorporated due to the merger;
3. Property list and balance sheet of each company;
4. Number of insurance contracts, amounts, number of policyholders of each company, and statistical table by area;
5. Other documents determined and publicly notified by the Financial Services Commission, which are necessary for authorization of the merger.
(2) If the company surviving after a merger under Article 153 (4) of the Act is a mutual company, the following matters shall be stated in the merger contract:
1. Where the surviving company has made a decision to increase the voting rights of members in its members' general meeting, the number of such voting rights;
2. Matters relating to the rights held by policyholders or members of the company to be extinguished by the merger at the members' general meeting of the surviving company;
3. Rules that prescribe the amounts to be paid to shareholders of the company to be extinguished by the merger, or contributors of the fund or members, the rules therefor;
4. Date of the shareholders' general meeting or the members' general meeting of each company, which is to make a resolution on the merger;
5. Where the time for the merger has been fixed, such time;
6. Matters determined and publicly notified by the Financial Services Commission, which are equivalent to subparagraphs 1 through 5.
(3) Where the company to be incorporated by a merger is a mutual company, the following matters shall be stated in the merger contract:
1. Matters stated in subparagraphs 2, and 4 through 7 of Article 34 of the Act, and the location of its main office;
2. Number of voting rights in the members' general meeting of the company to be incorporated by the merger, and matters relating to the allotment of voting rights to policyholders or members of each company;
3. Rules that prescribe the amounts to be paid to the shareholders, contributors of the fund or members of each company;
4. Amount of liability reserves and other reserves relating to insurance contracts to be transferred, and the method of computation thereof;
5. Total value of assets to be transferred, and the quantity and value by type thereof;
6. Matters determined and publicly notified by the Financial Services Commission, which are equivalent to subparagraphs 1 through 5.
(4) In cases of merger of a stock company and a mutual company, if the company surviving after the merger is a stock company, the following matters shall be stated in the merger contract:
1. Where the surviving company has made a decision to increase its capital, the amount of increase thereof;
2. In the case of subparagraph 1, the kind and number of new shares to be issued by the surviving company and the amount due, and matters relating to the allotment of new shares;
3. Matters stated in paragraph (2) 3 through 5;
4. Matters determined and publicly notified by the Financial Services Commission, which are equivalent to subparagraphs 1 through 3.
(5) In cases of merger of a stock company and a mutual company, if the company to be incorporated by the merger is a stock company, the merger contract shall state the following matters:
1. Matters stated in subparagraph 1 of Article 524 of the Commercial Act;
2. Kind and number of shares to be issued by the company to be incorporated by the merger and the amount due, and matters relating to the allotment of shares;
3. Matters stated in paragraph (3) 3 through 5;
4. Matters determined and publicly notified by the Financial Services Commission, which are equivalent to subparagraphs 1 through 3.
(6) Resolution of dissolution, transfer of insurance contracts, authorization procedure and methods of dissolution, merger, etc. and other necessary matters shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
CHAPTER VIII INVESTIGATION ON RELATED PERSONS
 Article 76 (Organization of Insurance Investigation Committee)
(1) The Insurance Investigation Committee under Article 163 (1) of the Act (hereinafter referred to as the "Investigation Committee") may consist of not more than 15 members to be appointed or commissioned by the Financial Services Commission, from among the following persons: <Amended by Presidential Decree No. 25311, Apr. 15, 2014; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28218, Jul. 26, 2017>
1. One public official belonging to the Financial Services Commission, who is designated by the said Commission;
2. One public official belonging to the Ministry of Health and Welfare, who is designated by the Minister thereof;
2-2. Deleted; <by Presidential Decree No. 28218, Jul. 26, 2017>
3. One public official belonging to the Korean National Police Agency designated by the Commissioner General of the Korean National Police Agency;
4. One public official under the jurisdiction of the Minister of the Korea Coast Guard, designated by him or her;
5. One person that is recommended by the Governor of the Financial Supervisory Service;
6. Each person recommended respectively by the head of the life insurance association, of the non-life-insurance association, and of the premium rate calculation agency;
7. Persons recommended by the head of an agency that is designated by the Financial Services Commission to be necessary for investigating insurance accidents;
8. Other persons who have abundant knowledge of and experience in insurance, such as the protection of rights and interests of insurance policyholders, the insured and the interested parties or investigation of insurance accidents.
(2) The Chairperson of the Investigation Committee (hereinafter referred to as "Chairperson") shall be elected from among its members.
(3) The term of office of the Investigation Committee members shall be three years.
(4) Matters necessary for the organization of the Investigation Committee shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 76-2 (Removal or Dismissal of Investigation Committee Member)
In any of the following cases, the Financial Services Commission may remove or dismiss the relevant member of the Investigation Committee:
1. Where a member becomes incapable of performing his or her duties due to a mental disorder;
2. Where it is found that a member committed any unlawful act in connection with his or her duties;
3. Where a member is deemed unsuitable to continue as a member for neglect of duties, injury to dignity, or any other ground;
4. Where a member voluntarily informs it is difficult for him or her to perform his or her duties.
[This Article Newly Inserted by Presidential Decree No. 27080, Apr. 1, 2016]
 Article 77 (Functions of the Investigation Committee)
The Investigation Committee shall deliberate on the following matters relating to the investigation of insurances:
1. Matters concerning the formulation and implementation of joint countermeasures for the efficient performance of investigation business under Article 162 of the Act;
2. Matters concerning the exchange of investigated information;
3. Matters concerning cooperation between related institutions, such as the implementation of joint investigation;
4. Matters concerning support for investigation;
5. Other matters referred by the Chairperson to the Investigation Committee.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 78 (Operation of the Investigation Committee)
(1) The Chairperson shall represent the Investigation Committee and preside over its meetings.
(2) Meetings of the Investigation Committee shall be convened when the Chairperson deems it necessary or when one third or more of the registered members request it.
(3) Meetings of the Investigation Committee shall commence with the attendance of a majority of the registered members and make decisions with the concurrent vote of a majority of members present.
(4) When the Chairperson of the Investigation Committee intends to convene a meeting under paragraph (2), he or she shall notify members in writing of the date, venue, and agenda of the meeting by not later than two days before the opening of the meeting: Provided, That the same shall not apply to cases where there exist any urgent reasons or it is inevitable.
(5) Where deemed necessary for the investigation of insurances, the Investigation Committee may request agencies and organizations under Article 76 (1) 7 to furnish data. <Amended by Presidential Decree No. 27080, Apr. 1, 2016>
(6) Matters necessary for the operation of the Investigation Committee shall be determined by the Chairperson following the resolution of the Investigation Committee.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 79 (Publication of Information Related to Investigation)
The Financial Services Commission may, under Article 164 of the Act, publish via newspapers, broadcasting, websites, etc., statistical data on the types of acts subject to investigation and the results of investigation, and promotional materials necessary for the prevention of offenses.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
CHAPTER IX PROTECTION OF THIRD PARTIES TO NON-LIFE INSURANCE CONTRACTS
 Article 80 (Scope of Non-Life Insurance Contracts Subject to Guarantee)
(1) "Non-life insurance contracts prescribed by Presidential Decree" in the main sentence of Article 166 of the Act means any of the following non-life insurance contracts: <Amended by Presidential Decree No. 24001, Jul. 31, 2012; Presidential Decree No. 24097, Sep. 7, 2012; Presidential Decree No. 26438, Jul. 24, 2015; Presidential Decree No. 27970, Mar. 29, 2017; Presidential Decree No. 29498, Jan. 22, 2019>
1. Liability insurance contracts concluded under Article 5 of the Guarantee of Automobile Accident Compensation Act;
2. Fire insurance contracts with a special agreement for indemnification for physical damage prescribed in Article 5 of the Act on the Indemnification for Fire-Caused Loss and the Purchase of Insurance Policies;
4. Non-life insurance contracts, the purchase of which is mandatory pursuant to Article 98 of the Seafarers' Act;
5. Non-life insurance contracts, the purchase of which is mandatory pursuant to Article 26 of the Installation and Utilization of Sports Facilities Act;
6. Non-life insurance contracts, the purchase of which is mandatory pursuant to Article 33 of the Excursion Ship and Ferry Business Act;
7. Non-life insurance contracts, the purchase of which is mandatory pursuant to Article 30 of the Elevator Facilities Safety Management Act;
8. Non-life insurance contracts, the purchase of which is mandatory pursuant to Articles 34 and 44 of the Water-Related Leisure Activities Safety Act;
9. Non-life insurance contracts, the purchase of which is mandatory pursuant to Article 25 of the Juvenile Activity Promotion Act;
10. Insurance contracts for guaranteeing compensation for oil pollution, the purchase of which is mandatory pursuant to Article 14 of the Compensation for Oil Pollution Damage Guarantee Act;
11. Aviation insurance contracts, the purchase of which is mandatory pursuant to Article 70 of the Aviation Business Act;
12. Non-life insurance contracts, the purchase of which is mandatory pursuant to Article 48 of the Fishing Management and Promotion Act;
13. Non-life insurance contracts, the purchase of which is mandatory pursuant to Articles 63 (1) and 67 (2) of the Enforcement Decree of the Road Traffic Act, and subparagraph 9 of attached Table 5 thereof;
14. Non-life insurance contracts, the purchase of which is mandatory pursuant to Article 53 of the Enforcement Decree of the Act on Contracts to which the State Is a Party;
15. Non-life insurance contracts, the purchase of which is mandatory pursuant to Article 51 of the Wildlife Protection and Management Act;
16. Automobile insurance contracts, the purchase of which is mandatory pursuant to the Guarantee of Automobile Accident Compensation Act;
17. Non-life insurance contracts prescribed by Ordinance of the Prime Minister, the purchase of which is mandatory pursuant to Acts and statutes other than subparagraphs 1 through 15.
(2) "Corporation prescribed by Presidential Decree" in the proviso to Article 166 of the Act means a corporation that is the policyholder of an insurance contract whose revenue premiums are not included in the scope of deposits, etc. prescribed in Article 3 (4) 1 of the Enforcement Decree of the Depositor Protection Act and a corporation liable to pay insurance premiums.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 81 (Contribution Ratio)
(1) An individual non-life insurance company (excluding a non-life insurance company that specializes in reinsurance and guarantee insurance; hereafter in this Article and Article 82, the same shall apply) shall, under Article 168 (1) of the Act, contribute to the non-life-insurance association, the amount obtained by multiplying the amount payable by the said association under Article 169 (1) of the Act to the third parties to a non-life insurance contract, by the ratio computed under paragraph (2).
(2) "Ratio prescribed by Presidential Decree" in Article 168 (1) of the Act means the ratio obtained by dividing the numerical mean amount of revenue premiums (referring to revenue premiums in the business year immediately preceding that during which a report was filed on insolvency under Article 167 of the Act; hereafter in this Article the same shall apply) and of liability reserves of an individual non-life insurance company, by the numerical mean amount of revenue premiums and liability reserves of entire non-life insurance companies: Provided, That in computing the said ratio, long-term insurance contracts determined and publicly notified by the Financial Services Commission shall not be included.
(3) Notwithstanding the provisions of paragraphs (1) and (2), a non-life insurance company that exclusively deals with automobile insurance shall contribute only the amount computed by applying the provisions of paragraphs (1) and (2) to insurance contracts under Article 80 (1) 1 and 16, and a non-life insurance company that does not deal with automobile insurance shall contribute the amount computed by applying the provisions of paragraphs (1) and (2) to insurance contracts under Article 80 (1) 2 through 15 and 17.
(4) Contributions by non-life insurance companies under paragraph (1) shall be made in installments by year, and an annual contribution money shall be determined and publicly notified by the Financial Services Commission within the amount of premiums referred to in Article 16 (1) of the Enforcement Decree of the Depositor Protection Act.
(5) A non-life insurance company shall pay contribution money under paragraph (1) to the non-life insurance association within one month from the date of receiving notice to pay the contribution from the said association: Provided, That where the head of the non-life insurance association deems that it is difficult for a non-life insurance company to pay contribution money in a lump sum due to problems, etc. in its management, the payment of contribution may be deferred within the limit of six months.
(6) Where any contribution money has not been paid until the time limit for payment under paragraph (5), a non-life insurance company shall contribute the amount obtained by multiplying the contribution money to be paid by the interest rate set by the head of the non-life insurance association on the basis of overdue interest rate applied at the time of loans of general funds by non-life insurance companies, in accordance with the overdue period.
(7) The head of the non-life insurance association may prescribe detailed standards necessary for the payment and management of contributions.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 82 (Payment of Insurance Proceeds)
(1) "Insurance proceeds prescribed by Presidential Decree" in Article 169 (1) of the Act means the amount of money which is obtained by deducting the guaranty amount under Article 18 (6) of the Enforcement Decree of the Depositor Protection Act from the amount obtained by computing, in accordance with the following standards, the insurance proceeds to be paid by a non-life insurance company that has filed a report on insolvency under Article 167 (1) of the Act, for physical damage of a third party having suffered damage pursuant to a non-life insurance contract falling under any subparagraph of Article 80 (1) (hereinafter referred to as "insolvency amount"):
1. In cases of an insurance contract for which the limit of insurance proceeds to be paid by the non-life insurance company is separately set by the relevant statutes among non-life insurance contracts falling under any subparagraph of Article 80 (1), the limit amount of insurance proceeds set in the relevant statutes;
2. In cases of an insurance contract for which the limit of insurance proceeds to be paid by the non-life insurance company is not separately set by the relevant statutes among non-life insurance contracts falling under any subparagraph of Article 80 (1), the amount set forth in Article 3 (1) of the Enforcement Decree of the Guarantee of Automobile Accident Compensation Act.
(2) Notwithstanding paragraph (1), an amount equivalent to 80/100 of the insolvency amount under paragraph (1) shall be paid within the limit not exceeding 100 million won per sufferer to insurance contracts under Article 80 (1) 16.
(3) The head of the non-life insurance association shall publicly announce those subject to payment of insurance proceeds, application period for payment of insurance proceeds, and time and method to pay insurance proceeds, etc. at least once on two or more daily newspapers with nationwide circulation, prior to the payment of insurance proceeds under paragraphs (1) and (2).
(4) The head of the non-life insurance association may set detailed standards in relation to the methods of and procedures for paying insurance proceeds, and where he or she sets such detailed standards, he or she shall promptly file a report thereon with the Financial Services Commission.
(5) Where the Financial Services Commission deems that many non-life insurance companies fall into management insolvency and confusion in the insurance markets may be caused due to the payment of contributions, it may reduce or adjust the insurance proceeds to be paid under the subparagraphs of paragraph (1) and paragraph (2).
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 83 (Financial Institutions Lending Funds)
"Any other financial institutions prescribed by Presidential Decree" in Article 171 (1) of the Act means any of the following financial institutions: <Amended by Presidential Decree No. 23496, Jan. 6, 2012; Presidential Decree No. 27556, Oct. 25, 2016>
1. Banks established with authorization granted under the Banking Act;
2. Korea Development Bank established under the Korea Development Bank Act;
3. Industrial Bank of Korea established under the Industrial Bank of Korea Act;
4. Nonghyup Bank established under the Agricultural Cooperatives Act;
5. Suhyup Bank established under the Fisheries Cooperatives Act;
6. Insurance companies;
7. Mutual savings banks established under the Mutual Savings Banks Act;
8. Credit unions established under the Credit Unions Act.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
CHAPTER X INSURANCE-RELATED ORGANIZATIONS
 Article 84 (Affairs of Insurance Associations)
"Other affairs prescribed by Presidential Decree" in Article 175 (3) 5 of the Act means any of the following affairs: <Amended by Presidential Decree No. 26040, Jan. 6, 2015; Presidential Decree No. 26517, Sep. 11, 2015>
1. Affairs entrusted under Article 194 (1) and (4) of the Act;
2. Affairs prescribed by other statutes to be performed by the insurance association;
3. Collecting information and preparing statistics related to the management of insurance companies;
4. Checking the actual status of automobile repair expenses;
5. Operating and managing special qualifications systems related to insurance solicitation;
5-2. Affairs concerning the collection, management and provision of careers of insurance solicitors and individual insurance agencies concerning solicitation (limited to matters determined and publicly notified by the Financial Services Commission);
6. Affairs concerning inquiry about insurance coverage, and affairs concerning credit information conducted with permission from the Financial Services Commission pursuant to Article 25 of the Credit Information Use and Protection Act;
7. Affairs outsourced by insurance companies and other organizations related to insurance within the limit of the establishment purposes;
8. Affairs concerning contribution to the society conducted by insurance companies through joint donation.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 85 (Authorization for Establishment of Premium Rate Calculation Agency)
(1) A person who intends to obtain authorization for the establishment of a premium rate calculation agency under Article 176 (1) of the Act shall file a written application stating the following matters with the Financial Services Commission:
1. Title;
2. Purpose of establishment;
3. Location of the office;
4. Matters concerning promoters and executive officers.
(2) A written application under paragraph (1) shall be accompanied by the following documents:
1. Articles of incorporation;
2. Business plans and statements of estimated revenues and expenditures for two years after the commencement of business;
3. Resumes of promoters;
4. Documents stating the types and methods of business;
5. Other documents deemed by the Financial Services Commission to be necessary for examining the application for establishment authorization.
(3) A person who files an application for authorization under paragraph (1) shall satisfy each of the following requirements:
1. He or she shall have professionals necessary for performing duties under the subparagraphs of Article 176 (3) of the Act;
2. He or she shall have executive officers, etc. with considerable knowledge and experience in insurance business;
3. He or she shall meet requirements under Article 10 (3) 1 and 2.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 86 (Affairs of Premium Rate Calculation Agency)
"Other affairs prescribed by Presidential Decree" in Article 176 (3) 6 of the Act means any of the following affairs: <Amended by Presidential Decree No. 23987, Jul. 24, 2012>
1. Affairs to furnish information on history of automobile accidents and the standard value of automobiles through utilization of retained information;
2. Affairs to operate computer networks for controlling insurance information furnished by insurance companies, etc.;
3. Affairs to accept insurances;
4. Affairs to compute premium rates for insurance contracts jointly accepted by insurance companies under mutual agreement of Article 125 of the Act (excluding insurance contracts whose premium rates for guaranteed risks are not computable due to the shortage of domestic empirical statistics, etc.);
5. Affairs entrusted under Article 194 (4) of the Act;
6. Affairs entrusted by the retirement pension business operator under Article 28 (2) of the Act on the Guarantee of Workers' Retirement Benefits;
7. Affairs prescribed by other statutes to be performed by the premium rate calculation agency.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 87 (Calculation and Verification of Net Insurance Premium Rates for Reference)
(1) The head of the premium rate calculation agency may present net insurance premium rates which have been reported to the Financial Services Commission by computing or adjusting a risk rate depending on the characteristics by insurance type and risk on the basis of empirical statistics, etc. of insurance companies (hereinafter referred to as "net insurance premium rates for reference") when any insurance company requests them.
(2) The report under paragraph (1) shall be filed by not later than 90 days before the scheduled commencement date of net insurance premium rates for reference. <Amended by Presidential Decree No. 27080, Apr. 1, 2016>
(3) The head of the premium rate calculation agency shall ascertain whether the net insurance premium rates for reference are pertinent, perform the verification thereof annually (every five years, in the case of life insurance and other similar insurance products determined and publicly notified by Financial Services Commission) in order to maintain reasonable levels of net insurance premium rates for reference, and submit the report on the said verification to the Financial Services Commission within six months after the end of each business year. <Amended by Presidential Decree No. 23479, Dec. 31, 2011; Presidential Decree No. 27080, Apr. 1, 2016>
(4) Other matters necessary for calculation and verification of net insurance premium rates for reference shall be determined and publicly notified by the Financial Services Commission. <Newly Inserted by Presidential Decree No. 27080, Apr. 1, 2016>
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 88 (Compilation, Management of Statistics)
(1) The head of the premium rate calculation agency may, for the purpose of calculation and verification of net insurance premium rates for reference, such as experience life table, request insurance companies to provide information on insurance contracts under Article 176 (5) of the Act at least once a year (once a month in the case of information on automobile insurance). In such cases, the furnished information on insurance contracts shall be utilized only for the calculation or verification of net insurance premium rates for reference.
(2) "Cases prescribed by Presidential Decree" in Article 176 (12) 4 of the Act means any of the following cases:
1. Where necessary for the conclusion or maintenance of insurance contracts and for the payment of insurance proceeds by an insurance company;
2. Where necessary for transferring insurance contracts under the Act or other Acts.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 89 (Procedures for and Scope of Utilization of Personal Information on Violations of Traffic Regulations and Validity of Driver's Licenses)
(1) The head of the premium calculation agency may request the head of an agency holding personal information on the violations of the traffic regulations or the validity of a driver's license pursuant to Article 176 (10) and (13) of the Act to provide the following personal information related to the violations of the traffic regulations or the validity of a driver's license: <Amended by Presidential Decree No. 25459, Jul. 14, 2014>
1. Name, resident registration number and driver's license number of a traffic offender;
2. Time and date, and items of traffic offense;
3. Name, resident registration number and driver's license number of a person who has obtained his or her driver's license;
4. Scope of a driver's license, whether the driver's license was suspended or revoked, the period of suspension, and the date of revocation.
(2) The head of the premium rate calculation agency shall calculate premium rates for traffic offenders on the basis of personal information on the violations of the traffic regulations provided pursuant to paragraph (1) 1 and 2, and may provide them to insurance companies or have them available for perusal by the insurance companies. <Amended by Presidential Decree No. 25459, Jul. 14, 2014>
(3) Personal information on the violations of the traffic regulations and the validity of a driver's license which has been provided to the head of the premium rate calculation agency pursuant to paragraph (1) may be utilized only where personal information falls under any of the following: <Amended by Presidential Decree No. 25459, Jul. 14, 2014>
1. Where the Financial Services Commission and the Governor of the Financial Supervisory Service utilize it for the supervision or inspection of calculation or application of premium rates;
2. Where the premium rate calculation agency utilizes it for computing premium rates;
3. Where any insurance company utilizes it in application of premium rates or affairs concerning the payment of insurance money in order to conclude, maintain and manage automobile insurance contracts.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 90 (Procedures for and Scope of Utilization of Statistics Relating to Diseases)
(1) The head of the premium rate calculation agency may request the heads of institutions retaining statistics pertaining to diseases under Article 176 (11) and (13) of the Act to furnish any of the following data (hereinafter referred to as "statistical data on diseases"):
1. Statistics relating to the type of disease, gender, age and occupation of a patient, and others, such as the outbreak, progress, results and treatment costs, etc. of diseases necessary for computing premium rates;
2. Statistics relating to the actual status of management of diseases necessary for computing premium rates.
(2) The head of the premium rate calculation agency shall calculate premium rates for diseases on the basis of statistical data on diseases provided under paragraph (1), and may provide them to insurance companies, or have them available for access by the insurance companies.
(3) Statistical data relating to diseases which have been provided to the head of the premium rate calculation agency under paragraph (1) may be utilized only in any of the following cases:
1. Where the Financial Services Commission and the Governor of the Financial Supervisory Service utilize them for the supervision or inspection of calculation or application of premium rates;
2. Where the premium rate calculation agency utilizes them for computing premium rates;
3. Where any insurance company utilizes them for applying premium rates in order to conclude, maintain and manage insurance contracts covering the relevant diseases.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 91 (Methods of and Procedures for Furnishing Information Retained by Premium Rate Calculation Agency)
(1) Where the premium rate calculation agency has furnished personal information retained by it to other persons under Article 176 (14) of the Act, it shall record and manage such matters as the persons to whom the information has been furnished, the furnished information, the purpose of furnishing the information, and other matters determined and publicly notified by the Financial Services Commission.
(2) The premium rate calculation agency shall formulate and operate regulations necessary for the security maintenance and control of private information provided under Articles 89 (1) and 90 (1) and other information retained by it.
(3) Detailed matters pertaining to persons in charge of private information retained by the premium rate calculation agency, and procedures of and methods for its utilization, etc., shall be determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 92 (Registration of Insurance Actuarial Business)
(1) Any person who intends to register his or her insurance actuarial business pursuant to Article 183 (1) of the Act shall file a written application stating each of the following matters with the Financial Services Commission:
1. Name (in the case of a corporation, trade name and the name of the representative);
2. Location of its office;
3. Type and scope of the business intended to be carried on;
4. Matters relating to employment of certified insurance actuaries under Article 93.
(2) A written application under paragraph (1) shall be accompanied by each of the following documents:
1. Articles of incorporation (for corporations only);
2. Resumes of the representative (in the case of a corporation, including executive officers) and insurance actuaries working for the applicant;
3. Documents stating the status of property for business purposes.
(3) The Financial Services Commission shall accept an application for registration made under paragraph (1) except in any of the following cases: <Newly Inserted by Presidential Decree No. 23479, Dec. 31, 2011>
1. Where the application for registration falls under Article 86 (1) 1 of the Act applied mutatis mutandis in Article 190 of the Act;
2. Where application documents for registration submitted under paragraphs (1) and (2) contain any false representation;
3. Where the application for registration violates any limitation imposed under this Act, this Decree, any statute.
(4) An insurance actuarial business operator registered under paragraphs (1) and (2) shall, when there is any change to the registered matters, file a report on the change with the Financial Services Commission within one week from the date such change occurs. <Amended by Presidential Decree No. 23479, Dec. 31, 2011>
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 93 (Standards for Insurance Actuarial Business Operation)
(1) A corporation intending to run an insurance actuarial business under Article 183 (2) of the Act shall keep two or more full-time certified insurance actuaries.
(2) When there occurs any vacancy in the office of full-time certified insurance actuaries under paragraph (1), it shall be filled within two months (within one month in cases of branches or business offices).
(3) Where the period of vacancy in the office of full-time certified insurance actuaries under paragraph (1) exceeds the period specified in paragraph (2), the insurance actuarial business operator shall be prohibited from carrying on the insurance actuarial business for such period.
(4) A person who intends to engage in insurance actuarial business shall be qualified as a certified insurance actuary under Article 183 (4) of the Act.
(5) An insurance actuarial business operator shall commence the business within one month from the registration date under Article 183 (4) of the Act: Provided, That the period may be extended where the Financial Services Commission deems there exists any inevitable reason.
(6) The business operation standards to be observed by an insurance actuarial business operator under Article 183 (4) of the Act shall be as follows:
1. He or she shall use the words "insurance actuary" in his or her trade name;
2. His or her closing date of accounting books shall conform to that of the insurance company.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 94 (Prohibited Conducts of Certified Senior Actuaries)
"Any other conduct prescribed by Presidential Decree" in Article 184 (3) 4 of the Act means any of the following conducts:
1. Neglecting insurance actuarial business without justifiable grounds;
2. Performing insurance actuarial business without making sufficient investigation or verification;
3. Providing, without permission, data provided on business, to any third party having no relations with insurance actuarial business.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 95 (Eligibility Requirements for Certified Senior Actuaries)
(1) A person who intends to become a certified senior actuary under Article 184 (5) of the Act shall meet the following requirements:
1. To be a certified actuary who has been registered under Article 182 (1) of the Act;
2. To have career experience engaging in insurance actuarial business for not less than ten years;
3. Not to be subject to measures under Articles 134 (1) 1 (applicable only to warning or censure) and 3, 190 or 192 (1) of the Act within the latest five years.
(2) When any person who has been appointed as a certified senior actuary is found to have failed to meet eligibility requirements under paragraph (1) at the time of his or her appointment, the insurance company shall dismiss him or her.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 95 (Eligibility Requirements for Certified Senior Actuaries)
(1) A person who intends to become a certified senior actuary under Article 184 (5) of the Act shall meet all of the following requirements: <Amended by Presidential Decree No. 29429, Dec. 24, 2018>
1. To be a certified actuary who has been registered under Article 182 (1) of the Act;
2. To have career experience engaging in insurance actuarial business for not less than ten years: in such cases, a person who intends to become a certified senior actuary of a non-life insurance company shall have career experience engaging in insurance actuarial business for not less than ten years, including career experience engaging in insurance actuarial business determined and publicly notified by the Financial Services Commission for not less than three years;
3. Not to be subject to measures under Article 134 (1) 1 (applicable only to warning or censure) and 3, 190 or 192 (1) of the Act within the latest five years.
(2) When any person who has been appointed as a certified senior actuary is found to have failed to meet eligibility requirements under paragraph (1) at the time of his or her appointment, the insurance company shall dismiss him or her.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
<<Enforcement Date: Jan. 1, 2022>> Article 95 (1) 2
 Article 96 (Authority of Certified Senior Actuaries and Guarantee of Independence in Performance of Services)
(1) A certified senior actuary may, under Article 184 (5) of the Act, request the insurance company to furnish information or data necessary for his or her service, and the insurance company in receipt of such request shall be prohibited from refusing to furnish such information or data and access thereto, without justifiable grounds.
(2) Certified senior actuaries may attend meetings of the board of directors (including committees within the board of directors under Article 393-2 of the Commercial Act) in relation with their performance of business.
(3) When any certified senior actuary has verified or confirmed matters relating to the business under Article 184 (1) of the Act, he or she shall submit a written opinion thereon (hereinafter referred to as "written opinion of a certified senior actuary on his or her verification") to the board of directors, auditors or auditing committee (hereafter in this Article, referred to as the "board of directors, etc."): Provided, That the written opinion of a certified senior actuary on his or her verification with regard to matters determined and publicly notified by the Financial Services Commission may substitute submittal of opinions to the board of directors, etc. by submitting it to the representative director.
(4) The board of directors, etc. in receipt of a report under paragraph (3) shall take necessary measures pursuant to the written opinion of a certified senior actuary on his or her verification: Provided, That where it is deemed that the opinions of a certified senior actuary is inadequate, the board of directors, etc. may refuse it.
(5) An insurance company shall provide necessary personnel and facilities to allow a certified senior actuary to perform his or her business smoothly, and the detailed standards for such personnel and facilities shall be determined and publicly notified by the Financial Services Commission.
(6) No insurance company shall give any unjustifiable disadvantage to a certified senior actuary in personnel matters on account of reasons pertaining to performance of his or her service.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 96-2 (Obligation to Employ Certified Damage Adjusters)
"Insurance company prescribed by Presidential Decree" in the main sentence of Article 185 of the Act means any of the following insurance companies:
1. An insurance company that sells non-life insurance products (excluding guarantee insurance contracts);
2. An insurance company that sells Type 3 insurance products.
[This Article Newly Inserted by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 97 (Registration of Damage Adjusting Business)
(1) A person who intends to register his or her damage adjusting business pursuant to Article 187 (1) of the Act shall file a written application stating each of the following matters with the Financial Services Commission:
1. Name (in the case of a corporation, trade name and the name of the representative);
2. Location of its office;
3. Type and scope of the business he or she intends to carry on;
4. Matters relating to the employment of certified damage adjusters under Article 98.
(2) A written application under paragraph (1) shall be accompanied by the following documents:
1. Articles of incorporation (for corporations only);
2. Resumes of the representative (in the case of a corporation, including executive officers) and certified damage adjusters working for the applicant;
3. Documents stating the status of property for business purposes.
(3) The Financial Services Commission shall accept an application for registration made under paragraph (1) except in any of the following cases: <Newly Inserted by Presidential Decree No. 23479, Dec. 31, 2011>
1. Where the application for registration falls under Article 86 (1) 1 of the Act applied mutatis mutandis in Article 190 of the Act;
2. Where application documents for registration submitted under paragraphs (1) and (2) contain any false representation;
3. Where the application for registration violates any limitation imposed under this Act, this Decree, any statute.
(4) A damage adjusting business operator registered under paragraphs (1) and (2) shall, when there is any change to the registered matters, file a report thereon with the Financial Services Commission within one week from the date such change occurs. <Amended by Presidential Decree No. 23479, Dec. 31, 2011>
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 98 (Standards for Operation of Damage Adjusting Business)
(1) A corporation intending to run damage adjusting business under Article 187 (2) of the Act shall keep two or more full-time certified damage adjusters. In such cases, one or more full-time certified damage adjusters shall be kept for each type of business to be run pursuant to the classification of certified damage adjusters prescribed by Ordinance of the Prime Minister.
(2) Where any corporation under paragraph (1) intends to establish branches or business offices, it shall keep one or more certified damage adjusters for each type of business to be run pursuant to the classification of certified damage adjusters prescribed by Ordinance of the Prime Minister.
(3) When there occurs any vacancy in the office of full-time certified damage adjusters under paragraph (1) or (2), it shall be filled within two months (within one month in cases of branch offices or business offices).
(4) Where the period of vacancy in the office of full-time certified damage adjusters under paragraph (1) or (2) exceeds the period specified in paragraph (3), the insurance actuarial business operator shall be prohibited from running the damage adjusting business for such period.
(5) A person who intends to engage in damage adjusting business as an individual under Article 187 (4) of the Act shall be qualified as a certified damage adjuster.
(6) A damage adjusting business operator shall commence the business within one month from the registration date under Article 183 (4) of the Act: Provided, That the period may be extended where the Financial Services Commission deems there exists any inevitable reason.
(7) The business operation standards to be observed by a damage adjusting business operator under Article 187 (4) of the Act shall be as set forth in the following subparagraphs:
1. He or she shall use the words "damage adjustment" in his or her trade name;
2. His or her closing date of accounting books shall conform to that of the insurance company.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 99 (Duties of Certified Damage Adjusters)
(1) “Manner prescribed by Presidential Decree” in Article 189 (1) of the Act means writing, text-message, e-mail, facsimile or other similar methods. <Newly Inserted by Presidential Decree No. 29089, Aug. 7, 2018>
(2) A certified damage adjuster or damage adjusting business operator who is entrusted with damage adjusting services by an insurance company shall obtain the consent of the insured where sensitive information referred to in Article 23 (1) of the Personal Information Protection Act, such as health information of the insured, is included in a damage evaluation statement under Article 189 (1) of the Act, and he or she shall delete the relevant sensitive information or make it unidentifiable where he or she fails to obtain such consent. <Newly Inserted by Presidential Decree No. 29089, Aug. 7, 2018>
(3) "Any other conduct prescribed by Presidential Decree" in Article 189 (3) 7 of the Act means any of the following conduct: <Amended by Presidential Decree No. 29089, Aug. 7, 2018>
1. Performing damage adjustment other than the registered business lines;
2. Performing damage adjustment on the insurance accidents of himself or herself or a person having interests with himself or herself as prescribed by Ordinance of the Prime Minister;
3. Performing damage adjustment on the insurance accidents related to insurance contracts solicited by a person having interests with himself or herself as prescribed by Ordinance of the Prime Minister (excluding acts by any certified damage adjuster belonging to an insurance company or a damage adjusting corporation in which an insurance company has invested, to perform damage adjustment on the insurance accidents related to insurance contracts that have been concluded by the said insurance company in which he or she belongs, or an insurance company in which the said insurance company has invested).
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 100 (Entrustment of Financial Services Commission's Affairs)
(1) The Financial Services Commission shall entrust the Governor of the Financial Supervisory Service with the affairs referred to in attached Table 8, under Article 194 (3) of the Act.
(2) The Governor of the Financial Supervisory Service shall file a report on the details of performance of affairs entrusted under paragraph (1) semiannually with the Financial Services Commission: Provided, That the Financial Services Commission may determine the report period otherwise for the affairs determined and publicly notified by the Financial Services Commission.
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 101 (Entrustment of Affairs of Governor of Financial Supervisory Service)
(1) The Governor of the Financial Supervisory Service shall, under Article 194 (4) of the Act, entrust the heads of insurance associations with the following affairs:
1. Matters concerning the revocation of registration of an insurance solicitor or notification of an order for suspension of business under Article 86 (4) of the Act;
2. Revocation of registration of an insurance agency or notification of an order for suspension of business under Article 88 (3) of the Act;
3. Receipt of reports concerning insurance solicitors, among matters prescribed in Article 93 (1) 1 through 6 and 8 of the Act;
4. Receipt of reports concerning insurance agencies, among matters prescribed in Article 93 (1) of the Act.
(2) The Governor of the Financial Supervisory Service shall, under Article 194 (4) of the Act, entrust the heads of premium rate calculation agencies with each of the following affairs, among affairs relating to examinations under Articles 182 (1) and 186 (1) of the Act:
1. Issuance and acceptance of applications for taking examinations;
2. Execution of examinations and the affairs incidental thereto.
(3) The Governor of the Financial Supervisory Service may entrust the heads of insurance associations or the heads of insurance-related organizations under Article 178 of the Act with part of the inspection duties for business activities done by each of the insurance agencies and solicitors belonging thereto, among inspection duties for insurance agencies under Article 136 of the Act. In such cases, the organization entrusted with the inspection duties shall have an organizational structure to perform such entrusted inspection duties fairly and independently and obtain confirmation from the Governor of the Financial Supervisory Service in advance.
(4) The Governor of the Financial Supervisory Service may set standards for the subjects, scope, methods, procedures, etc. of entrusted inspection duties under paragraph (3).
(5) Articles 11 (2) and (3), 12 (1) and (3), and 13 through 16 of the Regulations on Devolution and Entrustment of Administrative Competence shall apply mutatis mutandis to the entrustment of inspection duties under paragraph (3).
[This Article Wholly Amended by Presidential Decree No. 22637, Jan. 24, 2011]
 Article 102 (Management of Sensitive Information and Personally Identifiable Information)
(1) The Financial Services Commission (or any person entrusted with the business affairs of the Financial Services Commission pursuant to Article 194 of the Act or Article 100 of this Decree) or the Governor of the Financial Supervisory Service (or any person entrusted with the business affairs of the Governor of the Financial Supervisory Service pursuant to Article 194 of the Act or Article 101 of the Decree) may manage data containing any resident registration number, passport number, driver’s license number or alien registration number prescribed in Article 19 of the Enforcement Decree of the Personal Information Protection Act in extenuating circumstances to conduct the following affairs:
1. Affairs concerning reporting on the establishment of local offices in Republic of Korea prescribed in Article 12 of the Act;
2. Affairs concerning deposit and management of business bonds prescribed in Article 89 of the Act;
3. Affairs concerning processing of matters to be reported by insurance solicitors, etc. prescribed in Article 93 of the Act;
4. Affairs concerning exceptional approval to exceed the asset management ratio prescribed in Article 107 of the Act;
5. Affairs concerning reporting, etc. on transactions with large shareholders prescribed in Article 111 of the Act;
6. Affairs concerning requests to submit data from large shareholders, etc. prescribed in Article 112 of the Act;
7. Affairs concerning methods, etc. of appraising assets prescribed in Article 114 of the Act;
8. Affairs concerning approval to hold subsidiaries and reporting on subsidiaries prescribed in Article 115 or 117 of the Act;
9. Affairs concerning submission of financial statements, etc. prescribed in Article 118 of the Act;
10. Affairs concerning deliberation on accumulation, etc. of liability reserves prescribed in Article 120 of the Act;
12. Affairs concerning authorization for dissolution, merger, transfer of contracts, etc. prescribed in Article 139 of the Act;
13. Affairs concerning authorization for transfer or acquisition of insurance business prescribed in Article 150 of the Act;
14. Affairs concerning appointment and dismissal of liquidators prescribed in Article 156 of the Act;
15. Affairs concerning supervision, etc. of liquidators prescribed in Article 160 of the Act;
16. Affairs concerning organization of the Insurance Investigation Committee prescribed in Article 163 of the Act.
(2) The Financial Services Commission (or any person entrusted with the business affairs of the Financial Services Commission pursuant to Article 194 of the Act or Article 100 of this Decree) or the Governor of the Financial Supervisory Service (or any person entrusted with the business affairs of the Governor of the Financial Supervisory Service pursuant to Article 194 of the Act or Article 101 of the Decree) may manage health information prescribed in Article 23 of the Personal Information Protection Act, information constituting any criminal history record prescribed in subparagraph 2 of Article 18 of the Enforcement Decree of the same Act, or data containing any resident registration number, passport number, driver’s license number or alien registration number prescribed in Article 19 of the said Enforcement Decree in extenuating circumstances to conduct the following affairs: <Amended by Presidential Decree No. 25532, Aug. 6, 2014; Presidential Decree No. 27414, Jul. 28, 2016>
1. Affairs concerning approval for entering into insurance contracts prescribed in the proviso to Article 3 of the Act or Article 7 of this Decree;
2. Affairs concerning licenses, approval, preliminary licenses, etc. prescribed in Articles 4 through 7 of the Act;
4. Affairs concerning calculation of an amount to be accumulated as reserves for compensating for loss prescribed in Article 20 (3) of the Act;
5. Affairs concerning revocation, etc. of a licenses for foreign insurers’ local branches prescribed in Article 74 of the Act;
6. Affairs concerning the registration of and the management and administration of qualification examinations for insurance solicitors, insurance agencies, insurance brokers, insurance actuaries, insurance actuarial business, claim adjusters and claim adjusting business prescribed in Articles 84, 87, 89, 182, 183, 186, and 187 of the Act;
7. Affairs concerning revocation of registration, suspension of business of, and sanctions against insurance solicitors, insurance agencies, insurance brokers, insurance actuaries, senior insurance actuaries, insurance actuarial business operators, damage adjusters, and damage adjusting business operators prescribed in Article 86, 88, 90, 190 or 192 of the Act;
8. Affairs concerning reporting prescribed in Article 130 of the Act;
9. Affairs concerning submission of data, inspections, sanctions, notification, subsequent follow-up measures, etc. prescribed in Article 133, 134 (including cases applied mutatis mutandis in Article 136 of the Act), 135 or 179 of the Act;
10. Affairs concerning investigations, subsequent follow-up measures, etc. prescribed in Article 162 of the Act;
11. Affairs concerning imposition of penalty surcharges prescribed in Article 196 of the Act;
12. Deleted. <by Presidential Decree No. 27414, Jul. 28, 2016>
(3) A premium rate calculation agency may manage data containing personal information referred to in the main sentence of paragraph (2), in extenuating circumstances to conduct the affairs prescribed in Article 176 (3) 1 and 2 of the Act and subparagraph 2 of Article 86 of this Decree.
(4) The head of an insurance association may manage health information prescribed in Article 23 of the Personal Information Protection Act or data containing any resident registration number, passport number, driver’s license number or alien registration number prescribed in Article 19 of the Enforcement Decree of the aforesaid Act in extenuating circumstances to conduct the following affairs: <Amended by Presidential Decree No. 25532, Aug. 6, 2014; Presidential Decree No. 26040, Jan. 6, 2015>
1. Affairs required when verifying the conclusion of dual contracts concluded under Article 95-5 of the Act or for verifying insurance contracts concluded under Article 7 (2) of the Decree;
2. Affairs required when implementing a mutual agreement authorized by the Financial Services Commission prescribed in Article 125 of the Act;
3. Affairs concerning payment of insurance proceeds or requests for submitting data prescribed in Article 169 or 170 of the Act;
3-2. Affairs concerning the operation and management of training courses regarding the solicitation of variable insurance contracts concluded under Article 56 (2);
4. Affairs concerning inspections of the actual status of automobile repair expenses prescribed in subparagraph 4 of Article 84;
4. 2. Affairs concerning the collection, management and provision of careers of insurance solicitors and individual insurance agencies concerning solicitation prescribed in subparagraph 5-2 of Article 84;
5. Affairs concerning inquiries about the purchase of insurance prescribed in subparagraph 6 of Article 84.
(5) An insurance company may manage health information (hereafter referred to as “health information” in this paragraph) among sensitive information prescribed in Article 23 of the Personal Information Protection Act or data containing any resident registration number, passport number, driver’s license number or alien registration number (hereafter referred to as “personally identifiable information” in this paragraph) prescribed in Article 19 of the Enforcement Decree of the aforementioned Act according to the following classifications to the extent necessary for conducting the following affairs: <Newly Inserted by Presidential Decree No. 23826, Jun. 1, 2012; Presidential Decree No. 28142, Jun. 20, 2017>
1. Affairs concerning conclusion, maintenance and management of an insurance contract for the benefit of a third party, and payment of insurance proceeds, etc. prescribed in Article 639 of the Commercial Act: Health information and personally identifiable information of the insured;
2. Affairs to fulfill the obligation to indemnify for any loss to a third person prescribed in Articles 719 (including re-insurance contracts applied mutatis mutandis in Article 726 of the Commercial Act) and 726-2 of the Commercial Act: Health information and personally identifiable information of the third person;
3. Affairs concerning designation or change of an insurance beneficiary prescribed in Article 733 of the Commercial Act: Personally identifiable information of the insurance beneficiary;
4. Affairs concerning conclusion, maintenance and management of a group insurance contract, and payment of insurance proceeds, etc. prescribed in Article 735-3 of the Commercial Act: Health information and personally identifiable information of the insured;
5. Affairs concerning the conclusion, maintenance and management of an insurance contract that covers the loss incurred because a lessee of a house prescribed in Article 2 of the Housing Lease Protection Act has failed to get a refund of the security deposit for the leased house, which is a guarantee insurance contract concluded under Article 1-2 (3) 4, and the payment of the covered insurance claim, etc.: Personally identifiable information about a lessor.
(6) An insurance company, etc. may manage data including the resident registration numbers prescribed in subparagraph 1 of Article 19 of the Enforcement Decree of the Personal Information Protection Act in extenuating circumstances to conduct affairs concerning the registration of and reporting by insurance solicitors and insurance agencies prescribed in Articles 84, 87, and 93 of the Act. <Newly Inserted by Presidential Decree No. 25532, Aug. 6, 2014>
(7) A claim adjuster or claim adjusting business operator may manage data including the resident registration numbers prescribed in subparagraph 1 of Article 19 of the Enforcement Decree of the Personal Information Protection Act with the consent of the relevant policyholders, etc., in extenuating circumstances to conduct affairs prescribed in Article 188 of the Act. <Newly Inserted by Presidential Decree No. 25532, Aug. 6, 2014>
(8) Where it is inevitable to conduct affairs concerning the comparison and public announcement of premiums for auto insurance contracts pursuant to Article 124 (2) or (5) of the Act, any of the following persons may manage data including resident registration numbers prescribed in subparagraph 1 of Article 19 of the Enforcement Decree of the Personal Information Protection Act: <Newly Inserted by Presidential Decree No. 27923, Feb. 28, 2017>
1. An insurance association;
2. A person who is other than an insurance association, who compares and publicly announces matters concerning insurance contracts pursuant to Article 124 (5) of the Act.
[This Article Newly Inserted by Presidential Decree No. 23488, Jan. 6, 2012]
 Article 103 (Reexamination of Regulations)
The Financial Services Commission shall examine the appropriateness of the following subparagraphs every three years based on the reference date specified in the following subparagraphs (referring to the period until the day falling on the reference date of every third year) and take measures such as improvement:
1. Business standards, etc. for insurance agencies, etc. of financial institutions pursuant to Article 40: January 1, 2014;
2. Extent of holding of subsidiaries and requirements for approval thereof under Article 59: January 1, 2014.
[This Article Newly Inserted by Presidential Decree No. 25050, Dec. 30, 2013]
 Article 104 (Guidelines for Imposing Administrative Fines)
The guidelines for imposing administrative fines provided for in Article 209 (1) through (5) of the Act shall be as prescribed in attached Table 9. <Amended by Presidential Decree No. 28383, Oct. 17, 2017>
[This Article Newly Inserted by Presidential Decree No. 25311, Apr. 15, 2014]
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on August 30, 2003: Provided, That the amended provisions of Articles 27, 28, 30, 31, 34, 35, 96 (5) and attached Table 2 (excluding Remark 2 of the requirements for registration of insurance agencies) shall enter into force on August 30, 2004, and the amended provisions of Article 29 shall enter into force on August 30, 2006, respectively.
Article 2 Deleted. <by Presidential Decree No. 20757, Mar. 28, 2008>
Article 3 (Applicability concerning Approval of Controlling Shareholder)
The amended provisions of Article 11 shall apply to persons meeting the requirements of Article 11 (1) due to acquisition of stocks after this Decree enters into force.
Article 4 (Special Cases for Policyholders' Shares in Dividend Insurance Contracts)
Notwithstanding the amended provisions of Article 64 (5), any insurer meeting the standards set by the Financial Supervisory Commission may use policyholders' shares under Article 64 (3) 1 for replenishing carry-over deficits until March 31, 2006.
Article 5 (Transitional Measures concerning Capital or Funds)
Notwithstanding the amended provisions of Article 12, an insurer at the time this Decree enters into force shall be deemed to have paid capital or funds meeting the said amended provisions.
Article 6 (Transitional Measures concerning Business Funds of Foreign Insurers)
Notwithstanding the amended provisions of Article 14, a foreign insurer at the time this Decree enters into force shall be deemed to have paid business funds meeting the said amended provisions.
Article 7 (Transitional Measures concerning Concurrently Operable Insurance Type)
Notwithstanding the amended provisions of Article 15 (2), the previous provisions shall govern group insurance contracts and their renewed contracts of non-life insurance companies that are valid at the time this Decree enters into force.
Article 8 (Transitional Measures concerning Insurance Solicitors)
A person who has been registered as an insurance solicitor under the previous provisions at the time this Decree enters into force shall, in accordance with the classification of the company to which he or she belongs, be deemed to be a life insurance solicitor or Type 3 insurance solicitor, or a non-life insurance solicitor or third-party insurance solicitor under Article 27 (1), respectively.
Article 9 (Transitional Measures concerning Insurance Agencies)
A person who has been registered as a personal insurance agency or a non-life insurance agency under the previous provisions at the time this Decree enters into force, shall be deemed to be a life insurance solicitor or Type 3 insurance solicitor, or a non-life insurance solicitor or third-party insurance solicitor under Article 30 (1), respectively.
Article 10 (Transitional Measures concerning Certified Insurance Brokers)
A person who has been registered as a personal insurance broker or a non-life insurance broker under the previous provisions at the time this Decree enters into force, shall be deemed to be a life insurance solicitor or Type 3 insurance solicitor, or a non-life insurance solicitor or third-party insurance solicitor under Article 34 (1), respectively.
Article 11 (Transitional Measures concerning Classification, Registration and Business Scope of Insurance Solicitors)
Previous provisions shall govern the classification, registration and business scope of insurance solicitors, insurance agencies and certified insurance broker until August 29, 2004.
Article 12 (Transitional Measures concerning Operation of Assets of Special Accounts)
An insurer who has exceeded the limit under the amended provisions of Article 53 (1) 1 through 11 at the time this Decree enters into force shall satisfy the said amended provisions by not later than the date on which three years elapse from the enforcement date of this Decree, and submit a written detailed plan for implementing it to the Financial Supervisory Commission by not later than the date on which one month elapses from the enforcement date of this Decree, and obtain its approval therefor.
Article 13 Deleted. <by Presidential Decree No. 21911, Dec. 29, 2009>
Article 14 (Transitional Measures concerning Number of Certified Insurance Actuaries and Certified Damage Adjusters to be Placed by Insurance Actuarial Business Operators and Damage Adjusting Business Operators)
The number of certified insurance actuaries and certified damage adjusters to be placed by an insurance actuarial business operator and a damage adjusting business operator that has been registered in the Financial Supervisory Commission at the time this Decree enters into force, shall be deemed, notwithstanding the amended provisions of Articles 93 and 98 (1), to have placed certified insurance actuaries and certified damage adjusters meeting the said amended provisions.
Article 15 (Definitions of Organizations)
(1) "Organizations prescribed by Presidential Decree" in the proviso to Article 4 of the Addenda of the Act means corporations or organizations having five or more workers or constituents, which meet the standards set by the Financial Supervisory Commission.
(2) "Scale prescribed by Presidential Decree" in Article 24 (4) of the Addenda of the Act means two trillion won.
Article 16 (Relationship to Other Statutes and Regulations)
Where the previous provisions of the Enforcement Decree of the Insurance Business Act are cited in other statutes and regulations at the time this Decree enters into force, if there exist any corresponding provisions in this Decree, the corresponding provisions in this Decree shall be deemed to have been cited in lieu of the previous provisions.
ADDENDA <Presidential Decree No. 18297, Feb. 28, 2004>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 1, 2004.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 18312, Mar. 17, 2004>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 18325, Mar. 22, 2004>
Article 1 (Enforcement Date)
(1) This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
(2) Omitted.
Articles 2 through 13 Omitted.
ADDENDA <Presidential Decree No. 18343, Mar. 29, 2004>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 30, 2004.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 18596, Dec. 3, 2004>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 6, 2004.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 18736, Mar. 8, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 18740, Mar. 18, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 18761, Mar. 31, 2005>
This Decree shall enter into force on April 1, 2005: Provided, That the amended provisions of Article 15 (1) 2 and subparagraph 6 of Article 86 shall enter into force on December 1, 2005.
ADDENDA <Presidential Decree No. 18767, Mar. 31, 2005>
(1) (Enforcement Date) This Decree shall enter into force on April 1, 2005.
(2) and (3) Omitted.
ADDENDA <Presidential Decree No. 19297, Jan. 26, 2006>
(1) (Enforcement Date) This Decree shall enter into force on April 1, 2006.
(2) through (4) Omitted.
ADDENDA <Presidential Decree No. 19422, Mar. 29, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 2006.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 19493, May 30, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 1, 2006.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 20120, Jun. 28, 2007>
This Decree shall enter into force on July 4, 2007.
ADDENDUM <Presidential Decree No. 20223, Aug. 17, 2007>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 20550, Jan. 18, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 20, 2008.
Article 2 (Applicability to Requirements of Majority Shareholder)
The amended provisions of annexed Table 2 shall apply from the first application under Article 9 (1) filed to the Financial Services Commission after this Decree enters into force.
Article 3 (Applicability to Approval Requirements of Majority Shareholder)
The amended provisions of annexed Table 2-2 shall apply from the first application for approval under Article 6 (4) of the Act after this Decree enters into force.
ADDENDA <Presidential Decree No. 20653, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 20757, Mar. 28, 2008>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 20823, Jun. 13, 2008>
This Decree shall enter into force on June 15, 2008.
ADDENDA <Presidential Decree No. 20947, Jul. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2009. (Proviso Omitted.)
Articles 2 through 28 Omitted.
ADDENDA <Presidential Decree No. 21480, May 6, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 8, 2009.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 21518, May 29, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 1, 2009.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 21765, Oct. 1, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 21911, Dec. 29, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 44, 67 and 71 and attached Table 1 shall enter into force on April 1, 2010, whereas the amended provisions of Article 63 (2) and (3) shall enter into force on April 1, 2011.
Article 2 (Transitional Measures concerning Types of Insurance)
Each insurer which has obtained permission for title insurance under the previous provisions at the time this Decree enters into force shall be deemed to have obtained permission for real estate title insurance under Article 8 (1) 3.
Article 3 Deleted. <by Presidential Decree No. 25887, Dec 23, 2014>
Article 4 (Special Cases concerning Premium Computation System)
Notwithstanding the amended provisions of Articles 44, 67 and 71 and attached Table 1, any insurer may apply previous provisions to the computation, comparison, notification and announcement of premiums and liability reserves until the business year starting after January 1, 2012.
ADDENDA <Presidential Decree No. 22151, May 4, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 5, 2010.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 22467, Nov. 2, 2010>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 22493, Nov. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 18, 2010.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 22637, Jan. 24, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 24, 2011: Provided, That the amended provisions of subparagraphs 1 (applicable only to the amended part pertaining to training courses and education), 2 (applicable only to the amended part pertaining to training courses and education), and 3 (applicable only to the amended part pertaining to training) of attached Table 3 shall enter into force on July 24, 2011; the amended provisions of Article 96-2, on January 24, 2012; and the amended provisions of Article 61 (excluding Nonghyup Life Insurance Co., Ltd. or Nonghyup Property and Casualty Insurance Co., Ltd. incorporated under the Agricultural Cooperatives Act) and subparagraph 4 (c) of attached Table 6, on April 1, 2013, respectively. <Amended by Presidential Decree No. 23479, Dec. 31, 2011>
Article 2 (Applicability concerning Qualifications of Executive Officers)
The amended provisions of Article 19 shall apply to executive officer of an insurance company appointed on or after the date this Decree enters into force.
Article 3 (Applicability concerning Appointment of Outside Directors)
The amended provisions of Article 21-2 (2) 5 shall apply to outside directors appointed on or after the date this Decree enters into force.
Article 4 (Applicability concerning Compliance Officers)
The amended provisions of Article 23 (1) shall apply to compliance officers appointed on or after the date this Decree enters into force.
Article 5 (Applicability concerning Training of Insurance Solicitors)
Any person for whom two years have passed since his or her registration at the time the amended provisions of Article 29-2 enter into force, among insurance solicitors (including persons who have been reported under Article 83 (1) 5 of the previous Act), individual insurance agencies and individual insurance brokers who are registered under the previous provisions, shall receive training under the amended provisions within six months from the registration date which comes first after this Decree enters into force.
Article 6 (Applicability concerning Business Bonds of Insurance Companies)
The amended provisions of Article 33 (1) shall apply to insurance agencies which conclude or renew consignment contracts for solicitation with an insurance company on or after the date this Decree enters into force.
Article 7 (Applicability concerning Public Notice of Corporate Insurance Agencies)
The amended provisions of Article 33-4 (4) shall apply to the business year which comes first after this Decree enters into force.
Article 8 (Applicability concerning Public Notice of Corporate Insurance Brokers)
The amended provisions of Article 38-2 (4) shall apply to the business year which comes first after this Decree enters into force.
Article 9 (Applicability concerning Management of Special Account Assets)
The amended provisions of Article 53 (3) 3 (d) shall apply to special accounts established on or after the date this Decree enters into force.
Article 10 (Applicability concerning Reduction of Reinsured Assets)
The amended provisions of Article 63 (3) shall apply to reinsurance contracts concluded on or after the date this Decree enters into force.
Article 11 (Applicability concerning Matters to be Reported in Basic Documents)
The amended provisions of Article 71 (1) and attached Table 6 shall apply to basic documents prepared or changed on or after the date this Decree enters into force.
Article 12 (Applicability concerning Principles for Preparing or Changing Basic Documents)
The amended provisions of Article 71-5 and attached Table 7 shall apply to basic documents prepared or changed on or after the date this Decree enters into force.
Article 13 (Transitional Measures concerning License for Types of Insurance)
Insurance companies which hold license for the cost reimbursement insurance set forth in the amended provisions of Article 8 (1) 8 under the previous provisions at the time this Decree enters into force shall be deemed to have obtained license for the weather insurance set forth in the amended provisions of paragraph (1) 9 of the same Article.
Article 14 (Transitional Measures concerning Report on Concurrent Business)
Where business being carried on at the time this Decree enters into force pursuant to the previous provisions falls under concurrent business under the amended provisions of Article 16, the insurance company shall report to the Financial Services Commission the relevant business as concurrent business within six months after this Decree enters into force: Provided, That the same shall not apply to business licensed by the Financial Services Commission under the previous provisions of Article 11 (1) 2 of the Act.
Article 15 (Transitional Measures concerning Insurance Solicitors)
(1) Those registered as insurance solicitors under the previous provisions shall be deemed to be insurance solicitors under the amended provisions of Article 27 (1).
(2) The effective period of application for registration of persons who have completed training courses at the time this Decree enters into force under the previous provisions of subparagraph 1 (a) of attached Table 3 shall conform to that of the previous provisions.
Article 16 (Transitional Measures concerning Registration of Insurance Agencies)
(1) Those registered as insurance agencies at the time this Decree enters into force under the previous provisions shall be deemed to be insurance agencies under the amended provisions of Article 30 (1).
(2) The effective period of application for registration of persons who have completed training courses at the time this Decree enters into force under the previous provisions of subparagraph 2 (a) of attached Table 3 shall conform to that of the previous provisions.
Article 17 (Transitional Measures concerning Obligation to Use Trade Names of Insurance Agencies)
Insurance companies, executive officers and employees, and insurance solicitors belonging thereto that use an insurance prospectus and advertisements at the time this Decree enters into force in violation of Article 33-2 (2) may use the same prospectus and advertisements for three months from the enforcement date of this Decree.
Article 18 (Transitional Measures concerning Certified Insurance Brokers)
(1) Those registered as certified insurance brokers at the time this Decree enters into force under the previous provisions shall be deemed certified insurance brokers under the amended provisions of Article 34 (1).
(2) The effective period of application for registration of persons who have passed the examination for certified insurance brokers at the time this Decree enters into force under the previous provisions of subparagraph 3 (a) of attached Table 3 shall conform to that of the previous provisions.
Article 19 (Transitional Measures concerning Obligation to Use Trade Names of Certified Insurance Brokers)
Certified insurance brokers, executive officers, and employees, and insurance solicitors belonging thereto that use an insurance prospectus and advertisements at the time this Decree enters into force in violation of Article 36 (2) may use the same prospectus and advertisements for three months from the enforcement date of this Decree.
Article 20 (Transitional Measures concerning Solicitation Advertisement)
Insurance companies or persons who carry on advertisement of insurance products at the time this Decree enters into force in violation of the amended provisions of Article 42-4 may carry on the same advertisement for three months from the enforcement date of this Decree.
Article 21 (Transitional Measures concerning Holding of Subsidiaries)
Where any insurance company holds a subsidiary which is mainly engaged in business under the amended provisions of Article 59 (1) 15, 16, 17 (applicable only to the business of small and medium enterprise start-up investment cooperatives), 18, 19, 21, or 22, it shall report to the Financial Services Commission after satisfying requirements under the amended provisions of Article 59 (3) within six months from the enforcement date of this Decree.
Article 22 Omitted.
Article 23 (Relationship to Other Statutes and Regulations)
Where the previous provisions of the Enforcement Decree of the Insurance Business Act are cited in other statutes and regulations at the time this Decree enters into force, if there exist any corresponding provisions in this Decree, the corresponding provisions in this Decree shall be deemed to have cited in lieu of the previous provisions.
ADDENDUM <Presidential Decree No. 23179, Sep. 29, 2011>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 23479, Dec. 31, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 26 and 40 shall enter into force on March 2, 2012, and the amended provisions of Article 57-2 shall enter into force on April 1, 2012.
Article 2 (Period of Validity)
The amended provisions of Article 26 (1) 2 and Article 26 (2) shall remain in force until March 1, 2017.
Article 3 (Transitional Measures concerning Incorporation of Nonghyup Life Insurance Co., Ltd and Nonghyup Property and Casualty Insurance Co., Ltd.)
(1) A career in mutual-aid actuarial affairs at the National Agricultural Cooperative Federation established under the former Agricultural Cooperatives Act as at the time the partially amended Agricultural Cooperatives Act (Act No. 10522) is in force shall be deemed a career in insurance actuarial affairs referred to in Article 95 (1) 2.
(2) Where Nonghyup Life Insurance Co., Ltd. or Nonghyup Property and Casualty Insurance Co., Ltd. reports insurance products pursuant to Article 15 (7) of the Addenda to the partially amended Agricultural Cooperatives Act (Act No. 10522), they may choose not to submit, by December 31, 2013, the verification certificate prescribed in Article 71 (2) 2 with regard to the risk rates (limited to risk rates used for life insurance and other similar insurance products determined and publicly notified by Financial Services Commission) already reported to the Minister of Food, Agriculture, Forestry and Fisheries pursuant to the previous practices before the partially amended Agricultural Cooperatives Act enters into force.
ADDENDA <Presidential Decree No. 23488, Jan. 6, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 23496, Jan. 6, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 2, 2012.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 23644, Feb. 29, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 23826, Jun. 1, 2012>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 23987, Jul. 24, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 26, 2012.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 24001, Jul. 31, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 24076, Aug. 31, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 2, 2012. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 24097, Sep. 7, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 10, 2012.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 24657, Jul. 8, 2013>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 24697, Aug. 27, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 29, 2013. (Proviso Omitted.)
Articles 2 through 13 Omitted.
ADDENDUM <Presidential Decree No. 25050, Dec. 30, 2013>
This Decree shall enter into force on January 1, 2014. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 25279, Mar. 24, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 25311, Apr. 15, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 33 (3) and (5), 37 (4), 42-4 (4) 3 through 6, 42-5 (1) 1, 43-2 (3) and 44 (2) shall enter into force six months after the date of their promulgation.
Article 2 (Applicability concerning Period of Validity of Application for Registration of Insurance Solicitors)
The amended provisions of remarks in subparagraph 1 of attached Table 3 and remarks in subparagraph 2 of the aforementioned attached Table shall also apply to persons that have completed training courses or education before this Decree enters into force.
Article 3 (Transitional Measures concerning Permission of Items of Insurance)
Any insurance company that has been permitted to sell any of theft insurance, plate glass insurance, animal insurance or nuclear insurance pursuant to the former provisions as at the time this Decree enters into force shall be deemed permitted to sell theft insurance, plate glass insurance, animal insurance or nuclear insurance under the amended provisions of Article 8 (1) 4.
Article 4 (Transitional Measures concerning Requirements for Qualification for Executive Officers)
Notwithstanding the amended provisions of Article 19 (5) 3, the former provisions shall apply to a person that retires from his or her post (including resignation from his or her post) or retires from his or her office (including resignation from his or her office) before he or she is subject to measures due to reasons referred to in Article 19 (5) 1 or 2 before this Decree enters into force.
ADDENDUM <Presidential Decree No. 25459, Jul. 14, 2014>
This Decree shall enter into force on July 15, 2014.
ADDENDUM <Presidential Decree No. 25532, Aug. 6, 2014>
This Decree shall enter into force on August 7, 2014.
ADDENDA <Presidential Decree No. 25751, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That among Presidential Decrees amended pursuant to Article 5 of Addenda, the amended provisions of Presidential Decrees which were promulgated before this Decree enters into force but the enforcement dates of which have not arrived shall enter into force on the enforcement dates of the relevant Presidential Decrees, respectively.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 25887, Dec. 23, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Credit Card Business Operators)
(1) Notwithstanding the amended provisions of Article 3 of Addenda of the partly amended Enforcement Decree of the Insurance Business Act, Presidential Decree No. 21911, Article 40 (6) and (7) shall apply to credit card business operators that are insurance agencies of financial institutions, etc. as at the time this Decree enters into force from the business year which begins on January 1, 2017.
(2) Any credit card business operator under paragraph (2) shall prepare an implementation plan to observe Article 40 (6) and (7) from the business year which begins on January 1, 2017 and submit it to the Financial Services Commission within two months after this Decree enters into force.
ADDENDA <Presidential Decree No. 25945, Dec. 30, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date the merger under Article 4 (6) of Addenda of the wholly amended Korea Development Bank Act, Act No. 12663, is registered.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 26040, Jan. 6, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force six months after the date of its promulgation: Provided, That the amended provisions based on the following classification shall enter into force on the date prescribed in the relevant subparagraph, respectively:
1. The amended provisions of Articles 42-5 (1) 2, 63 (1) 1 (b) and (c), and 71 (1): On the date of their promulgation;
2. The amended provisions of Articles 42-4 (2), 68 (3), and the proviso to Article 68 (4): On January 20, 2015;
3. The amended provisions of Articles 71 (2), the latter part of Article 71 (5), and Article 71-2: On April 1, 2015.
Article 2 (Transitional Measures concerning Formation of Committee on Pubic Announcement of Insurance Products)
(1) Notwithstanding the amended provision of Article 68 (3) (only applicable to the part on the election of the Chairperson by the Committee from among its members and the part that an executive officer in charge of products in the insurance association becomes a member) and the amended provision of the proviso to Article 68 (4) (only applicable to the part concerning the term of office of a member who is an executive officer in charge of products in the insurance association), the former provisions shall apply until the term of office of the chairperson of the Committee appointed pursuant to the former Article 68 (3) before January 20, 2015 expires.
(2) Notwithstanding the amended provisions of Article 68 (3) 1 and 3, the former provisions shall apply until the term of office of a member whose term of office expires first expires among members who are executive officers in charge of products in insurance companies or senior public accountants commissioned pursuant to the former Article 68 (3) 1 before January 20, 2015.
Article 3 (Transitional Measures concerning Submission of Verification Certificates of Insurance Company)
Where an insurance company is requested to submit a verification certificate and a report on insurance products pursuant to the former part of Article 71 (5) before April 1, 2015, the former provision shall apply notwithstanding the amended provision of the latter part of the aforesaid paragraph.
Article 4 (Transitional Measures concerning Recommendation of Changes to Basic Documents)
Where an insurance company has reported or submitted basic documents pursuant to the former Article 71 (2) or (4) before April 1, 2015, the former provisions shall apply, notwithstanding the amended provisions of Article 71-2.
ADDENDUM <Presidential Decree No. 26200, Apr. 14, 2015>
This Decree shall enter into force on April 16, 2015.
ADDENDA <Presidential Decree No. 26205, Apr. 20, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 29, 2015.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 26438, Jul. 24, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 29, 2015.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 26517, Sep. 11, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 12, 2015. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 26600, Oct. 23, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 25, 2015. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDUM <Presidential Decree No. 26917, Jan. 19, 2016>
This Decree shall enter into force on January 25, 2016.
ADDENDA <Presidential Decree No. 27037, Mar. 11, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 27080, Apr. 1, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of subparagraph 1 (c) of attached Table 4 shall enter into force on July 1, 2016; and the amended provisions of Articles 42-2 (3) and (4) and 87 (2) shall enter into force on October 1, 2016.
Article 2 (Applicability to Operation of Special Account Assets)
The amended provisions of Article 53 (3) 3 (d) shall also apply where the assets of a feeder fund are transferred to a master fund when a special account established before this Decree enters into force is converted to a master-feeder fund.
Article 3 (Special Cases concerning Verification of Net Insurance Premium Rates for Reference)
Notwithstanding the amended provisions of Article 87 (3), the head of an insurance premium calculation agency shall verify the net insurance premium rates for reference for life insurance and other similar insurance products determined and publicly notified by Financial Services Commission by December 31, 2018.
Article 4 (Transitional Measures concerning Education for Insurance Solicitors)
Notwithstanding the amended provisions of subparagraph 1 (c) of attached Table 4, the previous provisions shall apply to a person who is required to receive education under Article 29-2 (1) and (2) fails to do so before July 1, 2016.
ADDENDA <Presidential Decree No. 27205, Apr. 1, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 30, 2016. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 27288, May 31, 2016>
This Decree shall enter into force on June 30, 2016.
ADDENDA <Presidential Decree No. 27414, Jul. 28, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 1, 2016. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 27472, Aug. 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 1, 2016.
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 27556, Oct. 25, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 1, 2016.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 27923, Feb. 28, 2017>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 27970, Mar. 29, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 30, 2017.
Articles 2 through 7 Omitted.
ADDENDUM <Presidential Decree No. 28142, Jun. 20, 2017>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 28152, Jun. 27, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 28218, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 28383, Oct. 17, 2017>
This Decree shall enter into force on October 19, 2017.
ADDENDA <Presidential Decree No. 28945, Jun. 5, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 42-5 shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Types of Insurance Allowed for Concurrent Operation)
The amended provisions of Article 15 (2) shall also apply to a person who has obtained permission for Type 3 insurance business before this Decree enters into force.
Article 3 (Applicability to Duty to Verify Conclusion of Dual Contracts)
The amended provisions of Article 42-5 shall apply, beginning with the solicitation of an insurance contract after the enforcement date of the proviso of Article 1 of the Addenda.
Article 4 (Transitional Measures concerning Change of Names of Specific Product Insurance Solicitors and Specific Product Non-Life Insurance Agencies)
Specific product insurance solicitors and specific product non-life insurance agencies referred to in the previous provisions at the time this Decree enters into force shall be deemed simple non-life insurance solicitors and simple non-life insurance agencies under the amended provisions of Articles 27 (1) and 30 (1).
ADDENDUM <Presidential Decree No. 28946, Jun. 5, 2018>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 29089, Aug. 7, 2018>
This Decree shall enter into force on August 22, 2018.
ADDENDA <Presidential Decree No. 29429, Dec. 24, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 95 (1) 2 shall enter into force on January 1, 2022.
Article 2 (Transitional Measures concerning Eligibility Requirements for Certified Senior Actuaries)
Notwithstanding the amended provisions of Article 95 (1) 2, the previous provisions shall apply to eligibility requirements for a certified senior actuary of a non-life insurance company who has been appointed before the enforcement date under the proviso of Article 1 of the Addenda.
ADDENDA <Presidential Decree No. 29498, Jan. 22, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 28, 2019.
Articles 2 through 12 Omitted.