Unofficial Translation LIFE INSURANCE ACT, B.E. 2535...

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Unofficial Translation

LIFE INSURANCE ACT, B.E. 2535 (1992)1

BHUMIBOL ADULYADEJ, REX,

Given on the 4th Day of April, B.E. 2535 (1992); Being the 47th Year of the Present Reign.

His Majesty King Bhumibol Adulyadej is graciously pleased to proclaim that: Whereas it is expedient to revise the Life Insurance Act; Be it, therefore, enacted by His Majesty the King with the advice and consent

of the National Legislative Assembly, as follows: Section 1. This Act is called the “Life Insurance Act, B.E. 2535 (1992)”. Section 2. This Act shall come into force as from the date of its publication

in the Government Gazette.2 Section 3. The life Assurance Act, B.E. 2510 (1967) shall be repealed. Section 4. This act shall not be applied to the undertaking of life insurance

business of the Government Savings Bank under the Government Savings Bank Act.

1 Translated by 2 Published in the Government Gazette, Vol. 109, Part 46, Page1, dated 10th April B.E.2535 (1992).

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Section 5. In this Act; “Company”3 means a public limited company, obtaining a license to engage

in the life insurance business under this Act, and shall include a branch office of a foreign life insurance company, obtaining a license to engage in the life insurance business in the Kingdom under this Act;

“Head Office” includes a branch office of a foreign life insurance company obtaining a license to engage in the life insurance business in the Kingdom under this Act;

“Life Insurance Business” includes the reinsurance business; “Capital Fund”4 (repealed) “Life Insurance Agent” means a person who is appointed by a company to

solicit people to enter into a life insurance contract with the company; “Life Insurance Broker” means a person, who indicates the opportunity or

arranges for a person to enter into a life insurance contract with the company for expected commission;

“Commission” 5 means the Insurance Commission; “Fund”6 means the Life Insurance Fund; “Competent Officer” means a person appointed by the Minister to act in

accordance with this Act; “Registrar”7 means the Secretary General of the Insurance Commission, or a

person designated by him;

3 Section 5 A definition of “Company” was amended by Life Insurance Act (No.2), B.E.

2551 (2008). 4 Section 5 Definition of “Capital Fund” was repealed by Life Insurance Act (No.2), B.E.

2551 (2008). 5 Section 5 Definition of “Commission” was amended by Life Insurance Act (No.2), B.E.

2551 (2008). 6 Section 5 Definition of “Fund” was amended by Life Insurance Act (No.2), B.E. 2551

(2008).

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“The Minister” means the Minister in charge of the enforcement of this Act. Section 68 The Minister of Commerce* shall be in charge of this Act and

shall be empowered to appoint competent officers to issue Ministerial Regulations establishing fee, which shall not exceed a rate indicated in the Schedule annexed to this Act, and indicates other activities for executing this Act, as well as issues the notification in accordance with the provisions of this Act.

The Ministerial Regulations and Notifications shall come into force upon their publication in the Government Gazette.

Chapter 1 Companies

Section 79 The life insurance business may be undertaken when a public company is established in accordance with the Law on limited public company, and granted a license to engage in the life insurance business from the Minister with the approval of the Council of Ministers.

An application for the license to engage in the life insurance business under paragraph one shall be submitted by a company’s promoter to the Minister. Further when the Minister, with the approval of the Council of Ministers, considers and approves of engaging in the life insurance business, the company’s promoter shall proceed a registration of the establishment of a public limited company, and place a security deposit according to

7 Section 5 Definition of “Registrar” was amended by Life Insurance Act (No.2), B.E. 2551

(2008). 8 Section 6 was amended by Life Insurance Act (No.2), B.E. 2551 (2008).

9 Section 7 was amended by the Life Insurance Act (No.2), B.E. 2551 (2008).

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section 20, as well as, maintain a capital fund according to section 27 within six months from the date of the registration of the establishment of the public limited company.

When the Minister considers and finds that the applicant complies with paragraph two, the license shall be issued to the established public limited company.

In case where the public limited company is unable to place the security deposit or maintain the capital fund within the prescribed period, the approval to engage in the life insurance business shall be nullified.

The application for and the issuance of the license shall be in accordance with the rules, procedures and conditions prescribed in the Ministerial Regulations. The Minister may prescribe any conditions.

Section 8 A foreign life insurance company may establish a branch

office for engaging in the life insurance business under this Act after obtaining a license from the Minister with the approval of the Council of Ministers. In such case the Minister may approve with prescribing conditions.

An application for and issuance of the license to engage in the life insurance business by establishing the branch office of the foreign life insurance company under paragraph one shall be in accordance with the rules and procedures prescribed in the Ministerial Regulations.

The branch office of the foreign life insurance company, which obtains the license to engage in the life insurance business, shall maintain its assets in Thailand in accordance with amounts, types, procedures and conditions prescribed by the Commission*. The amount of the assets prescribed by the Commission* shall not be less than the amount of the capital fund the company is obliged to maintain under section 27.

The Minister shall grant the license under a provision of paragraph one only after the company places the security deposit in accordance with section 20 and maintains the assets in Thailand in accordance with paragraph three.

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The company, which is a branch office of the foreign life insurance company, cannot open a branch office anywhere.

The branch office shall include an office that is separated from a head office the company, no matter what name it is, and how it receives expenditures from the company directly or indirectly. However, this does not include a place, which the Registrar approves to be used as a location for an information operating unit, a document-keeping place or a training place in relation to the company’s business.

Section 910 The ordinary shares and preferred shares of a company shall

be the shares with a named certificate, having a registered par value of not more than one hundred baht per share.

The issuance of the preferred shares under paragraph one shall be in accordance with the law on the public limited companies. The Registrar may indicate the rules, procedures and conditions for protecting interests of an insured, which shall not be in conflict with the law of the public limited companies.

Section 1011 A company shall have the directors holding Thai nationality

not less than three fourth of the total number of the directors, and have persons prescribed in (1) or (2), or (1) and (2) holding shares together more than seventy - five percent of its voting shares that have already been sold.

(1) A Thai individual, or non-registered ordinary partnerships, whose all partners are Thai nationals.

(2) A juristic person which is registered in Thailand and possessing the following characteristics:

10 Section 9 was amended by Life Insurance Act (No.2), B.E. 2551 (2008). 11 Section 10 was amended by Life Insurance Act (No.2), B.E. 2551 (2008).

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(a) having a person under (1) holding shares exceeding fifty percent of the total number of its voting shares that have been sold, or

(b) having a person under (1), or a juristic person under subsection (2) (a), or a person under subsection (1) and a juristic person under (2) (a), holding its shares exceeding fifty percent of the total number of its voting shares that have been sold.

In case that the Commission deems appropriate, it may permit a person of non-Thai nationality to hold shares, in a proportion up to forty-nine percent of the total number of its voting shares that have been sold, and persons of non-Thai nationality to serve as the directors, in an amount of more than one fourth , but less than one half of the total numbers of the directors. In granting the permission, the rules on shareholding by the persons under paragraph one shall apply mutatis mutandis.

In case that the Company’s standing or operations are in a condition that might cause damage to an insured or public, the Minister, with recommendations of the Commission, is empowered to grant an indulgence to the Company to have shareholders or directors different from what prescribed in paragraph two. Such indulgence may be granted with prescribed rules or time condition.

Section 11 Any person has acquired shares of any company, and such

acquisition causes a number of the shares or the shareholders to violate section 10 and not to be in compliance with section 12. Such person may not hold the shares in excess of prescribed percentage against the company, and the company shall not pay dividends or any pecuniary benefit on the excess shares to such person or allow such person to exercise voting right on the said shares at a shareholders meeting.

Section 12 For the purpose of compliance with section 10 and section

11, a company shall examine a registration of shareholders not less than three months prior to every shareholders meeting and inform the Registrar of a result of such examination by a list and within the period of time prescribed by the Registrar. In case that any shareholder is

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found to hold shares in excess of the percentage prescribed in section 10, the company shall notify that person within fifteen days from the date of finding, and such person has to take steps to rectify within one month from the date of receipt of a notice.

Section 13 The provisions of section 9, section 10, section 11 and section

12 shall not be applied to a company which is a branch office of a foreign life insurance company under section 8.

Section 14 12 A transfer of business or an acceptance of the transfer, either

in whole or in part, or an amalgamation of the companies, may be only executed between companies.

In the case that the company wishes to transfer of the business or accept the transfer, either in whole or in part, or to enter into the amalgamation under paragraph one, the board of directors of the companies shall jointly prepare an operating scheme and submit it to the Commission. In granting its consent, the Commission may also prescribe any conditions deemed appropriate to protect the interests of the insured, or to ensure the stability of business operations of the company.

Section 14/113 A transfer of the business, either in whole or in part, may

commence after receiving the consent from the Commission according to section 14 paragraph two. The assignment of rights in such the transfer of business shall not be subject to the requirement to give notice to a debtor, according to section 306 of the Civil and Commercial Code, provided that such assignment is without prejudice to the debtor’s right to set up a defense under section 308, paragraph two, of the Civil and Commercial Code.

12 Section 14 was amended by Life Insurance Act (No.2), B.E. 2551 (2008). 13 Section 14/1 was amended by Life Insurance Act (No.2), B.E. 2551 (2008).

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In the case that the entire business of a company is transferred such transfer shall be valid when a transferor company and a transferee company comply with the conditions prescribed by the Commission under section 14, paragraph two, and shall revoke a license to engage in the life insurance business issued to the transferor company.

Section 14/214 An amalgamation of the companies shall be in accordance

with the law relating to public limited company. The amalgamation under paragraph one shall be valid when the

amalgamating companies comply with the conditions prescribed by the Commission under section 14, paragraph two. It shall be deemed that the surviving company receives approval to engage in the life insurance business, according to section 7, paragraph one.

When the amalgamation is registered, a security deposit is placed according to section 20, and a capital funds are maintained according to section 27, the Minister shall issue a license to the surviving company which revokes a license to engage in the life insurance business, issued to the predecessor companies.

Section 14/315 In a transfer of the business of a company, either in whole or

in part, to another company, or an amalgamation of the companies, if the transferred assets include any collateral other than the right of mortgage, right of pledge, or right arising from a suretyship, which must be passed to a transferee company by the virtue of section 305 of the Civil and Commercial Code, such collateral shall pass to the transferee company or the surviving company, as the case may be.

14 Section 14/2 was amended by Life Insurance Act (No.2), B.E. 2551 (2008). 15 Section 14/3 was added by Life Insurance Act (No.2), B.E. 2551 (2008).

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Section 1516 Apart from a fee for a license to engage in the life insurance business, a company must pay an annual fee for the operation of the life insurance business every year except in the year its license is issued.

If any company fails to pay its annual fee within three months after the end of a calendar year, the Registrar shall issue an order to prohibit such company from expanding its business, until the company fully and correctly pays the fee and the Registrar revokes the order to prohibit such company from expanding its business.

For the purpose of this section, in the case of expanding the business under paragraph two, the provisions in section 27/6, paragraph two, and the penalty in the case of a violation of section 27/6, paragraph one, as provided for under section 94/1, shall apply, mutatis mutandis.

Section 1617 (repealed) Section 1718 A company under section 7, which will open a branch office,

relocate a head office or a branch office, or dissolve a branch office, shall obtain a permission from the Registrar, and the provisions under section 8 paragraph six shall apply mutatis mutandis.

An application for the permission and the permission shall be in accordance with the rules, procedures, and conditions prescribed by the Commission.

Section 1819 No person shall act as an insurer by entering into a life

insurance contract with any person, unless he/she has obtained a license to engage in the life insurance business.

16 Section 15 was amended by Life Insurance Act (No.2), B.E. 2551 (2008). 17 Section 16 was repealed by Life Insurance Act (No.2), B.E. 2551 (2008). 18 Section 17 was amended by Life Insurance Act (No.2), B.E. 2551 (2008). 19 Section 18 was amended by Life Insurance Act (No.2), B.E. 2551 (2008).

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No person shall use an insurance policy of a company, to which that person is not entitled, in accordance with this Act.

Section 19 No person shall use a name or a description of “life

insurance”, or any other words having the same meaning, except the following persons: (1) a company; (2) an association, the majority of whose members are officers or

employees of a company; (3) an association, the majority of whose members are life insurance

agents or life insurance brokers; (4) an employers’ association or labor union, the majority of whose

members are officers or employees of a company; (5) a life insurance agent or a life insurance broker who use the description

in his/her business as a life insurance agent or a life insurance broker, as the case may be; (6) a life insurance education institute or other institute relating to the life

insurance business which use the description as its name, or (7) a director, an officer, an employee, a member, or a person having any

status, position, or duty in the company, the association, the labor union, the life insurance education institute, or other institute relating to the life insurance business, under (1), (2), (3), (4) and (6), use such description to present the status, the position or the duty in the company, the association, the labor union or the aforesaid institutes.

The use of the name, or the description in the business of a life insurance agent or a life insurance broker under (5) shall be in accordance with the rules, procedures, and conditions prescribed by the Registrar.20

20 Section 19 paragraph two was added by Life Insurance Act (No.2), B.E. 2551 (2008).

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Section 20 A company must have its securities placed with the Registrar as a security deposit in a value prescribed in the Ministerial Regulations.

The securities of the company, placed with the Registrar, may be in cash, Thai government bonds, or any other assets prescribed in a notification of the Commission.

The company may ask for a permission to change the security deposit placed, subject to paragraph one and paragraph two.

Section 21 In the case that a value of a security deposit of any company

is lower than the value prescribed in the Ministerial Regulations issued under section 20, the Commission * shall order such company to deposit an additional security up to the prescribed amount within two months from the date of receipt of the order.

Section 22 In the case that a value of a security deposit of any company

is higher than the value prescribed in accordance with the Ministerial Regulations issued under section 20, the Commission* shall be empowered to order a release of a portion of the security deposit which is in excess, upon the request of the company, provided it is able to prove the excessive value.

Section 2321 A company shall allocate a premium to an insurance reserve,

for the insurance policies that remain binding, and other reserves as prescribed by the Commission.

The reserves under the foregoing paragraph may be in cash, Thai government bonds, or other property, in accordance with the rules, procedures, conditions and ratios prescribed by the Commission.

21 Section 23 was amended by Life Insurance Act (No.2), B.E. 2551 (2008).

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Section 2422 The Commission is empowered to require a company to place no more than twenty-five percent of the amount of the reserves required under section 23 with the Registrar.

The placement of the reserves under the foregoing paragraph shall be in accordance with the rules, procedures, and conditions prescribed by the Commission. The provisions of section 21 and section 22 shall apply mutatis mutandis.

Section 25 In the case that a security deposit placed with the Registrar

by a company under section 20 and a reserve placed by a company with the Registrar under section 24 are the asset, whose transfer or acquisition are required to register with the officer under the law or executed with a person involved in the transfer or acquisition of the assets, the Registrar shall notify a competent officer or the person involved in writing, and no officer or person shall transfer or dispose the asset until the Registrar notifies of revocation or change in the said asset in writing.

Section 26 A security deposit under section 20 and a reserve under

section 23, placed by a company with the Registrar under section 24, are not subject to execution during a period for which the company has not been dissolved.

In case that the company is dissolves, a creditor, who has the right to receive a payment of debts from insurance, shall have the preferential right over the asset placed as a security deposit under section 20 and a reserve under section 23 placed with the Registrar under section 24, and shall have the right to receive payment from the assets prior to other creditors having other preferential rights.

In case that the company is dissolves, a creditor, who has the right to receive a payment of debts from insurance, shall have the preferential right over the asset placed as a security deposit under section 20 and a reserve under section 23 placed with the Registrar


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under section 24, and shall have the same right to receive payment from the asset, as a secured creditor under the bankruptcy law.

A creditor having the right to receive a payment of debts from insurance shall have the right to receive a payment from the company’s assets, apart from the assets placed as a security deposit under section 20 and reserve under section 23, placed with the Registrar under section 24 like a holder or preferential rights on account of tax under the Civil and Commercial Code.

Chapter I/I

Maintenance of Capital Funds and Liquid Assets23

Section 27 The Commission shall be empowered to prescribe the types

and categories of capital funds, including the rules, conditions, and procedures for the computation of a company’s capital funds.

The company must maintain capital funds throughout the period of life insurance business operations, in proportion to its assets, liabilities, obligations, or risks, at the rate prescribed by the Commission.

The Commission shall determine the maintenance rate of the capital funds under paragraph two in accordance with sizes or types of assets, liabilities, obligations or all or each type of risks.

In the case that the company repurchases shares under the law on public limited companies, none of such shares shall be counted as a part of the capital funds. The capital funds shall be deducted in accordance with the rules, procedures, and conditions prescribed by the Commission.

23 Chapter I/I Maintenance of Capital Funds and Liquid Assets section 27 to section 27/7 was added by Life Insurance Act (No.2), B.E. 2551 (2008).

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The company is prohibited from using its capital funds to incur any obligation, subject to the rules, procedures, and conditions prescribed by the Commission.

Section 27/1 A company shall maintain its liquid assets in proportion to its

assets, liabilities, obligations or reserve under section 23 which is not less than the rate prescribed by the Commission.

The Commission, in prescribing the maintenance rate for liquid assets under paragraph one, may prescribe some or all types, or prescribe the proportion of each type thereof at any rate.

If the maintenance rate of liquid assets prescribed by the Commission under this section increases, such increase shall be announced at least sixty days prior to the effective date.

Section 27/2 Liquid assets include: (1) cash or bank deposits, in accordance with the rules, procedures, and

conditions prescribed by the Commission; (2) Thai government securities or Bank of Thailand securities; (3) debentures or bonds, whose principal and interest are guaranteed by the

Ministry of Finance, the Bank of Thailand, or the Financial Institutions Development Fund, or (4) Other assets, in accordance with the rules, procedures, and conditions

prescribed by the Commission. The liquid assets under (2), (3), and (4) above shall be free from any

obligation and able to be transferred. Section 27/3 A company shall manage its assets, liabilities, obligations and

reserves under section 23 to be consistent with the period of receipt of insurance premiums, taking loans or receipt of payments from an insured or public, in accordance with the rules, procedures, and conditions prescribed by the Commission.

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Section 27/4 A company shall allocate its assets for liabilities and

obligations under life insurance contracts, in accordance with the types, categories, and proportions prescribed by the Commission.

The company shall deposit reserves under section 23, except for the portion placed with the Registrar under section 24 and assets under paragraph one, with financial institutions, or manage them in accordance with the rules, procedures, and conditions prescribed by the Commission.

The company is not permitted to use the assets under paragraph two to incur obligations, subject to the rules, procedures, and conditions prescribed by the Commission.

Section 27/5 A company shall have a capital fund maintenance report

presented to the Registrar every month, in accordance with the rules, procedures, and conditions prescribed by the Commission.

In the case that the capital funds of any company are reduced to less than the capital funds level required to be maintained under section 27 paragraph two the company shall propose a scheme to revive the condition of its capital funds, within thirty days from the date of receipt of notice from the Registrar, or from the date of detection by the auditor or the company.

The scheme under section 27 paragraph two shall consist of at least the following:

(1) steps to increase capital funds to reach a sufficient amount; (2) the capital fund level anticipated to be maintained in each quarter,

throughout the period of scheme; (3) the type and the business to be carried out, and (4) the period of scheme shall not exceed one year.

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The Registrar shall review the scheme and give notice of his consideration to the company within thirty days from the date of receipt of the scheme. The Registrar may also prescribe conditions or time conditions in his consent.

In the case when the Registrar rejects the scheme, or the company disagrees with the conditions or time conditions prescribed by the Registrar, the company shall have the right to appeal to the Commission within thirty days from the date of the receipt of notice. The Commission shall finish reviewing the appeal within sixty days from the date of the receipt of the appeal.

A decision of the Commission shall be final. Section 27/6 While executing the approved scheme under section 27/5, a

company may carry out its normal business, but may not expand its business until the company is able to maintain its capital funds in accordance with section 27 paragraph two.

To expand its business under paragraph one means: (1) to accept new insurance, or to expand insured amount of the existing

insurance policies; (2) to increase risks of investments in other business of the company; (3) to incur additional obligations, except as required by the existing

obligations; (4) to enter into contract to appoint an additional life insurance agent or

broker, or (5) to receive a transfer of business from another company. The Registrar shall prescribe and announce those cases which increase of risk

under (2) or those cases which represent the incurrence of additional obligations under (3).

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Section 27/7 The Registrar shall consider carrying out the acts under section 53 if any of the following events occurs:

(1) a company fails to propose a scheme under section 27/5 to the Registrar, within the prescribed time;

(2) a company fails to carry out activities under the scheme, or carries out activities not in accordance with the scheme under section 27/5, conditions or time conditions prescribed by the Registrar, or

(3) a scheme proposed under section 27/5 is rejected and the company fails to appeal such rejection within the specified time or the Commission makes a decision to dismiss such appeal.

Chapter II

Supervision of a Company

Section 28 Apart from life insurance, a company may invest in only

businesses prescribed by the Commission* in the notifications. The Commission* may prescribe conditions for said business, to be conducted by the company.

Section 29 Insurance policies, including related documents and appendix

shall be in a form and texts as approved by the Registrar. When the Registrar deems appropriate or upon an application of the

company, the Registrar may order to change, amend, add, or repeal the forms and texts approved by the Registrar under paragraph one, in part or in whole.

In the case where the company issues an insurance policy different from the form or texts approved by the Registrar under paragraph one or paragraph two, an insured or beneficiary of the insurance policy shall have an option of holding the company liable under the insurance policy, or as the texts prescribed by the company, or as the forms and texts

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approved by the Registrar. The company shall not be released from liability prescribed in this Act, whether or not the insured exercise such rights.

In the case where the company issues an insurance policy in the form or texts which are not approved by the Registrar under paragraph one or paragraph two, the insured shall have an option of holding the company liable under the insurance policy or terminating the life insurance contract, and having the company return the premiums paid to the company. Whether or not the insured or beneficiary exercises the said right, the company shall not be released from liability prescribed in this Act.

Section 30 The premium rates prescribed by the company shall be

approved by the Registrar. When the Registrar deems appropriate or upon an application of the

company, the Registrar may order to change such rate. The change of such rate shall not affect a premium rate in the insurance policies previously approved by the Registrar.

Section 30/124 A text or pictures in an advertisement or prospectus shall be

deemed an integral part of an insurance policy. If any text or picture contains a meaning contrary to the insurance policy, it shall be interpreted in a way that is favourable to the insured or the beneficiary of the insurance policy, as the case may be.

A life insurance agent is not allowed to use any text or picture or an advertisement or prospectus which are not approved by the company to solicit a person to enter into a life insurance contract.

Section 31 No company shall issue an insurance policy that states the

amount payable to the insured or beneficiary in a foreign currency.

24 Section 30/1 was added by Life Insurance Act (No.2), B.E. 2551 (2008).

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Section 32 A company shall obtain an approval of the Registrar for calculation of its profits, whether there is profit or not, with the view to pay dividends to shareholders.

Section 33 A company shall not: (1) engage in the non-life insurance business; (2) reduce its capital without receiving written permission from the Registrar,

with the approval of the Commission; (3) deposit money elsewhere besides the banks, finance, companies, or

finance and securities companies; (4) keep cash elsewhere besides at the office of the company; (5) pay any money or other property to life insurance director, manager,

consultant, official or employee as a commission or remuneration for or as a result of any business or activities, apart from pension, monthly wages, bonus or commission which may normally be paid to them;

(6) pay any money or property to life insurance agents or brokers, apart from usually paid wages or pension;

(7) advance any money or property to any person as a commission or remuneration for work to be done for the company;

(8) pay commission to a person who assists in concluding an insurance contract, but not a life insurance agent or broker of the company;

(9) buy or hold immovable property, except: (a) Those for use as premises for the business of the company or for the

welfare of the officers and employees of the company as appropriate; (b) Those for use in investment in other business, as prescribed by the

commission under section 28; or (c) The immovable properties acquired by the company as a result of a

debt settlement or enforcement of mortgage.

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The purchase or possession of the immovable properties under (a) or (b) or the acquisition of immovable property as a result of a debt settlement under (c) requires an written approval of the Registrar, Such approval may be granted with any conditions prescribed by the Registrar;

(10) present special benefits to an insured or beneficiary under an insurance policy beyond what prescribed in the insurance policy;

(11) accept premium from an insured in an amount less than the payable amount;

(12) appoint or authorize persons other than life insurance agents, life insurance brokers, or officers of the company who have duties related to receipt of money, as a receiver of premium payments;

(13) issue an insurance policy without a signature of an authorized director (s) to bind the company and without a seal of the company as registered, or without the signature of a branch manager of a foreign life insurance company, as indicated in a license to engage in the life insurance business, and without the seal affixed, as the case may be;

(14) advertise the company or its life insurance business in a false or exaggerated manner;

(15) appoint or assign persons other than life insurance agents of the company to induce or procure persons to enter into life insurance contracts with the company, except for the acts of directors, officers, or employees of the company, for and on behalf of the company, or

(16)25 sell or give any immovable property or movable property, with an aggregate value exceeding the amount prescribed by the Registrar, to any of its directors, or purchase assets from any of its directors including a person related to any of its directors, as announced by the Commission, unless receiving the consent of the board of directors of the company and the approval of the Registrar.

25 Section 33 (16) was amended by Life Insurance Act (No.2), B.E. 2551 (2008).

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Section 3426 A company shall dispose of immovable property vested to the company under section 33(9) in the following cases:

(1) The immovable property maintained by the company in order to use as a premise of business operation, or for the welfare of officers or employees of the company, or for investment in other businesses under sections 33 (9) (a) or (b), but no longer used, shall be disposed of within five years from the date of termination of use;

(2) The immovable property, acquired by the company from a debt settlement or foreclosure under section 33 (9) (c), shall be disposed of within five years of the acquisition, unless the approval of the Registrar is obtained to maintain them for an activity under section 33 (9) (a) or (b).

The Registrar may extend the period under (1) and (2) above, in accordance with the period prescribed by the Commission. The Registrar may also prescribe conditions for the extension of such period.

Section 3527 A director, manager, or person authorized to act on behalf of

a company, or a consultant of the company, shall hold a bachelor’s degree or higher qualification, or shall have work experience related to insurance business, and shall not have any of the following qualifications:

(1) being, or having been declared bankrupt; (2) having been imprisoned by a final court judgment, for an offense relating

to property; (3) having been a director, manager or person authorized to act on behalf of

a company at the time such company had its life or non-life insurance license revoked, except for a person whom the Registrar, with the approval of the Commission, appointed to hold such office at such time.

26 Section 34 was amended by Life Insurance Act (No.2), B.E. 2551 (2008). 27 Section 35 was added by Life Insurance Act (No.2), B.E. 2551 (2008).

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(4) being a director, manager, or person authorized to act on behalf of another company licensed to engage in the life insurance business, unless an exception in accordance with the rules and conditions prescribed by the commission has been granted;

(5) being removed from the position of director, manager, or person authorized to act on behalf of a company, under section 54;

(6) being political official or a person holding a political office; (7) being a government official or an official of the Office of the insurance

commission, having a responsibility to supervise the company, unless the company is a public enterprise or the appointment is made with the approval of the Commission, for the purpose of assisting in the operations of the company, or the person is appointed under section 54, or

(8) having a bad record or carrying out any activity showing a lack of responsibility or due care that a person of such profession is supposed to have in his conduct.

Section 3628 Subject to section 71, no company shall assign or accept any

persons to conduct life insurance by using its insurance policy. No company shall assign or accept any person to compensate claims under

an insurance policy, in part or in whole, unless permission is granted by the Registrar. Section 37 No company shall delay a payment to an insured or

beneficiary under insurance policy, or delay a payment of payable premium, or make a payment without appropriate reason, or return in a bad faith.

28 Section 36 was added by Life Insurance Act (No.2), B.E. 2551 (2008).

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Section 37/129 If any petition relating to insurance, payment of compensation, monetary compensation, or other benefits under an insurance policy are made, the Registrar may have such petition reviewed and arrange conciliation.

Section 3830 Subject to the provisions of this Act, the Commission shall

have the power to prescribe rules, procedures and conditions for the company to observe, in the following areas:

(1) collection of premiums; (2) appraisal of the value o assets and liabilities of the company; (3) reinsurance; (4) classification of categories of expenses; (5) method for issuing and selling an insurance policy, surrender value rates

of insurance policy, full payment value of insurance policy, extension of payment period, and conditions of payment thereof;

(6) wage or commission rates for life insurance agents or brokers; (7) form, size, lettering, language, and content of documents indicating

receipt of money by the company; (8) lending of money with an insurance policy placed as security; (9) distribution of dividends to insureds in installments; (10) types and maximum rates of insurance expenses; (11) receipt of money and payments, audits and internal controls; (12) compensation under life insurance contracts, and (13) minimum standards for the company’s risk management system.

29 Section 37/1 was added by Life Insurance Act (No.2), B.E. 2551 (2008). 30 Section 38 was added by Life Insurance Act (No.2), B.E. 2551 (2008).

24


Section 39 A company shall open its office for the public business on the dates and at the times prescribed by the Commission*. However, the company may open its officer longer than prescribed.

Section 40 A company shall keep the register and account book relating

to its business, in accordance with forms and particulars prescribed by the Registrar. When there is an event to register in the register and account book, the

company shall register it in the register and account books not later than seven days from the date of occurrence of the event.

Section 41 The register and account books under section 40 shall be

kept at an office of a company not less than ten years from the date of the last registration in the books or from the date which the company releases from the last liability, whichever period in longer.

Section 42 An interested person may require to inspect a register under

section 40, only particular which that person is concerned or may request a company to provide a certified copy of the said particular, provided that the person shall pay fee as prescribed by the Commission*.

Section 4331 A company shall prepare and submit financial statement and

report on result of its operation to the Commission as following: (1) audited quarterly financial statements; (2) audited financial statements for the last calendar year by an auditor with

his/her opinion, and (3) annual reports, showing the operating performance of the company.


25


The preparation and submission of the financial statement and report under the paragraph one shall be in accordance with the rules, procedures, conditions, and periods prescribed by the Commission. The auditor shall be a certified auditor under the law on accounting profession.

A company, which is a branch office of a foreign life insurance company, shall fulfill the obligations prescribed in paragraphs one and two, and submit an annual report of the foregoing life insurance company of which it is a branch within five months from the end of the accounting year of the foreign life insurance company.

Section 44 In the case that the annual report submitted by a company

under paragraph one of section 43 is incorrect or incomplete, the Commission* shall have the power to order a company to correct or complete the report within the period as prescribed by the Commission*.

In the case that the company fails to comply an order under paragraph one, the company shall be deemed to have not submitted the annual report under section 43.

Section 45 The Commission shall have the power to order a company to

submit any reports or documents regarding the operation of its life insurance business. The Commission may also order the company to prepare explanation or clarification of the content of the report or documents.32

The company shall completely and correctly prepare the reports or documents summited or presented or explanation.

Section 4633 A company shall publish its balance sheets and statements of

income in a form prescribed by the Commission within fifteen days from the date of

32 Section 45 paragraph one was amended by Life Insurance Act (No.2), B.E. 2551 (2008). 33 Section 46 was amended by Life Insurance Act (No.2), B.E. 2551 (2008).

26


submission of the financial statements under section 43(2), at least in one mass-circulation daily newspaper not less than three days. Each company shall also post such notice in a conspicuous at its head office and branch office of the company at least one month.

Section 46/134 For the purpose of giving public access to information

regarding the financial standing and operating results of a company, the Registrar shall have the power to order a company to reveal such information, in accordance with the rules, procedures, conditions, and periods prescribed by the Commission.

Section 4735 A company shall submit to the Commission an annual report

of the calculation of liabilities under insurance policies, certified by an actuary, in the form, rules, procedures, conditions, and period prescribed by the Commission.

Section 48 The Registrar and competent officer shall have the power to

examine activities and financial status of a company, and for the purpose of examination, the Registrar and the competent officer shall have the power:

(1) to enter into the office of the company, during working hours, to obtain information and in so doing they shall have the power to call for documents or other evidence from directors, managers, consultants, officers, or employees of the company and to question the said persons;

(2) to enter into the business place of the company or any premises where it is suspected that account books, documents, or seals, or any other documents relating the company’s business, properties or debts are kept in order to inspect or evaluate the property of the company during the working hours or between sunrise and sunset;

34 Section 46/1 was added by Life Insurance Act (No.2), B.E. 2551 (2008). 35 Section 47 was amended by Life Insurance Act (No.2), B.E. 2551 (2008).

27


(3) to order the company or persons concerned with the company’s business to deliver documents or other evidences, and

(4) to summon the person indicated in (1) or (3) to give statements or to order them to submit statements of fact as required.

The person concerned shall facilitate the performance of duty of the Registrar and the competent officer under paragraph one.

Section 49 In performance of duty under this Act, the Registrar and

competent officer shall present their identification cards in a form prescribed by the Ministerial Regulations, upon request by the person concerned.

Section 50 Any interested persons may request a registers and related

documents kept by the Registrar and copies certified upon submitting to the Registrar an application in a form prescribed by him/her.

Section 5136 Any company wishing to discontinue its life insurance

business shall submit an application for a permission to do so with the Commission. To protect the interests of insureds, beneficiaries of the insurance policy, or

interested persons, the Commission shall have the power to determine at least the following rules, procedures, conditions, and period to be fulfilled by the company before granting a permission for discontinuing of business:

(1) method for managing or transferring the obligations under insurance policies that remain binding;

(2) method for notifying insureds, beneficiaries of insurance policies, and interested persons to exercise their rights under law;


28


(3) transfer or request for receipt of the reserve under section 23 placed by the company with the Registrar under section 24;

(4) management of assets and liabilities in connection with the life insurance business and the business permitted to be carried out under section 28, and

(5) period for execution of the transactions under (1), (2), (3) and (4). In case that the Commission permits the company to discontinue its life

insurance business and the company intends to be dissolved, the dissolution shall take effect as from the date of receipt of permission for discontinuation and settle an account. But in case that the company does not intend to be dissolved, the company shall have its Memorandum of Association amended with changing its name and objectives in order to not be related to the life insurance business.

Liquidation and amendments to the Memorandum of Association shall be carried out in accordance with the law on public limited companies.

If the company which is a branch office of a foreign life insurance company discontinues its business, such company shall go into liquidation. The provisions of sections 65, 66 and 67 shall apply in the liquidation, mutatis mutandis.

Section 51/137 Subject to section 26, paragraphs two and three, a company

obtaining permission to discontinue its life insurance business shall return to the Registrar its life insurance business license, and shall submit an application for the return of the security deposit placed by the company under section 20.

Section 52 Any proceeds which an insured or a beneficiary of the

insurance policy or an heir of beneficiary has a right to receive under an insurance policy, if unclaimed against a company until the lapse of the period of prescription, shall be sent to

37 Section 51/1 was amended by Life Insurance Act (No.2), B.E. 2551 (2008).

29


the Fund by the company within one month from the end of a period of such period of prescription.

Section 5338 Where any event under section 27/7 occurs, or where

evidence suggests the Registrar that a company is of a condition, or operates its business in such a way that may cause damage to an insured or public, the Registrar, with the approval of the Commission, shall have the power to order such company to improve its condition or its operations of business within period of time prescribed by the Registrar, or to increase or reduce its capital in accordance with section 27 paragraph two.

If any company fails to increase or reduce its capital within the period of time prescribed by the Registrar under paragraph one, the Registrar’s order shall be deemed to be a resolution of the company’s shareholders meeting, as of the expiry of the prescribed period.

Where there is an urgent need for a company to increase or reduce its capital, in order to support its condition and carry on its business, the Registrar, with the approval of the Commission, may order the company to immediately increase or reduce its capital. Such order is deemed to be a resolution of the shareholders meeting.

The provisions of section 136 paragraph two (2), section 139 and section 141 of the Public Limited Companies Act B.E. 2535 (1992) shall not apply to the increase or reduction of capital under paragraphs two and three.

Section 54 When there is an evidence appearing to the Registrar that the

condition or operation of any company is such that damage may be caused to the insured and the public, or where its director or person responsible for the operation of any company fail to comply with the order of the Registrar under section 53, the Registrar shall have the


30


power to order such company to remove its director or person responsible for operation of the company who is cause of such condition or operation of the company.

In case that the Registrar orders the removal of any person under paragraph one, the company shall, with the Registrar’s approval, appoint other person to replace within one month from the date of removal.

In case that the company fails to remove such persons under paragraph one, or removes but fails to appoint other person to replace under paragraph two, the Registrar, with the approval of the Commission*, shall have the power to issue and posted in order of removal of such person or to appoint any person to replace no longer than three years. The provision of section 35 (4) shall not apply hereto.

The person appointed under paragraph three shall be entitled to remuneration prescribed by the Commission*, which is paid by the assets of the company. During the period that the person holds office, shareholders of the company shall not adopt a resolution to revoke or change the order of the Registrar.

The person removed by the order of the Registrar shall no longer be involved or manage, directly or indirectly, any affair of the company.

The order of removal or appointment issued by the Registrar under this section shall be deemed to be a resolution of the shareholders’ meeting.

Section 55 In the case that the Registrar gives an order under section 53

or section 54, but the financial conditions and operation of the company are not improved, the Minister may issue an order to control the company or revoke the company’s license to engage the business.

Section 56 When a company is placed under control, an order shall be

sent to the company by the Registrar and posted in public place at an office of the company, the Government Gazette and at least two daily local newspapers, in the locale of a head office of the company.

31


Section 57 If any company is placed under the control, the Minister shall

establish a company’s control committee consisting of a chairman and not less than two other members. The company control committee* has the power and duty to manage the affairs of the company in all respects, and the chairman of the committee shall be a representative of that company. The provision in section 35 (4) shall not apply.

In the case that the chairman is not able to perform duty, the Minister shall appoint any committee member to act in place of the chairman.

The company’s control committee* shall have the power to appoint a director, officer and employee of the company under control, or any other persons to perform any duty of the company.

The establishment of such committee and the appointment of a member to act in place of the chairman shall be published in the Government Gazette.

Section 58 If a company is been under control, no director or officer of

that company shall operate the business, unless they are appointed by a company’s control committee.

Section 59 When any company is placed under control, the directors,

officers and employees of the company shall take proper actions in order to safeguard the company’s properties and interests and shall promptly report its affairs and submit, without delay, its properties together with account books, documents, seal and other evidence related to its affairs and assets to a company’s control committee.

Section 60 A company’s control committee shall have the power to

order any person to testify or present or submit account books, documents, seal or other evidence related to affairs and assets of the company placed under control.

32


Section 61 When a company’s control committee considers that a company placed under control is able to continue its business operation, the committee shall report the Minister. If the Minister deems appropriate, then shall order to revoke the control on the company. When the Minister makes such order, the Registrar shall inform the company about the order and publish such order in the Government Gazette and at least two daily newspapers in the locales of the head office of the company.

Section 62 When a company’s control committee considers that a

company placed under control is unable to continue its business operation, and has an appropriate reason to withdraw the license to engage in the life insurance business under section 64, the committee shall report the Minister. If the Minister deems appropriate, then shall order the withdrawal of the license to engage in the life insurance business under section 64.

Section 63 A company’s control committee may receive remuneration of operation which is prescribed by the Commission* and paid from the assets of the company.

Chapter lll

Revocation of Licenses to Engage in the Life Insurance Business

Section 64 The Minister shall have the power to revoke a license to

engage in the life insurance business, when there is evidence that suggests the Minister that a company:

(1) has liabilities more than its assets or has unstable financial condition that damages an insured or the public;

(2) violates the provisions of this Act or the Ministerial Regulations, conditions prescribed by the Minister, or notifications issued or prescribed in accordance with this Act, or fails to comply with an order of the Minister, the Registrar, or a competent

33


officer, given in accordance with this Act, provided that such violation or failure may cause to insured or the public;

(3) discontinues engaging in the life insurance business without appropriate reason;

(4) delays payment of the claim under investment policy or delays return of premiums to be paid or returned, without any appropriate reason, or pays or returns in bad faith, and

(5) continues engaging in the life insurance business, and may cause damage to the insured or the public.

Section 65 When a license to engage in the life insurance business of a

company is revoked, such company shall be dissolved on the date of revocation of the license and liquidation. In such liquidation, the Commission*, shall assign a liquidator. The power and duty of the general meeting shall be the power and duty of the Registrar.

Section 66 For the purpose of liquidation, a company which is a branch

office of foreign life insurance company shall be a limited company, and for such purpose, the Registrar and the Commission shall be the corporate registrar or company registration office under the Civil and Commercial Code, as the case may be, and reports to be submitted to the general meeting of shareholders shall be submitted to the Registrar, provided that they shall not prejudice any claim against such foreign insurance company.

Section 67 A liquidator appointed by the Commission* under section 65

may receive such remuneration prescribed by the Commission* and paid from the assets of a company.

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Chapter IV Life Insurance Agents and Brokers

Section 6839 No person shall act as a life insurance agent or broker unless such person obtains a license from the Registrar.

An application for the license and the license shall be in the form prescribed by the Registrar.

A life insurance agent’s license shall indicate the company for which the life insurance agent belongs.

Section 69 An applicant for a life insurance agent’s license shall have the

following qualifications; (1) being sui juris; (2) being domiciled in Thailand; (3) not being adjudge incompetent or quasi incompetent; (4) never being sentenced to imprisonment upon final judgment for offences

relating to property committed dishonestly, unless the sentence was completed at least five years prior to the date of application;

(5)40 not being bankrupt; (6) not being a life insurance broker; (7)41 not having a life insurance agent or broker license revoked within five

years prior to the date of application for a license, and (8) having studied the life insurance business from an institute prescribed by

the Commission*, or having passed an examination concerning life insurance knowledge, in

39 Section 68 was amended by Life Insurance Act (No.2), B.E. 2551 (2008). 40 Section 59 (5) was amended by Life Insurance Act (No.2), B.E. 2551 (2008). 41 Section 69 (7) was amended by Life Insurance Act (No.2), B.E. 2551 (2008).

35


accordance with the subjects and procedures prescribed by the Commission* in the notification.

Section 70 A person qualified under section 69 who wishes to be a life

insurance agent of any company shall submit an application for a life insurance agent to the Registrar, including a letter of intent to accept such person as a life insurance agent from a company and a certificate confirming that such person satisfactorily passed a training program at the Office of the Commission, or other training under the program or procedures prescribed by the Office of the Commission42.

An application for and an issuance of license shall be in accordance with the rules, procedures, and conditions prescribed by the Commission43.

A life insurance agent or one company may apply for a license to be a life insurance agent for another company. Such application shall be accompanied by a letter of consent from the company for which the applicant is already its life insurance agent, together with a letter from the new company, stating its intentions. The letter shall also mention that the new company acknowledges that the applicant is an agent of another company. After issuing the license, the Registrar shall notify the companies concerned.

The letter of intent under paragraph one and the letter of consent under paragraph three shall be in forms prescribed by the Registrar.

Section 70/144 A company shall be jointly liable with its life insurance agent

for the damages which the agent causes when acting as a life insurance agent for such company.

42 Section 70 paragraph was amended by Life Insurance Act (No.2), B.E. 2551 (2008). 43 Section 70 paragraph two was amended by Life Insurance Act (No.2), B.E. 2551 (2008).

44 Section 70/1 was added by Life Insurance Act (No.2), B.E. 2551 (2008).

36


Section 70/245 When performing duties or acting as a life insurance agent, a life insurance agent shall not present any false information or conceal any fact which ought to be clarified, and comply with the rules, procedures, and conditions prescribed by the Commission.

In case that the life insurance agent fails to comply with the paragraph one, the rights of insureds, beneficiaries, or related persons shall not be impaired.

Section 7146 A life insurance agent shall be entitled to receive an

insurance premium on behalf of a company. A life insurance agent may enter into a life insurance contract on behalf of

the company upon receiving a power of attorney of the company. A life insurance broker or a company officer, whose responsibility is to receive

money, may receive insurance premium on behalf of the company, upon receiving a power of attorney of the company.

The powers of attorney of the company under paragraphs two and three shall be in a form prescribed by the Registrar.

No right of an insured, a beneficiary of insurance policy or related person shall be impaired even the power of attorney of the company are not in the form prescribed by the Registrar.

Section 71/147 A life Insurance agent shall present a license every time while

soliciting a person to enter into a life insurance contract or receiving insurance premiums on behalf of a company.

The life insurance agent shall issue the company’s receipt of payment, upon the receipt of premiums on behalf of the company.

45 Section 70/2 was added by Life Insurance Act (No.2), B.E. 2551 (2008). 46 Section 71 was amended by Life Insurance Act (No.2), B.E. 2551 (2008). 47 Section 71/1 was added by Life Insurance Act (No.2), B.E. 2551 (2008).

37


Section 71/248 A life insurance broker or an officer of a company shall

present a power of attorney of a company upon receiving premiums on behalf of the company.

A life insurance broker or an officer of the company shall issue the company’s receipt of payment, upon receiving premium on behalf of the company.

The provision of paragraph one shall not apply to an officer of the company who performs duty in receiving premium at the office of the company.

Section 72 A natural person who applies for a life insurance brokers

license cannot be a life insurance agent or a director, a manager, an officer, or employee of any company, and the provision of sections 69 (1), (2), (3), (4), (5), (7), and (8) shall apply, mutatis mutandis.

A juristic person may apply for a life insurance broker if: (1) such juristic person has a head office in Thailand; (2) such business is in a scope of purpose of such juristic person; (3) such juristic person has officers or employees having license to be a life

insurance broker under this Act, and (4)49 such juristic person never has a life insurance broker’s license revoked,

within five years prior to the date of application. Section 73 A natural person or juristic person who is qualified under

section 72 and wishes to be a life insurance broker shall submit an application for a license to the Registrar.

48 Section 71/2 was added by Life Insurance Act (No.2), B.E. 2551 (2008). 49 Section 72 paragraph two (4) was amended by Life Insurance Act (No.2), B.E. 2551

(2008).

38


The issuance of a life insurance broker’s license to a juristic person shall be in accordance with the rules and conditions prescribed by the Commission*.

The application for a license and the license under this section shall be in the forms prescribed by the Registrar.

Section 74 A life insurance broker shall have an office as indicated in an

application for a license to be life insurance broker. In case that the office is relocated, the life insurance broker shall notify the Registrar in writing within five days from the date of change.

Section 75 A life insurance broker shall prepare a register, an account book, and documents concerning business in a form and particulars prescribed by the Commission*.

When there is an event to register in the register and account book under paragraph one, the life insurance broker shall register it in the register, account book and such documents not later than seven days from the date of occurrence of the event.

Section 76 A life insurance broker shall keep the registers, account

books, and documents related business, including documents attached to registers and account books at an office for not less than five years from the date the last record in the registers or account books.

Section 7750 A life insurance agent or broker license shall be valid for one

year from the date of issuance. Any licensee wishing to renew a license shall submit an application for renewal to the Registrar no later than two months prior to the expiration of the license. The applicant shall obtain from a certificate of additional training from the office

50 Section 77 was added by Life Insurance Act (No.2), B.E. 2551 (2008).

39


of the Commission or pass a training and procedure prescribed by the office of the Commission.

If the licensee under paragraph one renews the license two consecutive times and applies for the new renewal, the new license shall be valid for a period of five years.

The application for the renewal and its approval shall be in accordance with the rules, procedures and conditions prescribed by the Commission.

Section 78 When a life insurance broker is appointed as a director,

manager, officer, or employee of any company, a life insurance broker’s license of that person shall be terminated.

Section 79 In the case when a company delivers an insurance policy to

an insured or a beneficiary of insurance policy, or delivers an insurance policy to a life insurance broker for delivering to an insured or a beneficiary of insurance policy, it is presumed that the premiums for such policy is paid by the insured.

Section 80 For the purpose of inspecting the performance of a life

insurance broker, the Registrar and the competent officer shall have the power to order a life insurance broker to give statements, or submit registers, account books, or any documents, or reports in a form and particulars prescribed by the Registrar for inspection, or to enter into such person’s office between sunrise and sunset to perform such inspection. In this case, the life insurance broker shall cooperate with the Registrar.

40


Section 8151 The Registrar shall have the power to revoke a life insurance agent license or a life insurance broker license, if it appears to the Registrar that such life insurance agent or broker:

(1) commits an act that violates the provisions of this Act, (2) violates or fails to comply with the rules, procedures, and conditions

prescribed by the Registrar or the Commission; (3) lacks the qualifications under section 69 or section 72, as the case may

be, or (4) operates a business which causes or may cause damage to insured,

beneficiaries or the public. The Registrar shall notify the person whose license is revoked upon the

revocation of a license under paragraph one. Section 82 A person whose license is revoked under section 81 shall

have the right to appeal to the Commission* within fifteen days from the date on which the order becomes known. The Commission*’s decision is final.

Section 83 No person shall induce, advise, or in any manner act to make

any person to enter into a life insurance contract with a life insurer abroad or with any person except a person obtaining a license to engage in the life insurance business under this Act.

The provisions of paragraph one shall not apply in the case that a life insurance agent obtaining the license from the Registrar for inducement and advice to make any person licensed to engage in the life insurance business under this Act to enter into a reinsurance contract with a life insurer abroad


41


Chapter IV/I Actuaries52

Section 83/1 A report of the calculation of insurance policy liabilities under the insurance policies of a company shall be certified by an actuary.

Section 83/2 An actuary must obtain a license from the Registrar. An application and an issuance of the licenses shall be in accordance with

the rules, procedures, and conditions prescribed by the Commission. Section 83/3 A person applying for an actuary license shall have the

following qualifications: (1) being graduated in actuarial sciences in the programs prescribed in the

notification of the Registrar from an educational institute certified by the Civil Service Commission, and have conducted actuarial or statistical work related to insurance, prescribed by the Registrar, for a period of not less than five years, or

(2) being a fellow of the actuary association prescribed in the notification of the Registrar.

The notification of the Registrar under paragraph one shall be published in the Government Gazette.

52 Chapter IV/1 Actuaries section 83/1 to section 83/10 was added by Life Insurance Act (No.2), B.E. 2551 (2008).

42


Section 83/4 An applicant shall not meet any of the following disqualifications:

(1) having convicted to imprisonment by a final court judgment for an offense relating to property, or an offense under section 114/1 or section 114/2, unless having released no less than five years prior to the date of application;

(2) being non compos mentis or mentally incapacitated, incompetent, or quasi incompetent;

(3) being bankrupt; (4) having an actuary license suspended, and (5) having an actuary license revoked five years prior to the date of

application. Section 83/5 An actuary license shall be valid for two years from the date

of issuance. In applying for renewal of a license, a licensee shall submit an application no

later than two months prior to the date of expiration. And when the applicant submits an application, it shall be deemed that the applicant is a licensee, until receiving a rejection order.

An application for the renewal of the license and an approval shall be in accordance with the rules, procedures and conditions prescribed by the Commission.

Section 83/6 An actuary shall prepare a report or a document related to

the calculation of Insurance policy liabilities, or other mathematical analysis. In accordance with a form and particulars prescribed by the Registrar. The Registrar may request an explanation or clarification of such report or document.

Section 83/7 An actuary shall comply with the code of professional ethics,

as prescribed by the Commission in the Government Gazette.

43


Section 83/8 The Registrar shall have the power to suspend an actuary

license, if it appears to the Registrar that an actuary: (1) fails to comply with section 83/6 or section 83/7, or (2) certifies a report on calculation of insurance policy liabilities under

insurance policy without due care. The suspension of the license under paragraph one shall be in a appropriate

period prescribed by the Registrar, but not more than one year for each suspension. Section 83/9 The Registrar shall have the power to revoke an actuary

license, if it appears to the Registrar that the actuary: (1) lacks the qualifications under section 83/3; or possesses disqualifications

under section 83/4, or (2) having had an actuary license suspended and repeated any of the actions

under section 83/8. Section 83/10 An actuary whose license is suspended or revoked under

section 83/8 or section 83/9 shall have the right to appeal to the Commission within thirty days from receipt of the order to such effect. The Commission shall decide on the appeal within sixty days from the date of receipt of appeal.

The decision of the Commission shall be final.

44


Chapter V The Life Insurance Fund53

Section 84 A fund shall be called the “Life insurance fund”, have a status of a juristic person, with the purposes to protect the creditors who are entitled to receive payment of debts arising from taking insurance, in the case that a company becomes bankrupt or has its life insurance business license revoked, and for development of the life insurance business, to ensure its stability and security.

The Fund shall not be a government organization or state enterprise under the law on budgetary procedures.

Section 85 The Fund shall consist of: (1) money and assets transferred from the Fund for the Development of the

Life Insurance Business of the Office of the Commission; (2) money received under section 52; (3) money received under section 85/3; (4) surcharges received under section 85/4; (5) fine under section 117, less rewards and relevant express; (6) money or other assets given by other persons; (7) interest or income derived from money or assets of the Fund, and (8) Government subsidies. Section 85/1 The fund shall have the power to carry out any activities

within the scope of its purposes under section 84, such power shall include:

53 Chapter V The Life Insurance Fund section 84 to section 88 was amended by Life Insurance Act (No.2), B.E. 2551 (2008).

45


(1) owning, having possession rights and holding any proprietary rights; (2) creating rights or conduct any juristic acts in the Kingdom and elsewhere; (3) lending money to a company or its operations under the purpose of the

fund; (4) investing to gain interest from the assets of the Fund, and (5) acting in relation to or in connection with arrangements for the purposes

the Fund. Section 85/2 The Fund’s money shall be expended for the following

activities: (1) assisting the creditors who are entitles to receive repayment of debts

incurred from taking of insurance, in the case that a company becomes bankrupt or has its life insurance business license revoked;

(2) developing the life insurance business in order to ensure its stability and security, provided that the sum shall not exceed the amount received under section 85 (1) and (2), and

(3) managing the Fund, and paying expenses related to or in connection with the Fund management, provided that this shall not exceed the rate determined by the Fund Management Committee.

Section 85/3 A company shall make contributions to the Fund at the rate

prescribed by the Commission and approved by the Minister. The rate shall not exceed 0.5% of the insurance premiums received by the company during the six months prior to making contributions to the Fund.

The rules, procedures, conditions, and period for making contributions to the Fund shall be prescribed by the Commission.

46


In the case that the Fund has sufficient money and assets to operate in accordance with its purpose, the Commission, with the approval from the Minister, may announce a reduction of rates or discontinuation of contributions of the Fund.

Section 85/4 A company, failing to make correct and full contributions to

the Fund under section 52 or section 85/3, shall pay a surcharge, at the rate of 1.5% per month of such outstanding contribution. Fractions of a month are counted as one month.

In the case that the Registrar finds that the company fails to make contributions to the fund, as set out in section 52 or section 85/3, due to an event of force majeure, and the company makes contribution to the Fund within 7 days from the due date, the surcharge under paragraph one shall be reduced to 1.0%.

Throughout the period that the Company fails to make contributions to the fund, or fails to pay the surcharge under paragraph one, the Registrar shall order the company not to expand its business. Until the company correctly and fully makes contributions and surcharge, the Registrar lifts the order prohibiting business expansion.

For the purposes of this section, in determining whether an event is an expansion of business under paragraph three, the provisions in section 27/6, paragraph two, and the penalty in the case of a violation of section 27/6, paragraph one, as provided for under section 94/1, shall apply, mutatis mutandis.

Section 85/5 In case that a company is bankrupt, or has its license revoked,

and an amount received under section 26 is insufficient, a creditor entitled to receive repayment of debts incurred in taking insurance shall have the right to receive repayment from the Fund.

The sum, that each creditor receiving from the Fund and the repayment under section 26, shall not exceed the amount claimed against the insurance. If the amount claimed against all insurance contract is more than one million bath, the creditor is entitled to receive a repayment of only on million bath.

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The rules, procedures, and conditions for the payment, as well as the claimed amount incurred with regard to taking insurance under the paragraph two, shall be prescribed by the Commission.

Section 85/6 In the interest of fairness, the Commission, with the approval

from the Minister, may prescribe an amount to be paid to a creditor, who is entitled to the repayment, greater than the amount set out in section 85/5, paragraph two, for all or certain types of life insurance contracts.

Section 85/7 the Fund shall succeed the right of a creditor, who is entitled to

receive the repayment of a debt incurred from taking insurance and such repayment from an officer receiver or a liquidator, as the case may be, with a preferential right over the ordinary creditors of a company.

Section 86 A committee known as the “Fund Management Committee”

shall be established. The fund management committee shall consist of the Permanent Secretary of the Ministry of Finance, as a chairman, the Secretary General of the Commission, as a deputy chairman, a representative of the Bank of Thailand, two representatives of the Thai Life Insurance Association, and up to four qualified persons, appointed by the Minister, as members.

The Fund manager shall be a secretary. Section 86/1 The term of qualified members appointed by the Minister

shall be three years. In the case that a qualified member, appointed by the Minister, leaves the

office before the expiration of the term, or in the case that the Minister appoints an additional qualified member, a replacing member and an additional member shall retain the

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position for the remaining time of the term of person’s predecessor and other existing members.

Upon the expiration of the term set out in paragraph one, if no appointment is made, a member, who retires due to the end of the term, shall retain the position until a new member is appointed.

A retired member shall be eligible for re-election, but cannot retain office longer than two consecutive terms.

Section 86/2 Apart from retirement due to the end of a term under section

86/1, a qualified member appointed by the Minister shall be removed from his position upon:

(1) death; (2) resignation; (3) bankruptcy; (4) removal by the Minister due to remissness, misconduct, or lack of ability; (5) incompetence or quasi incompetence; (6) imprisonment by final judgment, or (7) becoming a political official or holding a political position. Section 86/3 The Fund Management Committee shall have the power and

duty as follows: (1) prescribing policies, rules, regulations and notifications, in relation to the

management of the Fund; (2) prescribing regulations regarding receipt, payment, and maintaining and

seeking interests of the Fund; (3) determining regulations regarding applications for repayment, and granting

approval to creditors entitled to repayment of debts incurred in taking insurance;

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(4) determining rates and regulations regarding to the use of money of the Fund in developing the life insurance business, for its stability and security;

(5) determining rules, procedures, and conditions for ending money to a company under section 85/1 (3);

(6) determining rates of expenses for the Fund management under section 85/2(3);

(7) determining regulations regarding to operation performed by the Fund manager, and

(8) determining any necessary or relevant acts for achieving the purposes of the Fund.

Determination under (2), (3), (4), (5) and (6) shall be subject to an approval from the Commission,

For the performance of its duties under paragraph one, the Fund Management Committee may ask the Registrar, the company or any person to submit documents or evidences for consideration.

Section 86/4 A quorum of a meeting of the Fund Management Committee

shall consist of not less than one-half of all its members. If the chairman is not present at the meeting, or unable to perform the

duties, the deputy of chairman shall serve as a chairman of the meeting, If the chairman or the deputy of chairman are not present, or unable to perform their duties, the members present in the meeting shall elect among themselves a chairman of the meeting.

Resolutions of the meeting shall require a simple majority of votes. Each member shall be entitled to one vote. In the event where the votes are equal, the chairman of the meeting shall be entitled to a casting vote.

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Section 86/5 In performing its duties under this Act, the Fund Management Committee shall have the power to establish the Sub-Committee to consider or carry out any tasks designated by the Fund Management Committee.

The provisions of section 86/4 shall be applied, mutatis mutandis, to a meeting of the Sub-Committee.

Section 86/6 The chairman, the members of the Fund Management

Committee, and the members of the Sub-Committee shall be entitled to an allowance for meeting attendance and other benefits as determined by the Minister.

Section 87 The Fund Management Committee shall appoint a Fund

manager, The Fund manager’s term, removal from office, and conditions for probationary and performing duties of a manager shall be in accordance with an employment contract determined by the Fund Management Committee. The term shall not exceed four years. Upon the expiration of the employment contract, the Fund Management Committee may renew the contract, provided that the Fund manager cannot retain his office for more than two consecutive terms.

The chairman shall be authorized to enter into the contract to with the manager, on behalf of the Fund.

The Fund manager shall receive wages, remuneration, and other money, as determined by the Fund Management Committee.

Section 87/1 A person appointed as a Fund manager shall be: (1) a Thai national; (2) not more than 65 years of age, and (3) able to work full-time for the Fund.

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Section 87/2 Other than the qualifications under section 87/1, a person appointed as the Fund Manager shall not have the following qualifications:

(1) having been convicted to imprisonment by a final court judgment for an offense relating to property;

(2) being or having been bankrupt; (3) being an official, an officer, or an employee of any ministry, bureau,

department, local administration, or state enterprise under the law on budgetary procedures or other governmental agencies;

(4) being a political official, or holding a political office; (5) holding any other position in a juristic person carrying out a business that

competes with the Fund, and (6) having direct or indirect interests in the contracts with the Fund, or in the

activities carried out for the Fund, except when a person appointed by the Fund Management Committee to be a director for a company whose shares are held by the Fund.

Section 87/3 With the exception of the retirement due to the expiration of

the employment contract, the Fund Manager shall be removed from his position upon: (1) death; (2) resignation; (3) lack of qualifications or possession of qualifications under section 87/1 or

section 87/2, or (4) resolution of the Fund Management Committee to terminate the

employment. Section 87/4 The Fund manager shall represent the Fund in relation to

activities of the Fund which is related to third persons. The Fund Management Committee shall prescribe regulations on performing and assigning or delegating any person to perform duties of the manager.

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Juristic acts or any acts carried out by violating the provisions of paragraph one shall not bind the Fund, unless the Fund Management Committee ratifies such acts.

Section 88 The Fund shall put-in-place and maintain its accounting

system in accordance with international accounting standards, have the in-house audits conducted on a regular basis, and have account books registered the following:

(1) sums received and expended, and (2) assets and liabilities representing actual and reasonable financial standing

together with information on the sources of them. Section 88/1 The Office of the Auditor-General, or an auditor approved by

the Office of the Auditor-General, shall be the auditor of the Fund. Section 88/2 An auditor’s report shall be submitted to the Fund

Management Committee within one hundred twenty days from the last day of each accounting year. A copy of the auditor’s report shall be submitted to the Commission and the Minister.

Chapter VI

Penalty Provisions

Section 89 Any company which violates or fails to comply with section 8

paragraph five, section 9, section 10, section 11, section 17, section 21 or fails to comply with the conditions prescribed by the Minister under section 7 paragraph four, section 8 paragraph one, or conditions prescribed by the registrar under section 33 (9) paragraph two or section 34 paragraph two, shall be liable to a fine of twenty thousand to two hundred

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thousand baht and if it is a continuing offence, to additional fine not exceeding ten thousand baht for each day such violation continues.

Section 90 Any company which does not inspect the shareholders

registration, or does not notify its shareholders failing to comply with section 12 shall be liable to a fine of ten thousand to fifty thousand baht, and if it is a continuing offence, to additional fine not exceeding five thousand baht for each day such violation continues.

Section 91 Any person who violates section 18 shall be liable to

imprisonment for a term of two to five years or to a fine of two hundred thousand to five hundred thousand baht, or to both, and to additional fine not exceeding twenty thousand baht for each day such violation continues.

Section 9254 Any person who violates section 19 paragraph one shall be

liable to a fine of twenty thousand to one hundred thousand baht and to additional fine not exceeding five thousand baht for each day such violation continues.

Any life insurance agent or life insurance broker who uses name or words representing a name in business in contravention of requirements, procedures and conditions prescribed under section 19 paragraph two shall be liable to imprisonment for a term not exceeding one year or to a fine not exceeding one hundred thousand baht or to both.

Section 9355 Any company which violates or fails to comply with section

23, section 28, section 22, section 34, section 35, section 36, section 37, section 53, section 54 or does not place the reserve under section 24 or fails to comply with the Commission’s

54 Section 92 was amended by Life Insurance Act (No. 2), B.E. 2551. 55 Section 93 was amended by Life Insurance Act (No.2), B.E. 2551.

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order under section 38, shall be liable to a fine not exceeding five thousand baht and if it is a continuing offence, to additional fine not exceeding twenty thousand baht for each day such violation continues.

Section 94 Any person who fails to comply with section 24 shall be

liable to a fine not exceeding fifty thousand baht. Section 94/156 Any company who violates section 27 paragraph five, section

27/1 paragraph one, section 27/3, section 27/4 or section 27/6 paragraph one, shall be liable to a fine not exceeding five hundred thousand baht.

Section 9557 Any company which issues policies or attached document or

endorsements in violation of section 29 or specifies rates of premiums in violation of section 30 or violates section 31 or fails to comply with section 32, shall be liable to a fine not exceeding three hundred thousand baht.

Section 96 Any company which fails to comply with section 39 shall be

liable to a fine not exceeding fifty thousand baht. Section 97 Any company which fails to comply with section 41 shall be

liable to a fine not exceeding one hundred thousand baht. Section 9858 Any company which violates or fails to comply with section

27/5 paragraph one, section 40, section 43, section 46, section 47 or fails to comply with the Commission’s order under section 45 or the registrar’s order under section 46/1 shall be

56 Section 94/1 was added by Life Insurance Act (No.2), B.E. 2551. 57 Section 95 was amended by Life Insurance Act (No.2), B.E. 2551. 58 Section 98 was amended by Life Insurance Act (No.2), B.E. 2551.

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liable to a fine not exceeding one hundred thousand baht and to additional fine not exceeding fifty thousand baht for each day such violation continues.

Section 99 Any company which does not allow interested person to

inspect registration or to provide a certified copy of such registration as requested by the interested person under section 42 shall be liable to a fine not exceeding five thousand baht.

Section 100 Any company which willfully gives false statement or conceals a fact to be informed while submitting particulars, or informed under section 45 shall be liable to a fine of twenty thousand to one hundred thousand baht.

Section 101 Any person who obstructs or does not facilitate a registrar or

a competent officer in performing duties under section 48 or violates order of registrar or competent officer who issued such order under section 48 shall be liable to imprisonment for a term not exceeding one month or to a fine not exceeding ten thousand baht or to both.

Section 10259 Any company which violates section 51 paragraph one shall

be liable to a fine not exceeding five hundred thousand baht. Section 103 Any person who violates section 54 paragraph five shall be

liable to imprisonment for a term not exceeding three years or to a fine not exceeding three hundred thousand baht or to both.

59 Section 102 was amended by Life Insurance Act (No.2), B.E. 2551.

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Section 104 Any person who violates section 58, section 59 or section 60 shall be liable to imprisonment for a term not exceeding six months or to a fine not exceeding fifty thousand baht or to both.


liable to imprisonment for a term not exceeding six months or to a fine not exceeding fifty thousand baht or to both.

Section 10660 Any life insurance agent who enters into a life insurance

contract without a written authorization from the company under section 71 paragraph two or any life insurance broker or employee of the company receives premiums without a written authorization of the company under section 71 paragraph three shall be liable to imprisonment for a term not exceeding two years or to a fine not exceeding two hundred thousand baht or to both.

Section 106/161 Any life insurance agent who violates or fails to comply with

section 30/1 paragraph two or fails to comply with section 71/1 shall be liable to a fine not exceeding thirty thousand baht.

If the action under the first paragraph causes damages to interested company or person, he/she shall be liable to imprisonment for a term not exceeding three months or to a fine not exceeding thirty thousand baht or to both.

Section 106/262 Any life insurance broker or company’s employee who fails

to comply with section 71/2 shall be liable to a fine not exceeding thirty thousand baht or to both.

60 Section 106 was amended by Life Insurance Act (No.2), B.E. 2551. 61 Section 106/1 was added by Life Insurance Act (No.2), B.E. 2551. 62 Section 106/2 was added by Life Insurance Act (No.2), B.E. 2551.

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If the action under the first paragraph causes damages to interested company or person, he/she shall be liable to imprisonment for a term not exceeding three months or to a fine not exceeding thirty thousand baht or to both.

Section 107 Any life insurance broker who does not have office as

specified in an application to be a life insurance broker or as informed of change of the office to the registrar under section 74, shall be liable to a fine ten thousand to fifty thousand baht.

Section 108 Any life insurance broker who moves the office without

informing a registrar under section 74 shall be liable for a fine not exceeding ten thousand baht.

Section 109 Any life insurance broker who fails to comply with section 75

paragraph one or does not record in the register and account books under section 75 paragraph two shall be liable to a fine not exceeding fifty thousand baht and to additional fine not exceeding twenty thousand baht for each day such violation continues.

Section 110 Any life insurance broker who fails to comply with section 76 shall be liable to a fine not exceeding fifty thousand baht.

Section 111 Any life insurance broker who fails to comply with the order

to report of a registrar or a competent officer who orders the report under section 80 shall be liable to imprisonment for a term not exceeding one month or to a fine not exceeding ten thousand baht or to both.

Section 112 Any persons who obstructs or does not facilitate registrar or

competent officer who performs duties under section 80 shall be liable to imprisonment for a term not exceeding one month or to a fine not exceeding ten thousand baht or to both.

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liable to imprisonment for a term not exceeding six months or to a fine not exceeding fifty thousand baht or to both.

Section 11463 In case where any company willfully commits an offence in

violation of section 23, section 28, section 36 or section 51 paragraph one, or willfully gives false statement or conceals facts to be informed or to clarify under section 45, any director or person responsible of the wrongdoing of the company shall be liable to imprisonment for a term not exceeding one year or to a fine not exceeding one hundred thousand baht or to both, unless it is proven that he/she is not involved in such wrongdoing.

Section 114/164 Any person who violates section 83/2 shall be liable to

imprisonment for a term not exceeding three years or to fine not exceeding three hundred baht or to both.

Section 114/265 Any actuary who made produces a guarantee of a report of

calculation of responsibility according to insurance policies or produces a report or any documents relevant to report of calculation of responsibility according to insurance policies which is false, shall be liable to imprisonment for a term not exceeding two years or to a fine not exceeding two hundred thousand baht or to both and the provisions under section 115 paragraph two and three shall apply mutatis mutandis.

63 Section 114 was amended by Life Insurance Act (No.2), B.E. 2551. 64 Section 114/1 was added by Life Insurance Act (No.2), B.E. 2551. 65 Section 114/2 was added by Life Insurance Act (No.2), B.E. 2551.

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Section 115 In case of any of the following: (1) In operation of the company, any director or any person responsible for

the operation of the company commits an offence against property under chapter 1, chapter 3, chapter 4, chapter 5 or chapter 7 of Title 12 of the Criminal Code, or section 40, section 41 or section 42 of the Act on the Penalty of Registered Partnerships, Limited Partnerships, Limited Companies, Associations, and Foundations, B.E. 2499, or section 215 or section 216 of Public Company Act, B.E. 2535.

(2) In auditing the company’s accounts, any auditor who commits an offence under section 269 of the Criminal Code, or section 31 of the Act on the Penalty of Registered Partnerships, Limited Partnerships, Limited Companies, Associations, and Foundations, B.E. 2499

(3) Any person who is an instigator or supporter of an offence under (1) or (2). The Department of Insurance shall be deemed to be the injured party under

the Criminal Procedure Code. For any offence under this section, when a public prosecutor files the

criminal case, the public prosecutor shall have the power to call for properties, or prices, or claim compensation for damages on half of the injured party. In such case, the provisions relating to filing a civil case concerning criminal case under the Criminal Procedural Code shall apply mutatis mutandis.

Section 116 Where there is evidence that any person commits an offence

under section 115 and the Department of Insurance considers that such commission could cause public damage, the Insurance Commission shall have the power to order the seizure or attachment of properties of that person, or properties which may legally be deemed to be the property belonging to that person. The said seizure or attachment shall not last more than six months, unless a case has been filed to the Court and the Court ordered the seizure or attachment until otherwise ordered. In case of failure to file the case within six

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months, the Court under which has territorial jurisdiction may extend the period of seizure or attachment as requested by the Commission.

The Department of Insurance shall have the power to appoint officials of the Office of Insurance Commission to conduct the seizure or attachment under paragraph one.

The provisions of the Revenue Code shall apply to seizure or attachment of properties under the first paragraph mutatis mutandis.

In the case under paragraph one and where there is reasonable ground for suspecting that the said person would flee the country, when requested by the Department of Insurance, the Criminal Court shall have the power to restrain that person from leaving the country. In case of emergency, the Secretary General of the Insurance Commission or any person appointed by the Secretary shall notify the director-general of the Department of Police. The Director General of the Police Department, or in case of emergency, when the Director General of the Police Department shall have the power to provisionally restrain that person from leaving the country for a period not exceeding fifteen days until the Criminal Court orders otherwise.

Any person who violates the order of the Criminal Court or the Director General of the Police Department under paragraph four shall be liable to imprisonment for a term not exceeding ten years and to a fine not exceeding one million baht.

Section 117 A Committee appointed by the Minister shall have the power

to settle disputes arising from offences under this Act, except for offences under section 91 and section 116.

The Committee of Settlement that is appointed by the Minister under paragraph one shall consist of three persons and one person shall be an inquiry official under Criminal Procedure Code.

When the Committee of Settlement has settled the dispute of any case and the alleged offender pays the fine as determined by the Committee within the time specified, the case shall be dismissed.

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Section 117/166 Offences under this Act which carries penalty only as a fine,

if the case has not been brought to the Court or has not been settled under section 117 within five years, the case shall be precluded by prescription.

Section 117/1267 In case where a company, an insurance agent, an insurance

broker or an actuary violates or fails to comply any provisions under this Act or Ministerial Regulations or Announcement under this Act, the Office of Insurance Commission shall have the power to announce or make such violation or failure to compliance public by specify details of the violation or failure to comply including the name of the concerned persons to the public, in accordance with the rules and procedures prescribed by the Commission.

Transitional Provisions

Section 118 Any company which already obtained a license to engage in the life insurance business under the Life Insurance Act, B.E. 2510 shall be deemed as a company that obtained the license to engage in the life insurance business under this Act. Branch offices of the company that was licensed under the said Act before or on the day of the coming into force of this Act shall be deemed as a branch office of a company licensed under the Act, in accordance with the conditions prescribed by the Minister relating to licensing.

66 Section 117/1 was added by Life Insurance Act (No.2), B.E. 2551. 67 Section 117/2 was added by Life Insurance Act (No.2), B.E. 2551.

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Section 119 The company under section 118 which has issued shares in contradiction with the procedures under section 9 of this Act shall correct such action to be in compliance with section 9 of this Act within two years from the day of the coming into force of this Act.

Section 120 The company under Section 118 of which the number of

shareholders or directors of Thai nationality is less than the rate prescribed under section 10 of this Act may retain the same number of the shareholders or directors of Thai nationality.

Section 121 The company under section 118 which already had a branch

office which is separate from the head office and has any operation for the profits of the company under section 118 shall apply for permission to open a branch in compliance with the provisions under this Act, or discontinue such office. The said procedure shall be completed within one year from the day of the coming into force of this Act and that company under section 118 shall not be deemed as violating section 17 during that period.

Section 122 The company under section 118 shall place the security

deposit in compliance with section 20 of this Act within one year from the day of the entry into force of the Ministerial Regulations under section 20 of this Act.

Section 123 The company under section 118 shall provide the

maintenance for the capital fund in compliance with section 27 of this Act within three years from the day of the coming into force of this Act.

Section 124 Section 34 of this Act shall not apply to any immovable

property that the company under section 118 had acquired or owned before the date of the coming into force of this Act. Such property shall be disposed in accordance with section 34 of this Act within nine years from the date of its cessation of use or the date of

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the acquisition, unless the company under section 118 acquired or owns such immovable property before 14 April B.E. 2510.

Section 125 Section 35 of this Act shall not apply to any person who is a

rightfully director, manager, officer, authorized person in the management or advisor to the company under section 118 before or on the day of the coming into force of this Act.

Section 126 The company shall inspect and send any proceeds that an

insured person or beneficiary under the insurance policy or heir to the insured person are entitled to receive under the insurance policy but barred by prescription, to the Fund within three months from the day of the coming into force of this Act, if such proceeds are in the possession of the company on the day of the coming into force of this Act. Section 85 shall apply mutatis mutandis.

Section 127 Any company under section 118 which has been approved to

operate in the non-life insurance business under the law relating to non-life insurance before or on the day of the coming into force of this Act may operate such non-life insurance business under that license under the following conditions:

(1) The security deposit that must be placed with the registrar and the fund maintained by the company under section 20 and section 27 of this Act, shall be security deposit. The Fund should be separate from security deposit and must be placed and maintain under the law relating to non-life insurance.

(2) The books of account of non-life insurance business shall be separate from the books of account of life insurance business.

(3) In case where the Minister orders to revoke the company’s license to engage in the life insurance business under section 64 of this Act, it shall be deemed that the Minister also orders to revoke the license to engage in non-life insurance business of the company under section 118.

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A company under paragraph one shall establish a new company for obtaining a license to engage in the non-life insurance business under the law relating to non-life insurance business by receiving transfer of properties, debt and liabilities under insurance policy, including officers and employees in the non-life insurance business of the company under section 118 to be part of the newly set up company within eight years from the day of the coming into force of this Act. If the new company has not been set up to obtain a new license within such time or violates this section, the license to engage in non-life insurance business of the company under section 118 shall be deemed to be expired.

Section 128 Where necessary, the Minister may extend the period under

section 119, section 121, section 122 and section 123 of this Act when the company under section 118 requests by manifesting necessary reasons. Such extension shall not exceed two years from the day of the expiry of the period specified under section 119, section 121, section 122 and section 123.

Section 129 Any person who has obtained license to be insurance agent

or insurance broker under the Life Insurance Act, B.E. 2510 shall be a person having obtained license to be insurance agent or insurance broker under this Act.

Section 130 Any person who has obtained license to be insurance agent

or insurance broker under the Life Insurance Act, B.E. 2510 shall notify the termination of acting as insurance agent or insurance broker to the registrar within two months from the day of the coming into force of this Act. After the expiry of such period, if that person has not notified the termination of acting as insurance agent or insurance broker to the registrar, the license to be insurance agent or insurance broker shall be deemed terminated since the expiry of the period to notify the termination.

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Section 131 All Ministerial Regulations, Notifications or conditions for approval issued or prescribed before or on the day of the coming into force of this Act shall continue to be in force to the extent that they are not contrary or inconsistent with this Act until there is Ministerial Regulations, Notifications or conditions issued under this Act. Countersigned by Anand Panyarachun Prime Minister

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Schedule of Fee68

(1) Application for life insurance business license 400,000 baht (2) Life insurance business license 4,000,000 baht (3) Life insurance business license, in case of amalgamation 200,000 baht (4) License to open a branch of the company 80,000 baht (5) Permission to relocate the head office or branch office 200,000 baht (6) Application fee for examination to receive a life insurance agent license or a life insurance broker license 400 baht (7) Life insurance agent license 800 baht (8) License of a corporate life insurance broker 40,000 baht (9) License of an individual life insurance broker 800 baht (10) Application for an actuary license 500 baht (11) Actuary license 20,000 baht (12) Replacements for every type of license 400 baht (13) Annual fee for the undertaking of a life insurance business 200,000 baht (14) Renewal of a life insurance agent license (for one year) 400 baht (15) Renewal of a life insurance agent license (for five years) 2,000 baht (16) Renewal of a corporate life insurance broker license (for one year) 12,000 baht (17) Renewal of a corporate life insurance broker license (for five years) 60,000 baht (18) Renewal of an individual life insurance broker license

68 Schedule of Fee was amended by Life Insurance Act (No.2), B.E. 2551

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(for one year) 400 baht (19) Renewal of an individual life insurance broker license (for five years) 2,000 baht (20) Renewal of an actuary license 12,000 baht (21) Examination of documents (for each examination) 100 baht (22) Extraction or certification of a copy of a document (per page) 100 baht (23) Application for approval of the form and content of an insurance policy, relevant document, or annex (per form) 4,000 baht (24) Application for approval of premium rates (per form) 4,000 baht

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