Insurance
1.Draft Amendments to Insurance Act
On 11 June 2024, the Financial Supervisory Commission (FSC) announced the draft amendments to the “Insurance Act”. We summarize below:
(1)Given the necessity to establish internal operation systems and procedures for the insurance enterprise to engage a third party to deal with the insurance operation so as to ensure the quality of operations and the rights and interests of customers, and reduce possible risks, it is proposed to specify the legal authorization basis for such engagement. Additionally, the penalties for violators are added.
(2)To add that specific objects that cannot be insured by the domestic insurance enterprises may contact foreign insurance enterprises for insurance after the insurance brokers applies with the competent authority for approval.
(3)To specify that if an insurance contract with the debtor as the proposer has specific circumstances, the rights arising from it shall not be subject to seizure or compulsory execution, and insurance contracts exceeding the prescribed limit may only be subject to seizure or compulsory execution in accordance with the laws within the scope of the exceeding portion.
(4)To ensure that when an insurance contract is seized or enforced, the insured, beneficiary, etc. can extend the validity of the contract by exercising the right to intervene to maintain the insurance protection necessary for their livelihood and economy, and become the proposer, it is proposed to specify that when the non-forfeiture value of the insurance contract is seized, the named beneficiary or insured, the insured when the beneficiary is not named, the proposer’s and the insured’s relatives within a certain range, with the written consent of the proposer and the insured, may intervene in the insurance contract and obtain the status of the proposer after paying the creditor designated by the execution court, the administrative execution branch or the execution order within the amount of cancellation of the contract, and after the execution court or the administrative execution branch notifies the insurer.
Reported by: David Tsai / Sean Tsai
Financials
2.“Guidelines for Financial Institutions on Greenwashing Prevention”
On 30 May 2024, the FSC promulgated the “Guidelines for Financial Institutions on Greenwashing Prevention” (Guidelines). We summarize below:
(1)The Guidelines provide the definition of greenwashing.
(2)The Guidelines are applicable to domestic financial institutions (including their overseas branches and subsidiaries of international financial groups in Taiwan), covering financial holding companies, banks, securities firms, futures enterprises, securities investment trust enterprises and securities investment consulting enterprises, insurance companies, and bills finance companies.
(3)The Guidelines provide principles that sustainability-related statements should comply with.
(4)The Guidelines provide examples of hypothetical greenwashing scenarios for the industry’s reference.
(5)The Guidelines provide management requirements for financial institutions in relation to sustainability-related statements.
Reported by: Jeffrey Liu / Jason Su
Intellectual Property
3. Amendment to “Guidelines on Hearing Procedures for Trademark Dispute Cases”
On 11 June 2024, the Ministry of Economic Affairs (MOEA) announced the amendment to the “Guidelines on Hearing Procedures for Trademark Dispute Cases”, which took effect on 11 June 2024. We summarize below:
(1)For trademark dispute cases examined under the hearing procedure, the Taiwan Intellectual Property Office (“TIPO“) shall issue a hearing announcement and appoint at least three examiners to conduct a hearing in a collegial manner.
(2)TIPO may hold preliminary hearing depending on the complexity of the case.
(3)If the public nature of the hearing is detrimental to public welfare or causes significant harm to the parties involved, a specific reason must be provided to apply for a non-public hearing procedure. It is also stipulated that during the hearing, parties may only express opinions based on written statements or briefs. Additionally, if there are changes to the hearing date or location, cancellation of the hearing, or changes in examiners, a new notification and announcement procedure must be followed.
(4)The presiding official of the hearing is allowed to appropriately disclose opinions on factual, legal, or evidential disputes.
(5)Hearings may be conducted via video conferencing, and the effects of absence from the hearing are specified.
(6)The hearing record may be summarized in the form of questions and answers (Q & A), supplemented by audio or video recordings. The signature method and legal effect of hearing records conducted via video conferencing are also specified.
Reported by: Jolene Wang / Alex Miao
4. Amendment to “Program for Hearing Patent Invalidation Cases”, Renamed as “Guidelines for Hearing Patent Invalidation Cases”
On 11 June 2024, the MOEA announced the amendment to the “Program for Hearing Patent Invalidation Cases,” renamed as “Guidelines on Hearing Procedures for Patent Invalidation Cases”, which took effect on 11 June 2024. We summarize below:
(1)For invalidation cases examined under the hearing procedure, the TIPO shall issue a hearing announcement and appoint at least three examiners to conduct the hearing in a collegial manner.
(2)The functions of the preliminary hearing are enhanced, allowing issues such as organizing and simplifying disputed issues, clarifying the post-grant amendments of the invalidation cases, and specifying procedures for agreement on key points of defense and offense to be addressed during the preliminary hearing. It is also stipulated that both parties shall be bound by the agreement reached.
(3)If the public nature of the hearing is detrimental to public welfare or causes significant harm to the parties involved, a specific reason must be provided to apply for a non-public hearing procedure. It is also stipulated that during the hearing, parties may only express opinions based on written statements or briefs. Additionally, if there are changes to the hearing date or location, cancellation of the hearing, or changes in examiners, a new notification and announcement procedure must be followed.
(4)The presiding official of the hearing is allowed to appropriately disclose opinions on factual, legal, or evidential disputes.
(5)Hearings may be conducted via video conferencing, and the effects of absence from the hearing are specified.
(6)The hearing record may be summarized in the form of questions and answers (Q & A), supplemented by audio or video recordings. The signature method and legal effect of hearing records conducted via video conferencing are also specified.
Reported by: Jolene Wang / Alex Miao
| Editors: Mike Lu (Partner) Stacy Lo (Partner) Jeffrey Liu (Partner) Kang-Shen Liu (Partner) David Tsai (Partner) Angela Lin (Partner) Paul Hsu (Partner) | Counselors: Echo Yeh Sue Su Jolene Wang (Lexcel Partners IP Firm) |