(The Object) Article 1. This Law aims at protection of the interests of the policy-holders and at the same time contribution to the sound development of the insurance business by having the life insurance soliciters and non-life insurance agents registered and thus supervising the soliciting of insurance contracts prosecuted by these persons and the officers and empolyees of the insurance companies.

(Definitions) Article 2. A "life insurance solicitor" as used in this Law shall mean a person who is commissioned by a life insurance company to act as intermediary in making life insurance contracts for the insurance company, but who is not an officer nor an employee of the insurance company. A "non-life insurance agent" as used in this Law shall mean a person who is commissioned by a non-life insurance company and on behalf of the company concludes non-life insurance contracts for the insurance company, but who is not an officer nor an employee of the insurance company. "Soliciting" as used in this Law shall mean an act or acts of intermediation in effecting, or of concluding insurance contracts as agents. A "consignor-insurance company" as used in this Law shall mean an insurance company which commissions others to do the soliciting. The "Writings and drawings for soliciting" as used in this Law shall mean newspaper advertisements, printed matters, signs and all other writings and drawings used for the purpose of the soliciting or of giving facilities for the soliciting.

(The Registration) Article 3. The life insurance solicitors and non-life insurance agents must have themselves registered in accordance with the provisions of this Law. The persons who desire to have themselves registered in accordance with the provisions of the preceding paragraph must file for the Minister of Finance an application for registration in which the following items are mentioned and pay the registration fee in accordance with the provisions of the Cabinet Order concerned: 1. The name or firm name or designation; 2. The domicile or location of business office; 3. The firm name or designation of the insurance company by which he is commissioned; 4. In case he is engaged in other business, the kind of such business. The application for registration of the preceding paragraph shall be accompanied by the following documents: 1. The contract of commission; 2. The personal history, copy of the family register of the applicant and the legal representative; In case the applicant is a juridical person or non-juridical personal corporation or foundation, the following documents must be attached in lieu of the documents mentioned under item 2 of the preceding paragraph: 1. The Articles of Incorporation; 2. A written paper stating the name and domicile of the representative or administrator; 3. A written paper stating the name or the designation and the number of the stocks owned by them, or the amounts contributed by the stockholders or contributors designated by Ordinance; 4. Balance sheet and profit and loss account of the latest business year.

(The Register) Article 4. The life insurance solicitor register and non-life insurance agent register must be kept by the Ministry or Finance. In case where the application for registration has been filled in accordance with the provisions of the preceding Article, excepting the cases which come under the provisions of Art.5, the Minister of Finance must immediately register the following items in the life insurance solicitor register or the non-life insurance agent register of the preceding paragraph: 1. The name, firm name or designation; 2. Domicile or location of business office; 3. The firm name or designation of insurance company by which he is commissioned: 4. The date of registration; 5. Such other matters as are required to complete the registration.

(Refusal of Registration) Article 5. If, in case where the application for registration is filed in accordance with the provisions of Art.3, the applicant falls under any one of the following items, or if a false entry is made in regard to important items of omission is made of important items in the application for registration or the accompanying documents, the Minister of Finance must refuse his registration after investigating facts in regard to the applicant: 1. A bankrupt who has not been reinstated; 2. A person who has been sentenced to imprisonment or heavier penalty or who has been sentenced to a fine under this Law and who has not passed five years as from the termination of the execution of the sentence or from the day on which it was decided that the sentence was not to be executed; 3. A person whose registration has been cancelled in accordance with the provisions of this Law and five years have not passed since the day of such cancellation; 4. A minor who in regard to business is not of the same full legal capacity as an adult or a person adjudged incompetent and whose legal representative comes under one of the preceding items; 5. A juridical person or non-juridical personal corporation or foundation of which one or more of the officers come under any one of the stipulations of from item 1 to item 3 inclusive; 6. A person who has misappropriated the permiums he has received in regard to the soliciting for other use, or who has done similar acts, or who has done an extremely improper act in regard to the soliciting. The refusal of registration in accordance with the provisions of the preceding paragraph shall be made in writing and shall state the reasons.

(Notification of Refusal of Registration) Article 6. When the registration has been refused in accordance with the provisions of the preceding Article, the Minister of Finance must immediately notify the applicant to that effect.

(Report of Changes) Article 7. When a change has taken place pertaining to the item mentioned under Art.3 Par.2 or in regard to the items mentioned in the documents stated under Par.3 item 1 or Par.4 item 1 of the same Article, a life insurance solicitor or non-life insurance agent must without delay report to that effect to the Minister of Finance.

(Report of the Officer or Employee of the Life Insurance Solicitor or Non-Life Insurance Agent) Article 8. In case the life insurance solicitor or non-life insurance agent cause an officer (meaning an officer who is not entitled to the right of representation, the same applies hereinafter excepting the cases of Art.10 and Art.16) or employee to engage in the soliciting, his name and residence must be reported to the Minister of Finance. The same applies where any change has taken place in regard to the items thus reported.

(Persons who may do the Soliciting) Article 9. Persons who are other than the officers or employees of an insurance company of the life insurance solicitors or non-life insurance agents who have been registered in accordance with the provisions of Art.4 Par.2 shall not engage in the soliciting.

(Restrictions on Side Business of Life Insurance Solicitors) Article 10. A life insurance company must not have a life insurance solicitor comissioned by other life insurance company to engage in the soliciting by commission. A life insurance solicitor must not concurrently be officer or employee of another life insurance company nor can be commissioned by another life insurance company to do the soliciting.

(Liability for Indemnification of the Consignor-Insurance Company) Article 11. A consignor insurance company shall be liable to indemnify the loss which a life insurance solicitor or non-life insurance agent has inflicted upon the policyholder. However, this does not apply to cases where the Company has paid due care in appointing the life insurance solicitor or where the Company has taken proper care for the prevention of the loss. The provisions of the preceding paragraph shall not prevent the Company from execrising its right of claim against the life insurance solicitor or non-life insurance agent. The provisions of Art.724 of the Civil Code (Law No.89, 1896) shall apply with the necessary modifications to the right of claim of Par.1.

(The Manner of Safekeeping Premiums by Non-life Insurance Agents) Article 12. When keeping the premiums received for the company by which he is commissioned, a non-life insurance agent must keep them distinctly separated from his own property. Matters necessary in regard to the safekeeping of the premiums of the preceding paragraph shall be provided for by an Ordinance.

(The Ledger of a Life Insurance Solicitor or Non-life Insurance Agent) Article 13. The consignor-insurance company must keep a ledger concerning the life insurance solicitors or non-life insurance agents, in accordance with the provisions of an. Ordinance, at its head office or the principal business place or at its branch offices or subordinate business offices. The persons interested may, when necessary, require the consignor-insurance company for inspection of the ledger of the preceding paragraph.

(Writings and Drawings for Soliciting) Article 14. The writings and drawings for soliciting used for the purpose of soliciting by the officers, employees or life insurance solicitors of an insurance company or non-life insurance agent must bear the fiam name or designation of the insurance company to which these persons or of the insurance company by which they are comissioned or the name, firm name or designation of the life insurance solicitors or non-life insurance agents.

(Items Prohibited to be Mentioned in the Writings and Drawings for Soliciting) Article 15. When mentioning items concerning the assets and liabilities of an insurance company in the writings and drawings for soliciting, items different in substance from those mentioned in the documents submitted to the Minister of Finance in accordance with the provisions of Art.82 Par.1 of the Insurance Business Act (Law No.41, 1939) must not be mentioned. In the writings and drawings for soliciting, items concerning estimates of the distribution of future profits or surplus of an insurance company must not be mentioned. The provisions of the preceding two paragraphs shall apply with the necessary modifications to cases where the items concerning the assets and liabilities and the items concerning estimates of the distribution of future profits and surplus of an insurance company are made known to nonspecific persons by means of radio-broadcasting, motion pictures, speeches or by other ways.

(Prohibited Acts Concerning, Conclusion or Soliciting) Article 16. The officers, employees or life insurance solicitors of an insurance company or non-life insurance agents must not do the following acts in connection with the conclusion or soliciting of insurance contracts: 1. The act of making misrepresentations to the insurance contractors or the insured, or of misinforming them of items of comparison in regard to a part of the contract clauses contained in insurance contracts, or of wilfully withholding information from them in regard to important items contained in the contract clauses of an insurance contract; 2. The act of preventing the insurance contractors or the insured from stating material facts to the insurance company or of inducing them not to state them; 3. The act of inducing thers insurance contracto or the insured to make a misrepresentation to the insurance company in regard to material facts; 4. The act of promising the insurance contractors or the insured the offer of special benefits or of offering premium rebate, refund or other special benefits; The provisions of item 4 of the preceding paragraph shall not apply to cases where the act is peformed by an insurance company based upon the documents mentioned under Art.1 Par.2 of the Insurance Business Act.

(Prohibition of Self-Agent) Article 17. A non-life insurance agent must not, as his primary purpose, solicit insurance contracts of which the insurance contractor or the insured is himself or the person by whom he is employed. When the sum total of the premiums on the insurance contrcts solicited by a non-life insurance agent of which the insurance contractor or the insured is himself or the person by whom he is employed comes to exceed 50/100 ths of the sum total of the premiums on the insurance contracts solicited by the non-life insurance agent concerned, the non-life insurance agent concerned shall, in so far as the application of the stipulation of the preceding paragraph is concerned, be deemed to be one whose primary purpose is to solicit insurance contracts of which the insurance contractor or the insured is himself or the person by whom be is employed.

(Prohibition of Payment of Commission) Article 18. Excepting its officers and employees and the life insurance solicitors or non-life insurance agents registered in accordance with the provisions of Art.4, an insurance company must not commit others to engage in the soliciting or pay in relation to soliciting commissions, remunerations and other compensations. The provisions of Art.16 Par.2 shall apply with necessary modifications to the case of the preceding paragraph. Excepting the officers or employees reported in accordance with the provisions of Art.8 or the life insurance solicitors or non-life insurance agents registered in accordance with the provisions of Art.4, a life insurance solicitor or non-life insurance agent must not have others do the soliciting, or commit them to do the business, or pay in relation to the soliciting commissions, remunerations or other compensations.

(Report and Examination) Article 19. To the life insurance solicitors and to the non-life insurance agents, the Minister of Finance may demand presentation of the writings and the drawings used by them, may order to submit a report concerning their business, or may issue orders necessary in regard to the use of their writings and drawings, or may cause his staff-members to inspect their books, documents and other matters. In this case, the staff-member must carry with him a certificate demonstrating his states, which he must show when requested by the persons interested.

(Measures Against the Illegal Acts of Life Insurance, Solicitors and Non-life Insurance Agents) Article 20, The Minister of Finance may, when it is deemed that a life insurance solicitor or non-life insurance agent comes under any one of the following items, order the suspension of the business by designating the period or may cancel his registration: 1. When acted in contravention of the laws and ordinances or the orders issued by the Minister of Finance based upon this Law. 2. Other than above, when it is deemed that an extremely improper act has been done in regard to the soliciting. When the Minister of Finance intends to order suspension of business or to cancel registration in accordance with the provisions of the preceding paragraph, he shall issue notice beforehand to the life insurance solicitor or the non-life insurance agent concerned, to let him appear, either in himself or by counsel, and a hearing shall be held before a person designated by the Minister of Finance, to give him a chance to present evidence in his behalf. When the person concerned fails to make a reply within two months from the day on which the notice for purposes of investigation of facts prescribed in Art.5 Par.1 Item 6 was issued, or from the day on which the notice in accordance with the provisions of the preceding paragraph was issued, the Minister of Finance may refuse his registration, may order the suspension of this business by designating a period, or may cancel his registration. The provissions of Art.5 Par.2 shall apply with the necessary modifications to suspension of business, cancellation of registration or refusal of registration under the provisions of Par.1 or Par.3. When a life insurance solicitor or non-life insurance agent has come to fall under the provisions of any one of Art.5 item 1, item 2, item 4 or item 5, or when the registration has been cancelled in accordance with the provisions of Par.1 or Par.2, the Minister of Finance shall, without delay, strike out his registration.

(Registration for Officers of Employees who are engaged in Soliciting) Article 21. Provisions of Art.3 to Art.8 inclusive, Art.19, and the preceding Article shall apply with the necessary modifications to officers or employees of a life insurance company who are engaged in soliciting on behalf of the said company. In this case "life insurance solicitor" in these provisions shall read "officer or employee who are engaged in soliciting" and "life insurance solicitor register" in Art.4, Par.1, shall read "officer and employee register" respectively.

Article 22. Person coming under any one of the following items shall be sentenced to penal servitude not exceeding one year or a fine not exceeding\10,000: 1. Thos who have acted in contravention of the provisions of Art.9; 2. Those who have acted in contravention of the provisions of Art.10, Par.2; 3. Those who have acted in contravention of the provisions of Art.15; 4. Those who have acted in contravention of the provisions of Art.16; 5. Those who, in contravention of the provisions of Art.18, Par.3, have caused others to engage in the soliciting or commissioned others to do the work; 6. Those who have engaged in the soliciting in contravention of the order for suspension of business issued in accordance with the provisions of Art.20. In consideration of the circumstances, the penalty of the penal servitude and fine may simultaneously be imposed upon the person who has committed the crime of the preceding paragraph.

Article 23. When the offence of Art.10, Part.1 is committed or when may one is commissioned to engage in soliciting in contravention of the provisions of Art.18, Par.1, the representative, proxy, employee and other worker of the life insurance company that is guilty of the act of the contravention shall be sentenced to penal servitude not exceeding one year or a fine not exceeding\10,000.

Article 24. Persons coming under any one of the following items shall be sentenced to penal servitude not exceeding 6 months or a fine not exceeding\5,000: 1. Those who have contravened the provisions of Art.12, Par.1; 2. Those who have contravened the order issued in accordance with the provisions of Art.12, Par.2.

Article 25. Persons coming under any one of the following items shall be punished with a fine not exceeding\5,000: 1. Those who have contravened the provisions of Art.14; 2. Those who have contravened the order issued in accordance with the provisions of Art.19 (including the cases where they apply with necessary modifications to those of Art.21, hereinafter the same); 3. Those who have refused, prevented or evaded the inspection conducted in accordance with the provisions of Art.19.

Article 26. Any one who neglected to apply registration in accordance with the provisions of Art.3, Par.1, which apply with necessary modifications in the provisions of Art.21, shall be liable to a non-criminal fine not exceeding\5,000.

Article 27. When a representative or an agent of a juridical person or of a private person, the employees or other workers of a juridicial person (including non-juridical personal corporations or foundations which have their regular representatives or administrators appointed, the same applying hereinafter in this paragraph), have committed the act of contravention of Art.22 to Art.25 inclusive, in addition to the actors being punished, the juridical person or the private person shall be punished with the finess mentioned in each and every Article. In cases where non-juridical personal corporation or foundations are to be punished in accordance with the provisions of the precing paragraph, in addition to their representatives or administrators being made to represent the corporations or the foundations in regard to the legal proceedings, the provisions of the law concerning the criminal action in cases where the accused is a juridical person shall apply with the necessary modifications.