(The Object)
Article 1. This Law, by regulating the conduct of business of Non-Life Insurance Rating Organizations established for the purpose of calculating fair insurance premium rates, aims to promote the wholesome development of non-life insurance business and to protect the interest of persons effecting insurance, etc.
(Definitions)
Article 2. The term "premium rate" as used in this Law shall mean the proportion of the amount of premium to the amount insured, in a non-life insurance.
The term "a non-life insurance rating organization" as used in this Law shall mean a corporation which aims to prepare risk classification and other necessary matters for calculation of premium rates, calculate premium rates, and also to provide a clearing house for interchange of loss experience and other necessary data regarding premium rates.
The term "company" as used in this Law shall mean an insurance company which has obtained a license to undertake, as an enterprise, non-life insurance business in accordance with the provisions of Paragraph 1 of Art.1 of the Insurance Business Law (Law No.41, 1939).
The term "member" as used in this Law shall mean a company which is a constituent of a non-life insurance rating organization.
The term "surplus" as used in this Law shall mean a surplus as provided for in Art, 66 of the Insurance Business Law.
(Establishment of a Non-Life Insurance Rating Organization)
Article 3. Two or more companies may, upon obtaining approval of the Minister of Finance, establish a non-life insurance rating organization (hereinafter called a rating organization).
The company applying for the arproval as prescribed in the preceding paragraph must make out articles of incorporation which shall be filed with the Minister of Finance, together with an application and a list of members.
The articles of incorporation prescribed in the preceding paragraph shall have the statements regarding kinds of insurance business for which premium rates are calculated, and matters as prescribed in the provisions of Art.37 of the Civil Code (Law No.89, 1896).
(Juridical Person)
Article 4. A rating organization shall be a juridical person.
(Approval of Amendments in Articles of Incorporation)
Article 5. A rating organization shall obtain the approval of the Minister of Finance for amendments to its articles of incorporation.
(Membership)
Article 6. Any company shall be free to become a member of a rating organization established in respect of any kind of insurance business which the said company transacts.
(Report of Entrance and Withdrawal of Members)
Article 7. In case of entrance or withdrawal of a company the rating organization shall report to the Minister of Finance within two weeks of such entrance or withdrawal.
(Perusal of Materials by Interested Persons)
Article 8. Any interested persons may request a rating organization to allow perusal of materials used as the basis of calculating premium rates.
(Premium Rates)
Article 9. Premium rates calculated by a rating organization shall be rates reasonable, adequate and not unfairly discriminatory, and shall not be binding upon the members.
(Approval of Premium Rates)
Article 10. Each member company shall individually, directly and on its behalf apply to the Minister of Finance for approval of its premium rates in accordance with the provisions of Art.10, Par.1 of the Insurance Business Law.
A rating organization shall not be permitted to obtain the approval of the Minister of Finance on matters regulated by and in accordance with the provisions of the Insurance Business Law or any other laws or ordinances concerned, on behalf of its members by acting as agents or otherwise.
(Prohibition of Limitation of Refund of Surplus)
Article 11. A rating organization shall not provide any restriction regarding a refund of surplus which its member intends to distribute to persons effecting insurance.
(Publication of premium rates)
Article 12. A rating organization shall, pursuant to its article of incorporation, take necessary measures by which all interested persons shall be informed of the premium rates it has calculated and that these persons shall be able to express their opinions about the premium rate in question.
The matters necessary for application of the preceding paragraph shall be provided for by Order.
(Report and Examination)
Article 13. The Minister of Finance may at any time request a rating organization to submit a report on its business or appoint a competent official to inspect the office of a rating organization and examine the condition of its business, its books, documents and other materials. In such case, the said official shall carry in his possession certificate indicating his status, and shall present it if requested by the persons concerned.
(Order against Illegal Action)
Article 14. In case a rating organization has violated the orders of the Minister of Finance issued in accordance with this or other laws or ordinances, or has acted contrary to the public interest, the Minister of Finance may order dismissal of the directors or auditors, or suspension of business or may revoke the approval of its establishment.
When the Minister of Finance intends to order dismissal of a director or auditor, or suspension of business or to revoke the approval for establishment of a rating organization in accordance with the provision of the preceding paragraph, he shall issue a notice beforehand to the said director or auditor or to the director of the said rating organization, to appear, either 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.
(Time of Completion of Establishment of Rating Organization and Validity of Registration)
Article 15, A rating organization shall be considered to have been formed upon completion of registration of its establishment at the place where its principal office is located.
Those matters to be registered, excepting the case as prescribed in the preceding paragraph, in accordance with the provisions of this Law cannot be set up against a third person until after they have been registered.
(Registration of Establishment)
Article 16. The registration of the establishment of a rating organization shall be effected within two weeks from the time of its obtaining the approval from the Minister of Finance in accordance with the provisions of Art.3 Par.1.
In the application for registration of establishment the following particulars must be stated:
3. The locality in which the office is situated;
4. The total amount of the assets;
5. The manner of contributing to the fund, if such manner is provided for;
6. The names and addresses of the directors and auditors;
7. The period of duration or the provisions for dissolution, if such period or provisions have been determined.
A rating organization must register at the places where its subordinate offices are located the foregoing particulars within two weeks from the time of its registration of establishment.
The provisions of the preceding paragraph shall be applied with the necessary modifications in the case of a new subordinate office formed, after the official establishment of a rating organization, at a place outside the jurisdiction of the competent registration office in the locality in which the principal office or subordinate offices of a rating organization are located.
(Registration of Alterations)
Article 17. In cases where any alteration has occurred in any of the particulars registered in accordance with provisions of this Law registration of such alteration shall be effected within two weeks in the locality in which the principal office is situated and within three weeks in the locality in which the subordinate offices are situated.
(Registration of Completion of Liquidation)
Article 18. When the liquidation of a rating organization has been completed, registration of such completion of the liquidation shall be effected within two weeks in the locality in which principal office is situated and within three weeks in the locality in which the subordinate offices are situated.
(The Competent Registration Office and the Register)
Article 19. With respect to registration by a rating organization, the judicial affairs bureau or its outlying stations having jurisdiction over the locality in which its business office is situated shall be the competent registration office.
Each registration office shall keep a register for non-life insurance rating organization.
(Procedure of Application for Registration of Incorporation)
Article 20. The registration of incorporation of a rating organization shall be effected by the application of all the directors and the auditors.
The form of application mentioned in the preceding paragraph shall be accompanied by the following documents:
1. The articles of incorporation;
2. The documents verifying the total amount of the assets;
3. The documents confirming nominations of the directors and the auditors.
(Procedure of Application for Registration of Particulars other than Incorporation)
Article 21. The registration in accordance with this Law of particulars other than those of incorporation shall be effected by the application either of the directors or of the liquidators.
The application for registration in accordance with the preceding paragraph shall be accompanied by the documents certifying the establishment of the subordinate office or the alteration of particulars registered.
(Public Notice of Registered Particulars)
Article 22. The judicial affairs bureau shall issue a public notice, without delay, of the particulars registered.
(Application of Provisions of the Civil Code)
Article 23. The provisions of Art.38 Par.1, Arts.43, 44, 47, 48, Arts.50 to 54 inclusive, Arts.58 to 66 inclusive, Arts.68 to 70 inclusive, and Arts.72 to 83 inclusive shall apply, with the necessary modifications, to a rating organization.
(Application of Provisions of the Law concerning the Proceedings for Non-Contentious Matters)
Article 24. The provisions of Art.122, Arts.136 to 138 inclusive, Arts.142 to 150, Par.3 inclusive, Arts.151 to 151-(6) and Arts.154 to 157 inclusive of the Law concerning the Proceedings for Non-Contentious Matters (Law No.14, 1898) shall apply, with the necessary modifications, to the registration in accordance with this Law.
(Exemption from Corporation Tax)
Article 25. Corporation tax shall not be levied on a rating organization.
(Penal Provisions)
Article 26. Any person coming under any one of the following items shall be punished by a penal servitude for not more than six months or by a fine not more than five thousand yen:
1. One who failed to send in reports as provided for in Art.13 or submitted false reports, or refused, intervened or evaded the examination thereof;
2. One who violated the orders issued in accordance with the provisions of Art.14.
Article 27. In case of infringement of the preceding Article, not only shall the offender be punished, but the juridicial person shall also be punished by such fine as provided for by the respective Articles.
Article 28. In case of any of the following, the promoters, directors, auditors or liquidators of a non-life insurance rating organization shall be liable to a non-criminal fine not exceeding five thousand yen:
1. For neglecting to obtain such approval as provided for in this Law;
2. For violating the provisions of Art.7;
3. For refusing, in contravention of the provisions of Art.8, and without cause, perusal of materials;
4. For violating the provisions of Art.12;
5. For neglecting to make registration as laid down in this Law;
6. For violating the provisions of Art.51 of the Civil Code applicable under and in Art.23 or making false statements in the inventories, or the list of members;
7. For neglecting to make a demand for bankruptcy in contravention of the provisions of Art.70 or 81 of the Civil Code applicable under and in Art.23;
8. For neglecting to make public notifications as laid down in Art.79 or 81 of the Civil Code applicable under and in Art.23 or for making false public notifications.