I hereby promulgate the Law for Partial Amendments to the Insurance Business Law, etc.
Signed:HIROHITO, Seal of the Emperor
This nineteenth day of the fourth month of the twenty-fifth year of Showa (April 19, 1950)
Prime Minister YOSHIDA Shigeru
Law for Partial Amendments to the Insurance Business Law, etc.
Article 1. The Insurance Business Law (Law No.41 of 1939) shall be partially amended as follows:
Next to Article 1, the following one Article shall be added:
Article 1-(2). An insurance company shall not be permitted to carry on insurance business in foreign countries unless three years from the day on which it obtained a licence under paragraph 1 of the preceding Article have elapsed and it has counted up profit or surplus at the close of the latest settlement period.
In the proviso to Article 5 paragraph 1, next to "the Trust Business Law" , "or a company which carries on the business of insurance against loss may, upon obtaining the approval from the competent Minister, carry on such business as to act as proxy or intermediary on behalf of another company (including a foreign insurer who has obtained a licence under the provision of Article 3 paragraph 1 of the Law for Foreign Insurers) carrying on the business of insurance against loss in the transactions of its business of insurance against loss" shall be added.
Next to Article 12, the following one Artic1e shall be added:
Article 12-(2). An insurance company shall not own, or accept as pledge for loan, stocks of more than one-tenth of the total stocks of another joint-stock company or "Kabushiki-Goshi-Kaisha" (including a company established under the laws and orders of foreign countries).
The provision of Article 11 paragraph 2 of the Law relating to Prohibition of Private Monopoly and Methods of Preserving Fair Trade shall not apply to an insurance company.
In Article 138, next to "whoever carries on insurance business" , "or whoever carries on insurance business in foreign countries in contravention of the provision of Article 1-(2)" shall be added.
Next to Article 144, the following one Article shall be added:
Article 144-(2). In case a person owns stocks, or has accepted the same as pledge for loan, in contravention of the provision of Article 12-(2) paragraph 1, he shall be punished with a penal servitude not exceeding one year or a fine not exceeding two hundred thousand yen.
In case a representative proxy, employee of, or any other person engaged by, an insurance company has committed the violations under the preceding paragraph in connection with its business, the insurance company shall be punished with a fine under the same paragraph in addition to that the offender shall be punished.
Article 2. The Law concerning Non-life Insurance Rating Organization (Law No.193 of 1948) shall be partially amended as follows:
In Article 2 paragraph 3, next to "shall mean an insurance company" , "and a foreign insurer" shall be added;and next to "Article 1 paragraph 1 of the Insurance Business Law (Law No.41 of 1939)" , "or Article 3 paragraph 1 of the Law concerning Foreign Insurers (Law No.184 of 1949)" , shall be added.
The heading of Article 12 shall be amended "(Hearing the Opinions on the Premium Rate, and Publication Thereof)" , and paragraph 1 of the same Article shall be amended as follows:
A rating organization shall, in accordance with the provisions of the Articles of Incorporation, take measures by which it may he able to hear the opinions of the interested persons on the premium rate it intends to calculate or has calculated and take measures by which the premium rates which have been calculated may be made known to the interested persons.
Article 3. The Law for Foreign Insurers (Law Np.184 of 1949) shall be partially amended as follows:
Next to Article 3, the following one Article shall be added:
Article 3-(2). A foreign insurer who intends to apply for a license under the provision of paragraph 1 of the preceding Article shall be the one for whom three years from the day on which it was incorporated in the case of a juridical person, or commenced its business in the case of a person have elapsed by the day of the application, and who has counted up profit or surplus at the close of the latest settlement period.
In Article 19, next to "Articles 6 to 10 inclusive (principle for an executive officer to attend solely to his company's business;prohibition of carrying on concurrently life and non-life insurance business;report and examination;supervisory order;and alterations in the fundamental documents)" , ", Article 12-(2)(holding of stocks of an insurance company)" shall be added;and "the insurance business carried on by" shall be deleted.
In Chapter VI, the following one Article shall be added before Article 34:
Article 33-(2). A person who owns or accepted as pledge for loan stocks, in contravention of the provision of Article 12-(2) paragraph 1 of the Insurance Business Law which applies mutatis mutandis in Article 19, shall be punished with a penal servitude not exceeding one year or a fine not exceeding two hundred thousand yen.
In Article 35 paragraph 1, "the preceding Article" shall be amended as "the preceding two Articles" and "the same Article" shall be amended as "each Article" .
Supplementary Provision:
This Law shall come into force as from the day of its promulgation.