department to give assistance; and

(6) Other compliance duties as stipulated in the articles of association of the company.

Article 9 General manager of an insurance company shall perform the compliance duties as follows:

(1) In accordance with the decisions made by the board of directors, setting up and improving the compliance management organization structure, nominating the compliance chief to the board of directors, establishing the compliance department and providing sufficient conditions for the department to perform its duties;

(2) Examining the compliance policies presented by the compliance chief and exercising them upon approval of the board of directors;

(3) Identifying and evaluating compliance risks of the company for at least once every year as well as verifying the compliance risk management plan of the next year;

(4) Verifying the annual and semi-annual compliance reports and submitting them to the auditing committee of the board of directors;

(5) After finding out any incompliant operation and management behavior, promptly taking remedial measures, subjecting the liable persons to corresponding liabilities and reporting the whole situation according to related requirements; and

(6) Other compliance duties that are stipulated in the articles of association or determined by the board of directors.

The general manager of a branch office or central sub-branch of the insurance company shall perform the compliance duties that are prescribed in Items 3 and 5 of the preceding Paragraph.

Chapter III Compliance Chief and Compliance Department

Article 10 The post of compliance chief shall be established by an insurance company. The compliance chief shall be a senior manager of the parent company, and may not concurrently take charge of the business department or the financial department.

To appoint someone to be the compliance chief, an insurance company shall, in accordance with the Administrative Provisions on the Post-Holding Qualifications of Directors and Senior Managers of Insurance Companies and the relevant provisions promulgated by the CIRC, submit the appointment for approval.

To dismiss the compliance chief, an insurance company shall, within 10 days after the dismissal, submit a report and an explanation thereon to the CIRC.

Article 11 The compliance chief of an insurance company shall be responsible to the general manager and the board of directors, and shall perform duties as follows:

(1) Setting down and revising compliance policies and reporting them to the general manager for verification;

(2) Transmitting the compliance policies deliberated and approved by the board of directors to all employees and marketing staff and organizing the implementation thereof;

(3) Under the leadership of the board of directors and the general manager, setting down the annual compliance risk management plan, taking full charge of the compliance management work and directing the work of the compliance department and persons in the compliance-related posts;

(4) Making suggestions to the general manager and the auditing committee of the board of directors on improving compliance management on a regular basis and reporting the grave violations of the company and senior managers thereto in a timely manner to the general manager and the auditing committee of the board of directors;

(5) Examining the compliance report and other compliance documents presented by the compliance department, and signing them as approval; and

(6) Other compliance duties as prescribed in the articles of association or determined by the board of directors.

Article 12 The head office of an insurance company shall establish the compliance department. The insurance company shall establish the compliance departments or compliance posts in its branch offices in light of its business scale, organizational structure and risk management work.

The compliance department, post and staff in any of these branch offices shall be responsible to the chief person in charge of the branch and the compliance department or posts at the higher level.

An insurance company shall, by working out corresponding compliance policies or other formal documents, determine the organizational structure, duties and rights of the compliance department and compliance posts, and work out measures to ensure their independency.

Article 13 An insurance company shall ensure the independency of the compliance department and each compliance post, and their budgets and evaluations shall be separately carried out. The compliance department and compliance posts shall be independent from the business department, financial department and internal auditing department.

Article 14 The compliance department of an insurance company shall perform the duties as follows:

(1) Assisting the compliance chief to set down and revise the compliance policies and the annual compliance risk management plan of the company, advocating the implementation of such policies and plan, and assisting senior managers to cultivate a compliance culture in the company;

(2) Organizing and coordinating departments and branch offices of the company to set down and revise the post compliance manual and other compliance management rules and systems;

(3) Monitoring, identifying, evaluating and reporting compliance risks;

(4) Preparing annual, semi-annual and other compliance reports;

(5) Taking part in development of new products and businesses, identifying and evaluating compliance risks and providing support for compliance-related work;

(6) Working out the anti-money-laundering system of the company and exercising it;

(7) Organizing compliance training, exercising the conduct norms for employees and marketing staff and providing them with compliance consultancy service;

(8) Examining important internal rules and systems and business flow of the company, and, in light of changes and development of laws, regulations, supervisory provisions and industrial self-discipline rules, proposing suggestions on setting down or revising inner rules and systems or business flow;

(9) Keeping in touch with the supervisory organ in doing the daily routine, making follow-up evaluations on the supervisory measures and requirements and feeding back related opinions and suggestions; and

(10) Other compliance duties the board of directors determines.

An insurance company shall, in light of the preceding Paragraph, determine specific duties of compliance posts.

Article 15 An insurance company shall set down rules and systems to guarantee that the compliance chief, the compliance department and the compliance posts enjoy the following rights:

(1) In order to perform their compliance duties, obtaining necessary information via attending meetings, consulting documents, interviewing persons concerned and being informed of the compliance situation;

(2) Independently investigating existing or potential violators and violations, and when necessary, hiring professionals to give assistance;

(3) Having smooth reporting channels and reporting related