Article 5　An automobile must not be put into operational use unless a contract for automobile liability insurance (hereinafter referred to as "liability insurance") or mutual automobile liability insurance (hereinafter referred to as "mutual liability insurance") as provided in this Act has been concluded for that automobile.

Article 6　(1)　An insurer providing liability insurance (hereinafter referred to as the "insurer") is to be a non-life insurance company as prescribed in Article 2, paragraph (4) of the Insurance Business Act (Act No. 105 of 1995) or a foreign non-life insurance company, etc. as prescribed in paragraph (9) of that Article that underwrites liability insurance.

(2)　A person liable under mutual liability insurance is to be a cooperative that falls under one of the following items (hereinafter referred to as a "cooperative"):

Article 7　(1)　Once an insurance premium has been paid, the insurer must issue to the policyholder certificate of automobile liability insurance for the automobile.

(2)　If any of the information appearing on the certificate of automobile liability insurance changes, the policyholder must have that change entered on the certificate of insurance.

(3)　Upon receipt of a request to enter a change under the preceding paragraph, the insurer must enter the change on the certificate of insurance without delay; provided, however, that this does not apply if the insurer has made a request under Article 22, paragraph (3) or (4) but the amount requested has not been paid.

(4)　If certificate of automobile liability insurance is lost or damaged or becomes difficult to decipher, the policyholder may require the insurer to re-issue it.

(5)　Order of the Ministry of Land, Infrastructure, Transport and Tourism provides for the information that is to appear on certificate of automobile liability insurance and other details concerning certificate of automobile liability insurance .

(6)　Article 6 of the Insurance Act (Act No. 56 of 2008) does not apply to liability insurance.

Article 8　An automobile must not be put into operational use unless it has certificate of automobile liability insurance on board (or unless it has certificate of insurance into which a change has been entered on board, if a change is required to have been entered in the certificate of insurance pursuant to paragraph (2) of the preceding Article; the same applies in the following Article).

Article 9　(1)　A person seeking a disposition as prescribed in Article 4 of the Road Transport Vehicle Act or in Article 34, paragraph (1); Article 36-2, paragraph (5); Article 60, paragraph (1); Article 62, paragraph (2) (including as applied mutatis mutandis pursuant to Article 63, paragraph (3) and Article 67, paragraph (4)); Article 67, paragraph (1) (only in relation to a change of user); Article 71, paragraph (4); or Article 97-3 of that Act; or seeking a disposition prescribed in Article 22-2, paragraph (3) of the Act on Comprehensive Special Zones (Act No. 81 of 2011) must also present certificate of automobile liability insurance to the competent administrative agency (or to the Light Motor Vehicle Inspection Association, if Article 74-4 of the Road Transport Vehicle Act apply; the same applies in the following paragraph through paragraph (5)); provided, however, that if a safety regulations conformity certificate has been submitted pursuant to Article 94-5, paragraph (8) of the Road Transport Vehicle Act and a person seeks a disposition as prescribed in Article 62, paragraph (2) of the Road Transport Vehicle Act or seeks a disposition as prescribed in Article 22-2, paragraph (3) of the Act on Comprehensive Special Zones, instead of presenting certificate of automobile liability insurance, the person may submit a copy of that certificate of insurance prepared in the way that Order of the Ministry of Land, Infrastructure, Transport and Tourism prescribes.

(2)　In a case as referred to in the main clause of the preceding paragraph, a person seeking intends to receive any of the dispositions as referred to in that clause by entrusting the insurer, pursuant to Cabinet Order, may provide a vehicle registration agency as referred to in Article 7, paragraph (4) of the Road Transport Vehicle Act (in paragraphs (3) and (4), referred to as a "vehicle registration agency") with the information required to be given on a certificate of automobile liability insurance by electronic or magnetic means (meaning by using one of the means of employing an electronic data processing system or of otherwise making use of information and communications technology which Order of the Ministry of Land, Infrastructure, Transport and Tourism prescribes).

(3)　If the information required to be given on a certificate of automobile liability insurance is provided to a vehicle registration agency pursuant to the preceding paragraph, a person intends to receive any of the dispositions as referred to in the main clause of paragraph (1) is deemed to have presented certificate of automobile liability insurance to the competent administrative agency.

(4)　In a case as referred to in the preceding paragraph, the competent administrative agency is to confirm the necessary information by inquiring of the vehicle registration agency pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism.

(5)　The competent administrative agency is not to make the disposition referred to in paragraph (1) if certificate of automobile liability insurance is not presented or a copy thereof is not submitted. The same applies if the coverage period appearing on the certificate of insurance that has been presented for an automobile other than a light motor vehicle not subject to inspection as prescribed in Article 58, paragraph (1) of the Road Transport Vehicle Act or appearing on the copy thereof that has been submitted does not fully overlap with the entire period running up to the day that the validity to be entered in the automobile inspection certificate, the validity of permission for temporary operation, or the validity of permission for operation for forwarding the automobile to a certain location, expires.

(6)　A person seeking to request the issuance of a safety regulations conformity certificate and a safety regulations conformity sticker pursuant to Article 94-5, paragraph (1) of the Road Transport Vehicle Act must present certificate of automobile liability insurance to a designated automobile maintenance facility as referred to in Article 94-3, paragraph (1) of that Act, and a person seeking to request the issuance of a certificate of inspection and maintenance pursuant to Article 22-2, paragraph (11) of the Act on Comprehensive Special Zones must present certificate of automobile liability insurance to a designated automobile inspection and maintenance facility as referred to in that paragraph.

(7)　Notwithstanding Article 94-5, paragraph (1) of the Road Transport Vehicle Act, if certificate of automobile liability insurance is not presented as under the preceding paragraph; or if the coverage period given in the certificate of automobile liability insurance that has been presented as under that paragraph does not overlap with the entire period that runs from the day on which the certificate of insurance is presented until the day that must be entered, when a safety regulations conformity certificate is submitted pursuant to Article 94-5, paragraph (8) of that Act, as the date on which the validity of the automobile inspection certificate provided for in Article 61, paragraph (1) of the Road Transport Vehicle Act expires (in the next paragraph, this period is simply referred to as the "validity of the automobile inspection certificate"), a designated automobile maintenance facility must not issue a safety regulations conformity certificate or safety regulations conformity sticker.

(8)　Notwithstanding Article 22-2, paragraph (11) of the Act on Comprehensive Special Zones, if certificate of automobile liability insurance is not presented as under paragraph (6); or if the coverage period given in the certificate of automobile liability insurance that has been presented as under that paragraph does not overlap with the entire period that runs from the day on which the certificate of insurance is presented until the day that must be entered, when a person applies for an extension of the validity of an automobile inspection certificate pursuant to Article 22-2, paragraph (1) of the Act on Comprehensive Special Zones and attaches a certificate of inspection and maintenance, as the date on which the validity of the automobile inspection certificate expires, a designated automobile inspection and maintenance facility must not issue a certificate of inspection and maintenance.

Article 9-2　(1)　If an insurer issues certificate of automobile liability insurance pursuant to Article 7, paragraph (1) for a light motor vehicle not subject to inspection, a motorized bicycle, or an automobile registered in a contracting state (meaning an automobile registered in a contracting state as provided in Article 2, paragraph (2) of the Act on Special Measures for the Road Transport Vehicle Act to Coordinate with the Implementation of the Convention on Road Traffic (Act No. 109 of 1964); the same applies hereinafter), the insurer must issue an insurance sticker to the policyholder.

(2)　An insurance sticker must indicate when the coverage period expires, pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism.

(3)　The validity of an insurance sticker is the same as the coverage period.

(4)　If an insurance sticker is lost or damaged or becomes difficult to decipher, or in a case as prescribed by Order of the Ministry of Land, Infrastructure, Transport and Tourism, the policyholder may request the insurer to re-issue the sticker.

(5)　Order of the Ministry of Land, Infrastructure, Transport and Tourism provides for the format for insurance stickers and other details of insurance stickers.

Article 9-3　(1)　A light motor vehicle not subject to inspection, a motorized bicycle, or an automobile registered in a contracting state must not be put into operational use unless it displays an insurance sticker pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism.

(2)　It is prohibited for an insurance sticker to be displayed on a light motor vehicle not subject to inspection, motorized bicycle, or automobile registered in a contracting state other than that for which the sticker is issued.

(3)　It is prohibited for an insurance sticker whose validity has expired to be displayed on a light motor vehicle not subject to inspection, a motorized bicycle, or an automobile registered in a contracting state.

Article 9-4　Articles 7 and 9-2 apply mutatis mutandis to mutual liability insurance. In such a case, the term "insurer" in those provisions is deemed to be replaced with "cooperative"; the term "insurance premiums" is deemed to be replaced with "mutual insurance premiums"; " the term policyholder" is deemed to be replaced with "mutual insurance policyholder"; the term "certificate of automobile liability insurance" is deemed to be replaced with "certificate of mutual automobile liability insurance"; the term "insurance sticker" is deemed to be replaced with "mutual insurance sticker"; the term "coverage period" is deemed to be replaced with "period of coverage under mutual insurance"; the phrase "Article 22, paragraph (3) or (4)" in Article 7, paragraph (3) is deemed to be replaced with "Article 22, paragraph (3) or (4) as applied mutatis mutandis pursuant to Article 23-3, paragraph (1)"; the term "liability insurance" in paragraph (6) of that Article is deemed to be replaced with "mutual liability insurance"; and the phrase "Article 7, paragraph (1)" in Article 9-2, paragraph (1) is deemed to be replaced with "Article 7, paragraph (1) as applied mutatis mutandis pursuant to Article 9-4".

Article 9-5　(1)　To apply Articles 8 and 9 to an automobile for which a contract for mutual liability insurance has been concluded, the term "certificate of automobile liability insurance " in Article 8 (including the heading), the heading of Article 9, and paragraphs (1) through (3) and paragraphs (5) through (8) of that Article is deemed to be replaced with "certificate of mutual automobile liability insurance "; the phrase "paragraph (2) of the preceding Article" in Article 8 is deemed to be replaced with "Article 7, paragraph (2) as applied mutatis mutandis pursuant to Article 9-4"; the term "Insurer" in Article 9, paragraph (2) is deemed to be replaced with "cooperative"; and the term "coverage period" in paragraphs (5), (7), and (8) of that Article is deemed to be replaced with "period of coverage under mutual insurance".

(2)　To apply Article 9-3, paragraph (1) to a light motor vehicle not subject to inspection, motorized bicycle, or automobile registered in a contracting state for which a contract for mutual liability insurance has been concluded, the term "insurance sticker" in that paragraph is deemed to be replaced with "mutual insurance sticker".

(3)　Article 9-3, paragraphs (2) and (3) apply mutatis mutandis to mutual insurance stickers.

Article 10　Article 5, and Article 7 through the preceding Article do not apply to automobiles put into operational use by the State or any other person that Cabinet Order prescribes, for the activities or purposes that Cabinet Order prescribes; nor do they apply to automobiles put into operational use only in places other than roads (meaning places made accessible to general traffic, including roads as defined in the Road Act (Act No. 180 of 1952) and motorways as defined in the Road Transportation Act (Act No. 183 of 1951); the same applies hereinafter).

Article 10-2　(1)　The Minister of Land, Infrastructure, Transport and Tourism must issue an insurance/mutual insurance exemption sticker to a person in possession of a light motor vehicle not subject to inspection and to which the preceding Article applies, or of a motorized bicycle (other than one as prescribed by Cabinet Order or one that is put into operational use only in places other than roads), pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism.

(2)　Order of the Ministry of Land, Infrastructure, Transport and Tourism prescribes the valid period for an insurance/mutual insurance exemption sticker.

(3)　It is prohibited to put a light motor vehicle not subject to inspection or motorized bicycle as prescribed in paragraph (1) into operational use unless it displays an insurance/mutual insurance exemption sticker pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism.

(4)　Article 9-2, paragraphs (4) and (5) and Article 9-3, paragraphs (2) and (3) apply mutatis mutandis to insurance/mutual insurance exemption stickers.

Article 11　(1)　A contract for liability insurance becomes valid when the insurer agrees that, if a person in possession becomes liable to compensate for damage as under Article 3, it will indemnify the damage that the person in possession incurs due to that liability, as well as the damage that the driver incurs due to liability in the event that the driver must also be held liable to compensate the injured party for damage; and the policyholder agrees to pay insurance premiums to the insurer.

(2)　A contract for mutual liability insurance becomes valid when the cooperative agrees that, if a person in possession becomes liable to compensate for damage as under Article 3, it will indemnify the damage that the person in possession incurs due to that liability, as well as the damage that the driver incurs due to liability in the event that the driver must also be held liable to compensate the injured party for damage; and the mutual insurance policyholder agrees to pay mutual insurance premiums to the cooperative.

Article 12　A person must conclude a separate contract for liability insurance for each automobile.

Article 13　(1)　Cabinet Order provides for the amount of insurance coverage under liability insurance.

(2)　Upon the enactment or amendment of Cabinet Order based on the preceding paragraph, Cabinet Order may prescribe the necessary measures for changing the amount of insurance coverage under the liability insurance associated with an automobile insured under a contract for liability insurance that has already been concluded at the time that the Cabinet Order enters into force to the amount of insurance coverage provided for after the enactment or amendment, and may prescribe any other necessary transitional measures to coordinate with the enactment or amendment thereof.

Article 14　Except as prescribed in Article 82-3, an insurer is only released from liability to indemnify damage if it arises due to the bad faith of the policyholder or the insured.

Article 15　The insured may file a claim with the insurer for insurance proceeds, but only to the extent of the damages that the insured has paid to the injured party.

Article 16　(1)　If a person in possession becomes liable to compensate for damage as under Article 3, the injured party may file a claim with insurer for the insurer to pay the injured party damages of up to the amount of insurance coverage, pursuant to Cabinet Order.

(2)　If the insured compensates the injured party for damage and the insurer indemnifies the insured for that damage, the insurer is released, to the extent of the amount for which it has indemnified the insured, from the obligation to pay the injured party as referred to in the preceding paragraph.

(3)　Unless damage has arisen due to the bad faith of the policyholder or the insured, if the insurer pays damages to the injured party pursuant to paragraph (1), the insurer is deemed to have indemnified the insured for damage based on the contract for liability insurance.

(4)　If damage has arisen due to the bad faith of the policyholder or the insured and the insurer has paid damages to the injured party pursuant to paragraph (1), the insurer may claim the government to compensate it for the amount it has paid.

Article 16-2　The insurance proceeds that the insurer is to pay the insured and the damages that the insurer is to pay the injured party pursuant to paragraph (1) of the preceding Article (hereinafter, except in Article 28-4, paragraph (1), referred to as "insurance proceeds and damages") to compensate for damage due to the injured party's inability to work while in recuperation or for any other damage that Cabinet Order prescribes are limited to the amount prescribed by Cabinet Order.

Article 16-3　(1)　An insurer must abide by the criteria for payment that the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister set (hereinafter referred to as "criteria for payment") when paying insurance proceeds and damages, and must make separate payments for death, residual disability, and injury.

(2)　When setting the criteria for payment pursuant to in the preceding paragraph, the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister must take into consideration the need to ensure fair and prompt payment. The same applies if they change the criteria for payment.

Article 16-4　(1)　When a claim is filed for insurance proceeds and damages, the insurer, without delay, must deliver to the insured or injured party that has filed the claim a document giving an outline of the criteria for payment and any other information that Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order specify, pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order.

(2)　Having paid insurance proceeds and damages, an insurer, without delay, must deliver to the insured or injured party that has filed a claim as prescribed in the preceding paragraph a document detailing the amount of the insurance proceeds and damages paid, the applicable grade of residual disability, the reason for the decision that that grade is applicable, and any other material information concerning the payment of the insurance proceeds and damages that Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order specifies, pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order.

(3)　On deciding not to pay insurance proceeds and damages because there is evidence of circumstances as prescribed in the proviso to Article 3 or based on other grounds, an insurer, without delay, must deliver to the insured or injured party that has filed a claim as prescribed in paragraph (1) a document giving grounds for not paying the insurance proceeds and damages, pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order.

(4)　With the consent of the insured or the injured party and pursuant to Cabinet Order, in lieu of delivering a document as under one of the preceding three paragraphs, an insurer may use one of the means of employing an electronic data processing system or of otherwise making use of information and communications technology which Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order prescribes, to provide the relevant person with the information that it is required to give in that document. Having done so, the insurer is deemed to have delivered the relevant document.

Article 16-5　(1)　Except as prescribed in the first sentence of the next paragraph, if, after the insurer delivers a document pursuant to paragraph (2) or (3) of the preceding Article, the insured or the injured party asks the insurer, in writing and pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order, for an explanation of material information as prescribed by Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order with regard to the payment of insurance proceeds and damages (other than information as prescribed by Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order which is referred to in paragraph (2) of that Article), or for an explanation of the details prescribed by Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order with regard to its grounds for not paying the insurance proceeds and damages as prescribed in paragraph (3) of that Article, the insurer must provide a written explanation of this to the insured or injured party asking for the explanation, pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order; provided, however, that the insurer may provide an explanation other than in writing if the person asking for the explanation consents.

(2)　An insurer may decide not to explain all or some of the things that it has been asked to explain pursuant to the preceding paragraph, if explaining something it has been asked to explain could do unreasonable harm to the rights and interests of a third party or if there are any other legitimate grounds for it to decide not to give an explanation. In such a case, the insurer must deliver a document indicating that it will not explain these things and giving the grounds for not explaining them to the person requesting the explanation.

(3)　An insurer must give an explanation as under paragraph (1) or deliver a document as under the preceding paragraph (in the next paragraph, this is referred to as an "explanation, etc.") within 30 days, counting from the day the explanation is asked for pursuant to paragraph (1).

(4)　If an insurer is unable to provide an explanation ,etc. within the period prescribed in the preceding paragraph due to the difficulty of clerical processing or any other legitimate grounds, it must notify the person asking for the explanation pursuant to paragraph (1), in writing and within the period prescribed in the preceding paragraph, of the reasons it cannot provide an explanation , etc. within the period prescribed in the preceding paragraph and of the time limit by which it will provide an explanation, etc.

(5)　With the consent of the insured or the injured party and pursuant to Cabinet Order, in lieu of delivering a document as under paragraph (2) or notifying a person in writing as under the preceding paragraph (hereinafter referred to as providing a "written explanation , etc."), an insurer may use one of the means of employing an electronic data processing system or of otherwise making use of information and communications technology which Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order prescribe, to provide the relevant person with the information that it is required to give in the document. Having done so, the insurer is deemed to have provided a written explanation ,etc.

Article 16-6　Having paid insurance proceeds and damages or delivered a document under Article 16-4, paragraph (3) in connection with a death or other damage that Order of the Ministry of Land, Infrastructure, Transport and Tourism prescribes as giving rise to an especially high necessity for the insurer to properly pay insurance proceeds and damages, the insurer must report this to the Minister of Land, Infrastructure, Transport and Tourism without delay, pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism.

Article 16-7　If one of the following facts is true of an insurer's payment or payment procedures for insurance proceeds and damages, the insured or the injured party may notify the Minister of Land, Infrastructure, Transport and Tourism of that fact:

Article 16-8　(1)　Having received a report as under Article 16-6, having been notified as under the preceding Article, or in any other case, on finding that the insurer's payment or payment procedures for insurance proceeds and damages fall under one of the items of the preceding Article, the Minister of Land, Infrastructure, Transport and Tourism must instruct the insurer to make a payment in accordance with the criteria for payment; to deliver a document as under Article 16-4, paragraphs (1) through (3); or to provide an explanation as under Article 16-5, paragraph (1), deliver a document as under paragraph (2) of that Article, or give notice as under paragraph (4) of that Article.

(2)　Having given the instructions prescribed in the preceding paragraph, the Minister of Land, Infrastructure, Transport and Tourism must notify the Prime Minister of this without delay.

(3)　If an insurer that has been instructed to do as prescribed in paragraph (1) fails to do as instructed and is without a legitimate reason for failing to do so, the Minister of Land, Infrastructure, Transport and Tourism may disclose this to the public.

(4)　If, after its failure to do as instructed has been disclosed to the public pursuant to the preceding paragraph, an insurer that has been instructed to do as prescribed in paragraph (1) fails to take measures to abide by the instructions and is without a legitimate reason for failing to do so, the Minister of Land, Infrastructure, Transport and Tourism may order the insurer to take measures to abide by the instructions.

(5)　The Minister of Land, Infrastructure, Transport and Tourism must first gain the consent of the Prime Minister before making a public disclosure as prescribed in paragraph (3) or giving an order as prescribed in the preceding paragraph.

Article 16-9　(1)　An insurer is not liable for delays following receipt of a claim for the payment of damages under Article 16, paragraph (1), until the necessary period of time has passed to look into the accident caused by the operation of the automobile subject to the claim and verify the damages.

(2)　When an insurer is conducting the necessary investigations to look into an accident as prescribed in the preceding paragraph, if an injured party, without a legitimate reason, interferes or fails to comply with the investigation, the insurer is not liable for delays that arise during the period that the payment of damages is delayed due to the interference or failure to comply.

Article 17　(1)　If the death or bodily injury of another person results from a person in possession's operation of an automobile covered by a contract for liability insurance, the injured party, pursuant to Cabinet Order, may file a claim with the insurer for it to pay the injured party the amount that Cabinet Order prescribes as a provisional payout to pay damages under Article 16, paragraph (1).

(2)　On receipt of a claim as referred to in the preceding paragraph, an insurer must pay the amount of money subject to the claim without delay.

(3)　If the amount of a provisional payout as referred to in paragraph (1) exceeds the damages to be paid, an insurer may demand the return of the part in excess.

(4)　If an insurer makes a provisional payout referred to in paragraph (1) but the person in possession is not liable to compensate for damage, the insurer may ask the government to compensate it for the amount it has paid.

Article 18　The right to file a claim under Article 16, paragraph (1) or paragraph (1) of the preceding Article may not be attached.

Article 19　The right to file a claim under Article 16, paragraph (1) or Article 17, paragraph (1) is extinguished by prescription once three years have passed.

Article 20　As regards a contract for liability insurance, the material information provided for in Article 4 of the Insurance Act is as follows:

Article 20-2　(1)　The parties to a contract for liability insurance may cancel that contract only:

(2)　The parties to a contract for liability insurance may not cancel that contract by mutual agreement, nor subject the contract to a condition subsequent.

Article 21　(1)　If an insurer rescinds a contract for liability insurance pursuant to Article 28, paragraph (1) of the Insurance Act, the rescission takes effect after seven days, counting from the day that the policyholder is notified of the rescission.

(2)　Notwithstanding Article 31, paragraph (2), item (i) of the Insurance Act, if any insured event (meaning an insured event provided for in Article 5, paragraph (1) of the Insurance Act; the same applies in paragraph (3) of the following Article) occurs before the day that a rescission as referred to in the preceding paragraph takes effect, the insurer is liable to indemnify for the damage. If an insurer provides an indemnity for damage in such a case, it may require the policyholder to pay the amount of that indemnity.

Article 22　(1)　If risk increases or decreases during the coverage period, the contract for liability insurance is deemed to have been changed to a contract corresponding to the new amount of risk.

(2)　Having become aware that risk has increased during the coverage period, the policyholder or the insured must notify the insurer of this without delay.

(3)　If an insured event occurs after an increase of risk during the coverage period and the insurer indemnifies for the damage, but the policyholder or the insured has neglected to notify the insurer as referred to in the preceding paragraph, the insurer may require the policyholder to pay the amount of that indemnity.

(4)　If risk has increased in a case as referred to in paragraph (1), the insurer may require the policyholder to pay the amount by which it increases the insurance premiums, pursuant to Cabinet Order.

(5)　If risk decreases in a case as referred to in paragraph (1), the policyholder may require the insurer to refund the amount by which it decreases the insurance premiums, pursuant to Cabinet Order.

Article 23　Except as otherwise provided for in this Act, Chapters I, II (other than Section 5), and V of the Insurance Act apply to contracts for liability insurance.

Article 23-2　(1)　The Minister of Land, Infrastructure, Transport and Tourism, pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism, may have an insurer report on liability insurance services, and may have the relevant officials enter the insurer's place of business, offices, and other facilities to inspect the state of its liability insurance services or its books and documents and other items or to question the relevant persons, within the limits of what is necessary for implementing Article 11 through the preceding Article.

(2)　An official who conducts an on-site inspection or inquiry pursuant to the preceding paragraph must carry identification and present it at the request of the relevant persons.

(3)　The authority to conduct an on-site inspection or inquiry as prescribed in paragraph (1) must not be interpreted as having being accorded for the purpose of a criminal investigation.

Article 23-3　(1)　Article 12 through the preceding Article apply mutatis mutandis to contracts for mutual liability insurance. In such a case, in those Articles (other than in Article 20-2, paragraph (1), item (iii)), the term "contract for liability insurance" is deemed to be replaced with "contract for mutual liability insurance"; the term "liability insurance" is deemed to be replaced with "mutual liability insurance"; the term "amount of insurance coverage" is deemed to be replaced with "amount of mutual insurance coverage"; the term "insurer" is deemed to be replaced with "Cooperative"; the term "policyholder" is deemed to be replaced with "mutual insurance policyholder"; the term "insured" is deemed to be replaced with "person covered under mutual insurance"; the term "insurance proceeds" is deemed to be replaced with "mutual insurance proceeds"; the term "insurance proceeds and damages" is deemed to be replaced with "mutual insurance proceeds and damages"; the term "coverage period" is deemed to be replaced with "period of coverage under mutual insurance"; the term "insurance premium" is deemed to be replaced with "mutual insurance premium"; the phrase "paragraph (1) of the preceding Article" in Article 16-2 is deemed to be replaced with "Article 16, paragraph (1), as applied mutatis mutandis pursuant to Article 23-3, paragraph (1)"; the phrase "(hereinafter, except in Article 28-4, paragraph (1), referred to as" in Article 16-2 is deemed to be replaced with "(hereinafter referred to as"; the phrase "paragraph (2) or (3) of the preceding Article" in Article 16-5, paragraph (1) is deemed to be replaced with "Article 16-4, paragraph (2) or (3) as applied mutatis mutandis pursuant to Article 23-3, paragraph (1)"; the phrase "Article 16-4, paragraph (3)" in Article 16-6 is deemed to be replaced with "Article 16-4, paragraph (3) as applied mutatis mutandis pursuant to Article 23-3, paragraph (1)"; the phrase "Article 16-4, paragraphs (1) through (3)" in Article 16-7, item (ii) and Article 16-8, paragraph (1) is deemed to be replaced with "Article 16-4, paragraphs (1) through (3) as applied mutatis mutandis pursuant to Article 23-3, paragraph (1); the phrase "Article 16-5, paragraph (1)" in Article 16-7, item (iii) and Article 16-8, paragraph (1) is deemed to be replaced with "Article 16-5, paragraph (1) as applied mutatis mutandis pursuant to Article 23-3, paragraph (1)"; the phrase "Article 16-6" in Article 16-8, paragraph (1) is deemed to be replaced with "Article 16-6 as applied mutatis mutandis pursuant to Article 23-3, paragraph (1)"; the phrase "the preceding Article" in the Article 16-8, paragraph (1) is deemed to be replaced with "Article 16-7 as applied mutatis mutandis pursuant to Article 23-3, paragraph (1)"; the term "the Prime Minister" in Article 16-8, paragraphs (2) and (5) is deemed to be replaced with "an administrative agency (meaning an administrative agency as prescribed in Article 27, paragraph (1), if this agency is connected with an agricultural cooperative, etc.; meaning an administrative agency as prescribed in Article 27, paragraph (1) as applied mutatis mutandis following a replacement of terms pursuant to Article 27-2, paragraph (1), if this agency is connected with a consumer cooperative, etc. ; and meaning an administrative agency as prescribed in Article 27, paragraph (1) as applied mutatis mutandis following a replacement of terms pursuant to Article 27-2, paragraph (2), if this agency is connected with a business cooperative, etc.)"; the phrase "Article 16, paragraph (1)" in Article 17, paragraph (1) is deemed to be replaced with "Article 16, paragraph (1) as applied mutatis mutandis pursuant to Article 23-3, paragraph (1)"; the phrases "Article 16, paragraph (1) and paragraph (1) of the preceding Article" in Article 18 and "Article 16, paragraph (1) and Article 17, paragraph (1)" in Article 19 are deemed to be replaced with "Article 16, paragraph (1) and Article 17, paragraph (1) as applied mutatis mutandis pursuant to Article 23-3, paragraph (1)"; and the phrase "coverage period of the contract for liability insurance that would be canceled" in Article 20-2, paragraph (1), item (iii) is deemed to be replaced with "coverage period of the contract for mutual liability insurance that would be canceled".

(2)　Before setting or amending the criteria for payment prescribed in Article 16-3, paragraph (1) as applied mutatis mutandis pursuant to the preceding paragraph and before enacting or amending Order of the Ministry of Land, Infrastructure, Transport and Tourism or Cabinet Office Order prescribed in Article 16-4 as applied mutatis mutandis pursuant to the preceding paragraph and Article 16-5, paragraphs (1) and (5) as applied mutatis mutandis pursuant to the preceding paragraph, the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister must first consult with the Minister of Agriculture, Forestry and Fisheries; the Minister of Health, Labour and Welfare; and the minister with administrative jurisdiction over the business prescribed in the business cooperative, etc.'s articles of incorporation as qualifying a person to be a member (hereinafter referred to as the "competent Minister for the business").

Article 23-4　Deleted

Article 23-5　(1)　At the application of a general incorporated association or general incorporated foundation whose purpose is to protect injured parties through the fair and precise settlement of disputes related to the payment of insurance proceeds and damages or mutual insurance proceeds and damages, and that is found to satisfy the following criteria as concerns dispute resolution services prescribed in paragraph (1) of the following Article (hereinafter referred to as "dispute resolution services"), the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister may designate that association or foundation as a person that provides dispute resolution services:

(2)　Once the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister make a designation as under the preceding paragraph (hereinafter referred to as a "designation"), they must issue public notice of the name and address of the person they have designated (hereinafter referred to as the "designated dispute resolution organization"), the location of the office where the organization will perform dispute resolution services, and the start date of the dispute resolution services.

(3)　Before changing its name or address or the location of the office where it performs dispute resolution services, a designated dispute resolution organization must notify the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister of this, indicating the date on which it plans to change these things, by two weeks prior to the date it plans to change them.

(4)　If a designated dispute resolution organization notifies the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister as under the preceding paragraph, the Ministers must issue public notice of the information of which they have been notified.

(5)　A designated dispute resolution organization must post a notice indicating that it is a designated dispute resolution body at its offices in such a way as to make the notice easily visible to the public, pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order.

Article 23-6　(1)　A designated dispute resolution organization is to engage in the following services:

(2)　Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order prescribe the process for filing a petition as referred to in item (i) of the preceding paragraph.

Article 23-7　(1)　A designated dispute resolution organization must appoint, from among persons of great integrity of character and insight, at least the number of dispute resolution members that Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order prescribe.

(2)　When resolving disputes, a designated dispute resolution organization must have dispute resolution implemented by the dispute resolution members appointed pursuant to the preceding paragraph that the head of the designated dispute resolution organization assigns for each case. In such a case, the head of the designated dispute resolution organization must not assign a dispute resolution member to a case if that official is related to a party to the case in a way that makes the member an interested person, or if there are any other circumstances that might interfere with the fairness of dispute resolution.

(3)　Of the dispute resolution members assigned pursuant to the preceding paragraph, at least one must be an attorney.

Article 23-8　(1)　The appointment or dismissal of an officer (or dispute resolution official; the same applies in the following paragraph and the following Article) of a designated dispute resolution organization who is engaged in providing dispute resolution services does not take effect without the authorization of the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister.

(2)　If the officer of a designated dispute resolution organization violates the dispute resolution services rules that have been approved as referred to in Article 23-11, paragraph (1) or engages in extremely inappropriate conduct in connection with dispute resolution services, or if the officer's continuation in office causes the designated dispute resolution organization to no longer satisfy the criteria set forth in Article 23-5, paragraph (1), item (iii), the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister may order the designated dispute resolution organization to dismiss the officer.

Article 23-9　(1)　It is prohibited for a current or former officer or personnel of an designated dispute resolution organization to divulge confidential information learned in the course of dispute resolution services or to use the information for personal gain.

(2)　As concerns the application of the Penal Code (Act No. 45 of 1907) and other penal provisions, officers and personnel of a designated dispute resolution organization who are engaged in providing dispute resolution services are deemed to be officials engaged in public service pursuant to laws and regulations.

Article 23-10　If a designated dispute resolution organization is asked to provide dispute resolution services, it must provide dispute resolution services without delay unless it has a legitimate reason not to do so.

Article 23-11　(1)　A designated dispute resolution organization must establish rules for dispute resolution services (hereinafter referred to as "dispute resolution services rules") and get them approved by the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister. The same applies if the organization seeks to amend those Rules.

(2)　Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order provide for the particulars that must be prescribed in the dispute resolution services rules.

(3)　If the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister find that the dispute resolution services rules they have approved as referred to in paragraph (1) have become inappropriate to allow for the fair and reliable implementation of dispute resolution services, they may order that those rules be amended.

Article 23-12　(1)　A designated dispute resolution organization may ask an insurer or cooperative to give a written or oral explanation or to submit materials, within the limits of what is necessary to implement dispute resolution services.

(2)　It is prohibited for an insurer or cooperative to refuse a request under the preceding paragraph without a legitimate reason for doing so.

Article 23-13　The dispute resolution procedures performed by a designated dispute resolution organization are not open to the public; provided, however, that the designated dispute resolution organization may permit persons it finds to be appropriate to be present as silent observers.

Article 23-14　(1)　A designated dispute resolution organization must prepare an operational plan and income and expenditures budget for dispute resolution services every business year, pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order, and get them approved by the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister before the relevant business year begins (and without delay after designation in the business year that includes the day on which the organization is designated). The same applies if the organization seeks to amend either of these.

(2)　A designated dispute resolution organization must prepare an operating report and settlement of income and expenditures for dispute resolution services every business year, pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order, and submit them to the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister within three months after the end of the relevant business year.

Article 23-15　(1)　A designated dispute resolution organization must not suspend or discontinue all or part of its dispute resolution services without the permission of the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minster.

(2)　If the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minster permit the discontinuance of all dispute resolution services pursuant to the preceding paragraph, the organization's designation ceases to be valid.

(3)　Having given permission as referred to in paragraph (1), the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minster must issue public notice of this.

Article 23-16　A designated dispute resolution organization, pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order, must prepare and keep on file books in which it enters the information regarding dispute resolution services that Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order prescribe.

Article 23-17　(1)　The Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister, pursuant to Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order, may have a designated dispute resolution organization report on dispute resolution services, and may have the relevant officials enter the offices of a designated dispute resolution organization to inspect the state of its dispute resolution services or its books and documents and other items or to question the relevant persons, within the limits of what is necessary for ensuring the fair and reliable implementation of dispute resolution services.

(2)　Article 23-2, paragraphs (2) and (3) apply mutatis mutandis to on-site inspections and inquiry under the preceding paragraph.

Article 23-18　On finding it to be necessary to do so in order to ensure the fair and reliable implementation of dispute resolution services, the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister may issue orders in connection with dispute resolution services as are necessary from a supervisory perspective to a designated dispute resolution organization.

Article 23-19　(1)　If a designated dispute resolution organization falls under one of the following items, the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister may revoke its designation or order the suspension of all or part of its dispute resolution services during a fixed period:

(2)　Having revoked a designation or ordered the suspension of all or part of dispute resolution services pursuant to the preceding paragraph, the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister must issue public notice of this.

Article 23-20　The Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister are to provide a designated dispute resolution organization with the information and materials it needs to implement dispute resolution services.

Article 23-21　Beyond what is provided for in this Section, Order of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Order provide for the necessary particulars of designated dispute resolution organizations and dispute resolution services.

Article 24　(1)　An insurer must not refuse to conclude a contract for liability insurance unless it has a legitimate reason that Cabinet Order prescribes for refusing to do so.

(2)　A cooperative must not refuse to conclude a contract for mutual liability insurance unless circumstances are as set forth in the following items or unless it has a legitimate reason that Cabinet Order prescribes for refusing to do so:

Article 25　Liability insurance premium rates and mutual liability insurance premium rates must be as low as possible while covering the costs reasonably arising under efficient management.

Article 26　(1)　When examining whether there is conformity with the criteria set forth in Article 5, paragraph (1), item (iv) of the Insurance Business Act (including as applied mutatis mutandis pursuant to Article 187, paragraph (5) of that Act; hereinafter, the same applies in this paragraph) on receipt of an application for a license as referred to in Article 3, paragraph (1) or Article 185, paragraph (1) of that Act, if the examination involves liability insurance, the Prime Minister must also examine whether there is conformity with the preceding Article beyond the criteria set forth in Article 5, paragraph (1), item (iv) of the Insurance Business Act.

(2)　Information with regard to liability insurance is not to be included in the information prescribed by Cabinet Office Order that is referred to in Article 123, paragraph (1) of the Insurance Business Act (including as applied mutatis mutandis pursuant to Article 207 of that Act).

(3)　When undertaking an examination as referred to in Article 124 of the Insurance Business Act (including as applied mutatis mutandis pursuant to Article 207 of that Act; hereinafter, the same applies in this paragraph) on receipt of an application for authorization under Article 123, paragraph (1) of that Act (including as applied mutatis mutandis pursuant to Article 207 of that Act), if the examination involves liability insurance premium rates, the Prime Minister must also examine whether there is conformity with the preceding Article, in addition to the criteria set forth in Article 124, item (ii) of the Insurance Business Act.

Article 26-2　(1)　Article 10-2 of the Act on Non-Life Insurance Rating Organizations (Act No. 193 of 1948) and Article 10-3; Article 10-4, paragraph (2) and the second sentence of paragraph (3); Article 10-5, paragraph (4); and Article 10-6, paragraphs (1) through (4) of that Act do not apply to liability insurance.

(2)　To apply Article 10-4, paragraph (1) and the first sentence of paragraph (3) of the Act on Non-Life Insurance Rating Organizations to liability insurance, the phrase "insurance premium rate within a certain range whose center is the standard rate (hereinafter referred to as the "range rates" in this Article)" in paragraph (1) of that Article is deemed to be replaced with "standard rate"; the term "range rates" in the first sentence of paragraph (3) of that Article is deemed to be replaced with "standard rate"; and the phrase "authorized or notified pursuant to paragraph (2) of that Article" in the that sentence is deemed to be replaced with "authorized".

(3)　To apply Article 10-5, paragraphs (1) through (3) of the Act on Non-Life Insurance Rating Organization to liability insurance, the phrase "if the period prescribed in Article 10-2, paragraphs (1) and (2) passes and the Prime Minister finds the standard rate to conform to Article 8" in paragraph (1) of that Article is deemed to be replaced with "if the Prime Minister finds the standard rate to conform to Article 8 of this Act and to Article 25 of the Act on Securing Compensation for Automobile Accidents (Act No. 97 of 1955)"; the phrase "hearing of opinions and conformity examination under Article 10-3, paragraph (1) or (2)" in paragraph (2) of that Article is deemed to be replaced with "examination of whether there is conformity with Article 8 of this Act and Article 25 of the Act on Securing Compensation for Automobile Accidents"; and the phrase "if the Prime Minister finds the standard rate not to conform to Article 8" in paragraph (3) of that Article is deemed to be replaced with "if the Prime Minister finds the standard rate not to conform to Article 8 of this Act or Article 25 of the Act on Securing Compensation for Automobile Accidents".

Article 26-3　On finding liability insurance premiums to exceed the costs that would reasonably arise under efficient management, the Prime Minister may order an insurer or a non-life insurance rating organization as prescribed in Article 2, paragraph (1), item (iii) of the Act on Non-Life Insurance Rating Organizations to change liability insurance premium rates or the standard rates set forth in item (vi) of that paragraph (referred to as "standard rates" in Articles 28 and 29-2).

Article 27　(1)　Before granting approval to an agricultural cooperative, etc. seeking to engage in the mutual liability insurance business (including the business of providing reinsurance for the mutual insurance liabilities assumed under contracts for mutual liability insurance (hereinafter referred to as "mutual reinsurance") or the business of providing retrocession for mutual reinsurance liabilities assumed under contracts for mutual reinsurance (hereinafter referred to as "mutual retrocession"); the same applies hereinafter), pursuant to Article 11-17, paragraph (1) of the Agricultural Cooperatives Act, for mutual insurance rules governing its mutual liability insurance business, an administrative agency (meaning an administrative agency as provided for in Article 98, paragraph (1) of the Agricultural Cooperatives Act, and including the prefectural governor to whom functions under the authority of the Minister of Agriculture, Forest and Fisheries are delegated pursuant to paragraph (15) of that Article) must examine whether the agricultural cooperative, etc. conforms to the criteria set forth in items (i) and (ii) and whether the particulars set forth in the mutual insurance rules with respect to its way of conducting business, mutual insurance contracts, and mutual insurance premiums conform to the criteria set forth in item (iii):

(2)　Before granting approval to an agricultural cooperative, etc. that is engaged in the mutual liability insurance business, pursuant to Article 11-17, paragraph (3) of the Agricultural Cooperatives Act, to amend the mutual insurance rules that govern its mutual liability insurance business, an administrative agency as prescribed in the preceding paragraph must examine whether the particulars set forth in the mutual insurance rules with respect to its way of conducting business, mutual insurance contracts, and mutual insurance premiums conform to the criteria set forth in item (iii) of the preceding paragraph.

(3)　On finding that mutual liability insurance premiums exceed the costs that would reasonably arise under efficient management, an administrative agency as prescribed in paragraph (1) may order an agricultural cooperative, etc. to change the mutual liability insurance premium rates.

Article 27-2　(1)　The preceding Article applies mutatis mutandis if a consumer cooperative, etc. is engaged in the mutual liability insurance business. In such a case, the phrase "an administrative agency (meaning an administrative agency as provided for in Article 98, paragraph (1) of the Agricultural Cooperatives Act, and including the prefectural governor to whom functions under the authority of the Minister of Agriculture, Forest and Fisheries are delegated pursuant to paragraph (15) of that Article)" in the preceding Article is deemed to be replaced with "an administrative agency (meaning an administrative agency as provided in Article 97 of the Consumers' Cooperatives Act, and including the prefectural governor to whom functions under the authority of the Minister of Health, Labour and Welfare are delegated pursuant to Article 97-2 of that Act)"; the term "agricultural cooperative, etc. " is deemed to be replaced with "consumer cooperative, etc."; the term "approval" is deemed to be replaced with "authorization"; the phase "pursuant to Article 11-17, paragraph (1) of the Agricultural Cooperatives Act, for mutual insurance rules that govern mutual liability insurance business" is deemed to be replaced with "pursuant to Article 40, paragraph (5) of that Act, for the establishment of bylaws governing the mutual liability insurance business (hereinafter referred to as 'mutual insurance business bylaws')"; the term "mutual insurance rules" is deemed to be replaced with "mutual insurance business bylaws"; the phrase "Order of the Ministry of Agriculture, Forestry and Fisheries" is deemed to be replaced with "Order of the Ministry of Health, Labour and Welfare"; the term "approval" is deemed to be replaced with "authorization"; and the phrase "pursuant to Article 11-17, paragraph (3) of the Agricultural Cooperatives Act, to amend the mutual insurance rules that govern its mutual liability insurance business" is deemed to be replaced with "pursuant to Article 40, paragraph (5) of the Consumers' Cooperatives Act, to amend the mutual insurance business bylaws that govern its mutual liability insurance business".

(2)　The preceding Article applies mutatis mutandis if a business cooperative, etc. is engaged in the mutual liability insurance business. In such a case, the term "an administrative agency (meaning an administrative agency as provided for in Article 98, paragraph (1) of the Agricultural Cooperatives Act, and including the prefectural governor to whom functions under the authority of the Minister of Agriculture, Forest and Fisheries are delegated pursuant to paragraph (15) of that Article)" in the preceding Article is deemed to be replaced with "an administrative agency (meaning an administrative agency as provided for in Article 111, paragraph (1) of the Small and Medium-Sized Enterprise Cooperatives Act, and including the prefectural governor to whom functions under the authority of the competent minister are delegated pursuant to paragraph (3) of that Article and the chief officer of the local branch office to whom a part of the authority of the competent minister is delegated pursuant to paragraph (4) of that Article)"; the term "agricultural cooperative, etc." is deemed to be replaced with "business cooperative, etc."; the term "approval" is deemed to be replaced with "authorization"; the phrase "pursuant to Article 11-17, paragraph (1) of the Agricultural Cooperatives Act, for mutual insurance rules that govern mutual liability insurance business" is deemed to be replaced with "pursuant to Article 9-6-2, paragraph (1) of that Act (including as applied mutatis mutandis pursuant to Article 9-9, paragraph (5) of that Act), for mutual insurance rules that govern mutual liability insurance business"; the phrase "Order of the Ministry of Agriculture, Forestry and Fisheries" is deemed to be replaced with "order of the competent Minister for the business"; the term "approval" is deemed to be replaced with "authorization"; and the phrase "pursuant to Article 11-17, paragraph (3) of the Agricultural Cooperatives Act, to amend the mutual insurance rules that govern its mutual liability insurance business" is deemed to be replaced with "pursuant to Article 9-6-2, paragraph (4) of the Small and Medium-Sized Enterprise Cooperatives Act (including as applied mutatis mutandis pursuant to Article 9-9, paragraph (5) of that Act), to amend the mutual insurance rules that govern its mutual liability insurance business".

Article 28　(1)　Having received an application for a license as referred to in Article 3, paragraph (1) or Article 185, paragraph (1) of the Insurance Business Act (but only if it is necessary to examine whether liability insurance conforms to both the criteria set forth in Article 5, paragraph (1), items (iii) and (iv) of that Act (including as applied mutatis mutandis pursuant to Article 187, paragraph (5) of that Act) and to Article 25), before issuing that license, the Prime Minister must first obtain the consent of the Minister of Land, Infrastructure, Transport and Tourism to do so.

(2)　Before granting the authorization under Article 123, paragraph (1) of the Insurance Business Act (including as applied mutatis mutandis pursuant to Article 207 of that Act) or issuing an order under Article 131 or 203 of that Act with respect to a particular of the liability insurance that has been established in a document set forth in Article 4, paragraph (2), item (iii) or (iv) or Article 187, paragraph (3), item (3) or (iv) of that Act, the Prime Minister must first obtain the consent of the Minister of Land, Infrastructure, Transport and Tourism to do so.

(3)　Having been notified under Article 9-3, paragraph (1) of the Act on Non-Life Insurance Rating Organizations of the standard rates for liability insurance, and before shortening the period that ends on the day marking the passage of 90 days as prescribed in Article 10-4, paragraph (1) of that Act, pursuant to Article 10-5, paragraph (1) of that Act as applied following the replacement of terms pursuant to Article 26-2, paragraph (3), to a period found to be reasonable, the Prime Minister must first obtain the consent of the Minister of Land, Infrastructure, Transport and Tourism to do so. The same applies with respect to a decision not to give an order as under Article 10-5, paragraph (3) of that Act.

(4)　Before issuing an order under Article 26-3 to change the premium rates or standard rate for liability insurance or issuing an order under Article 10-6, paragraph (5) of the Act on Non-Life Insurance Rating Organizations, the Prime Minister must first obtain the consent of the Minister of Land, Infrastructure, Transport and Tourism to do so.

(5)　If an Insurer violates this Act, an order based on this Act, or a disposition based on either of these, or if an insurer violates the Insurance Business Act, the Act on Non-Life Insurance Rating Organizations, an order based on those Acts, or a disposition based on any of these, with respect to the general conditions of liability insurance or the liability insurance premium rates, the Prime Minister, before reaching a disposition under Article 133 or 205 of the Insurance Business Act, must first obtain the consent of the Minister of Land, Infrastructure, Transport and Tourism to do so.

Article 28-2　(1)　Before reaching a disposition as set forth in the following items in connection with a part of the mutual insurance rules governing a person's mutual liability insurance business that concern that person's way of conducting business, mutual insurance contracts, or mutual insurance premiums, an administrative agency as prescribed in Article 27, paragraph (1) must first obtain the consent of the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister to do so:

(2)　Before enacting or amending an Order of the Ministry of Agriculture, Forestry and Fisheries as referred to in Article 11-17, paragraph (2) of the Agricultural Cooperatives Act in connection with the part of the mutual insurance rules governing a person's mutual liability insurance business that concern that person's way of conducting business, mutual insurance contracts, or mutual insurance premiums, an administrative agency as prescribed in the preceding paragraph must first consult with the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister to do so.

(3)　Before reaching a disposition as set forth in one of the following items in connection with the part of the mutual insurance business bylaws governing a person's mutual liability insurance business that concerns that person's way of conducting business, mutual insurance contracts, or mutual insurance premiums, an administrative agency as prescribed in Article 27, paragraph (1) as applied mutatis mutandis following a replacement of terms pursuant to Article 27-2, paragraph (1), must first obtain the consent of the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister to do so:

(4)　Before enacting or amending an Order of the Ministry of Health, Labour and Welfare as referred to in Article 26-3, paragraph (1) of the Consumers' Cooperatives Act as applied following a replacement of terms pursuant to paragraph (2) of that Article, in connection with the part of the mutual insurance business bylaws governing a person's mutual liability insurance business that concerns that person's way of conducting business, mutual insurance contracts, or mutual insurance premiums, an administrative agency as prescribed in the preceding paragraph must first consult with the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister to do so.

(5)　Before reaching a disposition as set forth in one of the following items in connection with a part of the mutual insurance rules governing a person's mutual liability insurance business that concerns that person's way of conducting business, mutual insurance contracts, or mutual insurance premiums, an administrative agency as prescribed in Article 27, paragraph (1) as applied mutatis mutandis following a replacement of terms pursuant to Article 27-2, paragraph (2), must first obtain the consent of the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister to do so:

(6)　Before enacting or amending an Order as referred to in Article 9-6-2, paragraph (2) of the Small and Medium-Sized Enterprise Cooperatives Act as applied following a replacement of terms pursuant to paragraph (3) of that Article (including as applied mutatis mutandis pursuant to Article 9, paragraph (5) of that Act) in connection with a part the mutual insurance rules governing a person's mutual liability insurance business that concerns that person's way of conducting business, mutual insurance contracts, or mutual insurance premiums, an administrative agency as prescribed in the preceding paragraph must first consult with the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister to do so.

Article 28-3　(1)　Notwithstanding Article 116 of the Insurance Business Act, an insurer is to set aside the full balance of income and expenditures and investment profits generated by the liability insurance business as the reserves provided for by Order of the competent ministry. In such a case, the reserves set aside must not be drawn upon other than to compensate for a shortage of income and expenditures from the liability insurance business and in other cases provided for by Order of the competent ministry.

(2)　The preceding paragraph applies mutatis mutandis to agricultural cooperatives, etc.. In this case, the term "insurer" in the same paragraph is deemed to be replaced with "agricultural cooperative, etc."; the phrase "notwithstanding Article 116 of the Insurance Business Act" is deemed to be replaced with "notwithstanding Article 11-32 of the Agricultural Cooperatives Act"; and the phrase "the liability insurance business" is deemed to be replaced with "the mutual liability insurance business".

(3)　Paragraph (1) applies mutatis mutandis to consumer cooperatives, etc. In such a case, the term "insurer" in that paragraph is deemed to be replaced with "consumer cooperative, etc."; the phrase "Notwithstanding Article 116 of the Insurance Business Act" is deemed to be replaced with "Notwithstanding Article 50-7 of the Consumers' Cooperatives Act"; and the phrase "the liability insurance business" is deemed to be replaced with "the mutual liability insurance business".

(4)　Paragraph (1) applies mutatis mutandis to business cooperatives, etc. In such a case, the term "insurer" in that paragraph is deemed to be replaced with "business cooperative, etc."; the phrase "Notwithstanding Article 116 of the Insurance Business Act" is deemed to be deleted; and the phrase "the liability insurance business" is deemed to be replaced with "the mutual liability insurance business".

(5)　, Order of the competent ministry as referred to in paragraph (1) ( including as applied mutatis mutandis pursuant to the preceding three paragraphs),is to means an order jointly issued by the Prime Minister; the Minister of Health, Labour and Welfare; the Minister of Agriculture, Forestry and Fisheries; the Minister of Land, Infrastructure, Transport and Tourism; and the competent Minister for the business.

Article 28-4　(1)　Insurers and cooperatives (other than any cooperative that has entered into a mutual reinsurance agreement pursuant to which another cooperative bears all of the mutual insurance liabilities it had assumed pursuant to contracts for mutual liability insurance; and other than any cooperative that has entered into a mutual retrocession agreement pursuant to which another cooperative bears all of the mutual reinsurance liabilities it had assumed pursuant to a mutual reinsurance agreement; hereinafter the same applies in this Article) are to jointly perform the work of calculating, distributing, and collecting insurance premiums and insurance proceeds and damages among themselves (hereinafter referred to as "jointly pooled administrative processes" in this Article) as follows:

(2)　Insurers and cooperatives must formulate rules establishing allocation rates and other necessary particulars of the jointly pooled administrative processes; an insurer must report these rules to the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister; and a cooperative must report these rules to the Minister of Land, Infrastructure, Transport and Tourism and to whichever minister among the Minister of Health, Labour and Welfare; the Minister of Agriculture, Forestry and Fisheries; or the competent Minister for the business has jurisdiction over that cooperative. The same applies if they change those rules.

(3)　The Minister of Land, Infrastructure, Transport and Tourism may ask an insurer or cooperative to submit the necessary reports or materials for assessing the operational status of jointly pooled administrative processes, to the extent that this is necessary. To do so, the Minister of Land, Infrastructure, Transport and Tourism is to first consult with whichever minister among the Prime Minister; the Minister of Health, Labour and Welfare; the Minister of Agriculture, Forestry and Fisheries; or the competent Minister for the business has jurisdiction over the insurer or the cooperative.

(4)　On finding that the content of the rules reported pursuant to paragraph (2) violates a law or regulation or that it subjects a specific group of persons to unfairly differential treatment, or on finding that jointly pooled administrative processes are not being performed properly, the Minister of Land, Infrastructure, Transport and Tourism and the Prime Minister; the Minister of Health, Labour and Welfare; the Minister of Agriculture, Forestry and Fisheries; and the competent Minister for the business may jointly order an insurer or cooperative to amend those rules or to take other necessary measures.

Article 29　Having given authorization under Article 102, paragraph (1) of the Insurance Business Act (including as applied mutatis mutandis pursuant to Article 199 of that Act) with regard to a concerted action involved in the liability insurance business as set forth in Article 101, paragraph (1), item (i) of that Act (including as applied mutatis mutandis pursuant to Article 199 of that Act), the Prime Minister must notify the Minister of Land, Infrastructure, Transport and Tourism of this.

Article 29-2　(1)　Insurers and cooperatives, pursuant to Cabinet Office Order, must report damage rates and other necessary information for calculating liability insurance premium rates and mutual liability insurance premium rates to the Non-Life Insurance Rating Organization that the Prime Minister designates from among those that calculate standard rates for liability insurance (in the following paragraph, referred to as the "rating organization") .

(2)　A cooperative may request the rating organization to provide the materials based on which the standard rates for liability insurance were calculated.

(3)　Before enacting or amending Cabinet Office Order as referred to in paragraph (1), the Prime Minister must first consult with the Minister of Land, Infrastructure, Transport and Tourism, as well as with the Minister of Health, Labour and Welfare; the Minister of Agriculture, Forestry and Fisheries; and the competent Minister for the business.

Article 30　An insurer or cooperative is to enter into an agency agreement for liability insurance or mutual liability insurance with an organization or other person that has been established with the purpose of promoting automobile transportation and that is found to be appropriate in terms of the smooth implementation of the liability insurance or mutual liability insurance business.

Article 31　The Council on Automobile Liability Insurance (hereinafter referred to as the "council") is established in the Financial Services Agency.

Article 32　Deleted

Article 33　(1)　Before reaching a disposition prescribed in Article 28, paragraph (1) in a case as prescribed in that paragraph, and before reaching a disposition prescribed in paragraph (2) or (4) of that Article, the Prime Minister must consult with the council. The same applies in a case as prescribed in paragraph (3) of that Article, before the Prime Minister shortens the period prescribed in the first sentence of that paragraph or decides not to issue the order prescribed in the second sentence of that paragraph.

(2)　Before giving the consent under Article 28-2, paragraph (1), (3), or (5), the Prime Minister must consult with the council.

(3)　The council accommodates consultations under the preceding paragraph by studying and deliberating on the consent of the Prime Minister under Article 28-2, paragraph (1), (3), or (5).

Article 34　Deleted

Article 35　The members of the council are appointed by the Prime Minister with the consent of the Minister of Land, Infrastructure, Transport and Tourism, pursuant to Cabinet Order.

Articles 36 through 38　Deleted

Article 39　Beyond what is provided for in Articles 31, 33, and 35, Cabinet Order provides for the organization, members, and other personnel of the council, and for any other necessary particulars concerning the council.

Articles 40 through 70　Deleted