Article 1The cases specified by Cabinet Office Order/Ministry of Finance Order as prescribed in Article 127, paragraph (1), item (viii) of the Insurance Business Act (hereinafter referred to as the "Act") are the following cases:

Article 2(1)The order specified by Cabinet Office Order/Ministry of Finance Order for the category corresponding to the level of solvency of an insurance company (meaning the insurance company prescribed in Article 2, paragraph (2) of the Act; the same applies hereinafter) in terms of its ability to pay insurance proceeds, etc. as referred to in Article 132, paragraph (2) of the Act is as set forth in the following table, except for the cases specified in the following Article.

(2)The phrase "ratio indicating the level of solvency in terms of the ability to pay insurance proceeds, etc." as used in the table under the preceding paragraph means the ratio derived from the formula pertaining to the criteria regarding the appropriateness of the level of solvency in terms of the ability to pay insurance proceeds, etc. established using the amounts set forth in the items of Article 130 of the Act that pertain to an insurance company or to an insurance company and its subsidiary company, etc. as referred to in that Article.

(3)The term "policy dividend" as used in the table under paragraph (1) means the policy dividend prescribed in Article 114, paragraph (1) of the Act.

(4)The term "subsidiary company, etc." as used in the table under paragraph (1) means the subsidiary company, etc. prescribed in Article 110, paragraph (2) of the Act.

Article 3(1)If an insurance company learns that the ratio indicating the level of its solvency in terms of its ability to pay insurance proceeds, etc. (meaning the ratio indicating the level of solvency in terms of the ability to pay insurance proceeds, etc. prescribed in paragraph (2) of the preceding Article; hereinafter the same applies in this Article) falls below the range of the ratio indicating the level of solvency in terms of the ability to pay insurance proceeds, etc. that corresponds to the category referred to in the table under paragraph (1) of the preceding Article to which the insurance company used to belong, and promptly after that, submits to the Commissioner of the Financial Services Agency a plan deemed reasonable to improve the ratio indicating the level of its solvency in terms of its ability to pay insurance proceeds, etc. with certainty to exceed the range of the ratio indicating the level of solvency in terms of the ability to pay insurance proceeds, etc. that corresponds to the category to which the insurance company belongs, with regard to the insurance company, the order according to the relevant category is to be an order set forth for the category (except for exception from the category) in that table corresponding to the ratio indicating the level of solvency in terms of the ability to pay insurance proceeds, etc. which is not less than the ratio indicating the level of solvency in terms of the insurance company's ability to pay insurance proceeds, etc. and not more than the ratio indicating the level of its solvency in terms of its ability to pay insurance proceeds, etc. to be expected after the implementation of the plan; provided, however, that if it becomes clear that the plan is not reasonable, with regard to the insurance company, an order according to the category in the table to which the insurance company belongs is to be as prescribed in that paragraph.

(2)If the total of the amounts to be recorded in the assets section (with regard to assets set forth in the following items, the value specified in the respective items; the same applies in the following paragraph) of a balance sheet (the amount equivalent to the amount of deferred tax assets (meaning the amount recorded as assets as a result of applying tax effect accounting; hereafter the same applies in this paragraph) regarding any difference between the amount recorded in the balance sheet and the book value regarding assets that fall within the scope of other securities (meaning other securities as prescribed in Article 8, paragraph (22) of the Regulation on the Terminology, Forms, and Preparation Methods of Financial Statements (Ministry of Finance Order No. 59 of 1963; hereinafter referred to as the "Regulation on Financial Statements"); hereinafter the same applies in this paragraph) is deducted; the same applies in the following paragraph) or the total of the amounts to be recorded in the assets section (with regard to assets set forth in the following items, the value specified in the respective items; the same applies in the following paragraph) of a consolidated balance sheet (the amount equivalent to the amount of deferred tax assets regarding any difference between the amount recorded in the consolidated balance sheet and the book value of assets that fall within the scope of other securities as well as the amount equivalent to the amount of differed tax assets regarding the total of the amount of any unrecognized actuarial gain/loss (meaning the unrecognized actuarial gain/loss prescribed in Article 8, paragraph (62) of the Regulation on Financial Statements) and the amount of unrecognized past service cost (meaning the unrecognized past service cost prescribed in Article 8, paragraph (63) of the Regulation on Financial Statements) are deducted; the same applies in the following paragraph and Article 7, paragraphs (2) and (3)) of an insurance company that belongs to Category 3 in the table under paragraph (1) of the preceding Article exceeds or is expected to exceed the amount calculated as prescribed by the Commissioner of the Financial Services Agency and the Minister of Finance on the basis of the total of the amounts to be recorded in the liabilities section of the balance sheet or consolidated balance sheet, with regard to the insurance company, the order according to the relevant category is to include an order set forth for Category 2 in that table:

(3)If the total of the amounts to be recorded in the assets section of a balance sheet or the total of the amounts to be recorded in the assets section of a consolidated balance sheet of an insurance company that belongs to any category other than Category 3 in the table under paragraph (1) of the preceding Article falls below or is expected to fall below the amount calculated as prescribed by the Commissioner of the Financial Services Agency and the Minister of Finance on the basis of the total of the amounts to be recorded in the liabilities section of the balance sheet or consolidated balance sheet, with regard to the insurance company, the order according to the relevant category is to include an order set forth for Category 3 in that table.

(4)If an insurance company holds a reinsurance contract prescribed in Article 3, paragraph (1) (Reinsurance by the Government) of the Act on Earthquake Insurance (Act No. 73 of 1966) that has been concluded with the government, with regard to the insurance company, the order according to the category in the table under paragraph (1) of the preceding Article to which the insurance company belongs is to include an order set forth for exception from the category in that table.

Article 4(1)The order specified by Cabinet Office Order/Ministry of Finance Order for the category corresponding to the level of solvency of a foreign insurance company, etc. (meaning the foreign insurance company, etc. prescribed in Article 2, paragraph (7) of the Act; hereinafter the same applies in this Article) in terms of its ability to pay insurance proceeds, etc. as referred to in Article 204, paragraph (2) of the Act is as set forth in the following table, except for the cases specified in paragraphs (1) to (3) of the preceding Article as applied mutatis mutandis pursuant to paragraph (5).

(2)The phrase "ratio indicating the level of solvency in terms of the ability to pay insurance proceeds, etc." as used in the table under the preceding paragraph means the ratio derived from the formula pertaining to the criteria regarding the appropriateness of a foreign insurance company's level of solvency in terms of its ability to pay insurance proceeds, etc. as referred to in Article 202 of the Act.

(3)The term "branch office, etc." as used in the table under paragraph (1) means the branch office, etc. prescribed in Article 185, paragraph (1) of the Act.

(4)The phrase "principal branch in Japan" as used in the table under paragraph (1) means the principal branch in Japan prescribed in Article 187, paragraph (1), item (iv) of the Act.

(5)The provisions of paragraphs (1) to (3) of the preceding Article apply mutatis mutandis to a foreign insurance company, etc. In this case: the phrase "paragraph (1) of the preceding Article" in paragraphs (1) to (3) of that Article is deemed to be replaced with "Article 4, paragraph (1)"; the phrase "paragraph (2) of the preceding Article" in paragraph (1) of that Article is deemed to be replaced with "Article 4, paragraph (2)"; the phrase "balance sheet or consolidated balance sheet" in paragraphs (2) and (3) of that Article is deemed to be replaced with "balance sheet for the insurance business in Japan"; in paragraph (2) of that Article, the phrase "balance sheet of an insurance company" is deemed to be replaced with "balance sheet for the insurance business in Japan of a foreign insurance company, etc.," the phrase "amount recorded in the balance sheet regarding assets" is deemed to be replaced with "amount recorded in the balance sheet for the insurance business in Japan regarding assets," and the phrase "or the total of the amounts to be recorded in the assets section (with regard to assets set forth in the following items, the value specified in the respective items; the same applies in the following paragraph) of a consolidated balance sheet (the amount equivalent to the amount of deferred tax assets regarding any difference between the amount recorded in the consolidated balance sheet and the book value of assets that fall within the scope of other securities as well as the amount equivalent to the amount of differed tax assets regarding the total of the amount of any unrecognized actuarial gain/loss (meaning the unrecognized actuarial gain/loss prescribed in Article 8, paragraph (62) of the Regulation on Financial Statements) and the amount of unrecognized past service cost (meaning the unrecognized past service cost prescribed in Article 8, paragraph (63) of the Regulation on Financial Statements) are deducted; the same applies in the following paragraph and Article 7, paragraphs (2) and (3))" is deemed to be deleted; and the phrase "the total of the amounts to be recorded in the assets section of a balance sheet or the total of the amounts to be recorded in the assets section of a consolidated balance sheet" is deemed to be replaced with "the total of the amounts to be recorded in the assets section of a balance sheet for the insurance business in Japan."

Article 5(1)The provisions of paragraph (1) of the preceding Article apply mutatis mutandis to a licensed specified corporation (meaning the licensed specified corporation prescribed in Article 223, paragraph (1) of the Act; hereinafter the same applies in this Article) and underwriting member (meaning the underwriting member prescribed in Article 219, paragraph (1) of the Act; hereinafter the same applies in this Article).In this case, in paragraph (1) of the preceding Article: the phrase "Article 204, paragraph (2) of the Act" is deemed to be replaced with "Article 230, paragraph (2) of the Act"; the term "foreign insurance company, etc." is deemed to be replaced with "underwriting member"; the term "paragraph (5)" is deemed to be replaced with "Article 5, paragraph (3)"; the phrase "operations in Japan" is deemed to be replaced with "operations in Japan of the underwriting member"; the phrase "distributing policy dividends or dividends of surplus to members" is deemed to be replaced with "distributing policy dividends"; the term "branch offices, etc." is deemed to be replaced with "offices of the general agent"; and the phrase "principal office in Japan" is deemed to be replaced with "head office of the general agent."

(2)The phrase "ratio indicating the level of solvency in terms of the ability to pay insurance proceeds, etc." as used in the table under paragraph (1) of the preceding Article as applied mutatis mutandis pursuant to the preceding paragraph means the ratio derived from the formula pertaining to the criteria regarding the appropriateness of an underwriting member's level of solvency in terms of its ability to pay insurance proceeds, etc. as referred to in Article 228 of the Act.

(3)The term "general agent" as used in the table under paragraph (1) of the preceding Article as applied mutatis mutandis pursuant to paragraph (1) means the general agent prescribed in Article 219, paragraph (1) of the Act.

(4)The provisions of Article 3, paragraphs (1) to (3) apply mutatis mutandis to a licensed specified corporation and underwriting member. In this case: in the provisions of paragraphs (1) to (3) of that Article, the phrase "paragraph (1) of the preceding Article" is deemed to be replaced with "Article 4, paragraph (1) as applied mutatis mutandis pursuant to Article 5, paragraph (1)" and the phrase "with regard to the insurance company" is deemed to be replaced with "with regard to the licensed specified corporation or underwriting member"; in paragraph (1) of that Article, the phrase "If an insurance company" is deemed to be replaced with "If a licensed specified corporation or underwriting member"; the phrase "the ratio indicating the level of its solvency in terms of its ability to pay insurance proceeds, etc." is deemed to be replaced with "the ratio indicating an underwriting member's level of solvency in terms of its ability to pay insurance proceeds, etc."; the phrase "paragraph (2) of the preceding Article "is deemed to be replaced with "Article 5, paragraph (2)"; and the term "the insurance company" is deemed to be replaced with "the underwriting member"; the phrase "balance sheet or consolidated balance sheet" in paragraphs (2) and (3) of that Article is deemed to be replaced with "balance sheet for the insurance business in Japan"; in paragraph (2) of that Article, the phrase "balance sheet of an insurance company" is deemed to be replaced with "balance sheet for the insurance business in Japan of an underwriting member," the phrase "amount recorded in the balance sheet regarding assets" is deemed to be replaced with "amount recorded in the balance sheet for the insurance business in Japan regarding assets," and the phrase "or the total of the amounts to be recorded in the assets section (with regard to assets set forth in the following items, the value specified in the respective items; the same applies in the following paragraph) of a consolidated balance sheet (the amount equivalent to the amount of deferred tax assets regarding any difference between the amount recorded in the consolidated balance sheet and the book value of assets that fall within the scope of other securities as well as the amount equivalent to the amount of differed tax assets regarding the total of the amount of any unrecognized actuarial gain/loss (meaning the unrecognized actuarial gain/loss prescribed in Article 8, paragraph (62) of the Regulation on Financial Statements) and the amount of unrecognized past service cost (meaning the unrecognized past service cost prescribed in Article 8, paragraph (63) of the Regulation on Financial Statements) are deducted; the same applies in the following paragraph and Article 7, paragraphs (2) and (3))" is deemed to be deleted; and the phrase "the total of the amounts to be recorded in the assets section of a balance sheet or the total of the amounts to be recorded in the assets section of a consolidated balance sheet of an insurance company" is deemed to be replaced with "the total of the amounts to be recorded in the assets section of a balance sheet for the insurance business in Japan of an underwriting company."

Article 6(1)The order specified by Cabinet Office Order/Ministry of Finance Order for the category corresponding to the level of solvency of an insurance company that is a subsidiary company of an insurance holding company (meaning the insurance holding company prescribed in Article 2, paragraph (16) of the Act; the same applies hereinafter) in terms of its ability to pay insurance proceeds, etc. as referred to in Article 271-29, paragraph (2) of the Act is as set forth in the following table, except for the cases specified in the following Article.

(2)The phrase "ratio indicating the level of solvency in terms of the ability to pay insurance proceeds, etc." as used in the table under the preceding paragraph means the ratio derived from the formula pertaining to the criteria regarding the appropriateness of level of solvency of an insurance company that is a subsidiary company of an insurance holding company in terms of its ability to pay insurance proceeds, etc. as referred to in Article 271-28-2 of the Act.

(3)The term "subsidiary company, etc." as used in the table under paragraph (1) means the subsidiary company, etc. prescribed in Article 110, paragraph (2) of the Act.

Article 7(1)If an insurance holding company learns that the ratio indicating the level of its solvency in terms of its ability to pay insurance proceeds, etc. (meaning the ratio indicating the level of solvency in terms of its ability to pay insurance proceeds, etc. prescribed in paragraph (2) of the preceding Article; hereinafter the same applies in this Article) falls below the range of the ratio indicating the level of solvency in terms of its ability to pay insurance proceeds, etc. that corresponds to the category referred to in the table under paragraph (1) of the preceding Article to which the insurance holding company used to belong, and promptly after that, submits to the Commissioner of the Financial Services Agency a plan deemed reasonable to improve the ratio indicating the level of its solvency in terms of its ability to pay insurance proceeds, etc. with certainty to exceed the range of the ratio indicating the level of solvency in terms of the ability to pay insurance proceeds, etc. that corresponds to the category to which the insurance holding company belongs, with regard to the insurance holding company, the order according to the relevant category is to be an order set forth for the category (except for exception from the category) in that table corresponding to the ratio indicating the level of solvency in terms of the ability to pay insurance proceeds, etc. which is not less than the ratio indicating the level of solvency in terms of the insurance holding company's ability to pay insurance proceeds, etc. and not more than the ratio indicating the level of its solvency in terms of its ability to pay insurance proceeds, etc. to be expected after the implementation of the plan; provided, however, that if it becomes clear that the plan is not reasonable, with regard to the insurance holding company, an order according to the category in the table to which the insurance holding company belongs is to be as prescribed in that paragraph.

(2)If the total of the amounts to be recorded in the assets section of (with regard to assets set forth in the following items, the value specified in the respective items; the same applies in the following paragraph) a consolidated balance sheet of an insurance holding company that belongs to Category 3 in the table under paragraph (1) of the preceding Article exceeds or is expected to exceed the amount calculated as prescribed by the Commissioner of the Financial Services Agency and the Minister of Finance on the basis of the total of the amounts to be recorded in the liabilities section of the consolidated balance sheet, with regard to the insurance holding company, the order according to the relevant category is to include an order set forth for Category 2 in that table:

(3)If the total of the amounts to be recorded in the assets section of a consolidated balance sheet of an insurance holding company that belongs to any category other than Category 3 in the table under paragraph (1) of the preceding Article falls below or is expected to fall below the amount calculated as prescribed by the Commissioner of the Financial Services Agency and the Minister of Finance on the basis of the total of the amounts to be recorded in the liabilities section of the consolidated balance sheet, with regard to the insurance holding company, the order according to the relevant category is to include an order set forth for Category 3 in that table.

Article 8The notice specified by Cabinet Office Order/Ministry of Finance Order as prescribed in Article 311-3, paragraph (2) of the Act (limited to the notice under the provisions set forth in item (i) of that paragraph) is to be the notice to be made if any of the cases set forth in the items of Article 1 applies.