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Report of the Legal and Compliance Committee

1. Gathering Information on Credit Ratings and Capital Adequacy Ratios (CAR) of Insurance
Companies
The Committee set up and updated the database of credit ratings of insurance companies by gathering the

information on credit ratings of foreign insurance companies published by credit rating agencies and the information
on the Capital Adequacy Ratio (CAR) of the domestic insurance companies to facilitate member companies in
choosing their reinsurer(s) and to be used in calculating credit risk of foreign reinsurers in compliance to the RBC
criteria. The information is posted on the website of Thai General Insurance Association, under the CAR ratio/Rating
label.

2. Gathering and Pooling Laws and Regulations for E-Law Library System
The Committee has gathered and pooled laws and regulations for E-Law Library System for a convenience
of the users. The information is regularly updated and posted on the website of Thai General Insurance Association.

3. Being a Center in Pursuing Flood Claims from Reinsurance Companies
Thai General Insurance Association has been a center for pursuing the flood claims from reinsurance
companies, following the guidelines jointly set by the insurance companies, and also an intermediary to accelerate
the reinsurance companies to pay the claims. Guidelines were jointly set for operations between insurance companies
and insureds, insurance companies and insurance companies, and insurance companies and reinsurance
companies. For the claim settlements between insurance companies and domestic reinsurers, the Association
drafted a claim settlement agreement, a partial claim payment agreement, and a claim settlement and partial claim
payment agreement for insurance companies to choose upon their discretion. For the claim settlements between
insurance companies and foreign reinsurers, the Association drafted an Arbitration Clause for Foreign Treaty
Reinsurance Agreement, Arbitration Clause for Foreign Facultative Reinsurance Agreement, and Domestic Facultative

Reinsurance Agreement. The Association also wrote to reinsurers, requesting for payments of pending claims to
insurance companies in Thailand. As a consequence, executives of some reinsurance companies came to have
discussions directly with the Association’s representatives to exchange information and views on payments of the
claims, and facilitate the meeting room at the Association to handle the claim settlement issues.

4. Compliance of Anti Money Laundering and Combating the Financing of Terrorism (AML/CFT)
Non-life insurance company is defined as a financial institution and has to comply with the Anti Money
Laundering and Combating the Financing of Terrorism (AML/CFT). Staring from August 21, 2012, every non-life
insurance company has been strictly required to fully comply with the AML/CFT; otherwise, if found that the

company does not comply at all or does not fully comply, the person(s) in charge shall be punished by law as the
company’s authorized person. There are both civil and criminal penalties. Therefore, the Association informed
every insurance company as follows:

120 รายงานประจำาปี 2556 | Annual Report 2013