6. An insurer or underwriting agent shall raise kyats 30 million for life assurance and kyats 200 million for
     general insurance as the paid-up capital.

 7. The Supervisory Board shall :-

     (a) direct an insurer or underwriting agent to open an account at the Myanma Economic Bank with a
          deposit equal to 10% of the paid-up capital.
     (b) direct an insurer or underwriting agent to purchase in their joint names Government Treasury Bonds
          worth 30% of the paid-up capital.

 8. The Supervisory Board may, with the approval of the Ministry, amend the stipulations contained in
     rules 6 and 7.

 9. The Supervisory Board shall :-

     (a) with the approval of the Ministry, encash and expend the Government Treasury Bonds purchased in
          pursuance of sub-rule (b) of rule 7;
     (b) permit an insurer or underwriting agent to withdraw and expend the remainder of the paid-up capital
          after the purchase of the Government Treasury Bonds pursuant to sub-rule (b) of rule 7, for the
          purpose of the insurance business.

 10. The Supervisory Board shall :-

     (a) in evaluating assets and liabilities of an insurer or underwriting agent, formulate norms and criteria
          as recommended by an actuary or qualified accountant;
     (b) scrutinize and approve the programme of investment submitted in accordance with the type of in by
          an insurer or underwriting agent.

11. The Supervisory Board :-

     (a) shall determine 10% of the net life assurance premium generated in the closed underwriting year
          immediately preceding the current year as the net worth of a life assurance business;
     (b) shall determine the maximum amount of the following to be the net worth of a general insurance
          business:-
          (1). kyats 20 million;
          (2). 50% of the net premium income generated in the closed underwriting year immediately
                preceding the current year;
          (3). 50% of the claim reserve provided for the closed underwriting year immediately preceding the
                current year;
    (c) may, with the approval of the Ministry amend the stipulations contained in sub-rules (a) and (b)

12. The Supervisory Board :-

      (a) shall direct an insurer or underwriting agent to establish a life assurance fund and open an account
            therewith at the Myanma Economic Bank;
      (b) shall direct an insurer or underwriting agent to establish a Life Assurance Policyholders Protection
            Fund for the purpose of protecting the life assurance policyholders if necessary, and to open an
            account therewith at the Myanma Economic Bank;
      (c) may allow, for the following purposes, a reasonable sum to be withdrawn and expended out of the
           Life Assurance Policyholders Protection Fund established in accordance with sub-rule (b):-
            (1). supplementing payment towards claims which cannot be full paid owing to insufficiency of the
                   life assurance fund;
            (2). deficiency in the premium when life assurance policies are handed over to another insurer or
                   underwriting agent owing to the termination or abolition of the life assurance business;
            (3). defraying the expense incurred in connection with clauses (1) and (2) of sub-rule (c);
      (d) shall direct an insurer or underwriting agent to establish a main general insurance fund and open an
            account therewith at the Myanma Economic Bank.

13. The Supervisory Board shall direct an insurance broker to effect professional indemnity insurance in
      kyats or in foreign exchange in the value as determined by the Ministry from time to time :-

14. The Supervisory Board :-

      (a) shall direct an insurer or underwriting agent or broker concerned, to terminate the employment of
            the principal officer of the relevant insurance business, who is convicted of one of the offences
            prescribed from time to time by the Ministry;
      (b) may return the balance together with the interest accrued on the deposit, after leaving an amount
            sufficient to meet the liabilities in respect of the insurance business, where an insurer or underwriting
            agent discontinues its operations or its business licence is revoked.
      (c) may grant a business licence to a company doing business with foreign investment, which applies to
          operate the business of an insurer, underwriting agency or insurance broker after due scrutiny in
          accordance with the existing laws;
      (d) may permit an insurer, underwriting agent or insurance broker who holds a business licence to
           establish a representative branch office;
      (e) shall direct the insurer or underwriting agent to effect reinsurance;
      (f) may, with the approval of the Ministry, establish insurance institutes, communicate with international
           insurance organizations and carry out educative and organizational activities, in order that the
          technology and business of insurance may thrive and be outstanding.
      (g) shall submit the report of its performance to the Ministry within 4 months after the end of the fiscal
            year.