Notes

1. Technical issues that will be resolved under section I(3) e.iii. include the following:
   
   If an insurance provider withdraws from a rating organization with respect to voluntary automobile insurance, there will be no change in the insurance provider's operations with respect to compulsory automobile liability insurance (CALI). Accordingly, the insurance provider will continue to be allowed to:
   1. sell CALI within the rating organization system; and
   2. coordinate claims adjustment with other companies and settle claims as per current practice.

2. The seven regions mentioned in section I(4)b. consist of the following prefectures:

   Hokkaido:	Hokkaido
   Tohoku:	Aomori, Iwate, Akita, Miyagi, Yamagata, and Fukushima
   Kanto-Koshinetsu:	Tokyo, Kanagawa, Saitama, Chiba, Ibaragi, Tochigi, Gunma, Yamanashi, Nagano, and Niigata
   Hokuriku-Tokai:	Toyama, Ishikawa, Fukui, Shizuoka, Aichi, Gifu, and Mie
   Kinki-Chugoku:	Osaka, Kyoto, Shiga, Nara, Wakayama, Hyogo, Okayama, Hiroshima, Tottori, Shimane, and Yamaguchi
   Shikoku:	Kagawa, Ehime, Tokushima, and Kochi
   Kyushu:	Fukuoka, Nagasaki, Saga, Oita, Kumamoto, Miyazaki, Kagoshima, and Okinawa

3. "Endorsement" which appears in section II(1)a.i.(A) and (C) means recommendation (suisho) and/or back-up (koen).
4. Non-profit inter-industry associations or foundations for managers of corporations which appears in section II(1)a.i.(A) means the Zenkoku Hojinkai Sorengo, Kyokuren Hojinkai, Kenhojinkai Rengokai, Tan-i Hojinkai, Nozeikyokai Rengokai, Burokku-kai, and Nozeikyokai.
5. In the event that no applications or notifications have been submitted by ninety days before the date of an assessment of whether the criteria in section II(3) are met, the criteria in section II(3) c.ii., and e. will be considered to have been met.
6. The two Governments understand that whenever this document states that the Ministry of Finance will approve an application or will not reject a notification, the application or notification must meet the applicable legal criteria. The Ministry of Finance will apply the legal criteria in a fair and transparent manner, and will interpret them with a view toward allowing insurance providers to differentiate, on the basis of the risk insured, the rates, forms, and distribution of products.
7. The measures to avoid radical change in section II(1) do not apply to group long-term disability insurance (dantai choki shogai shotoku hosho hoken) and income indemnity insurance (shotoku hosho hoken), inclusive of individual long term disability insurance (choki shogai tokuyaku).