Life Insurance Actuarial Basis Regulation Lv-Vmgv

Original Language Title: Lebensversicherung Versicherungsmathematische Grundlagen-Verordnung – LV-VMGV

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296. Regulation of the Financial Market Supervisory Authority (FMA) on the content and structure of the actuarial basis (Life Insurance Insurance Mathematical Basics-Regulation-LV-VMGV)

On the basis of § 92 (1) of the Insurance Supervisory Law 2016-VAG 2016, BGBl. I n ° 34/2015, as last amended by the Federal Act BGBl. I No 112/2015, shall be arranged:

Form of transmission

§ 1. (1) The actuarial basis for life assurance in accordance with Z 19 to 22 of Appendix A to VAG 2016 used for the preparation of the tariffs and the calculation of technical provisions shall be the FMA in to be sent by electronic means in accordance with § 2 and with the form in accordance with § 3.

(2) The document and the form referred to in paragraph 1 shall be submitted to the FMA separately for each tariff.

Contents and outline of the document "Insurance mathematical foundations"

§ 2. (1) The document has to contain a title page, which is overwritten with "actuarial basics". In addition, the following data have to be produced from the title page:

1.

Name, legal entity identifier (LEI code), address, telephone number and home page of the insurance company;

2.

Name, email address and telephone number of the responsible actuary;

3.

Name, e-mail address and telephone number of the deputy responsible actuary;

4.

the technical name of the tariff;

5.

the type of insurance;

6.

earliest possible insurance start;

7.

the start of sales of the proposed version of the tariff;

8.

New submission (including any tariff titles from previous versions) or change version.

(2) Immediately after the title page, a table of contents must be followed, in which the headings of the top category in accordance with paragraph 4, including the respective page number, under which the corresponding item is to be found, are listed.

(3) The pages in the document are to be numbered with "page x of y", where "x" is the current page and "y" denotes the total number of pages of the document.

(4) In the document, the tariff design shall be explained in detail in accordance with the items listed below and in the specified order:

1.

General Part

1.1. Amendments including their justification

1.2. Sales countries

1.3. General and special insurance conditions (voluntary)

1.4. Possible contract states

1.5. Possible Rate Areas

1.6. Verbal Rate Description

1.7. Main or additional tariff

1.8. Premium number

1.9. Number of pensions

1.10. Other business

2.

Age and time limits

2.1. Minimum end-of-age

2.2. Maximum terminal age

2.3. Minimum End Age

2.4. Maximum Age

2.5. Minimum runtime or minimum performance duration

2.6. Maximum duration or maximum performance duration

2.7. Minimum duration of the premium payment

2.8. Maximum duration of the premium payment

2.9. Minimum duration

2.10. Maximum lift duration

2.11. Wait Time

2.12. Age and time limits

3.

Summary Limits

3.1. Annual minimum premium or Minimum one-off premium

3.2. Annual maximum premium or maximum single premium

3.3. Minimum Performance

3.4. Maximum performance

3.5. Other summary limits

4.

Profit System

4.1. Profit sharing

4.2. Accounting Association

4.3. Profit Usage

4.4. Profit Components

4.5. Other business

5.

Calculation basis for premium and reserve calculation

5.1. Biometric basics

5.2. Invoice Zins

5.3. Other accounting principles

5.4. Justification of the accounts

5.5. Justification of different billing bases for premiums and reserves

5.6. Premium age

5.7. Retirement payment phase

5.8. Other business

6.

Accounting costs

6.1. Closing costs and Zillmersatz

6.2. Administrative costs

6.3. Underage surcharges

6.4. Stornoabzug

6.5. Other surcharges and costs

7.

Promotions

7.1. Summary Rebate

7.2. Premium Discounts

7.3. Other discounts

8.

Mathematical formulas

8.1. My Values

8.2. Names and definitions

8.3. Probabilities, excretion orders and commutation figures

8.4. Barvalues and Anwartschaften

8.5. Nettoprem

8.6. Zillmerpremium

8.7. Bruttopremia

8.8. Pre-written premium

8.9. Spar and risk premium

8.10. Reserves

8.10.1. Premium

8.10.2. Premium-free

8.10.3. One-off and one-off payments

8.10.4. Additional provisions

8.10.5. Administration Cost Reserve

8.10.6. Balance sheet

8.10.7. Premium surglees

8.10.8. Other reserves

8.11. Return value and amount of inconspicuity

8.11.1. Premium

8.11.2. Premium-free

8.11.3. One-off

8.12. Reduction Value

8.13. Revenue

8.14. Payout Amount

8.15. Other business

9.

Embedded options

10.

Additional insurances (including tariff designation )

10.1. Mandatory supplementary insurance

10.2. Optional supplementary insurance

11.

External guarantees

12.

Other business

(5) If there are no statements in respect of individual items in paragraph 4 in the absence of relevance, these items shall be referred to in the document and shall be marked with the words "deleted". If a post with all sub-items is no longer required, it is sufficient to list only this item and to bear the words "deleted".

(6) The document is to be transmitted in the Portable Document Format (PDF) developed by the enterprise Adobe Systems without limitation of the functionality.

Content and outline of the form

§ 3. (1) The following information is to be transmitted with the form:

1.

the full name of the insurance undertaking;

2.

LEI code of the insurance undertaking;

3.

the technical name of the tariff;

4.

Insurance division;

5.

the type of insurance;

6.

Premium number;

7.

Invoice rate;

8.

Accounting Association;

9.

Profit plan;

10.

External guarantors;

11.

earliest possible insurance start;

12.

the start of sales of the tariff;

13.

the selling end of the tariff;

14.

New submission (including any tariff titles from previous versions) or change version;

15.

the product name of the tariff (multiple input possible);

16.

Main or additional tariff per product name;

17.

earliest possible insurance start per product name;

18.

Start of sales per product name;

19.

Sales end per product name.

(2) The form shall be submitted in accordance with the data list set out by the FMA. In this case, the officially defined data features, including the record build-up, must be taken into consideration.

Transmission of amendments

§ 4. (1) If the original tariff is also adapted for existing contracts in accordance with Section 2 (4) or § 3 (1) (1) to (13), a revision version of the document "Versicherungsmathematical Grundlagen" shall be transmitted. In the case of change versions, the changes are to be marked with respect to the last filed document "Versicherungsmathematical Grundlagen". In Item 8. in accordance with Section 2 (1) and in Item 1.1. in accordance with § 2 (4), it must be stated that the document submitted is a change version. In item 1.1. in accordance with § 2 para. 4 it is also to be found in which items in accordance with § 2 para. 4 there are amendments to the last presentation of the document "Versicherungsmathematical Grundlagen" (Insurance mathematical foundations). The amendments shall be explained in detail. In addition, a fully consolidated version (without change marks) of the document "Actuarial Basics" must be transmitted. The form in accordance with § 3 is to be completely retransmitted. In Item 14. § 3 shall indicate that it is a change version.

(2) In the event of any change in a tariff to the items pursuant to § 2 (4) or § 3 (1) Z 1 to 12, which does not affect already existing contracts, the document "Insurance Mathematics Basics" according to § 2 and the form according to § 3 to be completely resubmitted (new submission). In Item 8. in accordance with Section 2 (1) and in Item 1.1 in accordance with Section 2 (4), it must be stated that the document submitted is a re-submission and is to be used as the designation of any previous tariff. Previous tariffs are tariffs, which differ only in a few details from the proposed tariff. In item 1.1 of the outline in accordance with section 2 (4), the most important changes to the items in accordance with section 2 (4) are to be briefly presented in comparison with any previous tariffs.

(3) In the event of changes to the information in the form in accordance with § 3 (1) Z 13 to Z 19, only the form shall be retransmitted.

(4) If new funds are added to a fund-bound life insurance tariff, no change version as referred to in paragraph 1 or new submission pursuant to para. 2 shall be required, provided that no other changes are made pursuant to paragraph 1 or 2 .

Contents of the link posts

§ 5. (1) The contents of certain items pursuant to § 2 (1) shall be determined as follows:

1.

the technical name of the tariff (item 4.): to indicate the internal clear symbol of the tariff. The technical designation should be chosen in such a way that the tariff is clearly identifiable.

2.

Type of insurance (Item 5.): Here is one of the following categories:

a)

Mixed insurance and life insurance and pure life insurance;

b)

Non-life insurance, including credit insurance;

c)

Pension insurance;

d)

Premium-favoured future provision according to § § 108g to 108i of the Income Tax Act 1988-EStG 1988, BGBl. N ° 400/1988, as amended by the Federal Law BGBl. I No 118/2015 (PZV);

e)

Fund-linked life insurance (excluding PZV);

f)

Index-linked life insurance (without PZV);

g)

Capital investment-oriented life insurance;

h)

company collective insurance;

i)

Occupational disability insurance (including additional benefits and invalidity insurance);

j)

Insurance against serious diseases (gleam disease insurance);

k)

Care insurance;

l)

Other type of insurance.

Mixed products are to be shown under "other types of insurance".

3.

Resubmission or amendment version (Item 8.): This is to indicate whether this is the transmission of a change version according to § 4 para. 1 or a new submission pursuant to § 4 para. 2. In the case of a new submission, the designation of any previous tariffs should be used.

(2) The contents of certain items pursuant to § 2 (4) are determined as follows:

1.

Changes including their justification (Item 1.1.): Here, first of all, please indicate whether this is a change version according to § 4 paragraph 1 or a new submission according to § 4 paragraph 2. If there is a change version, it should also be mentioned in which items in accordance with § 2 para. 4 there are changes to the last presentation of the document "Versicherungsmathematical Grundlagen" (Insurance mathematical foundations). The amendments shall be explained in detail. In addition, it is necessary to specify exactly which existing contracts the change version applies to. If a new submission has been submitted in accordance with Section 4 (2), the designation of any previous tariffs must be listed and the most important changes to the items pursuant to § 2 (4) are to be briefly presented in comparison with any previous tariffs.

2.

Sales countries (item 1.2.): indicate in which countries the tariff is offered for sale.

3.

General and special conditions of insurance (Item 1.3.): This is a reference to indicate which insurance conditions are applied. This reference must be unique so that there is no confusion with other or earlier versions of the conditions. In addition, an Internet link can be provided under which currently the insurance conditions are visible. The insurance conditions may also be provided as an annex to the "Actuarial basis" document.

4.

Possible states of the contract (item 1.4.): indicate in which states the contract can be, such as premium payment, premium free (as a result of death), premium free (due to a lack of payment), etc.

5.

Possible tariff areas (item 1.5.): This is to indicate whether it is a single or group rate. If the product is intended for both individual and group distribution, all items in which the group differs from the individual tariff are to be explained. In the case of group rates, the tariff consequences of leaving the group for the policyholder must be disclosed.

6.

Verbal tariff description (item 1.6.): Here the tariff is verbally detailed to describe. In particular, it is necessary to identify which insurance benefits are due in the event of a loss of life and in the event of death, what benefits are provided for widows and orphan care, when the insurance case occurs and which other benefits are provided for. Insurance benefits are agreed upon (for example, invalidity benefits). Any possible guarantees to the policyholder (for example, the maximum level guarantee) shall be explained, in particular those bearing the form in which they are. In the case of mixed products within the meaning of section 5 (1) (2), it must be described which components are composed of these components. The principles of the capital investment shall also be disclosed in the fund-linked, in the index-bound life insurance and in the capital investment-oriented life insurance as well as in the premium-favored future provision according to § § 108g to 108i EStG 1988. include the investment strategy as well as the investment model for products with capital guarantee. In the case of company collective insurance, a possible follow-up obligation for the employer is to be explained in detail. The method of calculation (collectively or individually) of the survivors ' councils shall be indicated. The gross margin departments according to § 300 paragraph 1 VAG 2016, in which the tariff is conducted, shall be indicated.

7.

Main or additional tariff (Item 1.7.): It is necessary to indicate whether it is a main tariff or an additional tariff. In the case of additional tariffs, it should be stated, in connection with which main tariffs (including tariff designation), they can be concluded.

8.

Number of premiums (item 1.8.): The possible number of premium payments, for example monthly, quarterly, half-yearly, annual, one-off payments or one-time lag, shall be indicated. It is also to be found whether services and contributions are calculated on a pre-or post-schüssig basis.

9.

Number of pensioners (item 1.9.): In addition to the number of pensions, the minimum and maximum guarantee period is to be stated in the case of fares, which include a guarantee period.

10.

Other age and time limits (Item 2.12.): For example, an agreed minimum period of time or guarantee period for pension payments should be given.

11.

Minimum performance or Maximum performance (item 3.3. or 3.4.): Here is the minimum or Maximum performance must be indicated for insurance with and without medical examination.

12.

Profit participation (item 4.1.): Here you can find out whether the tariff is entitled to win and it is to be referred to the corresponding winning plan (stating the version number of the profit plan).

13.

Accounting Association (item 4.2.): partial stock of the total insurance cover for eligible life insurance contracts, which is formed in order to be able to carry out the profit sharing, and the insurance contracts. which, according to their structure, contribute to the profit in the same way.

14.

Use of profit (Item 4.3.): Here is how the profits are used, ie. Whether it is an interest-bearing collection, a bonus system, a fund-linked system, a reduction in premiums, a bonus round, a direct credit, a profit system with a final win or another system. Reference is made to the part of the profit plan in which this item is listed, indicating the version number of the profit plan.

15.

Profit components (item 4.4.): Here the profit components, for example interest rate gain, risk gain, cost gain, additional profit, to be enumerated. Reference is made to the part of the profit plan in which this item is listed, indicating the version number of the profit plan.

16.

Biometric basics (Item 5.1.): Here you can refer to all used die and pension boards (including used age shifts) as well as other biometric bases used (including source information, for example: Austria-AVÖ), which are used for the calculation of the premium and the reserve. Should modifications of the official biometric bases have been made, the procedure including a justification shall be described in detail. In addition, all mathematical formulas used are to be specified. Where gender-specific biometric bases are used, they shall be indicated. The death tables shall be attached to the document "Insurance mathematical bases" as an annex.

17.

Justification of the accounts (Item 5.4.): Here are the reasons for choosing the accounting bases in the items 5.1. to 5.3. to be listed in each case.

18.

Justification of different legal bases for premiums and reserves (Item 5.5.): Should there be differences in the accounting bases used for the premium and the reserve, the reasons for this should be justified. Furthermore, it should be explained exactly how the differences are financed (in the case of an insufficient premium) or how the profits are used (in the case of a premium too high).

19.

Premium age (Item 5.6.): Here the method is to be presented (including all formulas), according to which the age after which the premium is measured is calculated. It is also necessary to indicate whether a single payment is charged for certain age groups or for all policyholders.

20.

Pension payment phase (Item 5.7.): If retirement is planned or possible, it is necessary to indicate whether the accounting bases for the period of payment of the pension in items 5.1. to 5.3. are guaranteed. If, for the period of the pension payment, other accounting bases other than those in items 5.1. to 5.3. are guaranteed, they shall be indicated.

21.

Invoice costs (item 6.): All costs are to be found in items 6.1. to 6.5 inclusive of an indication of the tax base as numerical values (percentage or per mille indication at proportional costs). At all costs, you must indicate how often these are charged. The costs for individual insurance and those for group insurance are to be disclosed separately.

22.

Closing costs and Zillmersatz (Item 6.1.): Here you can specify how high the calculated closing costs and the Zillmersatz are. This information shall be made as a numerical value, indicating the basis of assessment. Furthermore, it is to be explained how often the closing costs are charged.

23.

Administrative costs (item 6.2.): indicate how the administrative costs are combined and how high they are. This information shall be made as a numerical value, indicating the basis of assessment. Furthermore, it is to be explained how often these costs are charged.

24.

Under-year surcharges (Item 6.3.): indicate whether and in which cases sub-year surcharges are to be offset. In addition, the amount of the surcharges shall be indicated by indicating the basis of assessment.

25.

Cancellation (Item 6.4.): Here is to indicate whether and in which cases a cancellation of cancellation is to be charged. In addition, the amount of the fee must be given by stating the tax base.

26.

Other costs and surcharges (item 6.5.): indicate whether, and in which cases, costs, surcharges or charges (for example, VAT charges, rewrite fees, police post-post fees, security surcharges or unit cost surcharges such as Surcharges for insurance without medical examination, Bagatell surcharge for low amounts of insurance, fund fees, fees for exchange of funds, delivery fee), which have not been included in items 6.1. to 6.4. In addition, the amount shall be indicated by reference to the assessment basis.

27.

Summary rebates (item 7.1.): indicate whether and in which cases summation rebates are granted. In addition, the amount shall be indicated by reference to the assessment basis.

28.

Premium discounts (item 7.2.): indicate whether and in which cases premium rebates are granted. In addition, the amount shall be indicated by reference to the assessment basis. In particular, rebates for group insurance contracts are to be found.

29.

Other rebates (Item 7.3.): indicate whether and in what cases discounts are granted which are not listed under items 7.1. and 7.2. In addition, the amount shall be indicated by reference to the assessment basis.

30.

Mathematical formulae (Item 8.): In items 8.1. to 8.15., the respective mathematical formulae, parameters, variables and designations must be given in accordance with the following explanations. These are all to be standardized to the insurance sum 1; in any case, it is to be stated how the individual values for any insured sum, which is to be referred to as "VS", are to be calculated. If different formulas are used for different validity ranges, then these are to be mentioned as well. In addition to each formula, the numerical value must be given in accordance with the following specifications. If parameters are used which are not defined below or if the parameters listed below are not applicable to the corresponding tariff, the smallest possible positive value for the calculation shall be used in each case. These values shall be listed separately under Item 8.1. and shall be justified.

The following values are to be used for the sample:

a)

Feed duration = min (30 years; maximum repleniation period according to item 2.11.);

b)

Entry age = min (35 years; maximum age according to item 2.2);

c)

Gender = male (if this rate is only intended for women: gender = female);

d)

The number of premium payments = annually in advance;

e)

Number of pensions = monthly pre-schüssig;

f)

Contract term = min (15 years for single one-way tariffs and risk insurance or for 30 years for all other tariffs; maximum contract term as defined in item 2.6);

g)

Insurance sum = min (EUR 100 000; maximum insured sum);

h)

Monthly pension payment = min (1 000 euro; maximum monthly pension);

i)

Premium payment duration = min (30 years; maximum number of premients according to item 2.8);

j)

Inventory duration = min (10 years; half maximum contract term according to item 2.6 (rounded up).

For the representation of the formulae, a customary mathematical representation is to be selected, and it is therefore not permissible in particular to represent the formulas in the form of a program code.

31.

Names and definitions (Item 8.2.): All variables, including those required for intermediate results, are to be specified including description (for example: X entry age, α Final costs, Living from age X according to sterboard, etc.).

32.

Probabilities, excretion orders and commutation figures (Item 8.3.): Here are all probabilities (for example, one-year survival probability of an x-year-old), excrement orders (for example:

the separation of an x-year-old active within a year) and the number of commutations (e.g. ), which shall also be used for interim results, including their definition and a brief description. For the definitions, only previously defined labels are to be used.

33.

Barvalues and Anwartschaften (Item 8.4.): Here, all the cash formulae (= single-net premium) and legal forms, including a definition and verbal description, used for interim results, for example, are to be stated here.

Life-long life-brente. Only previously defined designations are to be used.

34.

Zillmerpremium (item 8.6.): Here is the formula of the Zillmer premium. Only previously defined designations are to be used.

35.

Gross premium (Item 8.7.): The formula of the gross premium should be given here. Only previously defined designations are to be used.

36.

Required premium (Item 8.8.): This is the formula of the premium to be paid by the policyholder. In particular, all costs, surcharges, discounts, and insurance tax must be taken into account. Only previously defined designations are to be used.

37.

Premium and risk premium (Item 8.9.): In the case of tariffs where no closed mathematical formula of the gross premium can be given (for example in the case of fund and index-linked life insurance), the division of the premium into a spar is and risk premium in a suitable manner (for example, in percentage values).

38.

Reserves-Additional provisions (Item 8.10.4.): Here is the formula for additional provisions, for example for a provision of risk contributions for waiting periods, to be indicated. Only previously defined designations are to be used.

39.

Repurchase value and infestation amount (Item 8.11.): In items 8.11.1. to 8.11.3., the formulas for the buyback value and the inconspicuity amount for premium and premium-free contracts as well as for one-time lag are to be stated. Only previously defined designations are to be used. Any deductises should be explicitly dismissed.

40.

Payout amount (Item 8.14.): This is the amount paid to the policyholder at the end of the insurance policy or in the insurance case (for example, in case of death, invalidity, etc.). In the case of a loss of life, the payout amount shall be composed, for example, of the sum of the insured sum, the current profit share and the final profit share. The payout amount shall be indicated for both the insurance end and all possible insurance cases.

41.

Embedded options (Item 9.): An embedded option is a contractually or legally established right of the policyholder, at one or more future dates, if necessary certain for the exercise of the option the necessary conditions are fulfilled to intervene in the insurance contract in such a way that future payment flows, that is to say after the exercise of the embedded option, are fulfilled with regard to their points in time, amount or probability of occurrence change. In any case, it is necessary to indicate whether the tariff includes one of the following embedded options: pension choice with guaranteed pension, reassurance of marriage, death or birth of a child, nurse's option, Partial payout option, capital voting rights in deferred pension insurance, uptake option, extension option, retrieval option, fund change, index clause or increase of the insurance sum. In addition, all those embedded options are to be found, which represent an economic value. It must also be carried out whether and how these options are taken into account in the calculation of premiums and repayments. Each of the options contained and listed is briefly described.

42.

External guarantees (Item 11.): This is to indicate whether there are guarantees for the tariff from external guarantors (for example, a credit institution). The full name of the company and which parts are covered by the guarantee in the tariff and in which cases the guarantee shall be slaughtable shall be indicated. It shall also indicate whether the risk of default of the guarantor shall be borne by the insurance undertaking or by the policyholder.

(3) The contents of certain items in accordance with § 3 shall be determined as follows:

1.

the technical name of the tariff (item 3.): the internal clear symbol of the tariff should be indicated here. The technical designation should be chosen in such a way that the tariff is clearly identifiable.

2.

Insurance division (Item 4.): Here the term "life insurance" is added.

3.

Type of insurance (Item 5.): The type of insurance referred to in § 5 (1) Z 2 shall be disclosed.

4.

Number of premiums (item 6.): The possible number of premium payments, for example monthly, quarterly, half-yearly, annual, one-off payments or one-time lag, shall be indicated. It is also to be found whether services and contributions are calculated on a pre-or post-schüssig basis.

5.

Accounting Association (Item 8.): Here you can specify which account is assigned to the tariff according to § 5 paragraph 2 Z 13.

6.

Profit plan (item 9.): It is to be referred to the winning plan applicable to the respective tariff (indicating the version number of the profit plan).

7.

External guarantor (additional charge possible) (Item 10.): If the tariff is a guarantee of an external guarantor (for example a credit institution), the full name of the guarantor must be given here.

8.

Product name of the tariff (item 15.): All product names under which the tariff is offered are to be stated. The name of the product is to be understood as meaning the name under which a tariff or a combination of tariffs is offered to the policyholder.

9.

Main or additional tariff per product name (item 16.): It is to be stated whether this is a main tariff or an additional tariff. In the case of additional tariffs, it should be stated, in connection with which main tariffs (including tariff designation), they can be concluded.

Entry into force and transitional provisions

§ 6. (1) This Regulation shall enter into force 1. Jänner 2016 in force.

(2) In the case of actuarial principles, which shall be before 1. Since January 2016, the document "Insurance Mathematics Basics" is to be resubmitted only in the event of changes in accordance with § 4.

(3) For all fares in sale after 31 December 2015, the form is to be submitted in accordance with § 3 by no later than 30 June 2016.

Ettl Kumpfmüller