Life Insurance Profit Plan Regulation - Lv-Gpv

Original Language Title: Lebensversicherung Gewinnplanverordnung – LV-GPV

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295. Regulation of the financial market authority (FMA) on content and structure of the winning plan in life insurance (life insurance profit plan regulation - LV-GPV)

On the basis of § 92 1 of the insurance supervision law 2016 - VAG 2016, Federal Law Gazette I no. 34/2015, as last amended by the Federal Act Federal Law Gazette I no. 112/2015, is prescribed:

Scope of application

§ 1. For each rate of life insurance, which is eligible to win, 19 to 22 of the annex is part of the actuarial basis for life insurance in accordance with Z to the VAG 2016 a winning plan. If there are no significant differences in the profit-sharing, several tariffs can be grouped together in a common profit plan. Any differences between the tariffs are to be marked accordingly and to explain.

Form of delivery

§ 2. The winning plans are to submit to the FMA in standardised form electronically. The document is to convey document format (PDF) without limiting the functionality portable developed by the company of Adobe Systems.

Outline of the winning plans

Each profit plan has 3 (1) to include a title page, which is overwritten with "Winning plan", followed by a unique profit plan name. Also have the following data from the title page to emerge: 1. name, entity ID (legal entity identifier code, short: LEI-code), address, phone number and homepage of the insurance undertaking, 2. name, E-Mail address and telephone number of the responsible actuary, 3. name, E-Mail address and telephone number of the Deputy responsible actuary, 4. type of insurance that rates for which the profit plan is valid, 5 start of validity of the presented version of the winning plan, 6 version number of the winning plan.

(2) immediately after the title page contents has to follow, to lead are the headings of the Supreme category in accordance with paragraph 4, including the relevant page number.

(3) the pages in the respective part of the profit plan are with "page x of y" number, where "x" the current page and "y" referred to the total number of pages of the respective profit plan.

(4) in the profit plan, of the following items are separately and detail in the predetermined order to explain: 1. basics 1.1 Introduction 1.2. amendments including their rationale 1.3. verbal description of the profit system 1.4. billing associations 1.5. tariffs 1.6. depending on the premium payment 1.7. dependence on insurance and insurance period 1.8. other 2. timing of profit-participation 2.1. allocation cycle 2.2. profit leave 2.3. Miscellaneous 3. profit system 3.1. nature of the profit system 3.2. profit appropriation 3.2.1. verbal description 3.2.2. base 3.2.3. formulas 3.2.4 conclusion gains 3.2.5. procedure the Discovery 3.2.6. direct credits 3.3. profit participation index increases or other co-payments 3.4. Miscellaneous 4. calculations 4.1. accounting principles 4.2. names and formulas 4.3. allotment in the year of t 4.4. provision of the profit share 4.5. other calculations 5. income components 6 Services 6.1. experience 6.1.1 6.1.2 formula 6.1.3. determination of interim dividend description 6.2. death 6.2.1. verbal description 6.2.2 formula 6.2.3. determination of the interim dividend 6.3. repurchase 6.3.1 6.3.2 formula 6.3.3 establish of the interim profit share description 6.4 free position 6.4.1 6.4.2 formula 6.5 description.
Other services 6.5.1 6.5.2. formula 7 description other (5) gives not versions to individual items from para. 4 due to lack of relevance, so are to carry these items in the profit plan and to provide "eliminates" with the note. Eliminates a post together with all sub-items, so suffice it to lead them and to provide "eliminates" with the note.

(6) for the representation of formulas, a standard mathematical representation way is to choose. It is therefore especially not allowed to represent the formulas in the form of code.

Change the profit plan

§ 4 (1) at each change of the profit plan is a modification version of the winning plan to submit. All changes from the last filed income plan are to be marked. Item 1.2. pursuant to § 3 para 4 is to specify that the proposed profit plan is a modification version and when the previous version of this profit plan has been filed. In addition, it is to lead, in which items pursuant to § 3 para 4, there have been changes compared to the last submission of the corresponding profit plan. The changes are to give reasons in detail. The version number in accordance with § 3 paragraph 1 is Z 6 to change no. 3 the last template according to § 5 para 1.

(2) in the context of the template referred to in paragraph 1, a fully consolidated version (without change markings) is to present the corresponding profit plan.

Content of the outline items

(§ 5 (1) the content of certain items in accordance with article 3, paragraph 1 are defined as follows: 1 type of insurance (item 4): here, one of the following categories is to specify: a) mixed ER and death insurance and pure experience insurance;

b) pure death insurance including credit payment protection insurance;

(c) pension insurance;

(d) State-sponsored retirement provision in accordance with the § 108 g to 108i of the income tax Act 1988 - EStG 1988, Federal Law Gazette No. 400/1988, as amended by Federal Law Gazette I no. 118/2015 (PZV);

e) unit-linked life insurance (excluding PZV);

(f) Indexgebundene life insurance (excluding PZV);

g) Kapitalanlageorientierte life insurance;

h) occupational pension group insurance;

(i) disability insurance (including benefits and disability insurance);

(j) insurance against serious illnesses (dread disease insurance);

k) long-term care insurance;

(l) any other type of insurance.

It is an other type of insurance, it is so to characterize.

2. start of validity of the presented version (item 5): here is to specify when the proposed profit plan is valid. In particular that date is a version of amendment in accordance with article 4, paragraph 1 to specify, from which the changes are valid.

3. revision of the profit plan (item 6): here is the number of the current version of the proposed profit plan to lead. The version number is continuously to choose, so that each change version of a profit plan is provided with a higher version number.

(2) the content of certain items pursuant to § 3 para 4 is defined as follows: 1. amendments including their rationale (post 1.2): here are to implement all changes from the last submitted version of the profit plan, as well as its version number and to explain in detail.

2. settlement associations (item 1.4.): here are all settlement associations including any further disaggregations of the profit plan to lead. A settlement is part of the stock of the entire insurance portfolio for qualifying life insurance contracts which is made causing suit to make the profit-sharing, and summarizes the insurance contracts that contribute to the profit according to their structure in the same way.           

3. tariffs (items 1.5.): Here are all tariffs for the corresponding profit plan is to lead. The following information for each tariff are to specify tabular: a) technical description of the tariff;

b) type of insurance;

(c) biometric basics;

(d) guaranteed rate;

e) bonus interest rate;

(f) sales start.

Furthermore, is to determine whether the rates of life insurance profit-sharing regulation LV-GBV, Federal Law Gazette II No. 292/2015, in its up-to-date version, subject to.

4. depending on the premium payment (item 1.6.): here is to specify whether and how the premium payment will affect the profit participation.

5. depending on insurance and insurance period (item 1.7.): here is to specify whether and how the profit-sharing depends on the start of the insurance in the calendar year. In addition is detailed to explain how different terms affect the individual components of the revenue share.

6 allocation cycle (item 2.1.): here the allocation cycle is to explain the length of each phase is designed to specify in detail. In particular, the designation of the individual phases is to lead. At every stage, to specify whether it ends to a financial or insurance date is also. Each phase is also the legal and economic consequence to lead.

7 profit maternity leave (item 2.2): here is to lead when there is an initial declaration or assignment of profit-participation. If there is different unpaid for different profit shares, this should be to lead and to establish. In particular, there is a distinction that depends on the mode of premium payment, to lead.

8. type of the profit system (items 3.1.): here is to lead, what kind of profit system it is, for example, a mechanical or a natural profit system. The profit system is to describe in detail and steps by the emergence of profit are up to the appropriation to set.


Appropriation of profit (item 3.2.): Here is to lead, how to use the profits, i.e. whether it is an interest-bearing collection, a bonus system, a unit-linked system, a reduction of premiums, a bonus pension, a direct credit, a winning system with final prizes, or other system. The system is to explain verbally and are the basis of assessment, as well as the used mathematical formulas to specify. Bonus pensions shall be indicated in particular the formula for the bonus section and for the amount of the pension and it is to mention how each pension component (master and bonus pension) for a boost evolve through valorisation. This is to represent by using mathematical formulas and to explain verbally. Furthermore is to indicate the development of pension changes the interest rate, i.e. it is to lead, how to change the bonus pension if the bonus rate is changed, especially when a reduction of the profit rate under the interest rate of the bonus. If policyholders between different profit uses can choose, this is to lead.

10. accounting basics (item 4.1.): here are the necessary for the calculation of the profit shares accounting principles such as rate, bonus interest rate or biometric basics to lead.

11 names and formulas (item 4.2.): Here are all variables, probabilities, separation systems, commutation numbers, cash values, entitlements, to specify the weighting factors and other formulas including description and definition will be used for the calculation of the profit-sharing.

12 allocation in the year t (item 4.3.): here is the formula for the amount of the dividend will be credited to the respective contract insurance year t (for financial or insurance date), to lead.

13 provision of dividend (item 4.4.): here is the formula of the provision of the profit share of a contract at the balance sheet date of the insurance year t to lead.

14. income components (item 5): all income components (for example, interest income, cost share in profits, risk profit share, additional profit share, final dividend, etc.) as its own subsection (for example, 5.1 interest dividend, 5.2. cost profit share, etc.) here to lead. For each of these income components are a verbal description of the basis of assessment, to lead the formulas and the procedure of the determination in the form of a further subdivision. When the final dividend is also to lead, whether the final dividend is higher or lower than twice of the last current dividend.

15 services (item 6): All services and claims, arising from the profit-sharing system to lead here. In particular, it is to explain what services extent to which are guaranteed and can again be reduced by negative developments.

Entry into force and transitional provisions

6. (1) effective this regulation with 1 January 2016.

(2) profit plans that were submitted before January 1, 2016, are only changes pursuant to § 4 new to present.

Ettl Kumpf Müller