Life Insurance Profit Plan Regulation - Lv-Gpv

Original Language Title: Lebensversicherung Gewinnplanverordnung – LV-GPV

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295. Regulation of the Financial Market Supervisory Authority (FMA) on the content and structure of the profit plan in life assurance (Life Insurance Profit Planning Regulation-LV-GPV)

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:

Scope

§ 1. For each life insurance tariff that is eligible for profit, a winning plan shall be drawn up as part of the actuarial basis for life assurance in accordance with Z 19 to 22 of Annex A to the VAG 2016. If there are no significant differences in profit sharing, several tariffs may be combined in a common lotting plan. Any differences between the tariffs should be identified and explained accordingly.

Form of transmission

§ 2. The winning plans shall be submitted to the FMA in a standardised form by electronic means. The document is to be transmitted in the Portable Document Format (PDF) developed by the company Adobe Systems without limitation of the functionality.

Breakdown of profit plans

§ 3. (1) Each profit plan shall contain a title page, which is overwritten with "profit plan", followed by a unique profit-plan title. In addition, the following data have to be produced from the title page:

1.

Title, Legal Entity Identifier 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 for the actuary,

4.

the type of insurance of those tariffs for which the winning plan is valid,

5.

the date of validity of the presented version of the winning plan;

6.

Version number of the winning plan.

(2) Immediately after the title page, a table of contents must be followed, in which the headings of the top category according to paragraph 4, including the respective page number, are to be listed.

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

(4) In the winning plan, the following items shall be explained in detail in the following order and in the specified order:

1.

Basics

1.1.

Introduction

1.2.

Amendments including their justification

1.3.

Verbal description of the profit system

1.4.

Accounting Associations

1.5.

Tariffs

1.6.

Dependence on the premium number

1.7.

Dependence on insurance start and insurance duration

1.8.

Other business

2.

Time-lapse of profit-sharing

2.1.

Dispatch Cycle

2.2.

Profit carency

2.3.

Other business

3.

Profit System

3.1.

Type of profit system

3.2.

Profit Usage

3.2.1.

Verbal Description

3.2.2.

Basis of measurement

3.2.3.

Formulas

3.2.4.

Final profits

3.2.5.

Procedure for determining

3.2.6.

Direct credits

3.3.

Profit sharing in index increases or other payments

3.4.

Other business

4.

Calculations

4.1.

Accounting principles

4.2.

Labels and Formulas

4.3.

Allocation in year t

4.4.

Cover return of the threaded part

4.5.

Other calculations

5.

Profit Components

6.

Benefits

6.1.

Experience

6.1.1.

Verbal Description

6.1.2.

Formula

6.1.3.

Determination of the under-year profit share

6.2.

Ablive

6.2.1.

Verbal Description

6.2.2.

Formula

6.2.3.

Determination of the under-year profit share

6.3.

Buyback

6.3.1.

Verbal Description

6.3.2.

Formula

6.3.3.

Determination of the under-year profit share

6.4.

Contribution exemption

6.4.1.

Verbal Description

6.4.2.

Formula

6.5.

Other benefits

6.5.1.

Verbal Description

6.5.2.

Formula

7.

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 included in the winning plan and shall be marked "omitted". If a post together with all the sub-items is omitted, it is sufficient to lead the item and to bear the words "omitted".

(6) A standard mathematical representation is to be chosen for the presentation of the formulas. In particular, it is not permissible to represent the formulas in the form of a program code.

Modification of the profit plan

§ 4. (1) Any modification of the winning plan shall be subject to a revision of the profit plan. All changes to the most recently submitted earnings plan must be marked. In item 1.2. in accordance with Section 3 (4), it must be stated that the proposed profit plan is a change version and when the previous version of this prize plan has been submitted. In addition, it should be mentioned in which items in accordance with Section 3 (4) there have been changes in relation to the last presentation of the corresponding profit plan. The amendments shall be explained in detail. The version number according to § 3 paragraph 1 Z 6 is to be changed in relation to the last submission in accordance with § 5 paragraph 1 Z 3.

(2) Within the framework of the submission according to paragraph 1, a fully consolidated version (without change marks) of the corresponding profit plan shall also be submitted.

Contents of the link posts

§ 5. (1) The contents of certain items in accordance with § 3 (1) shall be determined as follows:

1.

Type of insurance (Item 4.): 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.

If it is a different type of insurance, it is to be characterized.

2.

The date of validity of the presented version (item 5.): Here it is to be found, from when the submitted profit plan is valid. In particular, in the case of a change version according to § 4 (1), the date from which the changes are valid shall be indicated.

3.

Version number of the winning plan (item 6.): Here the number of the current version of the winning plan is to be found. The version number must be continuously selected so that each modification version of a winning plan is provided with a higher version number.

(2) The contents of certain items pursuant to § 3 (4) are determined as follows:

1.

Changes including their justification (Item 1.2.): Here are all changes to the most recently filed version of the winning plan as well as its version number to be led and explained in detail.

2.

Accounting associations (Item 1.4.): All accounting associations, including any further subdivisions of the profit plan, are to be found here. An accounting association is a partial stock of the total insurance cover for life insurance contracts which are established in order to be able to carry out the profit sharing in a fair way and the insurance contracts which, according to their structure, contribute to the profit in the same way.

3.

Tariffs (Item 1.5.): Here, all tariffs for which the corresponding winning plan applies are to be found. The following information for each tariff should be given in tabular form:

a)

the technical name of the tariff;

b)

the type of insurance;

c)

biometric bases;

d)

guaranteed invoice rates;

e)

Bonus interest rate;

f)

Start of sales.

Furthermore, it is necessary to specify whether the rates of the Life Insurance-Profit Participation Ordinance-LV-GBV, BGBl. II No 292/2015, as amended.

4.

Dependence on the number of premiums (Item 1.6.): Here it is to be found whether and how the number of premiums has an impact on the profit sharing.

5.

Dependence on the start of insurance and the duration of insurance (Item 1.7.): Here is to be found whether and how the profit-sharing depends on the insurance start in the calendar year. Furthermore, it is necessary to explain in detail how different maturities affect the individual components of the profit sharing.

6.

Allocation cycle (Item 2.1.): Here the allocation cycle is to be explained in detail, and the length of each phase should be specified. In particular, the designation of the individual phases is to be carried out. Furthermore, at each stage, it is necessary to indicate whether it ends at a balance sheet or insurance date. The legal and economic consequence of each phase is also to be found.

7.

Competition (Item 2.2.): Here is to be found when there is a first-time declaration or allocation of the profit share. If there are different carences for different parts of the profit, then these are to be found and justified. In particular, a distinction which depends on the number of premiums is to be used.

8.

Type of profit system (Item 3.1.): This is where the type of profit system is concerned, for example a mechanical or a natural profit system. The profit system is to be described in detail and the steps from the profit creation to the profit use are to be determined.

9.

Use of profit (Item 3.2.): 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. The respective system shall be verbally explained and the basis of assessment and the mathematical formulae used shall be indicated. The bonus features shall specify in particular the formula for the credited part and the pension level, and it shall be indicated how the individual pension components (tribe and bonus rounds) develop in the event of an increase by means of valorisation. This is to be represented by mathematical formulas and verbally explained. In addition, the development of the pension should be indicated if the rate of interest is changed, ie. it is to be used as to how the bonus rate changes when the bonus interest rate is changed, in particular if the rate is lowered below the bonus interest rate. If policyholders can choose between different profit uses, this is to be done.

10.

Accounting principles (Item 4.1.): Here the necessary accounting bases for the calculation of the profit share are to be found, such as, for example, invoice rates, bonus rate or biometric bases.

11.

Designations and Formulas (Item 4.2.): To specify all variables, probabilities, excretory orders, commutation figures, cash values, antwartships, weighting factors and other formulas, including description and definition, for the determination of profit sharing is used.

12.

Allocation in year t (Item 4.3.): Here is the formula for the amount of the profit share which is credited in the insurance year t (at the balance sheet or insurance date) to the corresponding contract.

13.

Cover provision of the profit share (item 4.4.): Here is the formula of the cover return of the profit share of a contract to the balance sheet date of the insurance year t.

14.

Profit components (item 5.): Here are all profit components (e.g. interest rate share, cost profit share, risk profit share, additional profit share, final profit share, etc.) as a separate sub-section (for example 5.1. interest rate share, 5.2. Cost of profit, etc.) shall be used. For each of these profit components, a verbal description, the basis of assessment, the formulas and the way of determining the determination in the form of a further breakdown are to be found. In the case of the final profit share, it is also necessary to indicate whether the final profit share is higher or lower than twice the last current profit share.

15.

Benefits (Item 6.): Here, all services and benefits arising from the profit-sharing scheme are to be found. In particular, it should be explained which services are guaranteed to what extent or to what extent. can be reduced again by negative future developments.

Entry into force and transitional provisions

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

(2) Profit plans that are before the 1. January 2016, will be resubmitted only when changes are made in accordance with § 4.

Ettl Kumpfmüller