Life Insurance Profit-Sharing Regulation Lv-Gbv

Original Language Title: Lebensversicherung-Gewinnbeteiligungsverordnung – LV-GBV

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292. Ordinance of the Financial Market Supervisory Authority (FMA) on profit-sharing in life assurance (Life Insurance-profit-sharing regulation-LV-GBV)

Due to § 92 (4) of the Insurance Supervision Act-VAG 2016, BGBl. I n ° 34/2015, as last amended by the Federal Act BGBl. I No 112/2015, shall be arranged:

Scope

§ 1. This Regulation applies to non-profit life insurance contracts for direct business, for which a separate division of the cover stock according to § 300 (1) Z 1 (classical life insurance), Z 2 (Occupational Collective Insurance) or Z 5 (capital investment-oriented life insurance) VAG 2016 is established.

Definitions

§ 2. For the purposes of this Regulation, the following definitions shall apply:

1.

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

2.

Current profits: profits directly or from the provision for performance-based premium restitution or Profit participation of the policyholders (§ 144 para. 3 Item D.V. VAG 2016) and which, after they have been allocated, are either:

a)

are listed as part of the individual cover provision and are at least nominally guaranteed, or

b)

as a fund-linked, index-linked or capital-based life insurance policy, or

c)

are converted into a contractually defined insurance benefit or premium adjustment; or

d)

is paid to the policyholder.

3.

Final profits: profits directly or from the provision for performance-dependent premium restitution or Profit participation of the policyholders (Section 144 (3) Item D.V. VAG 2016) and which only justify the reason, but not the amount, according to a claim of the policyholder from the profit sharing.

4.

Final profit funds: final profits in the provision for performance-dependent premium restitution or Profit participation of the policyholders (§ 144 para. 3 Item D.V. VAG 2016) and also fulfil the other requirements of § 5.

5.

Free profits: profits made as a free part of the provision for performance-based premium restitution or Profit participation of the policyholders (Section 144 (3) Item D.V. VAG 2016), for which no definition or declaration has yet been made.

Minimum profit sharing

§ 3. (1) The expenditure incurred in the provision of the provision for the provision for the refund of premiums dependent on the performance of the premium or Profit participation of policyholders (Section 146 (4) (III.8)). VAG 2016), plus any direct direct credits, shall be at least 85% of the minimum basis of measurement in accordance with § 4 in each financial year.

(2) Overdose from previous financial years may be credited to the minimum profit share referred to in paragraph 1. The amount of the eligible amount shall be as follows: the reduction shall be 10% of the overdose for each financial year following the overdose; furthermore, all the accounts already made from previous years shall be: , Overdoses are to be calculated in the chronological order, starting from the elders, the expenses on which they are based up to the level of their eligibility.

Minimum basis of assessment

§ 4. (1) The minimum basis of assessment shall be determined from the following items and shall be determined at each balance sheet date:

1.

+

Defined premiums (Section 146 (4) (III.1)). VAG 2016);

2.

+

Income from investments and interest income (Section 146 (5), Item IV.2. VAG 2016);

3.

-

Expenses for capital investments and interest expenses (Section 146 (5) Item IV.3. VAG 2016);

4.

+

Other technical income (Section 146 (4) (III.4)). VAG 2016);

5.

-

Expenses for insurance cases (Section 146 (4) (III.5)). VAG 2016);

6.

-

Increase in technical provisions (Section 146 (4) (III.6)). VAG 2016) minus the post according to Z 15;

7.

+

Reduction of technical provisions (Section 146 (4) (III.7)). VAG 2016) minus the post according to Z 16;

8.

-

Expenses for the insurance business (Section 146 (4) (III.9)). VAG 2016);

9.

-

Other technical expenses (Section 146 (4) (III.11)). VAG 2016);

10.

+

Other non-insurance-related income (Section 146 (5), item IV.5. VAG 2016);

11.

-

Other non-technical expenses (§ 146 (5) Item IV.6. VAG 2016);

12.

-

Taxes on income and income (Section 146 (5) (IV.11)). VAG 2016);

13.

+

Termination of the risk reduction according to § 143 VAG 2016 (Section 146 (5) Item IV.13.a. VAG 2016);

14.

-

Allocation to the risk reduction according to § 143 VAG 2016 (§ 146 (5) Item IV.14.a. VAG 2016);

15.

-

Expenditure on the doping of the additional interest repayment as referred to in paragraph 3 (3) (3);

16.

+

Income from the disbanding of the interest rate supplementary provision according to § 3 of the insurance companies-Maximum interest rate regulation-VU-HZV, BGBl. II No 292/2015.

(2) The amount of the minimum assessment basis within the meaning of section 92 (4) VAG 2016 shall be the maximum from the sum of the items referred to in paragraphs 1 and 1 to 16 and the item in accordance with paragraph 1 Z 16.

(3) In the calculation referred to in paragraphs 1 and 2, account shall be taken of:

1.

the items referred to in points (1) (2) and (Z) (3) in the ratio of the average cover requirement of the financial year of the life insurance contracts in accordance with § 1, minus the percentage of the interest rate supplementary provision not financed in accordance with Z 3, to the median total capital investments (Section 144 (2) Item B. VAG 2016) and current assets in the case of credit institutions, cheques and cash balances (Section 144 (2) Item F.II. VAG 2016) of the financial year;

2.

all other items referred to in paragraph 1 only in so far as they are accounted for by life insurance contracts in accordance with § 1; income and expenses which are not directly attributable shall be as causal as possible with the help of appropriate keys to the .

3.

In the case of the doping of the additional interest repayment in accordance with § 3 of the VU-HZV, an amount which is not higher than the minimum of 0.3% of the mean cover requirement of the Financial year of the life insurance contracts in accordance with § 1 and half of the difference between the target values of the interest rate supplementary provision according to § 3 VU-HZV from the current balance sheet date to the previous balance sheet date. The amount of the post referred to in paragraph 1 Z 15 shall be limited to the sum of the items referred to in paragraph 1 (1) (1) to (14).

(4) The calculation referred to in paragraphs 1 and 2 shall not be taken into account:

1.

Expenses and income arising from the doping or liquidation of the interest-rate supplementary provision in accordance with § 3 of the VU-HZV with the exception of the expenses in accordance with Section 3 (3) (3);

2.

Taxes on income and income (Section 146 (5) (IV.11)). VAG 2016), insofar as they are attributable to the doping or liquidation of the interest rate supplementary provision in accordance with § 3 VU-HZV;

3.

the supply or dissolution of deferred taxes.

(5) Where the amount of the costs charged to the policyholder by the insurance undertaking for the conclusion of the contract and the management of the insurance contract is contractually agreed with the policyholder, then the amount of the costs incurred by the insurance undertaking shall be contractually agreed upon Insurance contracts the parts of the items in para. 1, which account for the costs calculated on the basis of the business plan and the expenses incurred in accordance with the contracts for the costs, are not used in the determination of the minimum basis of assessment. -

Final Profit Fund

§ 5. (1) In the event of a final gain in the provision for performance-dependent premium restitution or Profit participation of the policyholders (Section 144 (3) Item D. V. VAG 2016), they are to be shown as final profit funds.

(2) The shares from the closing profit fund shall be individually assigned to the individual contracts.

(3) A termination of the final profit fund is at most equal to the individually allocated share and only against an individual ongoing profit-sharing of the contract, at the end of the contract or in the case of a state of emergency pursuant to § 92 (5) VAG 2016 allowed.

(4) In the case of contracts in which final profits are held as final profit funds, the annual amounts for the final profit fund shall not exceed the declared current profits.

(5) Unless otherwise agreed in the contract, the closing profit fund shall be included in the calculation of the resale value in the case of buyback, whereby a repurchase price shall be applied at the maximum in the same ratio as in the case of the cover provision. may.

Profit sharing

§ 6. (1) In accordance with the winning plan according to § 1 of the Life Insurance Profit Planning Ordinance-LV-GPV, BGBl. II No. 295/2015, and taking into account the opinion of the responsible actuary in accordance with § 116 para. 1 Z 2 VAG 2016, the Executive Board or the Board of Directors and the Managing Directors, in the context of the annual financial statements, determine the level of profit-sharing.

(2) The profits are to be divided in a fair and proportionate way, taking account of accounting associations in respect of the life insurance contracts entitled to profit, by means of declaration or determination. Objectively justified differentiation of the level of profit-sharing is permissible; in any case, such differentiations are necessary if the ominy of a differentiation to a systematic and one-sided burden on partial stocks with the risks of other sub-stocks. Differentiation is permitted, in particular, with regard to different guarantees and options.

(3) Declarations which have been declared but which have not yet been allocated shall be allocated within two years from the balance sheet date to which the declaration relates to the individual cover reserve. Fixed closing gains, provided that they are in the reserve for performance-dependent premium restitution or Profit participation of policyholders (§ 144. 3, Item D. V. VAG 2016), the final profit fund must be allocated no later than the next balance sheet date.

(4) Where, from the technical point of view, it is to be expected that final profits do not exceed twice the final running-in-profit allocation, the formation of a final profit fund or an additional provision in the Cover return is not possible.

Entry into force and transitional provisions

§ 7. (1) This Regulation shall enter into force 1. January 2016 in force and is to be applied for the first time to financial years beginning after 31 December 2015. On business years before the 1. January 2016 ends, are the provisions of the regulation on profit sharing in life insurance (profit sharing ordinance-GBVVU), BGBl. II No 398/2006, as amended by the BGBl Regulation. II No 397/2013.

(2) Insofar as expenses to form the provision of the reserve pursuant to § 3 of the maximum interest rate ordinance, BGBl. N ° 70/1995, as amended by the BGBl Regulation. II No 354/2012, as withdrawal items have been taken into consideration, income from the liquidation of such a provision must be taken into account in the form of a settlement post for the basis of assessment within the meaning of Section 92 (4) of the VAG 2016. The dissolution shall take place within ten years, with the cancellation of at least 10% of the provision made on 31 December 2012.

Ettl Kumpfmüller