Life Insurance Profit-Sharing Regulation Lv-Gbv

Original Language Title: Lebensversicherung-Gewinnbeteiligungsverordnung – LV-GBV

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.
292 regulation of the financial market authority (FMA) on the revenue share in the life insurance (life insurance profit-sharing regulation LV-GBV)

On the basis of § 92 para 4 of the insurance supervision Act - VAG 2016, Federal Law Gazette I no. 34/2015, as last amended by Federal Law Gazette I no. 112/2015, is prescribed:

Scope of application

§ 1. This regulation applies to qualifying life insurance contracts of the direct business, for which a separate Department of the cover pool in accordance with article 300, paragraph 1 is VAG 2016 Z 1 (classical life insurance), no. 2 (occupational pension group insurance) or Z 5 (investment-oriented life assurance).

Definitions

§ 2. For the purposes of this regulation, it means: 1 billing Association: 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.

2. ongoing profits: profits, the directly or from the provision for performance-related premium refund or profit participation (article 144, paragraph 3 post D.V.. VAG 2016) be declared and the, after they have been allocated either a) carried out as part of the individual premium reserve and are at least nominally guaranteed or b) be carried as a unit-linked and index-linked investment-oriented life assurance or c) converted into a contractually defined insurance benefits or premium adjustment or d) be paid to the policyholder.

3. final profits: profits, the directly or from the provision for performance-related premium refund or profit participation (article 144, paragraph 3 Item D.V.. VAG 2016) be set and which justify a claim of the policyholder from the profit-sharing only basically after, but not the amount.

4. end income fund: final profits, in the provision for performance-related premium refund or profit participation (article 144, paragraph 3 post D.V.. VAG 2016) to be displayed and fulfil the other requirements of section 5.

5 free prizes: win as a free part of the provision for performance-related premium refund or profit participation (article 144, paragraph 3 post D.V.. VAG 2016) be carried for that still no definition or declaration is done.

Minimum profit-sharing

3. (1) the expenses for the funding of the provision for performance-related premium refund or profit participation (§ 146 paragraph 4 item III. 8.) VAG 2016) plus any direct credits at least 85% of the minimum tax base in accordance with § 4 have in each fiscal year to be.

(2) on the minimum profit participation referred to in paragraph 1 above allocations may be credited from previous financial years. The eligible amount arises from the following abbreviated excess funding: the reduction has to be 10% of the excess funding; for each fiscal year following on the excess contribution all already existing credits from previous years shall also be deducted. Excess allocations are in the chronological order, starting from the oldest to be the underlying expenses up to the amount of their eligibility.

Minimum base

4. (1) the minimum tax base shall be determined from the following post and at each balance sheet date to determine:

 



1.



+



Deferred premiums (§ 146 paragraph 4 item III. 1.) VAG 2016);



2.



+



Income from investments and interest income (§ 146 paragraph 5 item IV. 2.) VAG 2016);



3.



-



Expenses for capital investments and interest expenses (§ 146 paragraph 5 item IV. 3.) VAG 2016);



4.



+



Other technical income (§ 146 paragraph 4 item III. 4.) VAG 2016);



5.



-



Expenses of insurance claims (§ 146 paragraph 4 item III. 5.) VAG 2016);



6.



-



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



7.



+



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



8.



-



Expenditures on insurance business (§ 146 paragraph 4 item III. 9.) VAG 2016);



9.



-



Other technical expenses (§ 146 paragraph 4 item III. 11.) VAG 2016);



10.



+



Other non-underwriting income (§ 146 paragraph 5 item IV. 5.) VAG 2016);



11.



-



Other non-underwriting expenses (§ 146 paragraph 5 item IV. 6.) VAG 2016);



12.



-



Taxes on income and income (§ 146 paragraph 5 item IV. 11.) VAG 2016);



13.



+



Resolution of the risk reserve in accordance with § 143 VAG 2016 (§ 146 paragraph 5 item IV.13.a.) VAG 2016);



14.



-



Allocation of the risk reserve in accordance with § 143 VAG 2016 (§ 146 paragraph 5 item IV.14.a.) VAG 2016);



15.



-



Expenses for the allocation of additional default of interest pursuant to par. 3 No. 3;



16.



+



Income from the reversal of the interest additional provision pursuant to article 3 of the insurers maximum interest rate regulation VU cardiac output, Federal Law Gazette II No. 292/2015.

 

(2) the amount of the minimum basis of assessment within the meaning of § 92 4 VAG 2016 is the maximum of the total of the items referred to in paragraph 1 Z 1 to 16 and the items referred to in paragraph 1 Z 16.

(3) in the calculation referred to in paragraphs 1 and 2 are taken into account: 1. the items referred to in paragraph 1 Z 2 and no. 3 in the ratio of the Middle cover requirement of the business year of life insurance contracts in accordance with § 1 minus the funded pursuant to no. 3 additional default of interest to the average total investment (article 144, paragraph 2 item b VAG 2016) and current balances with banks , Cheques and cash (article 144, paragraph 2 item F.II. VAG 2016) of the fiscal year;

2. all other items referred to in paragraph 1 only to the extent, as they life insurance contracts in accordance with § 1 accounts for; Income and expenses that are not directly attributable, are as causing to divide using the appropriate key on this.

3 for the allocation of interest supplementary provision pursuant to article 3 an amount may be deducted in determining the minimum basis of assessment referred to in paragraph 1 Z 15 VU cardiac output, which is not higher than the minimum of 0.3% of the Middle cover requirement of the business year of life insurance contracts in accordance with article 1 and half of the difference of the values of interest supplementary provision pursuant to article 3 VU cardiac output from the current balance sheet date at the previous balance sheet date. The amount of the item referred to in paragraph 1 is limited upwards with the total of the items referred to in paragraph 1 Z 15 Z 1 to 14.

(4) in the calculation referred to in paragraphs 1 and 2 are not taken into account: 1. income and expenses from the funding or interest additional provision pursuant to article 3 with VU-HZV exception of expenses according to para 3 Z 3.

2. taxes on income and income (§ 146 paragraph 5 item IV. 11.) VAG 2016), insofar as it omitted VU cardiac output on the allocation or release of interest supplementary provision pursuant to article 3;

3. the drawer or resolution of deferred taxes.

(5) if the height of the insurance undertaking for the conclusion of the contract and the management of the insurance contract the policyholder in court the costs with the policyholder then the parts of the items in paragraph 1, which accounts for, on the scheduled business offset costs and expenses causing just the contracts related to are contracted, for these insurance contracts do not apply in determining the minimum tax base.

Final profit fund

5. (1) if final winnings in the provision for performance-related premium refund or profit participation (article 144, paragraph 3 post D. V. VAG 2016) run, are to identify it as a final prize fund.

(2) the shares from the final profit funds have the individual contracts to be individually assignable.

(3) a resolution of the final profit fund § 92 para 5 is at most of the individually assigned amount and only against individual ongoing profit-sharing of the Treaty at the end of the contract or in the case of an emergency according to VAG 2016 allowed.

(4) for contracts, which run final profits as a final prize fund, the annual fixed amounts for the final profit fund must not exceed declared ongoing profits.

(5) if the final profit fund to call into the calculation of the redemption value to include, with a purchase discount maximum must be in the same proportion as in the provision of application is contract unless otherwise agreed.

Profit-sharing

Section 6 (1) in accordance with the profit plan pursuant to section 1 of the life insurance profit plan regulation - LV-GPV, Federal Law Gazette II No. 295/2015, and taking into account the opinion of the responsible actuary in accordance with article 116, paragraph 1 VAG 2016 the Board of directors or the Board of Directors and the managing directors set the amount of the profit-sharing Z 2 within the framework of the annual accounts.


(2) the winnings are causing fair and reasonable share taking into account of accounting associations on the winning life insurance contracts by declaration or definition. Objectively justified differentiation of the amount of profit-participation are permitted; such differentiations are required anyway if the omission of a differentiation would lead to a systematic and unilateral load of stocks of part of with the risks of other part stocks. A differentiation is permissible in particular in terms of different guarantees and options.

(3) declared, but not yet allocated to current profits are within two years from the balance sheet date, to which the Declaration refers to allocate the individual coverage provision. Set final winnings, if in the provision for performance-related premium refund or profit participation (§ 144. paragraph 3 Item D. V. VAG 2016) run, are to assign the final profit fund no later than on the next balance sheet date.

(4) insofar as is to be expected from a technical perspective, that final profits do not exceed twice of the last ongoing profit allocation, forming a final prize fund or an additional provision in the premium reserve can be avoided.

Entry into force and transitional provisions

§ 7 (1) this regulation with 1 January 2016 in force and is to apply for the first time to fiscal years beginning after December 31, 2015. On fiscal years ending prior to January 1, 2016, are the provisions of the regulation on the profit participation in life insurance (employee profit sharing regulation - GBVVU), Federal Law Gazette II No. 398/2006, amended by regulation BGBl. No. 397/2013, to apply II.

(2) unless expenses to the provision under section 3 of the maximum interest rate regulation, Federal Law Gazette No. 70/1995, in the version of regulation Federal Law Gazette II No. 354/2012, as deductions were considered accordingly to take into account income from the provision of such as adding items to the basis of assessment within the meaning of § 92 4 VAG 2016. The resolution has to be carried out each year at least 10% of the provision to the 31 December 2012 to resolve are within ten years.

Ettl Kumpf Müller