Notice on the base interest rate for life insurance company 1)
Under section 1, paragraph 3, article 21, paragraph 6, and paragraph 373 (4) of the financial business Act, see. lovbekendtgørelse nr. 376 of 22. May 2008, as amended by section 1 of Act No. 517 of 17. June 2008, fixed:
The scope of the
§ 1. This Ordinance shall apply to the assurance referred to in article 6. However, paragraph 3.
(2). By insurance companies for the purposes of this Ordinance the life insurance companies and lateral pension funds as well as branches in this country of companies authorised to life in a country outside the European Union, which the community has not concluded an agreement with in the financial field, where the branch has been authorised by the FSA.
(3). This Ordinance shall not apply to insurance contracts, where the basis for the calculation of insurance premiums, surrender values and paid-up policy services includes the ability to split the paid-up insurance premium in part for which earned a guaranteed pension and a part, as brought to the attention of either the collective bonus potential or potential bonus on paid-up policy benefits, and the Foundation as a whole is based on reassuring pre-requisites.
Basic interest rate
§ 2. At the conclusion of an insurance contract or amendment thereof, the or the interest rates (base rate) taken into account for the calculation of premiums, selected with care.
(2). Base interest rates must not exceed the maximum rate of interest is determined in accordance with paragraph 3 or 4.
(3). The maximum interest rate for insurance contracts concluded in Danish kroner or in any other currency, fixed at 2% per annum, including a guaranteed cost-and security surcharges that may be contained in base interest rates, see. However, paragraph 4.
(4). The Danish financial supervisory authority may, in respect of insurance contracts concluded in currency other than Danish kroner, fix another maximum basic interest rate in accordance with article 20 of the European Parliament and Council Directive 2002/83/EC concerning life assurance.
§ 3. An insurance company shall not enter into an insurance contract in which the company for a period that is longer than 1 year, refrain from changing base interest rates for future premium increases, bonus tilskrivninger, etc.
Exceptions and derogations
§ 4. The rules laid down in article 2, paragraphs 2 to 4, shall not apply in the following cases:
1) amendment of an insurance contract, if the value of future premiums after deduction of labour market contribution not be increased.
2) premium increase for an insurance contract concluded in an employment relationship, in so far as the increase reflects an earlier Prize reduction and is caused by that insured person after having been part-time employed or unemployed get employment or get employment again.
3) resumption of premium payment in an insurance agreement after it has been interrupted for not more than 1 year.
4) By an insurance contract that are associated with investment funds, and for which the insurer has not entered into an investment risk.
5) By a deposit paid insurance contract with a duration of up to 8 years.
6) By an insurance contract without right to the bonus.
7) By an annuity with no buyback value that has been set up for a maximum of 3 years.
(2). In paragraph 1, no. 1-3 cases referred to must not exceed the rates for basic agreement so far used base interest rate.
§ 5. The Danish financial supervisory authority may grant derogations from article 2, paragraph 2-4, in the following cases, without prejudice. However, paragraph 3-4:
1) assignment of a life insurance stock from a Danish or Greenlandic company mergers or similar, see. § § 204 and 252 in the financial business Act and Chapter 8 of the law on the supervision of company pension funds.
2) assignment of a life insurance stock from a foreign or Faroese company to one of the § 1 paragraph 2 subject to the insurance company, if the transfer is approved by a regulatory authority in the awarding company's home country.
3) By continuation, change, regulation and similar articles of an existing insurance conditions where the use of a higher base interest rate has a few economic importance for the insurance company and is reasonable and reassuring for each insured person in the company.
4) in cases where the insurance company for technical reasons temporarily not able to comply with article 2, paragraphs 2 to 4.
(2). There may, in the cases referred to in paragraph 1, no. 1-3, not be given dispensation to that base interest rates in excess of the basic interest rate, which until now have been applied in the insurance contract.
(3). A derogation referred to in paragraph 1, no. 3, the use of a base interest rate of 3% p.a. assumes that the total deposits and bonus tilskrivninger within a year to insurance created pursuant to this provision, does not exceed 2 ‰ of the insurance company's total mathematical provisions. For higher or lower base interest rates applies a corresponding lower or higher limit.
(4). The Danish financial supervisory authority may grant a derogation from section 3 of the insurance contracts, where commitment to insurance benefits be made on the basis of future premium increases. This assumes that the increases in insurance agreement conclusion is spelled out with regard both to the time as size, so that the commitment insurance benefits get a real content immediately upon conclusion of the contract.
§ 6. Violation of section 2, paragraph 2, § 3 and § 4, paragraph 2, be punished by a fine.
(2). That can be imposed on companies, etc. (legal persons) criminal liability in accordance with the provisions of the criminal code 5. Chapter.
Date of entry into force of
§ 7. The notice shall enter into force on the 1. July 2008.
(2). At the same time repealed Executive Order No. 312 of 3. May 2005 on the base interest rate for life insurance business.
The Danish financial supervisory authority, the 19. June 2008 Henrik Bjerre-Nielsen/Per Ploug man Bærtelsen Official notes 1) Ordinance contains provisions implementing parts of a European Parliament and Council Directive 2002/83/EC of 5. November 2002 concerning life assurance (Official Journal of the European communities 2002 L 345, p. 1).