Regulations to the Insurance Act (insurance etc.)
Date FOR 2006-06-30-869
Affairs Ministry
Published in 2006 Booklet 10
Effective 01.07.2006, 01.01.2008
Edited
FOR 2014-06-27-886 from 01/09/2014
Changes
FOR-1989-11-21-1169, TO-1990-06-01-430, TO-1990-11-29-941, TO-1993-02-19-117, FOR 1994-11-10 -1000, FOR-1997-09-15-1005, TO-2000-09-25-979, FOR-2003-12-18-1610, FOR-2003-12-22-1735, FOR 1995-09-18 -797, FOR-1989-11-21-1167
For
Norway
Legal
LOV-2005-06-10-44-§1-3, LOV-2005-06-10-44-6-1, LOV-2005-06-10-44-§6-3, legislation 2005-06-10-44-§6-4, LOV-2005-06-10-44-§6-6, LOV-2005-06-10-44-§7-1, LAW-2005-06-10 -44-§7-9, LOV-2005-06-10-44-§7-10, LOV-2005-06-10-44-§7-11, LOV-2005-06-10-44-§8 -3, LOV-2005-06-10-44-section 8-4, LOV-2005-06-10-44-§9-1, LOV-2005-06-10-44-section 9-2, laws 2005-06-10-44-§9-3, LOV-2005-06-10-44-§9-6, LOV-2005-06-10-44-§9-10, LAW-2005-06-10 -44-§9-12, LOV-2005-06-10-44-§9-15, LOV-2005-06-10-44-§9-16, LOV-2005-06-10-44-§9 -17, LOV-2005-06-10-44-§9-18, LOV-2005-06-10-44-§9-20, LOV-2005-06-10-44-§9-22, legislation 2005-06-10-44-§9-23, LOV-2005-06-10-44-§10-9, LOV-2005-06-10-44-§10-16, LAW-2005-06-10 -44-§11-1, LOV-2005-06-10-44-§11-5, LOV-2005-06-10-44-§12-5 cf. LOV-2015-04-10-17-§23 -2
Promulgated
07.07.2006
Short Title
Regulations on insurance
Chapter Overview:
Chap. 1. General provisions (§§ 1-1 - 1-5)
Chap. 2. Price Tariffs and prizes (§§ 2-1 - 2-13)
Chap. 3. Asset Management (§§ 3-1 - 3-3)
Chap. 4. Profits (§§ 4-1 - 4-2)
Chap. 5. Insurance provisions (§§ 5-1 - 5-7)
Chap. 6. Corporate Pension plans with perennial return guarantee. (§§ 6-1 - 6-5)
Chap. 7. Specific rules for existing portfolio of individual life insurance contracts (§§ 7-1 - 7-2)
Chap. 8. Accounting (§§ 8-1 - 8-6)
Chap. 9. Solvency margin and capital requirements (§§ 9-1 - 9-3)
Chap. 10. Public pension plans (§§ 10.1 - 10.2)
Chap. 11. Removal (§§ 11.1 - 11.3)
Chap. 12. Duty to pension funds (§§ 12-1 - 12-5)
Chap. 13. Entry into force. Transitional rules etc. (§§ 13-1 - 13-7)
Adopted by the Ministry of Finance 30 June 2006 pursuant to Act 10 June 2005 no. 44 on insurance companies, pension companies and their business (Insurance Act) § 1-3, § 6-1, third paragraph, § 6-3 second paragraph, § 6-4, second paragraph, § 6-6 subsection, § 7-1, § 7-9, first and second paragraphs, § 7-10, fourth paragraph, § 7-11, fourth paragraph, § 8-3, second paragraph , § 8-4 second paragraph, § 9-1, fourth paragraph, § 9-2 subsection, § 9-3, third, fourth and sixth paragraphs, § 9-6, first paragraph, § 9-10 subsection § 9- 12, first paragraph, § 9-15, fourth paragraph, § 9-16, second paragraph, § 9-17, second paragraph, § 9-18 subsection, § 9-20 subsection, § 9-22 subsection, § 9-23 second paragraph, § 10-9 third paragraph, § 10-16, § 11-1, subsection and § 11-5, fourth paragraph, § 12-5 first paragraph.
EEA Referrals: Directive 2003/41 / EC on the activities in and supervision of occupational pension funds (pension fund directive).
Changes: Amended by regulations 17 Dec 2007 no. 1457, March 14, 2008 no. 258, June 26, 2009 no. 907, 3 Dec 2009 No.. 1439, 18 Dec 2009 No.. 1726, 10 August 2011 No.. 815, 21 Dec 2011 No.. 1442, 27 June 2014 No.. 886.
Chap. 1. General Provisions
§ 1-1. Scope These regulations apply to life insurance and pension companies headquartered in this country, unless otherwise specifically provided in these Regulations.
Rules in chapter 11 about relocation also applies to banks and fund management companies.
§ 1-2. Life Insurance Companies' operations The insurance company has the opportunity to receive defined contribution pension schemes with sufficient insurance element. Contribution exemption for disability is considered here as sufficient insurance element. FSA determines otherwise what is considered adequate insurance element.
A life insurer may acquire contracts stipulating that the funds related to a contract to be managed in a separate investment portfolio and in case linking specific guaranteed return for such portfolio.
The first and second paragraphs apply correspondingly to an insurance company the opportunity to receive individual life insurance and pension contracts.
§ 1-3. Pension Funds business. Pension For pension funds, § 1-2, first and second paragraphs accordingly.
Further rules on pension funds determined by the FSA.
§ 1-4. Defined Contribution firms' Insurance Act § 6-1, § 6-2 and § 6-6 apply correspondingly to the business of pension companies.
§ 1-5. Insurers Companies' business rules in § 2-9 and § 2-10 apply correspondingly insofar as appropriate for non-life insurers authorized to write life insurance under the Insurance Act § 1-3 second paragraph.
Insurance companies licensed under the Insurance Act § 1-3 second paragraph to write life insurance, may also underwrite insurance linked to disability risk where it is agreed that for a period of up to five years to be paid yearly contribution exemption / waiver of premium in case of annual disability pension in accordance with the degree of disability, plus payment of a lump sum in accordance with the degree of disability at the end of the five year period.
Lump sum shall be used to cover a single premium in agreement with the insurance company or pension fund which entitles them to annual disability benefits until reaching the vesting age.
Chap. 2. Price Tariffs and prizes
§ 2-1. Price Tariff for personal risk Price Tariffs for risks related to person to separate the risk related to retirement pensions, disability benefits and benefits for children and dependents, and between contracts with and without the right to excess risk result. It can be prepared special tariffs for different groups of contracts.
Institution shall so far as possible be based on the latest updated risk statistics. When the institution's risk results indicate, the FSA order the institution to conduct analyzes of the individual elements of price tariffs and in case changing price tariff that is unsatisfactory or unreasonable.
§ 2-2. Price Tariff for asset price tariff for the management of funds related to pension and annuity schemes should be based on different categories of assets that the funds are invested, and the extent of the funds in the scheme. It may be stipulated prices lower when the funds in the scheme constitutes a higher amount. For individual contracts may be stipulated price tariff with unit prices for asset management.
Price Tariffs which establishes the institution's compensation for its risk of managing the capital tied to contracts with right to excess investment result shall specify the calculation rate is assumed. It can not be used higher rate than the maximum permitted interest rate at any time. It can be used different tariff rates for portfolios with different investment strategies. Taken of the price tariff regard to additional provisions relating to each contract must also indicate how this is done.
For contracts that are part of the collective portfolio or a sub-portfolio in the group portfolio, can be prepared price tariff for asset management which includes consideration for the institution's risk by management.
Institution must have special price tariffs for compensation for guaranteed returns related to assets managed in separate investment portfolios that take into account the duration of the guaranteed return and the limits established for investment selection. The institution shall require special consideration for use of the right investment choices.
When the institution's results indicate, the FSA order the institution to conduct analyzes of price tariffs and in case changing price tariff that is unsatisfactory or unreasonable.
§ 2-3. Calculating Interest for price tariffs FSA determines the maximum permitted interest rate at any time from the provisions of Directive 2002/83 / EC Article 20. 1 B i). It may be determined specific calculation interest for contracts entered into in foreign currencies. A change in interest rates comes earlier than four months after the decision.
§ 2-4. Performance compensation for investment management institution may not apply to contracts with a right to excess returns results utilizing price tariff or other terms and conditions for the policyholder means that the consideration for investment management varies with the size of the return achieved.
Agreement that funds related to a collective pension or annuity scheme shall be administered by the institution in the investment portfolio separately in accordance with the established investment strategy and risk profile in one or more sub-portfolios in the investment portfolio may determine the compensation for asset management shall be increased or reduced according to established rules depending on whether the annual investment result will be higher or lower than the return of a specified reference portfolio, including stock index portfolio.
Institution may only enter into agreements concerning performance-based compensation under the second paragraph with the policyholder must be considered as a professional client. Undertakings are small enterprises by the Accounting Act § 1-6, is not considered a professional client.
§ 2-5. Price Tariff for administrative services Price Tariff for services shall include compensation for management of insurance contract in any one year.
Price Tariff for managing pension and annuity schemes based on the extent and composition of the insured in the individual arrangement and which benefits scheme includes. It may be determined item prices lower when the number of insured is higher.
Commission to insurance intermediary covered by the institution, shall be included as a separate charge for the contract in question.
§ 2-6. Cancellation fee may be laid in the life insurance contract that the policyholder on termination of the contract before the insurance has expired, will be paying an interruption fee not exceeding move the fee under § 3.11. Cancellation fee can not be claimed if the termination comes moving the contract to another company.
For pension and life insurance contracts has agreed perennial return guarantee the provision on termination charges in § 6.4.
The first and second paragraphs apply correspondingly to contracts that are not considered life insurance.
§ 2-7. Free policies, pension capital certificates. Disposable Paid contracts institution must have special price tariff for the management and administration of minimum liability and pension capital with contractual benefits for use in calculating the administration reserves for such contracts. The same applies for single premium contracts.
Institution may annually claim compensation for management and administration of minimum liability and pension capital certificates with special investment portfolios. § 2-2, first paragraph, third sentence, and fourth paragraph, and § 2-5 first paragraph applies correspondingly.
§ 2-8. Continued insurance institution may for continuation insurance using a price tariff for risks related to person who deviates from the tariff for the paid-up policy is issued, and which assumes:
-
Different assumptions about marital status and number of children,
-
That the cost of disability coverage in group pension shall correspond to the price applied by the company for individual pension insurance of persons with normal health, or determined with a reasonable percentage addition to collective tariff,
-
That the price for continuation insurance for resignation from group life based on price tariff for individual annual risk policies applied from the health information existing at the recording member in the group life insurance.
§ 2-9. Notification of insurance and pension products When an insurance or pension product first marketed or sold, the institution shall send the product message to the FSA. The same applies to product changes.
A product notification shall contain a description of the product, including the product with or without the right to excess returns or risk result. It should also provide information about product combinations that product to be included in. For products with special investment portfolios should be disclosed to the principles for the composition of investment portfolios and for the design of the return guarantees and the right investment choices that will be assumed.
Notification shall in the case also include information on:
-
Basis for calculating insurance reserves, including the discount rate and the formula works for calculating risk associated with the person that will be used,
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Principles for calculating the paid-up rights and pension capital,
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Interruption fee and principles for calculating the surrender value,
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Principles of reinsurance, and
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Matters policyholder shall provide information about the use in the assessment of risk related to the person.
§ 2-10. Notification of price tariffs Notification price tariffs Company has determined should be sent to the Financial Supervisory Authority when price tariffs are adopted by the institution. The same applies when changing the price tariff. The notification shall specify the date from which a price tariff applies.
Notification shall in the case also include information on:
-
The formulas for calculating risk associated with the person who is employed,
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The calculation rate used,
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Profit element which is built into the price tariff,
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Contract fees for new contracts,
-
Transfer fee under § 11-3
-
Principles for calculating compensation for the guaranteed return linked to specific investment portfolios and
-
Other principles for formulating price tariff.
§ 2-11. Pension funds with collective pension for one employer for pension funds with operations covering only group pension for one employer, § 2-1, second paragraph, § 2-2 third and fourth paragraphs and § 2-3 accordingly. § 2-7 to § 2-10 apply correspondingly insofar as appropriate. The employer must be given a copy of the message to the FSA.
§ 2-12. Pension Enterprises engaged in activities that are not considered life insurance for pension companies doing business which are not regarded as life insurance, the provisions of § 2-2 to § 2-7 accordingly. The same applies to the provisions of the Insurance Act § 9-4, § 9-5 first and second paragraph and § 9-6 subsections.
The provisions of § 2-9 and § 2-10 apply correspondingly insofar as appropriate. Should pension entity's operations include pension plan with defined contribution associated with freedom of contributions or other insurance product, notification to the FSA after § 2-9 and § 2-10 also include:
-
Information about the agreement with the institution that will deliver products
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A description of the products, and
-
The tariff rates for these products will be used.
For pension fund with operations covering only pension plan with defined contribution for one employer, § 11.2 and subsection of this section accordingly.
§ 2-13. (Repealed by regulation 21 Dec 2011 No.. AD 1442)
Chap. 3. Asset
§ 3-1. Regulations on investment policies for life insurance companies and pension funds 'asset have been issued on 17 December 2007 no. 1457 on insurance companies and pension funds' asset.
§ 3-2. Management of the premium or contribution fund provisions regarding the management of a premium and deposit funds in regulation on 21 November 1989 no. 1170 on the management and use of premium funds, pensions funds and deposit fund for life insurance and pension companies.
§ 3-3. Changing the administrative arrangement Transferred a contract from the common portfolio for investment portfolio, should additional allocations under the contract transferred and included in the separate investment portfolio in the contract.
When calculating the contract additional provisions apply § 11-2 of the adjustment fund accordingly.
Chap. 4. Profits
§ 4-1. Profits on contracts without excess right Profits for Insurance Act § 9-9 first paragraph, cf.. § 10.7 and § 8-4, assigned contracts without excess right of refusal, the institution. The same applies to profits under the Insurance Act § 9-10, third paragraph, ref. § 7-10 second paragraph.
§ 4-2. Profits attributable to paid-up policies, pension capital certificates, etc. The rules on the use of surplus in the Insurance Act § 9-12, cf.. § 7-10 second paragraph also applies:
A)
free policies with benefits being paid,
B)
earned rights in municipal pension assigned surplus under the Insurance Act § 10-14, second paragraph, and
C)
individual life insurance contracts with contractual benefits that are entered into before 1 January 2008, except where all such contracts are separated under management as a separate portfolio under the provisions of § 1.7.
Provisions of the Insurance Act § 9-12, cf.. § 7-10 subsection does not apply to pension savings plans and pension agreements for Defined Contribution Act § 7-3.
Chap. 5. Insurance reserves
§ 5-1. Calculating minimum provisions When calculating the minimum insurance provisions for the individual contracts the institution may not use higher discount rates than calculation rate pursuant to § 2-3 at the time the individual parts of the obligations under the contract occurred, cf. Insurance Act § 9- 16, second paragraph.
§ 5-2. Management Reserve institution must make provision for the administration reserve for paid-up policies and pension capital with contractual benefits. It may also be made to provisions to cover future costs liability related to single premium contracts and other groups of contracts. Provisions for single premium contracts may instead be calculated from the capital value of the gross obligations under the contracts.
Administration Reserve for paid-up policies and pension capital with contractual benefits to be calculated without profit element.
§ 5-3. Provision for specific guaranteed return Supplementary provision for guaranteed return linked to investment portfolio separately, ref. Insurance Act § 9-18, third paragraph, shall correspond to the capital value at the time of calculation of the guaranteed return plus the portfolio value as guarantee under the Agreement at any time are linked to, and deducting the value of the investment portfolio at the time of calculation.
§ 5-4. Use of additional allocations by insurance case, termination of contract, etc. Additional Provisions for individual life insurance to be paid by insurance case or repurchase the same extent that it made repurchase. The same applies to surrenders of individual annuity.
Additional Provisions for individual annuity and pension will be used for single premiums for an annual increase in pension benefits, the first time within one year after the pension was paid. Each year as part of the supplementary provisions corresponding to the percentage reduction of the premium reserve during the year, or such a big deal that benefits may be increased as much as in previous years. Should pension is paid in a fixed number of years, are in case of remaining additional allocations disbursed in the last year of the period.
Additional Provisions relating to collective scheme shall upon termination and liquidation or changes in the entity disposed of in accordance with the rules on pension plan assets in the Companies Act sections 12 to 15 and Defined Contribution Act Chapters 10 to 14.
§ 5-5. Other additional allocations Have an institution lost its capital and the requirement for premium reserve for one or more contracts are not fulfilled by transfer of additional provisions relating to the person or contracts in question shall require premium reserves are met by transferring remaining additional provisions relating to the contracts with sufficient premium reserves. The size of the remaining additional allocations for each contract shall apply to the distribution.
§ 5-6. Calculation of additional allocations A life insurer may in determining the year's supplementary provisions as a percentage of premium reserves related to the specific contract in the common portfolio for Insurance Act § 9-17, second paragraph, use a higher percentage for groups of contracts without or with low additional allocations with the aim that these contracts' additional allocations shall correspond to 3.5 per cent of the premium reserve for the individual contract.
§ 5-7. The risk equalization fund institution may not, without the consent under the Insurance Act § 9-11 subsection make allocations to the risk equalization fund which means that the fund will exceed 150 per cent of its total risk premiums in the financial year. This does not return assigned risk equalization fund for Insurance Act § 9-9, first paragraph.
Institution surplus on the risk result in a year is calculated from the risk result for all groups of contracts. The provision for the equalization fund in a year divided between those groups where there is the risk result for the size of the surplus in the individual groups.
Rules on the risk result in the Insurance Act § 9-10 subsection does not apply to risk insurance of one year duration after notification to the Financial Supervisory Authority is not entitled to profit. Risk result for such assurances assigned company.
Must institution change the basis for the calculation of capital values so that the insurance provisions must be increased according to plan as mentioned in the Insurance Act § 9-25, the risk equalization fund used to cover a lack of premium reserves.
Chap. 6. Corporate Pension plans with perennial return guarantee.
§ 6-1. Perennial guaranteed returns for investment portfolio separately In agreement under the Companies Act § 11-1, or the Insurance Act § 10-15 that the funds in a collective scheme with contractual benefits shall be managed in a separate investment portfolio, it may be decided that the institution guarantees that the return on the investment portfolio over a specified number year must at least remain at the level agreement specifies. Such warranties may not cover a period exceeding five years.
§ 6-2. Provision Requirements Provisions to the premium reserve for retirement, disability and survivor benefits shall be calculated from the calculation base for pension and employees' accrued entitlement to a pension at any time. Exceeds the return on the investment portfolio in a fiscal year the annual provision requirements for calculation, it also made additional allocations.
Is the return on the investment portfolio in a fiscal year not as great as assumed in the calculation of the pension scheme, including the discount rate, and the difference may not be covered by rules on supplementary provisions, the institution shall immediately arrange for the missing premium reserve are covered by transfer from the buffer allocation under § 6 -3 or, if necessary, from the prize fund linked to the plan. Uncovered remainder will be covered by grants from the company, or in the case charged institution under the Companies Act § 11-1, fourth paragraph or the Insurance Act § 10-15 third paragraph.
§ 6-3. Buffer Allocation. Surplus Exceeds return on the investment portfolio in a fiscal year the annual allocations under § 6-2, first paragraph, the residual amount after deduction of profits to the pension surplus fund allocated as buffer allocation for the scheme.
Exceeds buffer allocation the agreed upper limit, the excess amount is considered surplus and fed entity's premium. Is buffer allocation less than the agreed lower limit, it shall at the request of the institution cover the shortfall by special grants to the prize fund or buffer allocation or the equivalent security institution agrees. Subsidies from the entity mentioned in § 6-2 second paragraph final sentence, is considered here as grants for buffer allocation.
§ 6-4. Cancellation fee agreement referred to in § 6.1 may provide that the company should pay a special interruption fee if the guarantee period of more than three years and the company quit or move the contract before the expiration of the warranty period.
§ 6-5. Supplementary Provisions for guarantees institution shall make supplementary provisions pursuant to § 5-3, ref. Insurance Act § 9-18 third and fourth paragraphs, to cover their guarantees in accordance with § 6-1 to § 6-3.
Chap. 7. Specific rules for existing portfolio of individual life insurance contracts
§ 7-1. Existing portfolio of individual life insurance contracts An insurance company can separate all individual life insurance contracts with contractual benefits that are entered into before 1 January 2008, the administration as a separate portfolio pursuant to the provisions of this section. The portfolio should in case also include such individual contracts with single premium paid.
The company shall have a system of registration of the contracts covered by the portfolio.
For the company managing the portfolio of the provisions of the Insurance Act Chapter 9 with the following exceptions:
A)
provisions of § 9-3 to § 9-6 does not apply,
B)
assets corresponding insurance reserves to hedge obligations under the contracts portfolio includes, to be managed as a separate sub-portfolio in the group portfolio,
C)
surplus of managing the assets referred to in subparagraph b) is calculated and distributed according to the former rules of the Act of 10 June 1988 no. 39 on Insurance § 8-1 with related regulations,
D)
allocations to the premium reserve shall be calculated on a gross basis as the difference between the capital value of all gross contractual obligations, including future costs, and capital value of gross premiums payable under the contract, whichever provides greater provisions requirements than calculation in accordance with § 9 -16,
E)
provisions concerning the adjustment fund in § 9-20, cf.. § 11.2 of these Regulations, the sum of unrealized gains on financial assets included in the portfolio referred to in subparagraph b, and
F)
provisions on risk equalization fund in § 9-10 third paragraph and § 9-22 does not apply.
§ 7-2. Amendment Agreement. Moving An insurance contract expires on the portfolio in accordance with § 7-1, first paragraph if it is changed by agreement between the insurer and the policyholder, unless the impact of premium, performance or insurance period is immaterial.
When moving an insurance contract, the provisions of the Insurance Act Chapter 11.
Chap. 8. Accounting
§ 8-1. Scope This chapter applies to life insurance companies, pension companies and pension funds that has taken over pension plans for more than one firm or institution, cf. Insurance Act § 9-23 and § 10-16.
Chapter does not apply for death and disability risk insurance without right to profit.
This chapter does not apply to pension schemes covered by the Act of 27 June 2008 no. 62 relating to individual pension schemes, pension evidence covered by the Act of 13 December 2013 No.. 106 on occupational pension schemes for deposits covered by the Regulations of 30 June 2006 No. . 870 contribution pension to meet the minimum requirements of the law on occupational pensions.
For a life insurance company that has spun off all individual life insurance contracts with contractual obligations entered into before 1 January 2008 under management as a separate portfolio, cf. Insurance Act § 9-2 subsection with regulations, the provisions of this chapter to the extent applicable for contracts in this portfolio.
§ 8-2. Policyholder right bank statement Account statement shall be sent policyholder no later than three months after the end of the year. For insurance contracts with a right to profit, the deadline is five months. Are there many policyholders under the same insurance, sent separate statement for each of them. If there are several groups under a group annuity and pension insurance, must be submitted statement for each group.
The information in the account statement will be given in Norwegian, but may be given in another language if the policyholder so requests.
§ 8-3. General requirements for information in the account statement shall be in your statement given special mention of the means associated with the contract, including premium reserves, pension capital, additional allocations, the premium fund, deposit fund, pension surplus fund and buffer allocations.
Your statement should show balance at the end of previous year and end of the year, as well as all movements that are relevant for the balance of development, including:
A)
year premiums or deposits.
B)
year payments to cover respectively risk, administrative services and management of funds related to the contract, and any consideration is settled in the return of the management of funds.
C)
Year burden of contract administration reserves.
D)
year return on the assets associated with the contract, including any returns that are used to cover compensation for the management of the funds. In addition, disclosure of its annual profits in return allocated funds and allocation of profit respectively premium reserve, pension capital, additional allocations, the premium fund, deposit fund, pension surplus fund and buffer allocations. If the annual return is not sufficient to meet the provisions of the contract calculation base, the use of additional allocations and buffer allocation and new capital from the company stated.
E)
annual surplus on the risk result assigned to the contract and distribution of the profits respectively premium reserve, premium fund and the pension surplus fund. If the risk result is negative, the use of risk equalization fund and raised funds from the company stated.
Your statement should disclose the contract contingent share of unrealized gains at the end of the year. It shall state that any portion of kollektivporteføljens gains will be included as part of the transfer value if the insurance contract transferred to another insurance company. It shall also inform that kursreservens size changes through the year due to changes in the market value of financial assets.
Your statement should disclose the risk equalization fund size at the end of the year. The size must be expressed both in monetary and percentage of insurance provisions. It shall also state whether the contract's share of the allocation to the equalization fund. The percentage is calculated by after provisions for risk equalization fund is divided between the individual groups of contracts acc. § 5-7, second paragraph, second sentence of regulation, made a distribution of individual contracts in the group after the relationship between the risk premiums paid for each contract.
Your statement will also give information about the book capital is for the fiscal year for the portfolio contract contained, calculated according to regulations issued by the Financial Supervisory Authority. The institution can be informed whether the capital is used in connection with the allocation of profit on each contract if this gives a more accurate picture of the added return.
§ 8-4. Additional information for municipal pension schemes in the joint arrangements Your statement for municipal pension schemes included in joint arrangements shall disclose the premiums the policyholder has paid and the actuarially calculated premium is applied scheme.
§ 8-5. Additional information for up policies and pension capital certificates for paid-up policies and pension capital with contractual obligations, cf. Insurance Act § 9-12, the account statement information regarding their percentage share of the profits in return profit attributable to contract. If negative risk result is covered by deductions from surplus on investment result attributable to the contract, this must be stated.
§ 8-6. Supplementary pension and insurance amount Your statement for individual annuity and pension contracts, including paid-up policies and pension capital with contractual obligations, should show assured and accrued pension amount at the end of the previous year and at the end of the year.
Your statement for other individual life insurances must show insurance amount at the end of the previous year and at the end of the year.
Chap. 9. Solvency margin and capital requirements
§ 9-1. Solvency margin requirements for life insurance companies for life insurance, the Act of 19 May 1995 no. 481 on the calculation of solvency capital and solvency margin for Norwegian life insurance companies.
§ 9-2. Solvency margin requirements for pension funds Regulations on 19 May 1995 no. 481 on the calculation of solvency capital and solvency margin for Norwegian life insurance companies apply correspondingly to pension funds with pension schemes which are considered as life insurance. The minimum solvency § 3, second sentence does not apply to pension funds.
§ 9-3. Requirements for life insurance companies and pension funds' capital base the calculation of capital requirement under the Insurance Act § 6-3, § 7-9, first and second paragraph and § 8-3 first paragraph, the provisions of Regulation 1 June 1990 no. 435 concerning the calculation of capital requirements for financial institutions, clearing houses and securities firms and regulations of 22 December 2006 No.. 1616 on minimum capital in insurance companies, pension funds, pension companies and holding companies in the insurance group.
Regulation on 1 June 1990 no. 435 on the calculation of regulatory capital for financial institutions, clearing houses and securities § 7 subsection m and n and second paragraph b and c does not apply to pension funds that have adopted statutes that it can not obtain responsible capital from other than enterprise or institution that has a pension scheme the pension fund.
Chap. 10. Public pension
§ 10-1. Premium payments for municipal pension Ordinary annual premium calculated in accordance with the Insurance Act § 10-5 first paragraph shall be paid in advance by insurance beginning of year. The prize is in agreement with the insurance company paid in advance in six-monthly installments, quarterly installments or in monthly installments. By splitting the prize in installments shall be calculated a forward premium covering increased administration costs and reduced interest income. Premiums are used accordingly by adjustment premiums and single premiums.
Ordinary annual premium for new members or premiums as a result of salary increases for members, shall be required paid as soon as it is intended. The prize is in agreement with the insurance company distributed over the premium installments that remains of the insurance year.
Indexation premium as stated in the Insurance Act § 10-5 second paragraph shall be required paid as soon as the annual adjustment premium is determined. The payment can be distributed over the premium installments that remains of the insurance year when the adjustment premium is determined.
Single premiums as stated in the Insurance Act § 10-5 third paragraph shall be required paid as soon as they are determined. It may be determined that the payment is to take place simultaneously with the last installment premiums or latest by year end.
§ 10-2. Insurance Technical shortfall in municipal pension A municipal pension funds that do not have assets sufficient to cover the insurance provisions at any time, with the consent of the Ministry of Finance continue underfunding for a limited period pursuant to an escalation plan established with the intention that the provisions should be satisfactory covered at the end of the period.
Municipal plan with approved escalation plan which expires after 1 January 2011, must in case apply for consent under subsection before 1 January 2010.
Chap. 11. Moving
§ 11-1. Calculation under the Insurance Act § 11-7 Calculation for Insurance Act § 11-7 of funds related to the contract to be moved will return up to the calculation date under § 11-7 third paragraph assigned the contract and allocated pursuant to the provisions of the Insurance Act § 9-9, first paragraph, cf. § 10.7 and § 4.8, or in the case under § 9-12 second and third paragraphs, ref. § 4-2 and § 7-1 in regulation.
§ 11-2. The fluctuation reserve When moving a contract the additional provisions related to contract ceding institution as calculated by the Insurance Act § 11-7, cf. § 11-11 to § 11-14 is increased by provisions of this section.
When moving the individual contracts, including paid-up policies and pension capital, the contract shall proportionate share of the fluctuation reserve on the calculation date by the Insurance Act § 11-7 third paragraph, allocated the contract as additional allocations.
When moving the collective pension or other collective contract shall contract proportionate share of the fluctuation reserve on the calculation date by the Insurance Act § 11-7 third paragraph, allocated the contract as additional allocations. The company still has the right to withhold the proportionate part of the fluctuation reserve of up to two percent of the contract's premium reserve.
For the purposes of subsections calculated a contract proportionate share of the fluctuation reserve from the ratio at the time of calculation for the Insurance Act § 11-7 third paragraph between the funds that relate to the contract to be moved, and funds related to all contracts collective portfolio as mentioned in the insurance Act § 9-7 second paragraph.
Contract proportion of the fluctuation reserve shall not be transferred if the contract is established or moved to a company from another company less than twelve months before the move date.
When moving pension from a pension fund that covers pension for a single company or a single employer, the whole fluctuation reserve is considered as additional allocations.
§ 11-3. Relocation fee Relocation fee can not be higher than 5000 kroner by moving a group pension scheme for one employer.
Relocation fee determined taking into account the costs should be covered through the omkostningselementer previously taken into account when calculating the price tariffs for services.
Institution may not claim reimbursement of expenses related to the transfer of an insurance beyond moving fee.
Chap. 12. Duty to pension
§ 12-1. More on the disclosure requirements of the Insurance Act § 7-11, second paragraph, first sentence Does the pension fund defined contribution pension schemes, information as stated in the Insurance Act § 7-11, second paragraph, first sentence include the pension amount of the capital.
Have pension fund municipal pension schemes information mentioned in the Insurance Act § 7-11, second paragraph, first sentence include accrued pension based on national insurance, ref. Insurance Act § 10-5 fourth paragraph.
Information mentioned in the first and second paragraphs, shall contain information on the assumptions used for the calculation of the pension.
§ 12-2. Information disclosure when members bear the investment risk Duty provisions of Regulations 17 December 2007 No.. 1457 on insurance companies and pension funds' asset management (asset management regulations) § 4-1 apply correspondingly to pension funds created with investment.
For pension plans with collective investment pursuant to the above Act § 3-2a and the Companies Act § 11-1a, Members shall, upon request, be given such information as mentioned in the asset management regulations § 4-1 first and second paragraphs.
§ 12-3. Information about the investment strategy statement for the investment strategy as stated in the Insurance Act § 7-7 fourth paragraph, shall upon request be made available to pension scheme members and pensioners.
§ 12-4. Information when entitlement to the benefit by the pension arises Each pension recipient shall, upon retirement or when entitled to other benefits arises, receive comprehensive information on the benefits which the person is entitled to, and the payment methods that can be selected.
§ 12-5. Information about expected future level of pension benefits Each member shall upon request be informed about:
A)
expected future level of their pension benefits, and
B)
pension benefits size and condition for transfer of pension rights to another pension fund or life insurance company, the employment relationship.
Chap. 13. Entry into force. Transitional rules etc.
§ 13-1. Commencement Regulations come into force on 1 July 2006.
§ 13-2. Transitional rules for life insurance companies Life insurance companies must fulfill the requirements of the Insurance Act, Chapter 9 and Regulations from 1 January 2008. Until this date, the life insurance companies operating in accordance with the provisions of the Act of 10 June 1988 no. 39 on insurance chapters 7 and 8 and associated regulations, unless otherwise provided in § 13-3.
A life insurance company are still entitled to a share of the profits after Insurance Act § 9-9, subsection assigned a group pension scheme on 1 January 2008, pensioners entitled to current pension, as follows:
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Up to 15 percent of profits for 2008,
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Up to 10 percent of the profit for 2009, and
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Up to 5 percent of profits for 2010.
§ 13-3. Specific business rules from the date this regulation enters into force, the following applies:
A)
A life insurance company has the opportunity to receive defined contribution pension schemes with sufficient insurance element. Contribution exemption for disability is considered here as sufficient insurance element. FSA determines otherwise what is considered adequate insurance element.
A life insurer may acquire contracts stipulating that the funds related to a contract to be managed in a separate investment portfolio. The company will require special consideration for guaranteed returns associated with such a portfolio and make supplementary provisions to cover its liability for the return guarantee.
Provisions of the first and second paragraphs apply correspondingly to an insurance company the opportunity to receive individual life insurance and pension contracts.
B)
A fund insurance company may also engage in other activities which are regarded as life insurance. Letter a) shall apply correspondingly.
C)
Life insurance and fund insurance that commences activities acc. new insurance class, shall notify the FSA at the launching. Licence deemed granted unless the Financial Supervisory Authority within two months of receiving the report, requires that the institution submit separate applications for licenses for business expansion to new class.
D)
Life Insurance Company and linked companies may be permitted to merge under the Insurance Act § 3-6.
E)
For pension applies subparagraph a), first and second paragraphs accordingly.
F)
insurance companies that are authorized by law 10 June 1988 no. 39 on Insurance § 1-2 third paragraph to write life insurance, may also underwrite insurance linked to disability risk where it is agreed that in a period up to five years to be paid yearly contribution exemption / waiver of premium in case of annual disability pension in accordance with the degree of disability, plus payment of a lump sum in accordance with the degree of disability at the end of the five year period.
Lump sum shall be used to cover a single premium in agreement with the insurance company or pension fund which entitles them to annual disability benefits until respectively vesting age under the Companies Act § 6-6 subsection, and 67 years after the above Act § 2-4 second paragraph.
G)
Regulations § 11-2 apply from 1 July 2006. Regulations § 11-2 subsection applies when moving individual contracts, including paid-up policies and pension capital, after July 1, 2006.
§ 13-4. Transitional rules for pension funds engaged in life insurance Private and municipal pension conducting activities which are considered life insurance shall meet the requirements of the Insurance Act chapter 7 and these regulations from 1 January 2008. Until this date, the pension funds operating in accordance with the provisions of the Regulations on 19 February 1993 no. 117 on insurance Act applies to pension funds.
For pension funds that do business on the date the Insurance Act comes into force, will apply the following:
A)
A pension fund which has sought permission under the Insurance Act § 7-3 no later than 1 December 2007, up application has been decided to continue the business pension fund had access to power when the Insurance Act came into force. Failure to observe the deadline or the application is rejected, the pension fund is liquidated pursuant to law.
B)
The minimum starting capital of a pension fund in the Insurance Act § 7-5 must be met no later than 1 January 2009.
Pension funds shall not later than 1 January 2010 have met the minimum solvency margin of a pension fund in the Insurance Act § 7-9, first paragraph and § 9-2 in regulation. Pension funds will also be later than 1 January 2010 have met the requirements and limits on pension fund investments in enterprises or other employers with pension schemes in the pension fund, as required by the Insurance Act § 7-10 and § 3-2 of the Regulations.
§ 13-5. Funds in the contingency fund assets in the contingency fund on 1 January 2008 can be transferred to the equalization fund or used by the company in other ways. Upon transfer to the risk equalization fund applies the limit in § 5-6, first paragraph.
§ 13-6. Repeal of regulations The following regulations shall be repealed from 1 January 2008:
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Regulations on 21 November 1989 no. 1169 of the separation of risk, savings and expenses element of the prize.
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Regulation on 1 June 1990 no. 430 on profit in life insurance.
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Regulations on 29 November 1990 no. 941 on security fund in life insurance.
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Regulations on 19 February 1993 no. 117 on Insurance Act applies to pension funds.
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Regulations November 10, 1994 no. 1000 concerning the duty of insurance reserves.
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Regulations 15 September 1997 No.. 1005 on premiums and insurance in life insurance.
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Regulations on 25 September 2000 no. 979 on additional reserves in life insurance companies.
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Regulation of 18 December 2003 no. 1610 on maximum rates for transfer fee.
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Regulation of 22 December 2003 no. 1735 on payment of premiums for municipal pension schemes.
§ 13-7. Amendments to other regulations
a)
changes that come into force on 1 July 2006: ---
B)
Changes that take effect on 1 January 2008:
Regulations on 21 November 1989 no. 1167 on the allocation of costs, losses, income, funds etc. between insurance companies in a group relationship and medium industries and contracts in an insurance company is amended as follows: ---
