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Royal Decree 1361 / 2007, Of 19 October, Amending The Regulation Of Management And Supervision Of Private Insurance, Approved By Royal Decree 2486 / 1998, 20 November, In The Field Of Supervision Of The Reinsurance, And Development...

Original Language Title: Real Decreto 1361/2007, de 19 de octubre, por el que se modifica el Reglamento de ordenación y supervisión de los seguros privados, aprobado por el Real Decreto 2486/1998, de 20 de noviembre, en materia de supervisión del reaseguro, y de desarrollo...

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TEXT

I

Directive 2005 /68/EC of the European Parliament and of the Council of 16 November 2005 on reinsurance and amending Council Directives 73 /239/EEC and 92 /49/EEC and Directives 98 /78/EC and 2002 /83/EC, a prudential supervisory framework for reinsurance activities in the European Union.

Law 13/2007 of 2 July amending the recast text of the Law on the Management and Supervision of Private Insurance, approved by Royal Decree-Law 6/2004 of 29 October on the supervision of the reinsurance, it incorporates into national law Directive 2005 /68/EC in those aspects which required legal status. However, the incorporation of the Directive also requires the amendment of the Regulation on the management and supervision of private insurance, approved by Royal Decree 2486/1998 of 20 November 1998, in order to take account of certain aspects affected by the Directive. Community rule. In the transposition of Directive 2005 /68/EEC into Spanish insurance law, it should be borne in mind that the Spanish legislation on the management and supervision of private insurance opted at the time to apply "mutatis mutandis" to reinsurers the scheme of direct insurance institutions. Therefore, the transposition of a Community scheme of reinsurer entities which remains on its basic lines the rules of direct insurance does not introduce substantial changes in the Spanish regulation on reinsurance. Rather, transposition involves completing and systematising the current regulation on the supervision of reinsurance. In this respect, the content of the Regulation on the management and supervision of private insurance is amended to include, inter alia, the reserve of stabilisation within the list of technical provisions, as well as changes in the (a) the provisions of this reserve, the ability to cover technical provisions of the amounts which are recoverable from special purpose entities, the specific limits of diversification and the rules of congruence applicable to them; investments by the reinsurers; the minimum amount of the solvency margin of the reinsurer entities and insurance entities carrying out reinsurance activities.

II

Title VI of Organic Law 3/2007 of 22 March 2007 on the effective equality of women and men, on equal treatment in the access to and supply of goods and services, lays down the principle of equal treatment between men and women. men and women in the access to goods and services, prohibiting direct or indirect discrimination on grounds of sex, however, to admit differences of treatment when justified by a legitimate purpose and the means to achieve this. appropriate and necessary.

In this regard, Article 71.1 of the Organic Law on actuarial factors prohibits the conclusion of insurance or related financial services contracts in which, when considering sex as a factor for calculating the premiums and benefits, differences in the premiums and benefits of insured persons are generated. However, it provides that the conditions under which it is permissible to determine the proportionate differences in the premiums and benefits of persons considered individually may be laid down where sex is a factor. determining the risk assessment based on relevant and reliable actuarial and statistical data. Those cases should be set by the Government by means of a Royal Decree before 21 December 2007, in accordance with the provisions of the third final provision of the said Organic Law. The Organic Law 3/2007, of March 22, protects the pregnancy situation in a special way. Article 70 provides that in the case of access to goods and services, no Contracting Party may inquire into the situation of pregnancy of a woman who is a claimant of the same, except for reasons of protection of her health, and Article 71.2 provides that costs related to pregnancy and childbirth shall not justify differences in the premiums and benefits of persons considered individually, without the possibility of any differences in respect. The adaptation in the field of private insurance to the Organic Law on Equality requires the amendment of certain provisions of the Regulation on the management and supervision of private insurance, in particular in order to bring about development Regulation as referred to in Article 71.1 of the Organic Law. To this end, this Royal Decree also responds.

III

This Royal Decree also makes an amendment to Article 120 of the Regulation on the Management and Supervision of Private Insurance, concerning the Advisory Board of Insurance and Pension Funds, with a view to to include the Insurance Compensation Consortium as a vowel.

IV

The final provision of the recast text of the Law on the Management and Supervision of Private Insurance enables the Government, on a proposal from the Ministry of Economy and Finance, and after hearing the Advisory Board of Insurance and Pension Funds, to develop the Law in matters which are expressly attributed to the regulatory authority, as well as, in general, in all those susceptible to regulatory development in which it is necessary for its correct execution, by means of the adoption of its rules of procedure and any subsequent amendments thereto; required.

On the other hand, the third final provision of the Organic Law 3/2007, of 22 March, for the effective equality of women and men, in paragraph 3 enables the Government to set by Royal Decree the assumptions to which it refers the second paragraph of Article 71.1. According to these ratings, this Royal Decree is issued, consisting of a single article containing the amendments to the Regulation on the management and supervision of private insurance. The content of the Royal Decree is supplemented by the repeal and the final provisions. In its virtue, on the proposal of the Minister for Economic Affairs and Finance, according to the Council of State, and after deliberation by the Council of Ministers at its meeting on 19 October 2007,

D I S P O N G O:

Single item. Amendment of the Regulation on the management and supervision of private insurance, approved by Royal Decree 2486/1998 of 20 November 1998.

The regulation on the management and supervision of private insurance, approved by Royal Decree 2486/1998 of 20 November, is amended as follows: One. In Article 29, 'Concept and enumeration of technical provisions', paragraph 2 (f) is amended as follows:

"f) The stabilization reserve."

Two. A new paragraph 4 is added to Article 29 with the following wording:

" 4. Exclusively reinsurers shall constitute technical provisions, including the reserve of stabilisation, sufficient for all their activities. "

Three. The title and Article 34 (1) shall be amended as follows:

" Article 34 Tables of mortality, survival, disability and morbidity.

1. The mortality, survival, invalidity and morbidity tables must meet the following requirements: (a) Be based on national or foreign experience, adjusted to generally accepted state-actuarial treatments.

b) The mortality, survival, invalidity and morbidity reflected in the same should be found within the generally accepted confidence intervals for the Spanish experience. If they contain different probabilities for each sex, they should be statistically justified, without in any case being able to incorporate the effect of risk for pregnancy and childbirth. (c) The end of the observation period considered for the drawing up of the tables may not be earlier in more than 20 years from the date of calculation of the provision. (d) Where tables are used based on the experience of the insured collective, the statistical information on which they are based must meet the requirements of homogeneity and representativeness of the risk, including on the same information sufficient to allow for statistical inference and indicating the size of the sample, its method of production and the period to which it refers, which shall be in accordance with the provisions of paragraph (c) above. (e) In the case of survival insurance, they must incorporate the effect of the reduction in mortality, in the light of the unfavourable development of the mortality rate, unless it has already been taken into account in the calculation of the observation period; referred to in subparagraph (c) above. However, in the calculation of the provision, more prudent tables may be used which, without meeting any of the above requirements, have a higher margin of safety than is the case for them. "

Four. Article 45 is amended as follows:

" Article 45 Stabilization reserve.

1. The stabilisation reserve, which shall be cumulative, is intended to achieve the technical stability of each class or risk. It shall be calculated and equipped in those risks which, due to its special character, level of uncertainty or lack of experience so require, shall be integrated in the amount necessary to deal with the unfavourable random deviations of the siniestrality.

2. An insurance institution shall be a reserve of stabilisation at least for the following risks and up to the following limits:

(a) Civil liability arising from nuclear risks: the 300 per 100 of the rate of own-hold premiums written in the financial year.

b) Risks included in the Combined Agricultural Insurance Plans: the limit set by the Article of the 42 Regulation adopted by Royal Decree 2329/1979 of 14 September. (c) Credit insurance: 134 per 100 of the average of the premiums for own withholding tax, payable in the last five financial years. Notwithstanding the foregoing, it shall not be required to be set up where the premiums or contributions payable in the field of credit are less than four per cent of the total premiums or contributions payable on insurance other than life insurance and 2,500,000 euro. (d) Insurance against civil liability in motor vehicles, professional liability, civil liability for products, construction damage insurance, industrial risks, security of safety, risk insurance Environmental and environmental risk coverage: 35 per 100 of the risk premiums for own retention.

This last limit will be increased when this is derived from the entity's own experience. For these purposes, within each risk or class, the limit of the stabilisation reserve shall be the result of multiplying the risk premiums of own retention corresponding to the financial year which is closed by double the amount of the deviation. typical of the last ten years the quotient formed by: in the numerator, the claims of own retention, the claims for exercise of occurrence being imputed; in the denominator, the risk premiums of own retention which correspond to the exercise.

However, the limit will not be increased when during the ten-year period the ratio would have always been less than one. 3. The stabilisation reserve shall be provided for each financial year by the amount of the security surcharge included in the premiums written, with the minimum limit laid down in the technical bases. Except in credit insurance, for the cases referred to in paragraph 2 above, the minimum limit may not be less than two per 100 of the commercial premium. In the case of credit insurance, the minimum allocation shall be carried out by 75 per 100 of the positive technical result of the class, understanding the difference between the revenue and the technical expenditure as set out in the Accounting Plan of the Insurance Entities. 4. Where the procedure laid down in Article 31 gives rise to a shortage of premium, the basis for consideration for the purposes of paragraphs 2 and 3 above shall be increased on the basis of the percentage concerned. The calculation of the amounts referred to in the retention itself shall include the transactions for direct insurance and reinsurance accepted net of transferred reinsurance and regressed. 5. The stabilisation reserve shall be applied to compensate for the excess of claims incurred in the financial year on the risk premiums of own withholding which correspond to the financial year in the class or risk concerned. The allocation and implementation of the stabilisation reserve shall be carried out by classes or risks, without the compensation being eligible. '

Five. Article 49 (2) and (3), "Technical provisions to be covered", are amended as follows:

" 2. Insurance and reinsurance undertakings shall have the obligation to cover all technical provisions, including the stabilisation reserve, which are the result of direct insurance and reinsurance operations accepted, without being admissible. deduction of any reinsurance disposals.

3. The technical provisions, including the stabilisation reserve, calculated at the end of the financial year, as well as the variation in those provisions until the end of the financial year, shall be permanently covered. In order to define this coverage, the General Directorate of Insurance and Pension Funds may, by means of a reasoned resolution, deduct from coverage those goods and rights in respect of which due to its lack of permanence in the entity's assets, its (a) special litigation or its limited negotiation may be understood as not being in accordance with the principles set out in paragraph 1. '

Six. In Article 50, 'Goods and rights for the investment of technical provisions', the following amendments are made to paragraph 15:

" 15. Loans to reinsurers for their participation in the provision of benefits, in the part where no deposits have been received for the same, and on the same terms, the amounts that are recoverable from entities with special task referred to in point (I) of Article 1.3 of the recast of the Law on the Management and Supervision of Private Insurance.

Reinsurance entities and special purpose entities should be of sufficient quality. These entities are presumed to be of sufficient quality when they have at least a BBB or equivalent rating, granted by a recognised credit rating agency and, in any case, when they are subject to supervision by the control authority of another Member State of the European Economic Area. '

Seven. Article 53 (4), 'Diversification and dispersion limits', is amended as follows:

" 4. Other eligible assets. In the case of securities or securities issued by the same undertaking, or of loans granted to the same borrower, or guaranteed or guaranteed by the same guarantor, the total amount to be computed shall not exceed 5 per 100 of the provisions techniques to cover. This limit shall be 10 per 100 if the insurance undertaking does not invest more than 40 per 100 of the technical provisions to be covered by securities or claims relating to issuers and to borrowers or guarantors in which 5 per 100 is exceeded. Shares in exchange-traded funds shall be subject to the above limits.

In the case of investments referred to in the preceding paragraph in companies of the same group, the same shall be accumulated and, subject to the limits of 5 per 100 and 10 per 100 for each of the companies, the said investments shall be calculated investments up to 10 per 100 and 20 per 100, respectively. They shall not be subject to the limits laid down in the preceding two paragraphs:

a) The deposits in credit institutions.

(b) Securities or securities, excluding shares of credit institutions or insurers. (c) the loans granted to credit institutions or insurers. (d) the credits secured or guaranteed by credit institutions or insurers.

Investment in deposits in credit institutions and in securities or transferable securities, excluding shares, of a single credit institution or insurer, as well as in loans granted to or guaranteed by or secured by the same is subject to a joint limit of 40 per 100 of the technical provisions to be covered. In the case of investments of the above mentioned in companies of the same group, and respecting the previous limit for each entity, the same shall be computed up to 60 per 100 of the technical provisions to be covered.

Investment in shares and units in collective investment institutions of a financial nature not subject to coordination under Directive 85 /611/EEC, for which the legal provisions are coordinated, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), as referred to in Article 5 (2) (2). 50 of this Regulation, other than shares and units in institutions of collective investment of free investment and collective investment institutions of collective investment institutions of free investment, and provided that they do not any other limit as laid down in the preceding paragraphs shall be subject to the joint limit of 40 per 100 of the technical provisions to be covered. Investment in securities or transferable securities which are not admitted to trading on regulated markets within the scope of the Organisation for Economic Cooperation and Development (OECD), together with shares and units in institutions for collective investment of free investment or collective investment institutions of collective investment investment institutions as referred to in paragraph 5.a.2. of Article 50 and shares and shares in companies and funds of risk capital as referred to in Article 50 (3) (a) shall not be taken into account by an amount exceeding 10 per 100 of the total of the technical provisions to be covered. In the case of reinsurers and only for investment in securities or transferable securities which are not admitted to trading on regulated markets within the scope of the Organisation for Economic Cooperation and Development (OECD), this limit will be 30%. Securities or transferable securities, other than shares and units in institutions for collective investment for free investment or in collective investment institutions, shall not be subject to the limit laid down in the preceding paragraph. collective investment investment institutions, which are admitted to trading on regulated markets within the scope of the Organisation for Economic Cooperation and Development (OECD), even if they are not susceptible to trafficking and impersonal in a financial market. The whole of the shares and units in a collective investment investment institution or in a collective investment institution of collective investment investment institutions, as referred to in paragraph 5.a.2. Article 50 of this Regulation, or of shares and shares in a company or venture capital fund referred to in Article 50 (3) (3), shall not be counted for an amount exceeding 5 per 100 of the total of the total of the technical provisions to cover. The appropriations referred to in Article 50 (13) which are not guaranteed or guaranteed shall be counted for a maximum of 5 per 100 of the technical provisions to be covered, without exceeding the limit of 1 per 100 for a single debtor. Loans granted to credit institutions or insurers, or guaranteed or guaranteed by both, shall not be subject to such limits. '

Eight. Article 55 (3) (b), "Rules of congruence for the purposes of coverage of technical provisions", is amended as follows:

" (b) The amount of non-congruent assets does not exceed 20 per 100 of the commitments expressed in the corresponding currency. In the case of reinsurers, this limit shall be 30%. '

Nine. In Article 58, 'Obligation to dispose of the solvency margin', paragraphs 2 and 3 are amended and a new paragraph 6 is created, in the following terms:

" 2. The consolidable groups of insurance institutions shall have, as a solvency margin, a consolidated assets not committed sufficient, at all times, to cover the legal solvency requirements applicable to the group, which take into account the insurance and reinsurance operations carried out between the entities belonging to that entity, considering for the calculation of the group's solvency requirements the net quantities of these operations after the elimination process corresponding. The legal solvency requirements, in the case of insurance institutions domiciled in third countries, shall be calculated for these purposes in accordance with the provisions of this Regulation, unless the law of the third country in which it is the institution in question imposes on it solvency requirements at least comparable to those laid down in that institution, in which case the calculation referred to in that legislation may be carried out in accordance with the provisions of that legislation.

Only for the purposes of determining the uncommitted own equity of the consolidable group, the calculation shall be included in the holding companies of shares of insurance institutions, being considered for these entities. minimum amount equal to zero. The same solvency requirements shall apply to the consolidated sub-groups of insurance institutions. 3. In the case of insurance undertakings carrying out insurance operations in the classes of life and other than life, the calculation of the solvency margin and the performance of its legal minimum shall be carried out separately for each of the two previous activities. For such purposes, the solvency margin shall be charged to each of the activities on the basis of their origin or affectation, in accordance with objective, reasonable and verifiable criteria. The allocation of the items making up the solvency margin calculation and the criteria applied for such allocation shall be maintained from one financial year to the next, unless they measure reasons for their variation. Such variation shall in no case affect the minimum amounts of social capital and mutual fund provided for in Article 13 of the Law, nor any specific items of any of the classes. The modification of the criteria or the allocation of the solvency margin items from one activity to another, as well as their justification, shall be collected in the statistical accounting documentation that the insurance institutions refer to the Directorate-General for Insurance and Pension Funds. '

" 6. In the determination of the minimum amount of the solvency margin of insurance institutions carrying out reinsurance activities, the rules laid down for reinsurer entities shall apply for their reinsurance acceptances, when they are fulfil one of the following conditions: (a) The premiums accepted in reinsurance exceed 10 per cent of their total premiums.

(b) The premiums accepted for reinsurance exceed EUR 50 million. (c) the technical provisions of the reinsurance accepted exceed 10% of its total technical provisions. "

Ten. In Article 59, 'Uncommitted own property', the first subparagraph of paragraph 1 (1) (b) is amended, which shall be amended as follows:

" (b) The revaluation reserve, the issuance premium and other free stock reserves that do not correspond to the commitments entered into and have not been classified as stabilization reserves. It shall apply in respect of these items as referred to in the second subparagraph of paragraph (a) above.

(...) "

Once. In Article 60, 'Uncommitted own heritage of the consolidable groups of insurance entities', paragraph 1.Uno.b is amended as follows:

"(b) The assets of the consolidable group, excluding stabilisation reserves."

Twelve. In Article 61, 'Minimum solvency margin for insurance other than life insurance', paragraphs 3.c), 4.d) and 4b shall have the following wording:

" 3. The amount of the solvency margin on the basis of premiums shall be determined as follows: (...)

(c) The amount obtained as referred to in the preceding subparagraph shall be multiplied by the ratio existing in the last three financial years, between the amount of the net claim of reinsurance transferred and receded, and the gross amount of such claims, without this relationship being in any case less than 50%. For the purposes of the foregoing, at the request, duly justified by the insurance undertaking and subject to the authorisation of the Directorate-General for Insurance and Pension Funds, the risks which they have actually incurred shall be treated as transferred and receded through special purpose entities referred to in point (I) of Article 1.3 of the recast of the Law on the Management and Supervision of Private Insurance, provided that the financial instruments issued In order to finance their exposure to insurance risks, they are admitted to trading in regulated markets within the scope of the OECD. In any case, the special purpose entities shall be subject to the conditions laid down in paragraph 4b of this Article. Risks effectively transferred and regressed shall be those which have been assumed by entities outside the group of the entity performing its disposal or retrocession. '

" 4. The amount of the solvency margin on the basis of claims shall be determined as follows: (...)

(d) The amount obtained in accordance with paragraph (c) shall be multiplied by the ratio existing in the last three financial years, between the amount of the net reinsurance claims and the gross amount of such reinsurance. This is not the case, but in no case can it be less than 50%. For the purposes of the foregoing, at the request, duly justified by the insurance undertaking and subject to the authorisation of the Directorate-General for Insurance and Pension Funds, the risks which they have actually incurred shall be treated as transferred and receded through special purpose entities referred to in point (I) of Article 1.3 of the recast of the Law on the Management and Supervision of Private Insurance, provided that the financial instruments issued In order to finance their exposure to insurance risks, they are admitted to trading in regulated markets within the scope of the OECD. In any case, the special purpose entities shall be subject to the conditions laid down in paragraph 4b of this Article. Risks effectively transferred and regressed shall be those which have been assumed by entities outside the group of the entity performing its disposal or retrocession. '

" 4 ter. Where the nature or quality of the reinsurance contracts has changed significantly from the previous financial year, or the reinsurance contracts do not occur, or the transfer of the risk is limited, the proposed reinsurance reduction in paragraph 3.c) and in paragraph 4 (d) of this Article, it shall be adjusted to reflect the reinsurance policy of the institution which effectively has an impact on the solvency margin, and shall be reduced by the amount required.

Reinsurance is presumed to be of sufficient quality when the reinsurer has at least a BBB or equivalent rating awarded by a credit rating agency of recognised prestige and, in any case, when the reinsurer is subject to supervision by the supervisory authority of another Member State of the European Economic Area. The reinsurance reduction shall not apply if the annual or future solvency of the reinsurer is likely to be affected by its annual accounts. '

Thirteen. In Article 62, 'Minimum solvency margin in life insurance', paragraphs 1 and 5 are amended and a new paragraph 6 is created in the following terms:

" 1. For the life class, the minimum amount of the solvency margin shall be the sum of the amounts resulting from the calculations referred to in the following two paragraphs: (a) 4 per 100 of the amount of the life insurance provisions shall be multiplied by direct insurance, without deducting the transferred reinsurance, and by reinsurance accepted, for the relationship which exists, in the financial year covered, between the amount of the life insurance provisions, deducted from those relating to the transferred reinsurance and and the gross amount of the same, without this relationship being, in any case, less than 85 per 100.

(b) For contracts where the risk capital is positive, 0,3 per 100 of the risk capital shall be multiplied by 0,3 per 100 of the risk capital, without deducting any transferred reinsurance or receding from the existing relationship in the financial year covered by the the risk capital deducted the transferred reinsurance and the gross amount of such capital, without this relationship being, in any case, less than 50 per 100. For the purposes of the reductions provided for in points (a) and (b) above, on request, duly justified by the insurance undertaking and subject to the authorisation of the Directorate-General for Insurance and Pension Funds, they shall be equated with regressed the risks that have actually been transferred and regressed through special purpose entities referred to in point (I) of Article 1.3 of the recast of the Law on the Management and Supervision of Private Insurance, provided that the financial instruments issued by them to finance their exposure to risks Insurance companies are admitted to trading on regulated markets in the OECD area. In any case, the special purpose entities shall be subject to the conditions laid down in paragraph 5 of this Article. Risks effectively transferred and regressed shall be those which have been assumed by entities outside the group of the entity performing its disposal or retrocession. '

" 5. Where the nature or quality of the reinsurance contracts has changed significantly from the previous financial year, or the reinsurance contracts do not result in or are limited to the transfer of the risk, the proposed reinsurance reduction in paragraph 1 of this Article, it shall be adjusted to reflect the reinsurance policy of the institution which effectively has an impact on the solvency margin, and shall be reduced by the amount required.

Reinsurance is presumed to be of sufficient quality when the reinsurer has at least a BBB or equivalent rating awarded by a credit rating agency of recognised prestige and, in any case, when the reinsurer is subject to supervision by the supervisory authority of another Member State of the European Economic Area. The reinsurance reduction shall not apply if the annual or future solvency of the reinsurer is likely to be affected by its annual accounts. 6. In the case of reinsurer entities, the required solvency margin for life reinsurance activities shall be determined in accordance with the provisions of Article 61. Without prejudice to the foregoing, the Directorate-General for Insurance and Pension Funds may authorise the institution to determine the required solvency margin for life reinsurance activities in accordance with the provisions of the paragraphs 1 to 5 of this Article, in the case of reinsurance operations in the following cases:

(a) Life insurance activities, in case of death, mixed insurance, life insurance with insurance, marriage insurance and birth insurance, linked to investment funds.

b) Income insurance. (c) the operations for the management of collective pension funds, that is to say, operations involving the management of the investments and, in particular, the assets representative of the reserves of the bodies supplying the benefits in the event of death, in the event of life or in the event of cessation or reduction of activities. (d) the operations referred to in point (c), where they bear a guarantee of insurance, whether on the conservation of the capital, on the payment of a minimum interest. "

Fourteen. Article 76 (6), (7) and (8), "Policies and premium rates", are worded as follows:

" 6. The rate premium, which shall be in accordance with the principles of indivisibility and invariability, sufficiency, equity and equal treatment between women and men, shall be composed of the pure or risk premium, the security surcharge, if any, and the charges necessary to compensate the institution for the administrative and acquisition costs, including those of the maintenance of the business, as well as for the possible margin or surcharge of profit or excess. The costs of managing claims shall be included in any case in the pure premium.

7. Where sex is a determining factor in the risk assessment on the basis of relevant, reliable and creditable actuarial and statistical data on the basis of the risk analysis carried out by the institution, differences may be accepted. provided of the premiums and benefits of the persons considered individually. However, the costs and risks related to pregnancy and childbirth shall not in any case justify differences in the premiums and benefits of the persons considered individually. 8. For the purposes of Article 25 (5) of the Law, the decision to terminate the administrative procedure shall be granted for an unextended period of six months for the insurance undertaking to accommodate its premiums and premium rates. to the provisions of the Law and this Regulation. '

Fifteen. Article 80 is amended as follows:

" Article 80. Special features of the technical bases of sickness insurance.

Insurance companies operating in the disease class may use morbidity tables that define the risk according to sex and age. In this case, they must use, in the determination of the premium, a technique similar to that of life insurance, with the principles of collective capitalization being applied. This will also apply to the coverage of health care risks. However, in no case shall the risks and costs related to pregnancy and childbirth be the result of differences in premiums or benefits. "

Sixteen. The second subparagraph of Article 120 (6), "Advisory Board of Insurance", is worded as follows:

" 6. (...) On a proposal from the Director-General for Insurance and Pension Funds, after consultation of the most representative associations and institutions in each case, four vowels appointed on behalf of the insurance institutions shall be appointed, two on behalf of the pension fund management entities, two representing insurance intermediaries, one representing private insurance-related prestige corporations, one representing the actuaries of the insurance, one on behalf of insurance experts and breakdown commissioners, two representatives of trade union organisations, one representing the General Council of the Chambers of Commerce, Industry and Navigation of Spain, and one representing the Insurance Compensation Consortium. "

Single repeal provision. Regulatory repeal.

The entry into force of this royal decree is repealed by Article 103 of the Regulation on the Management and Supervision of Private Insurance, approved by Royal Decree 2486/1998 of 20 November.

Likewise, how many norms of equal or lower rank are repealed to the established in this royal decree.

Final disposition first. Basic character.

According to the provisions of the final provision of the recast text of the Law on the Management and Supervision of Private Insurance, approved by the Royal Decree of Law 6/2004 of 29 October, the provisions of the Law of the contained in this royal decree are considered as bases for the management of insurance, except for amendments to Articles 76,8 and 120 of the Regulation on the management and supervision of private insurance.

Final disposition second. Entry into force.

This royal decree will enter into force on 9 December 2007, except for the amendments referred to in Articles 34, 76 and 80 of the Regulation on the Management and Supervision of Private Insurance, contained in paragraphs 3, Fourteen and fifteen of the single article of this royal decree, which shall enter into force: (a) on 21 December 2007, as regards the requirements for considering sex as a determining factor in the assessment of the risk;

(b) on 31 December 2008, as regards the prohibition on the consideration of costs related to pregnancy and childbirth in the calculation of premiums, benefits and tables of mortality, survival, invalidity and morbidity.

Given in Madrid, on October 19, 2007.

JOHN CARLOS R.

The Second Vice President of the Government and Minister of Economy and Finance, PEDRO SOLBES MIRA