Thông tư 01/2019/TT-BTC sửa đổi quy định hướng dẫn Luật Kinh doanh bảo hiểm

THE MINISTRY OF FINANCE

Circular No. 01/2019/TT-BTC dated January 02, 2019 of the Ministry of Finance on amendments and supplements to certain articles of Circular No. 50/2017/TT-BTC dated May 15, 2017 of the Ministry of Finance guiding the Decree No. 73/2016/ND-CP on details of the implementation of the Law on Insurance Business and the Law on amendments to certain articles of the Law on Insurance Business

Pursuant to the Law on Insurance Business No. 24/2000/QH10 dated December 9, 2000;

Pursuant to the Law on amendments and supplements to the Law on Insurance Business No. 61/2010/QH12 dated November 24, 2010;

Pursuant to the Government s Decree No. 87/2017/ND-CP dated July 26, 2017 on defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Government’s Decree No. 73/2016/ND-CP dated July 1, 2016 on details of implementation of the Law on Insurance business and the Law on amendments to certain articles of the Law on Insurance business;

Upon the request of the Director of the Department of Insurance Management and Supervision;

The Minister of Finance hereby promulgates the Circular on amendments and supplements to certain articles of the Circular No. 50/2017/TT-BTC dated May 15, 2017 of the Ministry of Financeguiding the Decree No. 73/2016/ND-CP on details of the implementation of the Law on Insurance Business and the Law on amendments to certain articles of the Law on Insurance Business.

Article 1. To amend and supplement to certain articles of the Circular No. 50/2017/TT-BTC dated May 15, 2017 of the Ministry of Finance as follows:

1. To amend and supplement the second line in point a of subparagraph 3.1 of paragraph 3 of Article 18 as follows:

“- Setting-aside bases:

+ 100% of Commissioners Standard Ordinary (CSO) mortality table 1980 and other technical basis in conformity with insurance benefits that the insurer has committed to provide for clients with insurance products endorsed by the Ministry of Finance. In any case, mortality rates and risk rates to be used in setting aside of the reserve shall not be less than those to be used for calculating insurance premiums by the insurer.

+ Maximum technical interest rate shall not exceed 80% of the average interest rate of Government bonds with a minimum maturity of 10 years which have been issued in the latest 24 months before the reserve has been set aside. The technical interest rate to be used for setting aside the reserve shall not exceed the average investment rate of the immediately preceding 4 (four) consecutive quarters of the insurer and the interest rate on the premium of each insurance product.

The mathematical reserve shall be deemed as zero (0) if the calculation result is a negative value.

Example: Within the latest 24 months before the setting aside of the reserve, the maximum technical interest rate on Government bonds with maturity of 10 years or above, such as maturity of 10 years, 15 years, 20 years and 30 years, which are purchased after winning in a bidding, shall be calculated according to the following formula:

Where:

n: Government bond maturity (n = 10, 15, 20, 30);

LS(TB)n: Average interest rate on Government bond with maturity of n years issued within last 24 months before setting aside of the reserve. This is calculated as follows:

LS(i): Interest rate on the Government bond won in the (i)thbidding session;

k: Number of times of winning in the Government bond bidding equivalent to maturity of n years;

+ As for insurance policies underwritten from February 16, 2019, the insurer may use maximum technical interest rates prescribed herein.

+ As for insurance policies underwritten before February 16, 2019, the maximum technical interest rate shall be calculated according to the following calculation method:

• In 2019: Maximum technical interest rate = 40% A + 60% B

• In 2020: Maximum technical interest rate = 60% A + 40% B

• In 2021: Maximum technical interest rate = 80% A + 20% B

• In 2022: Maximum technical interest rate = 100% A

Where: A denotes 80% of the average interest rate of Government bonds with a minimum maturity of 10 years which have been issued in the latest 24 months before the reserve has been set aside.

B denotes 70% of the average interest rate of the Government bond with a minimum maturity of 10 years which has been issued in the latest 6 months before the reserve has been set aside.

The technical interest rate to be used for setting aside the reserve shall not exceed the average investment rate in the immediately preceding 4 (four) consecutive quarters of the insurer and the interest rate on the premium of each insurance product.”

2. To add point l after point k to subparagraph 2.3 of paragraph 2 of Article 20 as follows:

“l. Assets generated from financial profits likely to arise from Government bond purchase and redemption transactions carried out from February 16, 2019”.

3. To amend and supplement clause 1 of Article 27 as follows:

“1. If the policyholder fund has been in deficit (value of assets is smaller than that of liabilities), the life insurer must provide additional cash or deposits kept in the custody of credit institutions from the owner’s fund to the policyholder’s fund to make up the deficit. When the policyholder s fund has been in surplus (value of assets is greater than that of liabilities), the life insurer is refunded partly or wholly the above additional amounts without interest, provided that the refund does not result in any deficit in the policyholder’s fund”.

Article 2. Effect and implementation

1. This Circular takes effect on February 16, 2019.

2. In the course of implementation of this Circular, if there is any difficulty likely to arise, entities concerned should send timely feedbacks to the Ministry of Finance for its review and decision on any necessary amendment or supplement./.

For the Minister

The Deputy Minister

Huynh Quang Hai.