On Dec. 7, DEN GVT issued decree on life cover contribution principle.
DEN GVT issued Executive Order BEK 1403/2024 of Dec. 5, 2024 on the contribution principle, as per sections 29(3), 30(7), 139(5), 316(1) of the Insurance Business Act.
Applies to life insurers/cross-sector pension funds conducting life insurance activities.
Where policyholder and other entitled persons under insurance contracts are entitled to a bonus and it has not been agreed this calculated/distributed under a specific method.
Retrospective provisions, collective/individual bonus potential, accumulated adjustment of value, profit margin on life insurance and investment contracts are pursuant to Appendix 1 on financial reports for insurance companies & cross-sector pension funds.
Subsection 2. of BEK 1457, Dec. 11, 2017, on the contribution principle is repealed.
Effectiveness
The Executive Order enters into force on Jan. 1, 2025.
