Financial Business Act.pdf

While this translation was carried out by a professional translation agency, the text
is to be regarded as an unofficial translation based on the latest official Consolidated
Act no. 286 of 4 April 2006. Only the Danish document has legal validity.
October 2006, GlobalDenmark Translations
20.-(1) The technical basis etc. for life-assurance activities shall be notified to the Danish FSA
no later than the same time as, or before, the company starts using the basis etc. The same
shall apply to any subsequent change of these matters. The notification shall include a
specification of:
1) the types of insurance the company intends to use,
2) the basis of calculation of insurance premiums, surrender values, and paid-up policies,
3) the rules for calculating and distributing the realised results to policyholders and other
beneficiaries under insurance contracts,
4) the company’s principles for reinsurance, including limits to amounts,
5) the rules for when proposers and policyholders are to provide health information for an
assessment of risks,
6) the rules for calculating life-assurance provisions for individual insurance contracts and
for the company as a whole, and
7) the rules according to which pension schemes with annuity payments, effected or
agreed as compulsory schemes with an insurance company or a pension fund, may be
transferred to or from a company in connection with transition to another employment
or in connection with a transfer of ownership or reorganisation of an undertaking.
(2) Companies which do not arrange direct life assurance shall not notify the technical basis
etc. for life-assurance activities.
(3) The Danish FSA may lay down more detailed provisions on the conditions mentioned in
subsection (1), including provisions on if and the extent to which notifications shall be
available to the public.
21.-(1) The conditions notified under section 20(1), nos. 1-5 shall be adequate and
reasonable for the individual policyholder and others eligible under insurance contracts.
(2) The regulations notified for calculation and distribution of realised results, cf. section
20(1), no. 3, shall be accurate and clear and shall lead to a reasonable distribution.
(3) Premiums for newly effected insurance contracts shall be sufficient to enable the insurance
company to meet all its exposures so that no systematic and permanent input from other
funds will be needed.
(4) The elements of calculations (interest rates, expenses, and statistical elements) that form
the basis for calculating insurance premiums, surrender values, and paid-up policies, shall be
selected with prudence. The elements of calculations that form the basis for calculating lifeassurance
provisions shall be set such that they are in accordance with the regulations issued
pursuant to section 196.
(5) The Danish FSA may lay down more detailed provisions on the requirements mentioned in
subsections (1)-(4).
(6) If the requirements in subsections (1)-(4) or the requirements in the regulations issued in
pursuance of this Act are not fulfilled, the Danish FSA shall order the life-assurance company
to carry out the necessary changes in the conditions notified under section 20 within a time
limit laid down by the Danish FSA. The provisions of section 249 shall apply correspondingly.
EXCLUDING MINOR AMENDMENTS
22.-(1) If, despite the provisions in sections 11-14, insurance contracts are arranged prior to
a license being granted and registered, those who have arranged the insurance on behalf of