Newsletter
RULES FOR INVEST-MENT-TYPED PRODUCTS AN-NOUNCED
On 11 December 2001 the Department of In-surance, MOF, promulgated its the Regulations Governing Investment Type Insurance Products. The regulations provide that investment gains and losses on investment typed insurance prod-ucts are in principle to be borne by the policy-holder. Permitted investment vehicles are ini-tially limited to domestic and foreign mutual funds, government bonds and fixed-term bank deposits, and do not include direct investments in TSE- or OTC-traded stocks. But to maintain the flexibility to make adjustments in line with the accumulation of experience by insurers, and to respond to changes in market demand, the regu-latory authority is empowered to authorize other investment vehicles.
Investment typed policies may not be sold until they have been reviewed and authorized by the regulatory authority. In filing an application for selling such products, an insurer must submit a business plan and other required documents to the authority.