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Directions for the Warning Message Disclosure Regarding the Death or Annuity Benefit of Life and Annuity Insurance is Subject to Real Levy Principle

 

 
 
 

Order

 of

Financial Supervisory Commission
 
 
Date of issue: June 4, 2013
Document No.: Jin-Guan-Bao-Shou-Zi-10202545341
 
1.   This order is issued in accordance with Subparagraph 7, Paragraph 1, Article 6 of the Regulations Governing Business Solicitation, Policy Underwriting and Claim Adjusting of Insurance Enterprises.
2.   Life insurance enterprises shall add the following warning in conspicuous text font in all sales documents for insurance products that contain the component of life insurance or annuities insurance: “Pursuant to Article 112 of the Insurance Act, life insurance death benefit and annuities under annuity certain plan to be paid upon death of the insured to the beneficiaries named thereby, such amount shall not be treated as part of the insured’s estate. However if such benefits are involved in tax-related schemes to, for example, avoid inheritance tax, tax collection authority may still apply the substance--form principle provided in relevant tax regulations or Article 12-1 of the Tax Collection Act for tax assessment purpose.”over
3.   When life insurance enterprises sell aforementioned insurance products, they shall provide the applicants with related sales documents to make sure they are aware of the content of warning. If a life insurance enterprise plans to include wording on tax benefits of an insurance product in its sales documents, it may only quote relevant provisions in Estate and Gift Tax Act, Income Tax Act or Insurance Act, and include the aforementioned warning.

4.  This order takes effect on July 1, 2013.

Visitor: 3397   Update: 2013-08-08