Chương 4 Nghị định 46/2007/NĐ-CP: Doanh thu và chi phí

Chapter IV

REVENUE AND EXPENSES

Section 1. REVENUE AND EXPENSES OF INSURERS

Article 20. Revenue of insurers

Revenue of an insurer means amounts receivable in a period, including:

1. Revenue from insurance business activities being amounts receivable in a period after deduction of amounts payable which reduces the revenue earned in the period.

(a) Amounts receivable in a period shall include the following:

- Primary insurance premiums;

- Revenue from reinsurance accepted;

- Commissions from ceding reinsurance;

- Revenue from fees for provision of agency services including loss surveys, evaluation of compensation, making claims on third parties, or salvage recovery following total loss settlements;

- Revenue from fees for loss surveys excluding surveys for internal cost accounting member entities within the one independent cost accounting insurer.

(b) Amounts payable which reduce the revenue earned in a period shall include the following:

- Refunds of insurance premiums;

- Reductions of insurance premiums;

- Premiums on ceding reinsurance;

- Refunds of premiums for reinsurance accepted;

- Reductions of premiums for reinsurance accepted;

- Refunds of commissions on ceding reinsurance;

- Reductions of commissions on ceding reinsurance.

2. Revenue from financial activities:

(a) Revenue received from investments as stipulated in Section 3 of Chapter II of this Decree;

(b) Revenue received from trading securities;

(c) Interest received on the amount of the security deposit;

(d) Revenue earned from leasing out assets;

(dd) Other revenue as stipulated by law.

3. Revenue from other activities:

(a) Proceeds from sale or liquidation of fixed assets;

(b) Bad debts which had been written-off but are recovered;

(c) Other revenue as stipulated by law.

Article 21. Expenses of insurers

Expenses of an insurer means amounts payable or which must be allocated in a period including the following:

1. Expenses of insurance business activities are amounts payable or which must be allocated in a period after deducting amounts receivable in order to reduce expenditure in the period.

(a) Amounts payable or which must be allocated in a period shall include the following:

- Compensation payments for claims with respect to primary non-life insurance; payments of insurance proceeds with respect to life insurance;

- Compensation payments for re-insurance accepted;

- Payments into insurance reserves;

- Payments of insurance commission;

- Expenses of loss assessment;

- Expenses for agency fees for provision of services for loss assessment, evaluation of compensation or making claims on third parties;

- Expenses for salvage recovery following total loss settlements;

- Expenses for management of insurance agents;

- Expenses for prevention and limitation of risks and losses;

- Expenses for assessment of risks of subject-matters insured;

- Other expenses and allocations as stipulated by law.

(b) Amounts receivable in order to reduce expenditure in a period, including:

- Compensation received for cessions;

- Compensation recovered from third parties;

- Proceeds from salvage recoveries following total loss settlements.

2. Expenses of financial activities:

(a) Expenses incurred for investment activities in accordance with Section 3 of Chapter II of this Decree;

(b) Investment income payable to purchasers of insurance pursuant to undertakings in contracts of life insurance;

(c) Costs of leasing out assets;

(d) Bank charges, and payment of interest on loans;

(dd) Other expenses and allocations as stipulated by law.

3. Expenses of other activities:

(a) Expenses of sale or liquidation of fixed assets;

(b) Expenses of recovery of bad debts which had been written off but are now recovered;

(c) Other expenses and allocations as stipulated by law.

Article 22. Other provisions on revenue and expenses of insurers

Insurers must comply with other relevant laws on other revenue and expenses of insurers in addition to the provisions in articles 20 and 21 of this Decree.

Article 23. Splitting owner's capital fund and premium fund in life insurance

Life insurers must split into separate accounts owner's capital from premium collected from purchasers of insurance in accordance with guidelines of the Ministry of Finance.

Section 2. REVENUE AND EXPENSES OF INSURANCE BROKERS

Article 24. Revenue of insurance brokers

Revenue of an insurance broker means amounts receivable in a period including:

1. Revenue from insurance broking activities:

(a) Revenue from insurance brokerage commission after deducting refunds and reductions of insurance brokerage commission;

(b) Other revenue as stipulated by law.

2. Revenue from financial activities:

(a) Revenue received from trading securities;

(b) Interest received on deposits and on loans;

(c) Revenue earned from leasing out assets;

(d) Other revenue as stipulated by law.

3. Revenue from other operations:

(a) Proceeds from sale or liquidation of fixed assets;

(b) Bad debts which had been written off but are recovered;

(c) Other revenue as stipulated by law.

Article 25. Expenses of insurance brokers

Expenses of an insurance broker means amounts payable or which must be allocated in a period, including:

1. Expenses of insurance broking activities:

(a) Expenses of insurance broking activities;

(b) Expenses of purchasing professional indemnity insurance;

(c) Other amounts payable or which must be allocated as stipulated by law.

2. Expenses of financial activities:

(a) Expenses of leasing out assets;

(b) Bank charges, and payment of interest on loans;

(c) Other amounts payable or which must be allocated as stipulated by law.

3. Expenses of other activities:

(a) Expenses of sale and liquidation of fixed assets;

(b) Expenses of recovery of bad debts which had been written off;

(c) Other expenses payable or which must be allocated as stipulated by law.

Article 26. Other provisions on revenue and expenses of insurance brokers

Insurers brokers must comply with other relevant laws on other revenue and expenses of insurance brokers in addition to the provisions in articles 24 and 25 of this Decree.