THE MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No. 102/2007/QD-BTC
Hanoi, December 14th, 2007
 DECISION
ISSUING REGULATIONS ON UNDERWRITING UNIT LINKED INSURANCE
THE MINISTER OF FINANCE
Pursuant to the Law on Insurance Business dated 9 December 2000;
Pursuant to Decree 45/2007/ND-CP of the Government dated 27 March 2007 on implementation of the Law on Insurance Business;
Pursuant to Decree 46/2007/ND-CP of the Government dated 27 March 2007 on the financial regime applicable to insurers and insurance brokers;
Pursuant to Decree 77/2003/ND-CP of the Government dated 1 July 2003 on functions, duties, powers and organizational structure of the Ministry of Finance;
On the proposal of the Director of the Insurance Department;
DECIDES:
Article 1. To issue with this Decision Regulations on Underwriting Unit Linked Insurance as part of investment linked insurance.
Article 2. This Decision shall be of full force and effect fifteen (15) days after the date of its publication in the Official Gazette.
Article 3. The Head of the Office of the Ministry; the Director of the Insurance Department; the Chairman of the State Securities Commission; life insurers; and other organizations, individuals and parties involved shall be responsible for implementation of this Decision.
 
FOR THE MINISTER OF FINANCE
DEPUTY MINISTER




Tran Xuan Ha
 
REGULATIONS
ON UNDERWRITING UNIT LINKED INSURANCE
(Issued with Decision 102/2007/QD-BTC of the Minister of Finance dated 14 December 2007)
Chapter 1
GENERAL PROVISIONS
Article 1. Governing scope
These Regulations regulate the underwriting by life insurers and by other related organizations and individuals of unit linked insurance products within the territory of the Socialist Republic of Vietnam.
Article 2. Unit linked insurance
Unit linked insurance means a life insurance product within the category of investment linked insurance products, with the following special characteristics:
1. The premium structure and the insurance benefits are clearly distinguished as between the risk insurance component and the investment component. The insurance purchaser has flexibility in deciding the premium and the assured sum pursuant to agreements in the insurance contract.
2. Policyholders are entitled to select to invest their premiums to purchase units in Unit Funds established by the insurer, and are entitled to the entire results of investments from such selected Funds and bear the investment risks of such selected Funds in proportion to their invested premiums.
3. The insurer is entitled to all premiums which policyholders pay in accordance with agreements in the insurance contracts.
Article 3. Interpretation of terms
1. Unit Fund means a Fund formed from premiums from policyholders of unit linked insurance contracts and shall be a component of policyholders' funds.
2. A unit in a Unit Fund means an equal part after the assets of such Fund have been divided into a number of equal parts.
3. Selling price means the price of one unit in a Unit Fund when the insurer sells a unit to a policyholder.
4. Purchase price means the price of one unit in a Unit Fund when the insurer purchases a unit from a policyholder.
5. Valuation day means the day on which the insurer conducts valuation of the selling price and the purchase price of one unit in a Unit Fund.
6. Next valuation day means the valuation day immediately after the day on which the insurer receives a request from a policyholder for the purchase or sale of a unit in a Unit Fund.