Regulation No. 2008-01 on Life Insurance Business Activities

REGULATION ON LIFE INSURANCE BUSINESS ACTIVITIES year 2008 / number 01 (Consolidated text as of 29/01/2026 – Update XVII)

Central Bank of the Republic of San Marino Regulation No. 2008-01 on life insurance business activities - Update XVII 2

INDEX

TITLE I DEFINITIONS AND GENERAL PROVISIONS ON AUTHORIZATION PROCEDURES.........7 Article 1 – Definitions.................................................................................................................................................................... 7 Article 2 – Scope of application. ...........................................................................................................................................11 Article 3 – General provisions on the authorization procedures of the Central Bank. ..................................................11

TITLE II ACTIVITIES EXERCISABLE BY THE INSURANCE COMPANY .............................................13 Article 4 – Activities reserved for the Insurance Company.....................................................................................................13 Article 5 – Classification by lines of business. ........................................................................................................................13 Article 6 – Other activities exercisable............................................................................................................................................14

TITLE III AUTHORIZATION OF THE INSURANCE COMPANY........................................................15 Article 7 – Application for authorization. ...................................................................................................................................15 Article 8 – Documents to be attached to the application.....................................................................................................................15 Article 9 – Criteria for drafting the articles of association and bylaws.....................................................................................15 Article 10 – Minimum share capital. ........................................................................................................................................16 Article 11 – Business plan. ............................................................................................................................................17 Article 12 – General criteria for the issuance of authorization. .............................................................................................18 Article 13 – Time limits for the decision of the Central Bank. .......................................................................................19 Article 14 – Exercise of life insurance business territory by foreign insurance companies ........................19 Article 15 – Registration in the register of authorized subjects. ..................................................................................................19 Article 16 – Statutory modifications................................................................................................................................................19 Article 17 – Extension of authorization to other lines. .....................................................................................................20 Article 18 – Revocation of authorization. ...................................................................................................................................20 Article 19 – Waiver. ...................................................................................................................................................................21

TITLE IV SHAREHOLDERS IN THE CAPITAL OF THE INSURANCE COMPANY...................................21 Chapter I General Principles................................................................................................................................................................21 Article 20 – Authorization for the acquisition of Significant Participations in the capital of the Insurance Company. .....21 Article 21 – Requirements for shareholders in the capital of the Insurance Company. .............................................................22 Article 22 – Time limits for the decision of the Central Bank. .......................................................................................22 Article 23 – Communication obligations. ..................................................................................................................................23

Chapter II Requirements for natural persons ...........................................................................................................................................24 Article 24 – Reputational requirements for natural persons participating in the capital of the Insurance Company......24 Article 25 – Suitability of natural persons to ensure sound and prudent management. ........................................................25

Chapter III Requirements for legal persons ....................................................................................................................................26 Article 26 – Reputational requirements for legal persons. ..............................................................................................26 Article 27 – Suitability of legal persons to ensure sound and prudent management. ..................................................27

TITLE V MANAGEMENT BODY OF THE INSURANCE COMPANY..............................................28 Article 28 – Provisions applicable to the management body of the insurance company. .........................................28 Article 29 – [ABROGATED]........................................................................................................................................................28 Article 30 – [ABROGATED]........................................................................................................................................................28 Article 31 – [ABROGATED]........................................................................................................................................................28 Article 32 – [ABROGATED]........................................................................................................................................................28 Article 33 – [ABROGATED]........................................................................................................................................................28 Article 34 – [ABROGATED]........................................................................................................................................................28

Central Bank of the Republic of San Marino Regulation No. 2008-01 on life insurance business activities - Update XVII 3

Article 35 – [ABROGATED]........................................................................................................................................................28 Article 36 – [ABROGATED]........................................................................................................................................................28 Article 37 – [ABROGATED]........................................................................................................................................................28

TITLE VI PARTICIPATIONS HOLDABLE ............................................................................................................28 Article 38 – Limits on holdings. .....................................................................................................................................28 Article 39 – Application for authorization. .................................................................................................................................29 Article 40 – Communication obligations. ..................................................................................................................................29

TITLE VII BALANCE SHEET, MANDATORY REGISTERS OF THE INSURANCE COMPANY, AUDIT ACCOUNTING............................................................................................................................................................................29 Article 41 – General provisions. .............................................................................................................................................29 Article 42 – Composition of the balance sheet. ...................................................................................................................................29 Article 43 – Mandatory registers..................................................................................................................................................30 Article 44 – Audit obligations.............................................................................................................................................................31 Article 45 – Particular provisions on audit......................................................................................................................................32

TITLE VIII ORGANIZATIONAL RULES, INTERNAL CONTROLS AND APPOINTED ACTUARY.......33 Article 46 – General principles. ......................................................................................................................................................33 Article 47 – Tasks of the board of directors, the head of the executive structure and the statutory auditors...33 Article 47 bis – Governance and control of insurance products .............................................................................................35 Article 48 – Internal control system...................................................................................................................................35 Article 49 – Information-accounting systems................................................................................................................................37 Article 50 – Delegation of business functions (outsourcing)...........................................................................................................37 Article 51 – Appointed Actuary...................................................................................................................................................38 Article 52 – Autonomy of the actuary and accounting control...................................................................................................39 Article 53 – Cessation of office. ........................................................................................................................................39

TITLE IX PRUDENTIAL SUPERVISION...................................................................................................................40 Chapter I General principles and technical bases for tariffs........................................................................................................................40 Article 54 – General principles for the determination of tariffs. ........................................................................................40 Article 55 – FINANCIAL BASES for the calculation of tariffs......................................................................................................41 Article 56 – TECHNICAL BASES other than financial bases for the calculation of tariffs........................................................41

Chapter II Maximum annual guaranteed interest rate ..................................................................................................................42 Article 57 – Maximum annual guaranteed interest rate...................................................................................................42

Chapter III Derogations from the maximum annual guaranteed interest rate ...............................................................................................43 Article 58 – PURE RISK insurance. ............................................................................................................................................................43 Article 59 – CONTRACTS WITH SPECIFIC ASSET PROVISION.............................................................................................43

Chapter IV Obligations of the appointed actuary regarding tariffs...........................................................................................................44 Article 60 – Evaluation of the tariff. ........................................................................................................................................44 Article 61 – Monitoring of financial guarantees...............................................................................................................45 Article 62 – Technical report on the tariff................................................................................................................................45

Chapter V Technical reserves...............................................................................................................................................................46 Article 63 – General principles on technical reserves for life insurance. ..............................................................................................46 Article 64 – Principles for the calculation of technical reserves.............................................................................................................47 Article 65 – Technical bases for the calculation of technical reserves. ....................................................................................................48 Article 66 – Mathematical reserve and reserve for future expenses. ..................................................................................................49

Chapter VI Regulation on technical reserves for contracts whose assets are valued at acquisition price ......................................49

Central Bank of the Republic of San Marino Regulation No. 2008-01 on life insurance business activities - Update XVII 4

Article 67 – General principles on technical reserves for contracts whose assets are valued at acquisition price. 49 Article 68 – Reserves for future expenses for contracts whose assets are valued at acquisition price. ........................50 Article 69 – Additional reserves for financial risk. .........................................................................................................50 Article 70 – Additional reserves other than reserves for financial risk......................................................................51 Article 71 – Additional reserve for demographic risk. ......................................................................................................51

Chapter VII Particular regulation on technical reserves for Unit and Index linked Contracts, Dedicated Contracts and Line VI contracts ..............................................................................................................................................................................................................51 Article 72 – Principles for the calculation of technical reserves for Unit linked Contracts and Line VI contracts................51 Article 73 – Principles for the calculation of technical reserves for Index linked Contracts.............................................................52 Article 74 – Principles for the calculation of technical reserves for Dedicated Contracts. ....................................................................52 Article 75 – Additional reserve for Unit and Index linked Contracts, Dedicated Contracts and Line VI contracts. ..............................................................................................................................................................................................................52

Chapter VIII Obligations of the appointed actuary regarding technical reserves...........................................................................................53 Article 76 – Evaluation of technical reserves................................................................................................................................53 Article 77 – Functions of the appointed actuary regarding technical reserves. ...................................................................................53 Article 78 – Technical report on the balance sheet. ................................................................................................................................54 Article 79 – Technical report on current and foreseeable yield. ..................................................................................54 Article 80 – Controls on current and foreseeable yield. .................................................................................................54 Article 81 – Controls on the solvency margin.......................................................................................................................55

Chapter IX Activities covering technical reserves................................................................................................................................55 Article 82 – Coverage of technical reserves. ..................................................................................................................................55 Article 83 – Location of assets covering technical reserves. .....................................................................................................56 Article 84 – Category of assets admissible to cover technical reserves. .........................................................................................................56 Article 85 – Valuation of asset portfolio................................................................................................................................59 Article 86 – Rules on congruence.........................................................................................................................................59 Article 87 – Concentration limits. .......................................................................................................................................60

Chapter X Contracts linked to a separate internal management .........................................................................................................60 Article 88 – Establishment of separate internal management......................................................................................................60 Article 89 – Rules of administration and management.................................................................................................................62

Chapter XI Particular regulation of Unit and Index linked Contracts, Dedicated Contracts and Line VI contracts ...................64 Article 90 – Contracts directly linked to indices, shares of OIC or Dedicated Funds......................................................64 Article 91 – Contracts directly linked to indices or other reference values (Index linked).............................65 Article 92 – Contracts directly linked to the value of shares of an OIC or to the value of assets contained in an Internal Fund held by the Insurance Company (Unit linked Contracts)..................................................................67 Article 93 – Regulation and mandatory documents of the Internal Insurance Fund. ......................................................68 Article 94 – Assets covering technical reserves of the Internal Fund. ..........................................................................71 Article 95 – Rules for the fractionation of assets covering technical reserves of the Internal Fund. ....................74 Article 96 – Separation of assets referable to individual Internal Funds or external OIC..................................................75 Article 97 – Contracts linked to Dedicated Internal Funds.......................................................................................................75

Chapter XII Requirements for capital adequacy..................................................................................................................................76 Article 98 – Solvency margin. .............................................................................................................................................76 Article 99 – Determination and calculation of the minimum required solvency margin.........................................................78 Article 100 – Minimum required solvency margin for insurance contracts under Line IV and for supplementary insurance under Article 5, paragraph 4.............................................................................................................................................................79 Article 101 – Guarantee quota..................................................................................................................................................80

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Article 102 – Demonstration table of the solvency margin situation. .............................................................81 Article 103 – Cession of risks in reinsurance. ...............................................................................................................................................81

Chapter XIII Safeguard measures...............................................................................................................................................81 Article 104 – Violation of rules on technical reserves or covering assets..................................................81 Article 105 – Violation of rules on solvency margin or guarantee quota. .............................................82 Article 106 – Intervention measures to protect the prospective solvency of the INSURANCE COMPANY. .................82 Article 107 – Procedure for placing a lien on asset portfolio. ................................................................................................................................83

TITLE X INFORMATIONAL AND INSPECTIVE SUPERVISION.........................................................................................83 Chapter I Informational supervision......................................................................................................................................................83 Article 108 – Variation of management body members. ................................................................................................................................84 Article 109 – Report on checks carried out by the internal control function. ..................................................................................................84 Article 110 – Communications by the statutory auditors................................................................................................................................84 Article 111 – Obligations of the audit firm. ...........................................................................................................................................84 Article 112 – Annual balance sheet. .............................................................................................................................................84 Article 113 – Supervisory reports. .....