Enhanced Measures on Selling of Annuity Insurance Products Annex 2: Requirements on the Annuity Payment Table

Annex 2

• 1 - Requirements on the Annuity Payment Table (A)If the proposed annuity insurance policy is a participating policy: The table should illustrate the amounts of the [monthly] 1 guaranteed annuity payment, [monthly] non-guaranteed annuity payment and [monthly] total annuity payment under the Current Assumed Basis, Pessimistic Scenario and Optimistic Scenario2 in the policy currency as well as when the income period will start. Example of presentation on the fact sheet: “Below is a table illustrating the amounts of projected [monthly] annuity payments starting from [the Nth policy year] / [Policy Year N] and the fluctuation under different scenarios/bases based on the benefit illustration. For details of the scenarios/bases, please refer to the benefit illustration. Currency: [HK$] Current Assumed Basis Pessimistic Scenario Optimistic Scenario [Monthly] guaranteed annuity payment [x,xxx] / [x,xxx-x,xxx] [Monthly] non-guaranteed annuity payment [x,xxx] / [x,xxx-x,xxx] [x,xxx] / [x,xxx-x,xxx] [x,xxx] / [x,xxx-x,xxx] [Monthly] total annuity payment [x,xxx] / [x,xxx-x,xxx] [x,xxx] / [x,xxx-x,xxx] [x,xxx] / [x,xxx-x,xxx] 1 If the annuity payment is not paid on monthly basis, the annuity payment according to the frequency of payment (e.g. quarterly or annual) should be used. 2 Under a particular scenario/basis, if there is more than one numerical amount for the annuity payments over the income period, a range should be used.

• 2 - (B)If the proposed annuity insurance policy is a universal life policy: The table should illustrate the amounts of the [monthly]1 total annuity payment under the [Guaranteed Basis] / [Conservative Basis], Current Assumed Basis, Pessimistic Scenario [if illustrated in the BI] and Optimistic Scenario [if illustrated in the BI]2 in the policy currency as well as when the income period will start. Example of presentation on the fact sheet: “Below is a table illustrating the amount of projected [monthly] annuity payments starting from [the Nth policy year] / [Policy Year N] and the fluctuation under different scenarios/bases based on the benefit illustration. For details of the scenarios/bases, please refer to the benefit illustration. Currency: [HK$] [Guaranteed Basis] / [Conservative Basis] Current Assumed Basis Pessimistic Scenario [if illustrated in the BI] Optimistic Scenario [if illustrated in the BI] [Monthly] total annuity payment [x,xxx] / [x,xxx-x,xxx] [x,xxx] / [x,xxx-x,xxx] [x,xxx] / [x,xxx-x,xxx] [x,xxx] / [x,xxx-x,xxx]