Laws of Vietnam

1. The provisions on charter capital of insurance enterprises and insurance brokerage enterprises shall comply with Article 5 of the Government’s Decree No. 43/2001/ND-CP of August 1, 2001 prescribing the financial regime for insurance enterprises and insurance brokerage enterprises.

2. Contributed charter capital of insurance enterprises and insurance brokerage enterprises is the amount of charter capital actually contributed by owners to the enterprises.

3. Where insurance enterprises or insurance brokerage enterprises, which had been established, organized and operating before the effective date of the Insurance Business Law, have a charter capital level lower than the legal capital level prescribed in Article 4 of the Government’s Decree No. 43/2001/ND-CP of August 1, 2001 prescribing the financial regime for insurance enterprises and insurance brokerage enterprises, they must elaborate plans for making sufficient additions to their charter capital within three years, and report them to the Ministry of Finance.

If, after three years, insurance enterprises or insurance brokerage enterprises still fail to make sufficient additions to the contributed charter capital as prescribed, they shall be considered as failing to satisfy the financial requirements and the Ministry of Finance may withdraw their establishment and operation licenses under the provisions at Point f, Clause 1, Article 68 of the Insurance Business Law.

II. ESCROW AMOUNTS

1. The escrow depositing by insurance enterprises shall comply with Article 6 of the Government’s Decree No. 43/2001/ND-CP of August 1, 2001 prescribing the financial regime for insurance enterprises and insurance brokerage enterprises.

2. Where the escrow amounts of insurance enterprises are lower than the levels set in Clause 2, Article 6 of the Government’s Decree No. 43/2001/ND-CP of August 1, 2001 prescribing the financial regime for insurance enterprises and insurance brokerage enterprises, such insurance enterprises shall have to supplement the escrow amounts as prescribed.

3. Where the escrow amounts of insurance enterprises are higher than the levels set in Clause 2, Article 6 of the Government’s Decree No. 43/2001/ND-CP of August 1, 2001 prescribing the financial regime for insurance enterprises and insurance brokerage enterprises, such insurance enterprises may readjust their escrow amounts to the prescribed levels.

III. INSURANCE OPERATION RESERVES

1. Insurance operation reserves are amounts which must be deducted by enterprises in order to cover pre-determined insurance liabilities arising from the signed insurance contracts.

2. Insurance enterprises must make deductions to set up adequate insurance operation reserves for each insurance operation and each insurance contract corresponding to their retained liability proportion.

3. For non-life insurance business enterprises:

3.1. Non-life insurance business enterprises must set up various insurance operation reserves as provided for in Article 8 of the Government’s Decree No. 43/2001/ND-CP of August 1, 2001 prescribing the financial regime for insurance enterprises and insurance brokerage enterprises.

3.2. Non-life insurance business enterprises may opt for method of making deductions to set up non-life insurance operation reserves under the guidance at Point 3.4, Clause 3, Section III of this Circular or other methods of making deductions for setting up operation reserves suitable to their business activities but must register the deduction method with the Ministry of Finance before application.

3.3. In a fiscal year, non-life insurance business enterprises must not change the method of making deductions to set up insurance operation reserves. Where they shift to another method for the subsequent fiscal year, they must re-register it with the Ministry of Finance by December 1 of the current fiscal year at the latest.

3.4. The method of making deductions for setting up non-life insurance operation reserves:

a/ The reserve for premiums not yet earned:

- The method of making deductions according to a percentage of total insurance premiums:

+ For insurance of cargoes transported by land, sea, river, railway and air: An amount equal to 17% of total insurance premiums of this insurance operation, retained in the fiscal year.

+ For other insurance operations: An amount equal to 40% of total insurance premiums of these insurance operations retained in the fiscal year.

- The method of making deductions according to co-efficients of insurance contract durations:

+ For insurance of cargoes transported by land, sea, river, railway and air: To apply a co-efficient of 1/8.

For example: Assuming that all insurance premiums calculated in a given quarter are supposed to belong to contracts which are effective by mid of this quarter, i.e. there is uniform distribution thereof among the quarters and the date of closing accounting records is December 31, 2000. The time for making deductions to set up the reserve for premiums not yet earned is December 31, 2000 and such deductions shall be calculated for 2001.

The reserve for premiums not yet earned is calculated according to the following formula:

The reserve The percentage of
for premiums = Insurance premiums x insurance premiums
not yet earned not yet earned

+ For other insurance operations with a duration of up to one year: To apply the deduction method using co-efficient of 1/24 or 1/365.

* The deduction method using co-efficient of 1/24: For example, assuming that all insurance contracts exploited in a given month are effective from the mid of the month and the date for closing accounting records is December 31, 2000. The time for making deductions to set up the reserve for premiums not yet earned is December 31, 2000 and such deductions shall be calculated for 2001.

The reserve for premiums not yet earned shall be calculated according to the following formula:

The reserve The percentage of
for premiums = Insurance premiums x insurance premiums
not yet earned not yet earned

* The deduction method using co-efficient of 1/365: For example, assuming that all insurance contracts have a duration of 12 months. The reserve for premiums not yet earned shall be calculated according to the following formula:

The number of remaining
The reserve for days of the insurance contract
premiums = Insurance premiums x —————————————
not yet earned 365

+ For insurance operations with a duration of over one year: To apply the deduction method according to a percentage of 40% of the total amount of retained insurance premiums of these operations in the fiscal year.

b/ The reserve for compensation for unsettled claims:

- The reserve for compensation for losses already claimed but not yet settled by the end of the fiscal year:

+ By the statistical method:

Total compensation for losses already
claimed but not yet settled at the end of each
The average reserve for of the latest three consecutive fiscal years
compensation for losses already = ———————————————————
claimed but not yet settled 3

* Where the average reserve for compensation for losses already claimed but not yet settled, which is calculated according to the above formula, is higher than the preceding fiscal year’s total amount of compensation for losses already claimed but not yet settled, the reserve for compensation for losses already claimed but not yet settled shall equal the average one.

* Where the average reserve for compensation for losses already claimed but not yet settled, which is calculated according to the above formula, is lower than or equal to the preceding fiscal year’s total amount of compensation for losses already claimed but not yet settled, the reserve for compensation for losses already claimed but not yet settled shall be calculated according to the following formula:

The The The The growth rate
reserve for preceding fiscal preceding fiscal of collectible
compensation year’s reserve year’s reserve for insurance
for losses = for compensation + compensation for x premiums arising
already claimed for losses already losses already in the fiscal year
but not yet claimed but claimed but - from the signed
settled not yet settled not yet settled insurance contracts

+ By the dossier-based method: The deduction level shall be calculated on the basis of summing up the to-be-compensated amounts for each dossier of claim filed with the insurance enterprise which remains unsettled by the end of the fiscal year.

- The reserve for compensation for arising losses which fall under the insurance liability but have not yet been claimed shall be calculated by the statistical method:

The average The total amount of losses not yet
reserve for claimed by the end of each of the Insurance
compensation latest three consecutive fiscal years premiums
for losses = ———————————————— x retained
not yet The total amount of insurance premiums in the
claimed retained in the corresponding three years fiscal year

* Where the average reserve for compensation for losses not yet claimed, which is calculated according to the above formula, is higher than the preceding fiscal year’s total amount of compensation for losses not yet claimed, the reserve for compensation for losses not yet claimed shall equal the average one.

* Where the average compensation reserve for losses not yet claimed, which is calculated according to the above formula, is lower than or equal to the preceding fiscal year’s total amount of compensation for losses not yet claimed, the reserve for compensation for losses not yet claimed shall be calculated according to the following formula:
The grow rate
The of collectible
The reserve The preceding preceding insurance
for fiscal year’s fiscal year’s premiums
compensation = reserve for + reserve for x arising in the
for losses compensation compensation fiscal year from
not yet claimed for losses for losses not the signed
not yet claimed yet claimed insurance
contracts)

c/ The reserve for compensation for big fluctuations of loss: To be set up and added annually till it is equal to the amount of premiums actually retained in the fiscal year by the insurance enterprise. The calculation of annual deductions for setting up this reserve shall be made according to the statistical method.

4. For life insurance business enterprises:

4.1. Life insurance business enterprises must set up insurance operation reserves as provided for in Article 9 of the Government’s Decree No. 43/2001/ND-CP of August 1, 2001 prescribing the financial regime for insurance enterprises and insurance brokerage enterprises.

4.2. Life insurance business enterprises may opt for the method of making deductions for setting up non-life insurance operation reserves under the guidance at Point 4.4, Clause 4, Section III of this Circular or other methods of making deductions for setting up operation reserves suitable to their business activities but must register such methods with the Ministry of Finance before application.

4.3. Life insurance business enterprises must not change the method of making deductions for setting up insurance operation reserves for insurance products, which has been approved by the Ministry of Finance.

Where the enterprises are in danger of losing their solvency or there are substantial fluctuations in the death rate and/or technical interest, the Ministry of Finance may request or permit the enterprises to change to a suitable method of making deductions to set up insurance reserves.

4.4. Method of making deductions for setting up life insurance operation reserves:

a/ Mathematical reserves:

- The net premium reserve method:

The net premium reserve is calculated according to the following principle:

The net The current value of total The current value of
premium = insurance liability - total net premiums
reserve payable in future collectible in future

For example, for combined life insurance contracts involving profit share and constant periodical insurance premiums, the net insurance premium reserve is calculated according to the following formula:

in which:

x is the age group of the insured persons eligible for insurance

t is the effective duration of the insurance contract, starting from the time of its signing

n is the term of the insurance contract

S is the insurance sum

- The gross premium reserve method:

The gross premium reserve is calculated according to the following principle:

The current The current The current
The gross value of total value of total value of total
premium = insurance + estimated - gross premiums
reserve liability payable expenditures collectible
in future in future in future

For example, for combined life insurance contracts without division of profits, involving constant periodical insurance premiums and regardless of the rate of insurance contract cancellation, the gross insurance premium reserve is calculated according to the following formula:

in which:

x is the age group of the insured persons eligible for insurance

t is the effective duration of the insurance contract, starting from the time of its signing

n is the term of the insurance contract

S is the insurance sum

RE is the supposed expenses of the renewed contractual year to be included in the insurance premiums

P’ is the gross insurance premium.

b/ The reserve of premiums not yet earned applicable to contracts of a term of under one year:

This reserve shall apply only to insurance contracts involving periodical premium payments and be calculated according to the following formula:

The remaining duration of the
The insurance permium payment period
The reserve = periodical x ———————————————
premium The total duration of the insurance
premium payment period

The remaining duration of the premium payment period and the total duration of the premium payment period shall be calculated in months or days; if calculated in months, the remaining duration of the premium payment period shall be rounded down.

c/ The compensation reserve: To be set up by the dossier-based method with the deduction levels calculated on the basis of sums of insurance payable for each dossier of claim already filed with the insurance enterprises but not yet settled by the end of each fiscal year.

d/ The profit-sharing reserve: To be applicable only to contracts involving shared profits which are accumulated through the insurance contractual years and calculated according to the following formula:

The profit- The total profit shared The accumulated value of the profit
sharing = to the contract owner + shared to the contract owner in the previous
reserve in the fiscal year fiscal years but not yet paid thereto

e/ The balance assurance reserve: To be set up and added annually till it is equal to 5% of the insurance premiums collected by an insurance enterprise in the fiscal year. The annual deduction level is 1% of the pre-tax profit of each insurance enterprise.

IV. CAPITAL INVESTMENT

The insurance enterprises shall invest their capital under the provisions in Section 3, Chapter II of the Government’s Decree No. 43/2001/ND-CP of August 1, 2001 prescribing the financial regime for insurance enterprises and insurance brokerage enterprises.

V. SOLVENCY OF INSURANCE ENTERPRISES

1. The insurance enterprises must maintain their solvency throughout the process of their insurance business activities under the provisions of Article 14 of the Government’s Decree No. 43/2001/ND-CP of August 1, 2001 prescribing the financial regime for insurance enterprises and insurance brokerage enterprises.

2. An insurance enterprise is in danger of losing its solvency when its solvency limit is lower than the minimum one.

3. The minimum solvency limit:

a/ The minimum solvency limit of a non-life insurance business enterprise is equal to 20% of the total amount of insurance premiums actually retained at the time of determination of the solvency limit.

For example: At the time of determination of its solvency limit, insurance enterprise A, which conducts non-life insurance business, has VND 1,000 billion as total amount of actually retained insurance premiums. Its minimum solvency limit would be VND 1,000 billion x 20% = VND 200 billion.

b/ The minimum solvency limit of life insurance business enterprises:

- For life insurance contracts with a term of 10 years or under, it is equal to the sum of 4% of the insurance operation reserve plus 0.1% of the insurance amount at risk;

- For life insurance contracts with a term of over 10 years, it is equal to the sum of 4% of the insurance operation reserve plus 0.3% of the insurance amount at risk.

For example: At the time of determination of its solvency limit, insurance enterprise B, which is engaged in life insurance business, has:

+ VND 200 billion as operation reserve for life insurance contracts with a term of 10 years or under.

+ VND 20,200 billion as total insurance amount of life insurance contracts with a term of 10 years or under.

+ VND 300 billion as operation reserve for life insurance contracts with a term of over 10 years.

+ VND 50,300 billion as total insurance amount of life insurance contracts with a term of over 10 years.

The minimum solvency limit of insurance enterprise B would be: (4% x VND 200 billion) + 0.1% (VND 20,200 billion - VND 200 billion) + (4% x VND 300 billion) + 0.3% (VND50,300 billion - VND 300 billion) = VND 8 billion + VND 20 billion + VND 12 billion + VND 150 billion = VND 190 billion.

4. The solvency limit of an insurance enterprise is the difference between the asset value and the payable debts of the enterprise.

VI. TURNOVER AND EXPENDITURES OF INSURANCE ENTERPRISES

1. Turnover:

1.1. Turnover of an insurance enterprise consists of revenues as specified in Article 19 of the Government’s Decree No. 43/2001/ND-CP of August 1, 2001 prescribing the financial regime for insurance enterprises and insurance brokerage enterprises, including:

a/ Turnover from insurance business activities: Collected principal insurance premiums, charges for re-insurance acceptance; collected commissions for re-insurance ceding, collected charges for agency services including loss assessment, consideration and payment of compensations, request of indemnification by a third party, handling of 100% compensated goods; collected charges for loss assessment, excluding the assessment requested among internal accounting member units within the same independent accounting insurance enterprise, subtracting the to be-spent amounts for revenue reduction such as refunded insurance premiums, reduced insurance premiums charges for re-insurance ceding, refunded charges for re-insurance acceptance, reduced charges for re-insurance acceptance; refunded commissions for re-insurance ceding; reduced commissions for re-insurance ceding.

b/ Turnover from financial activities: Revenues from investment activities as specified in Section 3, Chapter II of the Government’s Decree No. 43/2001/ND-CP of August 1, 2001 prescribing the financial regime for insurance enterprises and insurance brokerage enterprises; revenues from the sale and purchase of securities; collected interests on escrow amounts; revenues from the lease of assets; reimbursed balance of the reserve for decrease in the securities prices and revenues from other financial activities as provided for by law.

c/ Incomes from other activities: Proceeds from the sale and liquidation of fixed assets; recovered bad debts which had been written off; collected fines on contractual breaches and other revenues as provided for by law.

1.2. The principles for determination of turnover:

a/ Turnover from insurance business activities, which consists of collectible money amounts arising in the period, shall be determined according to the following principle:

- Insurance enterprises shall account collected principal premiums in their incomes when their insurance liabilities arise toward the insurance buyers under the provisions of Article 15 of the Insurance Business Law.

- For the remaining revenues: Insurance enterprises shall account them in their incomes right after the economic activities arise and there is evidence of acceptance of payment by the involved parties, regardless of whether or not they have been collected.

- For amounts to be spent in order to reduce revenues: Insurance enterprises shall account them as income decrease immediately after the economic activities arise and there is evidence of acceptance of payment by the involved parties, regardless of whether or not they have been paid.

b/ Turnover from financial activities means the collectible amounts arising in the fiscal year.

c/ Incomes from other activities mean all proceeds from the sale of goods and the provision of services after subtracting (-) decreased amounts in the prices of sold goods or returned sold goods (if they are accompanied with valid vouchers), which the customers accept to pay, regardless of whether or not they have been collected.

1.3. The insurance enterprises’ revenues arising in the period must be accompanied with valid invoices or vouchers and fully accounted in their turnover.

2. Expenditures:

2.1. The insurance enterprises’ expenditures, which are payable and deductible amounts arising in the period as specified in Article 20 of the Government’s Decree No. 43/2001/ND-CP of August 1, 2001 prescribing the financial regime for insurance enterprises and insurance brokerage enterprises, include:

2.1.1. Expenditures on business insurance activities:

a/ Compensation paid for principal insurance, for non-life insurance, paid insurance, for life insurance; compensation paid for re-insurance acceptance when insured events occur as committed in insurance contracts or re-insurance contracts, subtracting collectible amounts in order to reduce expenses such as collected compensations for re-insurance transfer, indemnities collected from third parties, collected goods which have been already handled and compensated 100%;

b/ Deductions for setting up the operation reserves as provided for in Section III of this Circular;

c/ Paid insurance commissions as provided for at Point 3, Section II of the Finance Ministry’s Circular No. 71/2001/TT-BTC of August 28, 2001 guiding the implementation of the Government’s Decree No. 42/2001/ND-CP of August 1, 2001 detailing the implementation of a number of articles of the Insurance Business Law;

d/ Expenses for loss assessment under the provisions of Article 26 of the Government’s Decree No. 42/2001/ND-CP of August 1, 2001 detailing the implementation of a number of articles of the Insurance Business Law;

e/ Expenses for agency services, including loss assessment, consideration and payment of compensations, request of indemnification by third parties;

f/ Expenses for handling of 100% compensated goods;

g/ Expenses for management of insurance agents;

h/ Expenses for risk and loss prevention and restriction as provided for in Section VIII of the Finance Ministry’s Circular No. 71/2001/TT-BTC of August 28, 2001 guiding the implementation of the Government’s Decree No. 42/2001/ND-CP of August 1, 2001 detailing the implementation of a number of articles of the Insurance Business Law;

i/ Expenses for assessment of risks of insurance subjects, including expenses for gathering of information on, investigation and evaluation of, insurance subjects;

j/ Salaries, wages, bonuses, severance allowances and amounts of wage or salary nature according to the relevant law provisions applicable to each type of enterprise;

k/ Social insurance and health insurance payable according to law provisions;

l/ Other expenses according to the relevant law provisions applicable to each type of enterprise.

2.1.2. Expenditures on financial activities, which are amounts to be spent in the fiscal year, include:

a/ Expenses for investment activities as provided for in Section 3, Chapter II of the Government’s Decree No. 43/2001/ND-CP of August 1, 2001 prescribing the financial regime for insurance enterprises and insurance brokerage enterprises;

b/ Interests paid to life insurance contract owners as committed in the signed insurance contracts;

c/ Expenses for the lease of assets;

d/ Banking fees and loan interests;

e/ Deductions for the reserve for decrease in the securities prices.

f/ Other expenses as provided for by law.

2.1.3. Expenditures on other activities, which are amounts to be spent in the fiscal year, include:

a/ Expenses for the sale and liquidation of fixed assets;

b/ Expenses for the recovery of already-forgiven bad debts which are now recoverable;

c/ Fines for contractual breaches;

d/ Other expenses as prescribed by law.

2.2. Insurance enterprises must not account into their expenditures the following amounts:

a/ Fines payable by collectives and individuals for their law violations;

b/ Expenses for capital construction investment, procurement of fixed assets, allowances for laborers meeting with difficulties, donations for organizations and individuals according to the relevant law provisions applicable to each type of enterprise;

c/ Public service expenses, rewards, welfare expenses, regular and irregular difficulty allowances, and other expenses covered by other funding sources;

d/ Other unreasonable expenses as prescribed by law.

VII. TURNOVER AND EXPENDITURES OF INSURANCE BROKERAGE ENTERPRISES

1. Turnover

Turnovers of insurance brokerage enterprises as prescribed in Article 22 of the Government’s Decree No. 43/2001/ND-CP of August 1, 2001 prescribing the financial regime for insurance enterprises and insurance brokerage enterprises, include:

1.1. Turnover from insurance brokerage activities, consisting of collectible amounts arising in the period.

1.2. Turnover from financial activities, consisting of collectible amounts arising in the fiscal year.

1.3. Incomes from other activities, consisting of all proceeds from the sale of goods and the provision of services after subtracting (-) the decreased amounts of the prices of sold goods, returned sold goods (if they are accompanied with valid vouchers), which the customers accept to pay, regardless of whether they have been collected or not.

2. Expenditures

2.1. The insurance brokerage enterprises’ expenditures consist of payable amounts arising in the period as prescribed in Article 23 of the Government’s Decree No. 43/2001/ND-CP of August 1, 2001 prescribing the financial regime for insurance enterprises and insurance brokerage enterprises.

2.2. The insurance brokerage enterprises’ expenditures arising in the period must be accompanied with valid invoices or vouchers.

VIII. PROFITS AND DISTRIBUTION OF PROFITS

Profits and distribution of profits of insurance enterprises and insurance brokerage enterprises shall comply with the provisions of Chapter V of the Government’s Decree No. 43/2001/ND-CP of August 1, 2001 prescribing the financial regime for insurance enterprises and insurance brokerage enterprises.

IX. THE REPORTING REGIME

Insurance enterprises and insurance brokerage enterprises shall have to make and send financial statements, statistical reports and operation reports according to current law provisions.

1. Financial statements:

1.1. Insurance enterprises and insurance brokerage enterprises shall carry out final financial settlement and observe all regulations on financial statements, make and send financial statements to the State’s finance offices, the statistic offices and tax offices according to current law provisions.

1.2. Accounting balance sheets as well as reports on business operation results and monetary circulation must be certified by independent auditing organizations licensed to operate in Vietnam.

2. Statistical reports, operation reports: Insurance enterprises and insurance brokerage enterprises shall make and send to the Ministry of Finance quarterly and annual statistical reports and operation reports, specifically as follows:

- For non-life insurance business enterprises:

+ Report on the insurance premium turnover: according to form No. 1-PNT

+ Report on insurance compensation: according to form No. 2-PNT

+ Report on the payment of insurance commissions: according to form No. 3-PNT

+ Report on deductions for setting up the operation reserve: according to form No. 4-PNT

+ Report on investment activities: according to form No. 5-PNT

+ Report on solvency: according to form No. 6-PNT (insurance enterprises shall make annual reports only).

- Particularly for Vietnam National Re-insurance Company, apart from the reports made according to forms No. 4-PNT, No. 5-PNT and No. 6-PNT above, it must make and send also the following reports:

+ Report on re-insurance turnover: according to form No. 1-TBH

+ Report on re-insurance compensation: according to form No. 2-TBH

+ Report on collection and payment of re-insurance commissions: according to form No. 3-TBH

- For life insurance business enterprises:

+ Report on the number of contracts and the life insurance amounts: according to form No. 1-NT

+ Report on life insurance premium turnover: according to form No. 2-NT

+ Report on the payment of life insurance amounts: according to form No. 3-NT

+ Report on life insurance commissions: according to form No. 4-NT

+ Report on the cancellation of life insurance contracts: according to form No. 5-NT

+ Report on the deductions for setting up the operation reserve: according to forms from No. 6-NT(A) to 6-NT(E)

+ Report on investment activities: according to form No. 7-NT

+ Report on solvency: according to form No. 8-NT (insurance enterprises shall make annual reports only).

- For insurance brokerage enterprises: According to the form of report on insurance brokerage activities - form No. 1-MGBH.

- Quarterly reports: Insurance enterprises must make and send them to the Ministry of Finance within 30 days after the end of each quarter.

- Annual reports: Insurance enterprises must make and send them to the Ministry of Finance within 90 days after the end of each fiscal year.

3. Financial publicity for insurance enterprises and insurance brokerage enterprises: On a quarterly basis, insurance enterprises and insurance brokerage enterprises must make and send financial statements to State management bodies stated at Point 1, Section VII of this Circular.

4. Supervision and inspection of the observance of financial regimes

The Managing Boards, the general directors (directors) of insurance enterprises and insurance brokerage enterprises shall have to give explanations on relevant financial issues at the requests of State management bodies performing State management functions according to law provisions.

4.1. Insurance enterprises and insurance brokerage enterprises shall be accountable for the accuracy and truthfulness of their financial statements. The financial supervisions shall be conducted in the following forms:

a/ Periodical or unexpected supervision;

b/ Supervision by topic according to the financial management requirements.

4.2. Insurance enterprises and insurance brokerage enterprises, which violate the State’s financial regimes, shall be sanctioned according to law provisions.

VIII. ORGANIZATION OF IMPLEMENTATION

1. This Circular takes effect for implementation from August 16, 2001. Particularly for the setting up of operation reserves, accounting of turnover, expenditures, profits, profit distribution as well as the reporting regime, the insurance enterprises and insurance brokerage enterprises shall abide by current regulations till the end of 2001.

2. The Finance Ministry’s Circular No. 45/TC-CDTC of May 30, 1994 stipulating the financial management regime applicable to insurance enterprises ceases to be effective as from the effective date of this Circular.

3. Any problems arising in the course of implementation should be reported to the Ministry of Finance for study and settlement.

For the Minister of Finance
Vice Minister
LE THI BANG TAM