(1) Insurance enterprises are to form technical provisions also insofar as this is necessary, when assessed exercising reasonable business judgment, in order to ensure that the obligations arising under insurance policies can be met at all times. In the process, they are to take into account the provisions of supervisory law enacted for the benefit of insured parties concerning the computational bases to be used in calculating the provisions, including the underlying actuarial interest rate to be used therefor, as well as the provisions of supervisory law concerning the allocation of certain gains to said provisions, to the exception of the stipulations made in sections 74 to 87 of the Act on the Supervision of Insurance Enterprises. The provisions are to be valued in accordance with the values prevailing on the balance sheet date and are not to be discounted pursuant to section 253 (2).
(2) Except for the cases governed by sections 341f to 341h, insurance technical provisions are to be formed in particular
1. for that part of the premiums that represents earnings for a given period after the balance sheet date (provisions for unearned premiums);
2. for performance-related and non-performance related premium refunds, insofar as the use of the provision exclusively for this purpose is assured by law, statutes, by a statement in the business plan or by contractual agreement (provisions for the reimbursement of premiums);
3. for losses that are likely to occur after the balance sheet date from policies concluded up to the end of the financial year (provision for anticipated losses from insurance business).
(3) Insofar as a valuation pursuant to section 252 (1) no. 3 or section 240 (4) is impossible or insofar as the expense entailed by such a valuation would be disproportionate, the provisions may be estimated on the basis of approximation methods if it is to be assumed that they will lead to approximately the same results as individual computations.