Credit to the ageing provision; direct credit

(1) In medical expense insurance and voluntary long-term care insurance (long-term care cost and long-term care daily allowance insurance) conducted in the manner of life insurance, the insurance undertaking must credit the insured, each year, with interest income attributable to the sum of the respective positive ageing provisions of the insurance policies concerned existing at the end of the preceding financial year. This credit amounts to 90 percent of the average investment income exceeding the actuarial interest rate (excess interest).
(2) Until the end of the financial year in which they reach the age of 65, the insured who have paid the premium loading under section 149 must be credited, each year, in full and directly, with the portion of the amount determined under subsection (1) that is attributable to the part of the ageing provision arising from that premium loading. Of the remaining amount, 50 percent must be credited directly, each year, to the ageing provision of all insured persons. The percentage under the second sentence increases, from the insurance undertaking's financial year beginning in 2001, by 2 percent each year, until it reaches 100 percent.
(3) From the insured person's 65th birthday, the amounts under subsection (2) must be used for the indefinite financing of the additional premiums arising from premium increases, or of part of those additional premiums, insofar as the available funds are not sufficient for full financing of the additional premiums. Unused amounts must be applied to reduce premiums once the insured person reaches the age of 80. Credits made after that point must be applied to an immediate premium reduction. In voluntary long-term care daily allowance insurance, the terms of insurance may provide that, instead of a premium reduction, a corresponding increase in benefits is made.
(4) The portion of the interest income determined under subsection (1) remaining after deduction of the amounts used under subsection (2) must be earmarked, for the insured who have reached the age of 65 on the balance sheet date, for a non-profit-related premium refund, and used within three years to avoid or limit premium increases or to reduce premiums. The premium reduction under the first sentence may be limited so that the insured person's premium does not fall below that applicable at the original age of entry; the unused portion of the credit must then additionally be credited under subsection (2).