7.2.3.11 Reduction applicable to income derived from certain insurance contracts
When a deferred capital is received, the part of the benefit corresponding to premiums paid before December 31, 1994 that had been generated before January 20, 2006, will be reduced as follows:

The part of the total net income that corresponds to each of the premiums paid prior to December 31, 1994 will be determined. To determine the part of the total yield obtained that corresponds to each premium, said yield will be multiplied by the weighting coefficient resulting from the following quotient:

In the numerator, the result of multiplying the corresponding premium by the number of years elapsed since it was paid until the payment was collected.

In the denominator, the sum of the products resulting from multiplying each premium by the number of years elapsed since it was paid until the payment was collected.


To determine the part of the benefit that, corresponding to each of the premiums paid prior to December 31, 1994, has been generated prior to January 20, 2006, it will be multiplied by the weighting coefficient resulting from the following quotient:

In the numerator, the time elapsed between the payment of the premium and January 20, 2006.

In the denominator, the time elapsed between the payment of the premium and the date of collection of the benefit.


The total amount of the capital corresponding to the life insurance policies to whose net return the above described would have applied, obtained from January 1 until the moment of temporary allocation of the deferred capital, will be calculated.

When the sum of the deferred capital and the amount referred to in number 3 above is less than 400,000 euros, the amount to be reduced from the total net return will be determined. For these purposes, the percentage of 14.28 percent will be applied to each of the parts of the net performance calculated in accordance with the provisions of number 2 above for each year elapsed between the payment of the corresponding premium and December 31, 1994. When more than six years have passed between said dates, the percentage to be applied will be 100%.

When the sum of the deferred capital and the amount referred to in number 3 above is greater than 400,000 euros, but the result of the provisions of number 3 is less than 400,000 euros, the reduction indicated in section 4 above will be applied. each of the parts of the net income generated prior to January 20, 2006 that proportionally correspond to the part of the deferred capital that, added to the amount in section 3 above, does not exceed 400,000 euros.

6 When the result of the provisions of the third number above is greater than 400,000 euros, no reduction will be made.