Chapter I. General Provisions

(Object of this Law) Article 1. The object of this Law is to furnish the people with an easily accessible form of annuity insurance by sound operation and at moderate premium rates with a view to stabilizing their economic life and promoting their welfare.

(Post Office Annuities as State Function) Article 2. The annuity insurance operated by the State in accordance with the provisions of this Law (hereinafter to be referred to as "Post Office Annuities" ) is a nonprofit enterprise, and falls under the jurisdiction of the Ministry of Postal Services.

(Representative Organ) Article 3. Matters relating to the conclusion of the Post Office Annuity contract, and the rights and duties thereunder shall be execised by the Director of the Post Office Life Insurance Bureau of the Ministry of Postal Services. 2 The Director of the Post Office Life Insurance Bureau of the Ministry of Postal Services may delegate his powers prescribed in the preceding paragraph, concerning matters of detail, to Masters of Local Post Office Life Insurance Offices, Directors of Local Postal Services Bureaus or to the Postmasters.

(Exemption from Stamp Duty) Article 4. Any documents relating to Post Office Annuities shall be exempt from stamp duty.

Chapter II. Contract

(Annuity Contract) Article 5. The Post Office Annuity contract (hereinafter to be referred to as "annuity contract" ) shall be one whereunder the State promises to pay the annuity to an annuity policyholder or third party on the servival of such person, and in consideration thereof, the annuity policyholder promises to pay the premium to the State. 2 Under the annuity contract mentioned in the preceding paragraph, a promise may be made to the effect that, in case an annuitant dies within the specified period of time from the happening of the event wherein the annuity becomes payable, further continuance of annuity payment be made, during such remaining period, to the person designated by the annuitant or, in case no such person exists, to the person mentioned in Article 22.

(Annuities Policy Conditions) Article 6. The annuity contract shall be concluded by the Post Office Annuities Policy Conditions (hereinafter to be referred to as "Annuities Policy Conditions" ) which provide the following matters, as well as by the provisions of this Law: (1) Matters relating to the amount of annuity and premium (including matters relating to the assumed rate of interest); (2) Matters relating to the annuity paying period and annuity commencing age; (3) Matters relating to entry age; (4) Matters relating to the formation of the annuity contract; (5) Matters relating to premium payment, the grace period and refund of premiums; (6) Matters relating to payment of the annuity; (7) Matters relating to change in and rescission of an annuity policy, change of address and change of parties to the annuity policy, and misstatement of the age of an annuitant; (8) Matters relating to payment of refund money; (9) Matters relating to loans to annuity policyholders and others; (10) Matters relating to distribution of surplus. 2 The Annuities Policy Conditions shall be determined by the Minister of Postal Services through the deliberation of the Post Office Life Insurance and Annuites Enterprise Deliberation Committee. 3 The Annuities Policy Conditions must be published in the Official Gazette. 4 This Law and the Annuities Policy Conditions must be available at the Post Office for inspection by the applicants for annuity contracts.

(Enjoyment of Benefit by Third Party) Article 7. In case an annuitant, person who is to receive the annuity in accordance with the provisions of Article 5, Paragraph 2 (hereinafter to be referred to as "successive annuitant" ) or person who is to receive refund money in accordance with the provisions of Article 28 or 29 (hereinafter to be referred to as "recevier of refund money" ) is a third party, such third party shall, as a matter of course, be entitled to the benefit of an annuity policy.

(Representative of Parties to Policy) Article 8. In case there exist two or more annuity policyholders successive annuitants or receivers of refund money with respect to one and the same annuity policy, they must choose one representative respectively from among themselves. In this case, such representative shall respectively represent any other annuity policyholders, successive annuitants or receivers of refund money with respect to the said policy. 2 In case the representative mentioned in the preceding paragraph has not been chosen or the whereabouts of such person is unknown, any measures taken, with respect to the annurty policy concerned, against any one of the annuity policyholders shall be binding on such other person.

(Joint Liability) Article 9. In case there exist two or more annuity policyholders or successive annuitants with respect to one and the same annuity policy, they shall jointly and severally liable for any premiums in arrears, loan outstanding or any other indebtedness due to the State with respect to such policy.

(Kind of Annuities) Article 10. Post Office Annuities shall be Immediate Life Annuity with a guaranteed period (hereinafter to be referred to as "Guaranteed Immediate Annuity" ), Deferred Life Annuity with a guaranteed period (hereinafter to be referred to as "Guaranteed Deferred Annuity" ), and Term Annuity.

(Guaranteed Immediate Annuity) Article 11. A Guaranteed Immediate Annuity is one whereunder not only the annuity is paid from the effective date of an annuity policy until the death of an annuitant, but, upon the death of such person within the specified period of time, continued annuity payment is made, during such remaining period, to a successive annuitant.

(Guaranteed Deferred Annuity) Article 12. A Guaranteed Deferred Annuity is one whereunder not only the annuity is paid from the date on which an annuitant has attained to the annuity commencing age until the death of such person, but, upon the death of such person within the specified period of time, continued annuity payment is made, during such remaining period, to a sucessive annuitant.

(Term Annuity) Article 13. A Term Annuity is one whereunder the annuity is paid, for a specified period of time during the lifetime only of an annuitant, from the date on which the annuitant has attained to the annuity commencing age.

(Amount of Annuity) Article 14. The amount of annuity shall not exceed 120,000 yen per annum per annuitant. 2 The amount of annuity must be 6,000 yen or more per annum per policy, provided that this shall not apply in the case where, in accordance with the provisions of Article 30, the amount of annuity has been reduced in lieu of repayment of a loan.

(Bases of Premium Calculation) Article 15. The premium shall be calculated on the following bases: (1) In the case of the Guaranteed Immediate and Guaranteed Deferred Annuity, Mortality Table compiled by deducting, for the males, 20 per cent from the male mortality rates, and, for the females, 30 per cent from the be male mortality rates, of Life Table No.5 published in 1936 by the Government Statistics Bureau; In the case of the Term Annuity, Mortality Table compiled by deducting 20 per cent from the male mortality rates of Life Table No.5 published in 1936 by the Government Statistics Bureau; (2) Assumed rate of interest prescribed by the Annuities Policy Conditions; (3) Loading representing, in the case of a single premium policy, the amount not more than a sum equal to 10 per cent of the net premium calculated in accordance with the provisions of the preceding two items and, in the case of an instalment premium policy, the amount not more than a sum equal to 15 per cent of the net premium calculated in accordance with the provisions of the preceding two items.

(Method of Reserve Calculation) Article 16. The reserve to be accumulated for an annuitant shall be calculated by the net premium method on the bases mentioned in the preceding Article.

(Formation of Contract and Effective Date) Article 17. The annuity contract shall, on approval of application therefor, be deemed to have been formed on the day of application, and shall take effect as from the said day.

(Annuity Policy and Standard Policy Conditions) Article 18. On approval of the application for an annuity contract, an annuity policy shall be executed and delivered to the annuity policyholder. 2 The following matters shall be required to be stated in an annuity policy: (1) Kiud of annuity; (2) In the case of the Guaranteed Deferred and Term Annuity, the annuity, commencing age; (3) In the case of the Guaranteed Immediate and Guaranteed Deferred Annuity, the period of time during which continued annuity payment is made to a successive annuitant in accordance with the provisions of Article 11 or 12; (4) In the case of the Term Annuity, the annuity paying period; (5) Amount of annuity; (6) Amount of a premium and the method of payment thereof; (7) Full name or alias of the annuity policyholder; (8) Full name, date of birth and sex of an annuitant; (9) Effective date of the annuity policy; (10) Date of issue of the annuity policy. 3 Of the Annuities Policy Conditions, the following matters (Standard Policy Conditions) must be stated in an annuity policy, provided that, in lieu of such statement a slip of paper with such statement may be attached thereto: (1) Matters relating to grace period of a premium payment; (2) Matters relating to misstatement of an age; (3) Matters relating to payment of refund money; (4) Matters relating to loans to annuity policyholders and others; (5) Matters relating to distribution of Surplus.

(Lapse of Contract of Policy) Article 19. In case the grace period prescribed by the Annuities Policy Conditions has elapsed without the payment of the premium by an annuity policyholder, an annuity policy shall lapse.

(Paid-up Annuity Policy) Article 20. An annuity policyholder may, irrespective of the provisions of the preceding Article, apply, in accordance with the provisions of the Annuities Policy Conditions, for change of an annuity policy into a paid-up one within three months from the expiration of the grace period mentioned in the said Article.

(Premium Payment in Case of Annuity Policyholder's Bankruptcy) Article 21. If, in the case of an annuitant being a third party, an annuity policyholder has been adjudged bankrupt, the State may claim premium payment from such annuitant, provided that this shall not apply in case the annuitant has waived his right as such.

(Successive Annuitant in Case of Non-designation) Article 22. In case there exists no successive annuitant designated by an annuitant (including the case where such designated person has died and no new successive annuitant has been designated), the spouse (including the person who is virtually, if not formally notified, in matrimonial relation;herinafter the same), child, father and mother, grandchild, grandfather and grandmother, and brather and sister of the annuitant, and the person who has been supported by, or has supported, the annuitant at the time of the latter's death shall be a successive annuitant. 2 In case there exist two or more successive annuitants mentioned in the preceding paragraph, the person preceding in rank according to the order mentioned in the same paragraph shall be a successive annuitant. 3 Any one of the persons mentioned in Paragraph 1, who has intentionally killed an annuitant, successive annuitant, person preceding in rank or person in the same rank, the spouse of the annuitant, who has newly married (including the person who has virtually, if not formally notified, entered into matrimonial relation), and the child, father and mother, grandchild, grandfather and grandmother or brother and sister of the annuitant, whose relationship as such has ceased to exist cannot become a successive annuitant. 4 In case the successive annuitant designated by an annuitant has died, within the guaranteed period, after such person has come to receive the annuity, the provisions of the preceding three paragraphs shall apply correspondingly.

(Person to receive Unpaid Annuity) Article 23. In case there exist any unpaid annuities due to an annuitant or successive annuitant in case of death of such person, such shall, in accordance with the following classifications, be paid to the person mentioned in the corresponding item: (1) In the case of the Guaranteed Immediate and Guaranteed Deferred Annuity; In case of death of the annuitant within the period of time during which continued annuity payment is to be made to the successive annuitant in accordance with the provisions of Article 11 or 12, the successive annuitant (successive annuitant next in the rank in case of death of such successive annuitant). In case of death of the annuitant or successive annuitant after the expiration of the period of time during which continued annuity payment is to be made to the succesive annuitant in accordance with the provisions of Article 11 or 12, the spouse, child, father, mother, grandchild, grandfather, grandmother, brother and sister of the annuitant or successive annuitant, and the person who has been supported by or has supported, the annuitant or successive annuitant at the time of death of the annuitant or successive annuit nt. (2) In the case of the term Annuity; Spouse, child, father, mother, grandfather, grandmother, brother and sister of the annuitant, and the person who has been supported by or has supported, the annuitant at the time of the latter's death. 2 The provisions of the preceding Article, Paragraphs 2 and 3 shall apply correspondingly in the cases mentioned in the preceding paragraph.

(Voluntary Succession to Position of Annuity Policyholder) Article 24. An annuity policyholder may, with the consent of an annuity cause a third party to succeed to the ri_hts and duties under the annuity policy. 2 The succession mentioned in the preceding paragraph cannot be set up against the State unless the State has been notified thereof.

(Legal Succession to Position of Annuity Policyholder) Article 25. If, in case of death of an annuity policyholder, there exists no heir to such person, an annuitant shall succeed to the rights and duties of the policypolder under the annuity policy.

(Designation of Change of Successive Annuitant) Article 26. An annuitant way, only after the happening of the event wherein the annuity becomes payable, designate or change a successive annuitant, provided that this shall not apply in case the annuitant has expressed to the State his intention not to change the designation. 2 The desination or change mentioned in the preceding paragraph cannot be set up against the State unless the State has been notified thereof. 3 In case the successive annuitant designated under Paragraph 1 has intentionally killed ed an annuitant, such designation shall become null and void.

(Payment of Refund Money) Article 27. In case of death of an annuitant, or surrender, lapse or change of an annuity policy, a receiver of refund money may, in accordance with the following classifications, apply for payment of refund money mentioned in the corresponding items: (1) In case of death of an annuitant; With respect to the Guaranteed Deferred Annuity which is prior to the happening of the event wherein the annuity becomes payable, the total amount of a sum equal to premiums to be paid until death and a sum equal to 2 per cent interest thereon compounded annually. With respect to the Term Annuity, the sum equal to premiums to be paid until death (after the happening of the event wherein the annuity becomes payable, the balance after deducting therefrom any amount of annuities to be paid until death). (2) In case of surrender or lapse of contract of an annuity policy; With respect to the Guaranteed Immediate mediate Annuity, the sum equal to 80 per cent or upwards, as prescribed by the Annuities Policy Conditions, of the total amount of premiums paid after deducting therefrom any amount of annuities to be paid until surrender. With respect to the Guaranteed Deferred Annuity, the sum equal to 90 percent or upwards, as prescribed by the Annuities Policy Conditions, of the total amount of a sum equal to premiums to be paid until surrender or lapse of the annuity policy and a sum equal to 2 per cent interest thereon compounded annually (after the happening of the event wherein the annuity becomes payable, the balance after deducting therefrom the amount of annuities to be paid until surrender). With respect to the Term Annuity, the sum equal to 90 per cent or upwards, as prescribed by the Annuities Policy Conditions, of a sum equal to premiums to be paid until surrender or lapse of the annuity policy (after the happening of the event wherein the annuity becomes payable, the balance after deducting therefrom the amount of annuities to be paid until surrender). (3) In case of change in an annuity policy; With respect to the Guaranteed Deferred Annuity, the sum equal to 90 per cent or upwards, as prescribed by the Annuities Policy Conditions, of the balance between the total of a sum exual to premiums to be paid until such change and a sum equal to 2 per cent interest thereon compunded annually, and the total of the premiums which should have been paid on such changed policy from the very beginning until such change and a sum equal to 2 per cent interest thereon compounded annually. With respect to the Term Annuity, the sum equal to 90 per cent or upwards, as prescribed by the Annuities Policy Conditions, of the balance between a sum equal to premiums to be paid until such change and the premiums which should have been paid on such changed policy from the very beginning until such change.

(Designation or Change of Receiver of Refund Money) Article 28. An annuity policyholder may, only prior to the happening of the event wherein the annuity becomes payable, designate or change a receiver of refund money any time until the happening of the event wherein the refund money mentioned in the preceding Article becomes payable (excepting the case where refund money is paid due to the change effected in an annuity policy in accordance with the provisions of the preceding Article), provided that this shall not apply in case the annuity policyholder has expressed his intention to the State not to change the designation, in the case of the receiver of refund money designated by the annuity policyholder being a third party. 2 For an annuity policyholder to make a third party other than an annuitant a receiver of refund money by the designation or change mentioned in the preceding paragraph, the consent thereto of the annuitant shall be required. 3 The designation or change mentioned in Paragraph 1 cannot be set up against the State unless the State has been notified thereof. 4 The provisions of Article 26, Paragraph 3 shall apply to a receiver of refund money.

(Receiver of Refund Money in Case of Non-Designation) Article 29. In case an annuity policyholder does not designate a receiver of refund money (including the case where the person designated by the policyholder has died and no new receiver of refund money has been designated), an annuitant (successive annuitant after a successive annuitant has come to receive the annuity) shall be a receiver of refund money. 2 In case there exists no receiver of refund money mentioned in the preceding paragraph, the person to be the successive annuitant in accordance with the provisions of Article 22 (in the case of the Term Annuity, person mentioned in Article 23, Paragraph 1, Item 2) shall be a receiver of refund money.

(Legal Repayment of Loan) Article 30. In case four years have elapsed, in the case where the State has granted a loan to an annuity policyholder in accordance with the provisions of the Annuities Policy Conditions, from the date of repayment without the repayment of the loan by the annuity policyholder, the State may, only prior to the happening of the event wherein the annuity becomes payable, reduce the amount of annuity and that of refund money in accordance with the provisions of the Annuities Policy Conditions in lieu of repayment of the loan.

(Distribution of Surplus) Article 31. In case any surplus has been realized in the operation of Post Office Annuities Service, such shall be distributed to the annuitants or successive annuitants in accordance with the provisions of the Annuities Policy Conditions.

(Refund of Premium) Article 32. If, in the case of an annuity policy being null and void in whole or in part, an annuity policyholder is in good faith and without gross negligence, such policyholder may apply for refund of the whole or part of the premiums paid.

(Prohibition of Assignment) Article 33. The right to receive the annuity, refund money or surplus cannot be assigned.

(Prohibition of Seizure) Article 34. The right ro receive the annuity or refund money cannot be seized, provided that this shall not apply, in case an annual amount of annuity exceeds 12,000 yen, to a sum equal to onehalf of such excess amount, nor, in case the amount of refund money exceeds 50,000 yen, to such excess amount.

(Annuitant's Right of Intervention) Article 35. If, in the case where an annuity policyholder has been adjudged bankrupt prior to the happening of the event wherein the annuity becomes payable (excepting the case where the intention mentioned in the proviso to Article 28, Paragraph 1 has been expressed with respect to the annuity policy having a person other than the annuity policyholder as a receiver of refund money), an annuitant expresses, with the consent of the annuity policyholder, the intention to succeed to the rights and duties of the annity policyholder under the annuity policy by paying to the bankruptcy administrator a sum equal to such portion of the amount of refund money to be paid in accordance with the provisions of Article 27, if the annuity policy concerned were to be surrendered, as may be seized in accordance with the provisions of the proviso to the preceding Article, such annuitant shall succeed to such rights and duties. 2 The succession mentioned in the preceding paragraph cannot be set up against the State unless the State has been notified thereof. 3 The sum of money received by the bankruptcy administrator in accordance with the provisions of Paragraph 1 shall belong to the bankrupt's estate.

(Deduction in payment) Article 36. If, in the case where the annuity, refund money, surplus or premiums to be refunded to an annuity policyholder is paid, there exist any premiums in arrears, loan outstanding or any other indebtedness due to the State with respect to the annuity policy concerned, such shall be deducted from the money to be paid.

(Legitimate Payment) Article 37. In case the annuity, refund money, loan, surplus, of premiums to be refunded to an annuity policyholder have been paid in accordance with this Law and the procedures prescribed by the Annuities Policy Conditions, such payment shall be effective.

(Effect of Amendment of Annuities Policy Conditions) Article 38. The amendment of the Annuities Policy Conditions shall not be binding on the policies already in force. 2 If deemed extremely necessary, in the case where the Annuities Policy Conditions are amended, for the protection of the annuity policyholders, annuitants, successive annuitants and receivers of refund money as a whole, the Minister of Postal Services may, irrespective of the provisions mentioned in the preceding paragraph, cause the effect of such amendment to be binding, for the future, on the policies already in force, excepting matters relating to distribution of surplus.

(Prescription) Article 39. The liability to pay the annuity, refund money and surplus, and the liabilty to refund the premium shall become extinct by prescription by the the premium shall become extinct by prelapse of five years, and the liability to pay the premium, by the lapse of one year.

Chapter III. Investigation by Post Office Life Insurance and Annuities Investigation Committee

(Investigation by Investigation Committee) Article 40. An annuity policyholder, annuitant, successive annuitant or receiver of refund money must, prior to bringings a civil action against the State as defendant with respect to matters relating to the rights and duties under the policy of Post Office Annuities, undergo investigation thereof by the Post Office Life Insurance and Annuities Investigation Committee (hereinafter to be referred to as "Investigation Committee" ). 2 If, after an annuity policyholder, annuitant, successive annuitant or receiver of refund money has submitted an application for investigation to the Investigation Committee, six months have elapsed without the said Committee giving any decision thereon, the person who has submitted such application may bring a civil action irrespective of the provisions of the preceding paragraph. 3 In case the person who has submitted an application for investigation mentioned in Paragraph 1 has brought a civil action in accordance with the provisions of the preceding paragraph, the Investigation Committee does not make any investigation into such application.

(Procedure of Investigation) Article 41. With respect to the investigation mentioned in the preceding Article, the provisions of Articles 56, 58 to 67 inclusive of the Post Office Life Insurance Law (Law No.68 of 1949) shall apply correspondingly, provided that "insurance policyholder, insured and beneficiary" in Article 58, Paragragh 2, Item 3 of the said Law shall read "annuity policyholder, annuitant and receiver of refund money," and "insurance policy" in Item 4 of the said paragraph, "annuity policy."

Chapter IV. Investment of Reserve Fund

(Investment of Reserve Fund) Article 42. The reserve fund must, except in the case of loans made to annuity policyholders, annuitants or successive annuitants, be invested in the following ways with profit and security, and for the public interest upon the advice of the Post Office Life Insurance and Annuities Enterprise Deliberation Committee: (1) Loans to public bodies; (2) Subscription to, underwriting or purchase of Government bonds, local bonds, debentures or other securities. 2 The reserve fund may, prior to investment made in accordance with the provisions of the preceding paragraph, be deposited temporarily in the Deposit Bureau of the Ministry of Finance, irrespective of the provisions of the preceding paragraph.