Law 12/2015, July 16, To Amend The Law Governing The Performance Of The Insurance Companies, Of 11 May 1989

Original Language Title: Llei 12/2015, del 16 de juliol, de modificació de la Llei reguladora de l'actuació de les companyies d'assegurances, de l'11 de maig del 1989

Read the untranslated law here: https://www.bopa.ad/bopa/027057/Pagines/CGL20150730_14_27_45.aspx

CGL20150730_14_27_45 law 12/2015, July 16, to amend the Law governing the performance of the insurance companies, May 11, 1989, law 12/2015, July 16, to amend the Law governing the performance of the insurance companies, of 11 May 1989 because the General Council in its session of July 16th, 2015 has approved the following : law 12/2015, July 16, to amend the Law governing the performance of the insurance companies, of 11 May 1989 exhibition of illustrations and the law governing the performance of the insurance companies, of 11 May 1989 regulates the determination of requirements for insurers and insurance mediators, both of Andorra abroad , can operate in the Principality, while foreseeing reciprocity in favour of Andorran companies, and the definition of the procedure to obtain the necessary authorizations for the performance of the insurance activity.
From the beginning of the law until the day of today, the insurance sector has been covering the needs of the population in Andorra, from the most basic and common concepts, such as the branch of insurance-which includes basic insurance of automobile, the risks of accidents, civil liability, home to more complex ones such as the branch of life. Recent life-branch risks covered by the insurance companies authorised to operate in the Principality of Andorra-in some cases include an additional component of complexity, depending on the type of product, in the sense that it introduces a component of capitalization in the same, and therefore have a financial component.
This natural evolution that has undergone the sector requires that we incorporate the requirements established by the recommendations of the FATF (Financial Action Group International) in relation to the fight against money laundering of funds arising from international and against the financing of terrorism.
In this sense, the Bill introduces new requirements that have to fulfill and obtain the physical and legal persons engaged in insurance activities of private law, will define the requirements of good repute and appropriate professional experience and professional and that cover up to the beneficiary of the authorization in case of legal persons.
At the time of making these modifications, for reasons of homogeneity and coherence with the legislative framework, we have taken into account the requirements of fit required operational entities next > in the financial system by law 35/2010 licensing regime for the creation of new entities and law 7/2013, about their legal regimes. It should be noted that the requirements of the FATF methodology applied close > fit the same terms in banking and insurance activities.
In order to look after the interests of the insured, the 1989 Law attributed to the Government certain powers of control in relation to the State of solvency of insurance companies authorized. In the Bill will strengthen these powers of Government control and expand by incorporating the right of supervision of insurance activities.
Article 1. Amendment of article 8 of the law governing the performance of the insurance companies, of 11 May 1989 modifies the section 4 of article 8 of the law governing the performance of the insurance companies, May 11, 1989, which is worded as follows: "4. The requirements that have to fulfill and obtain the physical and legal persons engaged in insurance activities of private law in order to be authorised governativament to operate in the Principality of Andorra , are the ones who, in general, and for each category, are set in the following articles. ".
Article 2. Addition of article 8 bis of the law governing the performance of the insurance companies, of 11 May 1989 is added to article 8 bis of the law governing the performance of the insurance companies, May 11, 1989, which is worded as follows: "Article 8 bis. Requirements of good repute and appropriate professional and professional experience.
1. The holders of authorisations to make private insurance activities in the Principality of Andorra should be persons of recognised good repute and professional business.
In the case of legal persons, must be a person of good repute recognized business and professional members of the governing bodies, the directorate-general or, if applicable, other people who by any means to manage effectively the entities authorised to carry out private insurance activities in the Principality of Andorra.
The majority of the members of the governing bodies, including the individuals who represent the legal persons, they must be people with suitable knowledge to exercise the functions inherent in the Office and with adequate professional experience.
2. It is considered that they are people of recognized good repute and professional business that have a good personal and professional reputation, people with a public image that corresponds with that of good administrators and other appropriate persons, all of which must be met in any case and as a minimum, the following conditions: and) do not have a criminal record for crimes of forgery , of infidelity in the custody of documents, in violation of secrets, of embezzling public flows, of discovery and revelation of secrets, or for crimes against the cultural heritage;
II) does not have a criminal record for other malicious crimes;
III) not be or have been disabled to exercise public office or administration or management bodies of the financial system in Andorra or abroad;
IV) have not been declared bankruptcies or in a situation of legal arrangement, except if they have been legally rehabilitated.
3. It is considered that they have adequate professional experience in the management of bodies authorised to carry out activities of private insurance, the people who have played with normal, during a period of more than three years, management roles, management or control of insurance companies or mediators, or functions of a similar responsibility in other organizations, public or private, of significant dimension.

It is believed to have adequate professional experience the insurance brokers who, as individuals, have the General knowledge, and appropriate professionals to be able to communicate accurately all relevant information about the services of insurance.
4. Applicants for an authorisation to carry out insurance activities in the Principality of Andorra must provide to the Government, together with the corresponding application, the following documents: a) proof of identity and nationality of the applicant of the authorization: (i) in the case of applicants who are natural persons: official identification with a photograph.
(ii) in the case of applicants who are legal entities:-temporary or permanent Relationship, according to the case, of the members of the applicant entity and its shares in the capital stock with the proof referred to in paragraph (i) above.
-Provisional List of people that integrate or have to integrate the first organ of administration with the proof referred to in paragraph (i) above.
-In the case of entities already established, reliable document certifying their company name, legal form, address and corporate purpose, the last approved annual accounts and, if these accounts are part of a group of companies, an indication of the composition of the Group and the last approved financial statements of the consolidated Group.
b) affidavit in which claim that the funds contributed for the realization of the activities comply with the requirements established by the legislation relating to the prevention and the fight against money laundering and against the financing of terrorism.
c) information about the career, the professional activity and the equity situation of the individual applicant or partner with shares equal or superior to 5 per 100 of the share capital of the company constituted or established. If the applicant is a legal person, the information should refer to the experience and the professional activity of the members of the Board of Directors, of the directorate-general or, if necessary, to the other people who by any means address or direct effectively the activities.
d) certificate of criminal record of the individual applicant or partner with shares equal or superior to 5 per 100 of the share capital of the company constituted or established. If the applicant is a legal entity, this information has also been referred to members of the Board of Directors, of the directorate-general or, if applicable, of other persons who by any means address or direct effectively the activities.
e) sworn declaration of the individual applicant or partner with shares equal or superior to 5 per 100 of the share capital of the entity incorporated or constituted, not to be or have been disabled to exercise public office or administration or management of the entities of the financial system or insurer, in Andorra or abroad; and has not been declared bankruptcies or in a situation of legal arrangement and, if they have been, have been legally rehabilitated. If the applicant is a legal entity, this information has also been referred to members of the Board of Directors, of the directorate-general or, if applicable, of other persons who by any means address or direct effectively the activities.
5. The entities authorised to carry out private insurance activities in the Principality of Andorra should be requested to the Ministry of the finance the prior authorization of the following acts: (i) changes in the shareholding of the company when imply that some of the shareholders reach, increase or reduce a stake equal to or higher than 5 per 100 of the share capital of the company constituted or that , regardless of their participation, to attain representation to the Board of Directors of the entity;
(ii) the changes and the appointments of the members of the governing bodies, the directorate-general or, if applicable, of other persons who by any means to manage effectively the entities authorised to carry out private insurance activities in the Principality of Andorra;
(iii) the changes and the appointments of the members of the governing bodies, the directorate-general or, if applicable, of other persons who effectively conduct by any means in the area of the group in the framework of an entity that is part of a group, and in which, in addition to the charges corresponding to the matrix, will create positions with responsibilities in the field of different group of the matrix individually considered;
(iv) any relevant changes that may occur in the entities or their subsidiaries, provided that they are controlled by these entities, in connection with the authorization granted by the Ministry of the finance or foreign supervisory authority.
In the event that the changes reported or discovered does not comply with the current regulations, the Ministry will take appropriate measures finance holder in each case to cease the breach detected.
Article 3. Amendment of article 14 of the law governing the performance of the insurance companies, of 11 May 1989 modifies the article 14 of the law governing the performance of the insurance companies, May 11, 1989, which is worded as follows: "Article 14. Powers of the Government 1. To look after the interests of the policyholders, this law gives the Government, that the exercises through the Ministry of the finance, certain powers of control and supervision in relation to the natural or legal persons that made insurance activity of private law.
2. Insurance companies authorised to operate in the Principality of Andorra must be deposited at the Ministry of the finance, within the first six months of each financial year, a social audit or external control comparable to its financial statements, made by a company or body of recognized solvency.
3. The Ministry of the finance may issue, among others, technical releases, binding, communications and recommendations, in order to develop the regulations and the rules of instrumental techniques in relation to the exercise of activities of insurance of private law.
4. The powers of control of the Government does not take responsibility of the activities and operations of the controlled entities. ".

Article 4. Modification of paragraph 2 of article 20 of the law governing the performance of the insurance companies, of 11 May 1989 will add the letter k) in paragraph 2 of article 20 of the law governing the performance of the insurance companies, May 11, 1989, which are worded as follows: "k) any breach of the rules of this law.".
Transitional provision The natural or legal persons, domestic and foreign, authorised at the time of the entry into force of this law operate in the field of activity of insurance of private law, have a period of three months from the entry into force of the law, to submit to the Government the documents related to section 4 of the new article 8 bis of the law governing the performance of the insurance companies of 11 May 1989, with the exception of the information related to the patrimonial situation to which refers the letter c).
The documentation as provided in compliance with the statement of the Ministry of finance, insurance 1/2015, on the request of information from senior management, of 9 February 2015, you should not submit again.
In the event that the information and documents press releases reveal failure to comply with the current regulations, the Government will take appropriate measures in each case to cease the breach detected.
Once after the deadline established in the previous paragraph, the Government may initiate the corresponding disciplinary record for the Commission of an offence consisting of the delay or the default of the Government communications provided for by this law.
Single final provision. Entry into force this law shall enter into force the day after being published in the official bulletin of the Principality of Andorra.
Casa de la Vall, 16 July 2015 Vicenç Mateu Zamora Syndic General Us the co-princes the sancionem and promulguem and let's get the publication in the official bulletin of the Principality of Andorra.
Joan Enric Vives Sicília François Hollande Bishop of Urgell, President of the French Republic Co-prince of Andorra Co-prince of Andorra