Ordinance On Insurance Intermediaries Professional Indemnity Insurance, Guarantees And Treatment Of Fiduciary

Original Language Title: Bekendtgørelse om forsikringsformidleres ansvarsforsikring, garantistillelse og behandling af betroede midler

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Read the untranslated law here: https://www.retsinformation.dk/Forms/R0710.aspx?id=122634

Overview (table of contents) Chapter 1 Introduction

Chapter 2 insurance broker companies and reinsurance brokerage companies ' liability insurance and guarantees

Chapter 3 Insurance companies, under the companies and management companies liability insurance and guarantees

Chapter 4 fiduciary

Chapter 5 Guarantees for fiduciary

Chapter 6 penal provisions

Chapter 7-entry into force, transitional and audit provisions the full text notice on insurance intermediaries professional indemnity insurance, guarantees and treatment of trusted products)

Pursuant to article 20, paragraph 5, article 28, paragraph 5, section 37, (6) and (7) and section 54, paragraph 2, of the law on insurance mediation, see. lovbekendtgørelse nr. 930 of 18. September 2008, fixed:

Chapter 1

Introduction

§ 1. This Ordinance shall apply to:





1) insurance brokerage companies.

2) Reinsurance broker companies.

3) Insurance companies.

4) of the companies.

5) management companies acting on behalf of insurance companies and of the companies covered by the No. 3 and 4.





Chapter 2

Insurance broker companies and reinsurance brokerage companies ' liability insurance and guarantees

§ 2. It is a condition for the pursuit of the business of insurance brokerage or reinsurance broker, the existence of a statement from an insurance company about





1) that the company is covered by liability insurance,

2) that the insurer be liable immediately above the victim for the liability, the company is required by negligence on the part of the company or any conditions, this shall be liable for,

3) liability insurance covers the company's activities in all countries within the European Union and the countries with which the community has entered into an agreement on financial matters, and

4) to liability insurance liability limit is at least 1,120,200 euro per injury cases and at least 1,680,300 euro for all injury cases per year of insurance regulation. However, paragraphs 2 and 3.





(2). In enterprises with 10 or more registered insurance brokers must have a comprehensive liability insurance liability limit per year of insurance at least 3,008,297 euro.

(3). Is liability insurance for the individual company established as part of a collective system of grouping several cooperating companies or as a member of a trade association is valid in accordance with paragraph 1, nr. 4, the coverage for each participating company sums referred to in article 6. However, paragraph 2.

§ 3. It is furthermore a condition,





1) to liability insurance provides coverage for a genikrafttrædelse of coverage sum in the event that this had to be exhausted as a result of one or more damage in a year of insurance (insurance policy covered reinstatement),

2) to liability insurance includes the right for the company to know the insurer terminated as a result of the company's termination to insure against liability claims, which are raised and reported no later than 3 years after the company's termination of the basic regulation. section 4, paragraph 1, and

3) that in relation to third party liability insurance covers claims for damages raised and reported no later than 3 years after the termination of the insurance liability, as far as there is no sign in the second insurance company liability insurance with full retroactive coverage.





§ 4. By a company's bankruptcy or cessation in other ways, as well as through the inclusion of authorization, the company must draw a drainage insurance covering liability for claims for damages that are raised and reported no later than 3 years after the company's termination.

(2). Insurance liability limit should be at least 1,120,200 euro per damage event and at least 1,680,300 euro for all injury cases. The coverage mentioned sums are valid for the entire 3-year-old drainage period.

(3). The company shall come to an end, for example. upon surrender of the client portfolio to the other company, the acquiring company's insurance company over for the FSA, declare that the existing liability insurance be expanded to cover compensation claims from the transferring insurance brokerage or reinsurance broker enterprise customers, which relates to a person entitled to compensation allowance is received prior to the transfer and which are raised and reported no later than 3 years after the handover.

(4). There may not be coverage commitments as specified in paragraph 3 of the acquiring insurance undertaking or reinsurance broker broker business insurance company, the discontinuing business establish independent drainage insurance of the same extent as specified in paragraphs 1 and 2.

§ 5. Although the insurance referred to in article 4 is not signed, or liability insurance is terminated for any other reason, and without new liability insurance of the same scale was designed in a different insurer, the insurer shall be liable for any third party claims, which are raised and reviewed against the company not later than 3 years after the termination of the insurance liability.

(2). In relation to the third party liability insurance may only be terminated at the request of the insurance company as of a specific date, which may not occur earlier than one month after receipt of the request of the FSA.

§ 6. By submission of insurance statement warrants the insurer of that liability insurance meets the rules in sections 2-4 and section 5, paragraph 1. The insurance company's statement is issued on a form prepared by the FSA.

§ 7. For companies that have a connection as specified in the financial business Act § 5 (1) (8). 6 and 7, to companies without head office here in the country, takes concrete positions on FSA about content and scope of an established insurance coverage equivalent to those laid down in §§ 2-4 and section 5, paragraph 1.

§ 8. A company can to comply with the rules set out in sections 2-5, instead drawing a customers account in a financial institution.

(2). By submission of any representations the Bank warranty statement the guarantee complies with the rules laid down in that section § 2-4 and section 5, paragraph 1. Warranty manufacturer's declaration be made out on a form prepared by the FSA.

Chapter 3

Insurance companies, under the companies and management companies liability insurance and guarantees

§ 9. It is a condition for a professional activity (hereinafter referred to as the insurance company or a management company) may conclude an agreement on the sale of insurance products for an insurance company, declared that cross-border service provider pursuant to section 31 of the financial business Act, adding to the FSA are submitted





1) a statement from an insurance company that the insurance company or the management company is covered by liability insurance, see. paragraph 4 and section 10, or

2) a declaration that the insurance company entered into insurance brokerage agreement with, has assumed responsibility for negligent conditions shown by an insurance agent or management company in connection with the insurance provision.





(2). An insurance undertaking of the company, a management company as well as a branch of an insurance undertaking or of the undertaking has been notified under section 43, paragraph 1 of the law on insurance mediation, as signs agreement with a commercial company (hereafter referred to as the business or management company) for the sale of the insurance products, agreed between the parties must be covered by liability insurance, see. paragraph 4 and section 10.

(3). An insurance undertaking of the company or a management company, which is registered in another country within the European Union or in a country with which the community has entered into an agreement in the financial sphere, which signs agreement with a commercial company (hereafter referred to as the business or management company) for the sale of the insurance products, agreed between the parties must be covered by liability insurance, see. paragraph 4 and section 10.

(4). It must appear from the insurer's Declaration on liability insurance,





1 the insurer shall be liable to immediately above) for the injured of the liability insurance company, under which the company or the management company is required by involuntary conditions demonstrated by insurance company, under the company, the management company or any, this shall be liable for,

2) to liability insurance covers the insurance agent of the establishment or the establishment, under the management company's activities in all countries within the European Union and the countries with which the community has entered into an agreement on financial matters, and

3) to liability insurance liability limit is at least 1,120,200 euro per injury cases and at least 1,680,300 euro for all injury cases per year of insurance.





(5). Is liability insurance for the individual insurance business, the company or the management company established as part of a collective system of comprehensive multiple cooperating insurance companies under the companies or management companies or established as a member of a trade association is valid in accordance with paragraph 4, no. 3, the coverage specified sums for each insurance undertaking of the company or the management company.

§ 10. It is furthermore a condition,
1) to liability insurance provides coverage for a genikrafttrædelse of coverage sum in the event that this had to be exhausted as a result of one or more damage in a year of insurance (insurance policy covered reinstatement),

2) that contains the right for insurance company liability insurance, of the company or the management company to the knows the insurer terminated as a result of the termination of insurance intermediary to insure against liability claims, which are raised and reported no later than 3 years after termination, see sub-Agency. section 11, paragraph 1, and

3) that in relation to third party liability insurance covers claims for damages raised and reported no later than 3 years after the termination of the insurance liability, as far as there is no sign in the second insurance company liability insurance with full retroactive coverage.





§ 11. By an insurance company, under the business or management company bankruptcy, cessation, as well as by a sub-agency agreement's termination, the company must draw a drainage insurance covering liability for claims for damages that are raised and reported no later than 3 years after the termination of the undertaking or insurance intermediary.

(2). Insurance liability limit should be at least 1,120,200 euro per damage event and at least 1,680,300 euro for all injury cases. The coverage mentioned sums are valid for the entire 3-year-old drainage period.

(3). Although the insurance referred to in paragraph 1 is not signed, or liability insurance is terminated for any other reason and without new liability insurance of the same scale was designed in another insurance company, the insurance undertaking shall be liable for third party claims against the insurance undertaking of the company or the management company, which is raised and reported no later than 3 years after the termination of the insurance liability.

(4). In relation to the third party liability insurance may only be terminated at the request of the insurance company as of a specific date, which may not occur earlier than one month after receipt of the request of the FSA.

§ 12. By submission of insurance statement warrants the insurer of that liability insurance meets the rules in § 9 (1) and paragraphs 4 and 5, § 10 and § 11, paragraphs 1-3. The insurance company's statement is issued on a form prepared by the FSA.

§ 13. For insurance companies, the companies or management companies that have a connection as specified in the financial business Act § 5 (1) (8). 6 and 7, to companies without head office here in the country, takes concrete positions on FSA about content and scope of an established insurance coverage equivalent to those laid down in section 9, paragraph 1 and paragraph 4-5, section 10 and section 11, paragraph 1-3.

§ 14. An insurance undertaking of the company or a management company may for the fulfilment of the rules in sections 9-11 instead draw the lodging of a security in a financial institution.

(2). By submission of any representations the Bank warranty statement the guarantee complies with the rules laid down in that section 9 (1) and paragraphs 4 and 5, § 10 and § 11, paragraphs 1-3. Bank statement is issued on a form prepared by the FSA.

Chapter 4

Fiduciary

§ 15. If a company is covered by section 1 as part of insurance intermediation company receives monies, these must be inserted on a separate account in a financial institution (client account), covered by a warranty, see. Chapter 5.

(2). An insurance and reinsurance mediation shall simultaneously with the application for authorisation of the Danish financial supervisory authority, submit proof of creation of client account, if such funds are received.

(3). Other insurance brokerage companies are submitting evidence for creation of client account, if such funds are received in connection with registration or notification when such a client account is created.

§ 16. On a client account to insert amount, including premiums and insurance payouts, as the company receives as part of the insurance brokerage company, see. However, paragraph 2.

(2). Amount that is covered by a certificate of emancipation from an insurance company, may not be inserted on the client account.

(3). Commissions, including advances on this, as well as other remuneration as the company receives as part of the insurance brokerage company, without undue delay, are removed from the client's account.

§ 17. A client account is created in the insurance brokerage unit's name and is subject to the company's disposal.

§ 18. A client account may only be created at financial institutions, which by one of the Danish financial supervisory authority approved statement has committed itself to comply with the provisions of paragraph 2.

(2). Regardless of possible different between being with insurance brokerage company or any of its customers to the Bank not by set-off or otherwise dispose of something on a client account representative for the amount which is necessary to cover the insurance brokerage unit's corresponding to the third man for fiduciary.

§ 19. On the client account shall, not later than the next business day to all fiduciary is inserted after receipt, including amounts paid to insurance intermediary company to hold the attachment for the client.

(2). The exception is the amount that immediately after receipt is used for payment for the provision to a Bill.

§ 20. Any insurance intermediary activities shall maintain a list of trusted products. Insurance intermediation company must have prepared a business time, which ensures a correct registration of fiduciary.

§ 21. The Danish financial supervisory authority may at any time and without stating reason impose an insurance brokerage company within one of the FSA set out short deadline to submit a statement from a State approved or registered Auditor on the review of client account, see. section 3 of the Ordinance on insurance broker companies and reinsurance brokerage companies ' annual reports to the FSA.

(2). Have an insurance brokerage business client account posting, see. § 20, been deficient or have insurance brokerage company in fact violated the rules about treatment of fiduciary, FSA can impose on insurance intermediation company for one of the FSA set period of time or until further notice to submit client account statement of the basic regulation. (1) every three months or with the second supervision set interval.

Chapter 5

Provision of guarantees for fiduciary

§ 22. It is a condition for an insurance intermediary activities covered by article 1 may receive monies, see. Chapter 4, the existence of a statement from an insurance company or financial institution (hereinafter guarantor) that





1) guarantor as even the debtor warrants claim for payment of the monies referred to in article 6. Cape. 4 which can be directed against the insurance brokerage company on the occasion of the latter's activities of insurance intermediary

2) guarantees after its content allows the secured a direct claim against the guarantor,

3) guarantees to cover claims, which relate to funds entrusted warranty from the date of entry into force, and until it is brought to an end (the warranty period), see. section 24, and to

4) guarantees are not subject to other limitations than those after this Decree allowed.





(2). Is the guarantee for the individual insurance intermediary activities established as part of a collective system of grouping several companies, the guarantor be a separate fund or association if the Fund's or Association's commitment is thus revealed that, after a concrete assessment of the Danish financial supervisory authority is available at any time to be a equivalent safety as provided for in paragraph 1.

§ 23. The guarantee may be limited in value, so that all of the requirements for each year of the warranty period covered only with a certain amount. This amount must however be at least 300,829 euros per the insurance intermediary activities.

(2). The threshold value in (1), (2). item not be reduced, even though the guarantee lodged for a shorter period than 1 year.

§ 24. The guarantee may be limited in time in such a way that it covers only claims raised against the guarantor not later than 3 years after the end of the task, which triggers the requirement.

(2). The time limit referred to in paragraph 1 shall be suspended at the insured person's legal proceedings against the insurance brokerage company.

§ 25. Guarantee statement under section 22 to be drawn up by the guarantor. The guarantee statement shall be made out on a form prepared by the FSA.

(2). On receipt of a warranty statement warrants guarantor for providing the guarantee complies with the rules laid down in §§ 22-24.

(3). The guarantee can only be terminated at the request of guarantor with effect from a certain date, which may not occur earlier than one month after receipt of the request of the FSA. Guarantor may, however, require that the guarantee is brought to an end the week after receipt of the request in the Danish financial supervisory authority, provided that the request is justified in the insurance brokerage company's fraud.

Chapter 6

Criminal provisions

section 26. Violation of §§ 2-5, § 9, paragraph 1 and paragraphs 4 and 5, sections 10-11, paragraphs 1 and 3, § 15, § 16, §§ 18-23 (1), (2). paragraph and section 25 is punishable by a fine.

(2). That can be imposed on companies, etc. (legal persons) criminal liability in accordance with the provisions of the criminal code 5. Chapter.

Chapter 7

Date of entry into force, transitional and audit provisions
§ 27. The notice shall enter into force on the 15. January 2009.

(2). At the same time repealed Executive Order No. 7 out of 10. January 2008 on insurance intermediaries professional indemnity insurance, guarantees and treatment of fiduciary regulation. However, paragraph 3.

(3). Drainage business written with a 5-year-old drainage period before 15. January 2009, must be maintained with the agreed-upon drainage period.

section 28. In section 2 (1) (8). 4, § 2, paragraph 2, section 4, paragraph 2, article 9, paragraph 4, nr. 3, article 11, paragraph 2, and article 23, paragraph 1, specified amounts of liability insurance and coverage garantistillelsens sums be increased automatically every five years, the first time the 15. January 2013 and then 5 years after the previous review.

(2). Revision of the amounts in question occurs with the percentage change of the European index of consumer prices for the period from 15. January 2008 and to the 15. January 2013 or from the date of the previous audit to the new revision and will be rounded up to the nearest whole euro.

(3). FSA publishes every five years, with the percentage the European index is changed during the period.
The Danish financial supervisory authority, the 22. December 2008, Peter Sylvest Larsen/Vibeke Olesen Official notes 1) Ordinance contains provisions implementing parts of a European Parliament and Council Directive No. 2002/92/EC of 9. December 2002 on insurance mediation (Official Journal of the European Communities 2003 nr. L 9, s 3).