Amendments To The Insurance Companies And The Supervisory Law

Original Language Title: Grozījumi Apdrošināšanas sabiedrību un to uzraudzības likumā

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Read the untranslated law here: https://www.vestnesis.lv/ta/id/202990

The Saeima has adopted and the President promulgated the following laws: the amendments to the insurance companies and the supervisory law to make insurance companies and supervision Act (Republic of Latvia Saeima and the Cabinet of Ministers rapporteur, 1998, no. 15; 1999, no. 10; 2000, no. 13; 2002; 2003, 12 No No 9; 2004, nr. 2, 14, 2, 14; 2005. No; 2006, nr. 1; 2007, 15. no; 2008, 13. 15., 23., no; 2009, no. 7) the following amendments: 1. Replace the entire law, the word "Euro" with the word "Euro".
2. Add to article 1 first paragraph by paragraph 41 the following: "41) analysis of the situation — a critical analysis by the insurance company or insurer of the Member State of the branch to identify and assess the various exceptional but possible adverse event or market conditions change, potential impact on insurance companies or non-Member State of the branch of the insurer the ability to fully execute from insurance and reinsurance contracts and obligations to ensure the stability of the financial transaction."
3. Add to article 8.1 of the third paragraph as follows: "(3) the advertising of insurance in relation to unit-linked life insurance contracts, advertising must not include information about future profits or guaranteed yield level. Pointing to the profitability of insurance in relation to unit-linked life insurance contracts, the information to be included in the advertisement that the current profitability does not guarantee similar yield in the future. "
4. Supplement article 8.2 with the fourth, fifth, sixth and seventh paragraph as follows: "(4) on the basis of the information provided by the customer, the insurer before the insurance contract is concluded the insurance contract appropriate to the complexity of the customer's requirements find out.
(5) the obligation of the insurer prior to the conclusion of the contract the customer should have to explain, virsapdrošināšan or zemapdrošināšan, if it may affect the interests of the client.
(6) prior to unit-linked life insurance contract, the insurer is obliged to provide the client with information about all the deductions that were withheld from the customer in unit-linked life insurance contracts.
(7) where the insurer after the conclusion of the contract of insurance of natural persons are in dispute, the insurer is obliged to prove that this article is the fourth, fifth and sixth requirements. Policyholder's signature on an insurance application or policyholder approval to the conclusion of the insurance contract, the policyholder and the other insurers in a consistent way is sufficient proof of this article, the fourth, fifth and sixth requirements, unless the policyholder proves the contrary. "
5. Express article 10 paragraph 6 of the third part of the "g" section as follows: "(g)), which reflect the financial position at the end of the reporting period, and a report on the financial performance report for the period".
6. Make article 13, first paragraph, point 9 "f" section of the following: "(f)), which reflect the financial position at the end of the reporting period, and the report on financial performance for the current period."
7. Turn off article 26 in the fifth paragraph, the words "or additional information".
8. Article 32 1.1 part: Express 1 and 2 in the following wording: "corporates 1) that cover this law 12 the first paragraph of article 10, 11, 12, 13, 14, 15 and 19 of the insurance referred to in paragraph ways is 3.5 million euros equivalent in lats, recalculated following the Bank of Latvia rates, but other companies — 2.3 million euros equivalent in lats, recalculated by the rate of the Bank of Latvia;
2) mutual insurance cooperative associations, which cover this law 12 the first paragraph of article 10, 11, 12, 13, 14, 15 and 19 of the insurance referred to in paragraph ways is 2.7 million euro equivalent, translated in Latvian Bank rate, but other mutual insurance cooperatives societies — 1.8 million euros equivalent in lats, recalculated by a Latvian Bank rate; ";
replace the introductory part of paragraph 4, the words "three million" with a number and the words "3.2 million euro".
9. To supplement the law with article 50.1 the following: ' article 50.1. (1) an insurance company or an affiliate of the insurer by the Member State, at least once a year, perform a critical analysis of the situation, which assess and document the possible development scenarios. Critical analysis of the situation of vulnerability and scenarios used in the tests. Sensitivity tests are carried out to determine the individual risk factors for adverse impact of the changes, and scenario tests are carried out to determine the number of risk factors at the adverse impact of the changes, assessing the exceptional but possible adverse event or market conditions change. Insurance companies or non-Member State of the branch of the insurer's management, taking into account the significant risks and their corresponding risks, develop and approve the critical analysis of the situation and is responsible for compliance with this policy.
(2) an insurance company or an affiliate of a member insurer's management approved the critical analysis of the situation and take a decision on the action to be taken in the critical analysis of this event or change in market conditions in the event of accession. Insurance company or insurer of the Member State of the branch, in critical situations, the analysis results and the decision on the activities to be carried out shall submit financial and capital market Commission within 10 days after the date of adoption of this decision.
(3) financial and capital market Commission has the right to impose additional requirements in critical analysis of the situation and carrying out of this analysis.
(4) in addition to the first part of this article in the financial and capital market Commission has the right to have the insurance company or insurer of the Member State of the branch carried out a critical analysis of the situation, and to determine the factors and scenarios to be tested. "
10. Express article 57, second part of the second sentence as follows: "at least report that reflects the financial position at the end of the reporting period, and the report on financial performance for the current period, as well as the sworn public auditor's opinion translated Latvian language."
11. the express 54 third part of article 3 by the following: "3) project, which reflect the financial position at the end of the reporting period, and the report on financial performance for the current period."
12. Article 74: make the first paragraph by the following: "(1) the opening of winding-up proceedings, an insurance undertaking or non-Member State of the branch of the insurer shall prepare a report that reflects the financial position to salvage the start day. This report shall be drawn up according to the financial and capital market Commission's regulatory arrangements for the preparation of the annual report and shall be accompanied by the Board and Council reports for insurance companies or non-Member State of the branch of the insurer and the context position and the estimated liquidation results. ";
make the third paragraph as follows: "(3) the process of liquidation, the liquidation is prepared closing statement, which reflects the financial position at the end of the reporting period."
13. Replace article 93, first paragraph, point 1, the number "2000" with the number "10 000".
14. Supplement article 99 with 4.1 part as follows: "(41) the financial and capital market Commission monitoring process before a decision is taken on the basis of the information available to assess the potential impact on the decision of the other Member State the stability of the financial system."
15. Supplement article 105 in the second paragraph by the following: "(2) an insurance company or a non-Member State of the branch of the insurer's obligation to cooperate with the financial and capital market Commission, making him the first paragraph of this article."
16. Make 109. the first paragraph by the following: "(1) If the conditions of this law, article 6.1 and 7, article 8.2 of the fourth, fifth and sixth subparagraphs, article 18, second and third parts, 24, 29.2, 35.1, 41, 42, 43, 46, 42.1, 47, 49, 50, 56, 57, 50.1, 60, 60.1, article 63 and 104, the second subparagraph of article 105 of the law" on insurance "6. the second paragraph of article 24.1 and article 55, and Criminal money-laundering and terrorist financing prevention law, financial and capital market Commission is entitled to impose on the insurer to fines of up to 10 000 lats. "
17. the express article 118 paragraph 6 by the following: "6) claims that are posted to the insurance company or insurer of the Member State reports, which reflect the financial position at the end of the reporting period, liability in connection with its affiliates in the Republic of Latvia business, and operations with claims that are found after the opening of winding-up proceedings;".
The law shall enter into force on January 1, 2010.
The Parliament adopted the law in 2009 December 10.
President Valdis Zatlers in Riga V 2009 December 30