Reinsurance Law Amendments

Original Language Title: Grozījumi Pārapdrošināšanas likumā

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Read the untranslated law here: https://www.vestnesis.lv/ta/id/203009

The Saeima has adopted and the President promulgated the following laws: the law of reinsurance done reinsurance Act (Republic of Latvia Saeima and the Cabinet of Ministers rapporteur, 2008, no. 15; 2009, 7 no) the following amendments: 1. Replace the entire law, the word "Euro" with the word "Euro".
2. Supplement article 1 to 31 by the following: "31) analysis of the situation — a critical analysis by the reinsurance undertaking or non-Member State the reinsurers branch to identify and assess the various exceptional but possible adverse event or change in market conditions, the likely effect on reinsurance undertakings or non-Member State the reinsurers branches could completely run from reinsurance contracts and obligations to ensure the stability of the financial transaction."
3. Express article 15, first paragraph, point 8 "k" section as follows: "k"), which reflect the financial position at the end of the reporting period, and the report on financial performance for the current period. "
4. To supplement the law with 26.1 article 26.1: "this article. (1) the reinsurance undertaking or non-Member State the reinsurers branch 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. Reinsurance undertakings or non-Member State of the branch management, reinsurers in the light of significant risks and their corresponding risks, develop and approve the critical analysis of the situation and is responsible for compliance with this policy.
(2) the reinsurance undertaking or non-Member State of the branch's management approved reinsurers in 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. Reinsurance undertaking or non-Member State the reinsurers branch of emergency situation, 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 require reinsurance undertakings or non-Member State of the branch shall take the reinsurer to critical analysis of the situation, and to determine the factors and scenarios to be tested. "
5. Turn off the article 32, fifth paragraph, the words "or additional information".
6. Make the second paragraph of article 49 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."
7. To express 60. the second paragraph of article 1 and paragraph 2 by the following: "1) reinsurance undertakings and reinsurers, branches of the Member is the equivalent of 3.2 million euro expressed in the Latvian Bank rate;
2) captive reinsurers is of 1.1 million euros equivalent in lats, recalculated by the Latvian Bank rate. "
8. Express article 66 the third part 3 as follows: "3) project, which reflect the financial position at the end of the reporting period, and the report on financial performance for the current period."
9. Supplement article 74 to the 3.1 part as follows: "(31) 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."
10. Add to article 78 of the third part as follows: "(3) a reinsurance undertaking or a non-Member State the reinsurers for branch has a duty to collaborate with the financial and capital market Commission, making him the first paragraph of this article."
11. To make 90. the second paragraph of article 5 of the following paragraph: "5) of reinsurance and retrocession operations;".
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