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, no. 12) the following amendments: 1. Replace the text of the Act, the word "Finance" with the word "financial".
2. in article 1 point 2: turn off;
make paragraph 3 by the following: "3) insurer — in the commercial record: a) company in the form of a joint stock company or mutual insurance cooperative society, which under this Act has the right to take insurance (insurance company), (b) a foreign affiliate of the insurer), which under this Act has the right to take insurance;"
Supplement point 4 with the words "for which the home (registration) in the country have the right to take insurance";
Replace paragraph 7, the word "company" with the word "company";
turn off paragraph 8;
make paragraph 9 by the following: "9) technical reserves, according to the concluded insurance contracts and the estimated potential for reinsurance insurer obligations;"
to supplement the article with 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24 and 25 as follows: "10) close relations — two or more person correlation: a) in the form of membership — the person directly or by way of control is 20% or more of the voting rights of a company, or a person directly or by way of control acquired a participation, which covers 20% or more of the share capital of the insurance company or the number of voting shares , (b), (c) the type of control)) to one and the same person by a control;
11) Member insurer — a foreign insurer registered in a Member State and who headquarters (registration) in the country have the right to insurance;
12) Member State: a Member State of the European Union or the European economic area;
13) insurance company branch, territorial or otherwise segregated unit, which does not have legal personality, acting on behalf of the insurance company;
14) foreign affiliate — of the insurer in Latvia up and registered foreign insurer subsidiaries acting as: (a) the Member State of the branch of the insurer), established in the Republic of Latvia and the Member insurer registered affiliate, (b) not a member insurer's) branch in the Republic of Latvia established and registered member of the branch of the insurer;
15 Member States, insurers) is not a foreign country (outside the State) registered insurers that home (registration) in the country have the right to insurance;
16) (registration) in the home country: the country in which the insurer's control;
17) the country in which the insured risk associated objects: (a) the insured) the country in which the immovable property insured or the assets (property), if they are insured with the same insurance contract, (b)) the country of registration of the vehicle, if it is insured for any type of vehicle, (c)) the State in which the policyholder bought a policy with a maturity of up to four months, insuring any travel or travel-related risks , d) in all other cases, other than those referred to in points "a", "b" and "c" section, the policyholder's country of residence or, if the policy-holder is a legal person, the State in which the it Department, to which the insurance contract;
18) a member of the Fund — a company that under this Act has the right to take insurance, and the insurer of the foreign affiliate that makes payments to the insured protection fund;
19) related group of people: two or more persons who constitute a common risk for insurers: a) one of those persons directly or indirectly controlled by another person or other persons, (b)) they are related in such a way that one person's financial problems may cause to another person or other persons debt payment difficulties, although does not exist between the persons referred to in a relationship;
20) control — a person has control of the company, if: (a) that person is a commercial company) a decisive impact on participation, (b) that person is a commercial company) a decisive impact on the Group's contract, c) between that person and the company exists any other "a" or "b" referred to in subparagraph relationships analogous relationships;
21) qualifying holding, directly or indirectly, for participation, which covers 10 and more percent of the share capital of the company (the company) or the number of voting shares, giving you the chance to significantly affect the company's (the company) financial and operational policy;
22) a management authority of the insurer, the competent institution in accordance with the law has the right to carry out monitoring of the insurer in their home (registration);
23) insurance intermediaries, insurance agent, insurance agency and brokerage company;
24) parent company — company, which controls another company;
25) subsidiary company: a company that is controlled by another company. "
3. Express article 2 by the following: ' article 2. This law establishes the insurance company, a foreign affiliate of the insurer, insurance intermediaries and reinsurers, governs the legal status of their operations and surveillance. "
4. Article 4: replace the first part of the word "Board" with the word "management";
to turn off the second and third.
5. To make article 6 by the following: "article 6. Only the insurer and insurance intermediary in your name, you can use the word "insurance" in the fold, and any words. "
6. in article 7: make the first part of paragraph 2 as follows: "2) provide an intermediary for another insurer, insurers and reinsurers in a Member State. No Member insurer may provide intermediary services in accordance with the third paragraph of this article. ";
replace the second part of paragraph 1, the word "business" with the word "business";
make the third paragraph as follows: "(3) the insurer may provide intermediary services in the Member States not only to the insurer the insurance forms that are not a member of the mandatory if: 1) are created in the insured Defense Fund from which claims not paid in the Member State in the event of insolvency of the insurer;
2) financial and capital market Commission has agreed with the insurance supervisory authorities of the Member States on cooperation and supervision functions required for the exchange of information. "
7. To make article 9 the first paragraph by the following: "(1) the insurer may start only after its recording in the commercial register and the enforcement of this law."
8. Express article 10 and 11 by the following: ' article 10. (1) No insurer shall be the Member State of the branch to enter the Republic of Latvia by the financial and capital market Commission licence. Branch can provide insurance services exclusively in the insurance specified in the licence.
(2) a licence shall be issued if: 1 the Member insurer) does not meet the following requirements: (a) it is entitled to provide) insurance services (registration) in the home country in accordance with national law, (b)) it registered in the Republic of Latvia of its affiliate, c) it undertakes to sort the Member State of the branch of the insurer not accounting according to the laws of the Republic of Latvia and the financial and capital market Commission's regulatory arrangements, (d) it shall appoint a member insurer) a branch manager that meets the requirements laid down in this Act No Member insurer, e) affiliates have transferred funds 32 of this law, the first paragraph of article 3 set out in the paragraph, of which not less than half the money invested in the Republic of Latvia registered credit institution as security, f) it undertakes to respect the Republic of Latvia is not a Member State of the branch specific insurer solvency margin;
2) financial and capital market Commission has agreed with the insurer's home Member State (registration) the national insurance supervisory bodies for supervisory tasks necessary for the exchange of information and cooperation in the area of insurance supervision.
(3) in order to receive a licence, the Member State shall submit to the insurer not financial and capital market Commission: 1) application for issue of the licence is not a Member State of the branch of the insurer and indicate the type of insurance that requires a license;
2) notice of the second paragraph of this article referred to in paragraph 1, compliance with the requirements;
3) a document certifying payment of the State fee paid for a licence;
No Member insurer's 4) Branch rules;
5) credit issued document confirming cash contribution by the Member State of the insurer not branch specific minimum guarantee fund for the creation and the size of the security deposits;
6) action plan for the first three years. The plan shall include: (a) a description of the planned insurance), b), c), samples of policies of tariff calculation methodology,

d) methodology for the calculation of technical provisions, reinsurance program, e) f) start-up costs required for calculation and information on sources of funds to cover these expenses, g) of the income statement and balance sheet to the project;
7) the internal control system of the key elements of the policy framework and its description and a description of the procedure, including: (a) the Member State of the insurer), the organisational structure of the branch with its driver clearly specified powers and responsibilities, the tasks of the branch departments and their managers responsibilities, (b)) the accounting policies and accounting principles of the Organization, (c)) financial risk management policy, d) management information system description, e) information system protection rules f) internal audit (inspection) system description , g) unusual and suspicious financial transactions the identification procedures, h) of the Act the procedure laid down in article 29.1;
8 sworn auditor verified) not a member insurer's last three years of operation;
9) news on the State of the insurer not Branch Manager in accordance with this law, in article 20 and 21.
(4) If an insurer's branch of the Member State wish to receive a license to help insurance, in addition it submits that article 13 of the law, the information referred to in the third subparagraph. If you are not yet a Member State of the branch of the insurer to be licensed terrestrial vehicle liability insurance and plans to carry out a land vehicle insurance against civil liability in respect of, it shall submit a written confirmation that no Member State of the branch of the insurer's Office or vehicle bodies and the relevant analogue guarantee fund.
(5) the financial and capital market Commission shall examine the application and, within three months after all the necessary, according to the legislative requirements for the receipt of documents drawn up by adopting appropriate decisions.
(6) the financial and capital market Commission is entitled to refuse authorisation in the following cases: 1) is not economically justified;
2 member of the insurer) Branch Manager does not meet the requirements set out in this Act;
3 member of the insurer) is not planned in the activity of the branch do not meet this law and other legislative or regulatory requirements;
4) in accordance with the home Member State insurers not (registration) law of the financial and capital market Commission has restricted the right to carry out monitoring functions of the branch;
5) documents submitted contain false or incomplete information;
No Member insurer 6) affiliates in action transferred funds obtained unusual or suspicious financial transactions or not documented proven this money legal mining;
the Member insurer 7) without the organisational structure of the branch does not allow to provide the monitoring;
8) an insurer shall exercise their financial position improvement plan.
(7) in order to get the licence for another type of insurance, the insurer is not a member Affiliate shall submit financial and capital market Commission: 1) the third paragraph of this article 1 and referred to in paragraph 3;
2) new type of insurance required for the implementation of expenditure and information about sources of funds to cover these expenses;
3) action plan one year then the classes for which the licence is requested, indicating the third part of this article 6, point "a", "b", "c", "d" and "e" referred to information as well as a profit and loss statement for the relevant insurance type and planned technical provisions.
 
11. article. (1) an insurance company wishing to establish a branch in a Member State, subject to the requirements contained in this article, before the opening of the branch in writing notify the financial and capital market Commission.
(2) insurance company notice of the opening of the Branch includes the following information: 1), the Member State in which the insurance company plans to open a branch;
2) the action plan three years ago, the services offered and the organisational structure of the branch;
3) insurance companies in the Member State the address of the branch (address to use for sending and receiving of information);
4) news about insurance company Branch Manager (the person who, in adopting relevant decisions on behalf of the branch, causing the insurance company civil liability);
5) if the insurance company plans to carry out insurance against civil liability in respect of the use of motor vehicles, in addition to the notification shall contain the following information: a) an insurance company representative authorised to take a decision on the cost of claims, and his address in the Member State b) proof that the insurance company is a Member State of the vehicle or of the Office of the organisation and the analogue guarantee fund.
(3) the financial and capital market Commission within three months after all the second part of this disclosure, inform the Member State of the branch of the insurance supervisory authorities and insurance companies, including assurances on insurer solvency requirements compliance with the requirements set out in law, except in the financial and capital market Commission is not satisfied with the insurance companies and the organizational structure of the branch or the financial situation of an insurance undertaking or an insurance company branch manager does not comply with this law, in article 20 and 21.
(4) if the financial and capital market Commission decides not to submit this article the information referred to in the third subparagraph the Member State of the branch of the insurance supervisory authority, within three months after all the law in the receipt of that information to send to the insurance undertaking of the decision in question.
(5) the Member State of the branch of the insurance supervisory authority within two months of the financial and capital market Commission notification may inform the financial and capital market Commission of public interest in the protective laws contained requirements that must be followed, providing insurance services in the Member State of the branch. Financial and capital market Commission in writing without delay inform the insurance company of the Member State of the branch.
(6) After the fifth paragraph of this article, the information referred to in or on the expiry of that period the insurance company can open a branch in a Member State and to initiate the provision of insurance services.
(7) an amendment of the second paragraph of this article, 2, 3, and 4. the information referred to in paragraph 1, the insurance company shall, not later than 30 days before the amendment in writing inform the financial and capital market Commission and the Member State of the branch of the insurance supervisory authority. Financial and capital market Commission and the Member State of the branch of the insurance supervisory authorities can take 30 days after receipt of the notice by the insurance companies, respectively, in this article, the third and the fifth part of these decisions. Financial and capital market Commission decision sent to the insurance company and the Member State of the branch of the insurance supervisory authority. If the financial and capital market Commission disagrees with the insurance company of the amendments, the decision shall state the reasons for the refusal. "
9. To supplement the law with 11.1, 11.2, 11.3, 11.4 and 11.5 article as follows: "article 11.1. (1) insurance company opens branch in the Member State not only on financial and capital market Commission authorisation.
(2) in order to receive permission to open a branch in the Member State, not the insurance company shall submit financial and capital market Commission an application for the opening of the branch, indicating: 1) not a Member State of the branch address (the address for sending and receiving information);
2) news on the Branch Manager in accordance with this law, in article 20 and 21;
3) organisational structure of the branch;
4) action plan for the first three years.
(3) the financial and capital market Commission application for authorisation in the Member State of the branch opening, consider and adopt a decision within 30 days after all the statutory laws, according to the requirements of the document presented.
(4) the financial and capital market Commission shall not grant authorisation for the opening of a branch Member State in the following cases: 1) the opening of a branch is not economically justified;
2) insurance companies filed documents containing false or incomplete information;
3 the organisational structure of the branch) does not allow to provide the monitoring;
4) Branch Manager does not comply with this law, in article 20 and 21;
5) Member State not laws or other laws limit the financial and capital market Commission to carry out the monitoring functions;
6) financial and capital market Commission of its independent circumstances concluded cooperation and information exchange with Member States the Treaty of insurance supervisory authorities;
7) company financial position is implemented for the improvement plan.

(5) an amendment of the second paragraph of article 3 and 4, the information referred to in the insurance company no later than 30 days before the amendment in writing inform the financial and capital market Commission. Financial and capital market Commission an application for the amendment of the appearance and the decision shall be taken within one month of the receipt of all required documents.
(6) the financial and capital market Commission decision sent to the insurance company. If the financial and capital market Commission refused to issue the permit or disagrees with the insurance company of the amendments, the decision shall state the reasons for the refusal.
 
11.2 article. (1) for the Member State of the branch of the insurer could initiate the provision of insurance services in the Republic of Latvia, the finance and capital market Commission should receive a management authority of the Member State of the notification of the insurer, which contains 11. this law referred to in the second paragraph of article information. Two months after receiving a notification, the financial and capital market Commission shall inform the Member State supervisory authorities on the insurer's public interest in protective laws contained requirements that must be followed, providing insurance services in the Republic of Latvia.
(2) the Member State of the branch, the insurer can initiate the provision of insurance services in Latvia immediately after the financial and capital market Commission of the information from the management authority of the Member State or of the insurer after the first part of a two month deadline.
 
11.3 article. (1) the insurance company, which is still subject to the principle of freedom to provide services, to provide insurance services in a Member State, without having to open the branch of its intention in writing notify the financial and capital market Commission.
(2) an insurance company the notice shall contain the following information: 1), the Member State in which an insurance undertaking intends to provide the insurance services;
2 risks insured).
(3) If the insurance company plans to carry out insurance against civil liability in respect of the use of motor vehicles, in addition to the notification shall contain the following information: 1) the insurance company representative authorised to take a decision on the cost of claims, and his address in the Member State;
2) proof that the insurance company is a Member State of the vehicle or of the Office of the organisation and the analogue guarantee fund.
(4) the financial and capital market Commission within 30 days after all the second and third subparagraphs to this disclosure sends it the insurance supervisory authorities of the Member State in which an insurance undertaking intends to provide services, insurance information, which includes: 1) proof that insurance companies comply with the solvency margin;
2) insurance in which the insurance undertaking authorised to provide insurance services;
3 the risk to be insured) the insurance company plans to insure Member State;
4) referred to in the third subparagraph, if the insurance company plans to carry out insurance against civil liability in respect of the use of motor vehicles.
(5) if the financial and capital market Commission within 30 days after the second and third subparagraphs of the receipt of the notification referred to in the decision of the fourth paragraph of this article, the information referred to in the Member State of dispatch supervisory institution, it shall immediately send the decision to the insurance company. The decision shall specify the reasons for the refusal.
(6) the insurance company, subject to the principle of freedom to provide services, the Member State of provision of services, without having to open the branch, you may start with the date when it received the financial and capital market Commission notice on this article, the fourth part of the information referred to in the Member State of dispatch the insurance supervisory authority.
(7) If the insurance company wishes to amend the second and third subparagraphs in that the information contained in the notification, it shall comply with this article in the fourth, fifth and sixth part.
 
11.4 article. (1) a member insurer, subject to the principle of freedom to provide services, the provision of insurance services in the Republic of Latvia, without opening the branch, you may start with the date on which it received the State insurance supervisory authority's statement of this law, in the fourth paragraph of article 11.3 of the notification sent to the financial and capital market Commission.
(2) If the information contained in the notification is amended, those in the Republic of Latvia shall enter into force on the day when the financial and capital market Commission of the Member State concerned is received by the insurance supervisory authority notice of amendments.
 
11.5 article. A member insurer may make big business, not subject to this law, and article 13 11.2 11.4. Large risks, financial and capital market Commission, taking into account the types of insurance or the policyholder. "
10. Article 13: the first part of the expression (4) as follows: "4) list of the shareholders who have a significant interest. News for shareholders of the financial and capital market Commission, to ensure your reputation, sufficiency of financial resources and financial stability, as well as to verify the identity of the shareholders. If the shareholder is a legal person shall also submit details of their shareholders and owners — natural persons. In the absence of such information in the financial and capital market Commission or are not received by the insurance company refuses to provide it, the financial and capital market Commission not to issue a licence; ";
turn off the first part of paragraph 8, first sentence, the words "(organizational)" and the second and third sentence;
to supplement the first part of paragraph 10 by the following: ' 10) the key elements of the internal control systems and internal control systems and procedures of the basic principles of the policy description, which contains: a) insurance company organisational structure with clearly specify the powers and duties of managers, business unit manager of tasks and responsibilities, (b)) the accounting policies and accounting principles of the Organization, (c)) financial risk management policy, d) management information system description , e) information system protection rules f) internal audit (control) description of the system, g) unusual and suspicious financial transactions, identification procedure, h) of the Act the procedure laid down in article 29.1. ";
replace the third paragraph, the words "the insurer who" with the words "insurance company, which";
to supplement the article with the fourth paragraph as follows: "(4) an insurance undertaking who wishes to be licensed terrestrial vehicle liability insurance and plans to carry out a land vehicle insurance against civil liability in respect of, submit financial and capital market Commission, the written proof that the insurance company's Office or vehicle bodies and the relevant analogue guarantee fund."
11. Express article 15, first subparagraph as follows: "(1) the financial and capital market Commission shall not grant a licence for the conduct of insurance if: 1) is not economically justified;
2) applicant's close relationship with the third parties may compromise its stability and limit the financial and capital market Commission's ability to carry out the monitoring functions;
3) other State laws and other regulations that apply to persons who have a close relationship with the applicant, the limited financial and capital market Commission's right to undertake monitoring functions;
4) documents submitted by the applicant containing incorrect or incomplete information;
5) one or more of the 20 and 23 of this law the persons referred to in article does not meet the statutory requirements;
6) financial and capital market Commission finds that the financial resources invested in fixed capital formation which, in unusual or suspicious financial transactions or not documented proven this financial legal mining;
7) it is not possible to ascertain the applicant's shareholders and the identity of the owner, excellent reputation and financial stability;
8) applicant's organizational structure is not possible;
9 the applicant's planned activities) does not comply with this law and other legislative or regulatory requirements;
10) is implemented for the improvement of the financial situation. "
12. in article 16: replace in paragraph 4, the word "business" with the word "business";
Add to article 8 and paragraph 9 by the following: ' 8) the insurer fails to comply with this law, in article 13, first paragraph, referred to in paragraph 9, the action plan does not comply with the other provisions of this law, as well as the financial and capital market Commission's rules and regulations issued by order of the requirements that were identified in the licence;
9) the insurer more than two months after the financial and capital market Commission notice of voluntary withdrawal of the licence and has not made full payment of insured protection fund. "
13. Replace article 18, third subparagraph, the words "company (company)" with the word "company".

14. Express article 19 the first part as follows: "(1) the financial and capital market Commission, suspend or cancel a license for insurance, the insurer is entitled to restrict the action with its assets, cost and new commitment."
15. Article 20: make the first paragraph by the following: "(1) of the insurance companies, the Chairman of the management board the Management Board, internal audit (audit) Service Manager (company Inspector), not the main actuarial Member insurer's branch manager, actuary, as well as the main person, assuming the essential decisions on behalf of the insurer, the insurer raises civil commitments, can be a person who meets the following requirements: 1) it is a domestic taxpayer (resident);
2) it is sufficiently competent in the area of its responsibility to ensure that the Management Board of the insurance undertaking are designed so that the insurance company should be able to consistently, professional, high quality and relevant legislation to make insurance requirements;
3) it requires education and not less than three years of work experience in the field in question;
4) it's perfect reputation;
5) it is not deprived and have not been deprived of the right to do business. "
make the third paragraph as follows: "(3) it is the duty of the Insurer or by the financial and capital market Commission to immediately withdraw from the post of the first paragraph of this article, if it is found that it does not correspond to the position that its conduct is detrimental to the financial stability of the insurer, or created a situation that may threaten the financial stability of the insurer or the policyholder interests, or if it does not meet the first part of this article and in article 21 of this law."
16. Article 21: make the introductory paragraph as follows: "(1) of the insurance companies, the Chairman of the management board the Management Board, internal audit (audit) Service Manager (company Inspector), not the main actuarial Member insurer's branch manager, actuary, as well as the main person, assuming the essential decisions on behalf of the insurer, the insurer raises civil obligations, may not be the person:";
replace 1, 2 and 3, the word "crime" with the words "criminal offence";
to supplement the article with a paragraph 4 as follows: "4) which called the criminally liable for intentional criminal offence, but the criminal proceedings against them terminated on an reabilitējoš basis.";
to supplement the article with the second part as follows: "(2) an insurance company or insurer is the responsibility of the Member States or by the financial and capital market Commission to immediately withdraw from the post of the first paragraph of this article, if they can be subject to the first paragraph of this article 1, 2, 3 or 4 below.";
believe the current text of the first part of the article.
17. the express article 22 the following: ' article 22. (1) The insurance company, the President of the Council and Council member can be a person who complies with this law, article 20, first paragraph 2., 3., 4. and 5. the requirements referred to in paragraph 1. For insurance companies, the President of the Council and a member of the Council may not be the person that should this law article 21, first paragraph, 1, 2, 3 or 4.
(2) shareholders (members) it is the responsibility of the meeting or by the financial and capital market Commission to immediately withdraw from the post of the first paragraph of this article, if it is found that it does not correspond to the position that its conduct is detrimental to the financial stability of the insurer, or created a situation that may threaten the financial stability of the insurer or the policyholder interests, or if it does not meet the requirements laid down in this article. "
18. Supplement article 23, after the words "life insurance" with the words "and any type of liability insurance".
19. in article 24, paragraph 1: turn off;
make point 2 as follows: "2) allow the insurance companies to the Chairman of the Management Board, Deputy Chairman of the Management Board, internal audit (audit) Service Manager (Controller of the public) of the Member State of the branch of the insurer not driver and Chief Actuary must begin to carry out his duties;"
turn off the 4, 5 and 6.
20. off article 25.
21. Make 26, 27 and 28 of the article as follows: "article 26. (1) any person, if it wants to get a qualifying holding in an insurance undertaking, the advance in writing when submitting application to the financial and capital market Commission. The application shall specify the extent of the percentage participation of the share capital of an insurance undertaking or of the number of voting shares.
(2) If a person wishes to increase his qualifying holding, reaching or exceeding 20, 33 or 50 per cent of the share capital of an insurance undertaking or voting shares, or an insurance company becomes a subsidiary of the person, of such decision in writing in advance by submitting an application to the financial and capital market Commission. The application shall specify the extent of the percentage participation of the share capital of an insurance undertaking or of the number of voting shares.
(3) the financial and capital market Commission within three months from the date of receipt of the first and second part of this submission, assess a person's reputation, financial standing and, if the financial and capital market Commission considers that such a significant acquisition or the increase does not provide a financially sound, prudent and appropriate laws and insurance company management because the person does not comply with the insurance company shareholders statutory requirements , it does not agree with the significant acquisition or for capacity building and for following its decision shall immediately be notified to the person concerned and the insurance company.
(4) the financial and capital market Commission should have the right to request additional information on the persons referred to in this article to know about their reputation and financial condition.
 
27. article. Assessment of article 26 of this law in the first and second paragraphs of these submissions, the financial and capital market Commission shall consult with the Member State insurance supervisory bodies, if the proposed acquirer is one of the major established in a Member State or registered in a Member State of the insurer the insurer's parent company, or the person who controls the insurer registered in a Member State, and if, the person acquiring or increasing the participation of the relevant insurance company becomes the person's subsidiary or come under its control.
 
28. article. If a person wishes to terminate his/her qualifying holding insurance company, such decision in writing in advance by submitting an application to the financial and capital market Commission. The application shall specify the person remaining insurance company the share capital of or number of shares voting percentage. If a person wants to reduce his qualifying holding below 20, 33 or 50 per cent of the share capital of an insurance undertaking or of the number of voting shares or insurance company ceases to be a subsidiary of the person, of such decision in writing in advance by submitting an application to the financial and capital market Commission. "
22. To supplement the law with 28.1, 28.2 and 28.3 of the article as follows: "article 28.1. (1) the insurance company shall, without delay, as soon as it has found out, in writing, by the application of the financial and capital market Commission for substantial participation of any person, increases or decreases. The application indicates the participation of the person concerned as a percentage of the amount the insurance company's share capital or voting shares or information about the termination of a qualifying holding.
(2) the insurance company, in accordance with the procedure laid down in the law, submitting financial and capital market Commission annual report shall also be submitted at the same time, the list of all shareholders who own qualifying holdings in the insurance companies. At that point, in accordance with the law to the general meeting of shareholders to be produced in the list, and the amount of the qualifying holding of shareholders as a percentage of the insurance undertaking's share capital or voting shares.
 
Article 28.2. (1) if the qualifying holding acquired a personal impact on insurance companies can threaten or endanger its financially sound, prudent and regulations according to the management, financial and capital market Commission to immediately stop such effects, as well as, if necessary, withdraw the insurance company board or any Board member or prohibit the use of all the voting rights of shares belonging to the significant participation of the graduates concerned persons.
(2) if the person has not complied with this law, article 26 of the first or second part of the financial and capital market Commission will apply this law to the rights referred to in article 28.2.

(3) If a person has acquired or boosted their qualifying holding before the financial and capital market Commission's ban on the receipt or if the person is not subject to the financial and capital market Commission's ban, obtain or increase the qualifying holding, it does not have the right to use all the voting rights of the shares belonging to it, as well as the decision of the general meeting are adopted through this stock voting rights, have effect from the date of their adoption and on the basis thereof must not do in the commercial records and other public records.
 
17.6 article. Determining the indirect participation of the person for the amount of the insurance company, takes into account the acquired voting rights of such company: 1) the voting rights arising from the shares for which the person's task got a third party on your behalf;
2) voting rights arising from the shares, which gained the company located in the person's control;
3) voting rights held by a specific person in a written contract concluded with third parties about the sustained or systematic common action with regard to the management of the insurance undertaking;
4) belonging to third persons the right to vote, which the person or company that is in the person's control, in accordance with the written contract is the right to use a specific period or without a time limit for payment or not;
5) voting rights arising from the person holding the transferred shares, of which the person is entitled to use at their discretion without a separate task from the person who owns the shares;
6) voting rights arising from the shares for which the person transferred to third parties as security without losing voting rights deriving from them;
7) voting rights arising from the shares for which a person is entitled to obtain under a written agreement, depend solely on that person's own;
8) voting rights arising from the shares for which the person is obtained their borrowing, reverse repurchase or similar transactions;
9) voting rights arising from any other persons indirectly acquired the shares. "
23. To supplement the law with article 29.1 of the by the following: ' article 29.1. It is the responsibility of the insurer in writing to develop and follow internal procedures: 1) are honest and open attitude to the policyholders, providing insurance services;
2) insurer provides the policyholder information requested for insurance transactions concluded between the insurer and the policyholder, as well as the term (not exceeding 30 days) for providing this information;
3) insurer provides your employees ' potential conflicts of interest, receive and use the insurance business information. "
24. Article 30 of the expression as follows: "article 30. (1) in order to ensure the financial stability of the insurer, the insurer operating in constant action must be the same. Not a Member State of the branch of the insurer's own funds are not of the Member insurer's funds placed it. The procedure of the calculation of the own funds of the financial and capital market Commission.
(2) the insurer shall promptly inform the financial and capital market Commission of the own funds decline reasons if they fall by 10 percent and more in comparison with the previous financial statements in contains. "
25. Add to article 31 of the fourth subparagraph by the following: "(4) the financial and capital market Commission, the insurer may set a higher solvency margin, if: 1) the insurer is required to prepare this law referred to in article 59 of the financial situation of the improvement plan;
2) insurer substantially reduces or ceases the insurance (reinsurance). "
26. Express article 32 the following: ' article 32. (1) the minimum guarantee fund size: 1) commercial companies 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, there are three million euros, while other companies — two million euro;
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 2.3 million euros, while other mutual insurance cooperatives societies — 1.5 million euro;
No Member insurer's 3) branch: 100 percent of the first paragraph of this article referred to in paragraph 1.
(2) an insurance company may invest only in fixed capital funds, except when the financial and capital market Commission's insurance company is reorganized.
(3) the establishment of an insurance company, its own funds must not be less than the minimum of the guarantee fund's size. "
27. Article 33 of the turn.
28. Turn 36, 37 and 38 of the article.
29. Article 39: make the first paragraph by the following: "(1) technical provisions to create the same currency in which the insurer is undertaken according to the concluded insurance contracts and assumed reinsurance.";
to supplement the first sentence of the second paragraph, after the words "insurance and" with the word "adopted";
Replace in the second sentence of the second paragraph, the word "Board" with the word "management".
30. Article 40 of the expression as follows: "article 40. (1) Insurers who cover this law, article 12, first paragraph, point 19 referred to in the insurance form, creates the life insurance technical reserves. The insurer, which concluded a unit-linked life insurance contracts, establishing the market linked life insurance technical reserves.
(2) Insurers who cover this law, article 12, first paragraph, 1., 2., 3., 4., 5., 6., 7., 8., 9, 10, 11, 12, 13, 14, 15, 16, 17 and 18 in those classes, create: 1) unearned premiums reserve technical;
2) for outstanding technical reserve, relating to: (a)) which are the application for claims received but not paid insurance claims, or has not been paid in full, (b)) which have occurred, but for which claims have not yet been received.
(3) the insurer who made this law, insurance, article 12, first paragraph, referred to in paragraph 14 of the classes, in addition to the second paragraph of this article, the technical provisions referred to in financial and capital market Commission in the order establishing the Equalization technical reserve.
(4) the insurer who made this law, insurance, article 12, first paragraph, 1., 2., 3., 4., 5., 6., 7., 8., 9, 10, 11, 12, 13, 14, 15, 16, 17 and 18 in these classes to ensure this law article 39, as well as taking into account the particularities of the insurance type, in addition to the second part of this article, the following technical reserves may create the following technical reserves : 1) equalization reserve;
2) unexpected risk reserve.
(5) the insurer who made this law, insurance, article 12, first paragraph, point 19 referred to insurance, to ensure this law article 39, as well as taking into account the specific nature of insurance, in addition to the first part of this article, the following technical reserves the technical reserve can create bonuses.
(6) while protecting the interests of the insured, the financial and capital market Commission is entitled to require the insurers to establish certain technical provisions.
(7) the financial and capital market Commission issued rules and regulations for the calculation of technical provisions. "
31. To supplement the law with article 24.9 the following: ' article 24.9. (1) the technical provisions must be continuous the full cover to cover the technical provisions.
(2) to cover the technical reserves and technical reserves must be matched by currency.
(3) the financial and capital market Commission determines the allowable deviation of the technical reserves the technical reserve coverage and coordination on currency.
(4) the financial and capital market Commission is entitled to revoke the licence of the insurer, if the technical provisions are not fully covered by this law, with the assets. "
32. in article 41: replace the word "Board" with the word "management";
to supplement the article with the second and third subparagraphs by the following: "(2) the insurer may make a (direct or indirect) investments only in the Republic of Latvia, the Republic of Estonia, the Republic of Lithuania, or in the Member State of the Organisation for economic cooperation and development in a Member State (hereinafter referred to as OECD Member State).
(3) If the insured risk related objects insured in a Member State, assets that are extended to cover the technical reserves, invested in the Member States. ";
believe the current text of the first part of the article.
33. off 41.1 article.
34. Article 42 of the expression by the following: ' article 42. (1) To cover for the technical provisions can be attributed only to the following assets: 1) bonds and other debt securities, confirming the issuer's obligations to holders of securities (hereinafter referred to as debt securities);
2) shares and other equity securities, confirming participation in the capital of the issuer (equity securities);
3) investment fund investment certificates or comparable securities;
4) mortgage-backed loans;

5) investment in real property (land, buildings);
6 deposits with credit institutions);
7) policyholders receivables from direct insurance operations.
(2) that this article is referred to in the first subparagraph may be extended to the assets covering technical provisions, only if the following conditions are met: 1) assets must be assessed in relation to their net acquisition debt;
2) third-party debts or claims against a third party may be used only after deduction of all amounts that the insurer owes to third parties;
3) payment term of delay of no more than three months. This condition applies to policyholders receivables from direct insurance operations;
4) the credit institution has received the license in the Republic of Latvia, the Republic of Estonia, the Republic of Lithuania, the Member State or the Member State of the OECD and is authorised to provide financial services to the country in which the license was issued;
5) debt and equity securities included in the Republic of Latvia, the Republic of Estonia, the Republic of Lithuania established in the official stock exchange or a comparable list, a Member State or registered in a Member State of the OECD official listing on a stock exchange, if the stock exchange is also the international stock exchange of a full member of the Federation. This limitation does not apply to the Republic of Latvia, the Republic of Estonia, the Republic of Lithuania, the Member State or the Member State of the OECD debt securities that are issued by State and local governments. "
35. To replace the words "in article 42.1 technical reserves" with the words "cover the technical reserves".
36. Article 43 be worded as follows: "article 43. (1) the insurer when the structure of the assets covering technical provisions, subject to the following provisions: 1) not more than 10 per cent of the technical reserves may only be applied to one real estate — land and buildings or land and buildings, which due to their location can be considered as one investment, and no more than 25 percent of the technical reserves may only be applied to buildings and land together;
2) not more than five percent of the technical reserves may only be applied to equity securities and debt securities (excluding mortgage mortgage bonds) issued by one issuer. This limitation does not apply to the Republic of Latvia, the Republic of Estonia, the Republic of Lithuania, the Member State or the Member State of the OECD debt securities that are issued by State and local governments;
3) not more than 10 per cent of the technical reserves should be subject to the mortgage of mortgage bonds, issued under the law of mortgage bonds or the laws of a Member State and issued by one issuer, and not more than 25 per cent of the technical provisions in mortgage mortgage bonds together;
4) not more than five percent of the technical reserves may only be applied to one of the Republic of Latvia, the Republic of Estonia, the Republic of Lithuania, the Member State or the Member State of the OECD contribution to the Fund's investment certificates. Closed investment funds investment certificates may invest provided that these units included in the Republic of Latvia, the Republic of Estonia, the Republic of Lithuania, the stock exchange established in a Member State or registered in a Member State of the OECD official listing on a stock exchange, if the stock exchange is also the international stock exchange of a full member of the Federation;
5) not more than 25 per cent of the technical reserves should be subject to the same credit institution deposits;
6) not more than 10 per cent of the technical reserves may only be applied to one with a mortgage secured loan and up to 25 percent on loans generally secured by a mortgage;
7) not more than 10 percent of unearned premiums, of the technical reserves should be subject to the policyholder accounts receivables from direct insurance operations.
(2) the financial and capital market Commission has the right to request changes to the composition and structure of assets, which are extended to cover technical provisions, if the current active composition and structure damage or are likely to damage the financial stability of the insurer and policyholder interests and where it is found in any of the following conditions: 1) there is excessive reliance on some asset classes, investment market or investment;
2) active or the issuer's quality assets are associated with high risk;
3) is a big proportion of illiquid assets.
(3) the value of the assets shall be determined in accordance with the financial and capital market Commission's regulatory arrangements for the preparation of the annual report of the insurer. "
37. Turn off 44, 44.1 and article 45.
38. Make 46., 47 and 48 of the article as follows: "article 46. The insurer may not directly or indirectly lend themselves to the shares or the insurer of the person related to the acquisition of shares, as well as to take on the security of own shares.
 
47. article. Insurer a loan or a guarantee, as well as other similar liabilities incurred due to claims against a person or group of related persons may not exceed 10 per cent of the own funds of the insurer. Such transactions are valid only after their registration in a special register of such insurer's business. Register in electronic form, it shall also include modifications made to the transaction, and the text, and in accordance with the software is able to track all the entries and amendments to the entries made previously.
 
48. article. Insurer's contribution to any one person or group of related persons (other than the insurer's subsidiary) share capital or reserves shall not exceed 10 per cent of the own funds of the insurer. "
39. Article 49: replace the third paragraph, the words "which is the parent company of" with the words "which is the parent company of the group";
to complement the fourth paragraph after the word "insurance" with the words "and any type of liability insurance".
40. To make article 50 as follows: "article 50. (1) in order to ensure that all activities associated with the insurer's risk identification and management of timely, effective protection of the assets of the insurer, the insurer's regulatory bodies information about the insurer's financial position and the accuracy and timeliness of actions, laws, other regulations, policies and procedures of the insurer standing and, if necessary, the insurer shall ensure that effective internal control framework and activities, as well as the standing of the insurer, the decision-making bodies of the Executive Body, independent of the internal control system monitoring.
(2) the financial and capital market Commission make recommendations for internal control system. Such recommendations to the insurer uses its internal control system.
(3) the insurer shall ensure that all insurance contracts concluded and article 90 of this law the insurance policies mentioned in the Treaty. In the electronic register, and in accordance with the software is able to track all the entries and amendments to the entries made previously.
(4) the insurer shall ensure that all contribution agreements, concluded a reinsurance contract, as well as with insurance brokerage firms (insurance brokers) registration of contracts concluded. Register in the electronic, it includes those treaties and the text of the amendments and in accordance with the software is able to track all the entries and amendments to the entries made in the past. "
41. Article 51 off the words "monthly and quarterly".
42. off 52. and article 53.
43. Article 54: replace the second sentence of the first subparagraph, the word "opinion" with the word "report" and the third sentence, the word "opinion" — with the word "message";
turn off the second paragraph, first sentence, the words "company";
adding to the third sentence of the second paragraph with the words "in accordance with article 56 of this law requirements";
make the third paragraph as follows: "(3) If a report given by a sworn auditor or other person who verified the annual report contains notes, dividends may be paid only when it is consistent with the financial and capital market Commission.";
turn off the fourth.
44. Article 56: turn off the first part;
replace the second paragraph, the words "which is the parent company of" with the words "which is the parent company of the group" and the word "opinion" — with the word "message";
adding to the third paragraph with the words "but not later than the year following the reporting year may 15."
45. Article 57 of the expression as follows: "article 57. (1) the insurer's obligation is to ensure that the full annual report after its approval to a report given by a sworn auditor or person who examined the annual report, should be free and available to any interested person could get the full annual accounts and the message text for a fee that does not exceed the reasonable costs of the reproduction.
(2) a foreign affiliate of the insurer, submit financial and capital market Commission related foreign insurer's annual report and the auditor's opinion in full not later than seven months after the end of the reporting year. The annual report and the auditor's opinion, foreign language translation into Latvian language it added. "
46. Replace article 58, second paragraph, the words "profit-sharing" with the words "suspension of dividends".

47. the express article 59 and 60 by the following: ' article 59. (1) the financial and capital market Commission, based on the submitted financial statements and results of the inspections in order to protect the interests of the insured, the insurer may require the improvement of the financial situation of the plan.
(2) the insurer's management is responsible for the improvement of the financial situation of the early development of the plan and execution.
(3) the insurer's financial position improvement plans in the next three years. The plan shall specify: 1) operating expenses (administrative and customer acquisition costs);
2) income for the insurer's activities of insurance and reinsurance operations and related costs;
3) profit and loss statement and balance sheet projects;
4) financial sources from the insurance and reinsurance obligations and the resulting projected solvency margin;
5) reinsurance program.
(4) the financial and capital market Commission may apply safeguard measures if the insurer refuses to submit the financial position improvement plan or plan submitted, the implementation of the measures provided for in not providing remedial and improvement of the financial situation of the insurer, or the plan is not implemented.
(5) the protection of the interests of insured financial and capital market Commission is entitled: 1) restrict the right of the insurer to deal with its assets and take on new commitments;
2) detect all insurers the cost or part of the required prior coordination with the financial and capital market Commission.
 
60. article. (1) the reinsurance does not change the liability of the insurer to the insured and the policyholder.
(2) according to the planned insurance activities and operations, the insurer shall develop and approve the reinsurance programme and is responsible for the implementation of this programme. Developing reinsurance program, the insurer comply with the precautionary principle and must not be unduly excessive reliance on one or a group of related reinsurers reinsurers ' group. At least once a year the insurer assess the adequacy of reinsurance the reinsurance arrangement program.
(3) the insurer shall choose a reinsurer under a reinsurance program, taking account of the limits laid down in this law. The insurer is obliged before the transfer of risk reinsurance reinsurance contracts and the whole operation continuously collect and analyse information on reinsurers, its financial situation (solvency) and reputation.
(4) the insurer is entitled to transfer risks to reinsurance only: 1) in the Republic of Latvia, the Republic of Estonia, the Republic of Lithuania or registered insurer that has a valid license of insurance operations;
2 the insurer registered in a Member State), who has a valid license for the insurance operations in the country of registration;
3) reinsurers, the international rating agency rated investment grade.
(5) on the basis of the financial and capital market Commission of the insurer submitted reports, and financial and capital market Commission, the insurer's operating results in order to protect the interests of the insured, the financial and capital market Commission has the right to require the insurer to change the layout or provides reinsurance reinsurance obligations with reinsurers cash collateral placed the insurer's possession of the reinsurer's share of technical provisions. "
48. To supplement the law with article 60.1 of the following: ' article 60.1. If the risk of using reinsurance insurance broker companies (insurance broker) services, the insurer is obliged before the conclusion of the contract throughout the contract period and continuously evaluate the insurance brokerage company (insurance brokers) financial position and reputation. The insurer must have documents that reveal the layout of the reinsurance and insurance brokerage company (insurance broker) paid the amount of the provision. "
49. Article 64: make the second paragraph as follows: "(2) If there is no agreement, the co-insurance the insurer does not generate full (inclusive).";
to supplement the article with the fourth paragraph as follows: "(4) the insurer to establish technical provisions according to their own liabilities. The outstanding amount of reserve is determined by the leading insurer. "
50. Article 65: Add to the third part of the second sentence as follows: "after the transfer of the insurance contract remains in effect for all of the insurance contract, the rights and obligations of the parties.";
to supplement the article with the fourth and fifth by the following: "(4) the financial and capital market Commission permits the transfer of insurance contracts after it is agreed the national insurance supervisory bodies that are related to the insured risk of insured objects. Financial and capital market Commission shall take a decision on the transfer of the insurance contract within four months after the submission of the request to the competent insurance supervisory authority. Failure to reply in this period is considered consent to the transfer of the insurance contract.
(5) the financial and capital market Commission provides information on the transfer of contracts of insurance of another State to the competent insurance supervisory authority within three months from the receipt of the request. "
51.71 and 72 off article.
52. Express the second subparagraph of article 74 of the third sentence by the following: "year's interim review of liquidation shall be verified or certified auditor certified auditor of the company."
53. To supplement the law with article 75.1 by the following: ' article 75.1. Insured protection fund, which, on the basis of a written application to the administrator, used to cost the organization claims-related expenses are included in the insolvency administration costs. "
54. Supplement article 77 with the fourth and fifth by the following: "(4) the insurance intermediaries who are merchants, is binding in so far as this law commercial law does not provide otherwise.
(5) between the insurance brokerage company, the policyholder and the insurer does not traders. "
55. Supplement article 78 to fifth the following: "(5) the insurance agency to carry out activities of insurance intermediary only and other types of commercial activities directly associated with the operation of the insurance intermediaries."
56. Article 79 of the expression as follows: "article 79. (1) an insurance agent may be incapacitated individual who: 1) has reached 18 years of age;
2) attained at least upper secondary education;
3) is not penalized for intentional criminal offences or are rehabilitated or has been removed or deleted, or which is not a criminal called the criminally liable;
4) acquired a duty required knowledge.
(2) the insurer and insurance agency insurance agent represents. The information contained in the register (the insurance agent's name, surname, personal code and the insurer or insurance agency name, represented by agent) is freely available. If the insurer or the insurance agency has established a home page on the internet, it inserts this information.
(3) the financial and capital market Commission controls the requirements referred to in this article are met. "
57. Article 80: replace the first paragraph, the words "company, registered in the enterprise register of the Republic of Latvia" with the words "company, the commercial register";
Add to article 1.1, 1.2 and 1.3 of the part as follows: "(11) insurance brokerage company made only the insurance intermediary operations and other types of commercial activities directly associated with the operation of the insurance intermediary.
(12) the insurance brokerage firm of driving can be a person: 1) which are competent in matters of financial management;
2) which has a higher education and not less than three years of work experience in the financial and capital markets;
3) which has a flawless reputation in commercial activities;
4) which is not deprived of the right and have not been deprived of the right to carry on business;
5) which are not penalized for intentional criminal offences or are rehabilitated or has been removed or deleted, or which is not a criminal called criminally.
(13) insurance brokerage company is obliged or after the financial and capital market Commission to immediately withdraw from the post of head of the brokerage company, if it is established that he did not meet the position that his conduct was detrimental to the insurance broker or the company's financial stability led to a situation that may endanger the insurance broker company financial stability or the interests of policyholders, as well as if the Manager does not meet the requirements laid down in this Act. ";
turn off the fifth subparagraph, second sentence, the words "at the request of the parties that it intends to conclude a contract of insurance or reinsurance";
to supplement the article with the sixth part the following:

(6) insurance brokerage company at the request of the persons wishing to conclude an insurance or reinsurance contract, immediately notify the provision. "
58. To supplement the law with article 80.1 as follows: "article 80.1. (1) insurance brokerage company, providing services of insurance intermediaries are obliged to act as a good and thorough master and ensure that services are provided with due professionalism and diligence in the best interests of the client.
(2) contracts concluded with the customer for the provision of services of insurance intermediaries in the insurance brokerage firm must not include provisions that would conflict with the first part of this article or concealed manner include the effect that would have in any way against the customer. "
59. Express article 81 as follows: "article 81. The insurer is entitled to pay only for the provision of insurance brokerage company, established in accordance with the procedure laid down in the law and received the financial and capital market Commission license. This limitation does not apply to reinsurance and cases where the insurer carries insurance abroad through the brokerage firm services. "
60. Replace article 82 of the third subparagraph of paragraph 3, the word "business" with the word "business".
61. Article 85: expressing the second subparagraph by the following: "(2) insurance brokerage company provides activity of insurance intermediary funds holding separate from brokerage firms for individual funds in an account opened in the credit institution in writing telling them the credit institution that funds in the accounts of the activities of insurance intermediary for funds, as well as provide this feature in a separate balance sheet accounting by insurers and policyholders."
to supplement the article with the third and fourth subparagraph by the following: "(3) in the second part of the said account funds brokerage firm's insolvency are not included in the insurance brokerage firm in which the insolvency proceedings are covered or liquidation expenses and satisfied the claims of creditors, and they after the commencement of the insolvency proceedings are immediately paid to insurers, reinsurers, and other creditors in accordance with the insurance and reinsurance contracts.
(4) in the second part of these funds may invest in certain short-term assets that can be converted to cash within 30 days, immediately including the money in that account. Permitted short term assets are deposits with credit institutions, credit institutions deposits, certificates issued by state securities and other Exchange traded securities. "
62. Article 87 off the words "the month and".
63. Article 89 of the expression as follows: "article 89. Insurance intermediaries are entitled to provide the services of insurance intermediaries insurers only. This limitation does not apply to reinsurance and cases where the insured risk is situated abroad, and the policyholder is not resident. "
64. To supplement the law with 89.1 article as follows: "article 89.1. (1) an insurance intermediary shall conclude insurance contracts on the basis of a mandate.
(2) If an insurance intermediary shall conclude an insurance contract without authorization or exceeding authority, he shall be responsible for all losses and expenses incurred because of such conduct.
(3) the powers of the employer may at any time, without regard to the applicable dealer contract set out in the notice period, to withdraw the authorisation of the insurance intermediary to conclude the insurance contract.
(4) the insurer shall pay the insurance agency or agent for the provision to the extent and within the time limits by which the insurer and insurance intermediary have agreed in the contract, and only for the insurance contracts concluded between the duration of the contract, and the insurance contract is concluded the insurance intermediary activities and the preparation of the insurance contract or the conclusion is for the mutual agreement.
(5) the insurance agency or agent may require the insurer to pay the alignment only if provided for in the contract of insurance intermediaries.
(6) an insurance agency or agent has no right to withhold his insurer placed at the disposal of the documents after termination of the insurer.
(7) insurance agency or agent may require with your operational expenses only if provided for by the contract concluded with insurers. "
65. To make 90. the second subparagraph by the following: "(2) the first paragraph of this article persons shall not be considered as insurance intermediaries and services provided should not be considered as insurance mediation services."
66. Article 93: make the introductory paragraph as follows: "the insured protection fund used for payment Manager (if in accordance with the second paragraph of this article, the insured Defense Fund management passed to the other Manager) claims incurred for the organisation of the related expenses, as well as the cost of claims, if the policy holder is a natural person, the following amount:";
to supplement the article with the second, third, fourth, fifth and sixth the following: "(2) in accordance with the financial and capital market Commission Council decision insured Defense Fund management, through the agreement, can put the other Manager.
(3) income (fruit), obtained by managing the insured Defense Fund, credited to this Fund.
(4) the insured protection fund use not provided for in this Act. Other financial and capital market Commission, which is not insured protection fund, prohibits the use of claims costs.
(5) the deposit protection fund of the insured and the cost of this Fund are made only in local currency.
(6) the costs of the insured Defense Fund in foreign currency are calculated in dollars by the Bank of Latvia the relevant foreign exchange rate on the day when the law in a decision on the commencement of bankruptcy proceedings. ';
believe the current text of the first part of the article.
67. the express article 95 the following: ' article 95. (1) the insured Defense Fund consists of members of the Fund deductions in the amount of one percent of their gross total insurance premiums received from natural persons of this law article 12 1, 2, 3, 8, 9, 10, 13, 18 and 19 referred to in classes.
(2) the first subparagraph of this article, the rules are binding on the insurer subsidiaries abroad, where the national legislation does not provide for the mandatory participation of branches of insurers in the national system of protection of the insured.
(3) the first subparagraph of this article, the rules are binding on the insurer as if the foreign branches of this national law provides for the mandatory participation of branches of insurers in the national system of protection for the insured and guaranteed costs as claims in the country concerned and in the Republic of Latvia the applicable guarantee claims about the difference.
(4) the provisions of the first paragraph are not binding on foreign insurer subsidiaries, where the national legislation provides for the protection of the insured branches abroad (Republic of Latvia) and covers all the cases provided for in this Act, in addition, the guaranteed claims of not less than specified in this law.
(5) payments to the insured Defense Fund includes expenditure of members of the Fund, and it is performed on a quarterly basis to the next quarter's first month on the 30th date, financial and capital market Commission of Latvia's Bank account. A member of the Fund up to the first month of each quarter on the 30th date submitted by the financial and capital market Commission for the previous quarter of natural persons received gross insurance premiums and payments of insured protection fund. Review the sample form is determined by the financial and capital market Commission.
(6) the members of the Fund payment of insured protection fund should not be considered as financial and capital market Commission's commitments to the Fund participant and not refundable if a member of the Fund is terminated. "
68. Article 97 of the expression as follows: "article 97. (1) a member of the Fund is obliged to calculate and pay interest on charges that are not paid within the time limit set for the insured protection fund. This fine payable to the Bank account.
(2) on payment of the fine, which is not paid within the time limit set for the insured Defense Fund, is 0.05 percent from within the outstanding amount for each delayed day. Interest calculated on the time for which the Fund has made a calculated payment each quarter.
(3) If a member of the Fund for more than two months is not voluntarily and in full made payments to the insured Defense Fund, financial and capital market Commission warns that the members of the Fund operating licence may be cancelled.

(4) If a member of the Fund in the month after the Financial and capital market Commission expressed alarm that the operating licence may be revoked, not voluntarily and in full made payments to the insured Defense Fund, financial and capital market Commission revoke the licence issued to the members of the Fund. "
69. Article 99: Add to the article with the second, third and fourth subparagraph by the following: "(2) the financial and capital market Commission monitor the Member States create the insurance company affiliates, as well as the insurance company of the insurance services they provide in the Member States, subject to the principle of freedom to provide services. Monitoring financial and capital market Commission shall cooperate and consult with the insurance supervisory authorities of the Member States.
(3) the financial and capital market Commission is entitled to request information from the Member State of the branch of the insurer, as well as the request, to prevent non-compliance with its regulations operational requirements. Decisions on financial and capital market Commission shall notify the Member State and the home of the insurer (registration) the national insurance supervisory authority. Financial and capital market Commission shall cooperate and consult with the insurance supervisory authorities of the Member States to ensure that the Member States ' monitoring of the activities of the insurer in the Republic of Latvia.
(4) the financial and capital market Commission is entitled to request information from the Member State in which the insurer, pursuant to the principle of freedom to provide services, to provide insurance services in the Republic of Latvia, and to seek to prevent the non-compliance with regulatory requirements. Decisions on financial and capital market Commission shall notify the Member State and the home of the insurer (registration) the national insurance supervisory authority. Financial and capital market Commission shall cooperate and consult with the insurance supervisory authorities of the Member States to ensure that the Member States ' monitoring of the activities of the insurer in the Republic of Latvia. "
believe the current text of the first part of the article.
70. Add to article 104 of the third and fourth subparagraph by the following: "(3) the insurer is obliged to make public the quarterly reports to inform the public about the insurer's operations and financial performance. In public statements, the minimum amount of information to be included in the financial and capital market Commission.
(4) the insurer shall ensure that the public review would be freely available space in which the insurer, and in all branches of the insurance undertaking free of charge or for a fee that does not exceed the reasonable costs of reproduction, and the public must also review the insurer's website. The public review must be freely available not later than two months after the corresponding end of the reference period. "
71. To supplement the law with article 104.1 as follows: "article 104.1. Financial and capital market Commission has the right to not allow the insurer to establish close relationships with third parties or require the insurer terminates close relations with third parties, or prohibit transactions with them, if such relationships may endanger or threaten the financial stability of the insurer, the insured interest or interfere with the financial and capital market Commission in supervisory functions. "
72. To supplement the law with article 107.1 as follows: 107.1 "article. (1) the financial and capital market Commission, within their respective spheres of competence, cooperate with foreign financial and capital market supervisory authorities, law enforcement authorities and foreign authorities responsible for financial institutions, bankruptcy and liquidation audit, and shall exchange the information necessary for the monitoring and implementation of these institutions function. This information is considered confidential.
(2) if the financial and capital market Commission has received information from the first paragraph of this article, the financial and capital market Commission may be disclosed only with the express permission of that institution and, in the cases stipulated by law.
(3) the information acquired by the financial and capital market Commission is entitled to use the only statutory functions. "
73. Article 108 of the expression as follows: "article 108. Financial and capital market Commission is not less frequently than every three years, to check the activities of the insurer. Financial and capital market Commission is entitled to authorise the pursuit of this task to the certified auditor or other person. "
74. Make 109. the first paragraph by the following: "(1) If the conditions of this law, 7, 24, 41, 41.1, 42, 42.1, 43, 46, 47, 48, 49, 50, 56, 57, 63, 77, 80, article 104 and rule" on laundering ' requirements, financial and capital market Commission is entitled to impose on the insurer or insurance broker company to fines of up to 10 000 lats. "
75. To supplement the law with article 110.1 of the following: ' article 110.1. Financial and capital market Commission fines imposed on a person pay not later than one month from the date of entry into force of the financial and capital market Commission decision on the imposition of a penalty. "
76. To supplement the transitional provisions with 16, 17, 18, 19 and 20 the following: "4. The law of article 7 2 of the first subparagraph of paragraph 11, third paragraph 11.2, 11.3, 11.4, and 11.5 article and article 99 of the second, third and fourth subparagraphs shall lay down the procedure for the entry into force of the special law. To this special Act date of entry into force of the legal relationship with the Member State, be governed by the laws of the rules which apply to the Member insurer.
17. Insurance companies, which guarantee the minimum size of the Fund does not comply with this law, article 32, first paragraph, it should be increased to 1 July 2004.
18. The insurer its activities according to this law, 60, 60.1 and article translates to January 1, 2004.
19. The insurer its activities according to article 47 of this law and article 50 of the third and fourth part translates to 2004 April 1.
20. the insurance agency your actions according to article 78 of this law, the fifth part of the insurance brokerage firm and its activity in accordance with article 80 of the law, and the 1.1 1.2 1.3 the part translates to 1, 2003 November. "
 
Informative reference to European Union directives, the law includes provisions arising from Directives 73/239/EEC, 79/267/EEC, 88/357/EEC, 92/49/EEC, 92/96/EEC, 95/26/EC, 2002/12/EC and 2002/13/EC.
The Parliament adopted the law of 27 March 2003.
 
State v. President Vaira Vīķe-Freiberga in Riga 2003 April 15 Editorial Note: the law shall enter into force on 29 April 2003.