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) the following amendments: 1. To supplement article 3, after the word "insurance" with the words "and the Government guaranteed export credit insurance transactions".
2. Supplement article 4, first subparagraph, third sentence the following wording: "the Management Board of the insurer develop and approve procedures for signing the insured risk and the determination of premiums and are responsible for compliance with this policy."
3. Supplement article 7, first paragraph, point 3, after the word "the" with the word "directly".
4. Add to article 12, the second paragraph after the word "alone" with the words "subject to the provisions of article 12.1 of the Act".
5. To supplement the law with article 12.1, as follows: "article 12.1. (1) an insurer who is licensed to potential loss risk insurance in one of this law, article 12 referred to in the first paragraph of the kinds of insurance can insure the risks relating to other types of insurance (any) if the insured risk meets all the conditions mentioned in this paragraph: 1) is directly related to the possible loss of the risk insurance in the manner for which the license has been received;
2) refer to the same object of insurance, which insured in the form of insurance, in respect of which the licence;
3) are insured with the same insurance contract.
(2) the first part of this article shall not apply to credit and surety insurance.
(3) legal expenses without separate licence can insure only with the help of insurance and shipping insurance, if you run the first part of this article. "
6. Article 13: make the first part of paragraph 9 "g" section as follows: "(g)) the profit and loss statement and balance sheet projects";
turn off the first part of paragraph 9 of the "h" point;
to make the second part of paragraph 3 as follows: "3) action plan one year in respect of their insurance, which is required, indicating the license of the first subparagraph of paragraph 9," a "-" f "referred to information as well as the financing plan of the project and the planned amount of the technical reserves."
to supplement the article with the third part as follows: "(3) the insurer who wishes to be licensed insurance help insurance supervisory inspection of submitted information on its existing funds and of contracts that ensure the provision of assistance to the insured pursuant to the commitment given in the form of insurance."
7. in article 24, paragraph 2: turn off the words "and members or affiliate manager";
3. turn off the point.
8. Express article 33 the following: ' article 33. The insurer's own funds calculation: 1) the sum of: (a) insurance corporations) paid-in capital, b) mutual insurance societies paid cooperative shares, c) half of the insurance company of the subscribed but not paid-in share capital, if paid at least 25 percent of an insurance company's share capital subscribed, d) half of the mutual insurance cooperative society members without the modifications made additional contributions to cover losses if provided for in the statutes of the society if the society does not have a license and life insurance for but not more than 50 per cent of the calculated solvency margin, e) funds, f) and the earlier years of the period retained earnings, g) subordinated capital but not more than 25 percent from this point "a", "b", "e" and "f" referred to the total of the funds;
2) subtracting from the sum obtained: a) the previous year and accounting period losses, undistributed b) insurer owned the nominal value of the shares, c) insurer participation in companies that have the financial and credit companies, d) intangible investment. "
9. Supplement article 34 after the word "inspection" by the words "the improvement of the financial situation".
10. Article 35 be expressed as follows: "article 35. If the insurer's own funds amount to less than the guarantee fund, the insurer shall provide coordination of insurance supervision inspection of the financial situation of the improvement plan for the same amount of funds for immediate restoration to warranty Fund. "
11. Article 39: Add to the second part of the text by the following: "the Management Board of the insurer shall develop and approve the technical provisions of the order and is responsible for compliance with this policy. The insurer of the technical provisions of the order shall be submitted in writing to the insurance supervisory authorities within 10 days of the confirmation of these arrangements, as well as inform you about any changes. "
to supplement the article with a new third subparagraph by the following: "(3) the insurer shall calculate the technical provisions for each insurance contract or group of contracts separately.";
consider the third part of the fourth part.
12. Article 40: to supplement the first part of paragraph 7 as follows: "7) reserve unit-linked life insurance. ';
to turn off the second paragraph, the words "if it is provided for in the statutes of the public".
13. Add to article 41 in the second sentence by the following: "the Management Board of the insurer the insurer shall develop and approve procedures and creating the investment conditions and is responsible for compliance with this policy and the terms."
14. To supplement the law with article 41.1 the following: ' article 41.1. (1) the insurer investment of technical provisions in such currency that is undertaken.
(2) insurance supervisory Inspectorate determines the allowable deviation insurance and investment harmonization of obligations on the currency. "
15. Article 42: (1) be expressed as follows: "1) securities which are released or guaranteed in Latvia or other Government or local authority;"
make paragraph 6 by the following: "6) mortgage-backed loans — no more than 20 percent;"
to supplement the article with the new point 7 by the following: ' 7) issued in the Latvian banking mortgage in mortgage bonds; "
consider the current point 7 of paragraph 8.
16. To supplement the law with article 42.1 of the following:

"42.1 article. Unit-linked life insurance technical reserves only invest investment company investment certificates. These investments are not subject to this law, 42, 43 and 44. Article requirements. "
17. Add to article 44 of the second sentence as follows: "Cabinet of Ministers determine the countries in which may make these investments."
18. To supplement the law with article 44.1 the following: ' article 44.1. Own funds of the insurer's investments in countries that are not part of the Cabinet of Ministers within the national group, may not exceed 20 per cent, but in one country — 10 percent. "
19. the express article 45 the first sentence as follows: "to ensure the financial stability of the insurer, the insurance supervisory authorities have the right to provide that the insurer and 25 percent own resources deployed in high liquidity investments."
20. Supplement article 49 the third paragraph after the word "report" with the words "in accordance with the provisions of the Cabinet of Ministers".
21. Supplement article 50 with the third subparagraph by the following: "(3) the Management Board of the insurer the insurer shall develop and approve the structure, determines the rights and obligations of employees and are responsible for compliance with this requirement."
22. Article 54: make the first part of the third sentence by the following: "a copy of the opinion added to the annual report, which the insurer shall provide the insurance supervisory authorities in accordance with article 56 of this law.";
supplement with a new article to the third and fourth subparagraph by the following: "(2) a sworn auditor or other person who checks the annual report of a company, prepare a report for the management of the insurer. The report shall state the specific deficiencies, as well as address the specific insurance-related issues, which require insurance supervision inspection. A copy of the message sent to the insurance supervisory authorities.
(3) a sworn auditor or other person who examine the annual report immediately in writing to the insurance supervisory inspection for the insurer's annual report revealed during an inspection of the facts or decisions that have licensing or insurer the regulatory law violation or threatened the insurer's future activities, or who are the reason for the sworn auditor or other person shall examine the annual report, the refusal to issue an opinion.
(4) in the third subparagraph of that provision of information should not be considered any of the laws, regulations, guidelines or laws, and it does not result in a sworn auditor or other person shall examine the annual report, the additional responsibility. ";
consider the second part of the fifth.
23. off 55. the second paragraph of article.
24. Article 56: Add to the first and second subparagraph following the words "annual report" with the words "together with the sworn auditor or other annual report verifying the opinion of the person";
Add to the first part of the second sentence as follows: "the annual report together with the sworn auditor or other annual report verifying the personal opinion of the insurance supervisory authorities shall be submitted at least 15 days before the approval of the general meeting of shareholders (the general meeting of members)."
25. Article 60: to supplement the first sentence with the following: "the Management Board of the insurer develop and approve the reinsurance programme and is responsible for compliance with this program."
to supplement the article with a new second subparagraph by the following: "(2) the insurer shall freely choose a reinsurer and insurer's duty is to collect and analyze information about the reinsurer's ability to meet its obligations."
consider the second part of the third part and the third part of the fifth;
to supplement the article with the fourth paragraph as follows: "(4) the reinsurance premiums reinsurers, which do not fall within the Cabinet of Ministers within the national group, must not exceed 20 percent of the total volume of insurance premiums subscribed."
26. To complement the article 63 of the first part of the sentence the following wording: "groups of individuals in insurance contracts, the condition applies to one insured person."
27. Supplement article 82 in the third paragraph as follows: "(3) the insurance supervisory Inspectorate is entitled to revoke the license issued to an insurance brokerage firm in cases where the insurance brokerage company: 1) an insurance intermediary services have not begun to provide, within one year from the date of receipt of the licence;
2) an insurance intermediary services suspended to provide time for more than one year;
3) violates this law, in accordance with the Cabinet of Ministers issued regulations and other laws and regulations governing business.
If the insurance brokerage company surrenders the licence, the licence shall be cancelled. "
28. Article 91 of the Present second and third subparagraph by the following: "(2) the financial and capital market Commission provides insured protection fund accumulation, management and cost of claims, as well as perform the following functions: 1) organised by the insurer for the payment of insured deposit protection fund;
2) calculation time and recover outstanding amounts and penalties;
3) organizes the cost of claims;
4) distributes the creditor claims against the insurer paid out in claims.
(3) supervision over Fund insured protection and accumulation of costs carried out financial and capital market Commission in financial Advisory and capital markets. "
29. Replace article 92, the words "the insured Defense Fund management regulations" with the words "financial and capital market Commission".
30. Replace article 93, paragraph 2, the word "sum" by the word "claims".
31. Replace article 95 in the first paragraph, the word "insurer" with the words "Insurance Corporation".
32. Article 97 of the expression as follows: "article 97.   Insured protection fund to be kept in the Bank of Latvia the open account, and these funds can be invested only in securities of Latvia. "
33. the express article 98, the first paragraph by the following: "(1) claims may be paid from the funds of insured protection only when the person's application for the receipt of the claims administrator to submit, within three months after the insurer declared insolvent."
34. To make the title of chapter XII, the following: "chapter XII insurance supervision".
35. Article 99 of the expression as follows:

' article 99. Insurance activities public supervision over financial and capital market Commission. "
36. Express article 107 of the first, second and third subparagraph by the following: "(1) the insurance supervisory office and the Latvian financial supervisory authorities within their competence, in accordance with the mutual agreement shall exchange the information required to carry out supervision.
(2) in matters within their competence, the insurance supervisory Inspectorate cooperates with foreign financial supervisory authorities, law enforcement authorities and foreign authorities responsible for financial institutions, bankruptcy and liquidation audit, and shall exchange the information required to carry out supervision and institutions for the implementation of this function.
(3) the information referred to in this article shall be considered as a further undisclosed. If the insurance supervisory Inspectorate has received information from other financial institutions supervisory institutions, this information insurance supervision inspection may be made only with the permission of the authorities and in the cases specified by law. "
37. Add to article 109, the first paragraph after the number "28" with the number "49".
38. Add to article 111 of the third part as follows: "(3) any person who has a contractual relationship with the insurance supervisory inspection of this relationship, as well as after it expired and are bound not to disclose information which has become available, from contractual terms with the insurance supervisory inspection. This limitation does not apply to statutory exceptions. "
39. Turn 100, 101, 102., 102.1, 107, 110, 111 and 112.. article.
40. Replace the words "the whole law of insurance supervision inspection" (fold) with the words "financial and capital market Commission" (fold).
41. To replace the law 44, 44.1, 48, 60, 79, 82, 84, 85 and article 95, the words "Cabinet" (fold) with the words "financial and capital market Commission" (fold).
42. The transitional provisions: to make paragraph 3 by the following: "3. The insured protection fund until July 1, 2001, to keep the insurance supervisory inspection of the special account. This feature determines the storage order of the Cabinet of Ministers. ";
Replace in paragraph 4, the word "January" with the word "July";
make paragraph 5 by the following: "5. the insured Defense Fund paid claims in accordance with the requirements of this Act, only if, after July 1, 2001, the insurer is void of all licenses and the Court recognized it as insolvent.";
transitional provisions be supplemented with 9, 10, 11, 12, 13 and 14 by the following: "9. the amendment to article 44 of the law (for the country where investment may be made of the technical provisions), article 60 (on the reinsurance programme development and approval) and article 44.1 of the law shall enter into force on 1 October 2000.
10. Amendment of the law in the name of chapter XII and article 99 as well as the amendment concerning the word "insurance supervision inspection" (fold), throughout the Act to replace the words "financial and capital market Commission" (fold) shall enter into force on 1 July 2001.
11. Law 100., 101, 102., 102.1, 107, 110, 111 and 112.. the article is in force until 30 June 2001.
12. Amendment of article 54 of the law the second part (on the report preparation and dispatch of duplicate insurance supervisory office), article 54 in the third and fourth, as well as the amendment to article 55 (about part two shutdown) enter into force simultaneously with the relevant provisions in the law governing the certified auditor.
13. the amended Act 44, 44.1, 48, 60, 79, 82, 84, 85 and 95 in the article in relation to the word "Cabinet" (fold) the substitution of the words "financial and capital market Commission" (fold) shall enter into force on 1 July 2001.
14. Amendment 91 and 97 of the Act., as well as in article 92 and article for the word "the insured Defense Fund management regulations" with the words "financial and capital market Commission" shall enter into force on 1 July 2001. "
The law adopted by the Parliament in June 1, 2000.
State v. President Vaira Vīķe-Freiberga in Riga 2000 June 20.