on inspection results on the pitch
compliance with insurance legislation by
Joint Stock Company "MOLDASIG"
Posted: 03/04/2016
in the Official Gazette
Nr. 49-54
Article No. 364
Under Order of the Vice National Financial Market (NCFM) No. 81 of 24.11.2015 and following the notification of the National Bank of Moldova in the field of inspection to verify the aspects of how to conclude contracts insurance regulation claim files, payment of insurance claims and compliance with prudential norms for risks underwritten within Class 16 "financial loss" by Joint Stock company "MOLDASIG" (hereinafter - "MOLDASIG" SA or insurer) as of 30.10.2015, in which they were found the following.
Respected the provisions of article 32 par. (4) and Article 31 para. (1) a) of Law No. 407-XVI from 21.12.2006 "On insurance" 1 (hereinafter - the Law .407-XVI from 21.12.2006), "MOLDASIG" SA has not informed within 5 days NCFM about pledging its assets (bank deposits) in favor of a limited liability company (a major shareholder of "MOLDASIG" SA, holder of 17 % of share capital).
1
____________________________________________ Official Gazette of the Republic of Moldova, 2007, nr.47-49, 213
However, contrary to item 2 of the NCFM Decision No.38 / 17 of 31.07.2014 "On approval of the Regulation on the Register of guarantees, commitments and other obligations of insurers (reinsurers) are not reflected in the balance sheet" 2 and section. 8 of the Regulation on the Register of guarantees, commitments and other obligations of insurers (reinsurers) are not reflected in the balance sheet, the insurer has instituted register referred without sign pledging its assets (period of 2012 (bank deposits)), which were ongoing at the time of establishing register. ___________________________________________
2 Official Gazette of the Republic, 2014 nr.333-338, art.1540
Notwithstanding the provisions of point 19, point 21 and pct.23 subpct.4) of the Rules on solvency margins and liquidity ratio of insurers (reinsurers), approved by NCFM Decision 2/1 of 21.01.20113 ( hereinafter - Regulation on solvency margins and liquidity ratio of insurers (reinsurers) "MOLDASIG" SA as of 30/09/2015, providing liquidity by including in the calculation of encumbered assets, and improperly planned and incoming cash outflows.
___________________________________________ 3 Official Gazette of the Republic of Moldova, 2011, nr.37-38, 205
the following recalculation in the inspection field liquidity coefficient the insurer as of 09/30/2015, by excluding the category "bank deposits at sight" value of a commercial bank deposits, which were pledged to ensure the credit agreement of a limited liability company, this indicator would be the value 5.74 compared with 7.15 value reported by the insurer, both of which are set at sizes above pct.25 of Regulation on solvency margins and liquidity ratio of insurers (reinsurers).
Contrary to Article 30 para. (6) b) of Law No. 407-XVI from 21.12.2006, p.11 and pct.16-18 of Regulation on solvency margins and liquidity ratio of insurers ( reinsurers), the insurer did not have sufficient eligible assets to cover, considering the dispersion limits established insurance reserves and the required solvency margin (insured fund) as of 30.09.2015 amounted to 37.3 mil. lei .
Previously, the activity "MOLDASIG" was detected a similar offense, which was issued on NCFM Decision No.27 / 12 of 05.16.2014 "On the results of thematic control on compliance by insurers legislation on formation of reserves insurance and maintaining solvency margins and liquidity ratio. "4 ____________________________________________
Official Gazette of the Republic of Moldova in April 2014, nr.134-141, art.726
Based on the above, pursuant to article 1, article 3, article 8 b) and paragraph f), article 9 para. (1) d), Article 22 para. ( 3), Article 25 para. (2) of Law No. 192-XIV of 12.11.1998 "on the National Commission of Financial Market," 5 54 para. (1) and para. (2) c) , article 55 para. (1) and para. (2) of Law No. 407-XVI from 21.12.2006, the Regulation on gradualizarea sanctions imposed on insurers (reinsurers) or insurance and / or reinsurance, approved by NCFM Decision No. .60 / 5 of 20.12.20136, _____________________________________________
5 Republished in the Official Gazette of the Republic of Moldova, 2007, BIS nr.117-126
Official Gazette of the Republic of Moldova in June 2014, nr.53-59 , 313
NATIONAL FINANCIAL MARKET COMMISSION DECIDES
:
1. Sanctioned Stock Company "MOLDASIG" with a fine of 112 500 lei, which transfers to the state budget.
2. Management repeatedly prescribing Joint Stock Company "MOLDASIG" unconditional respect for the provisions of laws and regulations and taking measures on inspection violations are reflected in the Act on the ground, including the restrictions on transactions by the insurer.
March. Prescribing leadership Joint Stock Company "MOLDASIG" taking measures on inspection violations are reflected in the Act on the ground, including:
- guaranteeing liquidity by maintaining permanent task of unencumbered assets;
- Undertaking measures regarding the removal deficit fund assets admitted to cover policyholders.
4. It notes performed and submitted recalculated liquidity ratio as of 09.30.2015 by excluding encumbered assets.
May. About the execution of this decision Stock Company "MOLDASIG" will inform the National Commission of Financial Market within one month, attaching confirming documents.
June. Control over the execution of this decision is the responsibility of the General Directorate insurance supervision.
July. This decision shall enter into force in accordance with Article 22 para. (3) of Law No. 192-XIV of 12.11.1998 "On the National Commission of Financial Market".
COMMISSION VICE NATIONAL FINANCIAL MARKET Iurie FILIP
