With Regard To The Results Of The Monitoring Of Compliance With Legislation In The Complex Field Of Insurance By Insurance Company "asterra Grup" S.a. 

Original Language Title: cu privire la rezultatele controlului complex privind respectarea legislaţiei în domeniul asigurărilor de către Compania de Asigurări „ASTERRA GRUP” S.A. 

Read the untranslated law here: http://lex.justice.md/index.php?action=view&view=doc&lang=1&id=362611

    Pursuant to the Ordinance of the National Commission of Financial Market (C.N.P.F.) No. 36/2 a from 26.06.20151 and C.N.P.F. Vice-President orders No. 54 of 02.07.2015, no. 58 of 24.07.2015 and no. 60 of the 30.07.2015 has been performed regarding complex compliance control in insurance by insurance company ASTERRA GRUP "S.A. (hereinafter referred to AS" ASTERRA GROUP "or insurer) for the period from 1 January 2013 activity-30.06.2015 , in which were found the following.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 "Monitorul Oficial" of the Republic of Moldova, 2015, no. 177-184, article 1194 AS "ASTERRA GRUP" S.A. was registered with the State Chamber of registration No. 1006600032750 (certificate of registration No. 0117074 MD series from 31.05.2012) and holds licence No. 000692 NCFM series from 13.09.2011 with the right to carry on insurance business (life insurance) indefinitely.
Renting out the way of formation and maintenance of damage reported, but unresolved, as referred to in article 34, paragraph 1. (1) paragraphs 1 and 2. (2) letter b) of law No. 407-XVI dated 21.12.2006 "insurance" (hereinafter-the law No. 407-XVI dated 21.12.2006) and paragraph 24 of the regulation on insurance technical reserves, approved by Decision C.N.P.F. nr. 1/5 of the 11.01.20113 (hereinafter-the regulation on insurance technical reserves), the insurer has admitted its diminished size determination at quarterly and annual statements inside the control period including 31.12.2013-323.8 lei at 31.03.2014-458.0 thousand lei, at 475.3-with 30.06.2014 thousand lei, 30.09.2014 thou lei-479.0, at-535.9 31.12.2014 MDL and from 31.03.2015-629.0 thou lei.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 2 Official Gazette of the Republic of Moldova, 2007, no. 47-49, article 213 3 Monitorul Oficial al Republicii Moldova, 2011, no. 37-38, article 205 result of incorrect determination of insurance reserves and obligations other than contractual ones (taxes, duties and other contributions), the reporting statements from 31.12.2013, 31.03.2014, 30.09.2014, 30.06.2014 31.12.2014, and 31.03.2015, AS "ASTERRA GRUP" S.A. has indicated in the report on the solvency margins and liquidity coefficient of insurers (reinsurers) , presented in the form approved by Decision No. C.N.P.F. of 26 07.07.2011 "approving the form and content of reports of insurers (reinsurers) ' 4 (hereinafter Decision No. 26/C.N.P.F. 15 07.07.2011), reduced values of the contractual obligations, respectively, with 457.9 lei 323.8 thousand lei, 475.3 thou lei, 489.0 thou lei, 536.0 thou lei and 628.9 thou lei, as well as of obligations other than the contractual situation in 263.9 thousand lei with 31.03.2015, thus ensured compliance with just the point 7 of regulation on solvency margins and liquidity coefficient of insurers (reinsurers), approved by Decision No. 2/C.N.P.F. 1 of 21.01.20115 (hereinafter-the regulation on solvency margins and liquidity coefficient of insurers (reinsurers)).
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 4 Monitorul Oficial al Republicii Moldova, 2011, no. 135-138, article 1147 5 Monitorul Oficial al Republicii Moldova, 2011, no. 37-38, article 205 With deviation from the provisions of article 34, paragraph 1. (11) of Act No. 407-XVI dated 21.12.2006, (4) subpct. 4), paragraph 16) and subpct point 171 of regulation on solvency margins and liquidity coefficient of insurers (reinsurers), between 01.01.2014-31.03.2015, the insurer has admitted to covering insurance technical reserves and solvency margin with minimum assets which have been applied, shall be issued in the amount of MDL 310.0, and, during the period 01.10.2013-30.06.2015 , in the calculation of the solvency margin available, admitted assets, solvency purposes, are recognised at the value zero, in sizes ranging from 31.1 thousand lei and 617.9 thou lei.
Contrary to the provisions of the International Accounting Standard 37 "provisions, contingent liabilities and contingent assets", in trim. (IV) 2013 and trim. (I) 2014, AS "ASTERRA GRUP" S.A. has not created the related provisions and expenses preliminary payments.
During the period 01.10.2013-31.03.2015, the insurer calculated deviations with the available solvency margin and the required solvency rate by default. Thus, as a result of recalculation of the rate of solvency, it was found that AS "ASTERRA GRUP" S.A. has reduced this ratio versus the size reported from 31.12.2013, with 3.6 per cent, at 31.03.2014-3.8 percent, at 30.06.2014-4.7 per cent, at 30.09.2014, with 7.4 percent, at 31.12.2014-7.4 percent, at 31.03.2015, with 6.4 percent being infringed the provisions of article 30, paragraph 1. (3) article 31 para. (3) the letter a), d) and subparagraph (c)), article 39 paragraph 2. (3) of law No. 407-XVI dated 21.12.2006 and provisions the regulation on solvency margins and liquidity coefficient of insurers (reinsurers). At the same time, the solvency rate during control was established over the size of point 12 of the regulation on solvency margins and liquidity coefficient of insurers (reinsurers) and thus ensured the solvency and financial stability of the insurer throughout certain obligations assumed under insurance contracts and obligations.
In contradiction with article 30 paragraph 2. (6) letter b) of law No. 407-XVI dated 21.12.2006 and point 2, point 11, point 16-18 of the regulation on solvency margins and liquidity coefficient of insurers (reinsurers), the insurer did not maintain sufficient eligible assets to cover, taking into account the limits of established reserves of dispersion insurance and minimum solvency margin Fund (insured) to the situation from 31.12.2013 worth 3094.4 lei at 31.03.2014-5877.1 thousand lei, 5243.2 thou lei 30.06.2014-at 30.09.2014-2465.8 thou lei and 554.9 in MDL-31.12.2014.
At the same time, in the period 01.10.2013-31.03.2015, contrary to the provisions of section 2, point 19, point 23 of the regulation on solvency margins and liquidity coefficient of insurers (reinsurers), the insurer did not correct the flow of inputs and outputs of liquidity, which has led to the erroneous calculation of coefficient of liquidity during the period subject to verification, but level was established at sizes over point 25 of regulation on solvency margins and liquidity coefficient of insurers (reinsurers).
Renting out article 32 para. (4) of law No. 407-XVI dated 21.12.2006, AS "ASTERRA GRUP" S.A. has not advised within 5 days C.N.P.F. about granting of guarantees in 2014-9.8 thousand lei, 2015-10.0 thousand lei.
Furthermore, contrary to the provisions of point 2 of Decision C.N.P.F. No. 38/17 of 31.07.2014, "approving the regulation on register of guarantees, commitments and other obligations of the insurer (reinsurer) nereflectate in the balance sheet" 6, insurer has established the register of guarantees, commitments and other obligations of the insurer (reinsurer) nereflectate in the balance sheet, and, as a result, did not register in the register giving guarantees in the period 2014-2015 in accordance with section 8 of the said regulation.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 6 Monitorul Oficial al Republicii Moldova, 2014, no. 333-338, 1540 AS "ASTERRA GRUP" S.A. for the period 1 January 2013-C.N.P.F. 30.06.2015, presented reports on the core business of the insurer (reinsurer) in a form approved under Resolution C.N.P.F. No. 26/15 of 07.07.2011, in which were included erroneous data. Thus, in the year 2013, AS "ASTERRA GRUP" S.A. has completed incorrectly Report, indicating the first insurance contracts taken out professional indemnity in amount of 228.3 lei for legal protection insurance, and for the period from 1 January 2013-30.06.2015 did not include insured amount to the type of health insurance valid outside the Republic of Moldova, thus respected the way of filling them with the provisions of article 31 paragraph 1. (1) (a)), para. (3) letter a) and subparagraph (c)) of the law No. 407-XVI dated 21.12.2006 and C.N.P.F. of Decision No. 26/15 from 07.07.2011.
AS "ASTERRA GRUP" S.A. has completed 45 voluntary insurance contracts exceeding the maximum limit of liability of the insurer for the insured risk constituting 25% of its own funds and technical reserves, without being transmitted in reinsurance business, being violated the provisions of article 31 paragraph 1. (4) of law No. 407-XVI dated 21.12.2006.
During the period of supervision, a result of selective verification, the insurer for the 5 papers of the damage exceeded the time limit for the payment of compensation and settlement of insurance no later than three months from the date of informing about the insured, from 13 days up to 163 days, contrary to the provisions of article 43, paragraphs 2 and 3. (1) (a)) of the law No. 407-XVI dated 21.12.2006, article 19 para. (1) (a). f) and paragraph 3. (2) of law No. 414-XVI from 22.12.2006 "on compulsory insurance against civil liability in respect of motor vehicles ' (hereinafter referred to as law no 414-XVI from 22.12.2006).
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 7 Official Gazette of the Republic of Moldova, 2007, no. 32-34, 112


AS "ASTERRA GROUP" s.a order 2 cases of civil liability damage has not complied with the time limit for payment of the insurance indemnity within 10 days from the date thereof, exceeding the time limit set at 8 days up to 36 days and not complied with the provisions of article 28, paragraph 1. (1) of law No. 414-XVI from 22.12.2006.
Contrary to the provisions of article 21. (4) of law No. 414-XVI from 22.12.2006, in 18 minutes of damage that ends by the insurer, with the participation of the insured and of the person injured or his representative, on the basis of power of Attorney, were not signed by the insured and in one case-the person injured.
During the period of supervision, AS "ASTERRA GRUP" S.A., systematically, has not complied with the provisions of article 33 para. (2) of law No. 414-XVI from 22.12.2006, item 4 and item 5 of the Regulation with regard to the protection of victims of street C.N.P.F., approved by Decision No. 19/11 of 09.04.20098, regarding payment of contributions to the Fund for the protection of victims of street, formîndu the situation in 30.06.2015 debt in the amount of 225.6 thou lei.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8 Monitorul Oficial of the Republic of Moldova, 2009, no. 95, art. 393 In contradiction with section 6 of the regulation on disclosure by the professional participants of the non-banking financial market information services, approved by Decision C.N.P.F. nr. 8/6 of 26.02.20109, the insurer was unable to update the information displayed on the Panel include the licence of a new business address.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9 Monitorul Oficial al Republicii Moldova, 2010 No. 81-82, art. 310 contrary to its own tariff structure insurance presented at licensing for compulsory insurance against civil liability in accordance with article 24 para. (3) d) of law No. 407-XVI dated 21.12.2006, AS "ASTERRA GRUP" S.A. has granted the Commission the insurance intermediaries with sizes over the limit for expenditure of the insurer in the insurance tariff structure, which violates regulations governing acquisition costs referred to in article 31 para. (3) of the Act). Thus, during the period 1 January 2013-30.06.2015 as "ASTERRA GRUP" S.A. has been calculated and paid commissions in size from 35% to 37.9% of the volume of insurance premiums calculated at conclusion of contracts for compulsory insurance against civil liability in domestic insurance intermediaries 3 totalling 2 63.2 thousand lei, exceeding such limit insurer expenses provided for in the insurance premium as set out in licensing (25%) of 10% to 12.9% or with 515.1 thousand lei.
The situation in 30.06.2015, according to the accounting AS "ASTERRA GRUP" S.A., 2 insurance intermediaries have accumulated debt in relation to the insurer in the amount of 466.7 thou lei, as a result of netransferării within the period indicated in the contract of insurance premiums, the insurer and the intermediate undertook measures provided for in article 47, paragraph 1. (33) in accordance with law No. 407-XVI dated 21.12.2006.
Contrary to the provisions of article 31 paragraph 1. (1) (a)), para. (3) the letter a), c) and subparagraph (c)), article 39 paragraph 2. (5) of law No. 407-XVI dated 21.12.2006, paragraph 4 of Resolution C.N.P.F. No. 26/15 of 07.07.2011 as "ASTERRA GRUP" S.A. for the period 2013-2015 has not complied with the deadlines for the submission of the reports of the supervisory authority, which prevents the prudential supervision of the business of the insurer. Thus, during the period 1 January 2013-30.06.2015, some financial and specialized reports have been submitted with delays ranging from 15 days up to 43 days.
The insurer has failed to fulfil an obligation to teach financial institutions what they serve all cash surpluses in excess of the minimum requirements for making disbursements from the beginning of the day following for enrollment in their current accounts, and thus violated article 7 of law No. 845-XII of 03.01.1992 "about entrepreneur activity and enterprises" 10 and point 7 of the rules for conducting operations in national economy of Republic of Moldova , approved by Government decision No. 764 from 25.11.199211.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 10 official Gazette of the Republic of Moldova, 1994, no. 2, article 33 11 Monitorul Oficial al Republicii Moldova, 1992, nr. 11, Article 351, item renting out 25 provisions of regulation on how collecting fees and payments by the National Commission for financial market, approved by Resolution No. 45/C.N.P.F. 8 of 06.09.200712 as "ASTERRA GRUP" S.A. has not transferred in full volume and within regulatory payments that have been calculated by reference to the situation in 30.06.2015 , having been recorded the ending balance negative in the amount of MDL 32.6.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 12 Monitorul Oficial of the Republic of Moldova, 2007, no. 165-167, 616 Insurer, admitted breaking the rules of caution, according to specific practices in insurance, so as to organize and carry out the work with caution and professionalism consistent with the specificity and scope and has not organized internal control procedures so as to comply with the legal provisions, being infringed Article 31 para. (1) (a)), para. (3) (a). c) and art. 39 para. (2) of law No. 407-XVI dated 21.12.2006.
Previously, the task as "ASTERRA GRUP" S.A., similar deviations have been found in the handling of dossiers of the damage and the protection of consumers, the payment of contributions to the Fund for the protection of victims of street, insurance reserves, inadequacy of assets eligible for cover, taking into account the limits of established reserves of dispersion insurance and minimum solvency margin, compliance with the maximum limit of liability for the insured risk , allowing for non-compliance with requirements issued by C.N.P.F. decisions No. 31/10 from 28.07.2011 "With regard to the results of the monitoring of compliance with legislation concerning thematic consumer protection investigation records from damage by insurance company ASTERRA GRUP" S.A. " 13, no. 48/1 of 23.11.2012 "on the results of its analysis concerning compliance by some insurance companies insurance legislation with respect to the payment of contributions to the Fund for the protection of the victims of the street ' 14, nr. 8/1 of 01.03.2013" on the results of complex control regarding compliance with legislation in the insurance field by insurance company ASTERRA GRUP "S.A." 15 and no. 27/12 of 16.05.2014 "on the results of the thematic control regarding compliance with legislation by the insurers in the formation of insurance reserves and maintaining the level of solvency margins and liquidity coefficient" 16.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 13 Monitorul Oficial al Republicii Moldova, 2011, no. 152-155, 1279 14 Official Gazette of the Republic of Moldova, 2012, nr. 248-251, 1492 15 Official Gazette of the Republic of Moldova No.,2013, 60-63, art. 336 16 Official Gazette of the Republic of Moldova No.,2014, 134-141, article 726 at the same time, during the period of supervision, for failure to comply with time-limits for the submission of reports, were prepared 4 reports concerning administrative offence people with reference to the liability of AS "ASTERRA GRUP" S.A. , and issued Decision No. 17/1 of 06.04.2015 "with respect to prescription insurance company ASTERRA GRUP" S.A. to present specialized reports "17.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 17 Official Gazette of the Republic of Moldova, 2015, no. 89-92, art. 645 on the basis of the findings, pursuant to the provisions of article 1, article 3, article 8 b) and paragraph 2 of point f), art. 9 para. (1) (a)), article 22 para. (3), para. (2) of law No. 192-XIV of 12.11.1998 "Concerning the National Commission for financial market" (Law No. 192-XIV of 12.11.1998), art. 54 para. (1) and paragraph 1. (2) Letter c), art. 55, para. (1) and paragraph 1. (2) of law No. 407-XVI dated 21.12.2006 gradualizarea regulations and sanctions applied by the insurer (reinsurer) broker or insurance and/or reinsurance C.N.P.F., approved by Decision No. 60/5 of 20.12.201318, _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 18 official Gazette of the Republic of Moldova, 2014, nr. 53-59, art. 313 NATIONAL COMMISSION of FINANCIAL MARKET DECIDES: 1. Shall be imposed on the insurance company "ASTERRA GRUP" S.A. with fine in amount of 76.5 MDL that shall be transferred to the State budget. Lay repeatedly driving insurance company "ASTERRA GRUP" S.A. unconditioned provisions of legislative and normative acts, as well as the undertaking of measures relating to the Elimination of violations reflected in control Act, including:-respecting ways of creating and maintaining technical reserves of sufficient fulfilment of the obligations resulting from insurance and reinsurance contracts;
-compliance with the maximum limit of liability for the insured risk;
-respect for the way of calculating the margins of solvency and liquidity coefficient;
-dispute settlement obligations and payment of insurance compensation within the period provided for in article 19 para. (2) of law No. 414-XVI from 22.12.2006;
3. the Board Shall prescribe "ASTERRA GRUP" S.A. undertaking measures for elimination of violations reflected in control Act, including:

-compliance with the terms set for the submission of reports to the supervisory authority;
-establishment of a governance system to ensure sound and prudent management of its activity;
-compliance with the legal provisions concerning the acquisition costs when setting fees for intermediaries under compulsory insurance against civil liability.
-compliance with the legal provisions regarding the payment of contributions to the Fund for the protection of the victims of the street;
4. it shall initiate the procedure for bringing the contravențională to persons with reference to the liability of the insurance company "ASTERRA GRUP" S.A. in accordance with the legislation in force.
5. takes note of:-payment at the time of 28.07.2015 the debt with respect to the Fund for the protection of victims of street in total amount of 225.6 thou lei;
-adjust the size of the reserve from 30.06.2015 damage, but declared the backlog with the amount of 629.0 thou lei;
-payment at the date of 12.08.2015 of debt in the amount of MDL 32.6 concerning payments not within regulatory operation.
6. execution of the given decision About insurance company "ASTERRA GRUP" S.A. will inform the National Commission of financial market within a month.
7. The control over the execution of the given decision is put in charge of the Directorate-General for insurance supervision.
8. this decision shall enter into force in accordance with article 22, paragraph 2. (3) of law No. 192-XIV of 12.11.1998.