Under the order of the National Commission of Financial Market (NCFM) No.17 / 7-A of 06.04.20151 and orders of Vice NCFM no.35 and no.44 of 05.06.2015 04.07.2015, complex control was performed on compliance insurance legislation by the insurance company "MOLDOVA-ASTROVAZ" JSC (hereinafter - "Moldova-ASTROVAZ" SA or insurer) activity for the period 01.01.2013 - 03.31.2015, in which were found the following.

____________________________________ 1 Official Gazette of the Republic, 2015 nr.89-92, art.652

"Moldova-ASTROVAZ" was registered with the State Registration Chamber nr.100360005344 (registration certificate series nr.0117577 MD of 30.05.2012) and licensed series of 22.04.2011 NCFM nr.000696 law to carry out insurance activities on the shelf indefinitely.
In the period 01.01.2013 - 09.30.2014, contrary to art. 8 (4) and Article 24 para. (1) of Law No. 407-XVI from 21.12.2006 "On insurance" 2 (hereinafter - the Law No. 407-XVI from 21.12.2006), "Moldova ASTROVAZ" has concluded 249 contracts of insurance against fire and other natural disasters (hereinafter - insurance contracts of goods) (Class 8) and 16 contracts of general liability (class 13) and charged premiums, respectively amounting to 13 500 142 800 lei and lei, out of bounds classes of insurance which obtained a license. ____________________________________

2 Official Gazette of the Republic of Moldova, 2007, nr.47-49, 213

Violate basic principles of licensing stipulated in article 3 letter g) of Law No. 451-XV of 30.07.2001 "On regulating the licensing of entrepreneurial activity" 3 (hereinafter - the Law no.451-XV 30.07.2001) at the time of application for license updating on the inclusion of Class 8 "fire and other natural disasters" and Class 13 "general liability insurance" from 05.11.2014 supervisory authority insurer presented data inauthentic. According to information attached to the claim, the insurer weather insurance services within classes of insurance set this right only after the approval decision for license updating. Later, during the inspection in the field on how underwriting risk insured by "Moldova-ASTROVAZ" SA 20.12.2014, made when considering the application for updating the license manager by the declaration of 12/11/2014 confirmed that the concluded insurance contracts which is attributable to Class 8 "fire and other natural disasters" and Class 13 "general liability insurance" for the years 2013 and 2014. ____________________________________

3 Republished in the Official Gazette of the Republic of Moldova 2005, nr.26-28, Article 95

Also that "Moldova-ASTROVAZ" in the period between 01.01.2013 - 30.09.2014 NCFM presented reports on the core business of the insurer (reinsurer) as approved by NCFM Decision No.26 / 15 of 07.07.2011 "on approving the form and content of specialized reports of insurers (reinsurers)" 4 (hereinafter - the NCFM Decision no.26 / 15 of 07.07.2011) and statistical reports no.1-insurance "on the business of insurance ' in which it was included erroneous data (gross written premiums and the number of insurance contracts and general liability goods). Thus, the conclusion of 249 contracts of insurance against fire and other natural disasters (Class 8) and 16 contracts of general liability (class 13) and premiums collected, respectively amounting to 13 500 142 800 lei and lei were reflected in other classes practiced by "Moldova-ASTROVAZ" SA, being unobserved how to complete the reports established according to Article 31 para. (3) e) of Law No. 407-XVI of 22.12.2006 and NCFM Decision no.26 / 15 of 07.07.2011.

_____________________________________ 4 Official Gazette of the Republic of Moldova, 2011, nr.135-138, art.1147

Notwithstanding the provisions of Article 29 of Law No. 192-XIV of 12.11.1998 "On the National Commission of Financial Market" 5 (hereinafter - the Law No. 192-XIV of 12.11.1998), article 55 para. ( 3) and para. (5) of Law No. 407-XVI from 21.12.2006, the insurer presented control team Registry insurance contracts and copies of property and liability insurance contracts for goods and general liability, concluded 2013-2014 period and payment orders in number 14.
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5 Republished in the Official Gazette of the Republic of Moldova, 2007, BIS nr.117-126

As a result of the balancing information provided at the request of the NCFM by a commercial bank and the insurer of accounting data (in electronic form) on turnover of funds from the settlement account and the balancing of data on turnover of money from the cashier insurer it was established that the inspection team presented information that is not accurate. For the period 01.01.2013 - 30.09.2014 insurer incorrectly reflected in the accounts underwriting risks in other classes, but actually confirms destinations premiums collected payments on supply contracts (Class 8) and general liability (class 13 ) is permitted violation of article 31 para. (3) a) of Law No. 407-XVI from 21.12.2006.
The formation and maintenance of technical reserves, the insurer determined the size of unearned premium reserve with deviation from the Article 34 paragraph. (2) a) of Law No. 407-XVI from 21.12.2006, p.3, pct.13-16, item 17 of the Regulation on insurance technical reserves, approved by NCFM Decision No. 1/5 of 11.01.20116 (hereinafter - Regulation on insurance technical reserves) of the Rules pct.3.1-3.4 the insurance technical reserves of the "Moldova-ASTROVAZ" SA, which has conditioned its reduction as of 30.09.2014 by 6.8 thousand.

6 ______________________________________ Official Gazette of the Republic of Moldova, 2011, nr.37-38, 205

Failure to observe the formation and maintenance of the reserve claims reported, but unresolved by the insurer, as required by the provisions of article 34 para. (1) para. (2) b) of Law No. 407-XVI from 21.12.2006 and section 3, point 21, item 22 of the Regulation on insurance technical reserves, has conditioned its determination diminished in size in quarterly and annual statements within the control period including 31.12.2013 - with 1307 7 thousand at 03/31/2014 - by 3.1593 million lei, at 06/30/2014 - by 3.2279 million lei, at 09/30/2014 - by 3.2485 million lei, 31.12.2014 - by 3047.4 thousand at 31/03/2015 - by 3.0648 million lei.
Result of incorrect determination of insurance reserves and liabilities, other than those contractual (provisions for expenditure preliminary) statements reporting on the 31.12.2013, 31.03.2014, 06.30.2014, 09.30.2014, 31.12.2014 and 03/31/2015 insurer indicated in the report on solvency margins and liquidity ratio of insurers (reinsurers), approved by NCFM Decision no.26 / 15 of 07.07.2011, diminished value of contractual obligations, respectively, 1.4562 million lei , lei 3.3078 million, 3.3764 million lei 3397.0 thousand, 3.1959 million and 5.2608 million lei lei.
However, with deviation from the subpct.7 item 4) and subpct.8), section 5 of the Regulation on solvency margins and liquidity ratio of insurers (reinsurers), approved by NCFM Decision 2 / 1 of 21.01.20117 (hereinafter - Regulation on solvency margins and liquidity ratio of insurers (reinsurers)), reporting situations of 03.31.2014, 09.30.2014 and 31.12.2014 in the available solvency margin of the insurer were admitted assets amounting to 13 300 lei to 2.4368 million lei, although solvency purposes such assets are recognized to zero. Consequently, the reduction of insurance reserves and solvency purposes recognition of assets to zero influenced unjustified increase the available solvency margin and hence the solvency ratio.

____________________________________ 7 Official Gazette of the Republic of Moldova, 2011, Nr. 59-62, art. 310

In the period under review
insurer has calculated deviations solvency margin solvency and default rate. Thus, the result of recalculating the solvency ratio "Moldova-ASTROVAZ" has diminished this indicator compared to the amount reported as of 31.12.2013 16.5 percent at 03/31/2014 - by 17.8 percent to 30/06/2014 - 1.5 percent, at 09/30/2014 - by 1.7 percent, 31.12.2014 - 1.6 percent, at 31/03/2015 - by 24.6 percent, violated provisions Article 30 para. (4), Article 31 para. (3) a), article 39 par. (2) and. (3) of Law No. 407-XVI from 21.12.2006. However, the solvency ratio amounted sizes over control over the level established in Section 12 subpct.2) of the Rules on solvency margins and liquidity ratio of insurers (reinsurers), thus ensured the solvency and financial stability of the insurer throughout certain obligations assumed under insurance contracts and future liabilities.
Notwithstanding the provisions of article 30 par. (6) b) of Law No. 407-XVI from 21.12.2006 and item 2, section 11 of Regulation on solvency margins and liquidity ratio of insurers (reinsurers ), "Moldova-ASTROVAZ" SA did not have sufficient eligible assets to cover, considering the dispersion limits established insurance reserves and the required solvency margin (insured fund) as of 31.12.2013 amounted to 1698 4 thousand at 03/31/2014 - 1319.0 thousand at 30/06/2014 - 7600 lei at 30.09.2014 - 263.2 thousand lei, 31.12.2014 - 1.0162 million lei at 31/03/2015 - 1.2188 million lei.
Simultaneously, throughout the period under review, contrary to section 2, point 19 and pct.23 of Regulation on solvency margins and liquidity ratio of insurers (reinsurers), the insurer planned to incorrect flow of inputs and outputs liquidity, which resulted in erroneous reflection of the liquidity ratio in the period under examination, but was determined to pct.25 sizes above the Regulation on solvency margins and liquidity ratio of insurers (reinsurers)
the regularization of a dossier damage debit-note of 03.09.2012 amounted to 477.5 thousand lei was submitted by "Moldova-ASTROVAZ" SA the foreign insurer with 872 days before the actual date of payment of insurance compensation of the injured party, which art.5.1.1 contravenes the provisions of the General Regulation and article 5.4 of the Council of Bureaux International Assurance System "Green Card", in force from 01.07.2008 according to which will be sent upon request without delay reimbursement documents, including objective evidence of settlements. Contrary
own insurance tariff structure presented at licensing activity of compulsory motor liability in accordance with article 24 para. (3) d) of Law No. 407-XVI of 21.12.2006 "Moldova-ASTROVAZ" SA wrongly granted insurance intermediary commission sizes beyond the limit set for expenses insurer insurance tariff structure, which is against regulations acquisition costs provided for in Article 31. (3) letter j) of that law. Thus, "Moldova-ASTROVAZ" has concluded an agreement on the mandate agreement with the insurance broker that set the commission amount intermediation contracts of compulsory motor liability internal amounting to 25 percent of the first underwritten and remuneration further promoting the image intermediating those contracts - 12 percent, although the spending limit set out in the insurer's insurance premium structure shown licensing was 25 percent.
Administrator "Moldova-ASTROVAZ" SA did not provide the organization preserve the integrity of accounting documents in accordance with the legislative and normative documents destroyed without the state body for the supervision and administration of the Archive Fund of the Republic of Moldova.

Thus, the Order issued by the CA administrator "MOLDOVA-ASTROVAZ" SA No.99 / 31,122,014 of 31.12.2014, primary documents were destroyed (according to claim files, bank and house acts for the period 01.01.2007 -31.05.2013), given the state acts after the flood, checking them according to the minutes of on-site investigation of 06/25/2013, drawn up by the Centre Police Station, but the destruction of documents was ordered without authorization State Body supervision and administration Archive Fund of the Republic of Moldova, contrary to article 3, art. 18 and 27 of Law no. 880-XII of 22.01.1992 "On the Archives of the Republic of Moldova" 8 and provisions Indicator of template documents and their retention periods for public administration bodies, institutions, organizations and companies of Moldova, approved by the State Archive Service Moldovan to 12/3/1997. _____________________________________

8 Moldovan parliament Gazette 1992 No. 1, art. 20

Leader also had the obligation under Article 43 para. (1) para. (2), para. (6) of the Accounting Law No.113-XVI from 27.04.20079 (hereinafter - the Law no.113 -XVI of 27.04.2007), in case of loss, theft or destruction of accounting documents, to restore within up to 2 months from the date of the finding that fact. _____________________________________

9 Republished in the Official Gazette of the Republic, 2014 nr.27-34, 61

"Moldova-ASTROVAZ" SA in developing national program on preventing and combating money laundering and financing of terrorism, contrary to section 6, section 11 and pct.48 subpct.1) a) of the Regulation on prevention and combating money laundering and terrorist financing on the financial market, approved by NCFM Decision no.49 / 14 of 21.10.201110 (hereinafter - Regulation approved by NCFM Decision no.49 / 14 of 21.10.2011), did not take into the risks (legal risk, risk picture risk, operational risk tools) related to money laundering and terrorist financing in order to minimize them, and in 2013 the internal program on preventing and combating money laundering and terrorist financing, the insurer has not been submitted for review and approved at least once a year.
______________________________________
10 Official Gazette of the Republic of Moldova, 2011 nr.206-215 art. 1820

Notwithstanding the provisions pct.48 subpct.3) e) of Regulation approved by NCFM Decision no.49 / 14 of 21.10.2011, the person responsible of the "Moldova-ASTROVAZ" SA, empowered with responsibilities to ensure that policies and procedures of the reporting entity are in accordance with the requirements and regulations money laundering and terrorist financing for the entire period subject to inspection showed no written management body no report on program implementation to internal prevention and combating of money laundering and terrorist financing.
"Moldova-ASTROVAZ" SA, the reporting entity during the period under review did not immediately and not remitted Money Laundering Prevention and Combating Service (FIU) within 24 hours of receipt of the application data 99 transactions suspicious, including 11 record on the collection of insurance premiums from their employees, 28 transactions relating to granting advances in any form in excess of 10 thousand, 13 transactions on the request from the insured to refund the insurance premium until the maturity of the contract of insurance, and 47 transactions on the request to receive only cash compensation in the amount of more than 10 thousand, which is contrary to the provisions of art. 8 (1) of Law nr.190- XVI from 26.07.2007 "on preventing and combating money laundering and terrorist financing" 11 (hereinafter - the Law No 190-XVI from 26.07.2007), item 14 subpct.5) subpct.7) sub point. 15) and subpct.36) guide suspicious activities or transactions, approved by order of the Center for Combating Economic Crimes and Corruption No. 118 of 20.11.200712, pct.50 and pct.52 of Regulation approved by NCFM Decision No. 49/14 from 21.10.2011. _______________________________________

11 Official Gazette of the Republic of Moldova, 2007, no. 141-145, art. 597
12 Official Gazette of the Republic of Moldova, 2007, nr.203-206, art.741


Notwithstanding the provisions of art. 8 (2) and. (3) of Law No 190-XVI from 26.07.2007, "Moldova-ASTROVAZ" SA FIU has not issued within 10 working days and, ie 15 working days immediately following the reporting month, the special form on the data concerning a transaction carried out in cash in a transaction with a value of at least 100 thousand, respectively, 2 transactions made by bank transfer through a transaction a value that exceeded 500 thousand.
"Moldova-ASTROVAZ" SA, failing to respect the provisions of art. 5 (1) b) and Art. 7 (1) of Law No 190-XVI from 26.07.2007, pct.46 of point .1) -subpct.3) of Regulation, approved by NCFM Decision no.49 / 14 of 21.10.2011 has not maintained in the register of natural and legal records identified records of all transactions performed occasional active period of the business relationship and after completion of or close your bank account (with keeping the archive of accounts and primary documents, including business correspondence, for a period of at least 5 years) and not recorded in the register mentioned above performing 41 transactions occasional persons natural and legal persons of at least 50.0 thousand, regardless of whether the transaction was carried out through a single operation or in several operations.
Also contrary to Article 73 para. (8) of the Law nr.1134-XIII from 04.02.1997 "On Joint Stock Companies" 13, "Moldova-ASTROVAZ" has given as a donation in cash cash amounting to 90.0 thousand, a person holding responsible positions. _______________________________________

13 Reprinted Official Gazette of the Republic of Moldova, 2008, no.1-4, article 1

Insurer, by directing its work correctly, admitted non-compliance with specific prudential according to the practices in insurance, in order to organize and carry out work prudently and professionally in accordance with specifics and size and not organized internal control procedures so as to comply with legal requirements being violated Article 31 para. (1) a), para. (3) c) and article 39 par. (2) of Law No. 407 -XVI from 21.12.2006. Notwithstanding the provisions of Regulation
pct.25 on how charging and payments by the National Commission of Financial Market, approved by NCFM Decision No.45 / 8 06.09.200714, CA "MOLDOVA-ASTROVAZ" SA, for the period under review, has not transferred fully and within amounts. Thus, under Article 6 para. (3) of Law No. 192-XIV of 12.11.1998 was calculated fee amounting to 0200 lei. _______________________________________

14 Official Gazette of the Republic of Moldova, 2007, nr.165-167, art.616

Earlier in activity that "Moldova-ASTROVAZ" SA were found similar violations in respect of the conduct of business outside the boundaries of the classes of insurance which obtained a license, the calculation of insurance mediation activity, investigation files damage, thus making allowance deviation decisions issued by NCFM no.29 / 1 of 06.07.2012 "on the results of complex control on compliance with insurance legislation by the insurance company" MOLDOVA-ASTROVAZ "SA" 15, no. 45/2 of 11.09.2012 "on the pitch inspection results Insurance company" MOLDOVA-ASTROVAZ "SA" 16 and no.46 / 2 of 27.09.2013 "on inspection results thematic adjustment by the company insurance "MOLDOVA-ASTROVAZ" has claim files handled under international certificates of insurance "Green Card" issued by the national offices of engines from abroad "17. _______________________________________

15 Official Gazette of the Republic of Moldova, 2012 nr.160-164, art.936
16 Official Gazette of the Republic, 2012 17 Gazette nr.237-241 art.1409
Oficial, 2013 nr.228-232 art.1511

Based on the findings set out under Art. 3 Article 8 b) and paragraph f) art. 9 para. (1) d), art. 22 para. (3), Article 25 para. (2) of Law No. 192-XIV of 12.11.1998, Article 26. (11) Article 54 para. (1) para. (2) a) and c), article 55 para. (1) of Law No. 407-XVI from 21.12.2006, art. 21 (2) c), letter f) of Act No. 451 XV of 30.07.2001, Article 43 paragraph. (6) of Law no.113-XVI of 27.04.2007, Regulation on Graduate-ing sanctions imposed on insurers (reinsurers) or insurance and / or reinsurance, approved by NCFM Decision No. 60/5 of 20.12.201318,
_______________________________________

18 Official Gazette of the Republic of Moldova, 2014 nr.53-59, 313

National Securities Commission FINANCIAREHOTĂRĂŞTE
:

1. Withdraw the license Insurance Company "MOLDOVA-ASTROVAZ" CNPF nr.000696 SA series, issued on 22 April 2011 in respect of the right to operate in ensuring the Class 8 "Fire and other natural disasters" and class 13 "general liability insurance".
2. Sanctioned Insurance Company "MOLDOVA-ASTROVAZ" SA a fine of 150.0 thousand, which is transferred to the state budget.
March. Prescribing Insurance Company "MOLDOVA-ASTROVAZ" SA within 10 days of the entry into force of this decision, updating the license specified by excluding Class 8 "Fire and other natural disasters" and Class 13 'Liability Insurance general ".
4. Management repeatedly prescribing Insurance Company "MOLDOVA-ASTROVAZ" SA unconditional observance of the provisions of laws and regulations and taking measures for removing breaches reflected in the control act, including:
a) respecting the formation and maintenance of reserves sufficient technical performance of obligations resulting from contracts of insurance and reinsurance;
B) respecting the calculation of solvency margins and liquidity ratio;
C) the legal provisions on acquisition costs when setting fees for intermediaries under compulsory motor vehicle liability insurance;
D) observance of legislation on preventing and combating money laundering and terrorist financing on the financial market.
May. Prescribing leadership Insurance Company "MOLDOVA-ASTROVAZ" SA taking measures on elimination of breaches reflected in the control act, including:
a) taking measures on the removal of assets admitted to cover the deficit fund holders;
B) making the necessary measures to cancel the contract of donation funds 06/08/2014 refund behalf;
C) restoration of primary accounting documents, which were destroyed in accordance with Order No. 99 administrator / 31,122,014 of 31.12.2014.
June. It warns Insurance Company "MOLDOVA-ASTROVAZ" SA with the withdrawal of licenses issued for the right to operate in insurance, in case of failure of the present regulation.
July. It initiates the contravention of accountability for responsible persons of the Insurance Company "MOLDOVA-ASTROVAZ" SA as required by law.
August. It notes:
- accountability contravention administrator Insurance Company "MOLDOVA-ASTROVAZ" SA under the Contravention Code of the Republic of Moldova due to absence of documents requested under control;
- Submission of Money Laundering Prevention and Combating Service special forms on transactions;
- Submission of reports on program implementation to internal prevention and combating of money laundering and terrorist financing as of 31.12.2013 and 31.12.2014, by those in charge of the Insurance Company "MOLDOVA-ASTROVAZ" SA;
- Set aside additional agreement No. 1 to the contract of mandate 07.01.2013 No.10 / 13 of 10/4/2013 insurance broker intermediation commission on establishing the size of contracts of compulsory motor liability law;
- Restoration of primary accounting documents (bank documents and the house partially acts on compensation insurance Green Card) destroyed on the basis of Order No. 99 / 31.12.2014 of 31,122,014;
- Reimbursement of 90.0 thousand issued under the contract of donation of 08/06/2014 in the Order no.74 / 22,092,015 of 22.09.2015;
- Conclusion of # 316 deposit with a commercial bank to diversify liquid assets to avoid concentrating investment and remove unnecessary deficiency fund assets admitted to cover policyholders.
September. About the execution of this decision will inform the National Commission of Financial Market within one month, except p.5 c), for which a period of two months.
10. Control over the execution of this decision is the responsibility of the General Directorate insurance supervision.

11. This decision shall enter into force in accordance with art. 22 para. (3) of Law No. 192-XIV of 12.11.1998 "On the National Commission of Financial Market".