The Law On Insurance Mediation

Original Language Title: Lov om forsikringsformidling

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Read the untranslated law here: https://lovdata.no/dokument/NL/lov/2005-06-10-41

The law on insurance mediation.

Date LAW-2005-06-10-41 Ministry the Ministry of finance Recently changed law-2015-06-19-65 from 01.10.2015 Published in 2005 booklet 7 entry into force 01.01.2006 Change LAW-1956-12-07-1, LAW-1988-06-10-39 Announced 10.06.2005 short title Insurance marshaling the law Chapter overview: Chapter 1. Scope and definitions (§ § 1-1-1-2) Chapter 2. Permission to operate the insurance broking (§ § 2-1-2-2) Chapter 3. Fitness requirements for insurance brokers and the management of insurance mediation business (§ § 3-1-3-3) Chapter 4. Insurance for insurance mediation business (§ § 4-1-4-5) Chapter 5. General requirements for estate business (§ § 5-1-5-7) Chapter 6. Return the insurance broking (section 6-1) Chapter 7. Insurance agent business (§ § 7-1-7-10) Chapter 8. Branch establishment and cross-border business (§ § 8-1-8-2) Chapter 9. Complaint, audits, revocation of permission, sanctions etc. (§ § 9-1-9-5)
Chapter 10. Entry into force and transitional rules (sections 10-1-10-3) cf. EEA Agreement annex IX Nr. 13 b (dir 2002/92).

Chapter 1. Scope and definitions section 1-1. Scope of this Act apply to the dissemination of direct insurance and reinsurance.
The law does not apply to: 1. business that is exercised by an insurance company or of an employee of an insurance company that trades on the insurance company's responsibility.

2. business that consists in providing information on occasion as part of other professional business, if the purpose of this activity is not to assist the customer with the making or implementation of an insurance contract.

3. business that only conveys General information about insurance products or create contact to the insurance companies, if the purpose of this activity is not to assist the customer with the making or implementation of an insurance contract.

4. an employment business that caters to the administration of an insurance company's injury, or appraisal and expert assessment of the damage.

The law also does not apply the mediation of insurance contracts if the following conditions are met: 1. the insurance contract only requires knowledge of the insurance coverage offered, 2. insurance contract is not a life insurance contract, 3. the insurance agreement does not include liability insurance, 4. insurance mediation is not formidlerens professional main business, 5. insurance constitutes a supplement to the product or service provided by the provider, and covers: a) the risk of malfunction, loss of or damage to the item , or b) damage to or loss of baggage and other risks in connection with a travel ordered by the provider, even if the insurance covers life-or liability insurance, provided that the life-or liability insurance is subordinate to the hoveddekningen for the risks associated with the journey, 6.
the annual premium amount does not exceed an amount corresponding to 500 euros, and insurance agreement's validity period total, including any extensions, not exceeding five years.

For the insurance intermediaries registered in another State in the EEA applies to section 8-2 first, other, third and fourth paragraph.
Financial audit determines in the case of doubt whether a business driver insurance disclosure.

§ 1-2. Definitions in this law means: 1. insurance mediation: an employment business which consists in putting forth, suggest or perform other preparatory work in connection with the conclusion of insurance contracts, or to enter into such agreements, or to assist in the management and implementation of such agreements, particularly in the context of a damage case.

2. the insurance brokerage: insurance business as in marshalling consists to provide the customer with advice from an analysis of a large number of those on the market available insurance solutions as possible, or business that consists in presenting the customer for insurance solutions from one or more insurance companies, without that it is entered into the express agreement with insurance companies about this.

3. return the insurance brokerage: insurance marshaling business that consists in providing an insurance company advice in connection with the making of the return the insurance contracts out from an analysis of a large number of those on the market available insurance solutions as possible, or business that consists in presenting the insurance company for insurance solutions from one or more return the insurance companies, without the express agreement has been signed with the return the insurance companies about this.

4. insurance agent business: insurance business as in marshalling consists to offer insurance products for and on behalf of one or more insurance company.

Chapter 2. Permission to operate the insurance broking section 2-1. Permission from the financial audit Insurance mediation business cannot operate without the permission of the Financial supervision.
Application for a permit shall contain information of importance for the assessment of whether the permission is to be given, including at least: 1. evidence that the entity meets the requirements in section 2-2, 2. a description of the insurance classes/risks insurance broker entity will mediate here in the Kingdom.

The business can be initiated when the conditions of the permit are met and insurance mediation entity has received confirmation from the financial supervision.
The financial authority to register the company and the in the lead who is responsible for insurance mediation business.

section 2-2. Criteria for permission to operate the insurance mediation company permission to operate the insurance broking may be given to enterprises that meet the following criteria: 1. The entity must be organized as limited liability company, public limited company, responsible company, limited partnership or sole proprietorship.

2. The undertaking must not be under the bankruptcy Manager or debt negotiation.

3. The entity must meet the requirements for insurance in Chapter 4.

4. The in the lead who is responsible for insurance mediation business must meet the requirements of § § 3-1 and 3-3.

Chapter 3. Fitness requirements for insurance brokers and the management of insurance mediation business § 3-1. Eligibility requirements for management General Manager, and any other person who actually leads the insurance mediation business should have general knowledge of the insurance brokerage.
Financial audit can provide further rules about which requirements to General Knowledge Manager and any other person who actually leads the insurance mediation business, must meet.

section 3-2. Eligibility requirements for insurance brokers Insurance brokers shall at all times have the knowledge and expertise that is required in relation to the insurance mediation entity's business.
An insurance broker shall be deemed to have the necessary knowledge and expertise when he or she: 1. is authorized insurance broker pursuant to the provisions on the authorisation of the insurance brokers from industry organization or educational institution approved by the Finance Authority, 2. have a satisfactory education and at least three years of practice from insurance that is relevant to the insurance mediation entity's business, or 3.
have the relevant practice from five consecutive years in an insurance mediation business or in an insurance company.

Accumulated practice according to the second paragraph must not be ended more than five years before the application for a permit is made.
Financial audit can provide further rules on the requirements for knowledge and expertise the insurance brokers must meet.

section 3-3. Requirements to the Honorable record for management and insurance brokers General Manager and any other person who actually leads the insurance mediation business and insurance broker shall have the Honorable record and not be under the bankruptcy Manager, bankruptcy quarantine or debt negotiation.
Permission should in all cases be denied if people are in the scope of the first paragraph: 1. has been convicted of a criminal offense and it expelled due to relationships assume that the person will not be able to attend to the position or task on the proper way, or 2.
in the Setup or by the exercise of other offices have expelled a such behavior that there is reason to assume that the person will not be able to attend to the position or task on the proper way.

The people who are covered by the first paragraph, shall, in the application for permission to produce ordinary police certificate after police registry law § 40 and confirmation from the Brønnøysund Register Centre for he or she is not under bankruptcy management, bankruptcy quarantine or debt negotiation. Such documentation shall also be presented for people who after the application time joins the position as stated in the first paragraph.

Chapter 4. Insurance for insurance mediation business § 4-1. Insurance mediation entity's obligation to provide for the insurance the insurance mediation business entity shall be committed before, and as long as the mediation business is exercised, make sure to have insurance in accordance with the provisions of this chapter.
The insurance must be drawn in a company that is headquartered in, is given permission to operate in the insurance business and are subject to government supervision in an EEA State. Valid insurance proof should be sent Financial audit each year.

§ 4-2. What national insurance contributions to cover Insurance mediation entity's liability to the client or others who derive their rights from the client due to professional negligence, shall at all times be covered by a liability insurance.
If the insurance mediation entity treats the client funds to be the in addition to the insurance as mentioned in the first paragraph have an insurance policy that covers the misappropriation of client funds committed by employees or others who perform work, missions or positions of trust for the insurance mediation company.

section 4-3. Fremsettelse of the claims the insurance company that the insurance mediation entity has when the injured party makes claim for compensation, is liable to the injured party.
A claim is considered made on the earliest of the following times: 1.

the time the insurance mediation entity or this insurance company the first time received the message about the loss of claims for compensation, or 2.
the time the insurance mediation entity or this insurance company the first time received written notice from the claimant regarding the circumstances that can be expected to lead to a compensation claim is raised against secured. This also applies to message from secured to the insurance company.

§ 4-4. Responsibility forsikringens the minimum size beløpsmessig scope of insurance coverage as provided in § 4-2 the first and second paragraph be set in regulations laid down by the Ministry. It can be determined in the regulations different minimum amount for small and large insurance mediation companies.

§ 4-5. Closer to the requirements of the assurances the injured party may require coverage directly from the insurance company without having first corrected claims against the insurance mediation company.
The insurance company cannot make the current other objections to the injured party than the objections insurance broker the entity itself has in the relationship to the injured party.
Termination of assurances or disappearance of assurances otherwise is not in effect in relation to the claimant until a month after the financial authority has received notice of the lapse. Set the new insurance prior to the expiration of this period, the demise of the insurance operation from the time the new insurance is set.
Liability insurance to cover claims made against the assured in a period of five years after termination of the business.
The law of 16. June 1989 Nr. 69 about insurance contracts § 7-5 shall apply when permitted by the law here. Insurance contract law section 7-7 jf. section 7-6 apply as far as the fit.

Chapter 5. General requirements for estate business section 5-1. Client account Client funds to be immediately placed on the client's account in the bank, separated from the insurance mediation entity's own funds. Mediation entity shall inform the Bank that the funds in the account belongs to clients.

section 5-2. Rules for good meglers look etc. An insurance mediation business to run the business according to the good meglers look. Insurance mediation entity must not act in a way that is suitable to create doubt about its position as an independent intermediary. Insurance mediation entity shall provide the documentation that is required for an insurance contract to get in condition.
Insurance broker entity shall exercise due care when selecting the insurer and the client to use to dissuade insurers if the ability to fulfill the duties under the insurance policies can be drawn in doubt or is unknown.
Insurance mediation entity can not through agreements with insurance companies or otherwise adapt themselves so that it can affect the insurance broker entity's independence as a mediator.

section 5-2 a. Consideration for insurance mediation an insurance mediation business entity shall ensure that the commissions and other compensation to be paid for the insurance agent, will be agreed with the customer before the mission is done. The agreement shall be confirmed in writing if the customer requires it, or the insurance agent include services related to the insurance relationship after the insurance contract is entered into.
An insurance mediation business do not have access to receive commissions or other compensation for the insurance agent from the insurer who has taken over the insurance agreement a marshaling mission applies.
The provisions of the first and the second paragraph does not apply to the insurance mediation of reinsurance. Further applies first and second paragraph not insurance mediation of insurance policies from insurance companies that are not established here in the Kingdom, provided that the insurance mediation entity disclose to the client received compensation. The provisions of the first and the second paragraph also does not apply the insurance mediation of insurance related to a) aircraft, b) ships that are registreringspliktige in Norwegian ordinary ship register, the Norwegian international ship register or in the foreign ship registry, c) drilling platforms and similar removable devices, d) fixed devices for use in connection with the recovery and the exploitation of undersea petroleum instances or utskiping, storage or pipe transportation of extracted oil and gas , e) devices for use in connection with the oil and gas business by plants on land, f) construction of ships or facilities as mentioned in the letter b to e, g) business, equipment, accessories, etc. in relation to the devices as mentioned in letter c to f, h) clean international item transportation.

The King can in the regulation or in the particular case make exceptions from the provisions of the first and second paragraph.

section 5-3. Which insurance company the insurance mediation entity can mediate to etc. Insurance can only megles to insurance company with the seat in the EEA Member State and to the Norwegian branch of a foreign insurance company with a licence after forsikringsvirksomhetsloven1 section 12-1. Lovpliktige damage insurance policies can only megles to insurance company that meets the requirements that apply for the special regulation of such assurances.
Damage insurance in business activity may still hurt megles insurance company with the seat in the State outside the EEA if the insurance does not apply to: 1. lovpliktig occupational injury insurance 2.
lovpliktig liability insurance for motor vehicles 3.
lovpliktig liability insurance regarding liability for damage caused by nuclear damage or by drugs.

Damage insurance in business activity means: 1: a) sea and transport insurance b) aviation insurance c) insurance relating to research, exploitation, storage or transportation of pipe undersea natural occurrences d) credit or bail when the policyholder carries on commercial or industrial business or a free profession, and the agreement applies to business 2: a) insurance designed by companies with employees that correspond to at least 10 years of work b) insurance designed by enterprises with an annual turnover of at least 50 mill. kroner.

§ 5-4. Information from the insurance broker in connection with the conclusion of an insurance contract and when changing or renewal of the agreement, an insurance broker shall at least provide the customer information as set out in the regulations of the Ministry.

section 5-5. Information criteria All information to customers according to § 5-4 to be given: 1. on paper or another durable medium that is available and accessible to the customer 2.
on a clear and precise manner that is understandable to the customer 3.
in an official language of the Member State in which the commitment is made up, cf. Law 27. November 1992 No. 111 about choice of law in the insurance section 2 No. 1 and section 9, or in another language which the parties agree.

Information as mentioned in section 5-4 may be given orally when the customer requests it, or when immediate coverage is needed. In that case it shall immediately after the conclusion of the insurance agreement is confirmed in accordance with the first paragraph.

section 5-6. Information duty to Norwegian Nature damage pool Insurance mediation entity shall by the execution of the agent mission educate Norwegian Nature damage pool about fire damage insurance on things here in the Kingdom that the insurance company megles which is not a member of the Norwegian Nature damage pool.

section 5-7. Information duty to Financial Audit Insurance mediation entity shall annually disclose to the financial audit on the distribution of the different insurance companies of the insurance the insurance mediation entity or branch has brokered during the past fiscal year here in the Kingdom. Financial audit sets out closer to the provisions on the message content and the deadline for when the message should be sent Financial Audit.
Insurance mediation company duties at the request of the financial supervision at any time to provide the information about the business as financial authority need to supervise in accordance with the provisions of the law here.

Chapter 6. Return the insurance broking section 6-1. Return the insurance broking For the practice of return the insurance broking get the rules in Chapter 2, 3, 4, 8, 9, 10 and § § 5-1 to 5-3 and § 5-7 equivalent application.
Financial audit can establish special rules or exceptions from the first paragraph in respect to the particular conditions that apply to the return the insurance brokers.

Chapter 7. Insurance agent business section 7-1. Registration When an insurance company enters into an agreement with an insurance agent companies about disclosure of the company's products, the insurance company shall register the insurance agency, General Manager, and any other person who actually leads the insurance agent business in a public registry. The insurance agent is fully and completely on the insurance company's responsibility for the products that is conveyed.
By registration of insurance agency insurance agency is granted authority to convey the insurance company's products.
Insurance Agency can not give the authorization to a under the agent without the requirements that are set in § § 7-2, 7-3 and 7-6 jf. section 7-111 is met for under agent business.
The Ministry may determine rules on the extension of further records.

section 7-2. Fitness Before an insurance company signs agreement with an insurance agent business to the insurance agent business to the insurance company prove that: 1. the Executive Director and any other person who actually leads the insurance agent business has general knowledge about business 2.
insurance agents meets the requirements of section 7-3 3.
the people who are covered by the No. 1 and 2 have an Honorable record and is not under bankruptcy management, bankruptcy quarantine or debt negotiation.

Registration should in all cases be denied if people who are covered by the No. 1 and 2:1.
is convicted of a criminal offense relationship where the expelled due to relationships assume that the person will not be able to attend to the position or task on the proper way, or 2.
by the conduct of work, assignment or position of trust has shown such a behavior that there is reason to assume that the person will not be able to attend to the position or task on the proper way.


People who are covered by the first paragraph Nr. 1 and 2 to present before registering the ordinary police certificate after police registry law § 40 and confirmation from the Brønnøysund Register Centre for he or she is not under bankruptcy management, bankruptcy quarantine or debt negotiation. Such documentation shall also be presented for people who after the application time joins the position as stated in the first paragraph.
The insurance company is obliged at the request of the financial supervision at any time to provide information that shows how the requirements of the first paragraph are met. Financial audit can provide further rules about which requirements to the General knowledge that management must meet.

section 7-3. Eligibility requirements for insurance agents insurance agents shall at all times have the knowledge and expertise that is required in relation to the business that is run.
An agent shall be deemed to have the necessary knowledge and expertise when he or she: 1. is authorized the Insurance Advisor pursuant to the provisions on the authorisation of the insurance advisors from industry organization or educational institution approved by the Finance Authority, 2. have a satisfactory education and at least one year of practice from insurance that is relevant to the agent entity's business, or 3.
have the relevant practices from three consecutive years in an insurance agent business or in an insurance company.

Accumulated practice according to the second paragraph must not be ended more than five years before the registration of the insurance agent business.
Financial audit can fix closer to rules about what knowledge and expertise the insurance agent should possess, including whether the dissemination of insurance products that require little expertise.

section 7-4. Refusal of registration Registration shall be refused if the requirements in § § 7-2 and 7-3 are not met.

§ 7-5. Insurance Agent business must draw insurance according to the rules in the Act Chapter 4, unless the insurance company in the agreement with the agent has undertaken to cover this liability.
The injured party may require coverage directly from the insurance company without having first corrected claims against the insurance agency.

section 7-6. Client account insurance agent business that requires the premier or amount from the customer to have the client account. Client funds to be immediately placed on the client account of the bank separately from the insurance agent business's own funds. Insurance agent business to educate the Bank that the funds in the account belongs to clients.

section 7-7. Which insurance company the insurance agent can convey assurances for the mv. Information to the customer the provisions of § § 5-3 to 5-5 applies to the insurance agent business.

section 7-8. Information duty to Financial Audit insurance agent business duties at the request of the financial supervision at any time to account for the routines that the insurance agent business applying to the fulfillment of the requirements as mentioned in this chapter.

§ 7-9. Aksessorisk agent Business Finance Authority can establish special rules or exceptions from the rules in this chapter under consideration to the specific conditions that apply to agents who wield the insurance mediation in addition to its professional master business.

section 7-10. Insurance agent business that represents the insurance company with headquarters in other countries the insurance agent business that has an agreement to mediation with one or more foreign insurance company to be registered according to the rules in this chapter. This does not apply if the agent business has agreement with an insurance company that is headquartered in an EEA State and are registered in the insurance company's home country after the rules for registration stipulated herein. For the affiliate businesses that are recorded in the Financial Audit applies the provisions of this chapter accordingly.

Chapter 8. Branch establishment and cross-border business section 8-1. Norwegian insurance formidleres business abroad The who want to exercise the insurance mediation in another State, including through the foreign subsidiary, will provide Financial audit message about this. Financial audit to give closer to rules about what the message should contain.
The message to exercise business in insurance another marshaling EEA Member State, shall at least include information on: 1. which state the branch will be established in and branch's address, or 2.
in the State that cross-border operations are commenced.

No later than one month after the reception of the message as mentioned in the previous paragraph should Financial Audit under the right supervisory powers in the host State if the insurance formidlerens intention when the competent authority would like such a notification. The insurance intermediary shall at the same time under the corrected about the transmission. The insurance provider can start their business one month after the date the person was informed of the financial audit. Insurance intermediary can start their business immediately if the host State does not want to be informed about the insurance formidlers intention.
Insurance intermediary has the obligation to give notification to the financial supervision of changes to the conditions that are meldepliktige.
The financial authority may prohibit the dissemination of insurance policies to the insurance company with the seat in the State outside the EEA with the criteria or prizes that Financial authority finds to be ubetryggende or unreasonable. The same applies for the dissemination of the insurance policies to the insurance company with the seat in the other State in the EEA if Financial audit finds that the terms and conditions and the premier is unreasonable.

section 8-2. Foreign insurance formidleres Business Insurance in Norway brokers registered in another EEA State can start business here in the Kingdom through a branch or as cross-border business a month after the financial authority has received the message from the supervisory authority in the company's home country whether the scheduled business. The provisions of the Act, sections 5-2, 5-2 a, 5-3, 5-4, 5-6 and 5-7 second paragraph applies to such insurance broker business. The Ministry may give further rules on application of the aforementioned legal provisions on foreign businesses and may make exceptions from the provisions if an insurance broker is subject to corresponding provisions in accordance with the home country's legislation.
Insurance agent business that is registered in another EEA State can start their business here in the Kingdom when it has given the message to the competent authority in the home country.
Foreign insurance intermediary companies with headquarters outside the EEA can after special permission from the financial audit establish branch here in the Kingdom. The provisions of the law here as far as they apply to fit. Financial audit can determine the supplementary rules for the creation of the branch here in the realm of insurance intermediary which is supplied permission or registered in a State outside the EEA.
The financial authority can, after having submitted the case to the competent authority in the State insurance intermediary is registered, impose insurance intermediary to stop with the business here in the Kingdom, if the insurance intermediary has been guilty of gross or persistent violation of their duties under this Act or other laws and regulations that apply here in the Kingdom.
The financial authority may require that the message should be the translated to Norwegian by approved translator.
The provisions relating to disclosure in the financial regulatory law applies to foreign companies doing business here in the Kingdom according to the provisions of the law here.

Chapter 9. Complaint, audits, revocation of permission, sanctions etc.

section 9-1. Complaint in the event of dispute between the client and the insurance conveys, each of the parties claim to have dealt with this by a competent authority as set out in the regulations of the Ministry. In the regulations the Ministry can fix closer to the provisions on the funding of the Agency, including provisions on expenses associated with organets business to insurance enterprises are offset on marshaling or covered by the parties. As long as the dispute is pending in the body, none of the parties can bring the dispute before the courts. A case that is its merits of body, can be brought directly in the courts.

section 9-2. The financial supervision authority shall supervise the insurance mediation in accordance with the rules of law here and financial supervision.

section 9-3. Revocation of permit and the cancellation of the registration Ledger audit can call back the permission that the insurance mediation business if claims in or in pursuance of the law here is no longer met.
Financial audit can give insurance company order to delete the registration of the agent business if claims in or in pursuance of the law here is no longer met.

section 9-4. Administrative rights loss Financial Audit could void the insurance mediation entity permission if an insurance broker or the insurance mediation entity grossly or repeatedly breached their duties by law or regulations.
Financial audit can give insurance company order to delete the registration of the agent business if an insurance agent or insurance agent business grossly or repeatedly breached their duties by law or regulations.
Decision after this provision may apply a limited time period.

section 9-5. The criminal responsibility of the intentional or negligent violation of this law § § 2-1, 4-1, 5-1, 5-3, 5-4, 5-6, 5-7 second paragraph, 7-1, 7-5, 7-6, 8-1 the first paragraph and 8-2, third paragraph, of the corresponding regulations, punishable by fines or imprisonment up to one year. In the same way be punished violations of section 7-7, cf. § § 5-3 and 5-4.
Rough or repeated violations of good meglers peek, cf. section 5-2, is punishable in the same way.

Chapter 10. Effective date and transition rules § 10-1. Entry into force the law will take effect from the time that the King decides. 1 the King can put into effect the individual provisions to different time.

section 10-2. Transitional rules the insurance mediation company that brokered insurance before 1. September 2000, and was listed in the financial authority's register, be listed automatically in the new registry in the financial audit.
The Ministry may fix other transitional rules.


§ 10-3. Change in other laws from the time the law will take effect the following changes are made in other laws:-