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Law No. 403 Of 11 October 2004 On Modification And Completion Of The Law Nr. 32/2000 Concerning Insurance Undertakings And Insurance Supervision

Original Language Title:  LEGE nr. 403 din 11 octombrie 2004 pentru modificarea şi completarea Legii nr. 32/2000 privind societăţile de asigurare şi supravegherea asigurărilor

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LEGE no. 403 403 of 11 October 2004 to amend and supplement Law no. 32/2000 on insurance undertakings and insurance supervision
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR no. 976 976 of 25 October 2004



The Romanian Parliament adopts this law + Article I Law no. 32/2000 on insurance companies and insurance supervision, published in the Official Gazette of Romania, Part I, no. 148 of 10 April 2000, as amended and supplemented, shall be amended and supplemented as follows: 1. After the introductory part of Article 2, the following point A is inserted: "" A. Common definitions ' 2 paragraphs 2 and 6 of Article 2 shall be repealed. 3. Points 5, 10, 11 and 17 of Article 2 shall read as follows: "" 5. insurer-the Romanian legal person or the subsidiary authorized under the present law to exercise insurance activities, as well as the branch of an insurance company or a mutual society, from a Member State, which received a authorisation from the competent authority of the home Member State; ................................................................... 10. significant shareholder-any person who, directly and alone through or in connection with other natural or legal persons, exercises rights arising from the holding of shares that, cumulated, represent at least 10% of the capital social of an insurer/reinsurer or gives it at least 10% of the total voting rights in the general meeting of shareholders or that give the possibility to exercise significant influence over the management of an insurer, reinsurer, insurance and/or reinsurance broker in which it has the significant position, after case; 11. significant persons-the administrators and/or the executive management of the insurer/reinsurer/insurance and/or reinsurance broker, as the case may be; ................................................................... 17 17. reinsurance-the insurance operation of an insurer or reinsurer by a reinsurer; " 4. After paragraph 19 of Article 2, paragraphs 20 to 24 are inserted, as well as letters B and C with the following contents: " 20. Member States-Member States of the European Union and other States of the European Economic Area; 21. competent authorities-national authorities which, by law or other regulations, are empowered to supervise the insurance market; 22. third State-State which is not a Member State of the European Union or of the European Economic Area; 23. unit of account-euro as defined in art. 4 4 of the Statute of the European Investment Bank For the equivalent in lei will be used the ROL/EUR rate communicated by the National Bank of Romania for December 31 of the financial reporting year; 24. durable support-any means that allows the customer to store the information addressed to him, in an accessible way for future uses, within a period of time corresponding to the purpose for which the information was provided and which allows the exact reproduction of it from disks, CD-ROM, DVD, the central units of computers that the electronic mail is stored, with the exception of the Internet sites, which do not meet the criteria for the storage and reproduction of information. B. Definitions for insurers 25. host Member State-the Member State other than the State of origin in which the insurer or reinsurer operates; 26. Member State of origin-the Member State in which the registered office of the insurer or reinsurer is situated; 27. insurer from a third country-an insurer whose real establishment is outside the European Union, whose branches open within the European Union operate on the basis of an authorisation from the competent authority of the host Member State. The main establishment means the main management and management center of the statutory activity, even if the decisions of the respective bodies are adopted according to the provisions transmitted by shareholders or associates from other states; 28. parent company-a legal entity to an entity with legal personality, hereinafter referred to as a subsidiary, in one of the following situations: a) directly and/or indirectly hold the majority of voting rights in a subsidiary; b) has the right to appoint or revoke the majority of the members of the management or control bodies or the majority of the directors of a subsidiary and is at the same time a shareholder or associate of that c) has the right to exercise a dominant influence over a subsidiary to which it is a shareholder or associate, by virtue of clauses contained in contracts concluded with the respective legal person or provisions contained in the articles of association of that legal persons, if the legislation governing the status of the branch allows the existence of such clauses or provisions; d) is a shareholder or associate of a subsidiary and in the last 2 years has appointed itself, as a result of the exercise of its voting rights, the majority of the members of the administration or control bodies or the majority of the branch leaders; e) is a shareholder or associate of a subsidiary and controls alone, on the basis of an agreement concluded with the other shareholders or associates, the majority of voting rights in that subsidiary, as well as any entity which, in the opinion of the Supervisory Commission Insurance, exercise a dominant influence over another entity; 29. branch-agency or branch of an insurer or reinsurer. Any permanent presence of an insurer or reinsurer in the territory of a Member State must be treated as an agency or branch, even if the presence does not take the form of an agency or branch, but it consists mainly of a representative led by the staff of that entity or an independent person who has a permanent mandate to act on behalf of and for that entity; 30. interest in participation-holding 10% or more, but not more than 20%, of rights in the capital of other entities, represented or unrepresented by securities that, creating a sustainable link with them, are intended to contribute to company activity; 31. participation-direct ownership or control of at least 20% of the voting rights or capital of a company; 32. participatory company-an entity that is either a parent company or another holding a holding or an entity in relation to another entity through a relationship defined by: a) the unitary management of the entity concerned and one or more entities with which it is not related, as a result of a contract concluded with that entity or pursuant to provisions of the constituent acts or the statute of those entities; or b) the majority presence of the same persons on the board of directors, executive management or supervisory board of the entity concerned and of one or more entities with which it is not related, during the financial year and until preparation of consolidated financial statements; 33. affiliated company-a subsidiary or other company in which a holding is held or an entity in relation to another entity through a relationship defined by: a) the unitary management of the entity concerned and one or more entities with which it is not related, as a result of a contract concluded with that entity or pursuant to provisions of the constituent acts or from the status of those entities; or b) the majority presence of the same persons on the supervisory board of the entity concerned and one or more entities with which it is not related, during the financial year and until the consolidated financial statements are drawn up; 34. insurance holding company-a parent company whose main activity consists in the acquisition and holding of holdings in subsidiaries, when these subsidiaries are exclusively or mainly insurance companies, reinsurance companies or insurance companies from third countries, at least one of these subsidiaries being an insurance undertaking; 35 35. mixed insurance holding company-a parent company other than an insurance undertaking or insurance undertaking in a third country or a reinsurance undertaking or insurance holding company, which includes at least one of its subsidiaries insurance; 36. the location of assets-the existence of assets, securities or real estate, in a Member State; the assets represented by claims shall be considered situated in the Member State in which they are 37. the congruence of the assets-the coverage of the obligations subscribed in a certain currency with assets expressed or achievable in the same currency; 38. "close" links-existing relationships between two or more natural and/or legal persons in one of the following situations: a) participation, which means direct or indirect ownership of 20% or more of the voting rights or capital of an entity; or b) control, which means the relationship between a parent company and a subsidiary or a similar relationship between any natural or legal person and an entity, as defined in point 28. All direct or indirect subsidiaries shall be considered as subsidiaries of the same parent company; c) two or more natural or legal persons are permanently linked by a control relationship of one and the same person; 39. reinsurer-the Romanian legal person authorized under the present law to exercise insurance activities, as well as the branch of a company or an insurance holding company or a mixed insurance holding company in a Member State that received an authorisation from the competent authority of the home Member State, which mainly practises reinsurance; 40. headquarters-the registered office of an insurer, reinsurer, insurance intermediary and/or reinsurance, legal person, as well as their agency or branch, as the case may be; 41. commitment-obligation assumed by an insurance contract; 42. Member State of the branch-the Member State in which the branch is situated which assumes an obligation under an insurance contract; 43. Member State of the undertaking-the Member State in which the insured person, the natural person, has his/her residence or the Member State in which the insured person is established; 44. Member State of the provision of services-the Member State of the undertaking, if it is assumed by an insurer or branch thereof, situated in another Member State; 45. the subsidiary-entity, legal entity, located to the parent company in one of the situations referred to in point 1. 28. All direct or indirect subsidiaries shall be considered as subsidiaries of the same parent company, in terms of consolidated supervision; 46. regulated market: a) in the case of a market located in a Member State-a multilateral system, managed by a market operator, which brings together or facilitates the reunification of third parties acquiring or selling financial instruments-within the system and in consistent with its non-discretionary rules-in a manner resulting from the contract, in accordance with the financial instruments admitted to be traded in compliance with these rules or systems, and which is authorized by the authority competence in the Member State and operate in accordance with the requirements of competence in the Member State; b) in the case of a market situated in a third country-a financial market recognised by the Member State of origin of the insurer, which meets similar requirements Any financial instruments traded on this market shall be of a comparable quality to that of instruments traded within the regulated markets or within the markets of that Member State; 47. amount at risk-the amount paid on the death of the insured person, diminished with the mathematical reserve for the risk of death; 48. compensation representations-units designated in each Member State by insurers in Romania authorized to practice class no. 10 10 from lit. B of Annex no. 1, exclusively the liability of the carrier, who are responsible for the administration and settlement of claims as a result of a motor vehicle accident; 49 49. group-the group of companies consisting of a parent company, its subsidiaries and entities where the parent or its subsidiaries hold a stake, as well as any entity in relation to the parent company in one of the situations provided in section 32 32; 50. intra-group transactions-the totality of transactions that an insurance undertaking, credit institution or investment firm within a financial conglomerate carry out directly or indirectly with another company within the same group or any natural or legal person with close links to the companies within the group in order to fulfil its obligations, irrespective of their nature; 51. Financial conglomerate-a group within which one of the conditions is met: a) an insurance undertaking, a credit institution or an investment firm is at the direction of the group or at least one subsidiary of the group is an insurance undertaking, a credit institution or an investment firm; b) where an insurance undertaking, credit institution or investment firm is in charge of the group, it is either a parent undertaking of an entity within the financial sector, of an entity holding a stake in an entity within the financial sector or an entity to the parent company in one of the situations referred to in point (a) 32 32; c) when the management of the group is not an insurance company, a credit institution or an investment company, but the activity of the group is mainly carried out within the financial sector, namely more than 40% of the total the group's balance sheet is related to financial sector entities; d) at least one of the entities within the group belongs to the insurance sector and at least one of the entities within the group belongs to the banking sector or the investment sector; e) both the consolidated activities in the insurance sector of the entities within the group and the consolidated activities in the banking sector and the investment sector of the entities within the group are significant. Any subgroup of a group meeting these conditions shall be considered as a financial conglomerate; 52 52. mixed financial holding company-a parent company other than an insurance undertaking, a credit institution or an investment firm which, together with its subsidiaries, of which at least one is an insurance undertaking, a credit institution or an investment firm with registered office in the European Union, constitutes a financial conglomerate; 53. control-the relationship between a parent company and a subsidiary or a similar relationship, according to one of the relations described in section 38, between any natural or legal person and a company; 54. Member State in which the risk is situated: a) the Member State in which the property is located, when the cover by the insurance contract refers either to this building or to the property in question and the goods in it, as long as these goods are secured by the same contract of insurance; b) the Member State of registration, where the insurance contract covers motor vehicles of any kind; c) the Member State in which the insurance contract, with a duration of 4 months or less, covers travel risks abroad, regardless of the class of insurance in which they are classified; d) the Member State in which the insured person has his domicile or, in the case of the insured person, the Member State in which he has his C. Definitions for intermediaries 55. insurance intermediaries-insurance brokers and insurance agents; 56. intermediary in reinsurance-the Romanian legal person authorized under the terms of this law, hereinafter referred to as reinsurance broker, which mainly intermediates the reinsurance activity, as well as intermediaries from the Member States that carry out reinsurance intermediation activity on the territory of Romania, according to the right of establishment and freedom to provide services, as the case may be; 57. insurance broker: a) Romanian or foreign legal person, authorized under the present law, which negotiates for its clients, natural or legal persons, insured or potential insured persons, the conclusion of insurance or reinsurance contracts and grants assistance before and during the performance of contracts or in connection with the regularisation of damages, as appropriate; b) an intermediary from a Member State carrying out intermediation activities on the territory of Romania, according to the right of establishment and freedom to provide services; 58. insurance agent-the authorized natural or legal person, on the basis of the authorization of an insurer or reinsurer, to conclude on behalf and on behalf of the insurer or reinsurer, insurance or reinsurance contracts with third parties, according to the conditions stipulated in the mandate contract concluded, without having the quality of insurer/reinsurer, insurance and/or reinsurance broker; 59. Member State of origin of the intermediary: a) where the intermediary is a natural person-the Member State in which it is situated and in which it operates; b) where the intermediary is a legal person-the Member State in which the registered office is situated or, where the legislation of that State does not provide for the existence of a registered office, the Member State in which the head office is situated; 60. host Member State of the intermediary-Member State other than the home Member State where an insurance or reinsurance intermediary operates under the right to establishment and freedom to provide services; 61. branch of an insurance or reinsurance intermediary-dismantling without legal personality of an insurance or reinsurance intermediary who, on the basis of a mandate, is empowered to carry out, in part or in all, the activity of insurance or reinsurance; 62. the activity of insurance intermediation-the activity of introduction, proposal or fulfilment of other activities of the conclusion of the conclusion of insurance contracts or the provision of assistance for the administration or performance of contracts, especially in the event of damage. These activities will not be considered insurance intermediation activities, if they are met by an insurer or an employee of the latter acting under the responsibility of the insurer. Neither the following shall be considered as insurance intermediation activities: the provision of information on a casual basis, in the context of another professional activity whose purpose is not to provide assistance to clients with a view to concluding or the administration of a contract, the management of the damages of an insurer on a professional basis, and the regularization 63. the activity of intermediation in reinsurance-the activity of introduction, proposal or fulfilment of other activities preliminaries of the conclusion of reinsurance contracts or the provision of assistance for the administration or performance of contracts, especially in the event of damage. These activities will not be considered as reinsurance intermediation activities, if they are met by a reinsurer or an employee of the latter acting under the responsibility of the reinsurer. Neither the following: providing information on a casual basis, in the context of another professional activity whose purpose is not to provide assistance to customers for the conclusion, will not be considered as a reinsurance activity. or the administration of a contract, the administration of damage to a reinsurer on a professional basis, as well as the regularization 5. In Article 3, paragraph 2 shall read as follows: " (2) An insurer may carry out only one of the two insurance categories provided in par. ((1). ' 6. After paragraph 2 of Article 3, paragraph 3 is inserted as follows: " (3) Insurance classes related to the categories provided in par. ((1) are set out in Annex no. 1 1. " 7. In Article 4, paragraph 9 shall read as follows: " (9) The return from office of a member of the Board of Insurance Supervisory Board is made on the proposal of the joint committees on budget, finance and banks, in the joint sitting of the two Houses of Parliament, if it ceases to meet the conditions necessary for the performance of his duties or if he is guilty of serious misconduct, incompatible with his office. " 8. After paragraph 9 of Article 4, paragraph 9 ^ 1 is inserted as follows: " (9 ^ 1) No member of the Board of Insurance Supervisory Board will be changed from office for other reasons or by procedure other than that provided in par. ((9). ' 9. In Article 4 (17), letter c) shall read as follows: " c) by revocation by Parliament according to the provisions of par. ((9) and (9 ^ 1); ' 10. In Article 4, paragraph (25) shall read as follows: " (25) The Insurance Supervisory Commission may exchange information with the competent authorities of the Member States in order to improve the supervisory activity, provided that the information will be subject to the conditions of confidentiality established in the rules issued in the application of this law. 11. In Article 4, after paragraph (25), the paragraphs (25 ^ 1) are inserted-(25 ^ 6) with the following contents: " (25 ^ 1) The Insurance Supervisory Board may conclude collaboration memoranda with similar authorities regarding the exchange of confidential information, necessary for supervisory activity, memorandums stipulating that disclosure of those public information shall be made only with the explicit consent of those authorities or, in the cases specified, only for the purposes for which those authorities have given their consent. (25 ^ 2) The Insurance Supervisory Commission may enter into cooperation agreements with third-country authorities only if the information sent to those authorities benefits from the same level of confidentiality with which the Supervisory Commission has Insurance deals with that information in Romania, in accordance with national law. (25 ^ 3) The Insurance Supervisory Commission must cooperate with the European Commission in order to provide to it the information necessary to draw up the report provided for in art. 40 40 of Directive no. 92 92 /49/EEC . (25 ^ 4) The Insurance Supervisory Commission shall cooperate permanently with the European Commission in order to improve the supervision of the insurance business. (25 ^ 5) The Insurance Supervisory Commission informs the European Commission of the difficulties arising from the application of this law, as well as any barriers that may arise to the detriment of the activity of insurers, reinsurers, insurance and/or reinsurance brokers authorized or established in Romania, compared to branches outside the territory of Romania. (25 ^ 6) The Insurance Supervisory Commission and the European Commission are in a timely manner considering these difficulties with a view to appropriate resolution. " 12. Article 5 shall read as follows: "" Art. 5. -The Insurance Supervisory Commission has the following main tasks: a) develop and/or endorse the draft normative acts concerning the insurance domain or having implications on this field, including the accounting regulations specific to the insurance domain harmonized with the European directives and international accounting standards, and endorses individual administrative acts, if they relate to insurance activity, after consultation with professional associations of insurance operators, and in terms of regulations accounting, and after the opinion/informing the Ministry of Public Finance b) authorizes insurers, reinsurers and insurance and/or reinsurance brokers to carry out insurance, reinsurance or intermediation in insurance and/or reinsurance, as the case may be, and endorses any modification of the documents or the conditions on the basis of which this authorisation was granted; c) authorizes the practice of compulsory insurance established by law and collects as its own income a percentage contribution of the amount of gross premiums collected, related to the respective insurance, in order to exercise supervision and control compulsory insurance activity, under the conditions of this law and of the rules issued in its application; d) approve significant direct or indirect shareholders, natural or legal persons, approve and withdraw the approval of significant persons of insurers, reinsurers, insurance and/or reinsurance brokers, under the conditions of this Law and of the rules issued in its application; e) approve the division or merger of an insurer/reinsurer/insurance broker and/or reinsurance authorized in Romania, under the conditions of this law and of the rules issued in its application; f) approve the portfolio transfer, including for branches of insurance companies in Romania, located in the territory of other Member States, to another Romanian insurer or to another insurer or a branch established on the territory of the Union European, after consulting the competent authority of the Member State of the branch, as well as for branches in Romania of insurers with registered office outside the European Union, under the conditions of this Law and of the rules issued in application g) approve the suspension or, as the case may be, the cessation of the activity of insurers, reinsurers and insurance and/or reinsurance brokers, after verifying their financial situation, at their request; h) supervise the financial situation of insurers/reinsurers/intermediaries in insurance and reinsurance, according to the procedure established by the rules issued in application of this law, including branches located on the territory of the states members, in accordance with the right of establishment and the freedom to provide services, after consulting the competent authority of the Member State of the branch. In order to protect the interests of insured persons or potential insured persons, they shall carry out controls of their activity; i) provide additional supervision, according to the modalities provided in rules issued by the Insurance Supervisory Commission, of the following entities: 1. any insurance undertaking which is a participating undertaking in at least one insurance undertaking, a reinsurance undertaking or an insurance undertaking from a third State; 2. any insurance undertaking whose parent undertaking is, as the case may be, an insurance holding company, a reinsurance undertaking or an insurance undertaking from a third State; 3. any insurance undertaking whose parent is a mixed insurance holding company; j) request the submission of information and documents relating to the insurance activity, both from insurers, reinsurers, insurance and/or reinsurance brokers and insurance agents, and from any other person, natural or legal, which is related, directly or indirectly to their activity, including information on the technical bases used for the calculation of insurance premiums and technical reserves; k) take the necessary measures to ensure that the insurance activity is managed in compliance with the specific prudential rules; l) apply the measures provided by law on financial recovery, reorganization or, as the case may be, bankruptcy of insurers and reinsurers, as well as of branches and subsidiaries thereof; m) applies the sanctioning measures provided by law, including in connection with the exercise of a direct or indirect influence, which is incompatible with the principles of prudential driving of the insurers ' activity, established by norms issued by Insurance Supervisory Board; n) receive and respond to complaints and complaints regarding the activity of insurers, reinsurers and intermediaries in insurance and reinsurance; o) approve its own revenue and expenditure budget; p) participate, as a member, in the international associations of the insurance supervisory authorities and represent Romania at international conferences and meetings regarding the insurance supervision; q) inform the competent authorities of the Member States in whose territory they are branches of insurers, reinsurers, insurance and/or reinsurance brokers or of Romanian insurance agents or where they are provided by them services, about any sanctioning measures taken against them, including the withdrawal of the operating authorization; r) opens and maintains the Register of insurers, reinsurers and intermediaries in insurance and/or reinsurance, whose form and content are established by norms given in the application of this law; s) performs other duties provided by this law. " 13. In Article 8, paragraph 1 shall read as follows: "" Art. 8. -(1) The Insurance Supervisory Commission shall adopt rules in application of the provisions of this law, as well as specific prudential rules, according to insurance practices. " 14. In Article 8, letter f) of paragraph (2) shall read as follows: " f) approve direct or indirect significant shareholders, natural or legal persons, as well as significant persons of insurers, reinsurers, insurance and/or reinsurance brokers, in accordance with the criteria established by rules issued by the Insurance Supervisory Commission; ' 15. in Article 8, after letter k) of paragraph (2), insert the letter l) with the following contents: "" l) apply other measures provided for by the legislation in force. " 16. in Article 10 (1), the letter of ^ 1 shall be inserted after point a): "a ^ 1) the amounts resulting, according to the law, from contravention fines;" 17. Article 11 shall read as follows: "" Art. 11. -(1) Insurance activity in Romania may be exercised only by: a) Romanian legal entities, constituted as companies on shares and/or mutual societies, authorized by the Insurance Supervisory Commission according to the procedure regulated in art. 12 12; b) branches of insurance and/or reinsurance companies from the Member States carrying out insurance activity on the territory of Romania in accordance with the right of establishment and with the freedom to provide services; c) subsidiaries and/or branches of insurance and/or reinsurance companies from third states, authorized by the Insurance Supervisory Commission, according to the procedure regulated in art. 12. (2) An insurer shall not be registered in the commercial register without authorization issued by the Insurance Supervisory Commission. " 18. Article 12 shall read as follows: "" Art. 12. -(1) The authorization application for carrying out the insurance activity will be sent to the Insurance Supervisory Commission in the format and accompanied by the documents provided by the legislation in the field. ((2) If deemed necessary, the Insurance Supervisory Board may request additional information, conduct its own investigations or with the support of other competent authorities or may use information from other sources. (3) The Insurance Supervisory Commission will decide on the granting of the authorization necessary to carry out the insurance activity or on the rejection of the authorization request, within 4 months from the date of submission of the complete documentation. (4) The Insurance Supervisory Commission may grant the operating authorization referred to in par. (3), in case of cumulative fulfilment of the following conditions: a) the preparation of a feasibility study which will include at least information on: 1. the nature of the commitments or risks that the insurer proposes to cover; 2. the current calculation methods used to determine the premium rates; 3. principles of the reinsurance program; 4. components of the minimum safety fund; 5. financial resources to cover expenses and, in the case of insurance from class no. 18 18 from lit. B of Annex no. 1, the resources available to the insurer for the provision of assistance. For the first three financial years, the feasibility study also includes: 1. estimation of general administration expenses and commissions expenses; 2. estimation of premiums and damages; 3. the revenue and expenditure budget; 4. estimation of financial resources required to comply with the obligations and the solvency margin; b) in the case of practicing the general insurance class no. 18-Insurance for assistance of persons in difficulty during trips or absences from home or from the place of permanent residence, the feasibility study provided in lett. a) includes, for this class, the following information: 1. evidence of qualified personnel; 2. evidence of equipping with the appropriate technical equipment; 3. the assistance network to be used to fulfill the obligations related to this insurance class; c) the feasibility study shows that the company has the minimum solvency margin; d) the authorized capital paid by the applicant in the account of a bank authorized by the National Bank of Romania or, in the case of a mutual company, the free reserve fund paid in accordance with the legal provisions in the field; e) the company name does not mislead the public; f) the company will carry out exclusively insurance activity; g) in the case of a foreign insurer, the applicant must demonstrate that it is legally constituted in the country of origin; h) insurers applying for authorization for class no. 10 10 from lit. B of Annex no. 1, exclusively the liability of the carrier, must appoint a representative of compensation in each Member State; i) the insurer holds a safety fund in accordance with the legal provisions. (5) For insurers in third countries the following requirements are added: a) branches belonging to insurance companies, reinsurance companies, as well as mutual societies with registered office in third countries hold, on the territory of Romania, assets amounting to at least half of the safety fund provided for in para. ((4) lit. i); b) branches belonging to insurance companies, reinsurance companies, as well as mutual companies with registered office in third countries constitute, on the territory of Romania, an initial deposit as collateral, amounting to a quarter of the the safety provided in par. ((4) lit. i). (6) The authorization granted to an insurer by the Insurance Supervisory Commission shall be valid throughout the territory of the European Community and the States belonging to the European Economic Area, in accordance with the right of establishment and the freedom to provide services. (7) The authorization shall be granted for a certain class, unless the insurer wishes to cover annually certain risks included in that class, as set out in Annex no. 1. (8) The Insurance Supervisory Commission may grant the authorization for the groups of classes referred to in lett. C of Annex no. 1, if the insurer requests it and meets all the conditions laid down in the law. (9) The authorization granted for a class or group of classes is valid and to underwrite additional risks from another class, if the conditions laid down in lett are met. D of Annex no. 1. (10) The insurer applying for authorization for a new insurance class or extension to some or all risks covered by the same insurance class must present for them the feasibility plan provided for in art. 12 12 para. ((4) lit. a)-c), as the case may be, as well as proof of the existence of the guarantee fund, in accordance with the provisions (11) Providers authorized to practice life insurance may also receive authorization for Classes 1 and 2, provided in lett. B of Annex no. 1. Insurers authorized to practice general insurance, but only for grades 1 and 2, provided in lett. B of Annex no. 1, have the right to receive operating authorization for the category of life insurance. (12) The Insurance Supervisory Commission will reject the application for authorization in case of failure to meet the requirements provided in par. (4) and (5), as well as when ascertaining one or more of the following situations: a) the documentation presented is not drawn up in accordance with the legal provisions in force; b) of the documentation presented: 1. the insurer shall not carry out an activity in accordance with the provisions of this Law; 2. significant shareholders and significant persons do not meet the criteria established by the rules; 3. the need to ensure a prudential management of the insurer is not satisfied in relation to the qualification of shareholders and members, directly or indirectly; c) the analysis of the feasibility study indicates that the insurer cannot ensure the achievement of the objectives set and in conditions compatible with the prudential practice regulations, which adequately protect the insured; d) there is a form of association by means of which the shareholding, until the last individual involved, is not brought to the attention of the Insurance Supervisory Commission. (13) The Insurance Supervisory Commission will communicate to the applicant the reasons for the rejection of the application for authorization. (14) Against the decisions adopted by the Insurance Supervisory Commission the person involved may complain to the Bucharest Court of Appeal, within 30 days from the date of communication of the decision. (15) The decision to grant the authorization issued by the chairman of the Board of the Insurance Supervisory Board shall be determined by the date from which the insurer will begin to operate. " 19. In Article 13, paragraph 5 shall read as follows: " (5) For the term non-irmisation of the operating fee provided in par. (3), the Insurance Supervisory Commission will calculate interest and late payment penalties, in accordance with the regulations in force regarding the collection of tax receivables. " 20. in Article 13, after paragraph 5, paragraphs 6 to 9 are inserted as follows: " (6) An insurer requesting authorization according to the provisions of art. 3 3 para. (2) pay at the submission of the application for authorization an authorization fee representing 75% of the amount of the tax provided in par. ((1). (7) An insurer requesting authorization according to the provisions of art. 12 12 para. (10) pay at the submission of the application for authorization an authorization fee representing 40% of the amount of the tax provided in par. ((1). (8) An insurer or reinsurer applying for authorization for a portfolio transfer, including in the cases provided by art. 23 23 para. (4), pay a portfolio transfer authorization fee, representing 50% of the amount of the tax provided in par. ((1). (9) An insurer, reinsurer or an insurance and/or reinsurance intermediary requesting the approval of changes in the articles of association, as well as any information or certifications from the Insurance Supervisory Commission to serve them in relations with third parties will pay an approval or certification fee, as the case may be, representing the equivalent in lei of the amount of 35 euros, at the rate communicated by the National Bank of Romania from the date of payment. " 21. Article 13 ^ 1 shall be repealed. 22. Article 14 shall read as follows: "" Art. 14. -(1) The Insurance Supervisory Board shall withdraw the operating authorization if it finds that an authorized insurer is in one of the following situations: a) has not started to carry out the insurance activity within 12 months from the date of issue of the authorization; b) give up the insurance activity and expressly request the withdrawal of the operating authorization; c) cease to carry out the insurance activity for a period of 6 consecutive months; d) no longer meets the conditions on which it was authorized; e) has not carried out the measures specified in the financial recovery plan or these measures have not reached their aim, as the case may be; f) violates the provisions of this law and the rules issued in its application. (. The Insurance Supervisory Commission shall inform the competent authorities of the other Member States of the withdrawal of the authorisation of an insurer carrying out the insurance activity in their territory. (3) The Insurance Supervisory Commission shall take the legal measures in the case of information received from the competent authorities of the other Member States concerning the withdrawal of the authorisation of an insurer carrying out insurance activity in the territory of Romania, in accordance with the right of establishment and with the freedom to provide services. (. The decision to withdraw the authorisation shall be reasoned and communicated to the insurer. Against the decision to withdraw the authorization the insurer can complain to the Bucharest Court of Appeal, within 30 days of communication. " 23. After Article 15, chapters III ^ 1-III ^ 3 are inserted with the following contents: "" CHAPTER III ^ 1 Right of establishment and freedom to provide services to insurers Art. 15 ^ 1. -Insurers authorized according to art. 12 12 may carry out insurance activity in the territory of any Member State through a branch, with the prior notification of the Insurance Supervisory Commission. Article 15 ^ 2. -The notification provided in art. 15 ^ 1 will include the following information and documents: 1. the name of the Member State in whose territory it intends to establish a branch; 2. the feasibility study, the insurance classes it intends to practice, as well as the organizational structure of the future branch; 3. the headquarters of the future branch of the host Member State, from which documents may be obtained and to which documents may be transmitted, and the address to which all the information and documents to the person or significant persons will be transmitted; 4. the names of the significant persons, who have the capacity to represent and engage the insurer in relations with third parties in the territory of that Member State, as well as in relation to the competent authorities and other institutions of that State; 5. the declaration for the insurer wishing to practice class 10, exclusively the liability of the carrier, provided in lett. B of Annex no. 1, showing that he is a member of the National Bureau and the National Guarantee Fund of the Member State in whose territory he aims to open a branch, as the case may be. Article 15 ^ 3. -(1) Within 3 months from the submission of the documentation provided for in art. 15 15 ^ 2, the Insurance Supervisory Commission shall submit this information to the competent authority of the Member State in whose territory the branch will be established, and shall inform the insurer concerned, unless it finds that: a) the financial situation of the insurer does not allow the fulfilment of obligations b) significant persons referred to in point 4 4 of art. 15 ^ 2 were convicted of crimes against heritage or for crimes provided by financial-tax legislation; c) significant persons referred to in point 4 4 of art. 15 ^ 2 do not have the necessary qualification and experience; d) the organizational structure does not ensure proper conduct of the insurer's activity. (2) The information provided in par. ((1) is accompanied by the confirmation that the insurer possesses the minimum solvency margin. (3) The Insurance Supervisory Commission shall transmit to the insurer concerned, within 3 months from the submission of the documentation provided for in art. 15 ^ 2, motivating the refusal of communication of the information provided in art. 15 15 ^ 2. (4) Against the refusal of the Insurance Supervisory Commission communicated under the conditions provided in par. (3) the insurer may complain, according to the law, to the Bucharest Court of Appeal, within 30 days of its communication. Article 15 ^ 4. -The branch can start its activity as follows: a) from the date on which the Insurance Supervisory Commission submits to the insurer the confirmation received from the competent authority of the Member State of the branch; or b) if within two months from the transmission of the information in accordance with art. 15 ^ 3 para. ((1) no confirmation shall be received from the competent authority of the Member State of the branch. Article 15 ^ 5. -Any modification of the information provided in art. 15 ^ 2 and 15 ^ 7 shall be communicated by the insurer, in writing, to the Insurance Supervisory Commission, as well as to the competent authority of the Member State of the branch or the Member State of the provision of services, at least 30 days before the change. Article 15 ^ 6. -Any insurer authorized to carry out activities in Romania which, on the basis of freedom to provide services, wishes to carry out this activity for the first time in one or more Member States, directly and not by means of a branches, must, in advance, notify the Insurance Supervisory Commission about this intention, also mentioning the nature of the obligations it intends to assume. Article 15 ^ 7. -(1) Within 30 days from the date of receipt of the notification provided for in art. 15 15 ^ 6, the Insurance Supervisory Commission shall communicate to the competent authorities of the Member State or Member States of the provision of services the following information: a) proof of the insurer's holding of the minimum solvency margin, calculated in accordance with the legal provisions in force; b) the insurance classes that the insurer was authorized to practice; c) the nature of the obligations that the insurer proposes to assume in the Member State of the provision of services. (2) The Insurance Supervisory Commission will notify the insurer concerned about the date of communication provided in par. ((1). (3) The insurer intending, on the basis of the freedom to provide services, to cover the risks provided for in class no. 10 10 from lit. B of Annex no. 1, other than the carrier's liability, shall: a) to communicate the name and address of the compensation representation; b) to give a statement that he has become a member of the National Bureau and the National Guarantee Fund of the Member State of the provision of services. Article 15 ^ 8. -(1) Within 30 days the Insurance Supervisory Commission shall transmit to the insurer the reasons for the refusal of communication of the information provided in art. 15 15 ^ 7. (2) Against the refusal to transmit the communication provided in par. (1) by the Insurance Supervisory Commission the insurer can complain to the Bucharest Court of Appeal, within 30 days from the communication of the refusal, according to the law. Article 15 ^ 9. -The insurer may start to carry out insurance activity as of the date of communication provided for in art. 15 ^ 7 para. ((2). Art. 15 ^ 10. -Any insurer that carries out insurance activity, based on the right of establishment or on the basis of the freedom to provide services, and does not comply with the legal provisions in force will transmit to the Insurance Supervisory Commission all documents legal requested by this regarding the conduct of the activity, which the insurers with registered office in Romania have the obligation to transmit. Article 15 ^ 11. --(1) If the Insurance Supervisory Commission finds that the insurer carrying out insurance activity, based on the right of establishment or on the basis of the freedom to provide services, does not comply with the Romanian legislation in force, ii calls on it to adopt remedial measures. ((. Where it is found that all necessary measures have not been taken to remedy the situation, the Insurance Supervisory Commission shall inform the competent authority of the home Member State in order to take remedial measures. The remedial measures taken will be communicated to the Insurance Supervisory Commission. ((3) If the measures taken by the competent authorities of the home Member State prove to be inadequate and/or insufficient and if the insurer in question continues to violate the provisions of the Romanian legislation in force, Supervision of Insurance exercises its duties according to the law, after informing the competent authority of the home Member State, in order to sanction non-compliance with the provisions of national legislation, being in order to order including the prohibition of carrying out insurance and the conclusion of new contracts Insurance. (4) Against an insurer carrying out insurance activity in Romania on the basis of the right of establishment the Insurance Supervisory Commission can take all measures according to the provisions of the legislation in force, including on properties on which he owns on the territory of Romania. (5) The Insurance Supervisory Commission will ensure access to the legislation in force and to the entire documentation that was the basis of the measures provided in par. (3) to insurers operating on the territory of Romania in accordance with the right of establishment and with the freedom to provide services, as well as to the competent authorities of the home Member States of these insurers. Article 15 ^ 12. -The measures provided in art. 15 ^ 11 will be motivated and communicated to the insurer concerned by the Insurance Supervisory Commission. Article 15 ^ 13. --(1) If the Insurance Supervisory Commission intends to carry out controls for the financial supervision of Romanian insurers and reinsurers carrying out insurance or reinsurance activities on the territory The European Union, on the basis of the right of establishment and freedom to provide services, shall inform the competent authorities of the host Member State of its intention. (2) The Insurance Supervisory Commission will allow the competent authority to carry out controls for the financial supervision of the insurer established in Romania, which carries out insurance activities on the basis of the right of establishment and freedom to provide services, after being informed by the competent authorities of the insurer's home Member State of their intention to carry out the control activity, directly or through other persons empowered to do so. The Insurance Supervisory Board has the right to participate in these controls. Art. 15 ^ 14. -The information and documents requested by the Insurance Supervisory Commission in accordance with art. 15 15 ^ 10 and art. 36 ^ 3 para. (2) will be written in Romanian. + Chapter III ^ 2 Rules applicable to branches established on the territory of Romania belonging to insurers with registered office outside the European Union Art. 15 ^ 15. -(1) Any insurer with registered office outside the European Union and wishing to establish a branch or agency on the territory of Romania is obliged to request the official authorization of the Insurance Supervisory Commission. (. The Insurance Supervisory Board may grant such authorization if the insurer meets at least the following conditions: a) is entitled to carry out insurance activity according to art. 2 lit. A section 1 1; b) open an agency or branch on the territory of Romania; c) undertake to open accounts specific to the insurance business they carry out and to record all data on transactions made; d) designate a representative, with the approval of the Insurance Supervisory Commission; e) possess in Romania active in the amount provided in art. 12 12 para. ((5); f) undertakes to maintain the solvency margin in accordance with art. 16 16 para. ((5); g) presents a feasibility study in accordance with the provisions of art. 12 12 para. ((4) lit. a) and, where applicable, lit. b); h) send any information requested by the Insurance Supervisory Commission in accordance with the provisions of art. 15 15 ^ 10. Article 15 ^ 16. -The portfolio transfer will be made in accordance with the provisions of art. 5 lit. f) and the rules for the application of this law. Article 15 ^ 17. -The insurer must comply with the provisions of art. 21 21 and 22. Art. 15 ^ 18. -The insurer must comply with the provisions of art. 12 12 para. ((4) lit. i) and para. ((5) lit. a) and b), of art. 16 16 para. ((5), (5 ^ 1), (6) and (6 ^ 1), of art. 18 18 and the rules issued in the application of this law. Art. 15 ^ 19. -(1) Any insurer which has received authorization from several Member States may require that the following advantages be applied to it which will be granted only together: a) the solvency margin provided for in art. 15 ^ 18 will be calculated taking into account all the work carried out within the European Union; in this case it will take into account only the activities carried out by all the agencies or branches established within the European Union; b) the warehouse requested under art. 12 12 para. ((5) lit. b) will be deposited only in one of these Member States; c) the assets representing the safety fund may be located in any of the Member States in whose territory they operate. (2) The application to benefit from the advantages provided in par. ((1) should be addressed to the competent authorities of the Member States concerned. The application must name the competent authority of the Member State which will supervise in the future the solvency margin for the entire activity of the agencies and branches established in the European Union. The choice must be motivated. The deposit will be deposited in that Member State. (3) The advantages provided in par. ((1) may be granted only with the acceptance of all the competent authorities of the Member States to whom it has been addressed. The advantages will be granted from the date on which the nominated competent authority informs the other competent authorities that it will supervise the solvency margin for the entire activity of the agencies and branches established in the European Union. The nominated competent authority shall obtain from the other Member States the information necessary to supervise the aggregated solvency margin of the agencies and branches established in their territory. ((. At the request of one or more Member States, the advantages granted under this Article may be cancelled simultaneously by all the Member States concerned. + Chapter III ^ 3 Rules applicable to subsidiaries belonging to parent companies governed by laws of a third State, as well as to the acquisition of the quality of significant shareholder by a parent company Art. 15 ^ 20. -(1) The Insurance Supervisory Commission must inform the European Commission about: a) any authorization granted to a direct or indirect subsidiary belonging to one or more parent companies in a third country; b) any acquisition by which a parent acquires the status of a significant shareholder of an insurer the Romanian legal person who turns him into a subsidiary of that parent company. (2) When an authorization is granted to a direct or indirect subsidiary of one or more parent companies in a third State, the structure of that group must be specified in a document delivered to the Insurance Supervisory Commission, which the it will send it to the European Commission Art. 15 ^ 21. -(1) The Insurance Supervisory Commission must inform the European Commission about the difficulties encountered by Romanian insurers, legal entities, in establishing or carrying out their activity in a third country. ((2) At the request of the European Commission, the Insurance Supervisory Commission will submit information on: a) any request for authorization made by direct or indirect subsidiaries of one or more of the parent companies of the third State concerned; b) any plans regarding the acquisition by an insurer from a third state of the quality of significant shareholder of an insurer, the Romanian legal person, the latter becoming a subsidiary of that insurer. (3) Following the provisions of par. (1), the Insurance Supervisory Commission, for a period of up to 3 months, which may be extended only with the express agreement of the European Commission, may suspend or limit decisions on: a) the granting of the authorization for applications received until the adoption of the suspension decision, as well as for the requests received during this period; b) the granting of the right to acquire directly or indirectly the quality of significant shareholder of an insurer the Romanian legal person by a parent company in the third country concerned. (4) The Insurance Supervisory Commission may order the termination of the measures provided in par. ((3) following receipt by the European Commission of a notification of the conclusion of an agreement with the third State concerned. (5) The measures provided in par. ((3) will be undertaken in compliance with the obligations assumed by the European Union in all international, bilateral or multilateral agreements on the initiation and conduct of the insurance business. " 24. In Article 16 (1), letter b) shall read as follows: "" b) minimum solvency margin; '; 25. in Article 16 (1), the following shall be inserted after point b): " c) the safety fund. '; 26. In Article 16, paragraph 5 shall read as follows: " (5) The insurer must at any time hold a solvency margin available to the activity carried out by him. The available solvency margin as well as the solvency adjusted for the exercise of supplementary supervision shall be calculated and reported in accordance with the provisions laid down by the Insurance Supervisory Commission. '; 27. Article 16 (5) shall be inserted after paragraph 5 with the following contents: "" (5 ^ 1) Depending on the insurance classes practiced, insurers are obliged to determine their minimum solvency margin, the ways of calculation and reporting are established by norms issued in the application of this law. " 28. In Article 16, paragraph 6 shall read as follows: " (6) Each insurer authorized by the Insurance Supervisory Commission, in accordance with the provisions of art. 12 12, is obliged to constitute a safety fund which accounts for one third of the minimum solvency margin. Depending on the underwritten risk classes, the minimum amount of the safety fund shall be determined by rules issued in the application of this Law. In the case of mutual societies, the safety fund shall represent at least three quarters of the minimum amount of the safety fund established for the insurer. " 29. Article 16 (6) shall be inserted after paragraph 6 with the following contents: "" (6 ^ 1) In the case of branches belonging to insurance companies with registered office in third countries, opened on the territory of Romania, the safety fund represents at least half of the minimum value of the safety fund established for the insurer. " 30. Article 18 shall read as follows: "" Art. 18. -(1) The minimum value and the nature of the assets kept in Romania by each insurer, contemplated when determining the solvency margin, must allow it to cover the total of its obligations in the country at any time of the exercise Insurance business. ((. The assets of the insurance undertaking admitted to represent the technical reserves may not be encumbered and may not be subject to guarantees of any kind in favour of third parties. (3) The free activities of tasks admitted to represent the technical reserves constituted by branches established on the territory of Romania, belonging to insurance companies with registered office in third countries, must be kept in Romania up to the minimum value of the safety fund and the surplus may be retained in the Member States. '; 31. in Article 20 (3), the following shall be inserted after point c): " d) to draw up consolidated financial statements, in accordance with the rules issued in the application of this law; e) to transmit any other financial reports, in accordance with the rules issued in the application of this law; f) to keep a special register of assets, in accordance with the provisions of Annex no. 2 2; g) to ensure the auditing of the annual financial statements by a financial auditor. " 32. Article 20 shall be inserted after Article 20 (1) with the following contents: "" Art. 20 20 ^ 1. -(1) The financial auditor will check the annual financial statements of insurers or reinsurers in accordance with the legislation in force and audit standards, harmonized with international auditing standards, and submit a report Insurance Supervisory Board. (2) During the performance of its legal duties, the auditor shall report to the Insurance Supervisory Commission about any act or decision that: a) constitutes a breach by the insurer or reinsurer of the legislation in force; b) affect the continuous operation of insurers or reinsurers; or c) leads to refusal of certification of accounts or certification subject to reserve. (3) The financial auditor is required to report to the Insurance Supervisory Commission on any facts or decisions that he becomes aware of during the audit period to an insurer that has close links resulting from a relationship. control with insurers or reinsurers to which he performs the audit. (4) Transmission to the Insurance Supervisory Commission of the information provided in par. ((2) and (3) do not constitute a violation of any restriction on disclosure of information and shall not entail any liability whatsoever on the person concerned. (5) The Insurance Supervisory Commission informs the Chamber of Financial Auditors in Romania of any violation of the provisions of par. ((1)-(3), with a view to taking the necessary measures to remedy these infringements. " 33. In Article 21 (1), the letter a) shall read as follows: "" a) the premium reserve-shall be calculated on a monthly basis by summing up the shares of the gross written premiums in respect of the non-expired periods of the insurance contracts, so that the difference between the volume of gross written premiums and this reserve reflect the gross premiums allocated to the part of the expired risks at the time of calculation; ' 34. In Article 21, paragraph 3 shall read as follows: " (3) The insurer exercising a life insurance activity has the obligation, in compliance with the provisions of art. 28, constitute and maintain technical reserves, including mathematical reserves, for the life insurance fund. " 35. Article 22 shall read as follows: "" Art. 22. -(1) The categories of assets admitted to cover the insurer's technical reserves, the rules for the dispersal of the placements, and the liquidity ratio shall be established by rules, in which the categories and classes shall be taken into account. of insurance practiced. (2) The assets admitted to cover the technical reserves of the insurer in the liquidation procedure constitute the general pledge of the insured creditors, their claims enjoying absolute priority over any other claims in respect of the insured persons. these assets. ' 36. in Article 23, after paragraph 3, paragraph 4 is inserted as follows: " (4) The approval of the portfolio transfer is requested by the Insurance Supervisory Commission, under the law, and if the insurer merges, divides, enters into the financial recovery, reorganization or liquidation procedure, after case. " 37. Article 24 ^ 1 shall read as follows: "" Art. 24 24 ^ 1. -(1) Any potential insured may enter into an insurance contract with any insurer authorised by a competent authority of the Member States. ((2) Insurers must communicate to insured or potential insured persons, prior to the signing of the insurance contract, at least the following information: the duration of the contract, the way it works, the suspension or termination of the contract, the means and terms of payment of premiums, methods of calculation and distribution of bonuses, arrangements for the settlement of claims on contracts, and other information necessary for the duration of the contract, in accordance with rules issued in the application of this law. 38. In Article 25, paragraph 3 shall read as follows: " (3) The insurers issuing international insurance documents, Green Paper, will be the Bureau of Motor Insurers in Romania, in accordance with the provisions of the International Green Card Convention, with the opinion of the Insurance. The activity of the Bureau of Motor Insurers in Romania is subject to the regulation and supervision of the Insurance Supervisory Commission, by norms issued in the application of this law. " 39. in Article 25, after paragraph 3, paragraph 4 is inserted as follows: "" (4) Insurers who practice compulsory insurance of civil liability for damages caused to third parties by motor vehicle accidents on the territory of Romania and beyond are required to constitute the Compensation Fund, from which they will be compensate persons entitled according to the provisions of the norms issued in the application of this law. The contribution of insurers to the Compensation Fund will be established by norms issued in application of this law, this fund will be administered by the Bureau of Motor Insurers in Romania. " 40. in Article 26, after point c), the following point (d) is inserted: "" d) keep a special register of assets, in accordance with the provisions of Annex no. 2 2. " 41. In Article 27, paragraph 1 shall read as follows: "" Art. 27. -(1) The administration of life insurance and related life insurance fund, including the investment and valuation of assets, as well as the calculation of technical reserves shall be made according to the provisions established by the rules. 42. In Article 27 (2), the letter a) shall read as follows: "" a) initiate the examination of the life insurance business, consisting of the calculation, according to the fundamental and generally accepted principles of the actuarial calculation, of the obligations related to the life insurance fund and of the technical reserves necessary, as well as an appreciation of the consistency between the life insurance fund and the related assets; the examination is carried out every 12 months or at shorter intervals, if the Insurance Supervisory Commission considers necessary; '. 43. Article 29 shall read as follows: "" Art. 29. -(1) The Insurance Supervisory Board may require the insurer to prepare a financial recovery plan, if it is found that the fulfillment of the obligations assumed towards the insured is endangered. For the purposes of approval by the Insurance Supervisory Commission, the recovery plan shall, in particular, provide for: a) the estimation of the costs of administration, in particular of the current general expenses and of the charges; b) the detailed estimation of the income and expenses related to direct insurance, reinsurance premiums and disposals; c) a forecast balance sheet; d) the estimation of financial resources to cover the subscribed obligations and the minimum solvency margin; e) the reinsurance program; f) the limitation of the volume of gross or net premiums written over a certain period, so that they do not exceed certain values; g) prohibition of the sale or renewal of insurance contracts of a certain type; h) prohibition of certain investments; i) increase of the paid-up share capital or free reserve fund; j) any measures it deems necessary for recovery. (2) When the insurer's financial position puts the interests of the insured at risk, the Insurance Supervisory Commission requests it to increase the minimum solvency margin in order to ensure its ability to perform the minimum solvency margin requirements in the near future. The level by which the solvency margin will be increased shall be determined on the basis of the data contained in the recovery plan referred to in paragraph 1. ((1). (3) The Insurance Supervisory Commission has the power to reduce the value of all the elements taken in the calculation of the available solvency margin, in particular where from the end of the last financial year there were variations significant market value of these items. (4) The Insurance Supervisory Board shall have the power to reduce the amount of the deduction of the reinsurance items taken in the calculation of the solvency margin, if: a) the structure and quality of reinsurance contracts have changed significantly compared to the previous financial year; b) the risks transferred by reinsurance are insignificant or non-existent. (5) If the Insurance Supervisory Commission has requested the recovery plan provided for in par. (1), does not transmit the confirmation provided in art. 15 ^ 3 para. (2), do not communicate the information provided in art. 15 ^ 7 para. ((1) or does not approve the portfolio transfer according to the rules issued in application of this law. 44. The title of Chapter VII shall read as follows: "" CHAPTER VII Insurance intermediaries and/or reinsurance intermediaries " 45. Article 33 shall read as follows: "" Art. 33. -(1) Under the terms of this law, insurance intermediaries are insurance agents and insurance brokers, and reinsurance intermediaries are reinsurance brokers. Insurance and reinsurance intermediaries shall be authorized and/or registered with the competent authority of Romania, in accordance with the rules issued in application of the provisions of this law, or to the competent authority of the home Member State, where appropriate. ((2) Insurers may not exercise insurance activities through unauthorised and/or non-registered intermediaries, with the exception of those who, having a professional activity other than insurance intermediation, broker insurance contracts which cumulatively meet the following conditions: a) the insurance contract brokered requires only knowledge of the risk covered by it. b) are not part of the life insurance category; c) does not cover risks of civil liability; d) are complementary to other products or services provided by another supplier, when it covers the following risks: business interruption, loss or damage to the goods of that supplier, damage or loss of luggage, other risks related to the journey booked by that supplier, even if the brokered insurance contract covers risks in the life insurance or civil liability category, if this is an ancillary risk of the principal risk related to that journey; e) the annual premiums do not exceed the equivalent in lei of 500 euros and the duration of the brokered insurance contract, including any renewal, does not exceed 5 years. ((3) Insurance and/or reinsurance intermediaries are obliged to make available to customers, before the conclusion, the modification or renewal of the insurance or reinsurance contract, at least the following information regarding: ((name) of the intermediary; the premises (address) and the register in which it was entered, and the ways in which the registration may be verified; any interest in participation or any participation, as the case may be, which an insurance undertaking or a the parent company of a particular insurance company holds them in the voting rights or in the capital of the insurance agent; the procedures for resolving any disputes between clients and the intermediary. (4) Insurance premiums paid by customers through insurance intermediaries shall be deemed to be transferred to the insurer at the time of payment; the indemnities or amounts secured paid by the insurer through intermediaries shall be deemed to have been transferred customers only at the time of their actual collection of the respective amounts/compensation. (5) In case of bankruptcy of the intermediary, the amounts provided in par. (4) shall be transferred by separate bank accounts used for the payment of other categories of clients, which may not be used for the indestulation of creditors other than those referred to in par. ((4). (6) The quality of the insurance agent is incompatible with that of insurance and/or reinsurance broker. " 46. Article 34 shall read as follows: "" Art. 34. -(1) A natural or legal person may carry out an activity as an insurance agent, if he holds a valid, written authorization from an insurer, referred to in this law as an agent contract, to act on his behalf. (. The insurance agent shall meet the following conditions: a) have the specialized professional training and/or skills, knowledge and skills corresponding to the exercise of this activity, in accordance with the requirements laid down in the rules issued by the Insurance Supervisory Commission in application of this law b) have in effect a professional indemnity insurance contract or equivalent guarantee provided by an insurer on whose behalf the insurance agent works or whose power of attorney is, valid throughout the territory of The European Community and the States of the European Economic Area, in accordance with the requirements laid down by the rules; c) not to have a criminal record for crimes against heritage or for crimes provided by financial-tax legislation; d) meet the legal requirements in force regarding the hiring of managers, the establishment of guarantees and liability in relation to the management of the goods of economic agents, authorities or institutions; e) to enjoy a good reputation. (. The insurance agent shall meet the following conditions: a) to have as an object of activity only the activity of insurance agent, except provided in art. 33 33 para. ((2); b) to have in force an insurance contract of civil liability, in accordance with the requirements laid down by the rules issued by the Insurance Supervisory Commission; c) have not previously been declared bankrupt and are not subject to a judicial reorganization and/or bankruptcy procedure at the time of application for authorization; d) enjoy a good reputation and the name of the agent must include the insurance agent; e) associations, significant shareholders, as well as significant persons, as the case may be, not to have a criminal record for crimes against heritage or for crimes provided by financial-tax legislation; f) the executive leader meets the conditions regarding the training and experience required to hold this position, according to the rules of the Insurance Supervisory Commission. (4) Insurers are required to register in a special register, both in computerized and paper-based system, the totality of insurance agents with which they have concluded agent contracts; insurers will periodically update all data relating to contracts of agent concluded. ((5) The data entered in the register of agents shall be transmitted in computerized system to both the Insurance Supervisory Commission and to the association or professional union to which the insurer belongs, which are permanently accessible to the public at the headquarters and on the Internet site of the insurer, supervisory authority and the above-mentioned professional association or union; these data shall be regularly verified by the Insurance Supervisory Commission. (6) The professional requirements that the individual insurance agent must meet, the data to be entered in the register of agents, the obligations of insurers on the supervision of agents, and other information relating to the insurance agent is established by rules issued by the Insurance Supervisory Commission. (7) Insurance agents, individuals, have the right to register with the work room in whose territorial area they reside, in order to benefit from the legal provisions on seniority, pension and social insurance funds. (8) An insurance agent the natural or legal person may not intermedia the same insurance classes except for a single insurer. ((9) If an insured has completed insurance through an insurance agent, the insurer on whose behalf the agent is acting shall be liable to the insured for all acts or omissions of the insurance agent. " 47. Article 35 shall read as follows: "" Art. 35. -(1) A legal person may carry out insurance and/or reinsurance intermediation activity, as an insurance and/or reinsurance broker, if he has an operating authorization from the Insurance Supervisory Commission. (2) In order to obtain the operating authorization, the applicant will present to the Insurance Supervisory Commission documents showing that he will comply with the provisions of par. ((5) lit. a)-d). (3) The Insurance Supervisory Commission will decide on the issuance of the operating authorization no later than 30 days from the date of receipt of the documents, showing that the applicant will comply with the provisions of par. ((5) lit. a)-d). (4) By the decision granting the authorization issued by the Chairman of the Board of the Insurance Supervisory Board, the date from which the insurance and/or reinsurance broker will begin to operate shall be determined. ((5) Any insurance and/or reinsurance broker must meet the following conditions: a) be a legal person, in whose name the term insurance broker, insurance-reinsurance broker or reinsurance broker, as the case may be; b) have a paid share capital in a monetary form, the value of which may not be less than 150 million lei; this value will be updated by rules adopted by the Insurance Supervisory Commission; c) have in force a civil liability insurance contract valid throughout the territory of the European Community and of the states belonging to the European Economic Area, in accordance with the requirements laid down by the rules given in the application of this laws; d) to have as an object of activity only the activity of insurance and/or reinsurance broker; e) keep and make available to the Insurance Supervisory Commission, upon request, the books and accounting records to highlight and explain the operations carried out during the activity, including information on insurance and/or reinsurance contracts concluded and agreements with insurers and/or reinsurers; f) comply with the requests of the Insurance Supervisory Commission with regard to the reports, as well as the activities they carry out, as determined by the rules; g) have not previously been declared bankrupt and not subject to a judicial reorganization and/or bankruptcy procedure at the time of the request for authorization. (6) The Insurance Supervisory Commission shall refuse an application for authorisation to operate for an insurance and/or reinsurance broker, if, as the case may be: a) associations, significant shareholders, as well as significant persons, as the case may be, have criminal records for crimes against heritage or crimes provided for in financial-tax law; b) the executive director does not meet the conditions of preparation and experience to hold this position, in accordance with the rules developed by the Insurance Supervisory Commission; c) the name of the applicant misleading the public d) the applicant does not comply with the conditions provided in ((5). (7) The operating authorization granted to an insurance and/or reinsurance broker may be withdrawn by the Insurance Supervisory Commission if: a) it finds that the insurance and/or reinsurance broker is in one of the situations referred to in par. ((6); b) the insurance and/or reinsurance broker has not paid the taxes provided in art. 36. (8) The Insurance Supervisory Commission will publish, at least once a year, in the Official Gazette of Romania, Part I, as well as in a publication of wide circulation updated list comprising insurance and/or reinsurance brokers authorized and any other information that you will consider necessary in the application of this law. (9) An insurance and/or reinsurance broker may not be a significant shareholder or significant person of an insurer and/or reinsurer. An insurer and/or reinsurer may not be a shareholder or administrator of an insurance and/or reinsurance broker. (10) Insurance and/or reinsurance brokers, subject to the empowerment received from insurers and/or reinsurers, have the right to collect premiums, to pay compensation on their behalf, in the currency provided for in the contract of insurance or reinsurance, as applicable, in compliance with the legal provisions in force, and to issue insurance or reinsurance documents on behalf of the insurer or reinsurer, as the case may be. (11) Insurance and/or reinsurance brokers may not operate through insurance agents. (12) Insurance and/or reinsurance brokers may be associated in professional unions and may join international trade unions, in compliance with their obligations arising from their constituent acts. (13) The advertising activities of insurance and/or reinsurance intermediaries must comply with the legal provisions governing this activity in order to protect the public interest. (14) If the Insurance Supervisory Commission finds that the advertising activity does not comply with these rules, it will ask intermediaries in insurance and/or reinsurance who have their registered office or domicile, as the case may be, in Romania immediately cease these practices, otherwise the contraventions are found according to art. 39 39 para. ((2) lit. d) or e). " 48. In Article 36, paragraph 3 shall read as follows: " (3) Insurance and/or reinsurance brokers pay, from the moment of granting the operating authorization for the duration of its validity, an operating fee, established annually by the Insurance Supervisory Commission, up to a maximum of 0.3% of the income from brokerage activity for the period for which they are due. " 49. In Article 36, paragraph 5 shall read as follows: " (5) For the term non-irmisation of the operating fee provided in par. ((3), the delay increases shall be calculated in accordance with the regulations in force on the collection of budgetary claims. " 50. After Article 36, Chapter VII ^ 1 is inserted as follows: "" CHAPTER VII ^ 1 Right of establishment and freedom to provide services to insurance intermediaries and/or reinsurance Art. 36 ^ 1. -(1) Intermediation in insurance and/or reinsurance, authorized and/or registered by the Insurance Supervisory Commission to carry out intermediation activity on the territory of Romania, as the case may be, may carry out intermediation activity on territory of any Member State. (2) Insurance and/or reinsurance intermediaries operate according to par. (1), subject to the prior information of the Insurance Supervisory Commission. (3) The insurance and/or reinsurance intermediary shall submit for information to the Insurance Supervisory Commission the following documents and information regarding: a) the Member State in whose territory it intends to operate; b) its organizational structure; c) the address of the establishment or host Member State from which it may be obtained and to which documents may be transmitted; d) the name, qualification and experience of the executive leader, who has the capacity to represent and engage him in relations with third parties in the territory of that Member State, including proof that he has no criminal record for crimes against its patrimony for crimes under financial and fiscal law. (4) The Insurance Supervisory Commission shall transmit this information within 30 days of their receipt to the competent authority of that Member State, only if the Member State has communicated to the European Commission that it wishes to be informed about such actions. ((. Where the Member State concerned has not expressed the wish provided for in paragraph 1. ((4), the insurance and/or reinsurance intermediary may start its business immediately. Art. 36 ^ 2. -If the Insurance Supervisory Commission wishes to be informed about the intention of any intermediary in insurance and/or reinsurance in a Member State to carry out intermediation activities on the territory of Romania, it will communicate this European Commission requirement. The insurance and/or reinsurance intermediary will transmit, through the competent authority of the home Member State, the requested documents and information, according to the legal provisions in force. Art. 36 ^ 3. --(1) The intermediary in insurance and/or reinsurance with domicile or, as the case may be, with its registered office in a Member State which, on the basis of the right of establishment and freedom to provide services, wishes to carry out intermediation activity on the territory of Romania, has the obligation to comply with and obey the regulations (2) The Insurance Supervisory Commission shall require an intermediary in insurance and/or reinsurance that carries out intermediation activity on the territory of Romania any information and documents necessary to verify its compliance with the national legislation. Art. 36 ^ 4. -(1) If the Insurance Supervisory Commission finds non-compliance with the provisions of national legislation by insurance intermediaries and/or reinsurance that carry out activities on the territory of Romania, according to the provisions of art. 36 ^ 3, require them to take the necessary measures to remedy the situation. ((. Where the Insurance Supervisory Commission finds that the intermediary does not take all necessary measures to remedy the situation, it shall inform the competent authority of the home Member State accordingly. ((3) If the measures taken by the competent authority of the home Member State prove to be inadequate and/or insufficient and if the intermediary concerned continues to violate the provisions of the national legislation, the Supervisory Commission has Insurance exercises its duties according to the law, being in law to apply the sanctions provided by law, including the prohibition of the activity of intermediation in insurance and/or reinsurance on the territory of Romania. Art. 36 ^ 5. -In case of withdrawal of the authorization of operation of an insurance intermediary and/or in reinsurance, which has its registered office on the territory of Romania, the Insurance Supervisory Commission will inform all the competent authorities whose territory operates that intermediary, on the basis of the freedom to provide services. Art. 36 ^ 6. -(1) The advertising activities of insurance and/or reinsurance intermediaries must comply with the legal provisions governing this activity in order to protect the public interest. (2) If the Insurance Supervisory Commission finds the violation of the provisions of par. (1) by insurance intermediaries and/or in reinsurance, operating under the right of establishment and freedom to provide services, request an immediate termination of these practices, otherwise they will inform the competent authority of the home Member State. ' 51. Article 37 shall read as follows: "" Art. 37. -(1) No deed or omission of the insurer or its agent, consisting in violation of any provision of this law, of the law applicable to the insurance contract and of the conditions or amount of insurance premiums, as well as other elements regarding the conclusion of the insurance contract, cannot be invoked by the insurer for the cancellation of an insurance contract. (2) An insured person who has concluded an individual life insurance contract must have at his disposal a period of 20 days from the date of signature of the contract by the insurer within the range of which he can cancel that contract. (3) The provisions of par. ((2) shall not apply to contracts with a duration of 6 months or less. " 52. Article 38 shall read as follows: "" Art. 38. -(1) Advertising activities must comply with the provisions governing this activity, in order to protect the public interest. (2) When the Insurance Supervisory Commission finds the violation of the provisions of par. (1), asks the insurer or reinsurer with the registered office in Romania to immediately cease these practices, otherwise the provisions of art. 39 39 para. ((2) lit. d) or e). (3) If insurers and reinsurers who carry out insurance activity on the territory of Romania on the basis of the right of establishment and freedom to provide services do not comply with the provisions of par. (1), the Insurance Supervisory Commission calls for an immediate end to these practices, and if those insurers and reinsurers do not comply, the Insurance Supervisory Commission will inform the competent authorities of the Member States of origin. ' 53. In Article 39, paragraph 2 shall read as follows: " (2) The following facts are contraventions: a) non-compliance, in any way, with the rules adopted according to 8 8 para. (1), as well as the decisions of the Insurance Supervisory Commission issued according to art. 8 8 para. ((2); b) the registration of the legal person in the commercial register without the prior authorization of the Insurance Supervisory Commission; c) violation, in any way, of the provisions of art. 18 on keeping assets in Romania; d) non-compliance with 20 regarding the management of the activity by the insurer or reinsurer; e) non-solicitation by the insurer/reinsurer/insurance broker and/or reinsurance, as the case may be, of the approval by the Insurance Supervisory Commission of significant direct or indirect shareholders and of significant persons of insurers/reinsurers/insurance and/or reinsurance brokers; f) the violation, in any way, by the insurer/reinsurer/broker of insurance and/or reinsurance of the obligations regarding the record keeping and the transmission of the reports provided by law and/or by the norms adopted in its application; g) violation of obligations provided in art. 16 16 and 35 on the maintenance of the minimum limit of the share capital and, where applicable, the free reserve pool, the minimum solvency margin and, where applicable, the safety fund; h) non-compliance with the provisions of art. 21 21 and 22 on the establishment and maintenance of technical reserves and their coverage, respectively, through the categories of assets admitted; i) non-compliance with the provisions of art. 23 23 on portfolio transfer; j) failure to fulfill or defective the obligations provided in art. 26-28 26-28; k) non-compliance with the provisions of art. 34 on the activity of insurance agents; l) carrying out the activity by insurers/reinsurers/insurance and/or reinsurance brokers in violation, in any way, of the provisions of art. 11-14, as well as of the rules adopted in application of this law m) non-compliance with the obligations provided 35 35 para. ((13) and (14) and art. 38 38 para. (2) on advertising and advertising activity; n) the conduct by insurers or reinsurers of insurance or reinsurance activity through unauthorized and/or unregistered intermediaries according to the law; o) failure to fulfill or defective performance of the obligation to young the register of insurance agents, according to the law; p) failure by insurers or reinsurers, in any way, of the obligation on the supervision of insurance agents, provided by art. 20 20 para. ((3) lit. b) and the rules given in the application of this law; q) making any changes to the documents and/or conditions on the basis of which the operating authorization was granted, without the prior opinion of the Insurance Supervisory Commission; r) carrying out the activity by insurance intermediaries and/or in reinsurance without fulfilling and maintaining the professional requirements provided by this law and the norms given in its application; s) non-compliance with 47 ^ 1 para. ((1) and (3); t) non-compliance with 24 ^ 1 para. ((2) and the rules issued in the application of this law. " 54. In Article 39 (3), points c)-e) shall read as follows: " c) the applicable fine: insurers, reinsurers and insurance and/or reinsurance brokers, from 0.05% to 1% of the share capital; to insurance agents legal entities and individuals, from 5,000,000 lei to 20,000,000 lei; administrators, directors, executives, between 1-6 net salaries of those persons in the month preceding the one in which the contravention was found; d) temporary or definitive prohibition of the exercise of insurance and/or reinsurance activity, partial or total, for insurers and/or reinsurers, for one or more insurance categories, and for insurance brokers and/or of reinsurance, temporary or definitive prohibition of the activity defined in art. 2 lit. C section 56 56 and 57; e) the withdrawal of the authorization of insurers, reinsurers or insurance and/or reinsurance brokers. " 55. In Article 39, paragraph 8 shall read as follows: " (8) It is a criminal offence and is punishable by imprisonment from 3 months to 3 years or with a fine of 100,000,000 lei to 500,000,000 lei for the act of any person consisting in carrying out insurance activity in/from Romania, according to the provisions of art. 2 lit. A section 1, without the authorization of the Insurance Supervisory Commission, as well as the conduct of the activity without registration in the Register of insurers, reinsurers and intermediaries in insurance and/or reinsurance. " 56. In Article 39, paragraph 9 shall read as follows: "(9) The application of the contravention sanctions provided by this law shall be prescribed within 6 months from the date of the finding of the deed, but not more than 24 months from the date of its commission." 57. In Article 39, paragraphs 10 and 11 shall read as follows: " (10) The contravention fines established by law and applied by the Insurance Supervisory Commission shall be made revenues to the state budget in the share of 50%, and the difference is made to the budget of the Insurance Supervisory Commission. (11) Contraventions provided in par. (2) their provisions are applicable Government Ordinance no. 2/2001 on the legal regime of contraventions, approved with amendments and additions by Law no. 180/2002 ,, as amended, in so far as this law does not provide otherwise. " 58. In Article 40, paragraph 1 shall read as follows: "" Art. 40. -(1) Against decisions adopted by the Insurance Supervisory Commission, in accordance with art. 8 8 para. (2), the natural or legal person concerned may complain to the Bucharest Court of Appeal within 30 days of the communication of the decision. " 59. Article 41 (1) shall be inserted after Article 41: "" Art. 41 41 ^ 1. -(1) The Insurance Supervisory Commission, together with the professional associations in the field, will encourage the establishment of appropriate procedures for the amicable settlement of existing disputes between insurance intermediaries or reinsurance and customers. (2) The Insurance Supervisory Commission will encourage professional associations in the field to cooperate with a view to amicable settlement of disputes concerning cross-border intermediation of insurance and/or reinsurance activity. " 60. Article 42 shall be inserted after Article 42 with the following contents: "" Art. 42 42 ^ 1. -(1) The Insurance Supervisory Commission is the only authority in a position to rule on the considerations of opportunity, assessments and qualitative analyses underlying the issuance of its acts. ((2) In the event of a court challenge of the acts of the Insurance Supervisory Commission, the court shall rule on the legality of these acts. " 61. In Article 43 (1), the letter d) shall read as follows: "" d) contributions paid by insurers, reinsurers and insurance and/or reinsurance brokers to professional trade unions. " 62. in Article 43, after paragraph 2, paragraphs 3 and 4 shall be inserted as follows: " (3) The act establishing and individualizing the obligation to pay an insurer, reinsurer, insurance broker and/or reinsurance agent or insurance agent authorized or registered, as the case may be, drawn up or issued by the bodies of the Commission Insurance supervision, according to the law, is a debt instrument. (4) On the due date, the title of claim becomes enforceable, under which the Insurance Supervisory Commission will trigger the forced procedure for the recovery of its claims, according to the provisions of the Code of Civil Procedure. " 63. Articles 47 ^ 1-47 ^ 4 and Annexes no. 1 1-3 with the following contents: "" Art. 47 47 ^ 1. -(1) Each insurer is required to report to the Insurance Supervisory Commission the volume of gross written premiums, damages and commissions, without deduction of reinsurance, broken down by each Member State and each insurance class. for which it has been authorised to practice it, relating to insurance contracts concluded on the basis of the right of establishment and the freedom to provide services. (2) The reporting provided in par. ((1) will not include information on carriers ' liability contracts, classified in the general insurance category, class no. 10-Civil liability insurance for motor vehicles, provided in lett. B of Annex no. 1. (3) The form, content and deadlines for submitting the report referred to in par. (1) shall be determined by the rules issued in the application of this law. (4) The Insurance Supervisory Commission shall submit, upon request, to the competent authority of the Member State in whose territory the insurer operates, on the basis of the right of establishment and freedom to provide services, centralized of the reports provided in par. ((1). Article 47 ^ 2. -Insurers, reinsurers and insurance and reinsurance intermediaries have the right to use the personal data of insured or reinsurance insurance or reinsurance contracts entered into, including the code of tax identification, only for the purposes of the management of insurance or reinsurance contracts and the handling of damage files, in compliance with the provisions Law no. 677/2001 for the protection of individuals with regard to the processing of personal data and the free movement of such data. Article 47 ^ 3. -This law transposes the European Union directives in the field of insurance, set out in Annex no. 3. Article 47 ^ 4. -Annexes no. 1-3 are an integral part of this law. " + Article II Within 90 days of the date of entry into force of this Act, the Insurance Supervisory Commission will issue implementing rules to Law no. 32/2000 , with subsequent amendments and completions, including those brought to it by this law. + Article III (1) The provisions of this Law shall enter into force 3 days from the date of publication in the Official Gazette of Romania, Part I, except for the definitions and provisions of this law involving the status of Member State of Romania, as well as lit. C and D of Annex no. 1 1 to Law no. 32/2000 , with subsequent amendments and completions, including those brought by this law, which will apply from the date of Romania's accession to the European Union. (2) The insurers who, on the date of entry into force of this law, were authorized to carry out life insurance and general insurance simultaneously will comply with the provisions art. 3 3 para. ((2) of Law no. 32/2000 , with subsequent amendments and completions, including those brought by this law, until December 31, 2005. + Article IV (1) Until the date of accession of Romania to the European Union, art. 5 lit. c) of Law no. 32/2000 , with subsequent amendments and completions, including those brought by this law, shall be applied on an annual basis, under the conditions established by this law and by the rules issued in its application. (2) Provisions art. 26 26 of Law no. 32/2000 , with subsequent amendments and completions, including those brought by this law, shall apply until December 31, 2005, except for lit. d), which remains in force after this date. + Article V On the date of entry into force of this Law, the existing availability of the Common Green Card Fund shall be taken by the Compensation Fund provided for in art. 25 25 para. ((4) of Law no. 32/2000 , with subsequent amendments and completions, including those brought by this law. + Article VI Law no. 32/2000 on insurance companies and insurance supervision, published in the Official Gazette of Romania, Part I, no. 148 of April 10, 2000, with subsequent amendments and completions, including those brought by this law, will be republished, giving the texts a new numbering. This law was adopted by the Romanian Parliament, in compliance with the provisions of art. 75 75 and art. 76 76 para. (1) of the Romanian Constitution, republished. CHAMBER OF DEPUTIES PRESIDENT VALER DORNEANU p. SENATE PRESIDENT, DORU IOAN TARACILA Bucharest, October 11, 2004. No. 403. + Annex 1 A. Life Insurance Types of insurance that have a contractual basis: a) life insurance that includes: life insurance, death insurance, survival and death insurance (mixed life), life insurance with reimbursement of premiums, insurance of marriage, birth insurance; b) annuities; c) additional life insurance: accident death insurance, personal injury insurance, permanent incapacity insurance from the disease, permanent incapacity insurance from the accident, temporary incapacity insurance from the disease, temporary incapacity insurance from accident, hospitalization insurance, medical expenses insurance, serious illness insurance, unemployment insurance, when they are additionally subscribed to a life insurance contract; d) permanent health insurance. Life insurance classes I. Life insurance, annuities and additional life insurance, provided in lett. A), b) and c), except as provided for in point (a) II and III II. Marriage insurance, birth insurance III. Life insurance and annuities that are related to investment funds, provided in lett. A) and b) IV. Permanent health insurance, provided in lett. A d) B. General Insurance General insurance classes: 1. Insurance of accidents (including accidents at work and occupational diseases), for which it is granted: -financial compensation; -compensation in kind; -mixed compensation (financial and in kind); -compensation for personal injuries suffered by persons during transport. 2. Health insurance, for which it is granted: -financial compensation; -compensation in kind; -mixed compensation (financial and in kind). 3. Insurance of terrestrial means of transport (other than railway), covering: -damage to the means of land transport by motor; -damage to land transport, other than motor vehicles. 4. Insurance of means of rail transport, covering: -damage to the means of rail transport moving or transporting goods or persons. 5. Insurance of means of air transport, covering: --damage to the means of air transport. 6. Insurance of means of shipping, lacustru and fluvial, covering: -damage to means of river transport; -damage to the means of transport lacustru; --damage to means of shipping. 7. Insurance of goods in transit, covering: -damages suffered by goods, luggage and other goods transported. 8. Fire insurance and other natural calamities, covering: -damages suffered by property and property (other than goods contained in Classes 3, 4, 5, 6 and 7), caused by: --fire; -explosion; -storm; -other natural phenomena outside the storm; --nuclear energy; -surlooks by the field. 9. Other insurance of goods, covering: -damages suffered by property and property (other than goods contained in Classes 3, 4, 5, 6 and 7), when these damages are caused by hail or frost, theft, other than those referred to in item 8. 10. Civil liability insurance for motor vehicles, which covers: -damage resulting from the use of land-based vehicles (including carrier liability). 11. Civil liability insurance for air transport means, covering: -damages resulting from the use of air transport (including the carrier's liability). 12. Insurance of civil liability for means of shipping, lacustru and fluvial, covering: -damages resulting from the use of means of maritime transport, lacustru and fluvial (including the liability of the carrier). 13. General civil liability insurance, covering: -damage from damage to third parties other than those referred to in point (a) 10 10, 11 and 12. 14. Credit insurance covering the following risks: -insolvent; --export credit; -sale in installments; --mortgage loan; --agricultural credit. 15. Insurance of guarantees for: --direct guarantees; --indirect guarantees. 16. Insurance of financial losses, covering: -unemployment risks; -insufficient revenue; -losses due to adverse weather conditions; -failure to achieve benefits; -risks related to current expenditure; -unforeseen commercial expenses; -impairment of market value; -annuity losses or similar income; -indirect trade losses other than those mentioned above; -non-commercial financial losses; -other financial losses, according to the terms of the insurance contract. 17. Legal protection insurance, covering: -the expenses of the judicial procedure and other expenses, such as: the recovery of the damage suffered by the insured through a civil or criminal procedure, the defense or the representation of the insured in a criminal, administrative or complaints directed against him. 18. Insurance for assistance of persons in difficulty during trips or absences from home or from the place of permanent residence. The risks contained in a class may not be classified in another class, except in the case referred to in lett. C. C. The name of the authorisation granted simultaneously for several classes of insurance: a) classes no. 1 and 2 shall be awarded under the name "Insurance of accidents and sickness"; b) classes no. 1 (fourth indent), 3, 7 and 10 shall be awarded under the name "Auto Insurance"; c) classes no. 1 (fourth indent), 4, 6, 7 and 12 shall be awarded under the name "Maritime and transport insurance"; d) classes no. 1 (fourth indent), 5, 7 and 11 shall be awarded under the name 'Aviation Insurance'; e) classes no. 8 8 and 9 shall be awarded under the name "Insurance of fires and other damage to property"; f) classes no. 10, 11, 12 and 13 shall be awarded under the name "Insurance of civil liability"; g) classes no. 14 14 and 15 shall be awarded under the name "Insurance and guarantees". D. Auxiliary risks The insurer authorised to underwrite a principal risk in a class may underwrite risks contained in another class, without the authorisation providing for such risks, if: --are related to the main risk; -concern the subject matter which is subject to the main risk; and --are guaranteed by the contract governing the main risk. The risks contained in lit. B in classes no. 14 14 "Credit Insurance", no. 15 15 "Insurance of guarantees" and no. 17 "Legal protection insurance" cannot be considered secondary risks for other classes. The risks contained in lit. B in class no. 17 "Legal protection insurance" may be considered ancillary risks to class no. 18 18 "Assistance insurance", when related to the main risk and when the main risk refers only to the assistance provided to persons who are in difficulty during trips or absences from home or from the place of permanent residence. Legal protection insurance may be considered as ancillary risks, in compliance with the provisions of the first paragraph, if the disputes or risks arising therefrom are related to the use of the means of shipping E. Major risks are: a) the risks included in classes no. 4 4, 5, 6, 7, 11 and 12 from lit. B; b) the risks included in classes no. 14 14 and 15 from lit. B, where the holder of the insurance contract professionally exercises an industrial, commercial or independent activity and the risk relates to this activity; c) the risks included in classes no. 3 3, 8, 9, 10, 13 and 16 from lit. B, to the extent that the holder of the insurance contract exceeds the limits of at least two of the following three criteria, as from 1 January 2007: -total assets: 6.2 million euro, established on the basis of ROL/EUR exchange rate communicated by the National Bank of Romania for the last day of the previous financial year; -turnover: 12.8 million euro, established on the basis of the ROL/EUR rate communicated by the National Bank of Romania for the last day of the previous financial year; -average number of employees during exercise: 250; d) if the holder of the insurance contract is part of a group that has the obligation to prepare the consolidated financial statements, the criteria referred to in lett. c) apply to consolidated accounts. + Annex 2 SPECIAL REGISTER 1. During the period of its activity, each insurance company must keep at its head office a special register of assets admitted to cover the technical reserves calculated and maintained in accordance with the regulations provided by this law and the rules given in its application. 2. In the situation of the exercise by the insurance company of a general insurance activity or a life insurance activity, it is obliged to keep at its headquarters the special register for the respective activity category. 3. The total value of the assets entered, assessed in accordance with the legal provisions in force, must be, at any time, at least equal to the value of the technical reserves. 4. If an asset entered in the register is encumbered by tasks in favour of a creditor or a third party, with the consequence of freezing part of the value of this asset to cover commitments, this situation shall be entered in register, and the amount not available is not included in the total amount referred to in point 3. 5. If an asset admitted to cover the technical reserves is encumbered by tasks in favour of a third party or a creditor, without fulfilling the conditions set out in point 4, or if such an asset is encumbered by tasks in favour of a creditor or a third party, or if a creditor has a right to demand the compensation of his claim with the claim of the insurance company, in the event of its insolvency and bankruptcy, this situation is entered in the register and those assets apply to the legal provisions in force. 6. Component of assets entered in the register according to 1-5, at the time of the opening of the judicial reorganization and bankruptcy proceedings, there must be no change and no change may be made in the register, except for the correction of purely material errors, except with the opinion of the Supervisory Commission Insurance and approval of the syndic judge. 7. Subject to item 6 6, the liquidators must add to the value of the respective assets all income obtained from their fruition, as well as the amount of the premiums collected in the activity in question between the time of opening the judicial reorganization bankruptcy and that of the payment of damages related to the insurance activity or, as the case may be, that of the portfolio transfer. 8. If the product of the realization of assets is less than their estimated value in the registers, the liquidators are obliged to provide a justification regarding this to the Insurance Supervisory Commission, as well as to the syndic judge. + Annex 3 DIRECTIVES whose provisions have been transposed into this Law 1. First Council Directive 73 /239/EEC COUNCIL DIRECTIVE of 24 July 1973 on the coordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of direct insurance other than life (Official Journal L 228, 16/08/1973, p 0003 0003) Consolidated version incorporating the amendments made by the following Directives: 76/580, 84/641, 87/343, 87/344, 88/357, 90/618, 92/49, 95/26, 2000/26, 2002/13, 2002/87: --art. 1 1, art. 2 2, art. 5 5, art. 6 6, art. 7 7, art. 8 8, art. 9 9, art. 10 10, art. 12 12, art. 13 13, art. 14 14, art. 16 16, art. 17 17, art. 19 19, art. 20 20, art. 22 22, art. 23 23, art. 25 25, art. 26 26, art. 27 27, art. 28 28 a), art. 29 29 a), art. 29 29 b), art. 37, Annexes A, B, C 2. Directive 2001 /17/EC of the European Parliament and of the Council of 19 March 2001 on the reorganisation and bankruptcy of insurance undertakings (Official Journal L 110, 20/04/2001, p. 0028 0028): --art. 10 10 (3), Annex 3. Directive 2002 /83/EC of the European Parliament and of the Council of 5 November 2002 on life assurance (Official Journal L 345, 19/12/2002, p. 0001 0001): -explanatory memorandum (18), art. 1 1, art. 2 2, art. 4 4, art. 5 5, art. 7 7, art. 8 8, art. 9 9, art. 14 14, art. 15 15, art. 18 18, art. 20 20, art. 24 24, art. 27 27, art. 28 28, art. 29 29, art. 31 31, art. 39 39, art. 40 40, art. 41 41, art. 42 42, art. 43 43, art. 44 44, art. 45 45, art. 46 46, art. 47 47, art. 48 48, art. 49 49, art. 51 51, art. 53 53, art. 54 54, art. 55 55, art. 61 61, art. 67 67, art. 69, Annex, Annex 2 4. Directive 2002 /87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate and with amendments to Council Directives 73 /239/EEC , 92 92 /49/EEC and 93 93 /22/EEC and Directives 98 /78/EC and 2000 2000 /12/EC of the European Parliament and of the Council (Official Journal L 035, 11/02/2003, p. 0001 0001): --art. 2 2 (2), art. 2 2 (6), art. 2 2 (9), art. 2 2 (10), art. 2 2 (11), art. 2 2 (12), art. 2 2 (13), art. 2 2 (14), art. 2 2 (15), art. 2 2 (16) 5. Directive 2002 /92/EC of the European Parliament and of the Council of 9 December 2002 on insurance intermediation (Official Journal L 009, 15/01/2003, p. 0003 0003): --art. 1 1, art. 1 1 (2), art. 2 2, art. 3 3, art. 4 4, art. 6 6, art. 7 7, art. 7 7 (3), art. 9 9, art. 11 11, art. 12 6. Directive 92 /49/EEC COUNCIL DIRECTIVE of 18 June 1992 on the coordination of laws, regulations and administrative provisions relating to direct insurance, other than life insurance, and amending Directives 73 /239/EEC and 88 88 /357/EEC ((Third Directive on "insurance, other than life") (Official Journal L 228, 11/08/1992, p. 1 1): -explanatory memorandum (7), art. 1 1, art. 2 2, art. 4 4, art. 5 5, art. 6 6, art. 7 7, art. 8 8, art. 9 9, art. 10 10, art. 11 11, art. 12 12, art. 13 13, art. 14 14, art. 16 16, art. 27 27, art. 29 29, art. 30 30, art. 32 32, art. 34 34, art. 35 35, art. 36 36, art. 38 38, art. 39 39, art. 40 40, art. 41 41, art. 44 44, art. 45 45, art. 46 46, art. 51 51, art. 56 56, art. 57 7. Directive 98 /78/EC COUNCIL DIRECTIVE of 27 October 1998 on the supplementary supervision of insurance undertakings forming part of an insurance group (Official Journal L 330, 05/12/1998, p. 0001 0001): -explanatory statement (10)-(11), art. 1 1 (b), art. 1 1 (g), art. 1 1 (h), art. 1 1 (i), art. 1 1 (j), art. 9 8. Directive 83 /349/EEC of 13 June 1983 pursuant to art. 54 54 para. ((3) lit. ((g) of the Treaty on consolidated accounts (Official Journal L 193, 18/07/1983, p. 0001 0001): --art. 1 9. Directive 2000 /26/EC COUNCIL DIRECTIVE of 16 May 2000 on the harmonisation of the laws of the Member States relating to civil liability insurance for damages arising from motor vehicles and amending Council Directives 73 /239/EEC and 88 88 /357/EEC (fourth Directive on motor insurance) (Official Journal L 181, 20/07/2000, p. 0065 0065): --art. 4 4, art. 6 10. Directive 2004 /39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments amending the following Directive: 85 /611/EEC , 93 93 /6/EEC and 2000 2000 /12/EC and repealing Directive 93 /22/EEC --art. 4 4 (14). ----------