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Law No. 162 Of 8 May 2009

Original Language Title:  LEGE nr. 162 din 8 mai 2009

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LEGE no. 162 162 of 8 May 2009 on approval Government Emergency Ordinance no. 117/2007 for amendment of para. ((19) art. 35 35 of Law no. 32/2000 on insurance and insurance supervision
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR no. 322 322 of 14 May 2009



The Romanian Parliament adopts this law + Article UNIC Approval Government Emergency Ordinance no. 117 117 of 24 October 2007 for amendment of para. ((19) art. 35 35 of Law no. 32/2000 on insurance and insurance supervision activity, published in the Official Gazette of Romania, Part I, no. 732 of 30 October 2007, with the following amendments and additions: 1. The title of the emergency ordinance shall be amended and shall read as follows: " EMERGENCY ORDINANCE to amend and supplement Law no. 32/2000 on insurance and insurance supervision " 2. Article I is amended and shall read as follows: " Art. I.-Law no. 32/2000 on insurance and insurance supervision activity, 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. In Article 2 (A), paragraph 17 is amended and shall read as follows: "" 17. reinsurance-the operation consisting in taking over the risks ceded by an insurer/reinsurer. " 2. In Article 2 (A), point 23 is repealed. 3. In Article 2 (B), the introductory part and points 25, 30, 35, 39 and 50 shall be amended and shall read as follows: "" B. Definitions for insurance and reinsurance 25. host Member State-the Member State other than the State of origin in which the insurer or reinsurer operates; ...................................................................... 30. interest in participation-rights in the share capital of other companies, whether or not represented by certificates, which, by creating a sustainable connection with these companies, are intended to contribute to the activity of the company. The holding of a share of the share capital of another company shall be presumed to be a participation interest when it exceeds a percentage of 20%; ...................................................................... 35 35. mixed insurance holding company-a parent company, other than an insurance or reinsurance undertaking, than an insurance or reinsurance undertaking in a third country, than an insurance holding company or a mixed financial holding company, which counts among its subsidiaries at least one insurance or reinsurance undertaking; ...................................................................... 39. reinsurer-legal person authorized under the conditions of this law by the Insurance Supervisory Commission or by the competent authority of the home Member State, which exclusively carries out reinsurance activity and/or related operations of this; ...................................................................... 50 50. intra-group transactions-the totality of transactions that an insurance and/or reinsurance undertaking, a credit institution or a financial investment firm or an investment management company within a financial conglomerate conduct them directly or indirectly with another company within the same group or with any natural or legal person with close links to the companies within the group, in order to fulfil its obligations, regardless of the nature of the . 4. In Article 2 (C), paragraphs 55 and 56 shall be amended and shall read as follows: "" 55. insurance intermediaries-natural or legal persons, hereinafter referred to as insurance broker, brokerage assistant, insurance agent, subagent or subordinate insurance agent, carrying out insurance intermediation activity, in exchange of a commission/remuneration, authorized or registered under the conditions established by this Law and the rules issued in its application, as well as intermediaries from the Member States carrying out on the territory of Romania insurance intermediation, according to the right of establishment and freedom to provide services, as appropriate; 56. intermediary in reinsurance-the Romanian natural or legal person authorized under the present law, hereinafter referred to as reinsurance broker, which intermediates, in exchange for a commission/remuneration, mainly the activity of reinsurance, as well as intermediaries from the Member States carrying 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; ". 5. In Article 2 (C), after point 57 ^ 2, a new point is inserted, paragraph 57 ^ 3, with the following contents: "" 57 ^ 3. insurance/reinsurance broker-natural person, professionally certified in accordance with the provisions of the norms issued in application of this law and operating only on the basis of a contractual relationship with a broker of insurance/reinsurance ". 6. in Article 3, after paragraph 3, a new paragraph (4) is inserted, with the following contents: " (4) Reinsurance activity shall be grouped in: a) life reinsurance; b) general reinsurance; c) life and general reinsurance, referred to as composite reinsurance. " 7. In Article 5, letter b) is amended and shall read as follows: "" b) authorise insurers, reinsurers and insurance and/or reinsurance brokers to carry out insurance, reinsurance, and insurance and/or reinsurance intermediation, as the case may be, and approve any changes to the documents or the conditions on the basis of which this authorization was granted; by documents means the status and/or the constitutive act of the company, the feasibility study and, only in the case of significant persons, the organizational chart and/or the organizing regulation and operation as well as any other acts established by the rules of authorization, issued in application of this law. Approval of amendments, including in the case of persons referred to in d), shall be requested no later than 10 calendar days after the adoption of the decision or decision on the modification of documents or conditions; ". 8. In Article 5, letter b ^ 1) is amended and shall read as follows: "b ^ 1) approves, for the registration as insurer/reinsurer at the office of the trade register, the founders, direct and/or indirect shareholders, based on the provisions of the norms issued in the application of this law;". 9. In Article 5, after letter h ^ 3) a new letter, letter h ^ 4) is inserted, with the following contents: "h ^ 4) establishes and coordinates the Insurance Management Institute, constituted as a legal entity of private law, non-profit;". 10. In Article 5, letter r) is amended and shall read as follows: "r) opens and maintains the Register of insurers/reinsurers and intermediaries in insurance and/or reinsurance, as well as the Register of actuaries, the form and content of which are established by rules issued in the application of this law;". 11. In Article 8 (2), letters f) and h ^ 2) shall be amended and shall read as follows: " f) approve, in accordance with the rules issued in the application of this law, to authorized insurers/reinsurers, including those whose shares are traded on a stock market, natural or legal persons who wish to become shareholders significant direct and/or indirect, as the case may be, that wish to increase their voting rights or their position as a significant direct or indirect shareholder, who wish to give up the status of a significant shareholder directly or indirectly or to reduce its voting rights or the position of a significant shareholder directly or indirectly, after having approved their intention to become significant shareholders, to increase their share of participation, to give up the status of a significant shareholder or to reduce the share of participation; ...................................................................... h ^ 2) establishes/specifies other objectives of interest and/or establishes obligations regarding the activity of insurers, reinsurers, insurance intermediaries and/or in reinsurance, organize training, training and professional improvement courses; ". 12. In Article 10 (1), after letter b) a new letter, letter b ^ 1) is inserted, with the following contents: " b ^ 1) the contribution provided for in art. 5 lit. c); ". 13. The title of Chapter III is amended and shall read as follows: "" CHAPTER III Authorisation of insurers/reinsurers ' 14. In Article 12, paragraph (4 ^ 3) is amended and shall read as follows: " (4 ^ 3) The competent authorities of the Member States will be consulted by the Insurance Supervisory Commission before issuing an operating authorization for an insurer/reinsurer in one of the following situations: a) is a subsidiary of an insurer/reinsurer authorised in another Member State; b) is a subsidiary of a parent insurance undertaking of an insurer/reinsurer authorised in another Member State; c) it shall be controlled by the same natural or legal person under which an insurer or reinsurer is controlled in that Member State. '; 15. In Article 12, the introductory part of paragraph 4 ^ 4 shall be amended and shall read as follows: " (4 ^ 4) The competent authorities supervising credit institutions or financial services and investment firms in a Member State will be consulted by the Insurance Supervisory Commission before issuing an operating authorization. for an insurer/reinsurer that is in one of the following situations: '. 16. In Article 12, paragraph (4 ^ 6) is amended and shall read as follows: " (4 ^ 6) The Insurance Supervisory Commission will be able to ask the competent authorities concerned for any information deemed relevant about the ownership of an insurer/reinsurer or the reputation and experience of significant persons of to him, both in order to issue an operating authorization and in terms of the permanent evaluation of the way of carrying out the activity of that insurer/reinsurer, in accordance with the provisions of the legislation in force. " 17. In Article 12 ^ 1, paragraphs 7, 9 and 10 shall be amended and shall read as follows: " (7) The actuary may be appointed or revoked only by the board of directors and/or the board of directors and/or the supervisory board, as the case may be, of the insurer or reinsurer and may not be a member of such a board. ...................................................................... (9) The competent body, of those referred to in par. ((7), it is obliged to appoint a new actuary, within a maximum of 20 calendar days from the date of revocation of the previous actuary. (10) If the competent body violates the obligation provided in par. ((9), the Insurance Supervisory Commission shall, within 10 calendar days of the expiry of the period provided for in the same paragraph, appoint an actuary for a maximum period of 6 months. " 18. In Article 13, paragraphs 2 and 9 shall be amended and shall read as follows: " (2) In case of rejection of the application for authorization or withdrawal of documentation by the applicant, the authorization fee shall not be refunded. ...................................................................... (9) An insurer, reinsurer or an insurance and/or reinsurance intermediary, the Street Victims Protection Fund or an entity that organises professional qualification, training and refresher courses, seeking approval for changes to the conditions and documents under which the authorization was granted/the opinion, as well as any information or certifications from the Insurance Supervisory Commission to serve them in relations with third parties, will pay an approval fee, where applicable, representing the equivalent in lei of the amount of EUR 35, at the rate communicated by National Bank of Romania on the date of payment. " 19. After Article 13, a new article is inserted, Article 13 ^ 1, with the following contents: "" Art. 13 13 ^ 1. -The provisions of art. 13 13 shall also apply to reinsurers authorised to carry out reinsurance activity by the Insurance Supervisory Commission. '; 20. The title of Chapter IV is amended and shall read as follows: "" CHAPTER IV Activity of insurers/reinsurers " 21. In Article 16, after paragraph 4, a new paragraph (4 ^ 1) is inserted, with the following contents: "(4 ^ 1) The exchange rate communicated by the National Bank of Romania at the time of the subscription or its payment shall be used for the increase of the share capital with cash contribution equivalent to the currency equivalent." 22. In Article 18, paragraph 1 shall be amended and shall read as follows: "" Art. 18. -(1) The assets of an insurer/reinsurer admitted to represent the gross technical reserves must be located in Romania or in another Member State, for the risks subscribed in Romania or in another Member State. " 23. After Article 21, a new article is inserted, Article 21 ^ 1, with the following contents: "" Art. 21 21 ^ 1. -The provisions of art. 20 20-21 shall also apply to reinsurers. ' 24. In Article 23, paragraphs 1 and 4 shall be amended and shall read as follows: "" Art. 23. -(1) An insurer/reinsurer may realize, on the basis of an agreement, a portfolio transfer of insurance/reinsurance, whereby a party or the entire insurance activity is transferred to another insurer/reinsurer. ...................................................................... (4) The approval of the portfolio transfer is requested by the Insurance Supervisory Commission, under the law, and if the insurer/reinsurer merges, divides, enters into the financial recovery, reorganization or liquidation, as appropriate. ' 25. After Article 26 ^ 7 a new article is inserted, Article 26 ^ 8, with the following contents: "" Art. 26 26 ^ 8. -The provisions of art. 26 26 ^ 1-26 ^ 7 also applies to reinsurers. " 26. In Article 28, paragraph 1 shall be amended and shall read as follows: "" Art. 28. --(1) The assets related to the life insurance fund will guarantee the safety of insured persons who have life insurance contracts and will be used only in relation to the obligations related to the life insurance fund. " 27. After Article 28 ^ 1 a new article is inserted, Article 28 ^ 2, with the following contents: "" Art. 28 28 ^ 2. -The provisions of art. 28 ^ 1 also applies to reinsurers. " 28. In Article 33, paragraphs 10 and 12 shall be amended and shall read as follows: " (10) All persons appointed as administrator and/or executive management must meet the criteria and conditions for the approval of significant persons of insurance intermediaries and/or reinsurance, established by rules issued in application of this law. ...................................................................... (12) The Insurance Supervisory Commission will be able to introduce demand against insurance intermediaries and/or reinsurance provided in par. (11) for the start of the procedure provided for in Law no. 85/2006 on insolvency proceedings, with subsequent amendments and completions. " 29. In Article 36, paragraph 2 shall be amended and shall read as follows: "" (2) In case of rejection of the application for authorization or withdrawal of documentation by the applicant, the authorization fee shall not be returned. " 30. In Article 38 ^ 1, paragraphs 11 and 13 shall be amended and shall read as follows: " (11) Periodic and thematic controls will be notified to the executive management of insurers, reinsurers and insurance and/or reinsurance brokers or, if applicable, to the Fund's Board of Directors, insurance agents or of reinsurance and subordinate insurance agents, legal entities, 15 working days before the start date. ..................................................................... (13) The unannounced controls will concern only one-off aspects, resulting from the analysis of periodic or annual reports and briefings or complaints and referrals registered with the Insurance Supervisory Commission, regarding the activity to insurers, reinsurers, insurance intermediaries and/or reinsurance intermediaries, the Fund or entities holding vocational training, training and refresher courses, as appropriate. '; 31. in Article 39 (2), points c), i), j), k) and n) shall be amended and shall read as follows: "" c) the breach, in any way, by insurers, reinsurers, insurance intermediaries and/or reinsurance, Fund or entities that organize vocational training, training and refresher courses, as the case may be, of the provisions of art. 5 lit. b), b ^ 1), c), d), e), f), g), h), h ^ 1), h ^ 2), h ^ 3), i), j), l), l ^ 1) and m), of art. 18, of the norms issued in application of this law, as well as of opinions, decisions or requests for information, documents and reports; ...................................................................... i) non-compliance with 23 23, art. 44 44 para. ((2) and of the rules issued in application of this law on portfolio transfer; j) failure to fulfill or defective the obligations provided in art. 27 27, 28, 28 ^ 1 and 28 ^ 2; k) non-compliance with 33 33 para. ((3), (4), (4 ^ 1), (6), (7) and (14), art. 34 34, art. 38 ^ 1 para. ((6), (12) and (14), as well as the rules on carrying out the activity of insurance agents, subagents and subordinate insurance agents; ...................................................................... n) the carrying out by insurers or reinsurers of the insurance, reinsurance or bancassurance activity through unauthorized intermediaries, uninformed and/or unregistered according to the law or without qualification and professional training appropriate; '. 32. In Article 39 (2), after letter t) a new letter, letter u) is inserted, with the following contents: " u) non-compliance with 39 39 para. ((8 ^ 1). ' 33. In Article 39 (3), letter c) is amended and shall read as follows: " c) applicable fine: insurers/reinsurers, from 5,000 lei to 100,000 lei; insurance and/or reinsurance intermediaries, from 2,500 lei to 50,000 lei; insurance agents, individuals, subagents and insurance agents subordinates, individuals, from 500 lei to 1,000 lei; to the heads of entities that organize qualification, training and professional improvement courses, from 1,000 lei to 10,000 lei; to the members of the board of directors and/or the directorate and/or the supervisory board, the executive management, the the heads of life insurance and general insurance activities, in the case of insurers with composite activity, of persons designated in management positions specific to the insurance field, which will be established by rules issued in the application of this law, its leader, as the case may be, to the executive management of insurance intermediaries and/or in reinsurance, legal entities and members of the Board of Directors of the Fund, from 2,500 lei to 50,000 lei. " 34. In Article 39 (3), after letter c ^ 1), two new letters, letters c ^ 2) and c ^ 3 are inserted, with the following contents: "" c ^ 2) fine applicable to any person who uses the names of the insurer, reinsurer, insurance and/or reinsurance broker, insurance or reinsurance agent, subagent or subordinate insurance agent or their derivatives, without had authorization issued or without being registered with the Insurance Supervisory Commission, from 10,000 lei to 100,000 lei, for legal entities, and from 5,000 lei to 10,000 lei, for individuals; c ^ 3) prohibition of the free allocation of assets in Romania of an insurer/reinsurer ". 35. Article 39 (3), letter e) shall be amended and shall read as follows: " e) the withdrawal of the authorisation of insurers, reinsurers or insurance and/or reinsurance brokers, withdrawal of approval for the significant persons of insurers, reinsurers, insurance and/or reinsurance brokers and, where appropriate, the withdrawal of the opinion, for the members of the Board of Directors of the Street Victims Protection Fund, the revocation of a member or the entire Board of Directors of the Fund, the revocation of approval qualification, training and professional training and/or lecturers, arrangement to insurers, reinsurers and insurance/reinsurance brokers of the removal of insurance agents, natural or legal persons, sub-agents, subordinate insurance agents or brokerage assistants from special registers in which they were registered, as well as the withdrawal of approval for the entities and/or persons referred to in art. 5 lit. h ^ 3). " 36. Article 39 (11) shall be repealed. 37. In Article 43, paragraph 3 shall be amended and shall read as follows: " (3) The act by which the obligation to pay an insurer, reinsurer, insurance and/or reinsurance broker, authorized or registered insurance agent or persons referred to in art. 39 39 para. ((3) lit. c), as the case may be, drawn up or issued by the bodies of the Insurance Supervisory Commission, according to the law, constitutes a title of claim. "" 3. After Article II, a new article is inserted, Article III, with the following contents: " Art. III. -Throughout the Law no. 32/2000 on insurance activity and insurance supervision, with subsequent amendments and completions, as well as with those brought by this emergency ordinance, the term motor vehicle is replaced by the term vehicle. " 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 ROBERTA ALMA ANASTASE SENATE PRESIDENT MIRCEA-DAN GEOANA Bucharest, May 8, 2009. No. 162. _________