JOHN CARLOS I

KING OF SPAIN

To all who present it and understand,

Sabed: That the General Courts have approved and I come to sanction the following Law:

Reason exposure

1

The most recent evolution of the regulatory norms of private insurance activity has been aimed, on the one hand, to expand the decision-making and maneuver capacity of the insurance entrepreneur by eliminating unnecessary obstacles to their free (a) to reinforce the solvency requirements and the prudential and sanctioning mechanisms applicable to those who do not make adequate use of the new framework of freedom and to breach the financial guarantees and the requirements of the solvency required by the applicable legislation.

This trend, which has been particularly strongly highlighted in the supervisory rules of the insurance companies, has not been followed in parallel in the regulatory framework affecting the activity of insurance companies. distribution of private insurance. In fact, the current regulation of the activity of mediation in private insurance of , in the terminology of the legislation that is repealed is constituted, as a rule with the rank of Law, by the Royal Legislative Decree 1347/1985, of 1 of August, by which the recast text of the Private Insurance Production Regulatory Law, as amended by Royal Legislative Decree 1300/1986 of 28 June, and Article 5, is approved. of Law 21/1990 of 19 December.

Although such legislation is of recent enactment, it should not be forgotten that it is inspired by the principles underpinning the previous repealed legislation, constituted by Law 117/1969 of 30 December, and its Regulation of 8 July 1971, and this because the recast text of 1985, by its very nature and purpose, and its subsequent amendments, deliberately limited to its scope, include the provisions of the Law of 1969 which have not been altered by Law 33/1984 of 2 August on the Management of Private Insurance.

These norms of the period 1969-1971 were largely focused on the defense of the professional interests of the insurance agents, they responded to an interventionist conception in the control by the administration of the activity The private insurer and, finally, were intended for a very different insurance market than today exists and the most clearly competitive environment in which the Spanish insurance will have to be developed in the immediate future by our integration into the European Economic Community. This legislation ultimately hinders the expansion of the insurance industry, favours the downward rigidity of the insurance price and does not, however, lead to a greater degree of protection for the insured.

2

In order to overcome these deficiencies and to place the regulations on the distribution of insurance at the same level of development as the supervision of the insurance institutions and in line with the recorded evolution in our market over the past decade, it is considered essential to enact a new law regulating the activity of insurance distribution without, unlike what has happened on previous occasions, necessarily from the schemes and the precepts of the legislation which precedes it in time. On the contrary, the objectives of this regulation are new and focused on the objectives of this regulation.

To this end, this Law is based on the following general principles:

1.

Regulation control of mediation in insurance contracts.

This Law gives special protection to policyholders and policyholders in the preparatory and post-insurance activities of insurance contracts with which their persons and their assets are protected. It is understood, however, that the activity aimed at formalisation and monitoring of reinsurance contracts concluded between insurance and reinsurance undertakings does not require such special protection.

2. Separation of insurance intermediaries into two distinct categories:

insurance brokers and insurance brokers.

The first are those who act on the subscription of insurance contracts as affections to an insurance undertaking or, if they have the relevant authorisation in the contract of insurance agency that they hold, to several of them. Insurance brokers, on the other hand, exercise their activity free from links which they involve in relation to one or more insurers.

From the above separation it follows that the function to be performed by each other is set to totally different characters: While the insurance agents act before the insurance consumer, they necessarily create an appearance The insurance brokers must offer professional advice based on their independence and explain to the insurance company that they are linked and offer the insurance of the insurance company to the insurance company. In the case of insurance, the insurance companies may be able to take advantage of the adapt, to your professional judgment, to the needs of those who are exposed to the risk.

3. Liberalization of the network of insurance companies.

To this end, the requirements required by the regulations that are repealed to access the activity of an insurance agent, such as the passing of approved examinations or courses and the collegiation, are eliminated. In accordance with the above criteria, insurance companies may conclude agency contracts with any natural or legal person who has legal capacity for the exercise of trade, which is a principle which translates into the possibility of use for the production of insurance the distribution networks of, for example, banks or financial institutions, department stores, etc. The freedom offered to the insurer to choose from among the various alternative distribution channels, those which it considers to be optimal allows a greater approximation of the insurance to the consumer to the benefit of this one and also comes accompanied, It is logical, of greater responsibility of the insurer for the conduct of those who distribute their insurance.

The agent affected, as an integral part of the exclusive distribution network of an insurance company, must be appointed by it according to its own selection criteria, as it takes place in any other activity economic in general and financial, in particular. It is the insurance entity that has to calibrate the distribution systems that best fit into its strategic plan of action, the type of policies that it wishes to offer on the market, the degree of complexity of the policies and the functions that you want to assign your insurance agents.

These circumstances, among others, will decisively influence the determination of the selection policy and the levels of prior knowledge, experience and technical training that each insurer will require from each of its agents.

In coherence with the liberalizing spirit that has just been exposed, it is excepted from the operations prohibited to the insurance entities by Law 33/1984, of 2 August, all those in which those entities, without realizing they themselves a different activity to the insurer, they allow to use their sales networks to any other non-insurance entities for the latter to distribute their goods and services.

4. Submission of insurance brokers to financial and professional requirements for access to the activity and for the exercise thereof.

The insurance broker, as opposed to the agent, not only does not act with the support of the insurance entities but, on the contrary, must be free of any link that affects them. Hence, this Law chooses to establish a set of rules that guarantee the independence of the insurance brokers from the beginning of their activity and that allow the appropriate transparency of the performance of the broker the policyholder and the policyholder.

In order to preserve the necessary independence of the broker with respect to the insurers that compete to the market, to guarantee that it is in possession of the knowledge and has the precise infrastructure to offer to the In the case of an irregular or negligent action, and ultimately, in order to protect the interests of those who participate in the operation of insurance with the mediation of an insurance broker, financial and professional requirements and a system of administrative penalties and infringements.

Now, this does not prevent the existence of a liberalization of the forms of insurance distribution similar to that established for the agency's network of insurance companies. It is open to the insurance brokers to use sales networks other than their own, bearing in mind that the use of these means of insurance will always be carried out under the responsibility of the insurance brokerage which freely chooses to use them.

5. Fixing of two centres other than imputation of administrative responsibility.

A logical consequence of the diversity of legal regimes mentioned above is differentiation in two systems of administrative responsibility. The first of these focuses on the insurance companies, as the last responsible for the selection of the persons who are to be part of their networks of distribution of their insurance policies, the technical training of the same and, in (a) the rules governing the application of the rules of procedure for the application of the rules of procedure for the application of the rules of procedure for the application of the laws of the Member States of the European Union; insurance form an integral part of your distribution network.

The second of the foci is the insurance broker or the insurance brokerage company and its managers, depending on whether the activity is carried out by a natural person or a legal person, taking into account the independence of the insurance broker or company. action.

The control of the activity of mediation in private insurance and of the natural or legal persons that perform it corresponds to the Directorate General of Insurance of the Ministry of Economy and Finance, circumscribing the functions (a) specific public services, without prejudice to those conferred on them by the general legislation of the Colleges of Insurance Mediators, which is entitled to the training of insurance brokers. In particular, the voluntary character with which the collegial is configured, in line with the doctrine of the Constitutional Court, must be highlighted and the same is limited to the qualified mediators.

6. Liberalization and flexibility in the activity of private insurance distribution.

To this ultimate purpose they serve the following concrete objectives:

Of the total distribution activity the Law only regulates the mediation in private insurance, limiting itself to establishing rules of freedom of action in its articles 2 and 3 for the rest of the channels of distribution.

Deleting social object exclusivity in insurance brokerage and agency societies.

The possibility of concluding contracts between insurance companies for the exchange of their distribution networks, under the principle of administrative responsibility of the insurance undertaking which, under a contract of this class, uses the distribution network of another insurer, for the irregularities that were committed in the sale of their insurance policies for that network.

Regulation, together with the subagents as auxiliary elements of the insurance agents, of the commercial collaborators of the insurance brokers, whose performance they will respond administratively these.

In addition to these aspects, all of which relate to private insurance intermediaries and to the activity they carry out, it should also be noted that this Law also includes the regulation of other related activities. the private insurance sector, such as those carried out by the insurance experts, the breakdown commissioners and the breakdown liquidators. The inclusion of these three activities, declared as subject to Article 2. of the Law 33/1984, of 2 August, on the Management of Private Insurance, seeks to clarify in a definitive manner the administrative control system to be applied to them. Therefore, and in line with the liberalization that the text of the norm is collected for private insurance intermediaries, and according to the specific guidelines laid down in it, the Law limits the control only to those who exercise the function of third expert and to the extent that they are exercised.

3

To all these effects the present Law is promulgated, articulated in 31 precepts that are structured in four chapters referring, respectively, to the mediation in private insurance, to the persons and entities that lead to such mediation (agents and brokers of insurance and auxiliaries and collaborators of each other), the administrative control of the mediation activity, and, finally, the voluntary collegial of the qualified individuals who carry out such activity.

Complete the text: Additional provisions to frame such regulation in the distribution of competencies between the State and Autonomous Communities (

), placing the rule within the regulatory framework control of private insurance (supplementary to the Law on the Management of Private Insurance), as well as the modification of the control regime of those who carry out the assessments of Article 38 of the Law of Insurance Contract. limited exclusively to the activity referred to as the third expert; In the case of the Court of Justice of the European Parliament, the Court of Justice of the European Court of Justice of the European Court of Justice of the European Union is a member of the Court of Justice of the European Union. private insurance and the collegial of such mediators; the repeal provision, which lists those provisions which are repealed by the entry into force of the Law, and final provisions enabling them to develop the same rules and set the date of its entry into force.

Chapter I

From mediation in private insurance

Article 1. Object.

This Law is intended to regulate the conditions under which the commercial activity of mediation in private insurance should be ordered and developed, establishing the principles of its organization and operation, requirements for access to the exercise of that activity, the rules to which those who develop it and the supervisory and administrative discipline which it applies to them must be subject to.

Article 2. Material scope.

1.

The activity referred to in the preceding article shall include mediation between policyholders and policyholders, on the one hand, and the insurance companies authorized to carry out the private insurance business, on the other. It shall also include those activities carried out by those who are mediating in the promotion and preparatory advice of the formalisation of insurance contracts and the subsequent assistance to the insurance policyholder. insured or the beneficiary of the insurance.

2. The performance of the insurance institutions as an opening in the co-insurance operations shall not be considered as a mediation activity in private insurance.

Article 3. Subjective scope.

1. The mediation activity in private insurance will be carried out by the mediators defined in this Law

2. Private insurance intermediaries may not directly or indirectly assume the coverage of any kind of risk or take into their position, in whole or in part, the sinister object of the insurance, with no pact to the contrary being null and void.

3. Insurance institutions may accept risk coverage without intervention by private insurance intermediaries. Without prejudice to agency contracts concluded in accordance with this Law, insurers with permanent establishment located in Spain may also conclude contracts for the distribution, under their administrative responsibility, of their insurance policies through the distribution networks of other insurance companies. Such contracts shall be displayed by the entities holding them at the request of the Directorate-General for Insurance.

4. Mutual societies and cooperatives at variable premiums and social security institutions shall not be able to use the services of private insurance intermediaries.

5. Without the need for an agency contract and without prejudice to the possibility of holding it, employees who are part of the templates of the insurance institutions or the mediators may make sure that they are dependent on the undertaking, the which are to be understood or inter-mediated, respectively, by that undertaking for all purposes. This activity will not alter the relationship between the company and the employee on the basis of the employment contract.

6. Private insurance intermediaries shall meet the requirements laid down in this Law. However, in the case of natural persons or foreign legal persons not belonging to a Member State of the European Economic Community and in fact or in law in the countries of origin of such persons, the elderly guarantees or requirements that the Ministry of Economy and Finance may establish, on the basis of reciprocity, other equivalent conditions in their terms or for the purposes of such guarantees or requirements, which may be granted to nationals of such States; of the country concerned.

Chapter II

Of mediators in insurance contracts

Section 1. Of the private insurance intermediaries

Article 4. General obligations.

1. Private insurance intermediaries will provide accurate and sufficient information on the promotion, offer and subscription of insurance policies and, in general, in all their advisory activities.

2. Natural or legal persons engaged in the activity of mediation in private insurance may not directly or indirectly impose the conclusion of an insurance contract.

3. The private insurance intermediary shall in any event be deemed to be a depositary of the amounts which it has received on behalf of the insurance undertaking.

Article 5. Classification and reservation of denomination.

1.

Private insurance intermediaries are classified as insurance agents and insurance brokers, whether they are natural or legal persons. Agency and insurance brokerage activities are incompatible with each other.

2.

The and denominations are reserved for the mediators defined in this Act.

Section 2. Of the insurance agents

Article 6. Insurance agents.

1. A natural or legal person who, by the conclusion of an agency contract with an insurance undertaking, undertakes to carry out the activity defined in the first subparagraph of Article 2 (1) and, in his or her own right, shall be a servant. case, the one indicated in the second indent of that number.

2. Under the agency contract, the status of the agent of the insurer with whom it is concluded is acquired.

3. In order to conclude an agency contract with an insurance undertaking, it will be necessary to have legal capacity to exercise the trade in the terms provided for in the commercial law.

Article 7. Insurance agency contract.

1. The contract of insurance agency shall always be of a commercial character, shall be entered in writing and shall be understood as having regard to persons who are contracting parties with a reciprocal duty of loyalty.

2. The content of the contract shall be that the parties agree freely and shall be governed by the general rules applicable to the agency contract.

3. Insurance agents may use the services of sub-agents which cooperate with them in the promotion and mediation of insurance, in the terms in which they are agreed in the insurance agency contract. Subagents will not have the status of insurance agents but will be subject to identical incompatibilities.

Article 8. Bans.

1. An agent may not be simultaneously bound by an insurance agency contract with more than one insurance undertaking unless it is authorised by it in the agency contract or in writing after its conclusion.

2.

The authorisation referred to in the preceding number shall be understood to exist where several insurance institutions have agreed in writing on the joint use of their distribution networks or part of their distribution networks in accordance with the provided for in Article 3 (3).

Article 9. Economic content and extinction of the agency contract.

1. Insurance agents may not promote the subjective modification of an insurance undertaking in all or part of the portfolio of insurance contracts which have been concluded with their intervention. They shall also not carry out, without the consent of that insurer, acts of provision on their mediating position in that portfolio.

2. The insurance agency contract shall specify the fees for the premiums or other economic rights that correspond to the agent during the term of the contract and, if applicable, after the contract has been extinguished.

3. By way of derogation from the provisions of paragraph 1 of this Article, the termination of the contract by the insurance agent shall be such as to inform those who appear as insurance policyholders in the contracts concluded with their insurance. intervention.

Article 10. Obligations vis-à-vis third parties

1. In all advertising and in all the documentation of the trade in private insurance that the insurance agents carry out, the expression or in the case of natural or legal persons. They shall also include the social name of the insurance undertaking for which they are carrying out the mediation in question, on the basis of the agency's contract with it or the contract between entities. insurers referred to in Article 3 (3), such as the registration number which the insurance institution has granted in accordance with Article 11.

2. The communications made by the insurance policyholder to the insurance agent which he or she has mediated in the contract shall have the same effect as if they were made directly to the insurance undertaking. Furthermore, the payment of the premium receipts by the insurance policyholder to the insurance agent shall be deemed to have been made to the insurance undertaking, unless this has been expressly and specifically excluded from the insurance policy.

3. The insurance undertaking which subscribes to a contract of agency with a person who is a debtor of another entity of the same class by reason of own operations of an insurance agent, shall be obliged to cancel that debt, without prejudice to its right to compensation.

Article 11. Agent registration.

The insurance companies shall keep a record of their agents, in which they shall record the identifying data of the agents, the registration number, the dates of discharge and discharge, and the authorizations granted to them. in accordance with the provisions of Article 7 (3) and Article 8.

This registration will be subject to the control of the Directorate-General for Insurance.

Article 12. Training of the staff.

1. The insurance institutions shall take the necessary measures for the training of their staff. To this end, they shall establish training programmes setting out the requirements to be met by the insurance agents for which they are intended and the means to be used for their implementation.

2. The documentation relating to the training programmes and the implementation thereof shall be made available to the Directorate-General for Insurance, which may require the necessary modifications to be made to the content of the the programme and the precise means for its organisation and implementation to bring them into line with the training duty referred to in the previous issue of this Article.

Article 13. Administrative responsibility.

Without prejudice to civil, criminal or other liability in respect of which the insurance agent may incur in the course of his business, the insurance institutions with which he or she concluded a contract shall be charged. (a) the infringements of the legislation on mediation in private insurance which would have been committed by such agents.

Section 3. Of the insurance brokers

Article 14. Insurance brokers.

1. Insurance brokers are the natural or legal persons who carry out the commercial activity of mediation in private insurance without maintaining links which involve insurance or loss of independence in respect of such entities and offering impartial professional advice to those who demand the coverage of the risks to which their people, their assets, interests or responsibilities are exposed.

2. The insurance brokers must inform anyone who tries to arrange insurance on the terms of the contract which they agree to subscribe to, offering the cover which, according to their professional criteria, is best suited to the needs of the Member States shall ensure that, in accordance with Article 1 (1) of Directive (EU) No. 1, the Commission shall take into account the requirements of this Directive.

3. They shall also be obliged during the term of the insurance contract in which they have intervened to provide the policyholder, the insured and the insurance beneficiary with the information they claim on any of the terms of the policy and, in the case of disaster, to provide assistance and advice.

4. In all the advertising and documentation of the transfer or commercial traffic of mediation in insurance the expressions or , depending on natural or legal persons, as well as the circumstances of be registered in the Register of the Directorate-General for Insurance, have a civil liability insurance and have been a guarantee in accordance with Article 15 of this Law.

5. The payment of the amount of the premium made by the insurance taker to the broker shall not be understood as being made to the insurance undertaking, unless the broker, in return, gives the insurance taker the premium receipt of the insurance undertaking.

Article 15. Requirements for exercising the insurance brokerage activity.

1.

To carry out the activity of insurance broker it will be necessary to obtain the prior authorization of the Directorate General of Insurance, which will be granted whenever it is credited in the way that the regulations are determined the compliance with the necessary requirements set out in this Law.

2. They shall be necessary for a natural person to obtain and retain such authorization:

a) Being in possession of the

b) Pay bail

constituted at the disposal of the Directorate-General of Insurance in the form of a bank guarantee or to hire insurance in the amounts that are regulated.

(c) Conform a liability insurance with the characteristics and the insured capital that, depending on the turnover and the class of risks, is regulated.

(d) to submit, for approval by the Directorate-General for Insurance, an activity programme indicating the insurance classes and the class of risks in which they are intended to act, as well as the structure of the organisation and the personal and material means of which the programme is to be carried out. It shall also include express reference to the training programme referred to in paragraph (d) of this Article where the corridor is to use the services of employees or employees in accordance with the terms set out in paragraph 3. Number cited.

3. The following shall be necessary for a company to obtain and retain the authorisation to perform insurance brokerage activity:

(a) To be commercial companies whose statutes include, within the section corresponding to social object, the carrying out of activities of insurance brokerage, with expression of submission to the specific legislation of mediation in private insurance. When society is by actions, these will have to be nominative.

You may not hold a holding that directly or indirectly involves the ownership or control of the 15 per 100 or more of the share capital of an insurance brokerage, with the effects in your case of the precept in numbers 2 and 3 of the eighth additional provision of Law 33/1984 of 2 August on the Management of Private Insurance, who, as a result of a criminal case, have been suspended in their functions as the management of insurance or private or separate insurance mediation companies. If the sanction in question were imposed after the acquisition of such participation, they will be deprived of the exercise of the political rights derived from their participation during the time of the sanction.

(b) The directors of such companies shall be persons of recognized commercial and professional repute, and most of them shall have adequate knowledge and experience to perform their duties.

(c) Persons who exercise the technical direction or the equivalent position of the insurance brokerage activity shall be in possession of the diploma of .

(d) Those referred to in paragraphs (b), (c) and (d) of this Article. The programme of activities shall mention the training programme which the company undertakes to apply to persons who, as employees or employees of the company, have to assume a more direct relationship with the employees. potential policyholders and policyholders in the field of counselling and mediation.

4. The application for authorisation must be resolved within six months of the completion of the required documentation and, in any case, within nine months of receipt of the application in the Directorate-General for Insurance. The granting of the authorization will determine the registration in the Special Register of Insurance Brokers, Insurance Broker Companies and their High Charges that will be carried out in the Directorate General of Insurance. It shall determine the acts to be registered in that Register.

Article 16. .

1. The diploma of , whose character and effects will be strictly limited to what is provided for in this Law, will be issued by the Directorate General of Insurance and to obtain it will be necessary:

a) Having legal capacity to exercise commerce.

(b) Not be disabled for the exercise of the insurance brokerage activity nor is it suspended in the management functions of private insurance companies or insurance mediation companies in accordance with the provided for in this Law and in Articles 42 et seq. of Law 33/1984 of 2 August on the Management of Private Insurance.

(c) Having passed a selective aptitude test or training course in private insurance and financial matters for which they have been approved by agreement of the Directorate-General for Insurance or, alternatively, Degree in law, degree in economics and business, degree in administration and business management, degree in economics, insurance actuary or in possession of a university degree corresponding to the first cycle in specific private insurance matters.

2. The Directorate-General for Insurance shall keep a record of the diplomas of which it has issued in accordance with the previous number.

Article 17.

Honorability and experience of the corporate managers exercising the insurance brokerage activity.

For the purposes of point (b) of Article 15 (3):

a) Concurre commercial and professional honorability in those who have been observing a personal trajectory of respect to the commercial laws or others that regulate the economic activity and the life of the business, as well as to the good business, financial and insurance practices.

(b) In any case, they have adequate knowledge and experience who have performed, for a period of not less than two years, senior management, management, control or advisory functions in entities belonging to the financial system, or functions of similar liability in other public or private entities with a similar dimension to that of the company that carries out the business of insurance brokerage or requests authorisation to exercise it.

Article 18. Arrangements for nationals of other Member States of the EEC.

1. For the purposes of the exercise of the insurance brokerage activity by nationals of other Member States of the European Economic Community, the holding of the diploma of the proof of the effective exercise of the insurance broker activity in another Member State under one of the following conditions:

a) For four consecutive years on a self-employed basis or as a manager of an insurance brokerage firm.

(b) For two consecutive years on a self-employed basis or as a manager of an insurance brokerage undertaking, where the applicant proves that he has exercised at least three years at the service of one or more agents or insurance brokers or one or more insurance undertakings, which involve liability in respect of the processing, management and execution of insurance contracts.

(c) For a year on a self-employed basis or as a manager of an insurance brokerage firm, where the applicant proves that he has received, in relation to insurance broker activity, a recognised prior training or approved by the competent State or professional body.

2. The applicant shall be deemed to have pursued an activity as a manager of an undertaking where he has exercised in the insurance brokerage the function of the director of the undertaking or a branch of the undertaking, or the function of deputy to the director or proxy holder. this function will involve a responsibility corresponding to that of the director of the represented company.

3. The activities referred to in the previous two numbers must not have been completed more than ten years before the date of submission of the application.

4. Proof that the conditions set out in the above numbers are met shall be provided by certification issued by the competent authority or body of the home Member State.

5.

Before beginning their activity in Spain, by means of an establishment or without it, the natural or legal persons of other Member States of the EEC shall obtain the authorization provided for in Article 15 (1). compliance with the requirements set out in numbers 2 and 3 of that Article, and be entered in the Register referred to in No 4 of that Article.

Article 19. Revocation of the administrative authorisation.

1. The revocation of the administrative authorization to carry out the activity of insurance brokerage may be agreed by the Directorate-General for Insurance, after having been informed by the person concerned, when any of the Following causes:

(a) For the purpose of leaving the mediation activity in private insurance in the terms described in Article 2 (1) for one year.

Dealing with insurance brokers, natural persons, the period of inactivity to these effects will be suspended whenever a justified cause exists, resuming when such cause has disappeared.

(b) To cease to comply with any of the conditions required for the granting and conservation of the authorization.

(c) For loss of independence in respect of insurance companies which, in accordance with Article 14 of this Law, is a determining factor in the condition of insurance broker.

d) As a penalty.

2. The revocation of the authorization shall give rise to the exclusion of the Special Register provided for in Article 15, number 4. It shall be recorded in the Mercantile Register if the broker is registered in the Register and will be published in the State > and in the Mercantile Register. The Directorate-General for Insurance may carry out the publicity it deems necessary for information from the public when there is a danger that the exercise of the insurance brokerage activity will continue, in contravention of the revocation agreement.

Article 20. Activity without authorisation.

An unauthorised activity of insurance brokerage shall be deemed to be exercised when it is carried out without complying with the requirements laid down in this Law or when, by complying with them, advertising, preparatory activity or mediation (a) to do so in favour of insurance companies that do not have legal requirements to operate in Spain.

Article 21. Contracts for collaboration with insurance brokers.

Insurance brokers and companies carrying out the business of insurance brokerage may conclude business contracts for cooperation with natural or legal persons whose performance they shall be responsible for administratively, in order to use the services of people and distribution networks other than their own.

Section 4.

Incompatibilities of private insurance mediators

Article 22. General scheme.

1. He may not engage in the activity of a private insurance mediator by himself or by a person who is acting or carrying out public or private functions whose authority, jurisdiction or powers of management may coerce the free decision of the the persons concerned in order to secure the insurance or the choice of the insurance undertaking.

2. It shall not be able to carry out the activity of a insurance broker by itself or by an individual who is liable for his or her duties or duties to have limited capacity to provide independent advice in respect of the insurance institutions that are participating. on the market and the different types of policies, covers and prices offered by those to the mandants.

3. In particular, the following natural persons shall be considered as incompatible with the activity as insurance brokers:

(a) Administrators, delegates, directors, managers, general proxies or those who under any title carry the direction of insurance or reinsurance entities, as well as employees thereof.

(b) Insurance or reinsurance agents and administrators, delegates, directors, managers, general proxies or persons under any title shall carry the direction of the companies carrying out the activity of the insurance or reinsurance undertaking. insurance or reinsurance, as well as employees of such agents and agency companies.

(c) Insurance appraisers, breakdown stewards and breakdown liquidators, unless they limit their activity as such to provide services to insured clients.

(d) Administrators, delegates, directors, managers, general proxies or those under any title carry the direction of banks, savings banks, and other credit and financial institutions, as well as employees of the "

Article 23. Incompatibilities in insurance brokerage companies.

1. Where the activity of insurance brokerage is carried out by a legal person, the activity of the insurance or reinsurance undertaking, the insurance or reinsurance undertaking, the insurance or reinsurance undertaking, or the other for the exercise of which it is require exclusive social object.

Nor may it be combined with the assessment of insurance, breakdown or breakdown of breakdowns, unless these activities are carried out exclusively for the advice of policyholders, policyholders or beneficiaries of insurance.

2. Directors, managers, delegates, general proxies or persons under any heading shall have the general direction or the technical direction to which the system of incompatibilities provided for in this Article shall apply in the exercise of that function. Article 22 (3).

3. Companies which are authorised to carry out insurance brokerage activities are in one of the situations referred to in Article 4 (4) of this Article, they must make the existence of the participation prominently significant in its capital or social management in all the advertising and in all the documentation of its spin or commercial traffic of mediation in private insurance.

In any event, the above companies must make express mention in their social demonetisation to the insurance or reinsurance undertaking with which they are directly or indirectly linked by one of the reasons referred to in point (b) of paragraph 4 of this Article.

Likewise, they will be required to make available to potential policyholders and insured the full relationship of those partners who have a significant share in the social capital and detailed information and for the closing of the previous financial year on the percentage distribution between insurance institutions of the total number of insurance contracts in force and the total amount of premiums in which the company has intervened as a mediator.

4. The rules referred to in the preceding number shall apply when the company is in some of the following cases:

(a) The presence of persons in one of the cases referred to in Article 22 (3) may be present in the Board of Directors.

(b) That in its share capital there is significant participation by any of the following natural or legal persons:

Insurance or reinsurance entities.

The natural or legal persons who distribute insurance in favour of one or more insurance or reinsurance entities or reinsurers as agents thereof.

Natural or legal persons who directly or indirectly exercise control over a legal person of the above mentioned in this letter or are controlled by them.

(c) that the company authorised to carry out the business of insurance brokerage is present, in itself or through representatives, in the Board of Directors of an insurance or reinsurance undertaking or has a significant participation in its share capital.

5. The circumstances that have to be met will be indicated in order to understand that there is a significant participation or control situation in the social capital for the purposes of the previous numbers.

Chapter III

Administrative Control Regime

Article 24. Administrative competence and inspection.

1.

The administrative powers concerning the control of the exercise of the activity of an agent or insurance broker shall correspond to the Ministry of Economy and Finance, which shall exercise them through the Directorate-General for Insurance.

Once the insurance brokerage activity has started, the natural and legal persons who exercise it will have at the disposal of the Directorate-General for Insurance detailed information and related to the closure of the previous financial year. the distribution between insurance institutions of the total number of insurance contracts in force and of the total amount and for insurance of the premiums in which they have intervened as mediators.

2. The Inspectorate of the Ministry of Economy and Finance, through the officials of the Higher Corps of State Finance Inspectors, is subject to the Inspection of Insurance and Fund Entities and Pension Plans. exercise the activity defined in Article 2 of this Law. The inspection may cover its legal, technical and economic-financial situation, as well as the conditions under which it carries out its activity, and all of this in general or in relation to particular questions. The inspector shall also be able to carry out operations which may, in principle, be classified as private insurance mediation, in order to verify whether they exercise the activity without complying with the legally established requirements.

3. Inspectors in the performance of their duties shall have the status of an agent of the authority. They shall be bound by the duty of professional secrecy even after the exercise of their public function.

4. Inspectors shall have access to the registered office and to the establishments, premises and offices in which activities are carried out by the company or person inspected; in the case of an address, and in the case of opposition, they shall specify the relevant judicial authorisation and other dependencies of the Director-General of Insurance or the body in which he delegates. They may examine all the documentation relating to their operations, request that they be submitted to them or be submitted to them for the purposes of their incorporation into the minutes, the person or company being obliged to do so and to give them the maximum facilities for the performance of the their role. If the person or company inspected has reasonable grounds, he/she may object to the copy of the documentation, stating his reasons in writing for incorporation into the minutes.

5. They shall form part of the inspection report, for all the purposes, the annexes thereto and the measures extended by the inspector during his/her checking activity.

6. The inspection records which are issued in accordance with the provisions of this Article shall be provided with a presumption of certainty as to the facts reflected therein, unless otherwise proved.

7. The company or person inspected shall have the right to make representations to the inspection report within 15 working days of the notification of the inspection.

Article 25.

Administrative responsibility.

1. Insurance undertakings, as provided for in Article 13, and insurance brokers, are natural or legal persons, as well as those who have administrative or management positions in which they are in breach of rules on mediation in Private insurance will incur administrative liability.

Rules on mediation in private insurance are considered to be covered by this Law and its Rules of Procedure and, in general, those contained in laws and administrative provisions of a general nature containing precepts specifically referred to the mediation in private insurance and obligatory observance for those who participate in such activity.

2. The administrative liability regime shall be in accordance with the following:

(a) The provisions of the preceding number shall apply in full to insurance brokers, whether natural or legal persons, and to those who hold the position of technical director or equivalent to a company exercising the former activity.

(b) To those who are in charge of administration or management of the companies engaged in insurance brokerage activity, the sanctioning regime provided for in Articles 12, 13, 14.2 and 15 of Law 26/1988 of 29 January 1988 shall apply. July, on Discipline and Intervention of Credit Entities.

(c) To the insurance institutions and to those who carry out administration or management positions, the penalties which the commission of very serious, serious or minor infractions provide for the Law 33/1984, of 2, will apply. August, on Private Insurance Management.

Article 26. Infringements.

1. Infringements of private insurance mediation rules are classified as very serious, serious and minor.

2. They will have serious infringements to be considered:

(a) The conduct of acts or operations prohibited by rules on mediation in private insurance with a range of law or with non-compliance with the requirements laid down therein, unless it is of a purely occasional nature or isolated.

(b) Failure to comply with the obligation to submit annual accounts to audit accounts in accordance with the relevant legislation.

c) The refusal or resistance to the performance of the inspector, provided that I measure the express and written requirements in this respect.

d) The execution of fraudulent acts or the use of natural or legal persons brought in with the aim of achieving a result whose direct obtaining would involve the commission of at least one serious infringement.

e) The commission of serious infringement, when during the five years preceding the same one would have been imposed a firm sanction for the same type of infraction.

(f) The repeated non-compliance with the agreements or resolutions emanating from the Directorate-General for Insurance.

g) Co-action in insurance mediation, as well as inaccurate or inappropriate information to policyholders, policyholders, policyholders or insurers, provided that by the number of affected or by the The importance of the information, such non-compliance can be considered particularly relevant.

h) The exercise of the insurance broker activity without meeting the legal conditions, its financial year by person, as well as such interposition.

i) The mediation of insurance in favor of entities not legally authorized to operate in Spain.

(j) the use of the names of insurance agents or other persons liable to mislead them by natural or legal persons who have not concluded an insurance agency contract, and those of the insurance brokers; (a) insurance or other insurance which may lead to confusion by natural or legal persons who are not legally entitled to pursue such activity.

(k) The use by private insurance agents or brokers of names which are reserved for private insurance or reinsurance undertakings or which may lead to confusion with them, without prejudice to Article 10 (1) of this Law.

(l) The performance of abusive practices which prejudice the right of policyholders, insured persons, beneficiaries of policies or insurers, unless such acts are of a purely occasional or isolated nature.

(m) Carage of accounting and of the books and records required in the applicable commercial law and in the rules on mediation in private insurance or the taking of them with essential irregularities that prevent them from knowing the scope and nature of the operations carried out.

n) The lack of referral to the Directorate-General for Insurance of how much data or documents is to be sent or required in the exercise of its functions or the lack of veracity in them when the assessment of the data is difficult the scope and nature of the operations carried out. It shall be understood that there is a lack of referral where the referral does not take place within the time limit granted to the effect by the Directorate-General for Insurance when recalling in writing the obligation or reiterating the requirement.

n) The performance of several insurance agents affected by different insurance entities under conditions such that the joint result of their activities would result in the exercise of an activity appearing as a brokerage insurance.

or) The lack of referral by the insurance broker to the insurer of the quantities delivered by the policyholder to the insurer in respect of payment of the insurance premium when, as provided for in Article 5 (5) 14, such conduct leaves the insured without insurance cover.

p) The delay, to the detriment of the insurer, in the settlement or in the payment of the balances with respect to the terms stipulated between broker and insurer.

3. They will be considered serious infringements:

(a) The mere occasional or isolated conduct of acts or operations prohibited by rules on mediation in private insurance with a range of law, or with non-compliance with the requirements laid down therein.

(b) the performance of acts or operations prohibited by regulatory rules on mediation in private insurance or with non-compliance with the requirements laid down therein, unless it is of a purely occasional nature or isolated.

(c) The execution of fraudulent acts or the use of natural or legal persons brought in for the purpose of achieving a result contrary to the rules of ordination and discipline, provided that such conduct is not referred to in point (d) of the preceding number.

(d) The commission of minor infringement, when during the two years preceding it, a firm sanction not prescribed for the same type of infringement would have been imposed.

e) Failure to comply with the duty of information accuracy when the circumstances referred to in point (g) of the number 2 are not met.

f) The merely occasional or isolated performance of abusive practices that harm the right of policyholders, policyholders, beneficiaries of policies or insurers.

g) The lack of referral to the Directorate-General for Insurance of any data or documents should be referred to or required in the performance of their duties or the lack of veracity thereof, unless this is the result of the Commission very serious infringement in accordance with point 2 (n). For the purposes of this letter, it shall be understood that there is a lack of referral where the reference does not take place within the time limit granted to the effect by the Directorate-General for Insurance when recalling in writing the obligation or reiterating the requirement.

(h) The irregular conduct of the books and records required in the applicable commercial law and the rules on private insurance mediation when the special circumstances provided for in point (m) are not met.

of the number 2.

4. Minor infringements shall be taken into account in respect of non-compliance with mandatory requirements for insurance agents or brokers who are covered by rules on private insurance mediation which do not constitute a serious or very serious infringement with to the provisions of this Article's numbers 2 and 3.

Article 27. Sanctions.

1.

For the commission of very serious infractions, one of the following sanctions will be imposed:

a) Multa, amounting to up to five million pesetas.

(b) Suspension for a maximum period of 10 years for the exercise of the insurance broker business.

c) Revocation of the authorization for the exercise of the insurance brokerage activity and cancellation of the registration in the Register.

The penalty provided for in point (a) may be imposed at the same time as (b) or (c).

2. For the commission of serious infringements one of the following sanctions shall be imposed:

a) Public assembly.

b) Multa in the amount of up to 2.5 million pesetas.

(c) Suspension for a maximum period of one year for the exercise of the activity of insurance broker.

The penalty provided for in point (c) may be imposed at the same time as the penalty provided for in point (b).

3. For the commission of minor infractions one of the following sanctions will be imposed:

a) Private assembly.

b) Multa for up to one million pesetas.

Article 28. Procedure and jurisdiction in matters of sanctions.

1. The procedure laid down in Articles 133 et seq. of the Law on Administrative Procedure of 17 July 1958, in accordance with the principles of Article 2 and with the provisions of Article 2, shall be followed for the imposition of the penalties provided for in this Law. (a) the provisions of Articles 19 to 27, both inclusive, all of them of Law 26/1988 of 29 July, on Discipline and Intervention of Credit Entities, understood as referring to the insurance brokers and the Directorate General of Insurance the particulars contained in the same to the credit institutions and the Banco de España.

2. The competence for the instruction of the sanctioning files and for the imposition of the corresponding penalties shall be governed by the following rules:

(a) The Directorate-General for Insurance shall be responsible for the instruction of the files.

(b) The imposition of penalties for serious and minor infringements shall be the responsibility of the Director-General of Insurance.

c) The imposition of penalties for very serious infringements shall be the responsibility of the Minister for Economic Affairs and Finance on a proposal from the Directorate-General for Insurance.

Article 29.

Prescription of violations and penalties.

1. Very serious and serious infractions will be prescribed at five years, and mild to two years.

2. In both cases the limitation period shall be counted from the date on which the infringement was committed. In the case of infringements resulting from continued activity, the initial date of the calculation shall be the date of completion of the activity or of the last act with which the infringement is consumed.

3. The limitation period shall be interrupted by the initiation, with the knowledge of the person concerned, of the sanctioning procedure, returning to the time limit if the file remained paralyzed for six months for reasons not attributable to those against whom direction.

4. Penalties for very serious and serious infringements will be prescribed at five years and penalties for minor offences at two years.

Article 30. Precautionary measures.

When a sanctioning procedure is initiated, irrespective of the sanction which, in its cso, will result, both in the opening agreement and during its processing, the Directorate-General for Insurance will be able to take the insurance broker some of the precautionary measures provided for in Article 42 of Law 33/1984 of 2 August on the Management of Private Insurance, provided that, in accordance with the facts and the special characteristics of the brokerage activity of insurance, could contribute to the cure or avoid worsening of the situation it would have been a cause or result of the acts referred to in the sanctioning procedure.

Chapter IV

From the College of Insurance Mediators Titled

Article 31. Colleges of Insurance Mediators Titled.

1. The Colleges of Insurance Mediators are corporations governed by public law, with legal personality and full capacity to act for the fulfillment of their purposes, to which the natural persons who voluntarily wish to do so will be incorporated, provided that they are in possession of the .

2. The representation of such activity, without prejudice to the right of association enshrined in the Constitution, and the defense of the corporate interests of the collegiate, are essential purposes of the Colleges of Insurance Mediators.

3. The Colleges of Insurance Mediators Entitled are related to the State Administration through the Directorate General of Insurance.

4. The person who holds the diploma of and meets the conditions stated in the statutes shall have the right to be admitted to the appropriate College.

5. In no case shall it be necessary for the exercise of the activity of a insurance broker to be incorporated in any of the Colleges of Insurance Mediators Titled, regardless of the territorial scope in which the profession is intended to be exercised.

6. The Colleges of Insurance Mediators, Titled, have a provincial territorial scope and there will be a General Council of national scope to which they correspond, in addition to the ones attributed by the legislation in force, the following functions:

(a) The organization of the selective aptitude tests for obtaining the diploma of . In this case the General Directorate of Insurance is responsible for the approval of such selective tests, as the supervision, with the collaboration of the competent Autonomous Communities, of the conclusion of the same by the designation of representatives in the courts that judge them, if it considers it appropriate.

(b) The issue of the report prior to the approval by the Directorate-General for Insurance of the training courses in financial and private insurance courses organised by the private institutions for obtaining the diploma of , as well as the supervision of these courses, either by the appointment of representatives in the corresponding Courts when the General Directorate of Insurance is determined, or through appropriate complaints to this of the deviations in the course of the course with respect to the conditions in which granted the approval.

The Autonomous Communities which have jurisdiction in this field may, in charge of their own resources, regulate the creation, merger and extinction of Colleges of Insurance Mediators. of its own territorial scope, with respect in any case to what is established in this Law and to the competence field of the local entities.

Additional disposition first. Basic legislation.

One. For the purposes of Article 149.1.11. of the Constitution, the provisions contained in this Law are considered as bases for the ordination of private insurance. The provisions of Article 15 (4) and Article 16 (2) shall be exempt from the provisions of Article 16.

Two. The jurisdiction of the Autonomous Communities referred to in Article 39 (2) of Law No 33/1984 of 2 August on the Management of Private Insurance is to be understood as circumscribed in the case of insurance intermediaries and the Insurance Intermediaries, to those whose domicile and scope of operations are limited to the territory of the Community.

Three. In the cases of the preceding number and in accordance with the provisions of Article 149.1.11. of the Constitution, references to the organs of the State Administration shall be construed as facts to the competent body of the Community. Autonomous, the granting of the administrative authorization for the exercise of the activity of insurance brokerage and its revocation is reserved in any case to the State.

Additional provision second. Validating the title of .

The title of regulated in the legislation to be repealed will take the effects of the diploma of provided for in Article 16 of this Law.

Consequently, the securities entered in the deleted register of private insurance intermediaries governed by Article 40 of Law 33/1984 of 2 August on the Management of Private Insurance, as amended by that provision Article 1 of Law 21/1990 of 19 December 1990 to bring Spanish law into line with Directive 88 /357/EEC on the freedom of services in insurance other than life and the updating of private insurance legislation registered in the Register referred to in Article 16 (2).

Additional provision third. Transformation of the Colleges of Agents and Brokers of Insurance and of its General Council.

One.

The Colleges of Insurance Agents and Brokers and their General Council are transformed, with the same territorial scope but with a change of denomination, in the Colleges of Insurance Mediators Titled and its General Council, respectively.

Two. The transformation thus effected will not change the legal personality of the entities concerned, which will continue to remain in the new form with all their rights and obligations, continuing in the ownership of their patrimony and maintaining all their legal relations.

Three. The General Statutes of the Colleges and the General Council and the Statutes of the Colleges shall be adapted to the provisions of this Law within the maximum period of one year from its entry into force. In the meantime, they shall remain to the extent that they do not object to the provisions of this Law.

Four. The current governing bodies of the Colleges and the General Council will continue as such governing bodies at the entry into force of this Law. Once the Statutes referred to in the previous number have been approved, democratic elections shall be held for the constitution of the governing bodies in accordance with the new Statutes within the maximum period of three months from such approval.

Additional provision fourth. Supplementary legislation.

As not provided for in this Law, it will be applied in a supplementary manner to Law 33/1984, of 2 August, on the Management of Private Insurance and as regards the insurance brokers the precepts that the Code of Commerce dedicates to the mercantile commission.

Additional provision fifth. Amendments to the Law on Private Insurance Management.

Articles 2., 2.e), 3., c), second paragraph, 3., d), 4., 1.d), 37.6, 39.2, 40, 43.3.f), 43.5 and 48.1 of Law 33/1984 of 2 August on the Management of Private Insurance are given new wording; a second subparagraph is added to the Article 3 (c), point (e) to Article 43.4 and Article 44 (3), and the wording of the additional first paragraph, second paragraph, of Law 26/1988 of 29 July on Discipline and Intervention of the Entities of the European Communities is amended. Credit.

One. Article 2. (2): .

Two. Article 3. (c), second subparagraph:

Three. Article 3., (d): .

Four. Article 4 (1) (d): .

Five. Article 37.6: . Reinsurance entities may not extend their management close to policyholders or policyholders >.

Six. Article 39.2:

Seven. Article 40:

.

Eight. Article 43 (3) (f): .

Nine. Article 43 (4) (e): .

Ten. Article 43.5: .

Once. Article 4 (3): The penalties for serious and very serious infringements shall be imposed at five years and the penalties for minor offences shall be imposed at two years.

Twelve.

Article 48.1:

Thirteen. First, second paragraph of Law No 26/1988: 'Insurance appraisers, fault commissars and breakdown liquidators who carry out the duties of a third party provided for in Article 38 of Law 50/1980 of 8 May 1980', October, the Insurance Contract will be subject to the regime of violations and penalties established in the Law on the Mediation of Private Insurance.

The same scheme will apply to insurance actuaries and authorized entities for the valuation of goods on the mortgage market that underwrite the documents, reports and opinions provided for in Law 33/1984, 2 of August, on the Management of Private Insurance, in Law 8/1987, of 8 June, of Plans and Funds of Pensions, and in the supplementary provisions of both, having regard to serious infraction the lack of veracity in the same.

When the lack of veracity makes it difficult to assess the solvency of the entity or the adequacy of the accounting, financial or actuarial calculations contained in those documents, it will be of a very serious nature.

First transient disposition. Adaptation of insurance agents.

One. Insurance agents, natural or legal persons, shall adapt their advertising and documentation to the provisions of Article 10 (1) within six months of the date of entry into force of this Law.

Two. Agency contracts which had been concluded before the date of entry into force of this Law and the content of which does not comply with Article 7 (3). and to Article 9 (1).

should be adapted to them within one year from that date.

Second transient disposition. Adaptation of insurance brokers.

One. Natural or legal persons who, on the date of entry into force of this Law, have legally exercised the activity of insurance brokerage under the previous legislation, must adapt to the provisions of this Law within the period prescribed by the law. of one year from that date.

Two. In the same period they must prove to the Directorate General of Insurance that they meet the requirements of Article 15 of this Law for the granting and the preservation of the administrative authorization to exercise the activity of brokerage insurance, by submitting the relevant evidence, with the exception of the programme of activities referred to in point (d) of numbers 2 and 3 of that Article.

Three. On the expiry of that period, it shall be understood that those who have not been accredited as having adapted to this Law in accordance with the preceding paragraph are in the situation provided for in Article 20 of the Law and shall proceed with their discharge from the Registry of the Directorate-General. General of Insurance.

Transitional provision third. Provisional rules on the requirements for the exercise of insurance brokerage activity.

Until such time as the government has established the rules that would have to be given in order to develop this Law, it will apply to insurance brokers and to companies that carry out the activity of brokerage companies. insurance the following:

(a) The amount of the guarantee or the security insurance shall be equal to twice the average monthly amount of the funds entrusted to the insurance broker by the insurance policyholders in respect of insurance premiums and by the institutions. insurance for claims, and at least 10,000,000 pesetas. The calculation of the average amount shall be carried out and updated on the funds corresponding to the 12 months preceding the year in which the security is lodged and shall be updated each year, not being able to calculate the funds received from and for an institution. the insurance company that would have entrusted the broker with the management of the collection of the premium receipts and the payment of the claims.

(b) The liability insurance shall have a minimum guarantee of 200,000,000 pesetas per claim and year with a maximum loss allowance of 20 per 100 of the compensation, and shall cover the claims incurred during the period in which the insurance broker is active, even if it becomes apparent after the cessation of activities.

(c) For the purposes of Article 23, it shall be understood that there is control of a company dominated by another parent when one of the circumstances provided for in Article 4 of Law 24/1988 of 28 July 1988 is present. of the Stock Market.

(d) For the purposes of Article 23, it shall be understood that there is significant participation in the share capital where such participation is equal to or greater than 15 per 100 or where it is present in the Council of Administration.

Transitional disposition fourth. Selective testing and training courses.

One. For the purposes of obtaining the diploma of by means of the overcoming of selective tests or training courses, only the tests or courses approved by agreement of the General Directorate of Insurance shall be admissible. (a) a date after the entry into force of this Law.

Two. By way of derogation, the approved courses provided for in the previous repealed legislation, the impartition of which was initiated at the date of entry into force of this Law, shall continue until the examinations are held in accordance with the provisions of this Law. those rules and those who exceed them will obtain the diploma of that will entitle them, after complying with the other conditions laid down in this Law and obtaining the consequent administrative authorization, to exercise the insurance brokerage activity.

Three. The provisions of the preceding number shall apply to the aptitude tests which, where appropriate, have been convened by the Directorate-General for Insurance and are pending for the purposes of conclusion or qualification.

Transient disposition fifth. Acquired rights to the collegiation of agents and insurance brokers.

One. Those persons who at the date of entry into force of this Law were in possession of the title of and belonged to the Colleges provided for in the repealed legislation shall remain incorporated, except in express, to the respective Colleges of Insurance Mediators Titled in accordance with Article 31 of this Law.

Two. Those persons who are not in possession of the title of are incorporated into the Colleges provided for in the legislation repealed at the date of entry into force of this Law may remain in such situation, but without the character of electors, if within three months of the entry into force of this Law they do not choose to apply for the discharge in the College to which they belong.

All without prejudice to the right to cease to belong to the College at the time when it deems it appropriate.

Transitional disposition sixth.

Rights regime acquired.

The rights born, under such legislation, of acts performed under his or her regime, as well as the acts and contracts concluded under the law, shall be governed by the laws before this Law. transitional provisions of the Civil Code, without prejudice to compliance with the provisions of the number two of the first transitional provision.

Transitional disposition seventh. Adaptation of insurance institutions.

Insurance institutions shall comply with the provisions of Articles 11 and 12 within six months of the date of entry into force of this Law.

Repeal provision.

The following provisions are repealed:

One. The Law of the Production of Private Insurance, recast text approved by Royal Decree 1347/1985, of August 1, with the modifications introduced by the articulated text approved by Royal Legislative Decree 1300/1986, of June 28, and by Article 5. of Law 21/1990 of 19 December 1990 to adapt Spanish law to Directive 88 /357/EEC on the freedom of services in insurance other than life, and to update private insurance legislation.

Two. The additional first provision, number five, of Law 26/1988, of July 29, on Discipline and Intervention of Credit Entities.

Three. The first paragraph of Article 21 of Law 50/1980 of 8 October of Insurance Contract.

Four. The Private Insurance Production Regulation, approved by Royal Decree 690/1988 of 24 June.

Five. And, in general, how many provisions of equal or lower rank are opposed to the provisions of this Law.

Final disposition first.

Regulatory development.

The Government, on the proposal of the Minister of Economy and Finance, and in the field of its powers, is authorized to develop the precepts of this Law.

Final disposition second. Entry into force.

This Law shall enter into force on the day following that of its publication in the Official Journal of the State.

Therefore,

I command all Spaniards, individuals and authorities, to keep and keep this Law.

Madrid, 30 April 1992.

JOHN CARLOS R.

The President of the Government,

FELIPE GONZÁLEZ MARQUEZ