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:

EXPLANATORY STATEMENT

The introduction of freedom to provide services of insurance other than life in the European Economic Community must be implemented in the Member States by the requirement of Directive 88 /357/EEC, adopted on 22 March. June 1988.

Transposing to Spanish law this Community standard requires the modification of three sets of internal provisions. Firstly, it is necessary to adapt Law 33/1984 of 2 August on the Management of Private Insurance, which is, of course, the legal standard to which the introduction of such freedom of services is affected to a greater extent. It is necessary to collect two types of amendments which the Directive requires and which demonstrate the technical complexity of the Directive. Community law on the establishment of insurers in Member States other than those of their registered office is altered in certain respects as a result of the introduction of freedom of services. This is the case for the discipline of portfolio disposals, which is part of the legislation on the control of insurers, but which, in a Community market immersed in the freedom of services, is inexcusable to review; it is It is necessary to provide for the possibility of transfers between establishments located in different States and which also include risk contracts in a third Member State.

The rules of control must also introduce the specialities of the so-called "big risks" and justify the transitional periods which are recognised in Spain by Directive 88 /357/EEC. This type of risk is placed under an administrative control which in some respects, and by the requirement of such a Community standard, is made more flexible in view of the particular character of the policyholders.

But the greatest number of amendments on Law 33/1984, of 2 August, is imposed by the implementation of the freedom of services, which requires the extension, as appropriate, of the administrative control regime until now limited to insurers established in Spain, to those operating in Spain from the rest of the European Economic Community. The Law on the Management of Private Insurance has to extend its scope in a double sense: In terms of the operations to which it is subject, because its ordination goes on to refer also to other-hitherto illegal-concerted on risks in Spain with Insurers not established in our country. And from a subjective point of view, in terms of the businessmen who are subject to the control of the Spanish authorities, which are not exclusively the nationals and the delegations of the foreigners, but also, to some extent, those who operate in Spain from other States of the Community.

It is clear, therefore, that a considerable number of articles of Law 33/1984, of 2 August, on the Management of Private Insurance, must be adapted to the new situation, so that they are applicable to operations of the same and businessmen who practice them. It is, moreover, indispensable, specifically regulating the insurance made in freedom of services, for which a new Chapter of the Law has been enabled, followed by another one, dedicated to the community coinsurance.

Finally, the currency in which the insurer's commitments against the insured person are to be legally determined must be determined. These rules are incorporated into a new Additional Provision of Law 33/1984 of 2 August.

There are also other types of legal provisions that need to be modified to meet the requirements of Directive 88 /357/EEC. It is necessary to ensure that the parties to the insurance contract are entitled to opt in certain cases for the contract law applicable to the policy of the possibilities which the rule regulates. This requires the translation of these possibilities of option into Law 50/1980, of 8 October, of a contract of insurance, giving it, moreover, of a rules of Private International Law which, in the future, are made indispensable.

The concept of big risks has relevance in contract law. If in them the taker does not require a special protection by the Law or the administrative authorities, and taking into account the new scale of concurrency in which the insurance market has to be unwrapped from now, it is convenient to provide In the light of the great risks, the market is more free to hire, placing the principle of autonomy of the will in preference, as the Spanish legislator acknowledged to the maritime insurance by not repealing the articles 737 et seq. of the Code of Commerce, on the occasion of the promulgation of Law 50/1980 of 8 October.

Finally, it is also necessary to provide a new Legal Statute to the Consortium of Insurance Compensation that has already been required in terms of its legal nature by the modification operated by the Royal Legislative Decree 1255/1986, Article 4 (2) and (3) of Law No 33/1984 to bring it into line with the commitments resulting from the Treaty of Accession of Spain to the European Economic Community, and which is inexcusable in requiring the Treaty to be lost monopolistic character in the principal of its functions, which is linked to the risks extraordinary.

This Law basically follows the technique of modifying the existing ones, consisting of its rules in so many other mandates to change or to add the corresponding provisions in the Laws 33/1984, of 2 August, and 50/1980, of 8 October, and provide the Insurance Compensation Consortium with a single rule with a range of law, all in order to avoid regulatory dispersion and consequent difficulties of interpretation.

This Law contains further amendments to the Directive on the Management of Private Insurance, which are due to the transposition of Directive 87 /343/EEC of 22 June 1987 on credit and security insurance, which requires the raising of the guarantee fund in the first one, also the transposition of Directive 87 /344/EEC of 22 June, on the coordination of laws, regulations and administrative provisions relating to legal protection insurance, to the reception of the doctrine of the Constitutional Court in its judgment 86/1989 of 11 May 1989 and the need for amend certain articles of Law 33/1984 to bring them into line with the experience gained from the publication of the Act.

The amendments introduced in Law 33/1984 of 2 August, the new ones introduced in the sanctioning matter by Law 26/1988, of July 29, on Discipline and Intervention of the Entities of Credit and the experience Accumulated in the field of control of professional mediation in the field of private insurance make it advisable to introduce certain modifications in the recast text of the Law of the Law of the Production of Private Insurance approved by Royal Decree Legislative 1347/1985 of 1 August.

Therefore, and in addition to the Additional, Transitional, Repeal and Final Provisions, it is structured in six articles, successively referred to the amendments of Law 33/1984, the first; to the additions to the Law 33/1984, the second; to the amendment of Law 50/1980, regarding the introduction of the rules of Private International Law, the third; to the Legal Statute of the Consortium of Insurance Compensation, the fourth; to the modifications of the Law of the Private insurance production, the fifth; and finally, the introduction of the contract of legal defense insurance in Law 50/1980, the sixth.

Article first.

The articles below are expressed in Law 33/1984 of 2 August on the Management of Private Insurance, with the amendments introduced by the Royal Decree of Law 1255/1986 of 6 June, and by Law 26/1988, of July 29, on Discipline and Intervention of the Credit Entities are modified as follows:

One. Article 2 ("Operations submitted") takes the following wording:

" Article 2. Operations submitted.

They are subject to the provisions of this Law, in so far as they are applicable to them and according to their characteristics:

1. Insurance and reinsurance operations carried out by Spanish insurers or by delegations in Spain of foreign entities, as well as those carried out on risks located in Spain.

2. The following operations provided that they are or are to be met in Spain:

(a) Capitalization operations based on actuarial techniques, which consist of obtaining specific commitments as to their duration and their amount, in exchange for single or previously fixed disbursements.

b) The preparatory or complementary activities of the insurance or capitalization that the Entities of this class practice in their channelling function of the savings and the investment, as well as their activities of prevention of damages.

c) The management operations of collective retirement funds that consist of managing investments and especially the representative assets of the reserves of entities that provide benefits in the event of death, in the case of life or invalidity, where a guarantee of insurance relating to the conservation of the capital or to a minimum interest is met.

(d) Mediation activities in insurance, reinsurance and capitalization contracts, without prejudice to the provisions of their specific legislation.

e) The activities of the Insurance Tasers and the Commissioners and the Breakdown Liquidators, without prejudice to the provisions of their specific legislation. "

Two. Article 2 is deleted.

Three. Paragraph "(b)" of the Article shall be deleted. 3. and given to paragraph "c)" the following wording:

" (c) Contracts of participating accounts, the exercise of any industry or activity and the acceptance of liabilities or the granting of guarantees or guarantees other than those of the insurance business, except which have been authorised by the Ministry of Economic Affairs and Finance and, where appropriate, by the competent ministries. '

Four. The wording of paragraph 1 (a) of Article 4 (1) ("Entities and persons subject to the provisions of this Law") is replaced and a paragraph 4 is added to that Article:

" (a) Those who practice the operations or activities referred to in Article 2, as well as the organisations incorporated with a stay for the distribution of the risk cover or the provision to the common service insurers related to the insurance business, whatever their legal configuration.

4. Without prejudice to the submission to this Law, the entities operating in the health care branch shall be subject to their health care activity, if they are carried out directly, in accordance with the provisions of the health legislation. corresponding. "

Five. Article 5 is worded as follows:

" Article 5. Reciprocity.

When in fact or in law in the countries of origin of the Entities or persons subject to this Law, the Spanish are required to have greater guarantees or requirements than to the nationals or to be recognized lesser rights, the Ministry The Economic and Finance Committee may, on the basis of reciprocity, establish other equivalent conditions in its terms or in its effects for those of the country concerned.

Reciprocity shall not apply to insurers and reinsurers whose registered office is situated in the territory of the European Economic Community. "

Six. The current wording of the name of Chapter II is replaced by the following:

" CHAPTER II

Conditions for access to the insurance activity by means of establishment in Spain "

Seven. The wording of Article 6 (1) is

:

" 1. The Entities that intend to carry out operations under this Law by means of establishment located in Spain must obtain the corresponding authorization from the Ministry of Economy and Finance as a prerequisite and indispensable for shall be exercised, provided that the requirements laid down in this Law and in its Rules of Procedure are met. Such authorisation shall be granted by classes and, at the request of the Entities concerned, may be extended to the whole of the national territory or to a smaller area. "

Eight. Article 7 is worded as follows:

" Article 7. Nature of the Insurance Entities.

Without prejudice to the provisions of Chapters X and XI, the insurance activity may be exercised only by private entities that adopt the form of a public limited liability company, a fixed-premium mutual company, a mutual premium company variable, Montepio or Mutual Social Welfare, Cooperative Society and the Delegations provided for in Article 12. The self-governing bodies and entities that adopt any of the aforementioned legal forms, in which the participation of the public authorities or their bodies is majority, may also be carried out by the insurance business. directly or indirectly. "

Nine. New wording is given to Article 9. º:

" Article 9. Name.

In the name of the insurance companies domiciled in Spain, the words "insurance", "reinsurance" or both, according to their social object, shall be included, and the same words shall be reserved exclusively for those Entities. Mutual and Cooperative Societies shall record their nature in the name and indicate whether they are at 'premium, fixed' or 'variable premium'. '

Ten. The wording of Article 11 (1) and Article 11 (2) (b) is

.

" 1. Administrators, Delegates, Directors and Managers, general proxies or those who under any title carry the direction of the Company shall be natural persons of recognized commercial and professional repute with knowledge and experience appropriate to carry out their duties and shall be registered in the Register referred to in Article 40.

2. (b) Those who, as a result of a sanctioning file, have been suspended in the exercise of the office or separated from it in the terms of Article 44.1. "

Once. New wording is given to Article 16 (3

:

" Article 16.

3. In the provision of risks to persons, the contingencies which they may cover are those of death, old age, accident or invalidity for work, widower and orphan's, in the form of capital or income, allowances for marriage, children, maternity, sickness, death and family assistance motivated by legal acts or acts which temporarily prevent the exercise of the profession; they may also carry out insurance operations for the provision of services in any of its forms, such as assistance health and legal protection.

The economic benefits that will be guaranteed will not exceed 1,600,000 pesetas as an annual income or of 6,500,000 pesetas as a single perception of capital, limits that will be updated periodically by the government, on a proposal of the Ministry of Economy and Finance. "

Twelve. The text of the name of Chapter V is read as follows:

" CHAPTER V

Conditions for the exercise of the insurance activity by means of establishment in Spain "

Thirteen. The wording of Article 23 (2) and (4) is

:

" 2. The content of the policies that cover risks located in Spain other than those defined in Article 52. of this Law must conform to the same and to the Law of Contract of Insurance. The content of the policies to cover the risks defined in that Article 52 shall be subject to the same scheme, in the absence of a pact.

4. The models of policies, technical bases and premium rates will not require prior administrative approval, but must be at the disposal of the Ministry of Economy and Finance before use in the form and in advance. Regulation is established. However, such administrative approval shall be required where the initial authorisation or the authorisation to extend the activity to new classes is requested.

In the case of major risks, the Ministry of Economy and Finance may only require the non-systematic communication of the contractual and technical documentation used, unless the Entity intends to cover the risks of the (a)

laws of the Member States of the European Commission and of the European Commission of the European States of the European

Fourteen. The wording of Article 24 (2) is

:

" 2. Technical provisions shall be invested in the assets to be determined by the Regulation in accordance with the principles of consistency, security, liquidity and profitability. That Regulation shall indicate the distribution, the limits and conditions to be met by the investments and the criteria for their valuation for the purposes of the coverage of technical provisions. The government may regulate the rules and limits for compliance with the principle of monetary congruence. "

Fifteen. The wording of Article 25 (2) is

:

" 2. The third part of the minimum amount of the solvency margin, fixed in accordance with the preceding number, constitutes the guarantee fund, which may not be less than the equivalent in pesetas of 800,000, 400,000, 300,000 and 200,000 ECU for the operate, respectively, in the classes falling within the first to fourth groups provided for in Article 10 (2

.

However, for the entities operating in the credit field, and the annual volume of premiums or shares issued in that class for each of the last three financial years exceeds the equivalent in pesetas of 2,500,000 ECU or 4%. 100 of the total amount of premiums or contributions issued by that undertaking, the guarantee fund may not be less than the equivalent in pesetas of 1,400,000 ECU, and the time limits for the eligibility of the institutions shall be regulated. achieve the above minimum.

For entities carrying out the activity provided for in the fifth group of Article 10 (2), the guarantee fund may not be less than 125,000,000 pesetas. "

Sixteen. New wording is given to Article 27. º:

" Article 27. Disposal of portfolio.

1. The insurance institutions established in Spain may transfer the whole of the insurance contracts in force which integrate the portfolio of one or more branches in which they operate, except for the mutual and co-operating companies at fixed premium and to variable premium, which may only acquire the portfolios of companies of the same class, according to the following:

(a) The general assignment of one or more branches shall not be the cause of the resolution of the transferred insurance contracts except in the case of mutual societies and cooperatives at variable premium.

(b) The transferee shall exceed the solvency margin established in accordance with Article 25 after the transfer.

(c) The transfer shall require the approval of the Ministry of Economy and Finance, prior to public information in which the insured may express, where appropriate, the reasons for their disagreement. It will be formalized in public writing that will be entered in the corresponding Records.

Where the portfolio to be ceded includes risk contracts located in another Member State of the European Economic Community, authorisation shall be granted only if the agreement of the control authority of that State is met. and if the transferee complies in that State with the conditions necessary to cover risks under the provision of services.

(d) In relation to the existing working relations at the time of the transfer, the provisions of Article 44 of the Staff Regulations shall be made.

e) Partial portfolio disposals of a branch will also be allowed in cases determined by the Regulation, but then the policyholders will be able to resolve the insurance contracts.

2. Insurance institutions established in Spain may transfer, in whole or in part, their portfolio of insurance contracts to an establishment located in another Member State of the European Economic Community. In such cases, the policyholders may terminate their contracts within the time limit laid down in the Regulation.

Such operations shall be subject to the provisions of paragraphs (b), (c) and (d) of paragraph 1 of this Article.

3. Where the insurance portfolio is transferred to an establishment situated in another Member State of the European Economic Community and includes risks located in a third Member State, it shall be necessary, in addition to the requirements referred to in Article 1 (1) of Directive (b), (c) and (d) of the first paragraph of this Article, that the law of the latter State provides for the possibility of such a transfer, as well as the conformity of the authorities of the transferee establishment.

4. The Ministry of Economic Affairs and Finance shall give its conformity to the transfer of portfolio on risks situated in Spain between establishments located in the rest of the European Economic Community, where the transferee meets the necessary conditions for cover risks in Spain under the provision of services.

5. Where the disposal of the portfolio affects risks situated in Spain, the risk shall be advertised in the form laid down in regulation. "

seventeen. The following paragraph is added to Article

:

" Article 31. Settlement:

9. The obligations arising out of contracts entered into under the provision of services shall be carried out in the same way as the obligations arising out of the other insurance contracts of the Entities, without distinction as to the nationality of the policyholders, policyholders and beneficiaries. "

Eighteen. New wording is given to Article 40. º:

" Article 40. Special Registration.

The Ministry of Economy and Finance will carry a Special Register of the Entities under this Law. It will also keep records of private insurance intermediaries, insurance appraisers, breakdown commissioners, breakdown liquidators and senior officials of the entities and organizations of the insurance companies. risk sharing in co-insurance or the provision of common services. The Records will be public. "

nineteen. New wording is given to Article 41. º:

" Article 41. Insurance in the European Economic Community and in third countries.

1. Vessels, aircraft and vehicles registered or registered in Spain and goods of any kind located on Spanish territory shall not be secured abroad, with the sole exception of goods under international transport. The Spanish residents of Spain as regards their persons or their responsibilities, unless they are on an international trip and for the duration of the trip, will also not be able to secure abroad. However, the Minister for Economic Affairs and Finance may authorise the insurance abroad of goods, persons and liabilities on an exceptional basis and for specific operations.

2. It is also prohibited to stipulate in Spain direct insurance operations with foreign entities that are not legally established in Spain or to do so with insurance intermediaries or representatives working for them.

3. By way of derogation from the above numbers, risks located in Spain may be secured with establishments located in the rest of the European Economic Community of Entities whose registered office is located within the European Economic Community in terms of point out in Chapters X and XI of this Law.

4. The Government, acting on a proposal from the Ministry of Economic Affairs and Finance, may authorise and regulate the hiring of foreign-currency insurance, as well as the reinsurance of such operations, with application of the technical provisions of the principle of congruence monetary. "

Twenty. The wording of the heading in paragraph 1 is amended and point (h) of the paragraph is added and Article 42 (2) (f) is

:

" 1. The Ministry of Economy and Finance may adopt the precautionary measures contained in this Article where the insurance institutions, including those covering risks situated in Spain under the provision of services, are in some Member State. of the following situations:

h) When any of the situations provided for in Article 63 of this Law are provided.

2. (f) prohibit the exercise of the insurance activity abroad, when it is appreciated that this contributes to the situation which has led to the adoption of precautionary measures. "

Twenty-one. The wording of paragraph 1 is amended, and point (h) of paragraph 3 (d) is added and paragraph 5 is amended, all of them in the article. 43. º:

" 1. Insurance Entities, including those covering risks located in Spain under the provision of services, the delegations established in Spain by foreign insurance entities, as well as those who hold office or In the case of the Commission, the Court of the Court of State held that the Court of State held that the Court of State held that the Court of Rules for the use of private insurance are considered to be those covered by this Law and in its rules of procedure and, in general, those contained in laws and administrative provisions of a general nature which contain provisions specifically relating to the Insurance Entities and the obligation to observe them.

3. (h) Retain unduly, not entering them within the time limit, premiums and surcharges collected from insured persons in favour of the Insurance Compensation Consortium.

4. d) Not to collect legally enforceable premiums and surcharges in favor of the Insurance Compensation Consortium.

5. They shall be regarded as minor infringements of the defect in the calculation or insufficiency of investments for the coverage of technical provisions at a level of less than 5 per 100, and in general, infringements of mandatory requirements. for Insurance Entities included in private insurance management rules which do not constitute a serious or very serious infringement in accordance with the provisions of the two preceding numbers. '

Twenty-two. The wording of Article 44 (1) is

:

" 1. The penalties applicable for the offences referred to in the previous Article to the Insurance Entities and to those who are in charge of administration or management shall be those provided for in Articles 9, 10, 11, 12 and 13 of the Law. on Discipline and Intervention of Credit Entities, with the exception of the collection in Article 10 (b) of the said Law. In the case of entities operating in Spain without establishment, the penalty of Article 9 (b) shall be extended to the prohibition of continuing to operate in Spain under the provision of services. The criteria laid down in Article 14. shall be taken into account for the purposes of the graduation of the penalties. "

Twenty-three. New wording is given to Article 46. º:

" Article 46. The Insurance Inspectorate.

1. The Inspectorate of the Ministry of Economy and Finance, through the Higher Corps of State Finance Inspectors, a specialty of the Inspection of Insurance and Fund Entities and Pension Plans, are subject to the Inspection of the Ministry of Economy and Finance. (a) the legal, technical and economic situation, as well as the conditions under which they are carried out, and all of them in general or in relation to the conditions under which they are carried out; certain issues.

The companies that are presumed to form a group with an insurance entity are also subject to this Inspection for the purposes of determining their impact on the legal, financial and economic situation of the Insurance Entity.

The inspector will also reach those who perform operations that can, in principle, qualify as insurance, to check whether they exercise the activity without prior administrative authorization.

2. The Inspectors, in the performance of their duties, shall have the status of Agent of the Authority. They shall be bound by the obligation of professional secrecy, even after the exercise of their public function.

3. The inspectors shall have access to the registered office and to the establishments, premises and offices in which activities are carried out by the Entity or person inspected; in the case of an address, and in the event of opposition, the relevant judicial authorisation and other dependencies of the Director of Insurance or the body in which he delegates. They may examine all the documentation relating to their operations, request that they be presented or submitted to them for the purposes of their incorporation into the Act, and shall be obliged to do so and to give them the maximum facilities for the performance of their duties. If the person or entity concerned has reasonable grounds, he may object to the copy of the documentation by stating his reasons in writing for incorporation into the Act.

4.1. In the Proceedings of the Inspection, they shall be reflected, where appropriate:

(a) The facts established by the Acting Inspector that are relevant for the purposes of the legal status of the conduct or activity inspected.

b) The legal and economic-financial situation arising from the actions taken.

c) The causes that could determine the adoption of precautionary measures, the dissolution and revocation of the administrative authorization, as well as the legal transgressions observed.

4.2. They shall be part of the Act of Inspection for all the purposes of the Annexes thereto and the Extended Diligences, by the Inspector during his/her checking activity.

5. The Proceedings of the Inspectorate which are extended in accordance with the requirements laid down in the preceding paragraph shall be presumed to be certain in relation to the facts reflected therein, unless otherwise proved.

6. The inspected entity or person shall have the right to make representations to the inspection report within 15 working days following that. Otherwise, the Law of Administrative Procedure will be strictly applicable as soon as it is not specifically regulated in the present. "

Twenty-four. The wording of the Final Disposition is amended First paragraph 1:

" For the purposes of Article 149.1, First, of the Constitution, the provisions contained in this Law have the consideration of the basis of the Management of Private Insurance, except for the following paragraphs or articles thereof: Article twenty-three, four, five and six; article twenty-six; twenty-seven, one a), d) and e); article twenty-eight, three, four, five and six; article thirty, two, three and four; article thirty-one, three, four, five, (d) six, seven (c) and (d) and eight; Article 30 and four; Article thirty-five, two and three; Article thirty-eight, one; article forty; article forty-seven; article forty-eight, two and article forty-nine. "

In addition, in paragraph 2 of the Final Disposition itself, the reference to the first paragraph of Article twenty-seven (1) (c) and the reference to Article 40 and one shall be replaced. 2 by the forty-one. 1.

Twenty-five. A paragraph 7 is added to Article 37:

" 7. The administrators of the companies defined in paragraph 1. (a) of this Article are required to make, within the maximum period of six months from the closure of the social year, the annual accounts, the management report and the proposal for the implementation of the result; and the ordinary general meeting of These Entities, previously convened for that purpose, shall meet, necessarily within three months of the date of the specified formulation of the administrators to censure the social management, approve, where appropriate, the accounts of the financial year above and resolve the application of the result. "

Twenty-six. Article 28 (

), (3) and (6) are amended as follows:

" 2. In the cases referred to in the preceding number, the provisions of Article 27 (1) (a), (b), (c) and (d) shall apply.

3. Insurance Entities may be transformed into a company of other legal or class nature, authorised by this Law, in which case its insured persons may terminate insurance contracts and the provisions of number 1 (b) and (c) shall apply. First paragraph of Article 27.

6. Entities may also be divided into two or more of their same nature, in order to continue their separate activity or be subject to independent mergers, the provisions of Article 27 (1) (a), (b) and (c) first and (d) being applicable. '

Article 2.

One. The following Chapters are added to Law 33/1984 of 2 August on the Management of Private

:

" CHAPTER X

Conditions for the exercise of direct insurance other than life under the provision of services

Section 1: General provisions

Article 50. Definitions.

For the purposes of this Law and supplementary provisions shall be understood as:

1. Member State of the European Economic Community where the risk is located:

(a) The person in which the goods are found, when the insurance relates to real estate, or to the property and its contents if it is covered by the same insurance policy.

Where the insurance relates to movable property located in a building, and for the purposes of Article 66 of this Law, the Member State in which the property is situated, even if it and its contents are not are covered by the same insurance policy, with the exception of goods in commercial transit.

(b) The Member State of registration, where insurance relates to vehicles of any kind.

(c) The person in whom the policyholder has signed the contract, if the duration of the contract is less than or equal to four months and relates to risks that arise during a trip or out of the usual domicile of the policyholder, whatever the affected class, from those included in this Chapter.

(d) The person in whom the policyholder has his habitual residence or, if he is a legal person, the person in which the establishment of the same person is located, in all cases, explicitly referred to in the preceding paragraphs.

2. Establishment: The registered office, delegation or branch of an undertaking authorised to operate in a Member State of the European Economic Community, taking into account the provisions of Article 51 of this Law.

3. Member State for the provision of services: The Member State in which the risk is located when it is covered by an establishment located in another Member State.

Article 51. Permanent presence of foreign insurers.

Any permanent presence of a foreign insurer in the Spanish territory shall be governed by the provisions of Article 12 of this Law even if it has not taken the form of an agency, branch or delegation and is exercised by means of a an office administered by the staff of that person or by an independent person, but with powers to act permanently for the insurer as an agency would.

Article 52. Great risks.

For the purposes of this Law and supplementary provisions, the following are major risks:

(a) Rail vehicles, aircraft, ship hulls, goods carried, civil liability arising from the use of aircraft or ships.

(b) Credit and security when the policyholder exercises an industrial, commercial or liberal activity in a professional capacity and the risk relates to such activity.

(c) Fire, other damage to property, general civil liability and miscellaneous pecuniary losses provided that the policyholder exceeds at least two of the following three limits:

Contravalor in pesetas of 6.2 million ECU as the total sum of the Balance Sheet.

Contravalor in pesetas of 12.8 million ECU as a net business figure.

Two hundred and fifty as the average number of persons employed during the last financial year ended prior to the date of the policy. Regulations will determine how the average number of employees will be calculated.

If the policyholder is part of a set of companies whose consolidated balance sheet is established in accordance with Articles 42 to 49 of the Trade Code, the criteria mentioned above are apply on the basis of the consolidated balance sheet.

Article 53. Exclusions.

1. The provisions of this Chapter shall not apply to operations, undertakings or bodies to which the first coordination Directive 73 /239/EEC is not applied or to the risks to be covered by public law bodies. referred to in Article 4. of that Directive.

2. The arrangements for insurance excluded from Chapter X of this Law shall be determined in accordance with the rules of the European Economic Community.

Section 2: Provisions applicable to establishments located in Spain

Article 54. Duty of information and exclusions.

1. Insurers which, from establishments located in Spain, intend to cover risks located in another Member State of the European Economic Community, must inform the Ministry of Economic Affairs and the Finance Ministry in advance. the State or States in whose territory they project such operations and the nature of the risks to be covered.

2. Entities authorised to operate in Spain in a territorial area smaller than the national may not be able to carry out operations under the provision of services.

Article 55. Communication of precautionary measures and the revocation of authorisation.

1. Where the Ministry of Economic Affairs and Finance applies the measures provided for in Article 42 of this Law to an Entity referred to in Article 54, it shall inform the competent authorities of the Member State of the provision of services.

2. Where the Ministry of Economic and Financial Affairs undertakes to revoke the authorization in accordance with Article 29 of this Law, to an Entity as provided for in Article 54, it shall inform the authorities of the Member State in which it services are provided.

Article 56. Control of technical provisions.

1. Entities, as referred to in Article 54, covering risks other than those referred to in Article 52 situated in another Member State of the European Economic Community, shall have to calculate technical provisions in accordance with the rules laid down in Article 54. in force in that State. The investment of those provisions in equivalent and consistent assets and the location of such assets shall also be carried out under the control of that Member State.

2. Irrespective of the above, the Ministry of Economic Affairs and Finance shall ensure that the technical provisions relating to all the contracts which each establishment situated in Spain holds are sufficient and are represented by equivalent and consistent assets, all in accordance with the provisions of Article 24 of this Law.

Article 57. Disposal of portfolio.

Risk portfolio disposals located in other Member States of the European Economic Community, as well as those to establishments located in those States, shall be governed by the provisions of Article 27 of this Regulation. Law.

Section 3: Provisions applicable to Establishments located in other
European Economic Community States performing operations in Spain

Article 58. Conditions for the provision of services.

The establishments located in other Member States of the European Economic Community, of insurance companies domiciled in any of them, may carry out their activity and cover risks located in Spain under the provision of services in accordance with the provisions of this Chapter, and in the other provisions of this Law and standards which develop it in the field of application. Where such risks are different from those defined in Article 52 and where the insurance institution has an establishment in Spain, this possibility shall be limited to the classes for which such an establishment is not authorised. administrative.

Article 59. Administrative authorization and communication.

1. The establishments referred to in Article 58 which are proposed to cover risks other than those defined in Article 52, located in Spain, shall obtain the corresponding authorization from the Ministry of Economy and Finance as a precondition and indispensable for the practice of these operations, which will be granted by classes and subject to compliance with the prescribed requirements.

2. Such authorization shall not be necessary where the Entity intends to cover exclusively the risks referred to in Article 52, in which case it may commence its activity from the date on which the Ministry of Economy and Finance is certified. in possession of the documentation to be determined.

3. The authorisation and communication referred to in the earlier numbers shall determine the entry in the Register referred to in Article 40.

4. Contracts or operations subject to this Law, concluded with Entities which have not obtained the necessary authorizations, shall be null and void, without prejudice to the liability of the Contracting Parties and to the third parties.

5. This responsibility shall be in solidarity with the Entity and the Administrators, Directors or Managers who have authorized or permitted the conclusion of such contracts or operations.

Article 60. Contract and technical documentation.

1. The content of risk policies other than those defined in Article 52 shall be in accordance with this Law and the Insurance Contract Law. The content of the policies covering risks as defined in that Article 52 shall be subject to the same regime as a pact.

2. The premium rates will respond to the freedom of competition regime in the insurance market and respect the principles of fairness and sufficiency based on the rules of the insurance technique.

3. The models of policies, technical bases and premium rates will not require prior administrative approval, but must be available to the Ministry, Economy and Finance before use in the form and in advance. Regulation is established. However, such administrative approval shall be required where the initial authorisation or the authorisation to extend the activity to new classes is requested.

4. The provisions of the preceding number shall not apply to major risks, without prejudice to the possibility that the Ministry of Economy and Finance may require non-systematic communication of the contractual and technical documentation used.

5. The Ministry may suspend the use of the models of policies, technical bases and premium rates where compliance with the provisions of the preceding numbers has not been justified after the Entity and Until such time the compliance is established. It may also prohibit its use when the provisions of those numbers are not complied with.

6. Any insurance contract or any other document for which the risk coverage is agreed shall indicate the management of the insurer and its registered office.

Article 61. Requirements for modifications.

Where any of the requirements laid down in Articles 59 and 60 are intended to be modified, it shall be necessary to proceed in accordance with the provisions laid down in those Articles and those amendments shall take effect under the conditions laid down in Articles 59 and 60. for each class of risk in Article 59 and Article 60 (1) and (2) and Article 60

4).

Article 62. Irregular situations.

1. The Entities referred to in Article 58 shall submit all the documentation required by the Ministry of Economy and Finance to verify the possible existence of irregular situations.

2. If it is established that an Entity does not comply with the applicable rules, the Ministry of Economy and Finance will require it to put an end to this irregular situation.

3. If the Entity persists in its irregular situation, the Ministry of Economic Affairs and Finance shall inform the competent authorities of the Member State in which it is established to take appropriate measures, and may also address the competent authorities of the registered office of the insurance institution when it operates through a branch, delegation or agency.

4. If, in spite of the above, the Entity continues to comply with the regulations in force, the Ministry of Economy and Finance may take appropriate measures, after informing the State control authorities. Member State in which it is established to prevent further irregularities and to prevent, in such a case, that the Entity continues to carry out these operations in Spain. In the case of risks other than those defined in Article 52, those measures shall include the withdrawal of the administrative authorisation.

5. The provisions of the preceding paragraphs of this Article shall be independent of the application of the regulatory rules for precautionary and publicity measures, infringements and penalties, in so far as it applies.

6. If the Entity that has committed the infringement has an establishment or property in Spain, the Ministry of Economy and Finance may proceed with the execution of the penalties provided for such an infringement on that establishment or such goods.

7. The measures taken shall be notified to the Entity concerned, indicating the administrative and judicial resources provided for in the legislation in force.

Article 63. Communication of the precautionary measures and the revocation of the authorisation.

1. Where the authorities responsible for the control of an entity referred to in Article 58 notify the Ministry of Economic and Financial Affairs of having taken precautionary measures in relation thereto, the Ministry of Economy and Finance shall take the necessary measures. to safeguard the interests of the insured.

2. Where the Ministry of Economy and Finance is notified of the revocation of the administrative authorisation, the latter shall take all appropriate measures to prevent the establishment concerned from continuing to conclude insurance contracts on the basis of provision of services in the Spanish territory.

Article 64. Technical provisions.

The Entities referred to in Article 58 covering risks located in Spain other than those covered by Article 52 shall comply with the calculation, investment of technical provisions and location, as well as as to its control, the provisions of this Law and its accompanying provisions.

Article 65. Obligation to participate in certain groupings.

The Entities referred to in Article 58 shall be subject, under the same conditions as the Entities established in Spain, to membership and participation in any regime intended to guarantee effectiveness. of the compensation.

Article 66. Surcharges and indirect taxes.

In the case of insurance contracts concluded under the provision of services, which cover risks situated in Spain, the current system of indirect taxation and legally established surcharges shall apply in respect of the same conditions as for contracts concluded with insurers established in Spain.

Article 67. Value of the ECU.

The equivalence in pesetas of the amounts of Equs that appear in this Law, will be calculated in the way that it is regulated.

CHAPTER XI

Community Coinsurance

Article 68. Community co-insurance operations.

An insurance operation will have the Community co-insurance rating for the purposes of this Act and its accompanying provisions, if it brings together any and all of the following conditions:

1. Which results in the coverage of one or more risks of those defined in Article 52 of this Law.

2. A number of insurance undertakings are involved in the risk coverage, all of which have their registered office in one of the Member States of the European Economic Community, and one of them is the operator of the operation.

3. The co-insurance shall be made by means of a single contract relating to the same interest, risk and time and the allocation of certain quotas between several insurance entities, without any solidarity between them, in such a way that each one will only be required to pay the compensation in proportion to the respective share.

4. Covering risks located in the European Economic Community.

5. That the opening entity, whether or not established in Spain, is entitled to cover the entire risk in accordance with the applicable provisions.

6. That at least one of the co-insurers is involved in the contract by means of its registered office or an establishment situated in a Member State of the European Economic Community other than the State of the Open Entity.

7. That the opening entity fully assumes the functions that correspond to it in the practice of the coinsurance, determining, according to the taker and in accordance with the provisions of the Laws, the Law applicable to the insurance contract, the conditions of This is a charge.

Article 69. Applicable rules.

The insurance companies participating in Spain in a Community co-insurance operation as opening-up as well as their activities as such co-insurers shall be governed by the provisions of Chapter X as regards big risks. "

Two. They are added to Law 33/1984 of 2 August on the Management of Private Insurance, the Transitional Provisions Ninth and Tenth and the Additional Provisions Fourth, Fifth, Sixth, Seventh and Eighth.

" Transient Disposition Ninth.

Until 31 December 1996, the following transitional arrangements shall apply to the definition of major risks laid down in Article 52:

1. Until 31 December 1992, no risk in Spain shall be subject to the system of major risks.

2. From 1 January 1993 to 31 December 1994, major risks shall be considered to be those referred to in Article 52 (a) and (b) and Article 52 (c), provided that the taker exceeds at least two of the three quantitative limits set out in that paragraph, with the figures corresponding to each of the limits 124 and 256 million ECU and 5,000 employees.

During the period defined in this paragraph, the last paragraph of Article 52 (1) shall not apply, and the figures referred to must correspond exclusively to the establishments of the taker which are located in Spain.

3. From 1 January 1995 to 31 December 1996, major risks shall be considered to be those referred to in Article 52 (1) (a) and (b) and (b) and those referred to in paragraph (c), but the limits for this paragraph shall be 12.4 and 24 million ECU and 500 employees.

The Government, on a proposal from the Minister of Economy and Finance, will be able to shorten the time limits and reduce the amounts provided for in this Transitional Provision. transient.

Transient Disposition 10th.

1. Until 31 December 1996, the definition of major risks for the Community co-insurance shall be for each of the following periods:

(a) Until 31 December 1992, the number one of Article 52 is considered to be major risks, provided that the taker exceeds at least two of the three limits referred to in paragraph (c) of that Article, with the figures for each of 124 and 256 million ECU and 5,000 employees.

(b) From 1 January 1993 to 31 December 1994, those referred to in the preceding paragraph with the exception that the provisions of Article 52 (a) and (b) shall be regarded as major risks in respect of the any case. During the periods defined in this paragraph and in the preceding paragraph, the provisions of the last paragraph of Article 52 (1) shall not apply, and the figures referred to must correspond exclusively to the establishments of the holding which are located in Spain.

(c) From 1 January 1995 to 31 December 1996, major risks shall be considered to be those referred to in Article 52 (a) and (b); the limits referred to in paragraph (c) shall be estimated at 12,4 and 24 million. ECU and 500 employees, respectively.

2. During the periods listed below, Community co-insurance operations must be reserved for all the co-insurers established in Spain who are involved in the operation, the risks covered by the are located in that territory not less than the following:

75 per 100 until December 31, 1989.

40 per 100 up to 31 December 1990.

20 per 100 up to 31 December 1991.

Additional Provision Fourth.

The currency in which the insurer's commitments will be payable shall be determined in accordance with the following rules:

First. Where the guarantees of a contract are expressed in a given currency, the insurer's commitments shall be deemed to be payable in that currency.

Second. Where the guarantees of a contract are not expressed in a given currency, the insurer's commitments shall be deemed to be payable in the currency of the country in which the risk is located. However, the insurer may choose the currency in which the premium is expressed, where circumstances so warrant.

Third. The insurer may consider that the currency in which its commitments are payable shall be the currency to be used according to its own experience or, in the absence thereof, the currency of the country in which it is established:

For contracts that guarantee the risks classified in the classes of railway vehicles, aircraft, ship hulls, goods carried, civil liability arising from the use of aircraft and ships and Civil liability for products, and

For contracts that guarantee the risks classified in other classes where, according to the type of risk, guarantees must be made in another currency other than that which would result from the application of the preceding rules.

Fourth. Where a claim has been declared to the insurer and the benefits are payable in a currency other than that resulting from the application of the above rules, the insurer's commitments shall be deemed to be payable in that currency. (a) in which the compensation payable by the insurer has been fixed either by a court decision or by an agreement between the insurer and the insured person.

Fifth. Where the firm valuation of the damage has been carried out in a currency other than that resulting from the application of the above rules, the insurer may consider its commitments payable in that currency.

Additional Provision Fifth.

Without prejudice to the provisions of Article 7, the Government may regulate the granting of the authorization referred to in Article 6 (1) and (2) and Article 12 (1) to organisations not included in the field of (a) that provision provided that his/her performance in private insurance is accepted by the Community Directives and to the same extent as he/she is.

Additional Provision Sixth.

The Government may modify the definition of the major risks to keep it appropriate to the existing Community legislation.

Additional Provision Seventh.

Insurance Entities operating in the legal defense branch will have to opt for one of the following management modalities:

1. To entrust the management of claims in the field of legal non-defence to a legally distinct undertaking, which must be mentioned in the contract. If that undertaking is linked to another undertaking which has a branch of insurance other than life, the members of the staff of the first undertaking concerned with the management of claims or the legal advice relating to such management shall not may simultaneously exercise the same or similar activity in the second undertaking. Nor shall the members of the management bodies of both entities be common.

2. Ensure in the contract that no member of staff dealing with the management of legal advice relating to such management exercises a similar activity in another class if the undertaking operates in several or for another Entity operating in the a class other than life and having with the legal defence insurer financial, commercial or administrative links irrespective of whether or not it specialises in such a class.

3. Provide in the contract the right for the insured to entrust the defence of his interests from the moment he is entitled to claim the insurer's intervention as provided in the policy, to a lawyer of his choice.

Additional Provision Eighth.

1. Any natural or legal person seeking to acquire, directly or indirectly, a participation in a private company or a Spanish private insurance company which, by itself or together with that which it may have previously held, ownership or control of the 15 per 100 or more of the share capital of that capital, shall specify the prior authorization of the Directorate-General for Insurance, which shall justify its decision in identical terms and time limits to those laid down for the authorization of new Insurance Entities.

2. Where the alleged provision is made in the preceding number without the necessary authorization, the acquirer may not exercise the political rights arising from his participation, and the precautionary measures may be taken on the affected entity provided for in Article 42 of this Law.

3. If, by way of derogation from the preceding number, the subjects concerned make use of their political rights, the agreements adopted for their participation may be contested in accordance with the provisions laid down for the challenge of social agreements. in the regulatory framework of public limited liability companies, with the Directorate-General of Insurance entitled to promote such challenge.

4. Without prejudice to the foregoing numbers, the insurance institutions whose share capital is affected in their composition by the changes referred to in No 1 shall inform the Directorate-General for Insurance of the acquisitions of holdings as soon as they are aware of them.

5. What is established in this Additional Disposition is without prejudice to the provisions of the Additional First, Eighth, Law 26/1988, July 29, Discipline and Intervention of Credit Entities. "

Third item.

Articles 10, first paragraph, first paragraph of 28 and 44, second paragraph of 48 and cause 3 of the 52 of Law 50/1980 of 8 October of 8 October of the Insurance Contract are amended and Title IV, the regulator of the Rules of Procedure, is added. Private International Law.

One. The following point is added to the first paragraph of Article 10:

"Article 10, first paragraph" in fine ":

You will be exonerated of such a duty if the insurer does not submit a questionnaire to you or, even if you submit it, are circumstances that may influence the assessment of the risk and are not included in it. "

Two. The first paragraph of Article 28 is drawn up:

" Article 28, first paragraph:

By way of derogation from Article 26, the parties may, by common agreement, fix in the policy or after the conclusion of the contract the value of the insured interest to be taken into account for the calculation of the compensation. "

Three. Article 44 takes the following wording:

" Article 44.

The insurer does not cover damages for acts arising from armed conflicts, whether or not preceded by an official declaration of war, nor any derivative of extraordinary risks, unless otherwise agreed.

Not applicable to the insurance contract against major risk damage, as defined in the Private Insurance Management Act, the mandate contained in the second article of this Law. "

Four. The second paragraph of Article 48 is worded as follows:

" Article 48, second paragraph:

The insurer shall not be required to indemnify the damages caused by the fire when the fire is caused by the insured or the insured. "

Five. Article 52 (3) is worded as follows:

" Article 52, cause 3. ª:

When subtraction occurs on the occasion of claims arising from extraordinary risks. "

Six. A new Title is added with the following content:

" TITLE IV

Rules of Private International Law

Article 107.

1. The Spanish law on the insurance contract will apply to insurance against damages, in the following cases:

(a) When referring to risks that are located in Spanish territory and the policyholder has in him his habitual residence, if it is a natural person, or his registered office or head office of effective business address, if is a legal person.

(b) When the contract is concluded in compliance with an obligation to be insured under Spanish law.

2. Outside of the cases provided for in the preceding number, the following rules shall apply to determine the law applicable to the insurance contract against damages:

(a) When referring to risks that are located in Spanish territory and the policyholder does not have in him his habitual residence, registered office or head office of effective business, the parties may choose between the application of the Spanish law or the law of the State in which the policyholder has such residence, registered office or effective address.

b) Where the policyholder is an employer or a professional and the contract covers relative risks, to his or her activities carried out in different States of the European Economic Community, the parties may choose between the law of any of the States where the risks are situated or the risk of the taking of the place of residence, registered office or effective address of business.

(c) Where the guarantee of the risks placed on Spanish territory is limited to claims that may occur in a Member State other than Spain, the parties may choose the law of that State.

3. For the purposes of the preceding numbers, the territorial situation of the risks shall be determined in accordance with the provisions of Law 33/1984 of 2 August on the Management of Private Insurance.

4. The choice of the applicable parts of the law, where possible, shall be expressed in the contract or clearly set out in the contract. If the choice is missing, the contract shall be governed by the law of the State from among those referred to in this number with which it presents a closer relationship. However, if a part of the contract is separable from the rest of the contract and will present a closer relationship with some other State than those referred to in that number, it may exceptionally apply to this part of the contract the law of that State. It shall be presumed that there is a closer relationship with the Member State in which the risk is situated.

5. The provisions of the foregoing numbers shall be without prejudice to the provisions of public order contained in the Spanish law, whatever the law applicable to the contract of damage insurance. However, if the contract covers risks located in several Member States of the European Economic Community, several contracts shall be deemed to exist for the purposes of this number, each of which is for each of them only a Status.

Article 108.

The provisions of the preceding article shall apply to the insurance of persons other than life insurance.

Article 109.

As not provided for in Article 107, the general rules of private international law on contractual obligations shall apply to the insurance contract. "

Article 4.

The Legal Statute of the Insurance Compensation Consortium is approved. The Staff Regulations shall be as follows:

" FIRST CHAPTER

General provisions

Article 1. Legal nature of the Insurance Compensation Consortium.

1. The Insurance Compensation Consortium is constituted as Entity of Public Law with its own legal personality and full capacity to act for the fulfillment of its purposes, endowed with patrimony other than that of the State, which will adjust its activity to the Private Legal Order.

2. The Insurance Compensation Consortium is attached to the Ministry of Economy and Finance.

Article 2. Legal framework.

1. The Insurance Compensation Consortium shall be governed by the provisions contained in this Legal Statute and, in so far as it does not object to it, for which the General Budget Law expressly dedicates to the State Societies regulated in its Article 6, 1, b).

2. You will be subject, in the exercise of your insurance activity and in the absence of special rules contained in this Law, to the provisions of the Law on the Management of Private Insurance and the Law on the Contract of Insurance.

3. In no case will the Law on Autonomous State Entities and the Law on State Contracts apply to it.

Article 3. Object.

1. The Insurance Compensation Consortium, as an Agency inspired by the principle of compensation, is intended to cover, in the terms laid down in this Statute, the extraordinary risks to persons and property, the risks nuclear, agricultural, livestock and forestry risks, risks of civil liability of drivers of motor vehicles, the risks of compulsory passenger insurance and the risk of civil liability of the hunter.

2. As an entity governed by public law, the Insurance Compensation Consortium is responsible for the management and collection of the surcharge intended to contribute to the financing of the Liquidating Commission of Insurance Entities. Also, the State Export Credit Insurance for the State has the functions that the regulatory legislation of this insurance attribute to you.

3. The Insurance Compensation Consortium may assign or withdraw part of the risks that it assumes under the provisions of this Legal Statute to Spanish or foreign entities that are authorized to carry out business operations. this nature. It may also accept reinsurance in the cases provided for in this Statute.

CHAPTER II

Organization

Article 4. Governing and administration bodies.

1. The Insurance Compensation Consortium shall be governed and administered by a Board of Directors composed of the Chairman of the Insurance Compensation Consortium, and a maximum of twelve vowels.

2. The Chair of the Insurance Compensation Consortium shall be held by the Director-General of Insurance.

3. The appointment and dismissal of the Vocals will be carried out by the Minister of Economy and Finance.

Article 5. Attributions.

1. The powers of the Board of Directors are:

a) Approve the Organic Statute of the Insurance Compensation Consortium and its modifications.

b) Develop the programme of action, investment and financing and the operating and capital budget, in the terms of Articles 87 to 91 of the General Budget Law.

c) Approve the annual accounts of the Insurance Compensation Consortium.

d) Propose to the Directorate General of Insurance the approval of the charging commission to be paid for the collection of surcharges on behalf of the Insurance Compensation Consortium within the limits established in this Legal Status.

e) Propose how many measures, plans and programs are suitable for a better development of the Consortium's activity. And, in general, to decide on all those issues that the President submits to his consideration.

f) Collapse credit and issue debt in the terms of this Law and other provisions applicable to Public Law Entities.

g) Approve the technical notes and rates to be used by the Consortium.

2. The Chair is responsible for the functions of the Insurance Compensation Consortium which does not expressly attribute to the Board of Directors the preceding paragraph.

The President may grant powers for the exercise of the powers conferred upon him, in order to achieve greater effectiveness of the Agency.

3. As soon as it is not provided for in this Legal Statute and in the rules applicable to it, the Organic Statute, approved by the Board of Directors, shall determine the structure of the Consortium and its internal operating system.

CHAPTER III

Functions

Section 1. Private Functions in the Underwriter Scope

Article 6. In relation to the extraordinary risks to persons and property.

1. The Insurance Compensation Consortium in respect of extraordinary risks shall be liable to indemnify, in the form laid down in this Legal Statute, in compensation arrangements, losses arising from extraordinary events occurring in Spain and which affect the risks therein.

For these purposes, direct damage to people and property will be lost. In terms of the rules to be determined, it shall be understood by extraordinary events:

(a) The following phenomena of nature: Earthquake and tidal waves, extraordinary floods, volcanic eruptions, atypical cyclonic storm and falls of steel and steel bodies.

(b) The violently occasioned as a result of terrorism, rebellion, sedition, mutiny and popular tumult.

c) Facts or actions of the Armed Forces or the Forces and Security Corps in time of peace.

For purposes only of the coverage of the Consortium, risk-related risks in Spain shall be those affecting:

(a) Vehicles with Spanish registration.

(b) Real estate located in the national territory.

(c) movable property located in a property located in Spain, whether or not covered by the same insurance policy, with the exception of those in commercial transit.

(d) In other cases, where the policyholder has his habitual residence in Spain.

2. The following damages or claims shall not be indemnified by the Insurance Compensation Consortium:

(a) Those who do not give rise to compensation under the Insurance Contract Act.

(b) Occasioned in persons or property insured under contract of insurance other than those in which the surcharge in favour of the Insurance Compensation Consortium is mandatory.

c) Due to vice or default of the insured thing.

d) Those produced by armed conflicts, even if the official declaration of war has not been preceded.

e) Those who, by their magnitude and gravity, are qualified by the Government of the Nation as "catastrophe or national calamity."

f) Nuclear energy derivatives.

g) Those due to the mere action of time or atmospheric agents other than the phenomena of the nature mentioned in the number 1 of this article.

(h) Those caused by actions produced in the course of meetings and demonstrations carried out in accordance with the provisions of the Organic Law 9/1983 of 15 July, as well as during the course of legal strikes, except that Such actions could be described as extraordinary events according to the number 1 of this article.

i) Indirect or loss of any kind derived from direct or indirect damages.

Article 7. Classes of insurance with compulsory surcharge in favour of the Consortium for the exercise of its functions in extraordinary events.

In order to comply with the Insurance Compensation Consortium of its functions in the field of loss compensation arising from extraordinary events in Spain, the surcharge in its favor is mandatory. insurance contracts to cover persons or property located in Spain of the following classes: Accidents, Land Vehicles, Railway Vehicles, Fires and Events of Nature and Other Damage to Goods, as well as combined modalities of the same or when they are contracted in a complementary manner.

It is understood, in any case, that policies covering the risk of accidents covered by a Pension Plan formulated under the Pension Plans and Funds Act.

In any event, the various forms of Combined Agricultural Insurance, as well as the policies of any risk of construction and assembly, and insurance policies other than those listed in the paragraph, are excluded. first.

Article 8. Rights and obligations of the Consortium in Extraordinary Risk Insurance.

1. The Consortium shall be obliged to satisfy the indemnities arising from claims produced by extraordinary events to the insured persons who, having satisfied the corresponding surcharges in favour of that, are in some of the The following situations:

a) That the extraordinary risk covered by the Insurance Compensation Consortium is not covered by insurance policy.

(b) That, while being covered by insurance policy, the obligations of the insurer cannot be fulfilled because it has been declared bankrupt, suspended payments or that, finding itself in a situation of insolvency, is subject to an interim settlement procedure or has been taken over by the Liquidator Commission of Insurance Entities.

2. The obligation of the Insurance Compensation Consortium shall be necessary and exclusively for the same persons or property and for the same insured sums as have been established in insurance policies, without prejudice to what is regulated establish in relation to the damage to motor vehicles and the optional inclusion covenants in the policies.

3. All policies included in the previous article will include a coverage clause by the Insurance Compensation Consortium of extraordinary risks, which will be referred to the faculty for the cover insurance holder. such risks with insurers meeting the conditions required by the legislation in force. This clause will be approved by the Directorate-General for Insurance, on the proposal of the Insurance Compensation Consortium, and will be published in the "Official State Gazette".

4. A period of absence may be established for cases and under conditions to be determined.

5. In the case of damage insurance, the Minister for Economic Affairs and Finance may decide, on the proposal of the Insurance Compensation Consortium, a franchise in charge of the insured person for the cases in which the Consortium has an obligation to compensate.

6. The Insurance Compensation Consortium, once the victims or their beneficiaries have been compensated, may repeat against the insurance institution by recovering the proportion of the amount paid in excess of the amount corresponding to the surcharge. effectively charged in their favour, where it has been unduly applied by default by the said Entity.

Article 9. In relation to Nuclear Risk Insurance.

1. The Insurance Compensation Consortium shall cover the risk of civil liability arising from a nuclear accident in Spain as follows:

(a) In the event that the minimum limit of the civil liability provided for in Law 25/1964 of 29 April on nuclear energy is not reached by the insurance entity as a whole, the Consortium will participate. in coverage assuming the difference to the indicated limit.

(b) Act as a reinsurer in the form and amount to be determined by the Ministry of Economy and Finance.

2. For the purposes of this Law, a nuclear accident is defined as such in Article 2.17 of Law 25/1964 of 29 April, the regulator of Nuclear Energy.

Article 10. In relation to Combined Agricultural Insurance.

1. The Insurance Compensation Consortium shall assume the risk coverage in the Combined Agricultural Insurance, in the form and amount determined by the Ministry of Economy and Finance, in the following cases:

(a) In the event that it is not achieved by the insurance entity as a whole, the entire coverage provided for in the Combined Agricultural Insurance Act.

b) Acting as Reinsurance.

2. The Insurance Compensation Consortium will assume coverage of forest fire risk in the terms of its specific legislation.

3. In any event, the Consortium shall be responsible for the exercise of the control of claims for claims.

Article 11. In relation to the compulsory subscription Civil Liability Insurance, derived from the Use and Circulation of Motor Vehicles.

1. The Insurance Compensation Consortium will assume, exclusively within the compensation limits set for the Civil Liability Insurance for compulsory subscription derived from the Use and Circulation of Motor Vehicles, the following functions:

(a) The contracting of the coverage of the obligations arising from the civil liability of the State and its autonomous bodies for the purpose of the movement of its motor vehicles. In respect of the Autonomous Communities, Local Corporations and Public Law Entities dependent on one or the other or the State, the Consortium will contract the coverage when they manifest not having a secure agreement with another Entity. insurer.

b) The hiring of the coverage of the risks not accepted by the Insurance Entities.

(c) The payment of the obligations of those Entities when they have been declared bankrupt, suspended payments or which, finding themselves in an insolvency situation, are subject to a settlement procedure this would have been assumed by the Liquidator Commission of Insurance Entities.

2. Notwithstanding the foregoing, the Insurance Compensation Consortium may assume the coverage of the Civil Liability arising from the Use and Circulation of Motor Vehicles, exceeding the limits of the compulsory insurance, in respect of the insured vehicles described in paragraph (a) of the preceding number 1.

3. The Insurance Compensation Consortium is also responsible for the functions entrusted to it by Article 8. of the Law on the Use and Circulation of Motor Vehicles under the conditions laid down in that Law and up to the limits of insurance. mandatory.

Article 12. In relation to the Compulsory Insurance of Travellers.

The Insurance Compensation Consortium will assume, exclusively within the compensation limits set for the Mandatory Travel Insurance, the following functions:

a) The hiring of the coverage of the risks not accepted by the Insurance Entities.

(b) the payment of the obligations of those entities where they have been declared bankrupt, suspended payments, or who, finding themselves in an insolvency situation, are subject to an interim settlement procedure or this would have been assumed by the Liquidator Commission of Insurance Entities.

(c) Compensation for bodily harm caused to travellers on the occasion of the transport covered by the insurance when the carrier, in breach of the legal mandate, does not have the appropriate insurance policy Mandatory for Travellers, except for damage to those persons who, occupying the means of transport, the Consortium proved that they knew such a circumstance.

Article 13. In relation to the Cazador's Mandatory Civil Liability Insurance.

1. The Insurance Compensation Consortium will assume, exclusively within the compensation limits set for the Cazador's Mandatory Insurance for Civil Liability Insurance, the following functions:

(a) The hiring of the coverage of the risks not accepted by the insurance entities.

(b) the payment of the obligations of those Entities where they have been declared bankrupt, suspended payments or which, having been in insolvency, are subject to an interim settlement procedure or this would have been assumed by the Liquidator Commission of Insurance Entities.

2. In addition, and also within the limits of compulsory insurance, you will perform the following functions:

(a) Indemnify the victims or their beneficiaries of bodily accidents that occurred in Spain during the exercise of hunting with weapons, when the cause of the damage is not insured or when it is unknown. In the case of the existence of a game, the subsidiary liability of the Consortium shall be exclusively for members of the game who are not covered by compulsory insurance.

b) Indemnify the bodily harm produced by a hunting weapon when the economic performance by the regulated media in the legislation on the compulsory insurance of the Cazador's Civil Liability is not effective.

Section 2. Public Functions

Article 14. In relation to Export Credit Insurance.

The Government will determine the functions that, if any, correspond to the Insurance Compensation Consortium in the Export Credit Insurance for the State.

Article 15. In relation to the Liquidator Commission of Insurance Entities.

It is the responsibility of the Insurance Compensation Consortium to manage and collect the 5 per 1,000 surcharge on premiums collected by insurance institutions in all classes, except for life, to make grants to the Liquidator Commission of the Insurance Entities in order to ensure that the functions entrusted to it by the legislation in force can be fulfilled and to cover the costs necessary for the operation of the legislation.

The above grants will be awarded by the Consortium from the full amount charged to the 5 per 1,000 surcharge, without being limited by economic exercises, in the amount necessary to finance the entire Annual budget of the Liquidator Commission of the Insurance Entities and to the extent that the same cannot be met with own resources. In addition, it may grant to the Commission Liquidator subsidies on account of the actual collection of the additional surcharge in the year in which they are granted, in the latter case as a limit on the amount of the annual surcharge in the last year. exercise ended.

The General Directorate of Insurance will establish the procedure for the implementation of grants for the purpose of the purposes of the Liquidator Commission of Insurance Entities.

No interest will be paid to the Liquidator Commission of Insurance Entities as a result of the temporary delay that may exist between the collection of the surcharges by the Consortium and the grants to be made is in favour of that.

Article 16. Other public functions.

Additionally, the Insurance Compensation Consortium is the following functions:

1. Propose or communicate, if appropriate, to the General Directorate of Insurance the general rates of premiums and surcharges to be charged by the Consortium as a counterpart to the indemnification functions attributed to it.

The tariff proposal will respond to the principle of sufficiency based on the rules of the insurance technique, without prejudice to the principle of solidarity that must be encouraged by the operations carried out by the Consortium.

2. To obtain the information that is regulated by the law of the insurance companies issuing insurance policies in the classes referred to in Article 7. in respect of such policies.

In particular, insurance companies with domicile in the European Economic Community who, not being resident in or operating in Spain by means of establishment, issue policies of those referred to in the paragraph, they shall be required to designate a person, natural or legal, with domicile in Spain, to represent them before the Insurance Compensation Consortium in relation to the obligations referred to in Articles 7 and

.

3. Any other public functions that attribute the current legal provisions to you.

CHAPTER IV

Operating system

Article 17. Collection of premiums and surcharges on a voluntary basis.

1. All the surcharges and premiums of the Insurance Compensation Consortium, except in the case that the insurance directly concerns the insurance, will be collected by the insurance companies together with their premiums or, case of fractionation of the same, with the first split payment to be made.

2. The insurance companies will be obliged, at the time of submitting to the Consortium the declaration of the surcharges and premiums collected for the account of the same, to practice a settlement and to enter its amount with the periodicity and subject to the rules which are determined to be regulated.

3. The liquidations carried out by the Directorate-General for Insurance derived from Inspection Acts which do not have a period of entry for their specific rules shall be entered within 15 days of the date of the entry into force of the notification of settlement to the insurance institution.

4. The exercise of the collecting management on behalf of the Insurance Compensation Consortium, in compliance with the provisions of this precept, will entail the right to receive a collection fee to be fixed by the Directorate-General for Insurance on a proposal from the Consortium and prior hearing of the most representative insurers, and the General Council of the Colleges of Insurance Agents and Brokers, without exceeding 10 per 100 of the gross amounts collected.

Article 18. Collection of premiums and surcharges in the award period.

1. Failure to enter into the Consortium what is perceived by the Insurance Entity within the legally established period shall be without prejudice to the administrative responsibilities and, where appropriate, penalties in which it may have incurred, the the obligation to satisfy the legal interest during the period of delay.

2. They have the character of public law income premiums and surcharges to satisfy the insurance entities in favor of the Insurance Compensation Consortium in their clearing and guarantee fund functions. Such revenue shall be payable by the administrative route of the award, where they have not been entered by those within the time limit laid down in the preceding Article. To this end, the certification of the discovery issued by the Director-General of Insurance on the proposal of the Consortium shall be enforceable.

Article 19. Legal assistance and inspection service.

1. The representation and defense of the Insurance Compensation Consortium before the Courts and Courts shall be the responsibility of the State Attorneys and other Letrates integrated in the State Legal Services, without prejudice to the fact that, for certain cases and in accordance with what is regulated, may be entrusted to a specially designated Collegiate Advocate.

The Insurance Compensation Consortium may seek legal advice from the State Legal Service.

2. The Directorate-General for Insurance, through the Insurance Inspectorate and in accordance with the inspection plans approved on a proposal from the Consortium, will inspect the companies, be legal entities or natural persons, who collect surcharges and premiums for Insurance Compensation Consortium account.

Article 20. Peculiarities of the processing of claims.

The processing of claims in which the Consortium has the status of insurer or reinsurer, with the link to the opinion of the Peritos referred to in the seventh paragraph of Article 38 of the Law of Contract Insurance as regards the matters of fact entered in the same, shall be in accordance with the aforementioned Law of Insurance Contract.

However, the following special rules apply:

1. The technical report of the Nuclear Safety Council on the accident, its causes, extension and effects will be required in the processing of claims in the Civil Liability Insurance derived from Nuclear Energy.

2. In order to be admissible, the executive demand referred to in the Law on the Use and Circulation of Motor Vehicles must be proved to be true that the Consortium was required judicial or extra-judicially for payment, and that from that requirement passed a three-month period without having been taken care of.

3. The Compulsory Insurance of Travellers and the Compulsory Insurance of the Cazador's Civil Liability Insurance will accompany the claim with proof that the Consortium's coverage is appropriate, as well as a medical report on the injuries produced and their causes and, where appropriate, of the discharge or death.

4. In the processing of claims in forest fire insurance in which the Insurance Compensation Consortium has an insurance function, the claim shall be accompanied by the certification of the competent authority on the causes of the accident and the approximate extent of the area affected by the fire. In addition, if the claim is for fire-fighting costs, it must also be accompanied by a report by the authorities which have ordered them or which have led to the extinction in which they are justified, and if the claim is by injury to persons shall be accompanied by a medical report on them and their causes, as well as discharge or death, where appropriate.

Article 21. Exercise of judicial actions against the Insurance Compensation Consortium.

Without prejudice to the provisions of Article 20 of this Statute, for the exercise of civil actions against the Consortium, the prior complaint shall not be required and shall not be applicable to the same rules. contained in Articles 39 to 45 of the General Budget Law.

CHAPTER V

Staff and Economic-Financial Regime

Section 1. Staff Regime

Article 22. Staff of the Insurance Compensation Consortium.

Staff at the service of the Insurance Compensation Consortium shall be governed by the provisions of the Workers ' Statute and other provisions governing the employment relationship.

Section 2.

Article 23. Economic resources.

1. For the purposes of the purposes of the Insurance Compensation Consortium, the following economic resources shall be provided:

(a) premiums and surcharges on insured premiums or capital that are collected for coverage, whatever form it takes, of the risks of all types assumed by the Consortium.

(b) State grants for the establishment of technical provisions to be made by legal or regulatory imperative with a direct rule of application to the Consortium and in cases of risk cover in which it exists failure of premiums, quotas or surcharges.

(c) The amounts recovered in the exercise of the right of repetition and the interest on late payment corresponding to the Legal Order.

d) The products and income of your estate.

e) Those from the credits, loans and other financial operations that you can make.

f) Any other income that corresponds to you under the current legislation.

2. The fees for premiums and surcharges to be charged by the Consortium in general will be approved by the Directorate General of Insurance on a proposal of the same and will be published in the "Official Gazette of the State".

Article 24. Heritage and technical provision for exceptional claims.

1. It constitutes the assets of the Insurance Compensation Consortium as a whole of the assets, rights, obligations and shareholdings assigned to it by this Statute and other provisions applicable to it, as well as those in the successive purchase or are incorporated. They also make up their assets the contributions that the State makes in order to maintain the appropriate technical-financial balance for each insurance class, as well as the solvency margin required by the Consortium for the legal order in insurance matters.

However, in the Combined Agricultural Insurance, the Consortium must carry out the operations it carries out with absolute accounting separation in respect of the other operations it carries out and constitute an affected property. exclusively to such combined agricultural insurance operations, which shall be legally separate from the other assets of the Entity and in which the contributions which the State makes for the purpose of maintaining the adequate technical-financial balance in the same. Such assets shall be liable only for the results of such insurance operations, without the latter being liable to the remaining assets of the Entity.

The resources corresponding to the risks covered by the State Export Credit Insurance are excluded from the assets of the Consortium, which will be endowed with full financial independence, wealth and accounting.

2. The Insurance Compensation Consortium shall constitute a technical provision of a cumulative nature intended to compensate for exceptional claims of character and amount, which shall be provided in accordance with the technical criteria to be determined by the Ministry of Economy and Finance.

Article 25. Budget, accounting and control arrangements.

1. The programme for action, investment and financing and the operating and capital budgets shall be in accordance with Articles 87 to 91 of the General Budget Law. In any event in the liquidation of the budget any surplus that can be produced shall be incorporated into the equity of the Company.

2. It shall be adjusted in its accounts and shall be subject to economic and financial control and to the effectiveness of the legislation applicable to those entities and to the rules laid down by the General Budget Law in this field for insurance institutions. to state companies.

Article 26. Arrangements for recruitment and access to credit.

1. The hiring of the Insurance Compensation Consortium will be carried out by the rules of Private, Civil, Commercial or Labor Law.

2. The Insurance Compensation Consortium may perform all types of financial operations, and in particular, arrange for active and passive credit and loan operations whatever the way they are implemented, including through the issuance of obligations, bonds, promissory notes or other similar securities.

These Insurance Compensation Consortium financial operations will have the following characteristics:

(a) Correspond to the Board of Directors to contract credit and to issue debt, concerting or fixing its term, interest rate and other characteristics as well as to establish the full or partial representation of the debt issued in bonds, notes, notes or other securities or documents formally recognised by it or, as soon as the provisions in force permit, in notes.

(b) In its indebtedness, the Consortium shall be subject to the limits established for each financial year by the General Budget Law of the State, having such a limit the net character and being effective at the end of the financial year.

(c) Debt instrumented in exchange-traded securities shall be admitted to trading on the Stock Exchanges of trade.

d) The Consorcio's property obligations are guaranteed by the State on the same terms as those of the Public Finance.

3. The Government, on a proposal from the Ministry of Economy and Finance, may authorise the opening of credit accounts at the Banco de España in order to meet the transitional financing needs arising from its activity. However, in the field of the Combined Agricultural Insurance, the procedure for dealing with, by means of the opening of the credit referred to above, shall be determined in accordance with this purpose. "

Article 5.

The articles listed below are related to the Law on the Production of Private Insurance, recast text approved by Royal Decree 1347/1985 of 1 August, as amended by Royal Legislative Decree 1300/1986 of 28 June 1986, adapting to the Directives of the European Economic Community, are worded as follows:

One. Article 3 ("General concepts") in paragraph Two. takes new wording and adds to it a section Three:

" Article 3. Two:

Commercial companies may be constituted whose exclusive social object is the mediation of private insurance, such as the Agency or the Insurance or Reinsurance Broker, which shall be included in the respective reason social; when the Society is for actions, these will be nominative. Managers or Directors of such companies shall be in possession of the title of "Insurance Agent and Corridor".

Partners of these Companies may be the Agents or Brokers and the Agency or brokerage companies, respectively, as well as the natural or legal persons who, lacking the status of private insurance mediator, do not they are incompatible and, in addition, in the case of legal persons, they make such a situation known.

Reglamentarily determine how to make known the participation of legal persons in agency or brokerage companies and the necessary conditions to guarantee the independence of the Companies of Brokerage whose partners do not in turn have the status of mediators referred to in the second paragraph of this precept.

Article 3. Three:

The provisions of the preceding numbers shall not apply to insurance operations the main object of which is the coverage of travel assistance benefits or the coverage of risks affecting persons or their persons. personal and baggage effects on the occasion of a journey or movement outside their usual addresses. '

Two. Article 5 (1) (d) and Article 5 (2) and (4) are worded as follows:

" Article 5.

One. (d) Overcome the aptitude tests which are laid down in regulation, with the exception of the Insurance Actuaries, the Licensors in Law, in the Economic or Business Sciences or those in possession of the certificate of accreditation of the exceeding an insurance course awarded by a Centre approved by the Ministry of Economic Affairs and Finance in accordance with study plans approved by the Ministry.

Two. Non-representative insurance agents, as long as they are not required to provide the title with the title, shall certify their knowledge by means of a certificate of sufficiency.

Four. Certificates of proficiency shall be entered in the Special Register of Private Insurance Mediators referred to in Article 40 of Law 33/1984 of 2 August on the Management of Private Insurance, which shall be carried out in the Ministry of Economy and Finance with the content to be regulated. "

Three. New wording is given to paragraph 1 and paragraph 4 is deleted, both in Article 6. The wording of Article 6 (1) shall be as follows:

" Article 6.

One. In order to pursue the profession of private insurance mediator, it is necessary to be registered in the Special Register of Private Insurance Mediators, attached to the corresponding Professional College in those modalities for which the title is required, be affected by any of the incompatibilities referred to in the following Article and, in their respective cases, comply with the requirements set out in this Law. In the case of private insurance mediation companies, the requirement for membership should be understood solely as referring to natural persons acting as Managers or Directors thereof. "

Four. Article 9. Six is worded as follows:

" Article 9. º Six:

Reinsurance agents and brokers shall, in respect of the parties to whom they intervene, comply with the obligations set out in the preceding numbers, referring them to the reinsurance transaction in question. Such mediators shall in any case be regarded as a depositary of the amounts they have received on behalf of those for whom they act. "

Five. New wording is given to paragraphs One, Two, Three and Five of Article 10:

" Article 10.

One. Private insurance intermediaries are classified as insurance agents, reinsurance agents, insurance brokers and reinsurance brokers; insurance and reinsurance agents may be affected or affected by representatives. These activities are incompatible with each other.

Two. It is agents that are linked to an insurance or reinsurance entity by means of an insurance or reinsurance agency contract, without the powers of representation.

Three. Representatives are representatives of representatives of an agency contract with an insurer or reinsurer, acting on behalf of the agency with the powers resulting from the mandate it has conferred.

Five. Reinsurance brokers are those who, without the intermediary of an agency contract with a particular insurer or reinsurer, act as mediators between an insurer or a transferor reinsurer and another acceptor. "

Six. Article 13 (2) and (4) are amended as follows:

" Article 13.

2. Insurance Entities may not pay fees or any other kind of remuneration for the production of private insurance to those who do not have the legal status of private insurance intermediaries, or to verify unanticipated discounts. in the rates that are applicable in accordance with the rules in force in favour of the policyholder or policyholders.

4. The reinsurance agents and brokers shall not extend their management close to the policyholders or policyholders. "

Seven. New wording is given to Article 14:

" Article 14. Administrative competence.

One. The administrative powers relating to the control of the exercise of the profession of private insurance mediator shall correspond to the Ministry of Economy and Finance.

Two. 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 1. 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 reach those who carry out operations which may in principle qualify as private insurance mediation, in order to check whether they exercise the activity without complying with the legally established requirements.

The companies that are presumed to form a group with a Mediation Society are also subject to this Inspection to determine whether the circumstances provided for in Article 3 (2) are present.

Three. The Inspectors in the performance of their duties shall have the status of Agent of the Authority. They shall be bound by the obligation of professional secrecy, even after the exercise of their public function.

Four. The Inspectors shall have access to the registered office and to the establishments, premises and offices in which activities are carried out by the Entity or person inspected; in the case of an address, and in the event 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 presented or submitted to them for the purposes of their incorporation into the Act, and shall be obliged to do so and to give them the maximum facilities for the performance of their duties. If the person or entity inspected has reasonable grounds, he/she may object to the copy of the documentation by stating his reasons in writing for incorporation into the Act.

Five. They shall form part of the Inspection Act, for all purposes, the Annexes thereto and the measures extended by the Inspector during his/her checking activity.

Six. The Inspection Proceedings which are issued in accordance with the provisions of this Article shall be provided with a presumption of certainty in respect of the facts reflected therein, except in the case of a trial.

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

Eight. The name of Chapter III shall be as follows:

" CHAPTER III

For Insurance Agents "

Nine. New wording is given to Article 25:

" Article 25. Quantitative determination of the right.

In order to encrypt the right referred to in Article 21, it shall be deducted from the commission that part of it is to be paid to other Agents or to their successors and, in addition, that which corresponds to the successor Agent in compensation for the Portfolio conservation service. The estimated percentage for such compensation, which will be reviewed by the Ministry of Economy and Finance when the circumstances advise it, will be stated. "

Ten. Article 29 takes the following wording:

" Article 29. General rules.

One. Private insurance intermediaries, whether natural or legal persons, as well as those who are in charge of administration or management of mediation companies, which infringe private insurance production rules shall incur liability. administrative.

Two. The rules contained in Articles 43 and 44 of Law 33/1984 of 2 August on the Management of Private Insurance with the specialities provided for in this Article and the following shall apply to private insurance intermediaries.

For these purposes, the references made in the rules referred to Credit Entities or Insurance Entities and to rules for the management and discipline of Credit Entities or Insurance Entity Management Rules They shall, respectively, understand private insurance intermediaries and private insurance production standards.

Three. Rules for the production of private insurance are considered to be those covered by this Law and its Regulation and, in general, those contained in laws and administrative provisions of a general nature containing precepts specifically relating to the Private insurance intermediaries and the obligation to observe them. "

Once. Article 30 is worded as follows:

" Article 30. Violations.

One. Infringements of private insurance production standards are classified as very serious, serious and minor.

Two. They shall be regarded as serious infringements of the provisions of Article 4 (d), (e), (g), (h), (k) and (l) of Law 26/1988 of 29 July 1988 on Discipline and Intervention of Credit Institutions, as laid down in Article 43.3 (g) of the Law on Private Insurance and, in addition, the following:

(a) Mediation in mediation, as well as inaccurate or inappropriate information to policyholders, policyholders, policyholders or insurers, provided that the number of persons concerned or the importance of the the information, such non-compliance can be considered particularly relevant.

(b) The exercise of the profession of private insurance mediator without meeting the legal conditions, the exercise of the profession by an incompatible person, directly or by person, as well as such an interposition.

c) Production of insurance or reinsurance in favor of Entities not legally authorized to operate in Spain.

(d) the use of proprietary names of private insurance intermediaries or other persons liable to mislead them by natural or legal persons who are not legally entitled to exercise such profession.

(e) The use by private insurance intermediaries of names that are reserved for private insurance or reinsurance entities or which may lead to confusion with them.

(f) The performance of abusive practices that prejudice the right of policyholders, insured persons, beneficiaries of policies or insurers, unless such acts are merely occasional or isolated.

g) The lack of accounting and of the books and records required in the rules of private insurance production or the keeping of them with essential irregularities that prevent the scope and nature of the operations performed.

(h) The failure to refer to the Directorate-General for Insurance of any data or documents must be referred to or required in the performance of their duties or the lack of veracity thereof, where the assessment 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 occur within the time limit granted to the effect by the Directorate-General for Insurance when recalling in writing the obligation or reiterating the requirement.

Three. They shall be regarded as serious infringements as referred to in points (c), (d), (f), (o) and (q) of Article 5. of the Law on Discipline and Intervention of Credit Institutions, as laid down in Article 43.4 (b) of the Law on Ordination of Private Insurance and, in addition, the following:

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

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

c) Make unanticipated discounts on applicable premium rates.

(d) The failure to refer 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 of a a very serious infringement within the meaning of point (h) of number Two. For the purposes of this letter, it shall be understood that there is a lack of referral where the reference does not occur within the time limit granted to the effect by the Directorate-General for Insurance when recalling in writing the obligation or reiterating the requirement.

e) The irregular conduct of the books and records required in the private insurance production rules when the special circumstances provided for in point (g) of the number two are not met.

Four. Minor infringements shall be taken into account in respect of non-compliance with mandatory requirements for mediators in private insurance production rules, which do not constitute a serious or very serious infringement in accordance with the provisions of the Treaty. provided in numbers two and three. "

Twelve. Article 31 is worded as follows:

" Article 31. Penalties.

One. For the commission of very serious infringements will be imposed one of the following sanctions:

a) Multa, for the amount of up to 5,000,000 pesetas.

(b) Suspension for a maximum period of 10 years for the exercise of the profession.

The penalties provided for in points (a) and (b) may be imposed at the same time.

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

a) Public assembly.

b) Multa for up to 2.5 million pesetas.

(c) Suspension for a maximum period of one year for the exercise of the profession.

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

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

a) The private assembly.

b) Multa for up to 1,000,000 pesetas.

Four. In the event that the infringement has been committed by a private insurance mediation company, the following rules shall apply:

(a) For the commission of very serious infringements the penalty of cancellation of the registration in the Special Register of Private Insurance Mediators may also be imposed.

(b) The person holding the position of Director or Manager of a Mediation Society shall be applicable to the sanctioning regime provided for for the physical persons of private insurance.

(c) Those who are charged with the administration of private insurance mediation companies shall be applicable as provided in Articles 12, 13, 14.2 and 15 of the Law on Discipline and Intervention of Credit Entities. "

Thirteen. The wording of Article 32 becomes the following:

" Article 32. Procedure and competence.

One. The procedure laid down in Articles 133 et seq. of the Law on Administrative Procedure of 17 July 1958 shall be followed for the imposition of the penalties provided for in this Act, with the specialities referred to in Articles 19 to 27, both inclusive, of the Law on Discipline and Intervention of Credit Entities.

Two. 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 6.

Section Ninth ("Reinsurance") Title II of Law 50/1980, of 8 October, of Insurance Contract will become the Tenth Section. A new Ninth Section will be introduced immediately, which will have the following content:

" Section Ninth. Legal Defense Insurance

Article 76, a):

By the legal defense insurance, the insurer is obliged, within the limits established in the Law and in the contract, to take charge of the expenses in which the insured person may incur as a result of his intervention in a administrative, judicial or arbitral proceedings, and to provide the services of judicial and extrajudicial legal assistance arising from insurance coverage.

Article 76, b):

The payment of fines and compensation for any expenditure arising from sanctions imposed on the insured by the administrative or judicial authorities are excluded from the coverage of the legal protection insurance.

Article 76, c):

Legal defense insurance should be the subject of an independent contract.

The contract, however, may be included in separate chapter within a single policy, in which case the content of the guaranteed legal defense and the premium that corresponds to it must be specified.

Article 76, d):

The insured person shall have the right to freely choose the Attorney and Attorney to represent and defend him in any class of proceedings.

The insured shall also have the right to the free choice of Advocate and Procurator in cases where conflict of interest is present between the parties to the contract.

The Attorney and Procurator appointed by the insured shall in no case be subject to the instructions of the insurer.

Article 76, e):

The insured shall be entitled to submit to arbitration any differences that may arise between him and the insurer on the insurance contract.

The appointment of arbitrators cannot be made before the disputed question arises.

Article 76, f):

The policy of the legal defense insurance contract will have to expressly collect the rights recognized by the two previous articles.

In the event of a conflict of interest or a breach of the way of dealing with a contentious issue, the insurer must immediately inform the insured person of the right to exercise the rights to which they refer the two previous articles.

Article 76, g):

The precepts contained in this Section will not be applicable:

1. The legal defense conducted by the insurer of civil liability in accordance with the provisions of Article 74.

2. º A legal defense performed by the insurer of travel assistance.

In this case, the non-application of the rules of this Section will be subordinated to the activity of legal defense being exercised in a State other than that of the habitual residence of the insured person; provided for in a contract which is solely and exclusively for the purpose of assisting persons who are in difficulties due to travel or absence from their place of habitual residence, and who are clearly indicated in the contract which is not a matter of legal defence insurance, but of ancillary coverage to that of travel assistance.

3. A legal defense that has for the purpose of litigation or risks arising or related to the use of ships or maritime vessels. "

ADDITIONAL PROVISIONS

First.

1. The autonomous agency Consortium of Insurance Compensation, retaining the same name, is configured as Entity of Public Law as provided for in Article 6.1, b) of the General Budget Law, recast text approved by Real Legislative Decree 1091/1988 of 23 September 1988. The new Company will succeed the current Autonomous Body in all its rights and obligations, continuing to be entitled to its assets and subrogating itself in all its legal relationships.

2. The employment staff providing their services in the Autonomous Body Insurance Compensation Consortium will be integrated into the newly created Public Law Entity. Officials assigned to the Insurance Compensation Consortium may, for a period of six months after the entry into force of this Law, opt to be integrated into the workforce templates of the new Public Law Entity, with recognition, in any case, of the age which corresponds to them, and in their bodies and scales of origin in the situation of voluntary leave provided for in Article 29.3, (a), of Law 30/1984, of 2 August, of Measures for the Reform of the Civil Service, or reintegrate to the Department to which its Body or Scale is attached, under cover of the provisions of Article 21.2 (b) of that Law No 30/1984.

The incorporation of the official and labor personnel into the new Public Law Entity will be carried out in jobs located in the same locality.

3. The unique patrimony of the new Society is initially constituted by that of the replaced Body, integrated in turn by the one of each of the heritage sections that until the entry into force of this norm they have been forming the same.

4. All transmissions, acts and operations necessary for the transformation provided for in this Additional Disposition or derived thereof shall be exempt from any tribute, whatever their nature. Likewise, the Insurance Compensation Consortium will enjoy 50-for-100 tariff bonuses for the intervention of public and registrants in these operations.

5. The Government, on a proposal from the Minister for Economic Affairs and Finance, may include in the coverage of extraordinary risks by the Insurance Compensation Consortium all or any of the modalities of the Combined Agricultural Insurance policies.

Second.

By Royal Decree, the functional scope of the Insurance Compensation Consortium may be reduced according to the evolution of the insurance market.

Third.

Article 58 of Law 25/1964 of 29 April, regulating Nuclear Energy, is worded as follows:

" Civil liability arising from a nuclear accident may be covered by the insurance entities registered in the Special Register of the Directorate-General for Insurance for the Practice of Insurance on Civil Liability and which have policies, technical bases and premium rates in this respect that meet the legal conditions. The Insurance Compensation Consortium shall participate in the coverage of such risks in the event that the minimum limit of the civil liability provided for in this Law is not reached by the group of such Entities, assuming the difference to the the limit indicated, as well as reassurances in the form and amount determined by the Ministry of Economy and Finance. '

Fourth.

1. A paragraph is added to Article 11 (1) of Law 87/1978 of 28 December 1978 on Combined Agricultural Insurance, as follows:

" 5 per 100 of the contribution of the State referred to in the preceding paragraph shall be entered in the Insurance Compensation Consortium to increase its allocation of the supply of claims for this purpose. insurance. "

2. The Forest Fire Compensation Fund integrated into the Insurance Compensation Consortium ceases in its capacity as a Service endowed with financial, patrimonial and accounting independence, being merged to all effects on the property of the Insurance Compensation Consortium. Therefore, the references that are made in the current legislation to the Forest Fire Compensation Fund are to be understood in the following directly to the Insurance Compensation Consortium.

Fifth.

In Law 122/1962, of 24 December, on the Use and Circulation of Motor Vehicles, recast text approved by Decree 632/1968, of 21 March, and whose Title First was adapted to the Community legal order by Royal Legislative Decree 1301/1986, of 28 June, the following amendments are introduced:

1. The reference referred to in the second paragraph of Article 6 and the second paragraph of Article 17 (d) of Article 785 (d) of the Criminal Procedure Act must be replaced by the following: " the second subparagraph of Article 17 (d) of the Law on the Article 784 and paragraph (d) of Article 785 of the Law on Criminal Procedure. "

2. The second paragraph of Article 12 is worded as follows:

"If no agreement is reached, the sixth paragraph of Article 38 of the Insurance Contract Law shall proceed."

3. The reference in Article 14 to the 'Guarantee Fund' should be replaced by the 'Insurance Compensation Consortium'.

4. New wording is given to the second paragraph of Article 16:

" If the liquid quantity indicated in the title is less than that required in Article 1,435 of the. Law on Civil Procedure, the complaint shall be made in a verbal judgment before the competent court. "

Sixth.

The third and last paragraph of Article 4 (6) of Royal Decree-Law No 10/1984 of 11 July 1984 laying down urgent measures for the reorganisation of the private insurance sector and for the strengthening of the control, it is worded as follows:

" Shares of any class exercised against the entity prior to the commencement of settlement or during the settlement in any jurisdiction, including those that pursue mortgaged or pledged assets, shall continue to be processed. until you get a firm sentence. The execution of the proceedings, the enforcement of the precautionary measures, as well as that of the administrative provisions of the award, shall be suspended as long as the discharge procedure is dealt with by the Commission. If the winding-up plan is not approved by the creditors or ratified by the Directorate-General for Insurance, it shall be issued to those who take the appropriate legal action to bring proceedings against them, and to the Public administrations, that of its powers to continue the administrative procedures for the award. "

Seventh.

At the entry into force of the provision in which the Minister of Economy and Finance complies with the provisions of Article 1 (2) of Law 10/1970 of 4 July amending the insurance scheme of the Credit to the Export, in its wording given by the Additional Provision Eighth, one, of Law 4/1990, of 29 June, of General Budget of the State for 1990, the State Administration will be subrogated as reinsurer in the place of the Insurance Compensation Consortium in the contracts for the coverage of commercial risks in Credit Insurance to the Export, in which the latter is reinsurer of "Spanish Company of Export Credit Insurance, Company Anonymous". Under the operation of the subrogation, the Insurance Compensation Consortium shall perform the same functions as it performs in the Export Credit Insurance for the State account.

TRANSIENT PROVISIONS

First.

One. As a result of the Government's decision to lay down the rules laid down in the Final Disposition, the rules governing the organisation, functions and fulfilment of its obligations by the Member States shall be governed by the provisions of this Law. Insurance Compensation Consortium in so far as they do not object to the provisions of this Law.

Two. Mediation companies established prior to the entry into force of this Law shall have a period of one year from the date of entry into force to adapt their legal regime to the amendments made to the Law on the Production of Private insurance under the fifth article of this Law.

Second.

Any modification or extension of the Legal Defense Insurance contracts concluded prior to the entry into force of this Law shall be in accordance with the provisions of the Seventh Additional Disposition of Law 33/1984, of 2 August, on the Management of Private Insurance, and the provisions of the " Ninth Section. Legal Defense Insurance " of Title II of Law 50/1980, of October 8, of Insurance Contract.

REPEAL PROVISION

Any provisions of equal or lower rank shall be repealed as set out in this Law, and in particular:

1. The Law of 16 December 1954 establishing the Autonomous Body of Insurance Compensation Consortium.

2. Decree-Law 18/1964 of 3 October, a regulator of the National Circulation Risk Guarantee Fund.

3. Articles 59, 60, 61 and 62 of Law 25/1964 of 29 April, Regulatory of Nuclear Energy.

4. The Additional Provision First of Law 87/1978 of 28 December on Combined Agricultural Insurance.

5. Articles 19, 24, 25, 28, 29 and the Fourth Transitional Provision of Law 81/1968 of 5 December on Forest Fires.

6. Article 13 of Law 122/1962 of 24 December on the use and movement of motor vehicles, in accordance with the wording given to it by the recast text approved by Decree 632/1968 of 21 March. and the Final Disposition Third of Royal Decree 1301/1986 of 28 June, adapting the recast text of the Law on the Use and Circulation of Motor Vehicles to the Community legal order.

FINAL PROVISIONS

First.

1. Within one year of the publication of this Law, the Government, by means of a Legislative Decree, shall publish a recast of the provisions relating to Law 33/1984 of 2 August on the Management of Private Insurance, as amended by The Royal Decree of Law 1255/1986 of 6 June, and this Law, and those of the Ordination of Insurance, dedicates Law 26/1988, of July 29, on Discipline and Intervention of Credit Entities.

2. The Government, acting on a proposal from the Minister for Economic Affairs and Finance, shall make the necessary arrangements for the development and implementation of the provisions of the first, second, fourth and fifth articles of this Law, with the right to case, in order to introduce into the current rules of application to the Autonomous Body of Insurance Compensation Consortium the modifications that result from the ones introduced in this Law.

Second.

This Law shall enter into force on the day following that of its publication in the "Official Gazette of the State", with the exception of the rules contained in its fourth article. Additional Provisions, First Transitional Provision and Derogation Provision, which will do so on 1 January 1991.

Therefore,

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

Madrid, December 19, 1990.

JOHN CARLOS R.

The President of the Government,

FELIPE GONZÁLEZ MARQUEZ