Law 20/2015, On July 14, Management, Supervision And Solvency Of Insurance And Reinsurance Entities.

Original Language Title: Ley 20/2015, de 14 de julio, de ordenación, supervisión y solvencia de las entidades aseguradoras y reaseguradoras.

Read the untranslated law here: http://www.boe.es/buscar/doc.php?id=BOE-A-2015-7897

FELIPE VI King of Spain to all that the present join together and act.

Know: that the Cortes General have approved and I come in sanction the following law.

Table of contents preliminary title. General provisions.

Chapter i. Purpose and scope of application.

Article 1. Object and purpose of the law.

Article 2. Scope subjective in application.

Article 3. Objective scope of application.

Article 4. Activities excluded.

Article 5. Operations forbidden to those entities insurance.

Chapter II. Definitions.

Article 6. Entities.

Article 7. National supervisory authority.

Article 8. Member State of origin, Member State of reception and activities under law of establishment and free provision of services.

Article 9. Relations of participation or control between entities.

Article 10. Regulated markets.

Article 11. Great risks.

Article 12. Community co-insurance.

Article 13. System of Government and outsourcing functions.

Article 14. Risks.

Article 15. Measures of sanitation and winding-up proceedings.

Title i. bodies monitoring and competency.

Chapter i. Competencies of the General Administration of the State.

Article 16. Powers of supervision of the General Administration of the State.

Article 17. Dirección General de Seguros y Fondos de Pensiones.

Article 18. Advisory Board of insurance and pension funds.

Chapter II. Powers of the autonomous communities.

Article 19. Distribution of powers.

Title II. Access to insurance and reinsurance activity.

Chapter i. Access to the activity of the Spanish insurance and reinsurance entities.

Section 1 conditions for access to the activity.

Article 20. Administrative authorization.

Article 21. Scope of the authorisation.

Section 2 requirements for the authorization.

Article 22. General requirements for the approval of insurance and reinsurance companies.

Article 23. Refusal of authorisation.

Article 24. Operations carried out without administrative authorisation.

Article 25. Organizations and groups.

Article 26. Consultation prior to supervisory authorities.

Article 27. Nature, form and denomination of the insurance and reinsurance entities.

Article 28. Constitution.

Article 29. Denomination.

Article 30. Registered office.

Article 31. Social object.

Article 32. Program of activities.

Article 33. Social capital.

Article 34. Mutual Fund.

Article 35. Limitations on the distribution of dividends, levies or any other type of remuneration linked to social capital.

Article 36. Partners.

Article 37. Close ties.

Article 38. Good repute and ability of those who exercise the effective address or perform functions that integrate the system of Government of the entity.

Article 39. Responsibility and duties of the bodies of administration or management of the insurance or reinsurance entities.

Article 40. Administrative register.

Section 3 mutual insurance societies, cooperative insurance and provident mutual.

Article 41. Mutual insurance.

Article 42. Insurance cooperatives.

Article 43. Provident mutual.

Article 44. Scope of coverage and benefits of mutual social welfare organizations.

Article 45. Mutualities of forecast authorized to operate by classes of insurance.

Section 4 activities of Spanish insurance and reinsurance entities under law of establishment and free provision of services in the European Union.

Article 46. Spanish banks that can operate in the European Union.

Article 47. Conditions for the establishment of branches.

Article 48. Communication to operate on free provision of services.

Article 49. Statistical information relating to cross-border activities of the Spanish insurance companies.

Section 5th activities of Spanish insurance and reinsurance entities in third countries.

Article 50. Creation of entities and other operations in third countries.

Chapter II. Access to activity in Spain of insurance and reinsurance entities of other States of the European Union.

Section 1 General provisions for insurance and reinsurance companies.

Article 51. Insurance companies and reinsurance companies from other Member States which can operate in Spain.

Article 52. Observance of the legal provisions by insurance and reinsurance entities operating in Spain under law of establishment or free provision of services.

Article 53. Taxes and surcharges.

Article 54. In terrestrial motor vehicles liability insurance.

Section 2 activity under law for the establishment of insurance and reinsurance entities domiciled in other Member States.

Article 55. Conditions for access to the activity by way of establishment.

Article 56. Supervision of branches in Spain by the authorities of the State of origin.

Section 3 activity in the free provision of services of insurance and reinsurance entities domiciled in other Member States.

Article 57. Conditions for access to the activity by way of freedom to provide services.

Article 58. Specific requirements for land motor vehicle civil liability insurance.

Article 59. Tax obligations.

Article 60. Subscription agencies.

Chapter III. Access to activity in Spain of insurance and reinsurance entities of third countries.

Section 1 insurance entities of third countries.

Article 61. Authorization of branches of insurance companies from third countries.

Article 62. Limitations on activity in Spain of the insurance entities of third countries.

Section 2 reinsurance entities in third countries.

Article 63. Branches of reinsurance entities in third countries.

Article 64. Activity in Spain of the reinsurance entities in third countries from the country of origin.

Title III. Exercise of the activity.

Chapter i. System of government entities insurance and reinsurance companies.

Article 65. General system of government requirements.

Article 66. System of internal assessment of risks and solvency, risk management, internal control and system of government functions.

Article 67. Outsourcing of functions.

Chapter II. Valuation of assets and liabilities, financial guarantees and investments.

Section 1 assessment of assets and liabilities, and rules on technical provisions.

Article 68. Valuation of assets and liabilities.

Article 69. Technical provisions.

Article 70. Demand and increase of the amount of the technical provisions.

Section 2 own funds.

Article 71. Determination of own funds.

Article 72. Classification of own funds into levels.

Article 73. Eligibility of own funds.

Section 3 of solvency Capital requirements.

Article 74. Calculation of the capital of solvency required.

Article 75. Methods of calculation of the capital of solvency required.

Article 76. Requirement of capital for solvency required additional.

Article 77. Responsibility of the organ of administration in relation to those models internal.

Section 4 Capital minimum mandatory.

Article 78. Minimum capital requirements.

Section 5th investments.

Article 79. Rules on investments of the entities insurance and reinsurance companies.

Chapter III. Information public on the situation financial and of solvency.

Article 80. Report on the situation financial and of solvency.

Article 81. Dispensing of disclosure of information in the report about the situation financial and of solvency.

Article 82. The report on the financial situation and solvency and additional voluntary information updates.

Chapter IV. Accounting obligations.

Article 83. Accounting of insurance and reinsurance entities.

Article 84. Formulation of consolidated financial of the Group of insurance and reinsurance companies.

Chapter V. regime of stakes in insurance and reinsurance companies.

Article 85. Obligations concerning the acquisition of stakes in insurance and reinsurance companies.

Article 86. Effects of the non-compliance.

Article 87. Obligations relating to the reduction of a participation meaningful on an entity insurance or reinsurance.

Article 88. Obligations of information additional.

Chapter VI. Operation corporate.

Section 1 transfer of portfolio.

Article 89. Transfer of portfolio between insurance companies.

Section 2 amendments structural.

Article 90. Modifications structural.

Article 91. So-called exceptional of modifications structural.

Section 3 amendments bylaws.

Article 92. Modifications statutory.

Section 4 groups and unions temporary of entities insurance or reinsurance.

Article 93. Groups of interest economic and unions temporary of entities insurance or reinsurance.

Chapter VII. Behavior of market.

Section 1 policy and rates.

Article 94. Rates of raw and bases techniques.

Article 95. Control of those policies, rates and documentation technical of the activity.

Section 2 duty of information.

Article 96. General duty of informing the policyholder.

Section 3-dispute resolution mechanisms. Other provisions.

Article 97. Mechanisms of conflict resolution.


Article 98. Advertising.

Article 99. Protection of personal data.

Article 100. Fight against fraud in insurance.

Chapter VIII. Special solvency regime.

Article 101. Scope of application.

Article 102. Conditions for exercise of the entities subject to the special system.

Chapter IX. Community co-insurance. Reinsurance limited.

Article 103. Regime of Community co-insurance.

Article 104. Technical provisions of Community co-insurance.

Article 105. Reinsurance limited.

Chapter x. Conditions relating to the exercise of the activity by subsidiaries of insurance companies and reinsurance companies from third countries.

Article 106. Financial guarantees of the branches of insurance and reinsurance entities domiciled in third countries.

Article 107. Regime of branches domiciled entities in third countries authorized in several Member States.

Article 108. Equivalence of the regime of solvency of the reinsurance entities in third countries.

Title IV. Supervision of insurance and reinsurance companies.

Chapter i. General principles.

Article 109. Subjective and objective scope of supervision.

Article 110. Proportionality of the actions of the General Directorate of insurance and pension funds.

Article 111. Transparency of supervisory action.

Article 112. Convergence of supervisory practices.

Article 113. General powers of supervision.

Article 114. Information that should facilitate it for the purposes of monitoring, statistical and accounting.

Article 115. Supervision of entities insurance and reinsurance of the Union European that operate in Spain in regime of right of establishment or of free provision of services.

Article 116. Supervision of branches Spanish established in another State member.

Chapter II. Monitoring financial.

Article 117. Content of the supervision financial.

Chapter III. Supervision of conduct of market.

Article 118. Content of the supervision of conduct of market.

Article 119. Protection administrative.

Article 120. Prohibition of policies and rates.

Chapter IV. Supervision by inspection.

Article 121. Performances of inspection.

Article 122. Subject of the activity Inspector.

Article 123. Staff inspector.

Article 124. Inspection powers.

Article 125. Documentation of the review proceedings.

Article 126. Procedure of supervision by inspection.

Chapter V. duty of professional secrecy and use of confidential information.

Article 127. Duty of professional secrecy.

Article 128. Exchange of confidential information.

Article 129. Cooperation with the European authority of insurance and retirement pensions.

Article 130. Cooperation agreements with third countries.

Title V. Supervision of insurance and reinsurance groups.

Chapter i. General provisions on groups.

Article 131. Definitions and rules on the supervision of insurance and reinsurance groups.

Article 132. Subject to oversight groups.

Article 133. Scope of the group supervision.

Chapter II. Exercise of group supervision.

Section 1 functions and powers of the General Directorate of insurance and pension funds as a group supervisor.

Article 134. Performance of the duties of the Group supervisor by the General Directorate of insurance and pension funds.

Article 135. Powers of the General Directorate of insurance and pension funds as a group supervisor. College of supervisors.

Article 136. Access to information and verification.

Section 2 cooperation with other supervisory authorities.

Article 137. Call for proposals and consultation between supervisory authorities.

Article 138. Information requested to other authorities supervising.

Article 139. Cooperation with the authorities supervising of them entities of credit and of companies of services of investment.

Section 3 levels of supervision.

Article 140. Entity array last in the Union European.

Article 141. Subgroup national of entities insurance or reinsurance.

Article 142. Subset of entities that understand subgroups national of several States members.

Chapter III. Financial situation of the group.

Section 1 of group solvency.

Article 143. Supervision of the solvency of the group.

Article 144. Report on the financial situation and solvency at group level.

Article 145. Calculation of the solvency at the level of Group of participating entities.

Article 146. Calculation of the solvency of the consolidated Group: accounting consolidation-based method.

Article 147. Consolidated Group and insurance and reinsurance entities of the Group internal model.

Article 148. Required solvency capital requirement further consolidated.

Article 149. Deduction and aggregation method.

Article 150. Groups with centralized risk management regime.

Section 2 of intra-group transactions and risk concentration.

Article 151. Supervision of intra-group transactions and risk concentration.

Section 3 risk management and internal control.

Article 152. Supervision of the system of Government of the group.

Section 4 non-compliance with the solvency of the group.

Article 153. Measures to deal with non-compliance.

Chapter IV. Groups with parent entities outside the European Union.

Article 154. Verification of equivalence.

Title VI. Situations of financial deterioration. Special control measures.

Chapter i. Deteriorating financial situations.

Article 155. Deterioration in financial institutions insurance and reinsurance companies.

Article 156. Non-compliance with respect to the solvency capital requirements.

Article 157. Non-compliance with respect to minimum capital requirements.

Article 158. Content of the plan.

Chapter II. Special control measures.

Article 159. Situations that give rise to the adoption of special control measures.

Article 160. Measures of special control that can be taken.

Article 161. Additional special control measures.

Article 162. Collaboration of the Consorcio de Compensación de Seguros in the implementation of special control measures.

Article 163. Intervention of the insurance company.

Article 164. Procedure for adoption of special control measures.

Article 165. Interim replacement of the administrative bodies.

Article 166. Effects of the measures of control in other Member States.

Article 167. Measures taken with respect to insurance companies domiciled in other Member States.

Article 168. Bankruptcy proceedings.

Title VII. Revocation, dissolution and liquidation.

Chapter i. Revocation of administrative authorization.

Article 169. Causes of revocation and its effects.

Article 170. Revocation of the administrative authorization to insurance companies domiciled in other Member States.

Article 171. Revocation of the administrative authorization of branches of entities domiciled in third countries.

Chapter II. Dissolution and liquidation of insurance and reinsurance companies.

Section 1 dissolution.

Article 172. Causes of dissolution.

Article 173. Agreement for dissolution.

Article 174. Administrative dissolution.

Section 2 settlement.

Article 175. General rules of liquidation.

Article 176. Effects in other States members of the liquidation of entities Spanish.

Article 177. Effects in Spain of the liquidation of entities insurance domiciled in other States members and that operate in Spain in regime of right of establishment or of free provision of services.

Article 178. Supervision of the liquidation.

Article 179. Protection of those credits by contract of insurance.

Article 180. Regime legal of the liquidators.

Article 181. The process of liquidation.

Article 182. Effects on the actions against entities insurance in liquidation.

Section 3 settlement by the consortium of compensation of insurance.

Article 183. Performance of the consortium of compensation of insurance in the liquidation of the entities insurance and reinsurance.

Article 184. Rules general substantive.

Article 185. General rules of procedure.

Article 186. Buying credits from resources of the Consorcio de Compensación de Seguros.

Article 187. Payments charged to the resources of the entity.

Article 188. General meeting of creditors.

Article 189. Performance of the Consorcio de Compensación de Seguros in the bankruptcy proceedings.

Title VIII. Offences and penalties.

Chapter i. Infractions.

Article 190. Offenders subjects.

Article 191. Responsibility of participants, liquidators or charges of administration and direction.

Article 192. Authority sanctioning with regard to entities insurers domiciled in other States members.

Article 193. Kinds of violations.

Article 194. Very serious offences.

Article 195. Offences serious.

Article 196. Minor offences.

Article 197. Prescription of infringements.

Chapter II. Sanctions.

Article 198. Administrative sanctions on entities by very serious offences.

Article 199. Penalties administrative to the entities by offenses serious.

Article 200. Administrative sanctions on entities for minor offences.

Article 201. Liability in case of merger, assignment global of active and passive or excision.


Article 202. Penalties for very serious offences committed by partners, liquidators, who, under any title, exercise effective direction and those who perform the functions that integrate the system of Government.

Article 203. Penalties for serious offences committed by partners, liquidators, who, under any title, exercise effective direction and those who perform the functions that integrate the system of Government.

Article 204. Penalties for minor offences committed by partners, liquidators, who, under any title, exercise effective direction and those who perform the functions that integrate the system of Government.

Article 205. Criteria of graduation of sanctions.

Article 206. Measures inherent in the imposition of administrative sanctions.

Article 207. Concurrence of procedures administrative and processes criminal.

Article 208. Activities and use of names reserved for insurance and reinsurance entities.

Article 209. Prescription of the sanctions.

Chapter III. Procedure penalties.

Article 210. Regulation of the sanctioning procedure.

Article 211. Public complaint.

Article 212. Administrative skills.

Article 213. Deadlines.

First additional provision. Regime applicable to the States of the European economic area that do not form part of the European Union.

Second additional provision. Establishment and information about insurance mandatory.

Third additional provision. Validity of the administrative authorisation throughout the European Union.

Fourth additional provision. Validity of the authorizations of extension of benefits awarded to social welfare mutuals.

Fifth additional provision. Information to the European Commission and the European authority of insurance and retirement pension on difficulties of Spanish insurance or reinsurance entities.

Sixth additional provision. Special purpose entities.

Seventh additional provision. Review of amounts expressed in euro.

The eighth additional provision. Obligations of the Auditors of the accounts of insurance and reinsurance entities.

Ninth additional provision. Insurance Actuaries.

Tenth additional provision. Experts from Insurance Commissioners of breakdowns and faults of liquidators.

Eleventh additional provision. Concerts of insurance companies with the administration of the Social security agencies.

Twelfth additional provision. Communications between supervisors in the field of sanctions.

Thirteenth additional provision. Surety in favour of government insurance.

Fourteenth additional provision. Additional obligations of information of the insurance companies operating in the field of fire and natural elements.

Fifteenth additional provision. Technical bases and calibration of the funeral insurance risks.

Sixteenth additional provision. Progressive introduction of authorisations established by this law and other measures of adaptation to Solvency II.

Seventeenth additional provision. Obligation of communication by electronic means.

Eighteenth additional provision. Scheme of calculation of technical provisions for accounting purposes.

Nineteenth additional provision. Regulatory referrals.

Provision additional twenty. Reallocation of resources.

First transitional provision. Regime of the mutual insurance, mutual social welfare and cooperatives to prima variable.

Second transitional provision. Transitional arrangements for adapting to the minimum amounts of capital stock and mutual fund.

Third transitional provision. Administrative procedures in course.

Fourth transitional provision. Transitional regime in the conditions of exercise of mutual social welfare organizations that have not obtained the administrative authorisation for extension of benefits.

Fifth transitional provision. Regime of certain insurance operations carried out by mutual social welfare under cover of the consolidated text of the law of management and supervision of private insurance, approved by Royal Legislative Decree 6/2004, of 29 October. Except for limits to benefits in the form of capital.

Sixth transitional provision. Auxiliary advisers registered January 1, 2016.

Seventh transitional provision. Regime of the social benefits authorised to mutual benefit societies of social welfare under cover of the consolidated text of the law of management and supervision of private insurance, approved by Royal Legislative Decree 6/2004, of 29 October.

Eighth transitory provision. Transitional regime of the federations of social welfare mutual reinsurance activity.

Ninth transitional provision. Transitional regime of minimum capital requirements.

Tenth transitional provision. Scope of the special scheme of solvency.

Eleventh transitional provision. Insurance companies and reinsurance companies that do not sign new contracts from 1 January 2016.

Twelfth transitional provision. Temporary validity.

Thirteenth transitional provision. Transitional arrangements of the amendments made to the law of insurance contract through the first final provision of this law.

Repealing provision.

First final provision. Modification of law 50/1980, of 8 October, insurance contract.

Second final provision. Modification of law 13/1996 of 30 December, measures fiscal, administrative and Social order.

Third final provision. Modification of law 38/1999, of 5 November, of building management.

Fourth final provision. Modification of the revised text of the law of regulation of plans and pension funds, approved by Royal Legislative Decree 1/2002 of 29 November.

Fifth final provision. Modification of law 22/2003 of 9 July, bankruptcy.

Sixth final provision. Modification of the text revised regulatory law of local finances, approved by the Royal Decree 2/2004, of 5 March.

Seventh final disposition. Modification of the revised text of the law on the income of non-resident tax, approved by Royal Legislative Decree 5/2004, of 5 March.

Disposal the eighth. Modification of the text of the Legal Statute of the consortium of insurance compensation, approved by Royal Legislative Decree 7/2004 of 29 October.

Ninth final disposition. Modification of the Royal Legislative Decree 8/2004, of 29 October, which approves the revised text of the Act on civil liability and insurance in the circulation of motor vehicles.

Tenth final disposition. Modification of law 26/2006, of July 17, of insurance and reinsurance private mediation.

Eleventh final disposition. Modification of law 35/2006 of 28 November, personal income tax and partial modification of the tax laws tax, non-resident income and on capital.

Twelfth final provision. Modification of law 4/2014, from April 1, basic of Chambers of Commerce, industry, services and navigation officers.

Thirteenth final disposition. Modification of law 27/2014 November 27, from corporate income tax.

Fourteenth final disposition. Title competence.

15th final disposition. Incorporation of right of the Union European.

Sixteenth final disposition. Rules of procedures regulated by this law.

17th final disposition. Regulatory authority.

18th final disposition. Measure transient on the risk-free interest rates.

19th final disposition. Transitional measure concerning technical provisions.

20th final disposition. Other transitional measures.

Twenty first final provision. Entry into force.

Annex. Classes of insurance.

PREAMBLE I the role essential in the economy that play the sector financial and, in particular, the sector insurance, has justified historically a regulation and intervention public greater that in other sectors. Since the law of May 14, 1908, which started in Spain, management of private insurance, this regulation has been characterized historically by its role as trustee of policyholders, insured persons, beneficiaries and third parties of private insurance contracts. Insurance business involves the exchange of the present provision and true, the premium for a future and uncertain, the compensation provision. This situation requires to ensure that when eventually the loss that motivates the payment the insurance company is in a position to meet its obligation. This justifies that management and supervision of the insurance entities by public authorities is a matter of public interest, to check that they maintain a situation of sufficient solvency, enabling them to fulfill their purpose.

Text consolidated management and supervision of private insurance law, approved by Royal Legislative Decree 6/2004, of 29 October, until now existing, integrated of orderly and harmonised in a single text the provisions of law 30/1995, of 8 November, management and Supervision of private insurances, and the reforms which were subsequently introduced in this standard well motivated by the incorporation of rules of Community law, or by the need to adapt to the constant evolution of the insurance business.


At the time, the text consolidated has been modified by successive laws. In particular and of main form, by the law 5/2005, of 22 April, supervision of financial conglomerates and amending other laws in the financial sector; by law 13/2007, of July 2, oversight of reinsurance; and the law 5/2009, of 29 June, on reform of the system of significant participations in investment firms, credit institutions and insurance companies.

Finally it should be mention of the modifications carried out by the disposal fourteenth law 2/2011, 4 March, sustainable economy, which continue the line of development and consolidation of the regulation of private insurance.

The need for incorporation of the community of insurance law and adapting policy to the development of the insurance sector are also the raison d ' être of this law, collecting those provisions of Directive 2009/138/EC, of the European Parliament and of the Council of 25 November 2009 on life insurance, access to insurance and reinsurance activity and exercise (in later directive Solvency II) which require to be incorporated into a standard of legal rank, it is of significant changes in the scheme of supervision of insurance business. This directive has been fundamentally amended directive 2014/51/EU of the European Parliament and of the Council, of 16 April 2014, that amending directives 2003/71/EC and 2009/138/EC and regulations (EC) No. 1060 / 2009, (EU) No. 1094 / 2010 and (EU) No. 1095 / 2010 in regards to the powers of the European supervisory authority (European insurance and retirement pension authority) and the European authority monitoring (European Securities and markets authority) (directive Omnibus II).

The magnitude of all these changes have been advised to replace the current consolidated text of a new law that integrates, similarly to the recasting of normative community carried out by the Solvency II directive, the provisions that remain in force, the new solvency system and other rules which was considered necessary, taking into account developments in the insurance market.

Now well, the transposition of the directive not is ends in it law, because some of their provisions is incorporated to the normative Spanish through a regulation, in which is will develop, equally, some forecasts contained in this law, without prejudice of them measures of execution that dictate it Commission European.

II La directive Solvency II represents a notable exercise of harmonization, which aims to facilitate access to and exercise of the insurance business and reinsurance company in the European Union by removing the most important differences between the laws of the States members and, therefore, the establishment of a legal framework within which the entities insurance and reinsurance companies to operate in a single internal market.

The Solvency II directive articulates a conception of the solvency of insurance and reinsurance entities based on three pillars are mutually reinforcing. The first, consisting of uniform rules on capital requirements determined according to the risks incurred by institutions, in line with the developments achieved in the field of risk management and with recent in other financial sectors. Thus for the European insurance industry is adopted an approach based on risk, through the introduction of specific rules on economic capital. The second pillar consists of a new system of supervision with the aim of promoting the improvement of the internal management of the risks by the entities. The third refers to the demands of information and transparency towards the market on key aspects of the risks assumed by institutions and way of management.

In addition to the introduction of the new risk-based solvency system and changes that this requires in the way of management of entities and the performance of the supervisory authorities, the Solvency II directive performs a consolidation, recasting of the rest of the European system for private insurance, except with respect to automobile insurance incorporating the contents contained in the directives that already had been transposed in due course to the Spanish law of insurance, as for example, Directive 2001/17/EC of the European Parliament and of the Council of 19 March 2001 on the sanitation and the liquidation of insurance companies.

The scheme has been completed with the regulatory developments and the implementing measures flowing from the new supervisory structure designed in this field in the European Union by the establishment of the European authority of insurance and retirement pensions, by Regulation (EC) No. 1094 / 2010, on 24 November, the European Parliament and the Council, whereby creating a European supervisory authority (European insurance and retirement pension authority) , the Decision amending 716/2009/EC and repealing Decision 2009/79/EC of the Commission, which attributed important powers of coordination and decision-making in oversight and management of insurance and reinsurance, achieving greater regulatory harmonization and better international and intersectoral coordination.

The provisions contained in this Act and the regulations that develop it, result of the transposition of the Solvency II directive, are to be integrated with the regulatory developments and the implementing measures laid down by the European Commission and by the European authority of insurance and retirement pension (AESPJ) in a wide range of issues as the valuation of assets and liabilities technical provisions, own funds, the calculation of the solvency capital requirements, internal models, minimum capital requirements, investment rules, government system, the additional capital, supervisory information, the transparency of the supervisory authority, the solvency of the groups of entities as well as the determination of the equivalence of the regimes of third countries with the provisions of the Solvency II directive.

III it law is structure in a title preliminary and eight titles, twenty provisions additional, thirteen provisions transitional, a provision repealing, Blackjack provisions late and an annex.

He title preliminary sets its object, scope of application and the definitions applicable for the purposes of this law. You are identified as national supervisory authority to the General Directorate of insurance and pension funds, without prejudice to the supervisory powers and regulation expressly attributed to the Minister of economy and competitiveness in this law and in the rest of the legal system and skills which, in his case, corresponding to the autonomous communities.

He title I of the law is refers to the distribution of competences between the State and the communities autonomous. Certain functions that correspond to the Minister of economy and competitiveness are set and recognizes the General Directorate of insurance and pension funds regulatory capacity to issue circulars must be complied with in the field of supervision of insurance and reinsurance.

In order to achieve better protection of policyholders, insured persons and beneficiaries, and on the basis of article 149.1.6., 11th and 13th of the Constitution, this law contains the bases of the supervision of insurance and private reinsurance. This requires some uniformity in the rules governing the supervision of insurance business to facilitate the relation of a Spanish insurance companies with each other, with the based in the European Union and of all of them with the international markets. Therefore, given the financial importance of the insurance sector in the economy, the autonomous communities that have assumed competences in the field of supervision of insurance and private reinsurance must collaborate more closely among themselves and with the General Administration of the State.

IV the title II of the Act regulates the conditions for the administrative authorization as a prerequisite for access to the exercise of insurance business or reinsurer in terms similar to the of its legislative precedent.

It also regulates the legal regime of the mutual's insurance, credit insurance and provident mutual. However, for these entities remains in force the regime contained in the consolidated text of the law of management and supervision of private insurance, approved by Royal Legislative Decree 6/2004, of 29 October, until they rush a specific regulation of the mutual and, in particular, their legal status of dissolution, transformation, merger, Division and global transfer of assets and liabilities.


In relation to the conditions of exercise, this law regulates in title III the requirement of an effective system of government entities. This is one of the novelties of the Solvency II directive, which entails the recognition that some risks only be taken duly into account through requirements for government institutions and not through the quantitative requirements. The system of Government includes the fundamental functions of management of risk, compliance, actuarial and internal audit. This enumeration of functions and their regulation, which will be developed in more detail by law, does not preclude each entity decide freely the way to organize them or decide to articulate other additional functions.

Within its risk management all insurance and reinsurance entities must assume as usual, integrating it in your business strategy, internal and periodic evaluation of their overall solvency needs attending to your specific risk profile. Also, for purposes of transparency, insurance and reinsurance entities must give to know, by making it available to the public, at least once a year, the essential information about your financial situation and solvency.

V evaluation of the financial position of insurance and reinsurance entities should be based on sound economic principles, incorporating the information provided by the financial markets, as well as the available data on the risks involved in the process. According to this approach, capital requirements should be covered with own funds, which should be classified according to criteria of quality, safety and availability.

He capital of solvency mandatory is calibrated of such mode that is guarantees that all them risks quantifiable to which a company of safe or of reinsurance is exposed is have in has and will cover them activities existing and the new activities that is wait perform in them following twelve months. In relation to existing activity, it shall cover only unexpected losses. The solvency capital requirements will be equal to the value at risk of the own funds of a company of insurance or reinsurance, with a confidence level of 99.5% to a time horizon of one year.

In the area of Solvency II solvency capital requirements should involve two levels of demand. One, mandatory, variable solvency capital according to the risk assumed by the entity and based on a prospective calculation; the other, the minimum capital requirements, set as a minimum level of security below which should never drop the financial resources. Both capital requirements allow you to demarcate the gradual intervention of the supervisor to achieve a uniform level of protection of policyholders, insured persons and beneficiaries. The situation of normality is fulfilled when the entity with own funds of solvency capital requirements. Not reach the minimum capital requirements will mean expulsion from the market. For the inadequacies of the solvency capital requirements, the law establishes a scale adequate and progressive intensity of intervention by the supervisory authority.

For the calculation of the solvency capital requirements is set a standard formula that takes a modular approach, which evaluates first individual exposure to each risk category and then add the resulting values taking into account, where appropriate, the effect of correlations between the different modules of risks and providing simplified for its calculation methods. The standard formula for calculating the solvency capital requirements intended to reflect the risk profile of most of the insurance and reinsurance companies. However, it is possible that, in some cases, the standardised approach does not adequately reflects very specific risk of a company profile. For these cases is envisaged the possibility of use, prior authorization administrative, models internal, total or partial.

Additionally, the normative expected others alleged of authorization administrative such as the use of parameters specific, funds own complementary and adjustments by marriage in the calculation of the provision technical. This implies the need to strengthen the resources of the authority of national supervision, the General Directorate of insurance and pension funds.

Provides a special regime of solvency for those entities that do not exceed the thresholds that are regulated by law. These entities are excluded of the regime general of Solvency II, by what is les apply certain peculiarities with regard to the requirements of solvency, system of Government and requirements of information to the supervisor that is will develop by via regulatory. To difference of the entities subject to the regime general, the entities that is host to the regime special of solvency only can act within the territory national. However the above, these entities may request voluntarily join the general regime. This special solvency regime is eligible for, also, other insurance entities with very specific characteristics.

Various precepts concerning market behaviour that must comply with the insurance companies are collected, among the conditions of exercise. Among them that discipline the rates of premiums, technical bases and services or customer service departments. In the context of the single market in insurance, this law guarantees that they can be traded in Spain insurance offered by entities from other Member States, provided that the legal provisions of general interest are met.

In the application of this law be taken into account the principle of proportionality, that you graduate the establishment of requirements and their complexity according to the risk profile of the entities and in particular, the nature, scale and complexity of the insurance or reinsurance operations carried out by the entities, as well as the risks inherent in its business model.

VI that the ultimate objective of the protection of policyholders, insured persons and beneficiaries can materialize in an effective manner, the legal provisions on the performance of insurance and reinsurance entities must be complemented adequately effective monitoring. Of this form, in the title IV is regulates the set of powers and faculties that permit to the authority supervisor Spanish of safe ensure by the exercise ordered of the activity, included them functions or activities outsourced. Especially regulates the supervision by inspection.

In order to ensure the effectiveness of the supervision, the measures taken must be proportionate to the nature, complexity and scale of the risks inherent to the activity of insurance or reinsurance entities.

Individually considered insurance and reinsurance entities constitute the essential element of monitoring. But unlike the previous legislation, this law gives a more substantive character, like supervised subjects, groups of insurance and reinsurance companies, regulated under title V.

A significant innovation in this area is the ability to create groups without linkage of capital, in particular groups of mutual insurance.

The supervision of the group will include the evaluation of its solvency, intra-group transactions and risk concentrations. The insurance companies and reinsurance companies belonging to a group must be also individually, with a system of effective Government which must be subject to monitoring.

The law sets the assumptions that will be responsible for the General Directorate of insurance and pension funds being the supervisor of an international group, as well as the powers of coordination and decision in this case corresponding. The colleges of supervisors that include mechanisms of cooperation, exchange of information and consultation between supervisory authorities are also regulated.

In any case, both for the supervision of individual and groups of entities entities, the law assumes as I guiding principle the convergence of activity European supervisory tools and supervisory practices, attributing to the European authority of insurance and retirement pension (AESPJ) an important role in its articulation.

VII the title VI of the Act contains mechanisms that has supervisory authority to deal with situations of deterioration in financial institutions, including measures of special control, the title VII procedures for revocation, dissolution and liquidation and, finally, title VIII violations and sanctions regime.

Terms of liquidation of insurance companies clarifies that the rules are mandatory, the concept of creditor is required by contract of insurance with special privilege and recognising the mutual and cooperative the same rights as members of the capital companies, especially the right to information and participation in heritage resulting from the liquidation.

The law meets the possible confluence of special measures with the bankruptcy proceedings, establishing that entities subject to the first may not request judicial declaration of insolvency. In addition, the judge, before admitting the contest, has to ask the General Directorate of insurance and pension funds report on the situation of the insurance company.


Liquidations by the Consorcio de Compensación de Seguros introduces certain modifications concerning the purchase of credits with charge to the resources, especially in relation to the claims you can expect, to be regulated also their participation in bankruptcy procedures.

Regarding the regime of offences and penalties, offenders types conform to the new requirements of access and exercise activity, limits on the sanctions are set accurately in the form of fine and incorporated concerning the sanctioning procedure.

VIII by the additional provisions set, among other matters, that the compulsory insurance shall be established by a rule of legal rank. Includes the possibility of special purpose entities to request administrative authorization for the exercise of their activities in Spain. Is set the obligations of them Auditors of accounts in relation to the entities insurance and reinsurance. Include rules on professions related to the insurance business such as Actuaries of insurance and insurance, Commissioners of faults and liquidators of troubleshooting experts. Requirements are established so that the suretyship insurance is acceptable as collateral before the public administrations. In addition, sets the obligation of the insurance companies operating in the field of fire and natural elements provide specific information to facilitate the settlement and collection of fees for the maintenance of the service of prevention and extinguishing of fires and the special contributions for the establishment or expansion of firefighting services. Refers to statutory regulation simplified arrangements for insurance of deaths in terms of technical basis, provisions and solvency capital requirements. Establishes the date from which the insurance entities may submit applications that require approval by the supervisor, and the powers conferred to the General Directorate of insurance and pension funds related to the monitoring of the groups of entities on certain aspects to the General Directorate of insurance and pension funds. Two new informational functions entrusted to the Consorcio de Compensación de Seguros: on the one hand, the management of the new mandatory insurance registration; the collection and provision of information concerning coverage of the field of fire for the purpose of improving the settlement and collection of fees for the provision of the service of fire and special contributions for the establishment or expansion of the fire service. Finally, establishes that the obligation of communication with the General Directorate of insurance and pension funds through electronic means can be established through circular.

Regarding the final provisions, are, among other, modifications that affect the insurance contract Act to specify that, in personal insurance, the insured or policyholder has no obligation to communicate the variation of the circumstances regarding the State of health of the insured, which in any case shall be deemed aggravation of risk. Deaths and dependency insurance are regulated for the first time in this standard and the free choice of the service provider in the insurance market deaths, health care and dependence is reinforced.

Law 13/1996 of 30 December, measures fiscal, administrative and Social order and law 35/2006 of 28 November, personal income tax and partial modification of the laws of taxes on income of non-residents and heritage societies, should be modified to fit all of them as provided in the judgment of the Court of Justice of the European Union , 11 December 2014 in the case C-678/11, that has been declared contrary to the European regulations the obligation to appoint a representative in Spain for tax purposes by pension funds domiciled in another Member State of the European Union which develop employment pension plans subject to the Spanish law, and of the insurance entities domiciled in another Member State operating in Spain of free provision of services in Spain.

Is introduces in the law of management of the building, as alternative to the subscription mandatory of a safe, the obtaining of a warranty financial that allow cover the same risk. Also, is dota of a greater security legal to the position of the acquirer of the housing facing the promoter, eliminating is, among others aspects, the regime current based in a system dual of policies (policies collective and certified individual of safe of surety). Also introduces modifications concerning the perception of amounts on account of the price during the construction of the law of building management.

Is reform the text consolidated of the law of regulation of them plans and funds of inns for improve it regulation of them funds of Inns open, expanding their possibilities operational, to favor them economies of scale and the diversification of them political of investment and of the management of investments. Is addresses the regulation of the Commission of control of the Fund open of employment, and finally is sets that in them mutual of forecast Social that act as system alternative to the high in the regime special of it security Social of them workers by has own or autonomous, not is may do effective them rights economic of them products or safe used for such function in them alleged of liquidity provided.

By what terms to the consortium of compensation of safe, is introduce modifications that affect, in first place to your status Legal. Emphasizes the extension of the surcharge of the extraordinary insurance compulsory insurance of civil liability of motor vehicles, which will result in the corresponding coverage. Likewise, enabled the consortium to inform creditors by contract of insurance in relation to the processes of winding-up of insurance companies domiciled in another Member State of the European Union in which exclusively affect the insurance contracts that had been carried out in Spain. In terms of liquidation of insurance companies by the Consorcio de Compensación de Seguros in relation to the substantive rules and procedural modifications are introduced to reinforce the mechanisms of administrative liquidation for the benefit of creditors by insurance contract. Finally, the regulation of the activities of the Consortium in the bankruptcy proceedings, is updated for matching it to the modifications in law 22/2003, of July 9, bankruptcy. Establishes compulsory accession to the conventions of direct compensation regulated by Royal Decree 8/2004, of 29 October, which approves the revised text of the law on civil liability and insurance in the circulation of motor, damage to vehicles. To expedite assistance to the injured parties in traffic, the insurance entities may adhere to sectoral agreements of healthcare for injured of traffic as well as conventions of direct compensation for personal injury.

Amending the Law 26/2006, of July 17, mediation of insurance and private reinsurance. It suppresses the registration of auxiliary advisors. Unifying the terminology of the auxiliary, changing its name to «contributor», eliminating the difference between external auxiliary and Assistant Adviser and establishing the functions of the contributor, as well as the fact that advice or not, are determined in the contract between mediator and his collaborator. On the other hand the corridor, to carry out an objective analysis, must submit one sufficient number of contracts suitable to each operation.

Finally, reform the law 4/2014, from April 1, basic of the official Chambers of Commerce, industry, services and navigation, to regulate more broadly the assumptions of impossibility of normal functioning of the Chambers as a result of a financial imbalance.

PRELIMINARY title General provisions chapter I object and scope article 1. Object and purpose of the Act.

This law aims to the regulation and supervision of private insurance and reinsurance activity including the conditions of access to and exercise and the regime of solvency, sanitation and liquidation of insurance and reinsurance companies, entities with the aim of protecting the rights of policyholders, insured persons and beneficiaries, as well as to promote transparency and the proper development of the insurance business.

Article 2. Subjective scope of application.

They are subject to the provisions of this law: to) the insurance companies and reinsurers with head office in Spain, as well as branches established in Spain for insurance and reinsurance entities domiciled in third countries.

(b) the groups of entities insurance and reinsurance companies.

(c) the natural or legal persons which, under any title, play charges of administration or management of insurance and reinsurance entities.

(d) professionals and entities that perform any of the functions provided for in this Act or the complementary provisions of development.

(e) the liquidators of insurance and reinsurance companies.


(f) organizations established with intention of permanence for the distribution of the coverage of risks or the provision to the insurance companies and reinsurers from insurance business-related common services or reinsurer, any that is their nature and legal form.

(g) other persons for any prohibition or command is established in this law.

Article 3. Field goal of application.

1 are subject to the provisions of this law: to) the activities of direct insurance life and direct insurance other than life assurance.

(b) the reinsurance activities.

(c) the preparatory or complementary operations of the insurance that insurance and reinsurance entities.

(d) the damage prevention activities related to the insurance business.

(e) any other activities when it is expressly established in a standard of legal rank.

2 insurance and reinsurance activity shall be subject to the provisions of this law: a) when it is carried out by organizations, groups and persons referred to in article 2.

(b) to be performed in Spain by insurance and reinsurance entities domiciled in another Member State of the European Union (hereinafter, another Member State).

Article 4. Excluded activities.

1 are expressly excluded from the scope of application of this law under the general scheme and the special regimes that integrate the system of compulsory Social Security.

2 are not subject to this law, the following operations and activities: to) those of insurance of export credit on account or with the guarantee of the State, or where the State is the insurer.

(b)) reinsurance exercised or fully guaranteed by the Government of a Member State, where, for reasons of public interest to act as a reinsurer of last resort, including those circumstances that this action is required by a situation in the market such that it is not possible to obtain in adequate coverage.

(c) them of management of funds of Inns, governed by the text consolidated of the law of regulation of plans and funds of Inns, approved by the Royal Decree legislative 1 / 2002, of 29 of November, that will be reserved to them entities managing of funds of Inns.

d) those made by organisations without legal personality which have as their object the mutual guarantee of their members, without giving rise to payment of premiums or Constitution of technical reserves.

(e) those made by agencies forecast and assistance which grant variable benefits according to the resources available and which require their members a contribution to both lump sum.

(f) them made by organisms different from entities insurance whose object is supply to them workers, by has alien or by has own, grouped in the frame of a company or of a group of companies or of a sector professional or interprofessional, benefits in case of death, in case of life or in case of cessation or of reduction of activities , regardless of that the commitments that are of these operations are or not covered fully and in all time by provisions mathematics.

3. not will be subject to those titles I to V them entities insurance and reinsurance companies whose liquidation is has entrusted to the consortium of compensation of safe.

Article 5. Operations prohibited insurance entities.

1 prohibited insurance entities the following operations: to) that lack technical actuarial basis.

(b) any other commercial activity and the provision of guarantees other than those of the insurance business. Collaboration with no insurance companies for the distribution of the services produced by these means not included in this prohibition.

(c) the activities of mediation in private insurance defined in their specific regulations.

2. the realization by an insurance company of the activities provided for in this article will determine its nullity of void.

Chapter II definitions article 6. Entities.

Effects of provisions of this Act and the other provisions governing the supervision and contracting of private insurance, means: 1. insurance company: an entity authorized to conduct, as provided by this law or by the law of another Member State, activities of direct insurance life or direct insurance other than life assurance.

(2 captive insurance company: insurance company owned by a non-financial entity, or a financial institution that is an insurer or reinsurance entity or form part of a group of insurance companies or reinsurance, defined in article 131.1. f), and which aims to offer insurance cover exclusively for the risks of the entity or entities to which he belongs or of one or more entities of the group which is part.

3. entity insurance domiciled in a third country: an entity insurance that, if had his domicile social in some State Member, would be forced, with arrangement to them provisions of that State, to obtain an authorization to perform the activity insurance.

4. entity reinsurance: an entity that has received authorization with arrangement to it provisions in this law, or according to the legislation of another State Member, to perform activities of reinsurance.

(5 entity captive reinsurance: reinsurance entity owned by a non-financial entity, or a financial institution that is an insurer or reinsurance entity or form part of a group of insurance companies or reinsurance, defined in article 131.1. f), and which aims to offer reinsurance cover exclusively for the risks of the entity or entities to which he belongs or of one or more entities of the group which is part.

6. reinsurance company domiciled in a third country: an entity that, if it had its registered office in a Member State, would be obliged, pursuant to the provisions of that State, to obtain an authorization for the reinsurance activity.

7. reinsurance: The activity consisting in accepting risks ceded by an insurance company or a reinsurance entity, including insurance or reinsurance entities domiciled in third countries.

8. limited reinsurance: reinsurance in which the explicit maximum loss potential, expressed in terms of maximum economic risk transferred, derived both from a subscription risk significant as a temporary risk transfer, exceeds the premium during the entire period of the contract by an amount limited but significant, along with, at least one of the following characteristics (: a) explicit and material consideration of the time value of money.

(b) contractual provisions that moderate the balance of economic experience between the parties over time, in order to achieve the planned transfer of risk.

9 financial institution, any of the following: to) a credit institution, a financial company or a banking services company auxiliaries, as they are regulated in the rules of credit institutions.

((b) an insurance company, a reinsurance entity, or a holding company of insurance defined in article 131.1. i).

(c) an investment company or a financial company, are regulated according to the regulations for investment services.

(d) a mixed financial company holding pursuant to article 2.7 of the law 5/2005, of 22 April, supervision of financial conglomerates and amending other laws in the financial sector.

10 special purpose entity: entity, endowed or not legal personality other than an insurance company or existing reinsurance company, which assumes risks from insurance or reinsurance entities and fully finance their exposure to such risks through an issuance of debt or some other financing mechanism where the rights of reimbursement of providers of such debt or other financing mechanism are subordinated obligations of reinsurance by that entity.

11. central counterparty authorized: A central counterparty that has been authorized by the competent authority of the Member State in which is established or well, when is established in a third country, if it has been recognized by the European authority of securities and markets (AEVM).

12 external credit rating agency: A recognized, certified and registered credit rating agency as such or a central bank that issues credit ratings.

13. National Office: professional organization which is constituted pursuant to recommendation No. 5 adopted on 25 January 1949 by the Subcommittee on transport by road of the Committee on transport of the Economic Commission for Europe of the United Nations Organisation, and which brings together the insurance entities which have obtained a State authorization to operate in the field of liability in motor land vehicles.

In Spain it is national office the Spanish automobile insurers Bureau (OFESAUTO).

14 national guarantee fund: organization created by each Member State, in accordance with its own laws, regulations and administrative provisions which aims to repair, at least up to the limits of the insurance obligation, bodily or material damages caused by an unidentified vehicle or which has not been met the obligation of insurance.

In Spain it is guarantee the Consorcio de Compensación de Seguros National Fund.


Article 7. National supervisory authority.

For the purposes of the provisions in this Act and the other provisions governing the supervision and contracting of private insurance, supervisory authority means the national authority designated in accordance with the laws of your State to oversee insurance and reinsurance companies.

The national supervisory authority, empowered to monitor insurance companies and reinsurers in the terms of this law, is the General Directorate of insurance and pension funds, without prejudice to the powers attributed directly to the Minister of economy and competitiveness, and of competences which, where applicable, corresponding to the autonomous communities.

Article 8. Member State of origin, Member State of reception and activities under law of establishment and free provision of services.

(For the purposes of it established in this law and in the others provisions regulatory of the supervision and recruitment of them safe private, is means by: 1. State member of origin: to) the State member in that is located the domicile social of the entity insurance that cover the risk, in them safe different of the safe of life, or that contract the commitment , in the insurance of life.

b) the Member State in which is situated the registered office of the reinsurance entity, in the case of reinsurance.

(2. State member of host: to) the State Member, different of the of origin, in which is located the branch that cover the risk or contract the commitment.

(b) the State Member, distinct from the of origin, in that the entity insurance or reinsurance pay services; in case of insurance of life is understands by State member of provision of services that in which is contract the commitment, and in the case of insurance different of the of life that in which is located the risk.

3 Member State of location of risk: a) the Member State goods, are when the insurance relates to real estate, or these and its content, if the latter is covered by the same insurance policy.

Where the insurance relates to movable property that are in a building, and effects of taxes and surcharges legally required, the Member State in which is situated the building, even if it and its contents were not covered by the same insurance policy, except for goods in commercial transit.

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

(c) the Member State in which the policyholder has signed the contract, if their duration is less than or equal to four months and refers to risks arising during a trip or outside the usual address of the policyholder, any that is the affected branch.

(d) in all cases not expressly referred to in the earlier letters, one in which the policyholder has his habitual residence or, if it were a legal entity, one that is its registered office or the branch to which the contract relates.

4. Member State of the commitment: the Member State in which the policyholder has his habitual residence, if it is a physical person, or their registered office or a branch office, where the contract relates to the latter, if it is a legal person.

5 establishment: The head office or the Branch Office of an entity.

6. branch: Any establishment of an insurance or reinsurance entity that is located in the territory of a Member State other than that of origin.

Any permanent presence of an insurance company domiciled in another Member State, even though this presence does not take the form of a branch and is exercised through a managed office by its own personnel or an independent person, but with powers to act permanently on behalf of the insurance company as a branch would be assimilate to a branch office.

7. branches of entities insurance or reinsurance of third countries: all presence permanent in the territory of a State member of an entity insurance or reinsurance domiciled out of the Union European, that is authorized and perform operations of insurance or reinsurance in that State member.

8. right of establishment scheme: the activity in a Member State by a subsidiary established in it of an insurance or reinsurance company domiciled in another Member State.

9. free provision of services regime: activity developed by an insurance or reinsurance entity domiciled in one Member State from its registered office, or from a branch of the one in another Member State, covering a risk, contracting a commitment or carrying out reinsurance activities in a different Member State.

Article 9. Relations of participation or control between entities.

For the purposes of this Act and the other provisions governing the supervision and contracting of private insurance, and without prejudice to the provisions of article 131.1, refers to: 1. parent entity: the entity that holds or may hold, directly or indirectly, control of another or others.

2. subsidiary entity: the entity on which a parent company holds or may hold, directly or indirectly, control.

3. control: The relationship between a parent company and a subsidiary or a similar relationship between any natural or legal person and an undertaking, in the situations provided for in article 42 of the code of Commerce and its development provisions.

4. participation: The possession, directly or through a link control, a percentage equal to or greater than 20 per 100 of the voting rights or of the capital of a company.

5. meaningful participation in an insurance or reinsurance entity: the possession in an insurance company or reinsurer, directly or indirectly, of at least one 10 per 100 of the capital or of the voting rights or possible to exercise a significant influence over the management of the entity.

6. close links: any relationship between two or more natural or legal persons if they are linked through a participation or a controlling relationship. In addition, the situation in which two or more individuals or legal entities, among which is an insurance company or reinsurer, are linked, permanently, to the same natural or legal person by a controlling relationship.

7 participations in banks and credit: to) entries that have insurance and reinsurance companies: 1 credit institutions and financial institutions for the purposes of article 1 of the law 10/2014, on June 26, management, supervision and solvency of credit institutions;

2. companies of investment services for the purposes of article 62 of law 24/1988, of 28 July, the stock market.

((b) subordinated claims and instruments referred to in the second part, title I, Chapter 4, of Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms, and by which modifies Regulation (EU) No. 648/2012, holding companies insurance and reinsurance against the entities defined in the previous letter to) in those who have stakes.

Article 10. Regulated markets.

Effects of provisions in this law and other provisions governing the supervision and contracting of private insurance, means regulated markets: 1. Spanish official secondary markets defined in article 31 of the law 24/1988, of July 28, the stock market, and the recognized as markets regulated by the legislation of another Member State.

2. in the case of a market situated in a third country, which meets requirements comparable to the of regulated markets referred to in the preceding paragraph, and where the traded financial instruments have a comparable quality of the instruments dealt in on regulated markets within the European Union.

Article 11. Great risks.

A_efectos_de established in this law and the other provisions governing the supervision and contracting of private insurance, means big risks insurance contracts as follows: to) those of railway vehicles, aerial vehicles, marine, lacustrine and fluvial vehicles, transported goods (including luggage and other goods carried), civil liability in air vehicles (including carrier's liability) and the liability of maritime vehicles Lake and River (including the liability of the carrier).

(b) the credit and suretyship when the policyholder and the insured exercising professional activity industrial, commercial or liberal and the risk relates to such activity.

(c) for land vehicles (not railway) and natural elements, fire and other damage to property, civil liability in motor land vehicles (including carrier's liability), general liability and pecuniary loss different, provided that the policy-holder exceeds the limits of at least two of the three following criteria: total assets of the balance sheet: 6.200.000 euros.

Net amount of turnover: 12.800.000 euro.

Average number of employees during the financial year: 250 employees.


If the policyholder were part of a group of companies whose consolidated accounts be established pursuant to the provisions of articles 42 to 49 of the code of Commerce, the above criteria will be applied on the basis of the consolidated accounts.

Article 12. Community co-insurance.

For purposes of provisions in this law and the other provisions governing the supervision and contracting of private insurance, refers to community co-insurance operations which satisfy the following conditions: 1. that give rise to the coverage of one or more risks which may qualify as major risks.

2 participate in the coverage of risk several insurance companies, one of which will be the leading insurance company, not jointly, in quality of coaseguradoras, by means of a single contract, through a global premium and for same duration.

3 that it covered risks located in the European Union.

4. that the purpose of the coverage of the risk, the leading insurer insurance company enabled is to cover all of the risk.

5 that at least one of the entities coaseguradoras participates in the contract by means of its registered office or a branch established in a Member State other than the State of the leading insurance company.

6 the leading insurance entity fully assume the functions that correspond in the coinsurance and, in particular, determine the conditions of insurance and rating.

Article 13. System of Government and outsourcing of functions.

For the purposes of it established in this law and in them others provisions regulatory of the supervision of them safe private, is means by: 1. function: in a system of Government the capacity of an entity insurance or reinsurance to carry to out certain tasks of the Government of the entity.

2. Government of the entity system: organizational structure transparent and proper, with a clear distribution and an adequate separation of functions, an effective system to ensure the transmission of information, that will ensure the sound and prudent management of the activity and effective mechanisms of internal control of an insurance or reinsurance entity, which include the following fundamental functions: function of risk management , the function of verification of the compliance with, the function of audit internal and the function actuarial.

3. outsourcing of functions: any type of agreement celebrated between an entity insurance or reinsurance and a third, already is or not an entity subject to supervision, under which this, directly or by subcontracting, performs an activity or a function that, in other circumstances, had carried out the own entity insurance or reinsurance.

Article 14. Risks.

Effects of provisions of this Act and the other provisions governing the supervision and contracting of private insurance, means: 1. risk of subscription: the risk of loss, or of adverse change in the value of the obligations arising from the insurance business, because of the inadequacy of the pricing and provisioning assumptions.

2. market risk: the risk of loss or modification adverse financial situation resulting, directly or indirectly, from fluctuations in the level and volatility of the market prices for the assets, liabilities and instruments financial.

3. credit risk: the risk of loss or modification adverse financial situation resulting from fluctuations in the solvency of issuers of securities, counterparties and any debtors who are exposed the insurance companies and reinsurers, in the form of risk of default of the counterparty, risk of differential or concentration of market risk.

4. operational risk: the risk of loss resulting from the inadequacy or dysfunction of internal processes, staff or systems, or from external events.

5. liquidity risk: the risk that insurance and reinsurance entities may not make investments and other assets to meet its financial obligations at maturity.

6. concentration risk: any exposure to risks that entail a sufficiently significant potential loss for endangering the solvency or the financial position of insurance and reinsurance entities.

7 techniques of risk reduction: all that allow insurance and reinsurance entities to transfer a part or all of its risks to third parties.

8. effects of diversification: the reduction of the exhibition to the risk of them entities insurance and reinsurance, and of their groups, related with the diversification of their activities, and resulting of it possibility of compensate the result negative of a risk with the result more favorable of another risk, when not exist a total correlation between such risks.

9 forecast probability distribution: A mathematical function that assigns a probability of realization to a comprehensive set of mutually exclusive future events.

10. measurement of the risk: A function mathematical that assigns a value monetary to a certain forecast of distribution of probability and that grows monotonically with the level of exposure to the risk underlying to that forecast of distribution of probability.

Article 15. Measures of sanitation and winding-up proceedings.

For purposes of provisions in this law, and in the other provisions governing the supervision and contracting of private insurance, means: 1. competent authorities: the administrative or judicial authorities of the Member States competent in respect of measures of sanitation or winding-up proceedings.

2 measures of sanitation: those involving the performance of the competent authorities, are intended to maintain or restore the financial situation of the insurance or reinsurance entity which affect pre-existing rights of third parties the institution itself.

3 special control measures: those that involving the performance of the competent authorities, are intended to control and reverse the situation of financial damage or management of the entity and are necessary to safeguard the obligations arising from the contracts of insurance, reinsurance, as well as any other interests of the institution itself that affect its solvency or viability.

4. procedure of liquidation: the collective procedure involving the liquidation of assets and the distribution of the product of the liquidation among the creditors, shareholders or members as appropriate, and that involves some kind of administrative or legal action, whether or not based on the insolvency and voluntary or compulsory nature.

5. provisional administrator: any person or body appointed by the competent authorities of a Member State to administer reorganisation measures.

6. liquidator: all person u body named by the authorities competent or by them organs social of the entity insurance to manage them procedures of liquidation.

7 commitment by insurance contract: any commitment that an insurance company contract with policyholders, policyholders of insurance, beneficiaries or third parties harmed with a right of direct action against the insurance company, and that has its origin in an insurance contract or in any operation referred to in Annex B), letter to), paragraphs 2, 3 and 4 of this law, in the field of direct insurance including those that are still unaware of certain elements of the debt.

Title I monitoring bodies and competencies chapter I powers of the Administration General of State article 16. Powers of supervision of the General Administration of the State.

1. the powers of the General Administration of the State in the supervision of insurance and reinsurance entities and the orderly development of the insurance and reinsurance markets shall be exercised by the Minister of economy and competitiveness and the General Directorate of insurance and pension funds on the terms set in this law and its implementing rules , without prejudice to the functions that correspond to the autonomous communities in the field of its competences.

2 in the field of regulation and supervision of private insurance corresponds to the Minister of economy and competitiveness: a) authorize access to the insurance business and reinsurance company, and its repeal.

(b) authorise the calculation of the solvency capital requirements using an internal model.

(c) authorize the creation, modification and dissolution of mutual groups.

(d) adopt rules on market transparency and protection of the rights of users in the field of insurance.

(e) agree on the administrative dissolution of insurance and reinsurance entities and, where appropriate, instruct its liquidation the Consorcio de Compensación de Seguros.

f) imposing sanctions for infractions very serious in the terms set forth in title VIII.

(g) authorize transfers of portfolio, structural and modifications, where appropriate, groupings and joint insurance and reinsurance companies, entities regulated in chapter VI of title III, without prejudice to the provisions of law 15/2007, of 3 July, competition, in relation to the control of economic concentration, and in line with Community legislation.

(h) the exercise of those other powers which it has under this law and the rest of the legal system.


Article 17. Dirección General de Seguros y Fondos de Pensiones.

1. the General Directorate of insurance and pension funds will be part, as a supervisory authority Spanish, the European authority of insurance and retirement pension (AESPJ), pursuant to Regulation No. 1094 / 2010 of 24 November, the European Parliament and the Council, whereby a European supervisory authority is created.

In the exercise of supervisory functions assigned by this law and its implementing rules, the General Directorate of insurance and pension funds will analyse and if necessary take into consideration guidelines and recommendations emanating from the European authority of insurance and retirement pensions. When the General Directorate of insurance and pension funds apart from those guidelines or recommendations it shall by a motivated resolution.

2. the General Directorate of insurance and pension funds may issue provisions on development of insurance regulations that is contained in royal decrees or orders of the Minister of economy and competitiveness, provided that these standards enable you express mode to do this, previous report of the Advisory Board of insurance and pension funds.

Such provisions will receive the designation of circulars, will be processed by the regulated procedure in article 24 of the Law 50/1997, of 27 November, the Government, will be published in the «Official Gazette» and shall enter into force in accordance with the provisions of paragraph of article 2 of the Civil Code the first.

3. the General Directorate of insurance and pension funds, through its electronic office, will promote the dissemination of the information necessary to ensure the achievement of the purposes set out in this law, and the handling of procedures that incumbent electronically.

4. the General Directorate of insurance and pension funds shall draw up and publicized a report which reflect their activity supervisor and the general situation of insurance and pension funds market.

5. the resolutions issued by the General Directorate of insurance and pension funds in the exercise of administrative powers which are conferred upon him by this law shall be appealable to the Minister of economy and competitiveness, in accordance with the provisions of law 30/1992, of November 26, legal regime of public administrations and common administrative procedure.

Article 18. Advisory Board of insurance and pension funds.

1. the Advisory Board of insurance and pension funds is College administrative advisory body of the Ministry of economy and competitiveness in matters relating to the regulation and supervision of private insurance, reinsurance, plans and funds of pension and insurance and reinsurance mediation.

(2. corresponds to it Board Advisory of safe and funds of Inns: to) inform them projects of provisions of character general on materials directly related with them safe private, reinsurance, plans and funds of Inns and the mediation in insurance and reinsurance to make effective the principle of audience of them sectors affected in the procedure of elaboration of such provisions. The report that issue not be binding.

b) carry out studies and reports requested him by its Chairman.

((c) formulate recommendations General or of character particular in the materials indicated in the letter to) and in relation to them insurance mandatory.

3. the Advisory Board of insurance and pension funds will be chaired by the Director-General of insurance and funding pension and she will be part, as members, representatives from the General Administration of the State, insured and users, participants in plans from pensions, insurance companies, management of pension funds entities, mediators of insurance, business and trade union organizations, prestigious corporations related to the private insurance , Actuaries, experts of safe and Commissioners of troubleshooting, in the form and with the composition that regulations are determined.

In addition, the President may request the assistance of other persons or entities in condition of experts, depending on the nature of the issues being dealt with.

4. the Advisory Board of insurance and pension funds shall be convened in cases that the law provides for is to see him and when so decides it its President.

5. in the absence of the rules contained in this law and its regulation of development, as well as others that could be established to complement its regime and operation, the Advisory Board of insurance and pension funds will be governed by the rules on the functioning of the colleges provided for in law 30/1992, of 26 November, legal regime of public administrations and common administrative procedure , and by the other common administrative law provisions applicable to this type of organs.

Chapter II competence of the communities autonomous article 19. Distribution of powers.

1. the autonomous communities that have assumed responsibilities in the management of insurance companies and reinsurance companies, pursuant to their statutes of autonomy will have them with respect to those entities, whose registered office, scope of operations and location of the risks in the case of non-life, or assumption of commitments, in the case of life insurance (, confine to the territory of the respective autonomous community, in accordance with the following criteria: to) in the field of regulatory powers, corresponds les the legislative development of the basis for the management and supervision of insurance and reinsurance entities contained in this law and the basic regulations that complement it. In terms of insurance cooperatives and mutuals of social welfare, shall also have exclusive jurisdiction in regulating its organisation and functioning.

(b) in the field of implementing powers corresponding ordination and supervision of insurance companies and reinsurance companies granted to the General Administration of the State under this Act, except the powers of granting of the administrative authorization for the exercise of the insurance business, and its repeal, which shall be in any case reserved to the State, which will then , where appropriate, to the respective autonomous community. The references that are contained in this law to the Ministry of economy and competitiveness and the General Directorate of insurance and pension funds, be construed as references to the competent regional body, with the exception of those relating to Spanish institutions acting in the field of the European Union or European entities operating in Spain.

Also corresponds to the autonomous authorization of access to the insurance business insurance cooperatives and mutualities of social welfare as well as its reversal, following a report of the General Directorate of insurance and pension funds in both cases. The course of the maximum statutory period to resolve the procedure of authorization or revocation shall be suspended from the request until the reception of the report. This period of suspension shall not exceed in any case three months. The autonomous community shall inform the above-mentioned Directorate-General each authorisation granted, as well as its reversal.

2. the communities autonomous that with arrangement to their statutes of autonomy have assumed competences in matter of management and supervision of entities insurance them will have on them agencies of subscription that act exclusively by has of these.

3. for this purpose, the competent bodies of the autonomous communities shall, when it is requested by the General Directorate of insurance and pension and, in any case, funds annually, the information and documentation of each entity referred to in articles 80 and 114 of this Act and its regulatory development. In addition, the autonomous communities shall provide the General Directorate of insurance and pension funds access by electronic means to the information concerning their administrative records of insurance and reinsurance companies.

4. the General Directorate of insurance and pension funds and the competent bodies of the autonomous communities will maintain the necessary cooperation for the purpose of homogenizing the documentary information and coordinate their activities of monitoring.

Title II access to insurance and reinsurance activity chapter I access to the activity of the Spanish insurance and reinsurance entities section 1 conditions for access to the activity article 20. Administrative authorization.

1. the access to the activities defined in article 3(1) by insurance and reinsurance entities domiciled in Spain will be subject to obtaining prior administrative authorisation of the Minister of economy and competitiveness.

2 will also be accurate administrative authorisation in the following cases: a) to extend the activity of an insurance company to other classes other than those authorized.

(b) for the extension of an authorisation of an insurance entity covering only part of the risks included in a bouquet.

c) to allow an insurance company to carry on business in a territory of area exceeding the initially authorized.

(d) for the extension of the territorial scope of action or activity carried out by a reinsurance entity.


3. the application for approval will be presented at the General Directorate of insurance and pension funds and shall be accompanied by documents showing compliance with the requirements referred to in article 22 of this law and its development regulations. The term maximum to resolve the procedure of authorization and notify the resolution is of six months. After this deadline without having notified express resolution, petition shall be rejected.

4. the authorization granted by the Minister of economy and competitiveness will be valid throughout the European Union without prejudice to the provisions of article 21(1).

5. the authorisation shall determine the administrative registration regulated in article 40.

6. any authorisation granted to an insurance company or reinsurer to act throughout the national territory shall be communicated by the General Directorate of insurance and pension funds the authority European insurance and pensions for retirement so that authority include its name in the public list of approved insurance and reinsurance entities and keep updated the list.

Article 21. Scope of the authorisation.

1. the authorisation for the insurance companies shall be granted by ramos, according to the classification established in the annex to this law. It shall cover the entire class and the coverage of risks incidental or complementary, as appropriate.

The authorization will allow the insurance company exercise activities under law of establishment or in regime of free provision of services in the European Union, unless the applicant wishes to only cover part of the risks pertaining to the authorized class, carry on business in a territory of less than the national territorial area, or perform operations contained in article 46.2.

The insurance entities thus authorized may be accepted of reinsurance business in the same branches covering the authorization.

2. the authorization reinsurance entities shall be granted for activities of reinsurance of life, non-life reinsurance activities, for all types of reinsurance activities and will enable the reinsurance entity engage in regime of the right of establishment or of free provision of services in the European Union.

Reinsurance activity shall be exercised with total separation from policyholders and insurance policyholders.

Section 2 requirements for the obtaining of authorisation article 22. Requirements General of the authorization of entities insurance and reinsurance companies.

Requirements will be insurance and reinsurance entities domiciled in Spain to obtain and retain the administrative authorization as follows: 1. take one of the legal forms provided for in this law.

2. limit its object social to the activity insurance and reinsurance.

3. present and follow it to a program of activities.

4. dispose of the capital social or fund mutual minimum and of them funds own basic admissible to cover the minimum absolute of the capital minimum mandatory.

5 hold eligible basic own funds to cover the minimum capital requirements as well as own funds eligible to cover the solvency capital requirements at all times.

6 indicate contributions and participation in the capital stock or mutual fund of all partners. It must be written explicitly to which partners have control and which partners have the status of insurance company, credit institution or investment services company, as well as, where appropriate, entries, regardless of the amount, which is holder any partner in an insurance company, a credit institution or an investment services company.

7 report the existence of close links with other persons or entities.

8 who, under any title, exercising the effective address of the entity or perform the functions that integrate its system of Government, are people who meet the requirements of good repute and the necessary conditions of qualification and professional experience referred to in article 38.

9 have an effective system of Government which meets the requirements provided for in article 65.

Article 23. Refusal of authorisation.

1. the Minister of economy and competitiveness shall refuse authorization when the insurance or reinsurance entity not certifying compliance with the requirements in article 22.

2. the refusal will be by ministerial order, which shall be notified to the interested entity and will put an end to the administrative procedure.

Article 24. Operations carried out without administrative authorisation.

1 shall be null full of insurance contracts and other operations subject to this Act made by unauthorized entity, whose administrative authorization has been revoked, or that transgress the boundaries of the administrative authorisation granted.

2. who would have hired her shall not be obliged to comply with its obligation to pay the premium and will be entitled to a refund of the premium paid, except that, previously, an accident has taken place. If before such return is happening a loss covered by the contract if it had been valid, the entity that would have held it shall be obliged to satisfy damages whose amount shall be fixed in accordance with the rules governing the payment of the benefit under the contract of insurance, without prejudice to the duty to indemnify the remaining damages and damages that would have been able to cause.

This obligation will be solidarity between the entity and who, playing in the same charges of administration or management, have authorized or permitted the conclusion of such contracts or operations, without prejudice to the administrative infraction which would have incurred both the entity as mentioned administrators or directors.

3. the General Directorate of insurance and pension funds shall require any natural or legal person who, without having obtained the required authorization or violation the same limits, perform operations subject to this law, so that it cease immediately in the exercise of such activity, and remember the advertising that it deems necessary for the information of the public.

Article 25. Organizations and groups.

1. does not require prior administrative authorization organizations, equipped or not legal personality, created with character of permanence for the distribution of the coverage of risks among insurance companies or for the provision of common services related to its activity, as well as groups of insurance companies referred to in article 93, but in one case shall notify the General Directorate of insurance and pension funds in advance of a month to the initiation of the activity organized or grouped.

2. the above-mentioned Directorate-General may suspend the activities referred to in this article or require modifications in these, when you appreciate that they do not conform to the precepts of this law.

Article 26. Consultation prior to supervisory authorities.

It shall be subject to prior consultation with the competent supervisor of the relevant Member State authority, the authorisation of an insurance company or reinsurance company where any of the following circumstances: 1. that the new entity will be controlled by an insurance company or reinsurer, a credit institution, an investment services company or a management company of collective investment or pension funds institutions authorised in another Member State.

2 that your control will be exercised by the dominant undertaking of an insurance or reinsurance entity, of a credit institution, a service company of investment or a management company of collective investment or pension funds institutions, authorised in another Member State.

3 that your control will be exercised by the same natural or legal persons controlling an insurance or reinsurance entity, a credit institution, a service company of investment or a management company of collective investment or pension funds institutions, authorised in another Member State.

That consultation will reach, especially, to the evaluation of the fitness of them partners and to it repute, qualification and experience of who, low any title, exercise it address effective and of who play them functions that integrate the system of Government of the new entity or of the entity dominant, and may reiterate is for it evaluation continued of the compliance of such requirements from them entities insurance Spanish.

Article 27. Nature, form and denomination of the entities insurance and reinsurance companies.

1 the insurance business may only be carried out by private entities that adopt one of the following ways: to) sociedad anónima, b), c) mutual de seguros, d) cooperative society, e) cooperative society European company, f) provident mutual.

The mutual of safe, them societies cooperatives and the mutuals of forecast social only may operate to prima fixed.

2. the entities reinsurance companies must adopt the form legal of society anonymous or society anonymous European.


3. also entities that adopt any form of public law, provided that they have by object of insurance or reinsurance operations under conditions equivalent to of the insurance or reinsurance private entities may be insurance and reinsurance activity.

The entities referred to in the preceding paragraph shall comply with the provisions of this law, in the absence of special rules contained in their specific regulations, and shall be subject, in the exercise of its insurance business, insurance contract law and the jurisdiction of the courts of civil order.

Article 28. Constitution.

Insurance and reinsurance entities constitute by public deed, which shall be entered in the register. With this inscription anonymous, mutual insurance and social welfare mutual societies will acquire legal personality. Insurance cooperatives will acquire legal personality in accordance with their specific regulations.

Article 29. Denomination.

In the denomination social of them entities insurance and reinsurance is include them words «safe» or «reinsurance», or both at the same time, according to its object social, that are reserved in exclusive for these entities. Also are reserved them expressions «mutual of safe», «cooperative of safe» and «mutuals of forecast social», that must be included in your denomination by the entities of that nature.

Article 30. Service social.

1. the address social of them entities insurance and reinsurance must place is within the territory Spanish, when is halle in Spain the Centre of its effective administration and address, or their main establishment or exploitation.

2. the transfer of the address social of an entity insurance or reinsurance domiciled in Spain to the foreign must be authorized by the Minister of economy and competitiveness, prior publication of the agreement of transfer of domicile and the course of a month from the publication of the last advertisement warning to them takers of his right to communicate to it address General of safe and funds of Inns them reasons that , if any, might have to be non-conforming with the transfer. However, it can be dispensed with such public information when she is denied authorization by not qualify legally required.

3. the transfer of the registered office of an insurance company abroad should be subject to individual notification to policyholders. Individual notification must be informed on the supervisory authority which shall be subject the insurance company once the transfer of the registered office and on the right of policyholders to settle insurance contracts.

4. regulations shall be governed the procedure for transfer of residence laid down in the preceding paragraphs.

5. in the event of transfer to Spain of the registered office of an insurance or reinsurance entity domiciled abroad, will apply the provisions of article 20.

Article 31. Social object.

1. the purpose of the insurance entities will be solely the practice of operations of insurance and other activities defined in article 3.

2. the purpose of the insurance entities intending to operate in any mode of the branch of life will only be this class of insurance operations and covering additional risks of the branch of life. In addition, upon obtaining the relevant administrative authorisation, may perform operations on classes 1 (accidents) and 2 (illness), referred to in Annex A) .to) of this law, without submitting, in this case, to the limitations and conditions applicable to the coverage of additional risks.

3. the purpose of the insurance entities intending to operate in one of the classes of non-life direct insurance may not include operations of the branch of life. Still, if only they are authorized for the risks included in classes 1 (accidents) and 2 (disease), referred to in Annex A) .to) of this law, may operate in the field of life, if they obtain the relevant administrative authorisation.

4. the purpose of reinsurance entities shall be exclusively the activity of reinsurance and related operations. Related operations means the realization of statistical or actuarial studies, analysis of risks or research for its clients, as well as any other activity related or derived from reinsurance activity. They may be also included in the purpose of reinsurance entities, holding company functions and activities related to the financial sector.

Article 32. Program of activities.

The programme of activities is the document that includes the strategic plan of the business plan and shall contain indications or complete and appropriate justifications concerning all those requirements, forecasts, estimates and conditions or policies to be determined according to the rules.

Article 33. Social capital.

(1. them societies anonymous and cooperative of safe must have them following capital social minimum when intending to operate in them ramos that then is listed: to) 9.015.000 euros in them ramos of life, surety, credit, any of which cover the risk of liability civil and in the activity exclusively reinsurance.

(b) 2.103.000 euros in the ramos from accidents, disease, defence legal, assistance and deaths.

In the case of entities insurance that only practice the safe of disease giving benefits of assistance health and limit their activity to a field territorial with less than two million of inhabitants, will be enough it half of the capital or fund mutual planned in the paragraph previous.

(c) 3.005.000 euros, at those remaining.

2. the capital social minimum of the societies anonymous will be fully subscribed and paid-up at least in a fifty percent. The disbursements of capital above the minimum is adjusted to the legislation commercial general.

In any case, the capital will be represented by titles nominative or annotations in has nominative.

3. entities carrying out their activity in several classes of direct insurance other than the life must have share capital corresponding to the branch for which required greater amount.

If, pursuant to article 31(2)(a) or 3 also pursue activities in the field of life, the share capital will be that corresponding to the sum of those required for the branch of life and one of the classes other than the life of those who operate.

Article 34. Mutual fund.

1. the mutual insurance must prove permanent mutual funds, contributed by its members or composed with surpluses in the social exercises, whose minimum amounts, according to the classes that intend to operate, will be those indicated as a paid-up share capital of public limited companies.

However, the mutual with passive income regime three-quarters of that amount will require.

(2 social welfare mutuals that have obtained the administrative authorization to operate by ramos must prove a mutual fund whose minimum amount will be that applicable between those identified as a paid-up share capital of public limited companies in article 33.1, without prejudice to the provisions of article 45.2. c) for mutuals that operate by ramos and continue operations of insurance article 44.1.

3. the rest of social welfare mutuals must prove a mutual fund of 30.050,61 euros. Also, will be with his heritage a working capital that allows them to pay claims and expenses without waiting for the payment of the levies.

4. when mutual insurance and mutual benefit societies of social welfare which operate by ramos, exercise their activity in various branches of insurance them shall apply as indicated in the article 33.3, understanding is made to the mutual fund references to social capital.

5. the mutual fund has to be always fully subscribed and paid up.

Article 35. Limitations on the distribution of dividends, levies or any remuneration linked to social capital.

Insurance and reinsurance entities may not distribute dividends, levies or any other type of remuneration linked to social capital disbursed, to the share premium, paid mutual fund or other items of capital equivalent of basic own funds for mutual or mutual, in the following circumstances: to) if that is not achieved, the solvency capital requirements or the minimum capital requirements or (, b) if the distribution of these dividends, levies or other fees associated with these elements of capital could spiral into a breach of the solvency capital requirements or the minimum capital requirements.

Article 36. Partners.

Natural or legal persons who, indirectly, participate directly or in the insurance or reinsurance entity through meaningful participation in it must be suitable to make the management of this sound and prudent, in accordance with regulations.

Article 37. Close ties.

The close links between the insurance company and reinsurance company and other natural or legal persons, if any, will not hamper the proper exercise of the supervision of the entity.


The provisions of a third country outside the European Union to regulate one or several persons with which the insurance or reinsurance entity keep close ties, or the application of such provisions, nor be able to inhibit the proper exercise of the supervision of the entity.

Article 38. Good repute and ability of those who exercise the effective address or perform functions that integrate the system of Government of the entity.

1 the insurance and reinsurance companies and the dominant groups of insurance companies entities shall ensure that all persons who exercise the effective direction, under any title, and those who perform the functions that integrate the system of Government at all times meet the following requirements: to) be persons of recognized commercial and professional honorability.

(b) have appropriate knowledge and experience to make it possible to the sound and prudent management of the entity.

(2. is means that exert the address effective of an entity insurance or reinsurance who have charges of administration or address, whereas is as such: to) them administrators or members of those organs Collegiate of administration. May play charges of Administration them people legal, but, in this case, shall designate in its representation to a person physical that meets equally them requirements previously cited.

(b) the Directors General and assimilated, understood as such all those people that exercise with entity senior management under the direct dependence of its organ of Directors, executive committees or CEOs of that.

3. them entities insurance and reinsurance, as well as them entities key of groups of entities insurance, shall communicate to the address General of safe and funds of inns the appointment as well as all change in the identity of them people that exercise the address effective of the entity or of the group, low any title, and who play them functions that integrate the system of Government of the entity together with all the information needed to assess whether persons who, in their case, have appointed, complies with the requirements of good repute and ability. They also inform the General Directorate of insurance and pension funds when any of the persons referred to in the preceding paragraphs has been replaced by not already meet the requirements of good repute and ability. Such communications will take place within a maximum period of 15 working days counting from the time of the appointment.

4. regulations shall be determined the assumptions in which refers to the requirements of good repute and ability of those who carry the effective address or perform functions that integrate the system of government entities, as well as the requirements for information that must be forwarded to the General Directorate of insurance and pension funds for the purposes of assessing compliance.

Article 39. Responsibility and duties of the bodies of administration or management of the insurance or reinsurance entities.

1. the Board of Directors of the insurance or reinsurance entity will assume the responsibility of compliance by this, the provisions of this law and other regulatory rules of private insurance.

2 shall apply to members of the administration of the insurance entities, any body that is its legal form, the provisions on the duties of administrators in chapter III of title VI of the revised text of the companies act of Capital, approved by Royal Legislative Decree 1/2010 of 2 July.

3. the positions of direction will assume the liability for the performance of the functions that are assigned in accordance with the organizational structure of the entity and of the functions that have been delegated to them by the Board of Directors.

Article 40. Administrative register.

(1. the address General of safe and funds of inns will take a record administrative, in which is entered the following entities and people: to) them entities insurance and reinsurance Spanish, and them partners with a participation significant in the entity insurance or reinsurance.

(b) who, under any title, exercising the effective direction of the insurance companies and reinsurers, the companies of insurance portfolio, mixed financial companies of portfolio of ventures of portfolio insurance and mutual group companies which are an insurance group header. In the event that it is designated a legal person as a member of the Board of Directors, register the natural person representing it.

(c) the groups and subgroups under the supervision of the General Directorate of insurance and pension funds in accordance with the provisions of title V of this law.

(d) the insurance entities of the European Union which operate in Spain under right of establishment or freedom to provide services and their proxies or representatives, as well as those who carry the effective address of these branches and the branches of the European Union reinsurance entities that voluntarily request it.

(e) branches of insurance companies or reinsurance companies of third countries authorised in Spain, as well as their agents or representatives and persons bearing the effective management of these branches.

(f) for the distribution of the coverage of risks among insurance companies or organizations for the provision of common services related to their activity, and their senior.

2. by law acts which can be registered and the registration scheme will be determined.

3. the administrative record is public, guaranteeing its access through the use of electronic media. Interested parties can access the registered data, taking into account that access to personal data shall be governed by the provisions of law 19/2013, of 9 December, transparency, access to public information and governance and other laws that may apply.

4. the autonomous communities that have skills in management and supervision in accordance with article 19(1) shall keep the corresponding administrative record. Every registration that is practiced in such registration will be communicated so telematics to the General Directorate of insurance and pension funds.

Section 3 mutual insurance societies, cooperative insurance and social security article 41 mutual. Mutual insurance.

1. the mutual insurance are corporate non-profit, which are intended to cover partners, are individuals or legal entities, of the risks insured by a premium fixed payable at the beginning of the period of risk.

2. the mutual may constitute mutual groups in accordance with the requirements established by law.

3. in case of dissolution of the mutual and the transformation, merger and Division that the entity resulting from the transformation or merger, or beneficiary of the split is a corporation, as well as the global transfer of assets and liabilities, current members and those who had been in the last five years , or before if it expected the statutes, they shall receive, at least half of the value of the assets of the mutual.

Article 42. Insurance cooperatives.

Cooperatives of insurance, which are intended to cover members of the risks insured by a premium fixed payable at the beginning of the period of risk, shall be governed by the following provisions: a) cooperative membership will be inseparable from the policyholder the insurance or insured, provided that the latter is final the premium payer.

(b) unless otherwise provided in the articles of Association, the cooperative will not respond for the debts of the company. In the event that, in accordance with the bylaws, cooperators to respond for the debts of the company, its liability shall be limited to an amount equal to the amount of the annual premium for each one of them. The statutory clause on personal responsibility of the cooperative partner for social debts must be on insurance policies prominently.

(c) the corresponding registration in the commercial register and registration of cooperative societies should take place prior to the administrative authorization regulated in article 20.

(d) on the other, shall be governed by the provisions of this law, its regulatory, and development by the precepts of the revised text of the companies act of Capital to which refers, as well as by the regulations that develop it and, Additionally, by the legislation of cooperatives.

Cooperative management and supervision of the autonomous communities that have assumed competences in the insurance field shall be governed by provisions laid down by them, by the provisions of this Act and the regulations that develop it and, Additionally, by the provisions of the revised text of the companies act of Capital.

Article 43. Provident mutual.


1. the social welfare mutuals are insurance companies carrying on a voluntary insurance modality complementary to the system of compulsory Social insurance, through contributions of members, individuals or legal entities, or of other entities or protecting people. Those mutual of forecast social that is are recognized as alternative to it security Social in the available additional fifteenth of the law 30 / 1995, of 8 of November, of management and Supervision of them safe private, exercise also a mode insurance alternative to the high in the regime special of it security Social of them workers by has own or autonomous.

When mutuality of social welfare all its members are employees, partners protectors or promoters are companies, institutions or individual entrepreneurs in which they provide their services and benefits that are granted are only forecast between these and those agreements, means that mutuality acts as an instrument of corporate welfare.

(2. them mutualities of forecast social must meet the following requirements: to) it willing for them mutual of safe in the article 41.

(b) the condition of partner mutual will be inseparable of the of taker of the safe or of secured, provided that this last is the payer end of the prima.

(c) establish equality of obligations and rights for all them mutual, without prejudice of that them contributions and performance keep the relationship bylaws established with them circumstances that are in each one of them.

(d) unless otherwise provided in the articles of Association, members will not respond the mutual debts. In the case that, as provided for in the bylaws, members answer these debts, its liability shall be limited to an amount less than the third of the sum of the quotas that had met in the last 3 years, regardless of the current period. The statutory clause on personal responsibility of the mutual society for social debts must be on benefits and prominent insurance regulations.

(e) the incorporation of the mutual benefit to the mutuality of forecast social will be voluntary anyway and will require an individual applicant, or a general statement derived from resolutions adopted by the representative bodies of a cooperative or a school professional, except express the mutual opposition, unless they can put limits to enter the Provident mutual different to the provided for in its statutes for justified reasons.

(f) the incorporation of members may be carried out directly by the own mutual social welfare or through the activity of insurance mediation, the latter provided they meet the requirements of mutual fund and financial guarantees that are enforceable. However, members may participate in the incorporation of new partners and the management of collection of assessed contributions; in this case, they can receive adequate economic compensation set bylaws.

(g) perform only insurance operations and provide social benefits listed in article 44, without prejudice to the provisions of article 45 for mutual social welfare organizations authorized to operate by ramos.

(h) directly assume the risks guaranteed to their mutual benefit, without practicing operations coinsurance or reinsurance acceptance, although you can perform assignment operations on reinsurance with authorized entities to operate in Spain. However, the mutuals of forecast social that have authorization to operate by ramos of safe may perform operations of coinsurance and accept in reinsurance.

(i) earnings and other income of administrators for travel, accommodation and meals, perceived by its management in mutuality will be part of the administration costs, which may not exceed the limits specified in the relevant regulations. However, mutual social welfare organizations authorized to operate by ramos will not be subject to limits on their administrative expenses.

(j) in the event that a mutual exercise majority control over other entities and administrators of the latter to pay any amount in respect of costs set out in the preceding paragraph, these will be considered costs of administration of mutuality.

3. the social welfare mutuals may constitute mutual groups in accordance with the same requirements established by regulation for mutual groups.

4. regulations shall be governed for mutual social welfare organizations norms of the legal regime of the mutual's insurance that applicable.

Article 44. Scope of coverage and benefits of mutual social welfare organizations.

1. in the anticipation of risks on people, contingencies that can cover are death, widowhood, orphanhood, retirement and dependence, and ensure benefits in the form of capital or income. They may also confer benefits by reason of marriage, motherhood, children and death. And may perform operations of insurance accidents and disability for work, illness, legal defence and assistance, as well as provide family support to meet needs caused by events or acts that temporarily prevent the exercise of the profession.

The economic benefits that will guarantee may not exceed 30,000 euros as annual income or its actuarial equivalent as unique perception of capital, calculated in accordance with the technical basis for the calculation of the aforementioned income, with the limit of 300,000 euros.

The limits provided for in the preceding paragraph may upgrade by order of the Minister of economy and competitiveness, considering the sufficiency of the financial guarantees for the updated benefits.

However, for those mutuals that are falling in any of the situations provided for in the articles 159.1 and 172 of this Act, new economic benefits that will guarantee may not exceed 18,000 euros as annual income or for 78,000 euros as unique perception of capital.

2 in the anticipation of risks on things, can only ensure that then and relate within the quantitative amount of such property: a) subsidized housing and other social interest, provided that they are inhabited by the own mutualist and his family.

(b) machinery, goods and work instruments of members who are entrepreneurs and small businessmen. For these purposes, means small entrepreneurs self-employment self-employed workers and professionals and entrepreneurs, including the agricultural, employing not more than five employees.

(c) crop farms cultivated directly and personally by the farmer or by his family, provided that they do not get included in the annual safe combined agricultural plan, and forests, cattle, beehives, fish nurseries and farms raising animals for consumption that are integrated in the unit of family farm.

3. each mutuality may grant all or part of the benefits referred to in the two preceding paragraphs.

4 in addition to the provisions of paragraphs 1 and 2, mutual social welfare organizations that meet the requirements of mutual fund and financial guarantees may be granted social benefits linked to the insurance operations pursuant to the following: to) must be specifically authorized by the General Directorate of insurance and pension funds or the body of the competent autonomous community.

(b) the granting of social benefits will be made with absolute economic-financial and accounting separation from its insurance operations.

(c) the resources that engaged in the activity of social provision will be of free use.

5 the mutualities of social welfare that have not obtained the administrative authorisation referred to in article 45 will be les application, in any case, the principle of proportionality contained in article 65.

Article 45. Authorized social welfare mutuals to operate by classes of insurance.

1. the social welfare mutuals can operate by classes of insurance and shall not be subject to the limits imposed in article 44, provided that they obtain the prior administrative authorisation.

(The authorization may be granted for the branch of life or for the following branches of non-life insurance, referred to in Annex A) .to) of this law: branch 1 (accidents), ramo 2 (disease), bouquet 16 (various pecuniary losses), bouquet 17 (legal expenses), class 18 (assistance) and bouquet 19 (deaths), taking into account provisions of article 31.

2 are necessary requirements for mutuality of social welfare can obtain and retain the administrative authorization to operate by ramos, as follows: to) have elapsed, at least, a period of five years from obtaining the administrative authorisation for insurance activity.

(b) not have State subject to measures of control special, nor have is you initiated procedure administrative of dissolution or of revocation of the authorization administrative during them two years previous to the presentation of the request of authorization.


(c) possess the minimum of mutual fund, basic own funds eligible to cover the absolute minimum of the minimum capital requirements and own funds to cover the solvency capital requirements, as well as having constituted technical provisions, admissible – all in the same terms established by this law for the mutual insurance.

When a social welfare mutual obtain administrative authorization to operate in the field of life and continue to perform non-life insurance operations, you must have a minimum mutual fund equal to the sum of the required to the mutual of insurance for the field of life and the minimum laid down in article 34.3.

When mutuality of social welfare obtain administrative authorization to operate in one or more branches of non-life insurance and life insurance operations continue to perform, it must have a minimum mutual fund equal to the sum of the required to the mutual of insurance for the authorized industry for which required greater amount and the minimum laid down in article 34.3.

(d) have annual gross revenues for premiums and a total gross technical provisions above the limits established by law for the special regime of solvency that referred to in article 101.

(e) introduce and adhere to a program of activities pursuant to article 32 in relation to those classes of insurance for which requested the authorization.

3. the application for authorization to operate by ramos will be processed by the General Directorate of insurance and pension funds or, where appropriate, by the competent body of the autonomous community, and shall be accompanied by documents showing compliance with the requirements in paragraph 2. Authorization shall be granted by ramos, and shall cover the entire class and the coverage of risks incidental or complementary, as appropriate.

In everything else, the procedure and the administrative decision shall comply with provisions generally in articles 20 to 22.

4. If the authorization administrative is obtained in the bouquet of life, the mutuality of forecast social may continue performing also, in his case, operations of safe of accidents, disease and deaths. If the administrative authorisation is in one of the non-life classes, mutuality of social welfare may, in addition to insurance operations pertaining to the authorized class, continue those of article 44.1. In both cases shall be exempt from the limitations imposed by article 43.2, letters g) and h), only in branches of insurance that have obtained the administrative authorisation.

5. the realization by a mutuality of social welfare of the activities that this article subject to administrative authorization to operate by ramos, without having previously obtained shall be deemed prohibited operation and shall be subject to the effects and administrative responsibilities provided for in article 5, to the regulation on special control measures title VI, and the system of offences and penalties of title VIII.

6 mutual social welfare organizations may waive the authorization to operate granted by ramos, and return to the coverage and benefits system regulated in article 44, in the terms established by law.

Section 4 activities of Spanish insurance and reinsurance entities under law of establishment and free provision of services in the European Union article 46. Spanish banks that can operate in the European Union.

1. the insurance entities and Spanish reinsurers which have obtained the authorization valid throughout the European Union pursuant to article 20 may exercise, in the same terms of the authorisation granted, their activities under law of establishment or of free provision of services throughout the territory of the European Union.

2 shall not apply the provisions of the preceding paragraph a: a) insurance operations when the risks are covered by the Consorcio de Compensación de Seguros.

(b) the insurance entities that the special arrangements of solvency, regulated in Chapter VIII of title III of this law.

(c) the following non-life insurance operations: 1st by mutual insurance which have concluded with other mutual agreement on the full reinsurance of the insurance contracts that have been signed or replacement of the mutual assignee by the assignor for the execution of commitments resulting from such contracts.

(2nd of 19 class (deaths) in the regulated in Annex A) .to) of this law.

3. the activity under law of establishment or free provision of services in the European Union of the Spanish insurance companies shall be entered in the registration regulated in article 40, stating the data described in the following articles and the regulations of development.

Article 47. Conditions for the establishment of branches.

1. all Spanish insurance company wishing to establish a branch within the territory of another Member State shall inform the General Directorate of insurance and pension funds, accompanying information to be determined by regulation.

2. in the term maximum of three months starting from the reception of the communication to makes reference the paragraph previous, it address General of safe and funds of inns will inform of this end to it authority supervisor of the State member of the branch and will accompany a certification of that the entity insurance has of the capital of solvency mandatory and of the capital minimum mandatory , calculated with arrangement to it provisions in this law and its rules of development, e will inform of such remission to the entity insurance.

3. it address General of safe and funds of Inns may deny is to send such information when, to the view of the documentation presented by the entity insurance, have reasons for doubt of it fitness of its system of Government, of its situation financial or of it fitness and repute of the proxy general, with arrangement to it willing in the article 38. The refusal to forward the information to the Member State of the branch shall be reported to the insurance company, which may be brought against the corresponding resource. Once the period of three months without having been notified express resolution, shall be deemed denied the communication of information.

4. If the authority of the Member State of the branch supervisor indicated to the General Directorate of insurance and pension funds the conditions under which, for reasons of general interest, should be exercised such activities in the concerned Member State of the branch, said Directorate General shall so inform the insurance company concerned.

5. the insurance company may establish the branch and start their activities since the General Directorate of insurance and pension funds notified the conformity of the supervisory authority of the Member State of the branch or the exercise by her conditions. You can also start the activity since the communication made by the General Directorate of insurance and pension funds referred to in paragraph 2 within two months.

6. the amendment of the content of any of the information communicated pursuant to the provisions of paragraph 1 shall follow the procedure regulated in this article. The insurance company shall, in addition, inform the supervisory authority of the Member State of the branch that is going to establish or set, and both this and the General Directorate of insurance and pension funds, will have a common period of one month to carry out the functions which attributed them this article.

7. the branch will retain its documentation in the address of the State member of the branch in which can claim you and deliver you them documents.

Article 48. Communication to operate on free provision of services.

1. all Spanish insurance company that intends to exercise for the first time in one or more States members of free provision of services activities to inform of your project to the General Directorate of insurance and pension funds, indicating the nature of the risks or commitments which it proposes to cover.

2. the General Directorate of insurance and pension funds shall communicate information received in accordance with the provisions of the preceding paragraph within a maximum period of one month from receipt, the State or Member States in whose territory the insurance company intends to develop its activities of free provision of services. It will be statutorily regulated the content of this communication.

3. the insurance company will begin its activity from the certified date on which the General Directorate of insurance and pension funds notified that he has studied the communication referred to in paragraph 2.

4. any change to the nature of the risks or commitments, that the insurance company intends to cover in a regime of free provision of services, shall follow the procedure and requirements laid down in the preceding paragraphs.

Article 49. Statistical information relating to cross-border activities of the Spanish insurance companies.


The Spanish insurance companies operating in regime of right of establishment or free provision of services contract shall be notified to the General Directorate of insurance and pension funds statistical information that is established by law, which may send it, within a reasonable time, to the supervisory authorities of the Member States concerned which so request it.

Section 5th activities of Spanish insurance and reinsurance entities in third countries article 50. Creation of entities and other operations in third countries.

1. the creation by Spanish insurance or reinsurance entities of foreign dominated societies, the acquisition of the status of dominant in foreign companies, the establishment of branches and, where appropriate, the activity by way of freedom to provide services in countries not members of the European Union will require communication to the General Directorate of insurance and pension funds with one month in advance.

When the above-mentioned activities may impair the solvency of the entity and financial situation, mentioned DG, within the period of one month may accordingly agree to ban such activities or set conditions for its realization.

2. If after the previous deadline has been made opposition, it must be notified of the completion of the operation to the General Directorate of insurance and pension funds once have been effective.

Chapter II access to activity in Spain of insurance and reinsurance entities of other States of the European Union section 1 General provisions for insurance and reinsurance entities article 51. Insurance companies and reinsurance companies from other Member States which can operate in Spain.

1. the insurance entities domiciled in other Member States, which have been authorized to operate in his home State, may exercise their activities in Spain in regime of the right of establishment or free provision of services regime.

Not be entitled to the provisions of the preceding paragraph insurance institutions excluded from the scope of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on life insurance, access to the activity of insurance and reinsurance and its exercise (Solvency II), pursuant to its articles 4 and 7 , or of public law organisms listed in articles 8 and 10 of that directive.

2. the insurance companies referred to in the first subparagraph of paragraph 1 shall comply with the provisions dictated by reasons of general interest and those of Chapter VII of title III, on market behavior, which, if applicable. In the same terms as the Spanish insurance entities, shall submit all documents requiring them the General Directorate of insurance and pension funds in order to check if they respect in Spain the Spanish provisions that are applicable to them.

3 reinsurance entities domiciled in other Member States, which have been authorized to operate in his home State, may exercise their activities in Spain under law of establishment or free provision of services, without the necessary administrative authorization or prior notice, even though they shall respect the provisions dictated by reasons of general interest and those of supervision that , if applicable. In the same terms as Spanish reinsurance entities, shall submit all documents requiring them the General Directorate of insurance and pension funds in order to check if they respect in Spain the Spanish provisions that apply them.

4. is presented in Castilian it documentation contractual and others information that it address General of safe and funds of Inns has right to demand or should be you sent by them entities insurance domiciled in another State Member that operate in Spain in regime of right of establishment or of free provision of services.

Article 52. Observance of the legal provisions by insurance and reinsurance entities operating in Spain under law of establishment or free provision of services.

1. If the address General of safe and funds of Inns proves that an entity insurance or reinsurance that operate in Spain in regime of right of establishment or of free provision of services not respects them provisions Spanish that you are applicable, you will require to arrange his performance to the ordering legal Spanish. In the absence of the relevant adaptation by the entity, the General Directorate of insurance and pension funds shall inform the supervisory authority of the Member State of origin, in order that adopt appropriate measures so that the insurance or reinsurance entity concerned to remedy that irregular situation and report them to the General Directorate of insurance and pension funds.

2 If, due to lack of adoption of the relevant measures or because those taken are inadequate, it persists the infringement of the Spanish legal system, the General Directorate of insurance and pension funds may adopt, after reporting it to the authorities supervisor of the Member State of origin, the measures of prohibition policies and rates regulated by article 120 and special measures of chapter II of title VI to , in both cases, you may apply.

In addition, the General Directorate of insurance and pension funds or the home Member State supervisory authority, may refer the matter to the European insurance and pensions authority and request its assistance.

3. in case of urgency, the measures referred to in the preceding paragraph may be taken by the General Directorate of insurance and pension funds without the requirement and the information required by paragraph 1.

Article 53. Taxes and surcharges.

The insurance contracts concluded under law of establishment or by way of free provision of services that cover localized risks or commitments in Spain will be subject to charges in favour of the Consorcio de Compensación de Seguros to meet the needs of this in the exercise of their functions of compensation of losses arising from extraordinary events occurring in Spain National Fund of guarantee insurance of civil liability of the circulation of motor vehicles and in its role as liquidator of insurance companies, as well as other charges and taxes legally enforceable on the same terms as contracts signed with Spanish insurance companies.

Article 54. In terrestrial motor vehicles liability insurance.

The insurance entities operating in Spain in regime of the right of establishment or by way of free provision of service in the civil liability insurance in terrestrial motor vehicles, excluding carrier's liability, shall be integrated in the Spanish automobile insurers Bureau (OFESAUTO).

Section 2 activity under law for the establishment of insurance and reinsurance entities domiciled in other Member States article 55. Conditions of access to the activity in regime of right of establishment.

1 until a branch in Spain of an insurance company domiciled in another Member State is established and begins to carry on business under property law, the General Directorate of insurance and pension funds may instruct the home Member State supervisory authority the conditions under which, for reasons of general interest the activity in Spain must be exercised.

The above-mentioned Directorate-General will have to do so within two months, counted from receiving the communication referred to it in the article 47.2 of the home Member State supervisory authority.

The branch may establish is and begin its activity in Spain since the authority supervisor of the State member of origin you notify it conformity or them conditions indicated by the address General of safe and funds of Inns. You can also launch it when, after the aforementioned period of two months, it has not received such notification.

2. any modification in the branch of some of the aspects referred to in article 47.1, shall be subject to identical procedure, but the term, that will be common, will be reduced to one month.

Article 56. Supervision of branches in Spain by the authorities of the State of origin.

When an insurance or reinsurance entity authorised in another Member State to exercise its activity in Spain through a branch, the supervisory authorities of the home Member State may proceed, by themselves or by persons designated for this purpose, prior to the General Directorate of insurance and pension funds, to the verification of the information necessary to carry out the financial supervision of the entity.

The General Directorate of insurance and pension funds will participate in such verification in the terms to be determined by regulation.

European insurance and pensions for retirement authority will participate in the checks which are carried out jointly with other supervisors involved.

Section 3 activity in the free provision of services of insurance and reinsurance entities domiciled in other Member States


Article 57. Conditions for access to the activity by way of freedom to provide services.

Them entities insurance domiciled in another State of the Union European may start or, in its case, modify its activity in Spain in regime of free provision of services since receive the communication of that it authority supervisor of the State member of origin has referred to it address General of safe and funds of Inns it communication to which is refers the article 48.2.

Article 58. Specific requirements for land motor vehicle civil liability insurance.

(1. them entities insurance domiciled in another State of the Union European that intend to operate in Spain in regime of free provision of services covering them risks of the bouquet of responsibility civil in vehicles terrestrial cars, excluded the responsibility of the carrier, must meet them following requirements with character prior to the start of its activity in Spain: to) communicate to it address General of safe and funds of inns the name and address of a representative person physical that resides usually in Spain or person legal that is in she established, with the following faculties: 1st meet them claims that present the third handicapped. For this purpose, must have powers enough to represent to the entity insurance, even for the payment of them compensation, and to defend it before them courts and authorities administrative Spanish.

2nd representing the insurance company before the competent Spanish judicial and administrative authorities in all matters relating to the control of the existence and validity of insurance policies of civil liability resulting from the use of terrestrial motor vehicles.

(b) to the General Directorate of insurance and pension funds make the statement expresses that the insurance company has been integrated in the Spanish automobile insurers Bureau (OFESAUTO) and that it will apply the legally required surcharges in favor of the Consorcio de Compensación de Seguros.

2 If the insurance company had not designated the representative referred to in paragraph 1.a), will assume his duties the agent designated in Spain for the processing and settlement of claims occurring in another Member State, when the injured party has his residence in Spain.

Article 59. Tax obligations.

The insurance entities domiciled in another State of the European Union wishing to operate in Spain of free provision of services will be required to practice retention or income account, and enter the amount in the Treasury, as well as to inform the tax administration, in connection with the transactions made in Spain, in the terms laid down in the regulatory legislation of taxes on the income of natural persons on societies and on the income of non-residents.

Article 60. Subscription agencies.

1. the insurance companies can sign contracts of empowerment with Spanish legal persons to subscribe in the name and on behalf of those risks.

2. the Agency's subscription in Spain will enter its activity after obtaining the official authorization of the General Directorate of insurance and pension funds. According to the rules the requirements and the procedure shall be governed for obtaining and maintaining the administrative authorization.

3. also be accurate administrative authorization so that an underwriting agency can operate to other insurance entities other than those authorized and so can sign business in other risks other than the initially requested and authorized with a particular entity that is already authorised. By regulation the procedure and requirements shall be governed for enlargement of the administrative authorization.

4. rules on significant holdings contained in articles 85 to 88, understanding that mentions there made to the insurance entities refer to subscription agencies, where the transferor or the transferee are an insurance company, or a mediator of insurance or a reinsurance broker or another subscription Agency shall apply to subscription agencies.

5. the term «underwriting Agency» is reserved to companies or firms in this article. In the commercial documentation of subscription of insurance and advertising subscription agencies performing general or through telematic means they must mention its nature of Agency of subscription and the insurance companies who have concluded contract of empowerment.

6. the departments and services customer of the insurance entities will attend and resolve complaints and claims that arise in connection with the performance of subscription agencies in the terms to establish regulations on protection of the client's financial services.

7 the direction General de Seguros y Fondos de Pensiones revoke administrative authorisation granted to agencies subscription under the terms established in paragraph 3, letters a) and b), paragraph 4, letters to), b), d), e) and f), and sections 6 and 7 of article 169, understanding that there contained references to the insurance entities are to subscription agencies.

The cause for the revocation of the administrative authorization for effective lack of activity of this Act shall refer to all the powers granted to the subscription Agency have been revoked.

8 shall apply to subscription agencies special control measures contained in article 160 as soon as it will be of application.

9. the regime of offences and penalties will be provided in title VIII of this law.

Chapter III access to activity in Spain of insurance and reinsurance entities of third countries section insurance entities of third countries article 61 1. Authorization of branches of insurance companies from third countries.

1. the Minister of economy and competitiveness may authorise insurance companies domiciled in third countries not members of the European Union to establish branches in Spain, provided that they meet the requirements established by law.

2. the deadline to resolve the procedure and notify the resolution is six months. After this deadline without having notified express resolution, petition shall be rejected.

3 granted administrative authorization, the branch, his attorney and who exercise the effective address shall be entered in the administrative record that regulates article 40.

Requirements to be determined by regulation 4 shall require in the field of insurance other than life assurance to the branches established in Spain of insurance companies of Swiss nationality.

Article 62. Limitations on activity in Spain of the insurance entities of third countries.

It is prohibited to arrange direct insurance with insurance entities of third countries outside the European Union in Spain or through mediators of private insurance, carrying out their activity for those. The foregoing is excepted case that these insurance companies hire through branches established legally in Spain.

Section 2 reinsurance entities of third countries article 63. Branches of reinsurance entities in third countries.

1. the establishment of branches in Spain of entities reinsurance of third countries will require the prior authorization administrative of the Minister of economy and competitiveness, that is shall grant in accordance with it intended in the article 61, for activities of reinsurance of life, activities of reinsurance different of the of life, or for all type of activities of reinsurance.

2. the authorization of branches shall determine the administrative registration laid down in article 40.

Article 64. Activity in Spain of the reinsurance entities in third countries from the country of origin.

Reinsurance entities of third countries may exercise activity in Spain from the country where they have their registered office, but not from branches outside Spain, even if they are established in the European Union.

Title III exercise activity chapter I system of government entities insurance and reinsurance companies article 65. General system of government requirements.

1. all insurance and reinsurance entities will benefit from an effective system of Government to ensure the sound and prudent management of the activity and which is provided to its nature, the volume and the complexity of its operations.

2. the system of Government will include written corporate governance policies that will include, among others, a transparent and proper, organisational structure with clear distribution and an adequate separation of functions, effective mechanisms to ensure the transmission of information, and policies and practices of remuneration appropriate to the characteristics of the entities.

3. the system of Government of the entity shall include the following functions: risk management, compliance, actuarial and internal audit.


He system of Government will establish mechanisms effective that ensure the compliance of them demands of fitness and repute of them people that direct of way effective the entity or play in she them functions fundamental that it integrate, planned in the article 38 and of them requirements established in this law and in the normative of development in relation to the management of risks evaluating internal prospective risks, the internal control and compliance, internal audit, actuarial function and the outsourcing of functions or activities.

4. the last government system responsible will be the Board of Directors of the insurance and reinsurance entities.

5. the General Directorate of insurance and pension funds will verify the system of government entities insurance and reinsurance companies and evaluate emerging risks identified by such entities that may affect its financial soundness, and may require them to take the necessary measures to improve and strengthen its system of Government.

Article 66. System of internal assessment of risks and solvency, risk management, internal control and system of government functions.

1. insurance and reinsurance entities shall establish an effective system of risk management comprising strategies, processes and procedures of information necessary to identify, measure, monitor, manage and report on an ongoing basis the risks which, individually and in aggregate, are or may be exposed, and their interdependencies.

This risk management system will be effective and will be properly integrated in the organizational structure and in the process of decision-making of the authority, and shall duly take into account persons who direct it effectively or exercise the functions that make up the system of Government.

Insurance and reinsurance entities shall establish a function of risk management that facilitates the application of the system of risk management.

2. as part of its risk management system, insurance and reinsurance entities carried out an internal assessment of risks and solvency on a regular basis and, in any case, immediately after any significant change in its risk profile.

The internal assessment of risks and solvency will form an integral part of the business strategy and will be considered on an ongoing basis in the strategic decisions of the entity.

Insurance and reinsurance entities shall inform the General Directorate of insurance and pension funds the results of each internal assessment of risks and solvency, in the terms to be determined by regulation.

The internal assessment of risks and solvency will not to calculate or adjust capital requirements.

3. the entities insurance and reinsurance should establish, document and maintain in all time a system of control internal appropriate to your organization.

Said system will consist, at least, of procedures administrative and accounting, of a structure adequate, of mechanisms appropriate of information to all the levels of the entity and of a function of verification of the compliance.

Compliance function shall include advising the Board of Directors regarding the compliance of the laws, regulations and administrative provisions relating to the entity, as well as on compliance with its internal rules. It will involve also the evaluation of the impact of any modification of the legal environment in the operations of the entity and the determination and assessment of the risk of compliance.

4. them entities insurance and reinsurance count with a function effective of audit internal, that will include the checking of it fitness and efficiency of the system of control internal and of others elements of the system of Government of the entity and is developed in accordance with it established in the regulation of management, supervision and solvency of them entities insurance and reinsurance and of the activity of audit of accounts.

The function of audit internal must be objective and independent of them functions operating.

The conclusions and recommendations derived from the internal audit shall be notified to the Board of Directors, which will determine what actions should be taken with respect to each of them and will ensure that such actions are carried out.

5. insurance and reinsurance entities will have an effective actuarial function.

The actuarial function shall be played by people who have knowledge enough of actuarial and financial mathematics, commensurate with the nature, volume and complexity of the risks inherent to the activity of the insurance company or reinsurer, and that may prove timely in relation to professional standards and other applicable experience.

6. regulations shall be determined risks which must be included in the system of risk management, as well as the scope of the internal evaluation and the actuarial function.

Article 67. Outsourcing of functions.

1 the insurance or reinsurance entities may outsource critical or important operational activities or its functions except when the following circumstances occur concurrently: to) be significantly prejudiced the quality of its system of Government, b) unduly increase operational risk, undermine the ability of the General Directorate of insurance and pension funds to monitor the fulfilment of the obligations of the entity, or affect continuous and satisfactory service to policyholders.

2. with the purpose of avoid these effects negative, must designate is within the entity to a person responsible of it function or activity outsourced, that count with the experience and knowledge enough for check the performance of them suppliers of services.

3. insurance and reinsurance entities communicate previously to the General Directorate of insurance and pension funds outsourcing critical or important activities or functions, as well as any subsequent significant change in relation to those functions or activities. This Directorate-General may object to them within the period of one month from the receipt of the communication, when any of the circumstances set out in paragraph 1.

Changes related to the function responsible for, the service provider or the scope of outsourced activities will be considered significant.

4. in any case, the insurance companies and reinsurance companies that outsource part of its functions will continue to be responding the fulfilment of all the obligations laid down in this law and its implementing rules.

Chapter II valuation of assets and liabilities, financial guarantees and investments section 1 valuation of assets and liabilities, technical provisions article 68 standards. Valuation of assets and liabilities.

Insurance and reinsurance entities valued assets and liabilities in accordance with the following rules: 1. the assets will be valued by the amount by which it could exchange between informed and interested parties that carry out a transaction in conditions of mutual independence.

2. the liabilities will be valued by the amount by which could be transferred or settled between interested and informed parties that carry out a transaction in conditions of mutual independence.

3. to assess liabilities pursuant to paragraph 2, not make no adjustment to take into account the solvency of the insurance or reinsurance entity.

Article 69. Technical provisions.

1. authorities, insurance and reinsurance companies counted among its debts technical provisions needed to reflect all the obligations arising from insurance and reinsurance contracts.

2. the value of technical provisions will match the current amount that insurance and reinsurance entities would have to pay if they transferred their insurance and reinsurance obligations immediately to another insurance or reinsurance entity.

3. for the purposes of the calculation of technical provisions is used the information provided by the financial markets and generally available data on risks of subscription, information that the abovementioned calculation shall be consistent.

4. technical provisions will be assessed in a prudent, reliable and objective way.

5. regulations will be determined techniques to compute provisions and techniques, methods and assumptions for its calculation, as well as the conditions of application of the adjustment by marriage to the term structure of interest rates without risk and of the adjustment by volatility to the of risk-free interest rate term structure.

6. when the insurance or reinsurance entity you want to apply the adjustment by marriage, referred to in the preceding paragraph, you must obtain the prior authorization of the General Directorate of insurance and pension funds, under the terms and conditions established by the regulations of the European Union of direct application.

The term maximum to resolve the procedure of the authorization prior and notification of the resolution is of six months. Once this period has elapsed without having notified express resolution means rejected the application as filed.

Article 70. Need to increase the amount of technical provisions.


1. to requirement of the address General of safe and funds of Inns, them entities insurance and reinsurance must demonstrate the adequacy of the level of their provisions technical, as well as the applicability and relevance of them methods employees, and the fitness of them data statistical of base used.

2. to the extent that the amount and the calculation of them provisions technical not is abide to it planned in them provisions applicable, the address General of safe and funds of Inns may require to such entities that increase the amount of them provisions technical to place them in the level demanded.

Such requirements shall not constitute a measure of special control of the regulated in chapter II of title VI. The supervisory powers in relation to technical provisions within a procedure for control special measures shall apply without prejudice to the provisions of the preceding paragraph.

Section 2 own funds article 71. Determination of own funds.

1. the own funds of institutions insurance and reinsurance companies will be constituted by the sum of basic own funds and additional own funds. By law the elements that compose each one of them shall be determined.

The amount of each item of additional own funds which the entity you want to include between the own funds for solvency purposes, will reflect their capacity of absorption of losses shall be based upon prudent and realistic assumptions, and will be subject to the prior authorization of the General Directorate of insurance and pension funds in the terms and conditions established in the regulations of the European Union of direct application.

The prior authorization of the General Directorate of insurance and pension funds will approve the monetary amount of each item of additional own funds, or the method for calculating this amount. In the latter case, authorization shall extend to the amount determined according to this method and in addition shall fix the period of validity.

He term maximum to resolve the procedure of the authorization prior and notification of the resolution is of three months, unless fulfilled circumstances exceptional in whose case is may expand to six. Once this period has elapsed without having notified express resolution means rejected the application as filed.

2. regulations may establish is them alleged and them conditions in which them funds surplus constituted by them benefits accumulated that not is have intended to be distributed to them takers and to them beneficiaries of safe, and that meet them criteria established in he to be classified as funds own of level 1 according to the article 72, not is considered obligations derived of them contracts of insurance or reinsurance.

Article 72. Classification of own funds into levels.

1. the items of own funds are classified into three levels: level 1, level 2 and level 3. The criteria for classification at these levels will be determined in the rules of the European Union of direct application.

2. institutions, insurance and reinsurance companies classified their own funds in accordance with the above-mentioned criteria. To this end, they shall refer to the list of items of own funds regulated in the rules of the European Union of direct application.

3. regulations shall be determined the limits applicable to levels 1, 2 and 3, the obligations of the insurance entities regarding the classifications of funds and the procedure of authorization of the General Directorate of insurance and pension funds for the inclusion of items not incorporated into the list of the previous paragraph, without prejudice to the rules of the European Union of direct application.

Article 73. Eligibility of own funds.

1 Basic own funds shall be eligible for the coverage of the solvency capital requirements and minimum capital requirements.

2. additional own funds will only be eligible for the coverage of the solvency capital requirements. Additional own funds are not accepted to cover the minimum capital requirements.

Section 3 Capital of solvency required article 74. Calculation of the capital of solvency required.

1. the capital of solvency requirements shall be calculated on the basis of the principle of continuity of the business of the entity and shall be equal to the value at risk of the basic own funds of an insurance or reinsurance, entity with a level of confidence of 99.5 percent, and a time horizon of one year.

2. insurance and reinsurance entities shall calculate the solvency capital requirements with a minimum annually and shall communicate the results of this calculation to the General Directorate of insurance and pension funds.

3. the entities insurance and reinsurance must cover in all moment the capital of solvency compulsory with them funds own, basic or complementary, that are permissible.

He amount permissible of funds own for the coverage of the capital of solvency mandatory will be equal to the sum of the amount of the level 1, of the amount permissible of the level 2 and of the amount permissible of the level 3.

4. regulations shall be governed the calculation of the solvency capital requirements.

5. in addition, the insurance or re-insurance entity shall be obliged to submit, within the period of one month since the variations are detected this information when your risk profile or its own funds may have been significantly away from assumptions based on the latest information provided to the General Directorate of insurance and pension funds.

Notwithstanding this obligation, the General Directorate of insurance and pension funds will require the insurance or reinsurance entity to prepare and submit recalculations, in relation to the information that should be addressed, when there are indications that the risk profile of the institution has changed significantly since the date of the last information submitted.

Article 75. Methods of calculation of the capital of solvency required.

1 the solvency capital requirements may be calculated according to the following methods: to) using the standard formula, and can apply simplifications and specific parameters, where appropriate.

(b) through the use of models internal complete or partial.

2. the use of models internal or of parameters specific require approval administrative prior, to request of the entity. The term maximum to resolve the procedure and notify the resolution is of six months. After this term without having is notified resolution express, is means rejected the request.

3. them methods of calculation of the capital of solvency mandatory, them procedures of authorization and application, and them effects of its breach, is will develop regulations and by the regulations of the Union European of direct application.

Article 76. Requirement of capital for solvency required additional.

After the performances of supervision and with character exceptional, it address General of safe and funds of inns can demand to the entity insurance or reinsurance supervised, through resolution motivated, a capital additional. The assumptions of requirement of additional capital, the procedure and deadlines for review will be developed by law and by the regulations of the European Union of direct application.

Article 77. Responsibility of the organ of administration in relation to those models internal.

1. the organs of administration of insurance and reinsurance entities shall give their agreement expressly the application of the internal model aimed at the General Directorate of insurance and pension funds, and also with respect to the request for authorization of any subsequent modification of this model.

2 is the responsibility of the organs of administration of institutions implement the necessary systems that guarantee the permanent functioning of the internal model.

In particular, they shall ensure because the design and performance of the internal model are always effective, and this model follow appropriately reflecting the risk profile of the institution.

Section 4 Capital minimum mandatory article 78. Minimum capital requirements.

1. authorities, insurance and reinsurance companies must hold eligible basic own funds to cover the minimum capital requirements, which will match the amount of eligible basic own funds below which policyholders and beneficiaries, if you continue their activity, institutions would be exposed to unacceptable risk.

The eligible amount of basic own funds to cover the minimum capital requirements will be equal to the sum of the amount of level 1 and the permissible amount of basic own funds classified in level 2 items.

2. the minimum capital requirements shall be calculated as a linear function of a set or subset of the following reinsurance NET variables: technical provisions, premiums earned, in risk capital, deferred taxes and the costs of administration of the entity. The linear function shall be calibrated based on the value at risk of the basic own funds of an insurance company or reinsurer, with a confidence level of 85 per 100, with a time horizon of one year.


3. the compulsory minimum capital shall be not less than 25 per 100 or otherwise exceed 45 per 100 of the solvency capital requirements of the entity, including any capital of additional compulsory solvency demanded.

In any case, will have the following absolute minimum amounts: to) 2,500,000 euros in the case of insurance companies operating in classes of insurance other than life, including captive insurance entities, except where covered all or some of the risks of civil liability, credit and suretyship [(ramos 10 a 15 deel anexo A) .to) of this Act] in which case it will not be less than 3.700.000 EUR;

(b) 3,700,000 euros in the case of the insurance entities that operate in the field of life, including captive insurance entities;

(c) 3.600.000 euros in the case of reinsurance entities, except for the captive reinsurance entities, for which the minimum capital requirements will not be less than 1,200,000 euros;

(((d) the sum of the amounts set out in the letters a) and b) in the case of insurance companies that make life and non-life insurance activities simultaneously.

4. for the mutual with passive income and cooperative regime, the absolute minimum amount of minimum capital requirements will be three-quarters of the required for the remaining entities.

When them cited entities not operate in them ramos of responsibility civil, credit, bond or perform activity exclusively reinsurance, and its amount annual of raw or fees not exceed them five million of euros during three years consecutive, the capital minimum mandatory not may be lower to 800,000 euros if operating in the bouquet of life, to 200,000 euros if operate in them ramos of others damage to them goods , legal defence or deaths, and to 300,000 euros if they operate in the remaining. Where the entity exceed the amount of five million euros for three consecutive years, the minimum amount referred to in the preceding paragraph shall apply with effect from the fourth year.

However, exempt from the absolute minimum amount of the required minimum capital the mutual accepted the mentioned regime when does not operate in the fields of life, civil liability, credit or surety or conduct exclusively reinsurance activity and the annual amount of premiums or contributions do not exceed 750,000 euros.

5. for the mutualities of social welfare that have not obtained the administrative authorization to operate by ramos, the absolute minimum amount of minimum capital requirements will be three-quarters of the required by paragraph first above.

However, for the mutual insurance companies that include in their statutes the possibility for levies of contributions or reducing their benefits and whose annual amount of fees does not exceed five million euros over three consecutive years, the absolute minimum amount of minimum capital requirements will be provided for in the second paragraph of the previous section. Where the entity exceed the amount of five million euros for three consecutive years, starting from the fourth year the minimum amounts will be those set forth in the preceding paragraph.

The mutualities of social welfare whose sole object is to provide benefits or allowances of teaching or education and, in any case, those mutual social welfare not operating by ramos, who include in their statutes the possibility for levies of contributions or reducing their benefits, which do not cover risks of life and the amount of fees not to exceed 750,000 euros are exempted from the absolute minimum amount of minimum capital requirements.

For the purposes of this section, shall be treated as the risks covered by these mutuals of social welfare to the classes of insurance in the manner provided by law for compulsory solvency capital.

6. insurance and reinsurance entities shall calculate the minimum capital requirements at least quarterly and shall communicate the results of this calculation to the General Directorate of insurance and pension funds. However, will not be necessary to calculate the solvency capital requirements, for the purposes of the limits laid down in the first subparagraph of paragraph 3 quarterly.

Section 5th investment article 79. Rules on investments of insurance and reinsurance entities.

1. the entities insurance and reinsurance companies must invest their resources with arrangement to the principle of prudence. Will invest only in active e instruments whose risks can determine, measure, monitor, manage and control properly, besides inform properly of them to the address General of insurance and funds of Inns. These risks will be taken into consideration in the assessment of the overall requirements of solvency within the internal risk assessment and solvency.

2. regulations and through normative of the Union European of direct application is develop the rules on investment.

Chapter III information public on the situation financial and of solvency article 80. Report on the situation financial and of solvency.

1. insurance and reinsurance companies authorities publish, on an annual basis, a report on its financial situation and solvency. Regulations will be determined the content, form and time limits for the publication of this report.

2. institutions, insurers and reinsurers will have appropriate systems and structures to meet the requirements in relation to the obligations of information and publication of the report on the financial situation and solvency, and will have a written policy that ensures the permanent adaptation of all published information.

The public report on the financial situation and solvency shall be approved by the Board of Directors of the entity prior to its publication.

Article 81. Waiver of disclosure of information in the report on the financial situation and solvency.

1. the General Directorate of insurance and pension funds may authorize entities insurance and reinsurance companies non-disclosure of information where such disclosure allows competitors of the company improperly acquire a significant advantage or when with policyholders or other counterpart commitments oblige the entity to secrecy or confidentiality.

In this case, the entities will make a statement to the respect in his report on the situation financial and of solvency e indicate them reasons.

2. as indicated in the preceding paragraph shall not apply to information relating to the management of the capital whose content will be developed according to the rules.

Article 82. The report on the financial situation and solvency and additional voluntary information updates.

1. when any important circumstances affect significantly the information published in the report on the financial situation and solvency, insurance and reinsurance entities shall publish timely information about their nature and their effects. According to the rules will determine what is considered important circumstances and measures to the General Directorate of insurance and pension funds can be taken in such cases.

2. institutions, insurance and reinsurance companies may publish, on a voluntary basis, any information or explanation referred to its financial situation and solvency whose publication is not mandatory pursuant to articles 80 and 81 of this Act and its regulations of development and to paragraph 1 of this article.

Chapter IV obligations accounting article 83. Accounting of insurance and reinsurance entities.

1. the accounting of insurance and reinsurance entities shall be governed by its specific rules and, in their absence, by those laid down in the code of Commerce, in the General Accounting Plan and in other provisions of commercial legislation in accounting matters.

2. the fiscal year of all kinds of insurance and reinsurance companies will coincide with the calendar year.

Specific accounting standards will be established according to the rules referred to in the preceding paragraph, the accounting obligations of the insurance entities, mandatory accounting principles, rules on formulation of annual accounts, the criteria for the evaluation of the members of these elements, as well as the regime's approval, verification, deposit and publicity of these accounts.

3. the Minister of economy and competitiveness, following a report from the Institute of accounting and auditing and of the Advisory Board of insurance and pension funds, may issue specific accounting standards referred to in paragraph 1, in particular the insurance entities Accounting Plan, as well as their modifications and additional rules.

The Minister of economy and competitiveness may entrust to the General Directorate of insurance and pension funds the development of specific rules of accounting of insurance and reinsurance entities, and its adaptation to the international financial reporting standards resulting from implementation, following a report from the Institute of accounting and auditing and of the Advisory Board of insurance and pension funds.

Article 84. Formulation of consolidated financial of the Group of insurance and reinsurance companies.

1 shall apply to the groups of insurance companies and reinsurance companies defined in paragraph 3 of this article, the provisions of article 43 bis of the code of Commerce.


However it earlier, when according to it willing in the cited article, not is apply them standards international of information financial adopted by them regulations of the Union European, the formulation of them accounts consolidated of them groups of entities insurance and reinsurance is governed by their standards specific and, in its defect, by them established in the code of trade and in their provisions of development.

2. the determination of the specific rules applicable to the formulation of consolidated financial of the Group of insurance and reinsurance companies will be held in accordance with article 83.3. Such determination shall be made respecting the principles that are contained in book I of the commercial code on the presentation of the accounts of the groups of companies and its development provisions, and may introduce mandatory adaptations which may be necessary for groups of insurance and reinsurance companies.

3 a the purpose of this article, refers to group of insurance and reinsurance companies that they be given any of the following circumstances: to) the parent company is an insurance or reinsurance entity.

(b) the parent is an entity whose main activity consists of having stakes in insurance and reinsurance entities.

(c) when being integrated by insurance and reinsurance companies and entities of another type, the first activity is the most important of the group.

The concept of group laid down in this article for the purposes of the formulation of consolidated accounts, is independent of the intended for the supervision of groups in title V of this law.

Chapter V regime of stakes in insurance and reinsurance entities article 85. Obligations concerning the acquisition of stakes in insurance and reinsurance companies.

1. any natural or legal person who, alone or acting in concert with others, he has acquired directly or indirectly, a participation in an insurance company or reinsurer, in such a way that its share capital or voting rights is equal or higher than five per cent, provided not obtained by application of paragraph 2 below, shall within a maximum 10 working days counting from the time of purchase in writing to the General Directorate of insurance and pension funds and the entity owned, indicating the amount of participation achieved.

2 any physical or legal person who, alone or acting in concert with another, you have decided to acquire, directly or indirectly, even in case of increase or reduction of capital, mergers and spin-offs, a significant share in an insurance or reinsurance entity either increase their meaningful participation, so that the proportion of their voting rights or from participation in the capital becomes equal to or greater than the thresholds of 20% 30% or 50% and also when under the acquisition could get to control the insurance company or reinsurer, notified it previously written to the General Directorate of insurance and pension funds, stating the amount of such participation, the terms and conditions of the acquisition and the maximum term in that it is intended to perform the operation and provide the documentation according to the rules established.

This obligation corresponds also to the entity insurance or reinsurance of which is to acquire or increase the participation significant referred.

It address General of safe and funds of inns will evaluate the fitness of who is proposes acquire or increase the participation and the solidity financial of the acquisition or of the increase proposed in accordance with them criteria and the procedure that is determined regulations. The information that is supplied must be relevant for the evaluation, and proportional and appropriate to the nature of who intends to acquire or increase the participation and the proposed acquisition. The address General of insurance and funds of inns can oppose is to the acquisition or formulate objections to the same.

3. for the purposes of determine if exists a participation significant in an entity insurance or reinsurance, not is will have in has them rights of vote or the percentage of capital resulting of the assurance of an emission or of a placement of instruments financial or of the placement of instruments financial based in a commitment firm, whenever such rights not is exercise to intervene in the administration of the emitter and is cedan in the term of a year from its acquisition. By law actions, contributions and voting rights will be regulated to integrate in the computation of a participation.

In any case, significant influence means the ability to appoint or dismiss any member of the Board of Directors of the insurance company.

4. the provisions of this article for entities insurers and reinsurers shall without prejudice to the application of the rules on public offers of acquisition and information about major holdings contained in Act 24/1988, of July 28, of the stock market and its implementing rules, and without prejudice to the application of the rules on control of concentrations economic law 15/2007 , of 3 July, competition.

Article 86. Effects of non-compliance.

1 when operated one of the acquisitions or increases in regulated in article 85, without having previously notified the General Directorate of insurance and pension funds, or having notified, had not passed the period provided for by law, or if mediate the express opposition of the General Directorate of insurance and pension funds, will produce the following effects: to) is may not exercise political rights pertaining to shares acquired irregularly. If arrived to exercise is, them corresponding votes will be null and the agreements will be contested according to it planned in the chapter IX of the title V of the text consolidated of the law of societies of Capital, approved by the Real Decree legislative 1 / 2010, of 2 of July, for what will be legitimate it address General of safe and funds of Inns.

(b) if necessary, shall be taken on the insurance or reinsurance entity any or some of the special control measures provided for in the articles 160 to 163.

(c) in addition, will be imposed administrative sanctions that apply in accordance with chapter II of title VIII.

2 when certifying a significant stake-holders to exert an influence that goes to the detriment of the sound and prudent management of an insurance company or reinsurer, which severely damage your financial situation, or that are no longer suitable in a sudden way, may adopt one or more of the measures provided for in the preceding paragraph, even if the suspension of the voting rights may not exceed three years. Exceptionally, the Minister of economy and competitiveness, on the proposal of the General Directorate of insurance and pension funds, may revoke the authorization.

Article 87. Obligations concerning the reduction of a significant stake in an insurance or reinsurance entity.

1. any natural or legal person who has decided to have, directly or indirectly, in any insurance company or reinsurer, meaningful participation previously shall in writing notify the General Directorate of insurance and pension funds and communicate the expected amount of the decrease of their participation. That person shall also notify the General Directorate of insurance and pension funds if you have decided to reduce their meaningful participation, so that the percentage of voting rights or capital possessed less than twenty, thirty or fifty per cent either that he could lose control of the insurance or reinsurance entity.

This obligation also corresponds to the insurance or reinsurance entity which will decrease or stop having the aforementioned significant participation.

2. failure to fulfil this obligation of information will be punished according to the provisions of chapter II of title VIII.

Article 88. Additional information obligations.

The insurance entities shall, at the time of periodic reporting, and also when they are required to do so by the General Directorate of insurance and pension funds, the identity of the shareholders or members that have significant holdings, the amount of such shares and the changes that occur in the shareholders. In particular, significant participation data will be obtained from the annual general meeting of shareholders or members, or information received pursuant to the obligations arising from the law 24/1988, of July 28, the stock market.

Chapter VI operations corporate section 1 transfer of portfolio article 89. Transfer of portfolio between insurance companies.

1 it will be up to the Minister of economy and competitiveness authorizing the operation of transfer of portfolio between insurance companies.


2. the application for approval shall be resolved within six months of receipt by the General Directorate of insurance and pension funds, or the time in which to complete the documentation required and, in any case, within twelve months after its receipt. When the request is not resolved in the previous term, may be rejected. Regulations will establish the authorisation procedure as well as the consequences of the transfer of portfolio produces.

3 the transfer of contract of insurance between insurance companies portfolio may be: to) partial, when you understand a set of policies within one or more bouquets, grouped according to an objective criterion which should be clearly determined in the Convention of assignment with the conditions established by law.

(b) total, when you understand all of the policies in respect of one or more classes. In this case, the authorization of the assignment will declare it revocation to the entity assignor of the authorization administrative for operate in the bouquet or ramos transferred.

Section 2 structural modifications article 90. Structural modifications.

1 it will be up to the Minister of economy and competitiveness authorize operations of transformation, merger, global transfer of active and passive or Division involved in which an insurance company, or any agreement that is analogous to the previous economic or legal effects. For these purposes, and prior to the granting of the authorisation, will be requested report to the Bank of Spain, the Service Executive of the Commission for prevention of money laundering and monetary offences and the National Commission of the stock market, in the aspects within its competence.

2. the application for approval shall be resolved within six months of receipt by the General Directorate of insurance and pension funds, or the time in which to complete the documentation required and, in any case, within twelve months after its receipt. When the request is not resolved in the previous term, may be rejected. According to the rules the rest of the terms of the authorisation procedure shall be established.

3. in all not regulated specifically in this law and its development regulations, and insofar as it does not object to it, shall apply to the transformation, merger, global transfer of assets and liabilities, and Division of insurance companies, commercial and, in particular regulations, provisions of law 3/2009, of 3 April on structural modifications of commercial companies and in cases resulting from application, legislation.

4. in all not regulated explicitly in this law, and in so far as it does not object to it, shall apply to the merger, global transfer of assets and liabilities, and excision of reinsurance entities regulations commercial and, in particular, provisions of law 3/2009, of 3 April on structural modifications of commercial companies.

Article 91. Exceptional circumstances of structural modifications.

Exceptionally, the Minister of economy and competitiveness may authorize it transformation, fusion, assignment global of active and passive, and excision of entities insurance in alleged different to them planned regulations when, served them unique circumstances that converge in the entity insurance that it request, is get a development more suitable of the activity by the entity insurance affected, whenever this not undermine their guarantees financial , them rights of them insured and the transparency in the assumption of the obligations derived of them contracts of safe.

Section 3 statutory modifications article 92. Statutory modifications.

Must be communicated to it address General of safe and funds of Inns them modifications of them statutes that by its object must consist in the registration administrative special.

The communication to the address General of insurance and funds of Inns must perform is within them ten days working following to the adoption of the agreement of modification statutory.

4th groupings and joint insurance or reinsurance entities article 93 section. Groups economic interest and temporary associations of insurance or reinsurance entities.

1. authorities, insurance and reinsurance companies may constitute groups economic interest and temporary associations of companies, in the latter case exclusively among themselves, pursuant to general legislation that regulates them and submission to the control of the General Directorate of insurance and pension funds, in addition to which provides that legislation.

2. exceptionally, the General Directorate of insurance and pension funds may permit temporary unions of companies in which insurance companies or reinsurance companies to integrate with others that are not, the unique circumstances that apply in the insurance company or reinsurance company requesting the temporary union get is a most suitable development of the activity by the entity , provided that this does not undermine their financial guarantees, the rights of policyholders, and transparency in the assumption of the obligations arising from insurance contracts.

Chapter VII conduct of market section 1 policies and rates article 94. Rates premiums and technical bases.

1. the rates of raw must substantiate is in bases technical and in information statistics made in accordance with it willing in this law and in their standards of development. They should be enough, according to reasonable actuarial assumptions, to allow the insurance company to meet the obligations arising from insurance contracts and, in particular, to establish adequate technical provisions.

In the calculation of the tariffs, within the scope of Directive 2004/113/EC of the Council, which applies the principle of equal treatment between men and women in access to goods and services and their supply, may not settle differences in treatment between men and women in premiums and benefits for insured persons When they consider sex as a factor in the calculation. In any case, the costs related to pregnancy and childbirth justified differences in premiums and benefits of persons considered individually.

The provisions in the preceding paragraph except insurance contracts linked to an employment relationship, which allow differentiation in premiums and benefits when it is justified by actuarial factors.

They shall also respect the principles of equality, indivisibility and invariability.

2. the rates of premiums will respond to the regime of freedom of competition in the insurance market without having, to this effect, the character of practice restrictive of competition the use of common statistics, part of the insurance and reinsurance companies, entities for the individual development of its risk premium rates, provided these statistics are prepared in accordance with the regulations of the European Union dictated for the application of article 101.3 of the Treaty operation of the European Union.

Article 95. Policies, rates, and technical documentation of the activity control.

1. contractual conditions and policy models, premium rates and technical bases will not be subject to administrative authorization or shall be the subject of systematic referral to the General Directorate of insurance and pension funds.

However, the General Directorate of insurance and pension funds may require the presentation, provided that you understand it relevant contractual terms and conditions, policy models, premium rates and the technical bases of the insurance entities, as well as contracts, premiums and any other documentation related to the reinsurance activity, models to control if they respect the actuarial principles the provisions contained in this law and its implementing rules, and the regulators of the insurance contract.

The requirement contained in the preceding paragraph may not be for the insurance company or reinsurer precondition for the exercise of their activity.

2. institutions, insurance and reinsurance companies will be at the disposal of the General Directorate of insurance and pension funds the documentation referred to in this article at its registered office.

Section 2 Article 96 reporting obligations. General duty of informing the policyholder.

1 before enter into a contract of insurance, the insurance company must report in writing to the policyholder on the Member State and the authority responsible for control of the activity of the insurance entity, extreme which shall, in addition, included in the policy and any other document in that formalize all insurance contract. Also the information established in the regulation of development of law must supply to the policyholder.

2 before enter into a contract of insurance other than life insurance, if the policyholder is a natural person, or any contract of life insurance, the insurance company shall report in writing to the policyholder on the law applicable to the contract, the provisions relating to claims that they can formulate and statutorily determined on the other ends.


3. in them safe of life in that the taker assumes the risk of the investment is will inform of form clear and precise about that the amount that is going to perceive depends on of fluctuations in them markets financial, alien to the control of the insurance and whose results historical not are indicators of results future.

In those forms of life insurance in which the policyholder do not assume the risk of the investment shall be informed of the expected profitability of the operation whereas all costs. Modalities to which is applicable as well as the methodology of calculation of the expected return will be determined by regulation.

4. by the conclusion of a contract of funeral insurance or sickness insurance, in any of its forms of coverage, the insurance company shall inform in writing to the policyholder on the criteria applied for the renewal of the policy and update the premiums in successive periods, on terms to be determined by regulation.

5. during all the period of validity of the contract of insurance on the life, the insurance company shall inform the policyholder of the modifications of the information initially supplied and, also, on the status of their participation in profits, in the terms and deadlines to be determined according to the rules.

6 such information will be accessible, communicating in the formats and channels appropriate to the needs of persons with disabilities, so that they can effectively access its contents without discrimination and on equal terms.

Section 3-dispute resolution mechanisms. Other provisions article 97. Mechanisms of conflict resolution.

1. the conflicts that may arise between insurance policyholders, insured persons, beneficiaries and third parties or successors in title of any of them with insurance entities will be resolved by the competent courts and judges.

2. also, may submit voluntarily their divergences to decision arbitration in them terms of them articles 57 and 58 of the text consolidated of it law General for the defense of the consumers and users and others laws complementary, approved by the Real Decree legislative 1 / 2007, of 16 of November.

3. Likewise, they may submit their differences for a mediator in the terms provided in the law 5/2012, of 6 July, on mediation in civil and commercial matters.

4. in any case, and except for those cases that prevented the legislation for the protection of consumers and users, they may also refer to arbitration issues litigation, arising or which may arise in the field of freely distributable according to law, in the terms of law 60/2003, of 23 December, arbitration.

5. in the terms laid down in the regulations on the protection of customers of financial services, contained in law 44/2002 of 22 November, measures of reform of the financial system and in its implementing rules, the insurance companies will be required to address and resolve complaints and claims to policyholders, insured, beneficiary, third handicapped or IMSS users any of them can apply related interests and legally recognized rights. For these purposes, entities must have a Department or service charge customer to deal with and resolve complaints and claims.

Article 98. Advertising.

1. the insurance companies may be advertising their services through all means of communication respecting provisions in law 34/1988 of 11 November, General advertising, and provisions of development, as well as to precise standards for its adaptation to the insurance entities listed in the regulation of development of this law.

2. the General Directorate of insurance and pension funds may be approved through circulars, in accordance with in article 17.2, special rules on advertising of the activities referred to in this law.

3. the General Directorate of insurance and pension funds will exercise from actions to obtain the cessation or rectification of the advertising that is contrary to the provisions referred to in the preceding paragraphs, without prejudice to the sanctions that are applicable in accordance with chapter II of title VIII.

Article 99. Protection of personal data.

1. the insurance entities can process the data of policyholders, insured persons, beneficiaries or third parties harmed, as well as of their legal successors without its consent to the sole purpose of ensuring the full development of the insurance contract and the fulfilment of the obligations established in this law and its development provisions.

He treatment of them data of them people before indicated for any purpose different of them specified in the paragraph above shall count with the consent specific of them interested.

(2. them entities insurance may treat without consent of the interested them data related with his health in them following alleged: to) for the determination of it assistance health that had due facilitate is to the handicapped, as well as the compensation that in his case appropriate, when them same have of be satisfied by the entity.

(b) for the proper credit to health providers or reimbursement to the insured or beneficiaries of the costs of health care that would have been conducted in the field of a medical care insurance contract.

He treatment of them data is limited in these cases to those that are essential for the fertilizer of the compensation or it provision derived of the contract of insurance. The data may not be processed for any other purpose, without prejudice to the information obligations under this law.

The insurance entities must inform the insured, beneficiary or the affected third party about the treatment and, where appropriate, of the transfer of health data, in the terms provided in article 5 of the organic law 15/1999, of 13 December, of protection of data of a Personal nature unless, in the case of collective insurance, such obligation is assumed by contract by the policyholder.

3. the insurance entities that are part of a group for the purposes provided for in title V may exchange, without having the consent of the data subject, the personal data that are necessary for the fulfilment of obligations of supervision provided for in this law. Data not be used for any other purpose if it is not contase with the specific consent of the person concerned to do so.

4 entities where appropriate, or insurers, reinsurers, may communicate its reinsurance entities, without the consent of the policyholder's insurance, insured, beneficiary or affected third party data that are strictly necessary for the conclusion of the contract of reinsurance in the terms provided in article 77 of the Law 50/1980, of 8 October, insurance contract or the related operations understanding as such the realization of statistical or actuarial studies, analysis of risks or research for its clients, as well as any other activity related or derived from reinsurance activity.

The transfer of such data for any purpose other than those set forth in the preceding paragraph shall require the consent of the person concerned.

5. the entities that develop on behalf of insurance companies subject to outsourcing activities shall be regarded as responsible for the treatment, and must conform to the system provided for in the organic law 15/1999, of 13 December, and its implementing regulations.

6. in cases of transfer of portfolio provided for in this law, as well as on the transformation, merger or demerger of insurance companies it refers to that, there will be no transfer of data, without prejudice to compliance by the person responsible for the provisions of article 5 of the organic law 15/1999, of 13 December.

7. them entities insurance may establish files common that contain data of character personal for the settlement of claims and it collaboration statistical actuarial with the purpose of allow it pricing and selection of risks and the elaboration of studies of technical insurance. The transfer of such data will not require the prior consent of the affected Party, but the communication to it of the possible transfer of your personal data to common files for the designated purposes, with express indication of the controller, so that you can exercise the rights of access, rectification, cancellation and opposition under the Act.

Common files whose purpose is to prevent insurance fraud without requiring the consent of the affected may also be. However, is necessary in these cases affected communication, in the first introduction of your data, who is the responsible for the file and forms of exercise of rights of access, rectification, cancellation and opposition.

In any case, data relating to health may only be processed with the express consent of the affected.

8. in the information that is to be provided to the policyholder in accordance with article 96 should also merge, in relation to the treatment of your personal data, establishing article 5 of organic law 15/1999, of 13 December.


9. the insurance entities must come within ten days of the cancellation of the data had been provided to them prior to the conclusion of a contract if it did not come to be held, unless they fitted with the specific consent of the person concerned which must be expressly if they were health-related data.

Article 100. Fight against fraud in insurance.

The insurance entities must take effective measures to prevent, prevent, identify, detect, report and remediate fraudulent conduct relating to insurance, because they take either individually or through their participation in files common to which refers article 99.7.

The insurance companies can also sign cooperation agreements with the Ministry of the Interior and the bodies and security forces of the State, as well as with the ministries and police of the autonomous communities that have similar functions, in order to collaborate, each within the scope of its powers, in the prevention and investigation of insurance fraud. In any case, the exchange of information which could be carried out under cover of these conventions will respect provisions of the organic law 15/1999, of 13 December.

Chapter VIII special regime of solvency article 101. Scope of application.

1. the insurance entities domiciled in Spain that do not carry out activities on rule of law of establishment or free provision of services in other Member States or in third countries, are eligible for this special solvency regime if credited having fulfilled all the conditions regulations required for the three years immediately preceding the application and not have to exceed the amounts provided for in the next five years.

When the insurance entities benefiting from this special scheme, exceed any of amounts listed regulations over three consecutive years, they shall be automatically subject to the general regime from the fourth year.

2 in addition, be entitled to the special regime of solvency in the form in which is established by law, the insurance entities domiciled in Spain that do not carry out activities on rule of law of establishment or free provision of services in other States members or in third countries, who are in any of the following situations: to) the mutualities of social welfare which have not obtained permission to operate by ramos and recognized in its rules of procedure having of quotes and benefits a system financiero-actuarial, through which the provision to get by the mutual is in relationship direct with them quotes effectively made e charged and that, them results total to the closing of the exercise, positive or negative, a time covered the obligations legal and of solvency of the entity, is move to them provisions of them mutual active.

(b) guarantee exclusively benefits for the case of death, when the amount of these benefits not exceed of the value half of them expenses funeral by a death or when these benefits are serve in species.

3 the belonging to a group only insurance entities shall benefit from the special regime of solvency if all of them met, individually, the requirements to qualify for the arrangements.

4. the resolution that dictate the address General of insurance and funds of inns will indicate the exercise starting from which the entity can welcome is to the regime special of solvency.

5. the entities that request authorization administrative for the exercise of the activity not may welcome is to this regime special in the time of the authorization initial for the exercise of the activity insurance.

Article 102. Conditions for exercise of the entities subject to the special system.

The entities referred to in this chapter, adjusted his performance to the provisions of this Act that they are applicable and their rules of development, with the following particularities: a) the administrative authorisation does not cover activities under law of establishment or free provision of services in the European Union.

(b) the share capital shall be required in articles 33 and 34.

(c) minimum capital requirements will be adjusted in article 78.

(d) the requirements and rules for the valuation of technical provisions, investment, equity and solvency capital requirements shall comply with the procedure determined by law.

(e) regulations are determined, the requirements of the system of Government for this type of entities.

(f) the requirements of information public about the financial situation and solvency of these entities shall, to the extent that find application, as laid down in chapter III of title III of this Act and its regulatory development.

Chapter IX coinsurance community. Reinsurance limited article 103. Regime of the coinsurance community.

1. the insurance entities participating in Spain in an operation of Community co-insurance as a abridoras, as well as its activities as such coaseguradoras, shall be governed by the provisions applicable to the contract of insurance of large risks.

2. when an insurance contract may qualify for community co-insurance, the obligations imposed on the insurance companies that they operate under freedom to provide services pursuant to articles 57 to 59 apply only to Starter operation entity.

3. Spanish institutions involved in community co-insurance operations shall provide statistical data on transactions involving in each of the Member States.

Article 104. Technical provisions of Community co-insurance.

If a Spanish insurance company participates in an operation of Community co-insurance calculate technical provisions corresponding to its participation in the operation in accordance with the provisions of this Act and the rules that develop, even though the amount of such technical provisions shall be at least equal to the amount calculated in accordance with rules that the Starter operation entity was subject.

Article 105. Reinsurance limited.

The insurance companies or reinsurance companies that held contracts or activities of reinsurance limited shall have means to identify, measure, monitor, manage, control and properly notify the risks arising from such contracts or activities. Specific provisions regarding the requirements for the exercise of activities of reinsurance limited may by regulation be adopted.

Chapter X conditions relating to the exercise of the activity by subsidiaries of insurance companies and reinsurance companies from third countries article 106. Financial guarantees of the branches of insurance and reinsurance entities domiciled in third countries.

1. the branches of insurance and reinsurance entities domiciled in third countries carried out its activity with subjection to the provisions laid down in this law and its implementing rules for the entities domiciled in Spain, except those relating to the activity in system of right of establishment and of free provision of services in the European Union, that in no case will be applicable so that its risks should always be located and commitments assumed in Spain.

2. Notwithstanding the provisions in the preceding paragraph, and without prejudice to agreements concluded by the EU with third countries, be taken into account the rules that are specified by law.

Article 107. Regime of the branches of institutions domiciled in third countries, undertaken in several Member States.

1. Notwithstanding the provisions of article 106, and without prejudice to the agreements concluded by the EU with third countries, to the branches in Spain of entities domiciled in third countries which, in turn, have branches in other Member States, may apply them regime which is determined according to the rules.

2. for the purposes of this regime, the entities should apply for it to the General Directorate of insurance and the authorities and pension funds supervisory of other States members that have branches, proposing approval authority supervisor wants to that subject, which will be responsible, hereinafter, verify the solvency of all branches authorized in the EU for all its operations.

Approval of the application will require the agreement of all supervisory authorities involved and the procedure may only be applied from the date when selected supervisory authority, in case of not being Spanish, notify the General Directorate of insurance and pension funds committed to check the creditworthiness of all branches established in the EU for all its operations.

3. the General Directorate of insurance and pension funds must provide the supervisory authority responsible for controlling the solvency, the necessary information with respect to the Branch Office established in Spain, so that it can check the overall solvency.


4. the application of this regime may conclude by decision of the address General of safe and funds of inns or of any of the other authorities of supervision involved. The termination of the application of the regime will affect to all them branches authorized in the Union European. To these effects, it address General of safe and funds of Inns communicated his decision to the rest of authorities of supervision involved and, in case of have is adopted it decision by another of them authorities of supervision involved, it termination in the application of the regime is will produce from it date in that it address General of safe and funds of Inns receive it communication of it authority supervisor that has adopted the decision.

5 a the purposes of articles 156, 157 and 160.1. to), the supervisory authority responsible for checking the overall solvency will be equated, in terms of its powers for the whole of the branches, to the supervisory authorities of entities domiciled in the European Union.

6. in case of revocation of the authorization granted to the branch established in Spain, the General Directorate of insurance and pension funds shall inform the supervisory authorities of the other Member States.

The General Directorate of insurance and pension funds, upon receipt of the communication of the revocation of the authorization granted to a branch established in another Member State, shall take the appropriate measures, and if the revocation was motivated by failure of the overall solvency, will proceed to revoke the authorization granted to the branch in Spain.

Article 108. Equivalence of the regime of solvency of the reinsurance entities in third countries.

1 must be evaluated if the regime of solvency, that a third country applies to the activities of reinsurance entities whose registered office is in that third country is equivalent to that provided for in the European Union, in accordance with the following paragraphs: to) this equivalence shall be determined by the Commission in accordance with the criteria that is specified, with the assistance of the European insurance and pensions for retirement authority.

The list of equivalent prudential regimes will be published by the European authority of insurance and pensions for retirement on its web site and will be kept updated. The decisions of the Commission shall be periodically reviewed in order to keep updated to cater for any substantial modification of the system of supervision of the EU and the third country supervisory regime.

((b) when not met all the criteria set out in paragraph a), equivalence can be determined on a temporary basis by the European Commission, with the assistance of the European insurance and pensions for retirement authority, in accordance with the criteria established by regulation.

The list of third countries for which it has been determined a temporarily equivalent solvency regime, will be published by the European authority of insurance and pensions for retirement on its website and will keep it updated. The decisions of the Commission shall be reviewed regularly in order to keep updated with reports on the progress made by the third country, which will be submitted to the Commission annually for evaluation with the help of the European authority of insurance and retirement pensions.

(The regime of equivalence temporary will be of five years starting from the 1 of January of 2016 or will conclude in the date in that, of conformity with the paragraph to), the regime prudential of that third country is consider equivalent, if this last date is earlier. This period may be extended as maximum one year when necessary so the European insurance and pensions authority and the Commission carry out the evaluation of the equivalence for the purposes of paragraph a).

2. in the event that a third country solvency regime should be considered equivalent, the reinsurance contracts with reinsurance entities whose registered office is situated in the third country will have equal consideration to the reinsurance contracts concluded with a reinsurance entity authorized pursuant to the provisions of this law.

Title IV Supervision of insurance and reinsurance institutions chapter I General principles article 109. Subjective and objective scope of supervision.

1. the General Directorate of insurance and pension funds shall exercise their functions of supervision on insurance and reinsurance entities authorized to operate in Spain, including activities carried out through branches and free provision of services regime, as well as other entities and individuals referred to in article 2.

2. the monitoring will consist of continuous verification of the correct exercise of the activity of insurance or reinsurance, financial situation, conduct market and compliance with the rules of supervision of the insurance or reinsurance entities.

Article 110. Proportionality of the actions of the General Directorate of insurance and pension funds.

1. without prejudice to the purpose of this law, established in article 1, the General Directorate of insurance and pension funds properly consider the effects of their decisions on the stability of the financial system, in particular in emergency situations, taking into account the information available at the right time. In times of great instability, shall take into account, in addition, the potential pro-cyclical effects of their decisions.

2. monitoring activities will be carried out form provided to the nature, complexity and scale of the risks inherent to the activity of insurance or reinsurance entities.

Article 111. Transparency of supervisory action.

1. the General Directorate of insurance and pension funds shall exercise the supervision of insurance companies and reinsurers in a transparent manner and properly guaranteeing the protection of confidential information.

2. the General Directorate of insurance and pension funds elaborate guidelines, aimed at institutions subject to its supervision, indicating the criteria, practices or procedures that are considered appropriate for the compliance of monitoring. These guides, which should be made public, may include the criteria that the own Directorate of insurance and pension funds will follow in the exercise of its oversight activities.

To this end, the General Directorate of insurance and pension funds may endorse, and transmitted as such, as well as develop, complement or adapt guidelines, addressed to the subjects under their supervision, approval bodies or international committees active in the regulation or supervision of insurance or pension plans.

Article 112. Convergence of supervisory practices.

In the frame of them political community of stability e integration financial, it address General of insurance and funds of inns will have in has, of way proper, the dimension European of the supervision of them entities insurance and reinsurance through it convergence in them instruments and practices of supervision.

To these effects, the address General of insurance and funds of inns will participate in the activities of the authority European of safe and Inns of retirement.

Article 113. General powers of supervision.

1 in the exercise of their functions of supervision of insurance and reinsurance companies and the terms set out in this Act and other regulatory rules of private insurance, the General Directorate of insurance and pension funds will have the following powers: to) require all the information that is necessary for the purposes of monitoring, statistics and accounting, in accordance with article 114.

(b) access to any document in any form and to receive a copy of the same.

(c) require any person submitting information in the term reasonably fixed by the General Directorate of insurance and pension funds and, if required, quote and take a person to obtain information.

(d) conduct inspections and necessary checks.

(e) require the records of telephone and data traffic available to them.

(f) require insurance and reinsurance entities and to the members of its organs of administration or address or the persons that control them, the contribution of expert reports, auditors of its organs of internal control or verification of compliance.

(g) develop, complementary to the calculation of the solvency capital requirements and when appropriate, the necessary quantitative tools in the framework of the monitoring process, in order to assess the capacity of the insurance companies and reinsurance companies to cope with possible events or future changes in economic conditions that could negatively affect your overall financial situation. It may also require that institutions carry out the corresponding tests.

(h) adopt preventive and corrective measures that are necessary in order to ensure that insurance and reinsurance entities adhere to the rules governing its activity must meet.


(i) any action taken as a result of a breach of the applicable standards, make public unless its disclosure could put at serious risk the insurance market or cause harm disproportionate to those affected.

(j) many other functions are necessary for the exercise of financial supervision, of the supervision of conduct of market and supervision by inspection in the field of institutions and groups.

2 former faculties may also exercise with regard to outsourced activities of insurance and reinsurance companies, entities in accordance with what is established by law and in the regulations of the European Union of direct application.

3. them performances of supervision is develop by them officials belonging to the body top of inspectors of insurance of the State with the collaboration of officials belonging to them bodies technical of the Administration General of the State, as well as of officials experts computer.

4. without prejudice of them powers of supervision listed in them paragraphs earlier, it address General of safe and funds of Inns may start the procedure of supervision by inspection in the terms established in the chapter IV of this title.

5. in the absence of special rules of procedure, it shall apply the law 30/1992, of 26 November, legal regime of public administrations and common administrative procedure.

Article 114. Information that should facilitate it for the purposes of monitoring, statistical and accounting.

1. them entities insurance and reinsurance will supply to the address General of insurance and funds of Inns it documentation and information that are necessary for the purposes of the exercise of the function supervisor. Such documents and information shall include, at least, which is necessary for the proceedings in the framework of the monitoring process laid down in article 117.2.

In addition, insurance and reinsurance entities shall provide to the General Directorate of insurance and pension funds documentation and information for statistical and accounting purposes.

2. the General Directorate of insurance and pension funds may determine the nature, scope and format of the information referred to in paragraph 1, whose presentation is required, well periodically, in those cases in which situations are given defined in advance, either by individual requirements or in the course of inspection activities.

The General Directorate of insurance and pension funds may also require any information relating to contracts held by intermediaries or to contracts entered into with third parties. You may also request information from auditors of accounts, in accordance with provisions of the regulatory activity of audit of accounts, Actuaries and other external experts of the entities.

3. the information referred to in paragraphs 1 and 2 shall include data qualitative or quantitative, whether historical, current or planned data, and already come from internal or external sources, or any appropriate combination thereof, and shall conform to the principles determined by regulation.

4 insurance and reinsurance entities must have systems and structures appropriate to meet the requirements established in this article as well as a written policy approved by the Board of Directors of the entity, which ensure the continuous adaptation of the information presented.

Article 115. Supervision of insurance and reinsurance entities of the European Union operating in Spain under law of establishment or free provision of services.

1. the address General of insurance and funds of inns will oversee the activity of them entities insurance and reinsurance of others States members that operate in Spain in regime of right of establishment or of free provision of services, with regard to the compliance of them provisions that les are applicable by reason of interest general and them of the chapter VII of the title III. For these purposes will be subject to the procedure of monitoring by inspection of chapter IV of this title.

2. If the General Directorate of insurance and pension funds have reason to consider that the activities of an insurance or reinsurance entity that operate through branch or free provision of services in Spain might affect its financial soundness, you inform the supervisory authorities of the Member State of origin.

3. when an insurance or reinsurance entity authorised in another Member State to exercise its activity in Spain through a branch, the home Member State supervisory authority may conduct, itself or through the persons designated for this purpose, prior information to the General Directorate of insurance and pension funds, the on-site verification of the information necessary to carry out the financial supervision of the entity.

The General Directorate of insurance and pension funds may participate in that verification.

Article 116. Supervision of Spanish branches established in another Member State.

1. when an insurance or reinsurance entity authorised in Spain performs its activity in another Member State through a branch, the General Directorate of insurance and pension funds may conduct, itself or through persons designated for this purpose, prior information to the supervisory authority of the host Member State, to the verification of the information necessary to carry out the financial supervision of the entity on-site.

The authorities of the host Member State concerned may participate in that verification.

When the General Directorate of insurance and pension funds to inform the supervisory authorities of the host Member State which intends to carry out an inspection pursuant to this article, and when in practice be banned exercise their right to carry out such inspection, the General Directorate of insurance and pension funds may refer the matter to the European insurance and pensions authority and request its assistance. This authority shall be entitled to participate in the inspections when they are carried out jointly by two or more supervisory authorities.

2. If the General Directorate of insurance and pension funds outside informed by the supervisory authority of another Member State, that an insurance or reinsurance entity Spanish to operate in that State through a branch or free provision of services, carried out activities that might affect its financial soundness, you will find that entity noted prudential principles that are enforceable.

Chapter II monitoring article 117 financial. Content of financial supervision.

1. the financial supervision shall consist, in particular, in checking, for all activities of the entity that is supervised, of the system of Government, of solvency, the establishment of technical provisions, assets and eligible own funds, in accordance with the rules that may apply, as well as the verification of the fulfilment of the remaining obligations imposed by this law and its implementing rules.

In addition, in the case of insurance companies that guarantee the provision of a service, supervision shall extend also to the technical means at their disposal entities to carry out operations that have undertaken to carry out.

The monitoring of the financial situation will be based on a prospective and risk-oriented approach.

2. the General Directorate of insurance and pension funds will review and evaluate the strategies, processes and the reporting procedures established by insurance and reinsurance entities in order to comply with the provisions contained in this law and in the other regulations of private insurance.

The review and evaluation shall include the analysis of the legal, technical and financial situation of the Organization and, in particular, compliance with the requirements laid down in the regulation of development of this law on solvency, technical provisions, capital, investment rules, equity and models inmates when they are used.

3. the General Directorate of insurance and pension funds will assess the adequacy of the methods and practices of insurance companies and reinsurance companies to determine possible events or future changes in economic conditions that could negatively affect the overall financial situation of the entity considered. Also, assess the capacity of institutions to withstand those possible events or future changes in economic conditions.

4 insurance and reinsurance entities should remedy the shortcomings or deficiencies identified in the development of the monitoring.

5. revisions and evaluations will take place on a regular basis. Regulations will establish the minimum scope of reviews and evaluations according to the nature, scale and complexity of the activities of the insurance or reinsurance entity considered.

Chapter III Supervision of conduct of market article 118. Content of the supervision of market behavior.


It supervision of them behaviors of market shall ensure by it transparency and the development ordered of the market of safe, it freedom of them takers for decide it recruitment of them safe and it insurance with which it hire and, general, it protection of takers, insured and beneficiaries promoting the broadcasting of account information is necessary for ensure the achievement of those purposes , of conformity with it provisions in this law and in their standards of development.

The performance of the General Directorate of insurance and pension funds shall be without prejudice to the possible qualification of such practices as restrictive of competition by competition authorities, pursuant to the provisions of articles 1, 2 and 3 of the law 15/2007, of July 3, for the defense of competition.

Article 119. Administrative protection.

1. the protection of users in the field of private insurance is exercised by the General Directorate of insurance and pension funds, in the terms provided in this law, in law 44/2002 of 22 November, measures of reform of the financial system, and in its implementing rules.

2. the General Directorate of insurance and pension funds will resolve complaints and claims that policyholders, insured, beneficiaries, third parties and associations, which are associated with legally recognized rights and interests and which derive from alleged breaches by the claimed bodies of rules of transparency and protection of customers or good practices in the insurance market.

The General Directorate of insurance and pension funds will resolve the complaints and claims submitted by motivated reports, which will not have any character of appealed administrative act.

3. the neglect of the requirements made by the General Directorate of insurance and pension funds derived from reports issued by the General Directorate of insurance and pension funds claims service will result, depending on the case, the imposition of administrative sanctions to offences classified in the title VIII or ban regulated in article 120.

4. When is appreciate signs of breaches repeated or serious of them standards of transparency and protection to the clientele or of them good practices in the market of safe from an entity insurance, it address General of safe and funds of inns will adopt the measures that correspond in the frame of a procedure of supervision.

Article 120. Prohibition of policies and rates.

The General Directorate of insurance and pension funds may prohibit the use of policies and rates of premium that do not comply with the provisions of articles 94 and 95 by resolution. For these purposes, is will instruct the corresponding administrative procedure which may agree, as an interim measure, the suspension of the use of policies or the rates of premiums.

Prior to the initiation of the administrative procedure concerned prohibition you remember, the above-mentioned Directorate-General may require the insurance entity so that it fits their policies or rates of premiums to the provisions of the above-mentioned articles.

Chapter IV Supervision by inspection article 121. Performances of inspection.

1 to the appropriate exercise of supervision which has assigned functions, the General Directorate of insurance and pension funds may exercise the Inspector faculty under the terms provided by this chapter. The supervision can develop through the inspection procedure.

2. the inspection will be on practices of market, the legal situation, technical, economic and financial and solvency, as well as the conditions in which exercise their activity and the marketing practices, in order that the General Directorate of insurance and pension funds to properly perform competencies has attributed. It may be general or referred to certain issues.

Article 122. Subject of the activity Inspector.

They may be subject to inspection the following entities and individuals: to) insurance and reinsurance entities authorized to operate in Spain, including the activities carried out through branches and of free provision of services.

(b) the remainder of entities and subject referred to in the article 2.

(c) entities that are presumed to be part of a group of insurance companies.

(d) person performing operations that can, in principle, described as insurance, to check if they exercise the activity without prior administrative authorization.

(e) those who exercise functions outsourced of entities of insurance and reinsurance.

Article 123. Staff inspector.

1. inspection actions will be carried out by the body top inspectors of insurance of State officials. In the performance of their duties they will have the status of public authority.

2 civil servants belonging to the technical bodies of the General State administration, as well as computer expert officials, can only help in tax proceedings on the terms to be determined in the regulation of development of this law.

Article 124. Inspection powers.

1. for the proper exercise of its functions, inspector staff may examine the books, records and documents, whatever its support, including software and magnetic, optical or any other kind, files relating to the operations of the entity, in the terms in which to develop regulations.

2. also may request you make it submitted or delivered one copy for the purpose of its incorporation into the inspection report, and the insurance company 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 had grounds, you can object to the delivery of a copy of the documentation stating your reasons in writing for its incorporation in the inspection report.

3. the activities of inspection may develop either at the registered office of the inspected subject, in any of its branches, where it made totally or partially its activity, premises from where you provide services, functions or activities of insurance and reinsurance when these are outsourced, and at the offices of the General Directorate of insurance and pension funds when the elements on which to be carried out may be in them examined.

Officials of the State inspection of insurance will have access to the registered office and the local branches and offices in which to develop activities by the inspected person, entity or entities that will exist form group. Regards the constitutionally protected residence, and in the case of opposition, they shall specify the relevant judicial authorization and, in the case of other units of the General Directorate of insurance and pension funds.

4. the inspection of market practice can be started without prior notification or identification of the officials involved, assuming these condition of mere users or interested in the products or services offered, with the purpose of knowing as well as faithfully as possible the actual conditions of such practices which shall be recorded in the report.

Article 125. Documentation of the review proceedings.

1. inspection actions will be documented in records of inspection, which may be preliminary or definitive.

Previous records of inspection will be lifted when inspectors actions prove to be sufficient to handle the procedure of supervision by inspection, if waiting until the formulation of the final record to jeopardize the protection of the interests of policyholders or the attitude of the entity or person inspected or other concurrent circumstances in the inspection instruction so requires it.

(2. with independence of the content and form that is determine regulations, in them records of inspection is will reflect, in his case: to) them made recorded by the inspector acting that are relevant for the purposes of the qualification legal of the conduct or activity inspected.

(b) the situation of legal, technical, economic and financial and solvency for the actions carried out by the Inspectorate.

(c) the causes that could determine the revocation of the authorization, the administrative dissolution, special control measures, the adoption of a plan of recovery or the plan of short-term funding, the increase of the amount of the technical provisions, the requirement of capital of additional compulsory solvency as well as the imposition of administrative sanctions.

(d) the proposal for the revocation of the authorisation, administrative dissolution of the insurance company, of measures of special control, a plan of recovery or short-term funding in cases of financial deterioration or increase the amount of technical provisions or the solvency capital requirement mandatory additional.

3 will be part of the inspection report, to all effects, its annexes and proceedings extended by the inspector during his comprobadora activity.

4. the records of inspection nature of public documents and make proof of the facts therein recorded and verified by the inspector acting, unless credited otherwise.

Article 126. Procedure of supervision by inspection.


1 the administrative procedure of supervision by inspection shall conform to the following procedures: to) will occur by agreement of the General Directorate of insurance and pension funds which will be determined the aspects that have to be subjected to inspection.

(b) the inspection actions prior to the lifting of the Act will be, since the agreement of the General Directorate of insurance and pension funds which ordered the inspection, the duration that is required for the proper fulfilment of the mandate contained in the inspection order.

(c) the inspection report shall be notified to the person concerned, who shall have fifteen days to prepare arguments and propose tests that it deems appropriate in defense of their right to the General Directorate of insurance and pension funds. If hindrances tests and they were admitted, they should practice in a period not exceeding ten days.

(d) If after allegations of the interested entity and, where appropriate, the practice of testing, to undertake new actions of instruction of the administrative procedure of supervision by inspection, they will be collected in a supplementary Act and new procedure of hearing will be given to the term of eight days.

(e) in view of the proceedings, the General Directorate of insurance and pension funds will dictate a resolution that will end the procedure.

(f) in the event that the inspection report contains a proposal to increase the amount of technical provisions, solvency capital requirement mandatory additional, of measures of special control, a plan of recovery or short-term funding in cases of financial deterioration, revocation of the authorization or administrative dissolution of the insurance or re-insurance agency , the resolution shall adopt, if had place to this, them measures of increase or of control special relevant, the plan of recovery or of funding to short term, begin the procedure of dissolution administrative of it entity insurance or reinsurance, or of revocation of the authorization administrative.

2. the period for issue resolution will be of six months from the notification of the Act. In the case referred to in point (d)) (1), this term will be calculated starting from the notification of the complementary Act.

Chapter V duty of secret professional and use of information confidential article 127. Duty of secret professional.

1. unless the registered data in the administrative register referred to in article 40, the data, documents and information that are held by the General Directorate of insurance and pension funds under many functions entrusted this law will have reserved character.

2. all persons who exercise or have exercised an activity of management and supervision of insurance companies and reinsurance companies, as well as those who have entrusted functions with respect to such entities, will have the obligation of professional secrecy on confidential information which receive professionally in the exercise of that function. The breach of this obligation will determine criminal responsibilities and the others laid down by laws. These people may not give testimony or statement or publish, communicate, or display data or booked documents, even after having ceased service, unless express permission granted by the General Directorate of insurance and pension funds that in no case shall relate to the personal data. If such permission is not granted, the affected person will keep the secret and will be exempt from responsibility emanating from it.

3 except for the obligation of secrecy established in the preceding paragraph the following assumptions: a) when the person concerned consents expressly dissemination, publication or communication of data.

(b) the publication of data aggregated for statistical purposes, or communications in the form of summary or aggregated so that individual institutions can not be identified even indirectly.

(c) the information required by those authorities court competent in a process criminal.

(d) the information which, in the context of the insolvency proceedings to which is under an insurance company or reinsurer, are required by the judicial authorities, provided that they not related to third parties interested in the rehabilitation of the entity.

(e) them information that, in the frame of them resources administrative or contentious in that is contested resolutions administrative dictated in the exercise of the powers of supervision of the activity of them entities insurance and reinsurance, are required by them authorities administrative or judicial competent.

(f) the information required by the parliamentary commissions of inquiry, in the terms established by the parliamentary regulations. For this purpose, the General Directorate of insurance and pension funds may request approval from the competent bodies of the camera secret session or the application of the procedure laid down for access to classified materials.

The judicial authorities, as well as members of a parliamentary Committee of inquiry who receive restricted information, will be required to take appropriate measures that will guarantee your reservation.

4. the provisions of this article are understood without prejudice to the powers of investigation conferred on the European Parliament in article 226 of the Treaty on the functioning of the European Union.

Article 128. Exchange of confidential information.

(1. However it willing in the article earlier, them information confidential may be supplied to them people and entities that is listed then to facilitate the compliance of their respective functions, which will be to your time forced to the duty of secret professional according to it willing in said article: to) them authorities competent for the supervision of them entities insurance and others entities financial in them remaining States members.

(b) the Bank of Spain, the National Commission of the market of values and other entities or bodies responsible for the supervision of accounts and solvency of financial institutions).

(c) the Consorcio de Compensación de Seguros in the exercise of their duties of liquidator of insurance companies and guarantee fund as well as in relation to the information necessary for the verification of the charges provided for in article 18 of the text revised the Statute Legal of the consortium of compensation of insurance, approved by Royal Legislative Decree 7/2004 , October 29.

(d) the authorities responsible for combating money laundering.

(e) the Auditors of accounts of the insurance companies and reinsurance companies and their groups, and the Institute of accountancy and audit of accounts.

2. the confidential information may also provide to the tax administration in accordance with articles 93 and 94 of the Act 58/2003, of December 17, General tax, delegated authorization of the Minister of economy and competitiveness.

3. in addition, confidential information may be received from individuals and entities referred to in paragraph 1 above. Confidential information thus received, as well as those obtained by inspection of branches of Spanish insurers and reinsurers entities established in other Member States, shall not be subject of the communication referred to in that paragraph, unless express agreement of the competent authority which has communicated the information or of the competent authority of the Member State of the branch , respectively.

Article 129. Cooperation with the European authority of insurance and retirement pensions.

The General Directorate of insurance and pension funds will provide without delay to the European authority of insurance and retirement pensions all the necessary information so that it meets its obligations.

Article 130. Cooperation agreements with third countries.

1 the cooperation agreements which expected the exchange of information with the authorities of third countries competent for the supervision of insurance companies, reinsurance companies and other financial institutions or with other authorities, bodies and natural or legal persons from third countries, will require that the information provided is protected by guarantees of professional secrecy at least equivalent to those referred to in article 127 There is reciprocity and that Exchange of information is aimed at the fulfilment of the tasks of supervision of those authorities, bodies and natural or legal persons.

2. the General Directorate of insurance and pension funds may transfer personal data to third countries in accordance with title V of the organic law 15/1999, of 13 December, of protection of data of a Personal nature.

3. when the information have their origin in another Member State may not be disclosed without the express agreement of the competent authorities that have provided it and, where appropriate, solely for the purpose for which these authorities have agreed.


4. without prejudice of it willing in them paragraphs earlier, it address General of safe and funds of Inns may deny is to facilitate information to them authorities competent of third countries when the supply of such information harm to it sovereignty, to the security or to the order public, or is had started before them authorities Spanish procedures judicial or dictated by such authorities sentence firm in such procedures on them same made and against them same responsible with regard to them that the information is requested.

Title V Supervision of insurance companies and reinsurers General Chapter I provisions of article 131 groups groups. Definitions and rules on the supervision of insurance and reinsurance groups.

1 a effects of the provisions of this title, means: to) parent company: as defined in article 9, as well as any entity which, in the opinion of the supervisory authorities, effectively exercises a dominant influence on another entity.

(b) subsidiary entity: defined as such in article 9, as well as any entity which, in the opinion of the authorities of supervision, a parent entity effectively exercises a dominant influence.

(c) participation: defined as such in article 9, as well as the possession, directly or indirectly, of voting rights or capital in an entity which, in the opinion of the supervisory authorities of, there is effectively a significant influence.

(d) participating entity: A parent company or other entity which holds a participation, or else any entity linked with another is subject to a unique address or because its administrative, management or control bodies, consisting mostly of the same people.

(e) related entity: an entity which is a subsidiary or other entity in which a holding subsists or that is linked to another is subject to a unique address or because its administrative, management or control bodies, consisting mostly of the same people.

(f) Group: whole set of entities: 1 is composed of a participating entity, its subsidiaries and the entities in which the participant or its affiliates possess a share, as well as entities linked by being subject to a unique address or because its administrative, management or control bodies, consisting mostly of the same people; or 2nd is base in a recognition, contractual or of another type, of links financial solid and sustainable between those entities, that can include mutual and mutual of forecast social, whenever: i. an of those entities, that will be considered the entity matrix, exercise effectively, through coordination centralized, an influence dominant in them decisions, included them decisions financial, of all the entities that form part of the Group that are considered to be subsidiaries entities;

II. the establishment and dissolution of that relationship, for the purposes of this title, subject to the authorization of the supervisor of the Group; and iii. in the case of mutual or mutual social welfare groups conform to what is determined by law.

(g) group supervisor: the authority responsible for the supervision of group supervision, determined pursuant to the provisions of article 134.

(h) College of supervisors: permanent and flexible cooperation and coordination, structure to facilitate decision making relating to the supervision of a group.

(i) insurance holding company: a parent company whose main activity consist of purchase and own shares in subsidiaries which are exclusively or mainly insurance companies or reinsurers, including entities domiciled in third countries when in this case at least one of the subsidiaries is domiciled in the European Union, and not be a mixed portfolio financial company.

(j) joint insurance holding company: A parent entity distinct from an insurance company, an insurance company of a third country, a reinsurance entity, a reinsurance entity of a third country, a holding company of insurance or a mixed financial holding between subsidiaries whose company has at least one insurance or reinsurance entity.

(k) mixed financial holding company: the defined as such in article 2.7 of the law 5/2005, of 22 April, supervision of financial conglomerates and amending other laws in the financial sector.

(l) intra-group transactions: all operations that relate directly or indirectly to an insurance company with other companies of the same group or with any physical or legal person closely linked to entities in that group for the fulfilment of an obligation, whether or not contractual, and whether or not it seeks a payment.

(m) regulated entities: those defined as such in article 2.3 of law 5/2005, of 22 April, supervision of financial conglomerates and amending other laws in the financial sector.

2. the provisions of this law on the supervision of insurance and reinsurance groups shall apply without prejudice to the obligations deriving from the rules of supervision for institutions taken individually.

Article 132. Groups subject to supervision.

1 shall be subject to supervision groups consisting of: a) insurance companies or reinsurance companies that are participating in, at least, an insurance entity entity or reinsurance company, even in an insurance company or reinsurance company of a third country;

(b) entities insurance or reinsurance companies whose matrix is a society of portfolio of insurance or a society financial mixed of portfolio with address social in the Union European;

(c) entities insurance or reinsurance whose matrix is a society of portfolio of insurance or a society financial mixed of portfolio that have their domicile social out of the Union European, or an entity insurance or reinsurance of a third country;

(d) insurance companies or reinsurance companies whose matrix is a mixed portfolio of insurance company.

2. when a mixed financial holding company is subject to equivalent provisions in conformity with this law and the law 5/2005, of 22 April, of supervision of financial conglomerates and why other laws in the financial sector, amending in particular it referred to the requirements of supervision based on risk the General Directorate of insurance and pension funds where the Group supervisor, after consultation with the other supervisory authorities concerned, may decide to only apply the relevant provisions of the aforementioned law 5/2005 to the mixed financial holding company.

3. when a society financial mixed portfolio is subject to equivalent provisions in conformity with this law and the law 10/2014, 26 June, management, supervision and solvency of credit institutions, or with the law 24/1988, of July 28, the stock market, and its respective provisions of development, particularly in what refers to the requirements of supervision based on risk the General Directorate of insurance and pension funds where the Group supervisor, after consultation with other authorities responsible for the supervision of subsidiaries of the mixed financial holding company, may decide to apply to this company only provisions of law 10/2014, on June 26, management, supervision and solvency of credit institutions , or of the law 24/1988, of July 28, the stock market.

4 the General Directorate of insurance and pension funds, wherever the Group supervisor, shall inform the banking supervisory authority and the European authority of insurance and retirement pensions, the decisions taken pursuant to paragraphs 2 and 3.

Article 133. Scope of application of the supervision of group.

1 group supervision will not necessarily involve the exercise of oversight functions about the insurance companies and reinsurance companies of a third country, insurance holding companies and mixed financial holding, without prejudice to companies what will be available according to the rules, or mixed insurance holding companies, all of them considered individually.

2 in the event that the General Directorate of insurance and pension funds is the Group supervisor may agree that does not include an entity in group supervision, when you are in any of the following cases: a) the entity is domiciled in a third country where there are legal impediments for submitting the required information , without prejudice to what is provided by law;

(b) the entity present an insignificant interest in attention to the objectives of the supervision of group; or (c) the inclusion of the entity are inappropriate or misleading in relation to the objectives of the supervision of group.

Still, although individually considered, several companies of the same group may be excluded on the basis of provided for in point (b)), these entities should be included if they jointly have significant interest in relation to the objectives of the supervision of group.

(In the case of the letters b) and (c)), the General Directorate of insurance and pension funds, before remember the non-inclusion of the entity in the field monitoring group, shall consult the other supervisory authorities concerned.


(Agreed by the General Directorate of insurance and pension funds non-inclusion in the monitoring group of an insurance or reinsurance entity that has its head office in another Member State, under the assumptions of the letters b) or c), the supervisory authorities of the Member State where it is domiciled not included entity may ask the Spanish institution that figure at the head of the group all information necessary for the supervision of the entity insurance or re-insurance considered.

((3. when it authority of supervision of another State Member, that is supervisor of group, agreed it not inclusion of an entity insurance or reinsurance Spanish in it supervision of group under alleged analogues to them planned in them lyrics b) or c) of the paragraph previous, it address General of safe and funds of Inns may request to the entity that figure to the head of the group all information that can facilitate the supervision of it entity insurance or Spanish reinsurer that has not been included in the group supervision.

Chapter II exercise of the supervision of groups section 1st functions and powers of the direction General of safe and funds of inns as supervisor of group article 134. Performance of the duties of the Group supervisor by the General Directorate of insurance and pension funds.

1. the address General of safe and funds of Inns shall exercise the functions of supervisor of group when all them entities of the group have their domicile social in Spain.

(2. in the event that not all them entities of the group have its domicile social in Spain, it address General of safe and funds of inns will exercise them functions of supervisor of group when is find in any of them following alleged: to) to the head of the Group figure an entity insurance or reinsurance that have its domicile social in Spain.

(b) at the head of the group appears an insurance holding company or mixed portfolio financial company, if all the insurance companies or reinsurance subsidiaries of the insurance holding company has its registered office in Spain.

(c) at the head of the group appears in an insurance holding company or financial joint holding company which has its head office in Spain, if also one of the insurance companies or reinsurance subsidiaries of the insurance holding company or mixed financial holding company has its head office in Spain.

(d) at the head of the Group include several insurance holding companies or financial Ventures portfolio with registered office in Spain and other Member States, if it has its registered office in Spain the insurance or reinsurance entity whose balance sheet total is the largest of all insurance and reinsurance entities with registered office in the European Union.

(e) several insurance companies or reinsurance domiciled in different Member States have as a matrix to a society's portfolio of insurance or financial mixed holding company that does not have domicile in Spain or in another Member State where there is a subsidiary, if it has its registered office in Spain the insurance or reinsurance entity whose balance sheet total is greater.

((f) the group lacks matrix, or in any other circumstances not referred to in the lyrics to) to e), if it has its registered office in Spain the insurance or reinsurance entity whose balance sheet total is greater.

3. regulations shall be determined cases in which not even realizing the circumstances referred to in paragraph 2, it shall be responsible to the General Directorate of insurance and pension funds assume the functions of group supervisor, as well as cases that concurring circumstances, such General address do not assume the functions of group supervisor.

Article 135. Powers of the General Directorate of insurance and pension funds as a group supervisor. College of supervisors.

1 the direction General de Seguros y Fondos de Pensiones as group supervisor shall have the following powers: to) coordination of the gathering and dissemination of information relevant or necessary for ordinary situations and emergencies, including the dissemination of information which magazine importance for the function of the supervisory authorities.

(b) the monitoring and evaluation of the financial situation of the group.

(c) checking that the Group complies with the provisions on solvency and of risk concentration and intra-group transactions.

(d) the examination of the system of Government of the Group and whether the members of the management or direction of the participating entity body meet the requirements laid down in article 38 and others established by law.

(e) the planning and coordination, through meetings at least on annual basis or through other appropriate means, of monitoring in ordinary situations and emergencies, in cooperation with the supervisory authorities concerned and taking into account the nature, the dimension and complexity of the risks inherent to the activity of all entities that are part of the group.

(f) the address of the process of validating internal models used at the level of group, pursuant to article 147, and the process to authorize the application of the system of centralized risk management groups.

(g) other functions, measures and decisions assigned to the Group supervisor by this law and other rules that may apply.

2 shall apply to the supervision of groups, the provisions of chapters I, IV and V of title IV, in relation to the supervision of insurance and reinsurance entities.

3 in order to facilitate the exercise of the tasks of group supervision, will establish a College of supervisors. Regulations will be developed the aspects relating to members and to the functioning of the colleges of supervisors, as well as the content of the coordination agreements between the General Directorate of insurance and pension funds and other supervisory authorities.

Article 136. Access to information and verification.

1 physical and legal persons falling within the scope of group supervision, and its participants, and related entities must be exchanged all the information that is relevant for the purposes of group supervision.

2. the Directorate of insurance and pension funds, where the Group supervisor, shall have access to all information that is relevant for the purposes of the exercise of monitoring group, and this irrespective of the nature of the affected entity, in the terms established for the supervision of individual in the articles 113 and 114 entities.

The General Directorate of insurance and pension funds may only contact directly for information to entities other than the insurance company or reinsurer subject to group supervision, if such information has been requested to this and has not provided within the required time.

3. when the economic relations, financial or management of an insurance company or reinsurer with other entities fit to presume the existence of a group of insurance companies subject to supervision according to this law, while authorities have proceeded to calculate the solvency capital requirements of the group, the General Directorate of insurance and pension funds You can request information to these entities, or inspection for the purposes of determining the origin of this calculation.

4. the General Directorate of insurance and pension funds can verify the information required, in accordance with paragraph 2 of this article, in the premises of the insurance company or reinsurer subject to group supervision, as well as on the premises of its related entities, in its parent company, the others linked with the parent company and the entities that be presumed they form group.

5. regulations will be regulated the procedure for verification of information by the General Directorate of insurance and pension funds of entities that are domiciled in other Member States and are part of a group, as well as the procedure for verification of information from entities that are part of a group and are domiciled in Spain by the other Member State supervisory authority.

Section 2 cooperation with other authorities of supervision article 137. Call for proposals and consultation between supervisory authorities.

1 the General direction of insurance and pension funds, whether or not group supervisor, shall convene all supervisory authorities involved in supervision of group a minimum when you have evidence of the occurrence of any of the following circumstances: to) a substantial breach in respect of the solvency capital requirements or the minimum capital requirements of an insurance company or individual reinsurance company.

(b) a substantial breach with respect to the solvency capital requirements at the level of Group calculated on the consolidated database, or the solvency capital requirements added of the group, which is the method of calculation used.

(c) other exceptional circumstances.


2 without prejudice to the provisions of article 135, whenever a decision magazine importance for work supervisor of other supervisory authorities, the General Directorate of insurance and pension funds will consult with other authorities supervising the College of supervisors who may be affected, prior to the adoption of a decision, in connection with: a) the modification of the shareholder structure organizational or directive of the insurance companies and reinsurance companies of a group subject to prior authorization from the supervisor.

(b) the decision on the extension of the period of recovery pursuant to article 156.

(c) major sanctions or the extraordinary measures such as the requirement of additional capital to the solvency capital requirements, the imposition of limits on the use of an internal model for the calculation of the solvency capital requirements, or other extraordinary measures.

(In relation to provisions of the letters b) and (c)), will always be consulted group supervisor.

In addition, whenever a decision is based on information received from other supervisory authorities, the General Directorate of insurance and pension funds will consult with affected supervisory authorities before adopting the decision.

3. the General Directorate of insurance and pension funds may not be that consultation in urgent cases or if it considers that such consultation could jeopardize the effectiveness of the decision. In this so-called, the direction General of insurance and funds of inns will inform to them others authorities of supervision affected.

Article 138. Information requested to other supervisory authorities.

1 the General Directorate of insurance and pension funds, wherever the Group supervisor, may ask the authorities supervising of the Member State in which the parent company has its head office which apply to that entity all information that is relevant for the exercise of their rights and duties for the coordination of group supervision, and provided such information.

2. when the address General of insurance and funds of Inns, as supervisor of group, need any information that has been provided already to other authorities supervisory, prompted initially of these it cited information.

Article 139. Cooperation with supervisory authorities of investment firms and credit institutions.

If a credit institution and an insurance or reinsurance entity, a company investment, or both, are directly or indirectly related or have a common participating entity, the General Directorate of insurance and pension funds will cooperate closely with the supervision of the latter authorities, providing and requiring them, without prejudice to their respective responsibilities , all information that can simplify your work.

Section 3 levels of supervision article 140. Parent entity in the European Union.

1. when an insurance company or participating reinsurance company or an insurance holding company or a mixed financial company's portfolio, having registered office in Spain, is subsidiary itself of other insurance or reinsurance entity or another holding company of insurance or other financial mixed holding company parent having its registered office in another Member State group supervision will be held exclusively at the level of the insurance entity or parent reinsurance company or the insurance holding company or mixed financial company's latest portfolio with registered office in that other Member State.

2. the monitoring group on an insurance entity or parent reinsurance company or an insurance holding company or mixed financial holding company that have their registered office in Spain and it is last matrix at the level of the European Union shall cover all of the entities that form part of the group.

Article 141. Subgroup national of entities insurance or reinsurance.

1. when an insurance company or an insurance holding company or participating reinsurer, a financial joint holding company having its registered office in Spain part in turn of a group whose last matrix has its head office in another Member State, the General Directorate of insurance and pension funds may agree that the insurance company or parent reinsurer or insurance holding company be subject to group supervision or financial mixed holding company last with registered office in Spain, that will be considered for this purpose as a matrix of a national sub-group on insurance or reinsurance entities.

The supervision of the national subgroup will require a motivated resolution of the General Directorate of insurance and pension funds, after consulting the Group supervisor and the last parent entity at European Union level.

The General Directorate of insurance and pension funds will justify the decision both to the Group supervisor and to the insurance company or parent reinsurer or insurance holding company or mixed financial company's latest portfolio at the European Union level. The Group supervisor shall inform the College of supervisors.

It may not remember or keep the supervision of the national subgroup when the last parent company at the level of the European Union has been authorized by the Group supervisor to submit to its subsidiary with registered office in Spain under full supervision of the solvency of groups with centralised management of risks.

2 the supervision of the national subgroup shall comply with provisions for supervision of group, with the following special features: to) the supervision of the national subgroup can be extended to all areas subject to the supervision of group or just one or two of them, either the supervision of solvency, intra-group transactions and risk concentration , or the management of risk and internal control.

(b) the supervision of the solvency of national sub-group shall be adjusted, in turn, to the following criteria: 1 the method to monitor the solvency of the Sub-group will be chosen by the Group supervisor to analyse the solvency of the last parent company at the level of the European Union.

2nd if the last parent company at the level of the European Union has obtained permission of the Group supervisor to calculate the solvency capital requirements of the Group and the insurance companies and reinsurers that are part thereof pursuant to an internal model, such a method is used for the calculation of the solvency capital requirements of national subgroup and insurance and reinsurance entities that form it.

3rd if the risk profile of the last parent entity at the national level deviates significantly from the internal model approved at the European Union level, and the entity considered does not adequately respond to the requirements that effect takes place it, the General Directorate of insurance and pension funds may be required, by a reasoned decision, an additional capital to the solvency capital requirements of national subgroup arising from the application of the referred model , or, in exceptional circumstances in which it is inappropriate such requirement may require the Organization to calculate the solvency capital requirements of the national subgroup under the standard formula. The General Directorate of insurance and pension funds will notice the previous resolution both the entity and the Group supervisor. The Group supervisor shall inform the College of supervisors.

4th the last parent entity at the national level may not request authorization to submit to any of its affiliates under full supervision of the solvency of groups with centralised management of risks.

Article 142. Entities subgroup comprising several Member States national subgroups.

1 when the General Directorate of insurance and pension funds agreed, pursuant to article 141, subject to the supervision of group a national sub-group, may conclude an agreement with the supervisory authorities of the States members that other entities linked to the same last matrix at Community level are present, and are matrix last a national subgroup in those States monitoring is carried out at the level of one major subgroup covering several national sub-groups. In such a case the supervision of group-level subgroup only exercise employer designated in the agreement.

The national supervisory authorities involved in the agreement, justified the decision to group supervisor as to the insurance company or parent reinsurer or insurance holding company or mixed financial company's latest portfolio at the European Union level. The Group supervisor shall inform the College of supervisors.

The supervision of the subgroup covering several Member States may not include entities that are matrix last a national subgroup in other Member States other than the of the supervisory authorities with which the agreement has been reached.

2. in the exercise of supervision of the subgroup covering several States members shall apply the rules laid down for the monitoring of a national sub-group.

Chapter III financial position of Group section 1 of article 143 group solvency. Supervision of the solvency of the group.


1. them entities insurance or reinsurance participating must ensure that the Group has in all time of them funds own admissible in amount, as minimum, equal to the capital of solvency required of Group calculated with arrangement to it planned in this law and them others standards that are of application.

When the parent company of the group is an insurance holding company or mixed financial holding company, the insurance companies and reinsurance companies that are part of the group must ensure the fulfilment of the obligation provided for in the preceding paragraph.

2. the entities required in accordance with paragraph 1, shall ensure that the Group has at all times of eligible basic own funds to cover the minimum capital required of the group, determined pursuant to rules that may apply, when it is payable.

Article 144. Report on the financial situation and solvency at group level.

1. the insurance entities and participating reinsurers, insurance holding companies or mixed financial holding companies, shall publish annually a report on the financial situation and solvency at group level. For these purpose shall be as provided in articles 80 to 82 for the report on the financial situation and solvency of individual institutions.

2 entities required pursuant to paragraph 1 may, upon conformity of the General Directorate of insurance and pension funds, wherever the Group supervisor, elaborate a report only on the financial situation and solvency, comprising level group which should be public information and information about any of the subsidiary members of the group which must be identifiable individually and that it should be made public according to the provisions in articles 80 to 82 article 145. Calculation of the solvency at the level of Group of participating entities.

The calculation of the solvency at the level of Group of insurance companies or participating reinsurance shall be effected in accordance with the accounting consolidation-based method.

However, the General Directorate of insurance and pension funds, where the Group supervisor, may agree, consultation to the other supervisory authorities concerned and the group, the application of the deduction and aggregation method, or a combination of both methods when the exclusive application of the accounting consolidation-based method is not appropriate.

Article 146. Calculation of the solvency of the Group consolidated: method based on the consolidation accounting.

1. the calculation of the solvency of group will be carried out starting from them accounts consolidated.

2. the solvency capital requirements of consolidated Group should be calculated well the standard formula or an internal model, adopted in a manner consistent with the principles and requirements at the individual level. The term maximum to resolve the procedure and notify the resolution is of six months. After this term without having is notified resolution express, is means rejected the request.

3. regulations will develop system of calculation of this method.

Article 147. Consolidated Group and insurance and reinsurance entities of the Group internal model.

1. the insurance companies and reinsurers participating and their related entities, either jointly entities related to a holding company of insurance or a mixed portfolio financial company, may be submitted to the General Directorate of insurance and pension funds, wherever the Group supervisor, application for authorization to use an internal model in the calculation of the solvency capital requirements of consolidated Group and the solvency capital requirements of insurance companies and reinsurance group.

2 when the insurance or reinsurance companies of the group are situated in a Member State other than Spain, the approval of the internal model of consolidated Group and the insurance companies and reinsurance companies of the group will take place in a manner consistent with the principles and requirements at the individual level. The deadline to resolve the procedure and notify the resolution is six months. After this deadline without having notified express resolution, the application shall be rejected.

3. by regulation the procedure of authorization of a consolidated Group and insurance and reinsurance entities of the Group internal model will be developed when an entity group is located in a Member State other than Spain. In any case, the deadline to resolve the procedure and notify the resolution is six months. After this deadline without having notified express resolution, the application shall be rejected.

4. the measures to take when the risk profile of an insurance or reinsurance entity is significantly apart from the assumptions that underpin the internal model which has been authorized at the level of group, will be collected according to the rules.

Article 148. Required solvency capital requirement further consolidated.

In the event that the risk profile of the group is not adequately reflected, an additional capital on the solvency capital requirements of consolidated Group may be required.

Article 149. Deduction and aggregation method.

1. in accordance with article 145, the General Directorate of insurance and pension funds, where the Group supervisor, may authorize the use of the method of deduction aggregation in cases in which is established in the regulations of the European Union of direct application.

2. regulations will be developed this method calculation system.

Article 150. Groups with centralized risk management regime.

Parent entities may submit an application for authorisation for subsidiaries are eligible groups with centralized risk management regime.

Regulations requirements are determined to take advantage of this regime, as well as the authorisation of the same procedure.

Section 2 Article 151 intra-group transactions and risk concentration. Supervision of intra-group transactions and risk concentration.

Institutions, insurance and reinsurance companies, insurance holding companies and mixed financial holding companies are required to notify the General Directorate of insurance and pension funds, when it is the supervisor's group, with the frequency established by regulation and, at a minimum, once a year, all possible significant risk concentration at group level as well as all significant operations carrying out within the Group including those made with an individual linked to any entity of the group by means of links.

Section 3 risk management and internal control article 152. Supervision of the system of Government of the group.

1. the management of risk and internal control systems and procedures of information implemented consistently in all entities that are part of a group, so that those systems and reporting procedures can be monitored at group level.

The provisions of this law in relation to the system of government entities insurance and reinsurance companies individually considered shall apply at group level.

2. the insurance company participating reinsurance company or the insurance holding company or mixed financial holding company carried out group-wide internal risk assessment and solvency refers to which article 66. This internal assessment of risks and solvency of the Group shall be subject to review by the General Directorate of insurance and pension funds where the Group supervisor.

3. the insurance company or participating reinsurance company or the insurance holding company implemented procedures designed to detect deterioration of the financial situation of the Group and shall notify within a maximum period of ten days to the General Directorate of insurance and pension funds, where the Group supervisor, the deterioration which would have taken place.

Section 4 non-compliance with the solvency of the group article 153. Measures to deal with non-compliance.

1. If the insurance companies or reinsurance of a group do not meet the requirements about the solvency of the group, the intra-group transactions and risk concentration, and the risk management and internal control, provided for in chapter III of this title or, despite meet these demands, is its solvency at risk, or the intra-group transactions and risk concentrations are endangering the financial situation of the insurance or re-insurance agency the General Directorate of insurance and pension funds, where the Group supervisor, will require such entities to adopt necessary measures to resolve the situation. When the insurance or re-insurance company having its registered office in another Member State, the General Directorate of insurance and pension funds shall inform the supervisory authority of the Member State of domicile of the entity of this decision so that it can take appropriate measures.


Also, the address General of insurance and funds of Inns, as supervisor of group, may require, in its case, the adoption of measures corrective to a society of portfolio of safe or society financial mixed of portfolio matrix. When the society of portfolio of safe or society financial mixed of portfolio matrix have its domicile social in another State Member, it address General of safe and funds of inns will inform to the authority supervisor of the State of the domicile of the society of portfolio of safe to can adopt them measures necessary.

2. the societies of portfolio of safe or society financial mixed of portfolio that infringe them provisions legal, regulatory or administrative adopted in application of the present title, and them people that direct those societies of way effective will be subject to the regime of offences and sanctions established in the title VIII of this law.

The General Directorate of insurance and pension funds will cooperate with the other supervisory authorities concerned in order to ensure the sanctions that may be imposed is making effective, especially when the central administration or main establishment of a society of insurance portfolio does not match its registered office.

Chapter IV groups with parent entities outside the European union article 154. Verification of equivalence.

1. in the event that the parent company of a group is an insurance company, reinsurance company or an insurance holding company or a financial joint holding company, having its registered office in a third country, the supervisory authorities concerned they shall verify the equivalence of the prudential regime for the supervision of groups of this third country in this title (, in accordance with the following rules: to) this equivalence shall be determined by the Commission in accordance with the criteria that is specified, with the assistance of the European insurance and pensions for retirement authority.

The list of equivalent prudential regimes will be published by the European authority of insurance and pensions for retirement on its web site and will be kept updated. The decisions of the Commission shall be periodically reviewed in order to keep updated to cater for any substantial modification of the system of supervision of the EU and the third country supervisory regime.

((b) when not met all the criteria set out in the letter to), the equivalence can be determined on a temporary basis by the European Commission, with the assistance of the European insurance and pensions for retirement authority, in accordance with the criteria established by regulation.

The list of third countries for which it has been determined a temporarily equivalent solvency regime, will be published by the European authority of insurance and pensions for retirement on its web site and will be kept up to date. Them decisions of the Commission is reviewed regularly to keep is updated with them reports of them progress made by the third country, that will be presented to the Commission annually for its evaluation with the helps of the authority European of safe and Inns of retirement.

The temporal equivalence regime shall be five years starting from 1 January 2016 or will end on the date on which, in accordance with the letter to), the prudential regime in that third country is considered equivalent, if the latter date is earlier. This period may be extended at most one more year when necessary so the European insurance and pensions authority and the Commission carry out the assessment of equivalence within the meaning to).

The temporal equivalence shall not apply in the event that there is an insurance or reinsurance entity located in a Member State whose balance sheet total is greater than the balance sheet total of the parent company located in a third country. In such a case, the role of group supervisor shall be exercised by the Group supervisor determined in accordance with the criteria laid down in article 134.2.

((c) when not taken no decision pursuant to the letters a) and b) above, shall be responsible for the General Directorate of insurance and pension funds, when according to the criteria laid down in article 134.2 is the Group supervisor, verify, ex officio or at the request of the parent company or any of the insurance or reinsurance group entities authorised in the European Union , the equivalence of the prudential regime for the supervision of groups of the third country. The European authority of insurance and retirement pensions, will attend this group supervisor.

By proceeding to the verification, the General Directorate of insurance and pension funds shall be consulted, with the assistance of the European insurance and pensions for retirement authority, other supervisory authorities concerned, before taking a decision on equivalence. This decision shall be taken in accordance with the criteria adopted by the European Commission pursuant to the letter a), as well as with the decisions previously taken bilaterally with regard to that third country, except when necessary to respond to substantial changes introduced in the Spanish supervisory regime or the regime of supervision of that third country.

In the event of disagreement between the supervisory authorities in terms of the decision on equivalence adopted, may refer the matter to the European insurance and pensions authority and request its assistance within a period of three months from the notification of the decision by the General Directorate of insurance and pension funds When acting as group supervisor.

2. in the event that monitoring group in the third country is considered equivalent, the General Directorate of insurance and pension funds will resort to equivalent supervision exercised by the third country supervisory authorities, applying the provisions in sections 1 and 2 of chapter II of this title and in articles 144, 148 and to be determined according to the rules , mutatis mutandis, to the cooperation with the authorities of supervision in the third country.

3. regulations is determined the rules applicable when the supervision of groups in third countries not is considered equivalent.

Title VI situations of financial deterioration. Chapter I financial deterioration article 155 situations special control measures. Deterioration in financial institutions insurance and reinsurance companies.

Insurance and reinsurance entities implemented procedures designed to detect the deterioration of its financial situation and shall within a maximum period of ten days to the General Directorate of insurance and pension funds of the production of such deterioration, any failure with respect to the solvency capital requirements or with respect to the minimum capital requirements, as well as as soon as observed risk of such failure may occur in the following three months.

Article 156. Non-compliance with respect to the solvency capital requirements.

1 when the insurance or reinsurance entity see a breach with respect to the solvency capital requirements or the risk that occurs within three months, it shall be obliged to submit a recovery plan, within the period of two months to the approval of the General Directorate of insurance and pension funds since it has been observed in the breach or the risk of non-compliance.

2. the General Directorate of insurance and pension funds will require the entity to take and run, within the period of six months from the breach or the risk of causing, measures necessary to restore the required level of eligible own funds corresponding to the coverage of the solvency capital and to reduce their risk profile so that it covers the solvency capital requirements were observed. The term may be extended for three months more.

3. regulations assumptions and measures shall be regulated to adopt where exceptionally adverse affect entities insurance and reinsurance that represent a significant share of the market or of the affected branches.

Article 157. Non-compliance with respect to the capital minimum mandatory.

When the insurance or reinsurance entity see a breach in the minimum capital requirements or the risk of occurring in the next three months, shall be obliged to submit to the approval of the General Directorate of insurance and pension funds, within the next month, a financing plan in the short term to restore over a period of three months to count from the observed non-compliance or the risk of occurring, the eligible basic own funds, at least up to the level of the minimum capital requirements, or reduce the risk profile so that minimum capital requirements are satisfied.

Article 158. Content of the plan.

The content of the plan of recovery and the short-term funding measures provided for in this chapter shall be regulated by law.

Chapter II article 159 special control measures. Situations that may give rise to the adoption of special control measures.

1 the General direction of insurance and pension funds may take special control measures when the insurance or reinsurance entities are staying in any of the following situations: to) failure of the eligible own funds to cover the minimum capital requirements.


(b) failure of the funds own admissible to cover the capital of solvency required.

(c) Deficit higher to the 20 by 100 in the calculation of the capital of solvency required.

(d) failure to comply with the rules concerning the valuation of assets and liabilities, including the technical provisions in a way that there is a deviation exceeding 20 per 100 in the calculation of the eligible own funds to cover the solvency capital requirements. As well as, a breach with respect to technical provisions, when does not reach the required level required once the entity to its increase in the terms of article 70.2.

(e) liquidity or financial difficulties that have determined delay or default on their payments.

(f) deficiencies in the system of Government or in the internal control system, preventing activity management and, in particular, the fulfilment of obligations in the field of risk management, compliance, actuarial and internal audit outsourcing of functions or activities relevant.

(g) manifest difficulty make social order, or paralysis of the social organs so that it hinders its functioning.

(h) situations in fact deducted checks carried out by the General Directorate of insurance and pension funds, that jeopardize the solvency of the institution, the interests of policyholders or the fulfilment of their obligations, as well as the lack of suitability of the accounting plan of accounting of insurance companies, or the irregularity of accounting or administration in terms such that impede or hinder significantly know the true situation of the assets of the entity.

2. the special control measures may be taken on key groups of insurance companies and reinsurance entities, and the very institutions insurance and reinsurance companies that are part of the group when he is in one of the situations described in paragraph 1.

Article 160. Measures of special control that can be taken.

1 regardless of the administrative penalties that may be imposed, the General Directorate of insurance and pension funds may take the following special control measures: to) ask the insurance company a short-term financing plan.

(b) require the insurance organization a recovery plan to restore its financial situation.

(c) prohibit the disposal of goods to be determined by the entity and its subsidiaries, unless they are financial institutions subject to supervision. This measure will be supplemented by the following: 1st deposit of values and other movable or the administration of property by a person accepted by the General Directorate of insurance and pension funds.

2nd notification of the measure to cash or securities depository credit institutions.

3rd the preventive annotation of the prohibition in the relevant public records, for what will be sufficient title the resolution of the General Directorate of insurance and pension funds in which remember is the aforementioned prohibition have. During the term of the preventive annotation may not register for warranty actual rights public records or recorded court injunctions or administrative rulings of embargo, or of credit institutions may charge or make effective any payment by court injunctions, enforcement, or otherwise, without the prior written authorization of the General Directorate of insurance and pension funds.

(d) prohibit the entity and its subsidiaries, unless the latter are financial institutions subject to supervision that, without previous authorization of the General Directorate of insurance and pension funds can perform acts of management and disposition to be determined, assume new debts, distribute dividends, active levies and returns, recruit new insurance or admitting new partners.

2. the General Directorate of insurance and pension funds held on account and charged to the entity communications which, as a result of the special control measures adopted, be made public records.

Article 161. Additional special control measures.

(If the deficit of own funds eligible to cover the solvency capital requirements higher than 20 per cent, when failure affects the minimum capital requirements and elsewhere in situations described in article 159.1, c's) to h), and to safeguard the interests of insured persons, the General Directorate of insurance and pension funds may take (, jointly or separately, any of the following measures: to) the prohibition of disposition of assets.

((b) the prohibition of the acts listed in article 160.1. d).

(c) suspend the new insurance contracts or the acceptance of reinsurance.

(d) prohibit the extension of insurance contracts concluded by the insurance company in all or some of the classes. For this purpose, the insurance company shall communicate in writing to policyholders ban on the extension of the contract within the period of fifteen calendar days receiving notification of this measure of special control; in this case, the time limit referred to in the second paragraph of article 22 of law 50/1980, of 8 October, insurance contract, shall be reduced to fifteen days. Regardless of the communication in writing to policyholders, the resolution by which such measures are taken will be published in the «Official Gazette» and the «official journal of the European Union'.

(e) prohibit the exercise of the activity of insurance or reinsurance abroad.

(f) require the Organization of insurance or reinsurance company that proposes measures organizational, financial or other nature that may be appropriate, formulate a results forecast and set deadlines for their execution, in order to overcome the situation that gave rise to this requirement. These measures shall be submitted to the approval of the General Directorate of insurance and pension funds.

(g) order the CEO or similar charge of administration which makes known to the other administrative bodies the administrative resolution adopted and, in his case, the record of the inspection of insurance, as well as the organs of administration of the subsidiaries.

(h) convene the governing bodies or the Board or general Assembly of the insurance or reinsurance entity as well as designate the person who should chair the meeting and give an account of the situation.

(i) replace temporarily the organs of administration of the entity.

(j) conducting reviews of specific issues by the auditor of the accounts of the entity or by another auditor of accounts, provided that they do not pose a violation of the regime of independence they are that individuals, in accordance with the rules governing the activity of audit of accounts.

Article 162. Collaboration of the Consorcio de Compensación de Seguros in the implementation of special control measures.

The General Directorate of insurance and pension funds be sought the collaboration of the Consorcio de Compensación de Seguros to make, in relation to the special control measures adopted, carry out the functions determined by law.

Article 163. Intervention of the insurance company.

1. as a further special control measure provided for in articles 160 and 161, the General Directorate of insurance and pension funds may agree intervention of the insurance company or reinsurance company to ensure its correct implementation.

2 acts and agreements of any body of the insurance or reinsurance entity that are taken from the date of notification of the decision which agreed the administrative intervention and affecting or in connection with the special control measures mentioned above would not be valid or may be carried out without the express approval of the appointed auditors. He is excepted from this approval the exercise of actions or resources by the Organization intervened against administrative acts of supervision or in connection with the performance of the external auditors.

3. the designated Auditors shall be entitled to revoke many powers or delegations had been conferred by the Board of Directors of the insurance company or reinsurer, or by their representatives, prior to the date of publication of the agreement. Adopted such measure, them Auditors will proceed to demand the return of them documents where record them powers of Attorney, as well as to promote the registration of its revocation in them records public corresponding.

4. the General Directorate of insurance and pension funds be sought the support of the Consorcio de Compensación de Seguros for carrying out the functions that the external auditors are assigned.

Article 164. Procedure for adoption of special control measures.

Special control measures will take place through an administrative procedure processed according to the rules of the procedure of supervision by inspection, with peculiarities that are established by law.

Article 165. Interim replacement of the administrative bodies.

Interim replacing of the organs of administration of the insurance or reinsurance entity shall conform to the following rules:


1. the resolution administrative, of character immediately Executive, shall appoint to the person or to them people that have of Act as administrators provisional e will indicate if should do it jointly or severally.

The appointment will be published in the «Official Gazette» and will be included in relevant public records, including, where appropriate, existing in the other Member States, publication that will determine its effectiveness against third parties. Identical requirements and effects replacement of provisional administrators will be attached when necessary to proceed to it.

2. Provisional administrators shall meet the requirements of article 38.

3. Provisional administrators, shall also be, the nature of external auditors, the powers set out in article 163, the acts and agreements of the Board or the general Assembly of the insurance or reinsurance entity.

4. the obligation to formulate the annual accounts of insurance or reinsurance entity and these and the social management approval may be suspended, by not later than one year counting from the expiration of the legally established deadline to the effect, if the General Directorate of insurance and pension funds deemed, at the request of provisional administrators There are no data or documents complete and reliable for this purpose. In this case it may be, also, pending the holding of meetings or ordinary assemblies of shareholders or members for the approval of the same.

5 agreed by the General Directorate of insurance and pension funds interim replacement of organs as management of the entity, the provisional administrators shall immediately convene the Board or general Assembly of the insurance or reinsurance, entity which will be appointed the new Board of Directors. Until the takeover of this, provisional administrators will continue to exert their functions.

6. them administrators provisional may develop its action in the territory of all them States members and may exercise in them the same functions and powers that in Spain. For these purposes, will be sufficient title to prove the status of administrator a certification of the resolution that your appointment is agreed. You can only grant powers of representation or assistance, when it is necessary to carry out the execution of the measures in the territory of other Member States and, in particular, to resolve the difficulties that could find creditors resident in them.

The people who attend them or represent must have a recognized honorability and meet the necessary conditions of qualifications or professional experience to carry out their functions, in accordance with article 38.

Article 166. Effects of the measures of control in other Member States.

1 adopted by the General Directorate of insurance and pension funds about an insurance company any of the measures referred to in the articles 160.1. to), b), c) and (d)), 161.d), e), f) e i) and 163, that shall take effect, in accordance with the provisions of its legislation in all Member States. For these purposes, and without prejudice to the provisions of the following paragraph, the General Directorate of insurance and pension funds inform the authorities supervising of the other States members of the agreement whereby the adopted measure and its effects on within ten days from its adoption.

2. in addition, if it adopts the control measure special prohibition of having goods on a Spanish insurance company operating in other Member States on rule of law of establishment or of free provision of services, the General Directorate of insurance and pension funds, ask, where appropriate, the supervisory authorities relevant to taken on property situated in its territory the same measures as the General Directorate of insurance and funds pension it had adopted.

Such measures shall be governed by the provisions of this law and its implementing rules.

Article 167. Measures taken with respect to insurance companies domiciled in other Member States.

1. when on an entity insurance domiciled in another State Member is had adopted by the authority supervisor of said State Member the measure of control special of ban of have and requested of it address General of safe and funds of Inns that impose identical measure on them goods of the entity located in territory Spanish, with indication of those that should be object of she , it quoted address General shall impose such measure.

2. when regarding an insurance company domiciled in another Member State, including its branches in Spain or in other Member States, has been adopted a measure of sanitation or liquidation procedure, such a measure or procedure will take effect in Spain as soon as you do so in the Member State which has adopted the measure or the proceedings brought.

3. a time is notified to the address General of safe and funds of inns the adoption of the measure or the initiation of the procedure, this published in the «newsletter official of the State» an extract of the agreement or resolution of which bring cause the measure or procedure; in all case, in said extract will consist the authority competent of the State Member that has adopted the measure or procedure, the legislation that is of application, as well as, in his case, the identification of the liquidator or liquidators designated.

4. the liquidators and provisional administrators appointed by the competent authority of another Member State may carry out its role in Spain; for this purpose, will be sufficient title to prove their condition a certification of resolution or certified copy of the agreement which made his appointment or designation, translated into Spanish.

5 the measures adopted by other States and adoption procedures shall be governed by the legislation of the Member State of the adoption of the measure without prejudice to that for assumptions that are mentioned below must observe the following rules and leaving safe which can be anticipated in the international treaties: to) the effects of such measures and procedures in contracts of employment subject to the Spanish law shall be governed by this.

(b) the rights of the insurance company on a building, vessel or aircraft which are subject to registration in a public register Spanish shall be governed by Spanish law.

(c) Notwithstanding the provisions of paragraph 1, the adoption of reorganisation measures or the opening of the winding-up proceedings shall not affect the rights in rem of creditors or third parties with respect to material or intangible, movable or immovable, active active specific both sets of indeterminate asset, whose composition is subject to modification, belonging to the insurance company that is found located in Spain at the time of the adoption of such measures or proceedings of said procedure, or to the exclusive right to charge a credit, in particular, the right guaranteed by a garment which is subjected to the credit or transfer of such credit as security, when such guarantees are governed by Spanish law.

(d) the adoption of reorganisation measures or the initiation of a procedure of liquidation on a buyer of a good insurance company will not affect the rights of the seller based on a reservation of title when told well, at the time of the adoption of the measure or the initiation of proceedings, in Spanish territory.

The adoption of measures of sanitation or the initiation of a procedure of liquidation of an insurance company selling a good, once it has been delivered, shall not constitute cause for resolution or termination of the sale and shall not prevent the purchaser the acquisition of ownership of the sold good when it is, at the time of the adoption of the measures or the initiation of proceedings , in territory Spanish.

(e) the adoption of measures of sanitation or the initiation of a procedure of liquidation shall not affect the right of a creditor to claim compensation for your credit with credit insurance company when the compensation is permitted by the law governing the liquidation.

(f) the effects of a measure of sanitation or a winding-up proceedings on the rights and obligations of the participants in a Spanish regulated market shall exclusively be governed by Spanish law.

(g) the voidness, voidability or unenforceability of legal acts detrimental to all the creditors shall be governed by the legislation of the home Member State, unless the person who benefited from the act detrimental to all the creditors prove that the said Act is subject to Spanish law and that this legislation does not in any way allow their challenge.


(h) the validity of the transmission for valuable consideration by an insurance institution carried out subsequent to the adoption of a measure of sanitation or initiation of a procedure of liquidation, a property located in Spain, vessel or aircraft subject to registration in a public register Spanish or securities or other securities whose existence and transfer involves an inscription in a register or in an account provided for in Spanish legislation or are placed in a system of central tank regulated by Spanish law, will be governed by Spanish law.

(i) the effects of a measure of sanitation or a winding-up proceedings on a pending case in Spain concerning an asset or a right of which has stripped the insurance shall exclusively be governed by Spanish law.

Article 168. Procedures bankruptcy.

1. the entities insurance subject to a procedure of measures of control special not may request judicially the statement of contest or welcome is to them measures planned in the article 5 bis of the law 22 / 2003, of 9 of July, bankruptcy.

2. the judge, in the event of application of competition, before remember his statement ask the General Directorate of insurance and pension funds or, where appropriate, the supervisor of the competent autonomous community agency, review of the status of the entity and the measures taken. In the event that it address General of safe and funds of Inns, or the organism supervisor of the community autonomous competent, report that the entity is subject to any measure of control special, must inadmitir the request of contest or of the mediator bankruptcy.

3. the judge, declare bankrupt an insurance company, shall proceed immediately to the notification of the decision to the General Directorate of insurance and pension funds or, in your case, the supervisor of the competent autonomous community agency. For entities authorized to operate throughout the national territory, the General Directorate of insurance and pension funds inform, within ten days, authorities supervising of the remaining States members about the existence of the procedure and its effects. In addition, the General Directorate of insurance and pension funds will proceed to publication in the «official journal of the European Union' of a summary of the above-mentioned resolution in showing, in any case, the competent court and the application of Spanish legislation procedure.

4. the Declaration in an insurance company competition does not prevent the adoption of special control measures, or modification, maintaining the General Directorate of insurance and pension funds or, where appropriate, the supervisor of the competent autonomous organism, all the faculties of revocation and dissolution provided for in the articles 169 to 174. The agreement of dissolution of an entity in competition is the opening of the stage of liquidation, which shall be governed by the bankruptcy law.

The adoption of any of the above measures shall be notified to judge the contest, immediately, by the General Directorate of insurance and pension fund or, where appropriate, by the supervisor of the competent autonomous community body.

Received the proposal for agreement, and prior to transfer the bankruptcy administration, the judge asked report to the General Directorate of insurance and pension funds or, in your case, the supervisor of the competent autonomous community body, in order to rule on the viability of the insurance business continuity and compliance with all legally required solvency and the insurance activity guarantees.

Received the report or after the given period unless it was issued, the judge shall inform of the bankruptcy administration together with the proposal for a Convention for the purposes of the provisions of articles 107 and 115 of the law 22/2003, of July 9, bankruptcy.

The disposal of assets subject to the measure of prohibition of disposal, either that is the phase of bankruptcy proceedings that take place, will require the express authorization of the General Directorate of insurance and pension funds or, where appropriate, of the competent autonomous community supervisory agency.

5. trying to is of creditors known that have their domicile in another State Member, must be informed on the form in that have of request the recognition of its credits and may present them written of claim of credits or of observations to these in the form that is determine regulations.

6. the General Directorate of insurance and pension funds or, in your case, the supervisor of the competent autonomous community agency, will be part in all bankruptcy proceedings involving insurance companies.

Title VII revocation, dissolution and liquidation chapter I revocation of the administrative authorization article 169. Causes of revocation and its effects.

1 revocation of the administrative authorization granted to the insurance companies and reinsurance companies, without prejudice to the provisions of article 19(1) corresponds to the Minister of economy and competitiveness.

2. the reversal of the administrative authorisation of an insurance company may be partial, when it affects one or more classes, or total, when extended to all branches in which the institution was authorized.

Equally, the reversal of the administrative authorisation of a reinsurance entity may be partial, where it affects the activity of reinsurance of life or non-life insurance, or total reinsurance activity, when it extends to both activities.

3 required the revocation of the authorization of a branch or branches or an activity in the following cases: a) if the entity expressly to it.

(b) where has the entity not started its activity within the period of one year or cessation of exercise it for a period exceeding six months. To this inactivity is will match the lack of effective activity by the entity insurance in the bouquet or ramos, in them terms that is determined according to the rules. For reinsurance entities, downtime due to lack of initiation or cessation of exercise, lack of effective activity in the reinsurance of life or non-life reinsurance is equipped.

(c) when there is the total transfer of the portfolio of the insurance company in one or more branches or total transfer of the portfolio of the State re-insurance in one of the activities.

4 comes the total revocation of the administrative authorisation in the following cases: a) referred to in paragraph 3, when they affect all industries in which the insurance company is authorized or the totality of the activity of the reinsurance entity.

(b) when the entity ceases to meet any of the requirements established by this Act for the granting of administrative authorization or when it has obtained the authorisation through false or inaccurate statements.

c) where the institution does not comply with the compulsory minimum capital requirements and the financing plan submitted is manifestly inadequate, or when does not apply or is not able to comply the plan approved in the three months following the moment in which you observe failure with respect to the minimum capital requirements.

(d) when the dissolution is agreed.

(e) when it has imposed on the entity the administrative penalty of revocation of the authorization.

(f) when certifying a significant stake-holders to exert an influence that goes to the detriment of the sound and prudent management of the insurance company or reinsurer, severely damaging its financial situation or those no longer suitable in a sudden way.

5. the Government fully revoked the authorization granted to Spanish insurance and reinsurance entities with foreign shareholding in application of the principle of reciprocity or so when advisable due to extraordinary circumstances of national interest. In no case will be applicable this cause of revocation to the entities insurance and reinsurance Spanish in that the participation foreign majority proceed of countries of the Union European.

(((6. when concur any of them causes of reversal planned in the paragraph 3.b) or in the paragraph 4, lyrics b) and c), the Minister of economy and competitiveness, before agree the revocation of the authorization administrative, may grant a term, that not exceed of six months, so the entity that it has requested appropriate to remedy it.

7. the resolution of revocation of the authorization administrative must notify is in the term maximum of six months, leaving in suspense said term during the time that, in your case, is grant to the entity for overcome it cause of revocation.

8. it revocation of it authorization administrative will determine, in all them cases, it ban immediate of subscribe new contracts of safe or of reinsurance by the entity, as well as the liquidation of them operations of safe of them ramos affected by the revocation, with submission to it willing in it section 2nd of the chapter II of this title.

In case of revocation total of the authorization, proceed the dissolution administrative of the entity insurance or reinsurance, without need of hold is to it willing in them Articles 173 and 174.1, except in them cases to is concerns the article 172.1 and 2.


9. in case of revocation of the authorization of an insurance or reinsurance entity authorized to act on the whole country, the General Directorate of insurance and pension funds inform the supervisory authorities of the other Member States so that they take appropriate measures to prevent that insurance or reinsurance entity initiating further transactions within its territory.

Also in collaboration with the above authorities, the General Directorate of insurance and pension funds will take the measures that are necessary to safeguard the interests of insured persons and, in particular, may prohibit the free disposal of the assets of the insurance company.

10. any revocation of authorization of an insurance or reinsurance entity authorized to act on all the national territory shall be notified to the European authority of insurance and retirement pension, so the authority keep updated the public list of insurance companies authorized to the referred Article 20.6.

In addition, resolution that adopted the revocation will be published in the «Official Gazette» and the «official journal of the European Union'.

Article 170. Revocation of the administrative authorization to insurance companies domiciled in other Member States.

When the supervisory authority of an insurance company domiciled in another Member State, that operate in Spain in regime of the right of establishment or free provision of services regime, revoke you administrative authorization, the General Directorate of insurance and pension funds prohibit such insurance company new insurance under both regimes.

In this case, and in order to safeguard the interests of insured persons, the General Directorate of insurance and pension funds may take, in collaboration with the concerned authority, regulated in the articles 160 and 161 special control measures.

Article 171. Revocation of the administrative authorization of branches of entities domiciled in third countries.

1 will be cause for revocation of administrative authorisation granted to the branch of an insurance company domiciled in a non-member country of the European Union, in addition to those listed in article 169, paragraphs 3 and 4, which concur in Branch said any of the circumstances which, in a Spanish insurance company, they are the cause of dissolution. In addition, the Government may revoke authorization to these branches, when thus warrant extraordinary circumstances of national interest.

In the event that an insurance company domiciled in a country member of the European Union had established branches, in Spain and other Member States the General Directorate of insurance and pension funds inform other authorities involved supervisory and will coordinate its activities with them.

2. it need of safeguard of them interests of them insured, beneficiaries, handicapped or of others entities insurance, required by this law for agree it intervention of the liquidation of an entity insurance, is presumed, in all case, in it liquidation that affect to branches of entities foreign domiciled in countries not members of the Union European whose headquarters Central had been dissolved.

Chapter II dissolution and liquidation of entities insurance and reinsurance section 1st dissolution article 172. Causes of dissolution.

Are causes of dissolution of the entities insurance and reinsurance: 1. the revocation of the authorization administrative that affect to all them ramos or activities in that operates the entity. However, the revocation not will be cause of dissolution when it own entity resign to the authorization administrative and this resigns come only motivated by the modification of its object social for develop an activity different to them listed in the article 3.1.

2. the total transfer of the portfolio of insurance contracts when it affects all industries in which the entity operates. However, these transfers of portfolio or activity shall not cause of dissolution when the public deed of assignment the assignor State modification of its corporate purpose to develop an activity other than those listed in article 3(1), or in the case of mutual insurance and mutual welfare will become a capital with activity other than the insurance company.

3 have been reduced the number of partners in mutual insurance, insurance cooperatives and mutualities of social welfare to less than the minimum according to the rules established.

4. do not make the passive levies.

5 the grounds for dissolution mentioned in article 363 of the text revised law of societies of Capital, approved by Royal Legislative Decree 1/2010 of 2 July, taking into account the following: a) case of mutual insurance and provident mutual, references that are made to the social capital in this precept shall be made to the mutual fund.

((b) defined refers to equity in article 36.1. c) of the code of Commerce.

6. for cooperatives of insurance, the causes of dissolution contained in specific legislation.

Article 173. Agreement for dissolution.

1. the dissolution, except in the course of fulfilment of the term fixed in the statutes, it will require the agreement of the Board or general Assembly. For these purposes, administrators shall convene it for its celebration in the period of two months from the occurrence of the cause of dissolution and any partner may require administrators to make call the Board or Assembly if, in his opinion, there is cause legitimate for the dissolution.

2. the dissolution agreement should include the relationship of property, which represent the assets assigned to the technical provisions in the registration of investments and rights that cover the capital requirements of the insurance company requirements.

Article 174. Administrative dissolution.

1 in the event that there is legal cause of dissolution and the Board or Assembly was not convened, or if it is, does not hold, the agreement could not be achieved or that is contrary to the dissolution, the directors shall be obliged to request the administrative dissolution of the entity within the period of ten calendar days, from the date on which should have been convened Board or Assembly in accordance with article 173 When was not convened; or, the date scheduled for the meeting, when one has not been established; or, finally, from the day of the celebration, when dissolution agreement could not be achieved, or this would have been contrary to the dissolution.

2 known by the General Directorate of insurance and pension funds the concurrence of a cause of dissolution, as well as non-compliance by the corporate bodies of the provisions of the preceding paragraph, it shall be the administrative dissolution of the entity.

Section 2 liquidation article 175. General rules of liquidation.

1. the liquidation of Spanish insurers and reinsurers entities that have adopted form of anonymous, mutual insurance company or mutual social welfare shall be governed by the provisions in this law and its implementing regulations and, as not provided for therein, by the rules applicable to capital companies.

The liquidation of insurance cooperatives is governed by the provisions of the legislation which applies in all no provisions in this law and its implementing regulations.

2. the liquidation will guarantee the mutual and cooperative the same rights that are partners of the companies of capital and, in particular, the right to information and the right to participate in the resulting settlement heritage.

3. during the liquidation period may not conclude the operations defined in article 3.1, but insurance contracts in force at the time of the dissolution will retain its effectiveness until the conclusion of the period of insurance in course and shall expire at such time without possibility of extension subject to early termination statement.

4. the liquidation of a Spanish entity shall include also that of all its branches.

Obligations arising from contracts concluded in regime of right of establishment and free provision of services regime will have the same treatment as the obligations arising from other contracts of insurance of the entity in liquidation, without distinction as to nationality of creditors by insurance contract.

When a Spanish reinsurance entity is liquidated, the obligations arising out of reinsurance contracts held in regime of right of establishment and free provision of services regime will have the same treatment as the obligations arising from other contracts of reinsurance of the entity in liquidation.

Article 176. Effects in other States members of the liquidation of entities Spanish.

1. the administrative decision or agreement which will bring cause the liquidation shall be recognized in the territory of the other Member States, in accordance with the provisions of its legislation, and shall take effect on them as soon as it is done in Spain.


To these effects, it address General of safe and funds of Inns, in the term of ten days, to count from the following to the date in that is handed down the resolution or have knowledge of the agreement, will inform to them authorities supervisory of them remaining States members on the existence of the procedure and its effects.

Also, published in the «daily official of the Union European» an extract of such resolution or agreement that, in all case, will indicate it competition of it address General of safe and funds of Inns on the procedure, that the legislation applicable to said procedure of liquidation is it contained in this law and in their standards of development, as well as the identification of the liquidator or liquidators appointed.

2. the liquidators may develop its action in the territory of all Member States and may exercise therein the same functions and powers as in Spain. To these effects, will result title enough to prove the condition of liquidator a certification of the resolution or a copy legalized of the agreement by which is perform his appointment.

Equally, may grant powers of representation or request assistance when this is necessary to carry to out the process of liquidation in the territory of others States members and, in particular, to resolve them difficulties that could find them creditors resident in them.

In all case, them people that les attend or represent have of have recognized repute and meet them conditions necessary of qualification and experience professional to exercise their functions, in the same terms that them liquidators.

Article 177. Effects in Spain of the liquidation of insurance companies domiciled in other Member States and operating in Spain under law of establishment or free provision of services.

The General Directorate of insurance and pension funds may require authorities supervisors of other States members information about the State and development of winding-up proceedings which are carried out with respect to entities subject to the supervision of the said authorities and operating in Spain on the right of establishment or free provision of services regime and will give publicity to it.

A decision on the initiation of a procedure of liquidation of an insurance company or reinsurer, including the branches who holds in other States members, adopted in accordance with the legislation of the Member State of origin, once communicated to the General Directorate of insurance and pension funds, will be recognized without further formalities and shall take effect in Spain as soon as you do so in the Member State of initiation of proceedings.

Article 178. Supervision of the liquidation.

1. the entities in liquidation are subject to supervision until the cancellation of the registration in the administrative register.

2 the liquidation will not affect the validity of the measures that in the exercise of the functions taken supervisor, and can also be taken as follows: to) the intervention of liquidation, holding this actions of the liquidators in the terms defined in this article, in article 163, and its development regulations.

(b) separation, appointment of liquidators or mandate of the liquidation to the Consorcio de Compensación de Seguros in the cases listed in article 14 of the Legal Statute of the consortium of insurance compensation, approved by Royal Legislative Decree 7/2004 of 29 October.

(c) have, of trade or to request of them liquidators, the assignment of the portfolio of contracts of safe of the entity to facilitate their liquidation.

(d) determine the date of early termination of the period of duration of the insurance contracts that integrate the portfolio of the company in liquidation, to avoid damages to the creditors by insurance contract. Such determination shall respect the economic balance of benefits in affected contracts and must take place with the necessary advertising, notice of fifteen calendar days to the date where there are lapses and, unless there are exceptional circumstances which advise not to delay the due date, at the same time to compliance by the liquidators of the duty to inform that you determined by regulation.

(e) require information to liquidators on the progress of the liquidation.

Article 179. Protection of the claims by insurance contract.

1 in the process of liquidation shall be regarded as loans by insurance contract, the following: to) those of the policyholders, insured persons and beneficiaries of an insurance contract and the third parties referred to in article 73 of the Law 50/1980, of 8 October, insurance contract. Include receivables arising from the provision of the service of repair or replacement of the damaged property or the assistance or the provision in kind that is had upon the insurance company in the insurance contract.

(b) of those who have concluded contracts affected by the provisions of article 24 for the operations carried out without administrative authorisation, either carried out in breach of the measures of special suspension control of the hiring of new insurance or the acceptance of reinsurance and prohibition on the extension of the concluded insurance contracts with the insurance entities (, referred to respectively in article 161, letters c) and (d)).

((c) claims satisfied by the Consorcio de Compensación de Seguros pursuant to the provisions of item 11.e) text revised law on civil liability and insurance in the circulation of motor vehicles, approved by Royal Legislative Decree 8/2004, of 29 October.

2 credits for insurance contract shall be regarded as loans with special privilege on the following goods and rights: to) the assets assigned to the technical provisions in the special register of assets for the purposes of settlement and those assigned to the requirements of capital requirements of the insurance company. They also have such consideration such assets of the insurance company that, in breach of the regulations, do not appear in the registry properly assigned.

(b) the goods with respect to which the control measure special prohibition of having, though such a measure has not been subject to registration has been taken.

3. for the purposes of the liquidation, the entities remain updated a special register of the assets representing the technical provisions calculated and invested in accordance with the provisions of the applicable legislation. Requirements of the special registry of assets shall be governed by regulation.

4. the payment of claims by insurance contract will be charged to the property and rights affected, being satisfied pro rata, with priority over any other credit.

Respect of claims against the insurance company which do not benefit from the priority referred to in paragraph 2, the priority system established by law 22/2003, of July 9, bankruptcy will apply.

Article 180. Status of the liquidators.

1. the good repute, qualifications and professional experience of the liquidators shall comply with the criteria laid down in article 38 to administrators.

2. the liquidators shall be subject to the same regime of administrative responsibility to managers of an insurance company.

Article 181. The process of liquidation.

1. the liquidators will subscribe, together with managers, inventory, a census of members or members that were at the time of the dissolution and the balance of the entity and shall undergo, in a period not exceeding one month since his appointment, the General Directorate of insurance and pension funds or, if the liquidation would intervened , to the financial controller.

2. them liquidators shall take them measures necessary to finalize the liquidation in the term more brief possible, and may give the portfolio of contracts of safe of the entity of form partial, total or global, prior authorization, as well as agree the rescue or resolution of them contracts of safe.

3. the disposal of real estate may take place without public auction when the liquidation is operated or when, having been assessed for these purposes by appraisal associations authorized and registered in the register of the Bank of Spain, the disposal price is not less than the appraisal. In any case, require the prior authorization of the General Directorate of insurance and pension funds.

4 when the realizable value of an asset is less than its value estimated in the special register of assets for the purpose of liquidation, the liquidators must justify this situation to the General Directorate of insurance and pension funds.

5. once paid all loans, the liquidators will proceed to the distribution of the resulting liquid having partners or, where appropriate, between members in the terms provided for in this law. In the case of an insurance cooperative, the distribution of the resulting liquid having is governed by legislation that applies.

6. Once completed the operations of liquidation and, in his case, the resulting heritage of the liquidation division, the Minister of economy and competitiveness be declared extinguished the entity in liquidation and will proceed to cancel the seats in the administrative register, this resolution published in the «Official Gazette».


The cancellation in the record administrative will determine, in them alleged of statement of extinction of the entity, it rear cancellation to its time in the record commercial and in the registration of societies cooperative, when this is it form legal.

By exception, shall cancellation of the seats in the administrative register without a declaration of termination of the entity and at such time you can start the activity pursuant to the modified company object, when the general portfolio or the revocation of the authorization assignment, provided that, in both cases, has been to modify the purpose of the dissolution of this organization and previously the General Directorate of insurance and pension funds check that is has executed the transfer of portfolio or are have settled them operations of secure, respectively.

7. during the period of settlement, the entity may offer to the Minister of economy and competitiveness the removal of the cause of dissolution and request of this the rehabilitation of the authorization administrative revoked. Such rehabilitation only can grant is when the entity meets all them requirements required during the operation normal and ensure it all of them rights of insured and creditors, even them of those whose contracts of safe had been declared expired during the period of liquidation. If rehabilitation is adopt the administrative authorization revoked, removed the cause of dissolution shall be full, will cancel the registration in the register, and rehabilitation agreement will be the same advertising imposed by this precept for the agreement of dissolution.

Article 182. Effects on actions against insurance companies in liquidation.

1 in the event of liquidation intervened or taken over by the Consorcio de Compensación de Seguros, and with regard to goods which adopted the measure of prohibition of provision of article 160.1. c), may not register for warranty actual rights public records or recorded court injunctions or administrative rulings of embargo from the date of the publication in the «Official Gazette» of the ministerial decree of dissolution without prejudice to the effectiveness of appropriations which, in their case, sought to ensure with these inscriptions or annotations.

Responsible for the records shall set forth by marginal note the fact of the dissolution and the closing of the registration sheet to the acts referred to in the preceding paragraph. Rehabilitation agreed the administrative authorization revoked, will cancel the aforementioned marginal note.

2. in them alleged of liquidation intervened by the Ministry of economy and competitiveness, them actions individual exercised by them creditors, before the start of the liquidation or during she, may continue until the pronouncement of sentence firm, but his execution will be suspended and the credit that, in its case, declare such sentence to your please is settled with them of them others creditors. However, after one year since the judgment acquires firmness, suspension will be lifted automatically without need for Declaration and resolution to the matter, that would be the State in which the settlement was found.

It willing in the paragraph previous not is applicable to them actions in the exercise of rights real on goods located out of the territory Spanish, that is governed by its legislation specific, or to the actions in the exercise of a right real of warranty that is rija by a law different to the Spanish.

Section 3 settlement by the Consorcio de Compensación de Seguros article 183. Performance of the Consorcio de Compensación de Seguros in the liquidation of insurance and reinsurance companies.

The Consorcio de Compensación de Seguros, hereinafter the Consortium, will assume liquidator of Spanish insurance and reinsurance entities, any condition that is its form or legal nature, in the cases provided for in this law and in the text of the Legal Statute of the consortium of insurance compensation, approved by Royal Legislative Decree 7/2004, of 29 October.

Article 184. General substantive rules.

1. the Consortium will replace all the social organs of the entity whose liquidation has been entrusted to him. As a result, there will be no place for the celebration of meetings or ordinary or extraordinary meetings of shareholders, mutual or cooperative of the entity.

However, administrative and contentious-administrative appeals by the insurance company or reinsurer against acts of supervision of the Ministry of economy and competitiveness prior to the assumption of the liquidation by the consortium may be continued by administrators on their own behalf, if they people to this effect before the judicial or administrative body within the period of one month from the publication in the "Official Gazette" of the encomienda de liquidation to the Consortium.

2. the Consortium, as liquidator, on behalf of the creditors and in defence of their rights, urged, when there were place to do so, the demand for responsibilities of any kind, civil or criminal, no obligation to pay any bail, which had been incurred by those who played address of the entity in liquidation or administration charges.

When as a consequence of these actions, the Court señalaren compensation or any other economic compensations in favour of the entity and any completed its liquidation, the Consortium, if it had so has agreed in the settlement plan approved by the Board of creditors, it will distribute the amount obtained among the creditors that they had not recovered all of their claims, in accordance with the criteria set out in the plan of settlement and in the case of entities solvents between the partners or members of the entity.

3. in any case, the Consortium, their organs, representatives or attorneys will be considered debtors or responsible of them obligations and responsibilities that incumbent to the entity whose liquidation is you entrusted, or to its administrators.

4 involved liquidations, the intervention of liquidation shall cease at the moment this is entrusted to the Consortium.

5 where subsidiaries entities owned mostly by the insurance company or reinsurer settlement and whose social object is the management of assets for the account of the entity in liquidation, charged to the liquidation of the insurance or reinsurance agency consortium will involve the appointment as liquidator of such subsidiaries entities, with replacement of all social bodies for the registration of such appointment in the register the relevant administrative decision, which declare the liquidation of the joint group of companies.

The liquidation of the subsidiary bodies will be held under the rules of the revised text of the companies act of Capital, approved by Royal Legislative Decree 1/2010 of 2 July. If the subsidiary is insolvent the consortium to be free of apply for the contest, pending all liquidations in a coordinated manner.

6. the task of the liquidation of an insurance or reinsurance entity to the Consortium will be the change of its registered office, for all legal purposes, to the address designated by the Consortium. The change of address will also affect subsidiaries entities controlled by the entity in liquidation whose social object is the management of assets on behalf of that entity in liquidation.

For registration of the change of registered address on the register and administrative records will be enough the adopted agreement certification, issued by the President of the Consortium.

Change of address and its subsequent amendments shall be notified in the manner and with advertising determined by the commercial law for statutory modifications.

Article 185. General rules of procedure.

The procedure of liquidation by the consortium shall conform to the following specialities: 1. entrusted the liquidation to the Consortium, all creditors will be subject to the clearance procedure by this and not may be requested by creditors or by the insurance company the Declaration of insolvency, without prejudice to actions of any kind exercised before the courts against such insurer prior to the dissolution or during the liquidation period, continue its processing to obtain judgment or firm judgment. But the execution of the judgment, the liens, Court agreed administrations and other measures precautionary adopted by the judicial authority, the car that put the implementation in the Executive procedure, extrajudicial summary and Executive judicial procedures on pledged or mortgaged property which is situated in Spanish territory, as well as the implementation of the administrative measures of constraint they will be suspended from the encomienda from the liquidation to the Consortium and during the proceedings by the liquidator procedure.


2. is will have by expired, to the date of publication in the «newsletter official of the State» of it resolution administrative by which is entrusted it liquidation to the Consortium, them debts pending of the insurance, without prejudice of the discount corresponding if the payment of those is verify before the time preset in the obligation, and will leave of earn interests all them debts of the insurance , except for those credits mortgage and pignoraticious, until where scope the respective warranty.

3. the Administrators or liquidators have been named, delivered to the Consortium the inventory, Census partners and mutual benefit, and balance of the entity in the period of one month since you assumed the liquidation, unless the Consortium should submit it to the General Directorate of insurance and pension funds or to the external auditor, or be subject to the obligations imposed by the articles 383 and 388 of the text of the companies act of Capital approved by Royal Legislative Decree 1/2010 of 2 July.

Not receive administrators or liquidators documentation and information necessary, the Consortium will develop an inventory of the assets of the entity, a census of partners and mutual benefit, and a ratio of debt to the date of the assumption of the liquidation, using for this purpose the background and facts at your fingertips, which will form the basis for formulating the documentation required for the fulfillment of the accounting and fiscal obligations legally required without that assumes any responsibility in the event of errors or omissions on data not included in the documentation or records found.

4. in the fulfilment of the duty of information to creditors, will be expressly stated the special circumstance that the liquidation has been assumed by the Consortium. Likewise, since the time was aware of the existence of claims or presumed the possibility of its existence, it shall so inform the wage guarantee fund, which shall have the effects of the summons referred to in article 33.3 from the revised text of the workers ' Statute Act, approved by Royal Legislative Decree 1/1995 , 24 March.

5 when the transfer agreed ex officio by the General Directorate of insurance and pension funds holding an entity in liquidation, it shall not apply the provisions of the regulations implementing this law in relation to public information and the right of opposition.

6. the alienation of the property of the insurance company in liquidation may take place without public auction and do not require authorization of the General Directorate of insurance and pension funds, notwithstanding that in the disposal of such assets are observed the rules of transparency due and of the need to request the lifting of the measure precautionary measures in the cautelados property.

7. in it not regulated expressly in this law, will be of application them rules on liquidation and extinction of the text consolidated of the law of societies of Capital, approved by Royal Decree legislative 1 / 2010, of 2 of July, being of application extra it law 22 / 2003, of 9 of July, bankruptcy.

Article 186. Buying credits from resources of the Consorcio de Compensación de Seguros.

1 from the Consortium resources pertaining to its liquidation activity and in order to improve and achieve a more rapid satisfaction of the rights of creditors by insurance contract, in accordance with article 179, including public administrations that have such a condition, the consortium may offer acquisition by assignment of credits, by the amount that corresponds them in proportion to foreseeable resulting liquid having (, taking into account, for this sole purpose, the following standards: to) all the assets, rights and credits, including, where appropriate, the interests, which is a title insurer, though about them they are pending or have to start judicial or extrajudicial proceedings for maintenance in the patrimony of the entity or reintegration into this will be incorporated into the asset. Them credits in favor of the entity is computed by its value accounted, increased in them interests, if proceeds, and without deduct to these effects them corrections of value that have of constitute is depending on the possible insolvency of them debtors.

(b) them investment materials and financial is valued by the amount that is top of them two following: the price of acquisition more the amount of them improvements made on those, increased in them adjustments and updates legally possible; or the realizable value.

(c) not is will have in has, for the purposes of set the percentage to offer to them creditors by contract of insurance to which is refers the article 179.1, the order of priority of credits or them expenses of liquidation anticipated by the Consortium.

Also, also from their own resources, the consortium may acquire credits workers derived from wages and, where appropriate, compensation to those resulting from the termination of labour relations, with the limits provided for in article 53.1. b) of the revised text of the workers ' Statute Act, approved by Royal Legislative Decree 1/1995 (, 24 March, for cases of collective dismissals or endangered by objective causes of the 52.c article) of the cited text, and to bring exclusively because of liquidation, carry in the position of those creditors in the liquidation of the entity plan.

The consortium may acquire the part of wages and compensation for termination of the employment relationship that is paid to the wage guarantee fund, carry on the position of the worker against the concerned Agency.

The administrative decision entrusting the settlement to the Consorcio de Compensación de Seguros will suffice for the purposes specified in paragraphs 6 and 7 of article 33 of the revised text of the workers ' Statute Act adopted by Royal Legislative Decree 1/1995, of 24 March, in relation to benefits payable by the wage guarantee fund.

For the purposes of the provisions of article 51, paragraphs 9 and 10 of the consolidated text of the law of the Statute of workers, collective dismissal in an insolvent entity whose liquidation has been entrusted to the Consortium will have the same treatment as the companies falling into bankruptcy proceedings.

The Consortium will acquire, their real values and whenever they find it convenient for the more effective development of its liquidation function, all sorts of claims against entities in liquidation, carry is on the rights of the recipients, with maintenance of the range that had acquired credits. You can also make few agreements as it deems appropriate for a better development of the liquidation process.

2. the acquisition by assignment of the receivables referred to in paragraph 1 does not imply, in any case, assumption of the debts of the insurance company in liquidation by the Consortium.

Assignment of such receivables, anyone who was the quantity fulfilled, will reach the total amount of those and in identical order of preference that corresponds to them. Their holders not may formulate claim any for this concept; the holders of these credits that decide not to accept nor be claim against Consortium bid by the Consortium, who will maintain ownership of your credits and must be to the results of the liquidation.

Article 187. Payments charged to the resources of the entity.

The Consortium will satisfy beforehand, from the resources of the insurance company in liquidation, appropriations of creditors with a right in rem in the terms and in the order established in the mortgage legislation. If the satisfaction of such claims is not reach, referral creditors will have in the liquidation, to collect the amount not paid, the preference that corresponds to them according to the nature of its claim.

Article 188. General meeting of creditors.

1. simultaneously with the formulation of the liquidation plan, the Consortium convened general meeting of the creditors with a notice not less than one month nor more than two. It will be mentioned by personal notification and the publicized call for proposals which, in accordance with the circumstances of the case, it considers relevant. Until the day designated for the holding of the meeting, the creditors or their representatives may examine the liquidation plan. Until 15 days before the designated to the Board, you may request the exclusion or inclusion of credits, as well as challenges to the amount of those covered by written directed to the Consortium, or by appearance before this body, by designating the settlement documents or presenting the documents that you want to use the applicant in justification of their right. The consortium shall decide on each claim without further recourse, without prejudice to the right of dispute referred to in paragraph 4 and make the final list of creditors.


2. the Board held in the day, time and place designated in the convocation, may continue in the consecutive days that are needed, and will be chaired by a representative of the Consortium. All creditors included in the final list will be able to attend, personally or through a representative. The Board of creditors shall be legally constituted if appropriations of the concurrent and represented, at least three-fifths of the liabilities of the debtor in first call and any that is the number of concurrent and represented in second call credits; between them should mediate, at least twenty-four hours.

3 declared legally constituted the Board by the representative of the Consortium, will begin the session by reading the plan of liquidation and will proceed to the debate and subsequent vote on it. The liquidation plan shall be approved provided that creditors whose credits to import more than half of the amount of appropriations present and represented, both at first and second call to vote for the plan, and will be bound all the creditors by him, without having any right of abstention, and being applicable to Payables finance provisions of article 10(3) of law 47/2003 , of 26 November, General budget.

If the liquidation plan was not approved by the creditors, the Consortium will request the Declaration of insolvency.

4. inside of the eight days following the holding of the meeting, creditors who had not attended it or that, concurring, they disagreed of the majority vote or that they had been eliminated by the consortium of the final list referred to in paragraph 1, may legally challenge the liquidation plan. The challenge may only melts in the following cases: a) defects in the forms prescribed for the convocation, celebration, deliberation and adoption of agreements of the Board of creditors.

(b) lack of ability or representation on any of voters, including or excluding improper credits or included in the final list of creditors with more or less of that is deemed fair, provided that in any of these cases the estimation of the claim decisively influences the formation of most.

(c) error in the estimate of the asset or the priority of credits suffered by the Consortium.

In everything else, contesting the liquidation plan shall be subject to provisions of the law 22/2003, of July 9, bankruptcy, for opposition to the adoption of the Convention.

5. after the time limit set in paragraph 4 unless there had been opposition, or once handed down judgment that resolves it, Consortium will ratify the settlement plan adjusted to any modifications that have failed to be voting at the meeting of creditors or, where applicable, to those introduced by the final ruling has resolved the dispute and variations caused by assets activity.

6. by the Consortium will proceed to the payment of claims in implementation of the settlement plan ratified. Unclaimed credits shall be entered on deposit at the own Consortium available to their rightful owners for a period of twenty years, after which without having been claimed shall be credited to the public Treasury. Executed the plan of liquidation, will proceed to the extinction of the entity and the cancellation in records as provided in article 181.6. It shall apply the provisions of article 400 of the text revised law of societies of Capital, approved by Royal Legislative Decree 1/2010, of 2 July.

7. If, as a result of the gap that is temporary, unlike the case of contestation of the planned liquidation plan in paragraph 5 of this article, between the approval in general meeting of creditors of the settlement plan and the effective payment of claims to the creditors, and where appropriate, having social partners division, is a remnant or appear consequential asset These will be incorporated into the heritage of the trust for the purposes provided in the following section.

8. the credits recognized by the judgment which has notified the creditor after the holding of the general meeting of creditors, as well as those who recognise the Consortium, verify that they are adjusted to law, subsequent to the Board, will be satisfied by the consortium with the remnant who referred to above and, failing, with its own resources in the same terms that would have corresponded to have been included in the plan of liquidation. For credit insurance contract refers to article 179 the percentage payable is, in its case, the approved implementation of the benefits of liquidation of article 186, if it is over the result of the liquidation plan.

9 when the insurance company in liquidation is in situation of insolvency, if the Board of creditors approved the liquidation plan, the recovery by the consortium of liquidation expenses will depend on are completely satisfied others recognized in the liquidation.

Article 189. Performance of the Consorcio de Compensación de Seguros in the bankruptcy proceedings.

1. the judge, in the light of the report issued by the General Directorate of insurance and pension funds in accordance with article 168.2, may agree to ex officio the opening of the stage of liquidation without further formalities, with the effects provided for in the articles 143 et seq. of law 22/2003, of July 9, bankruptcy and with the specifications provided for in this law. In this case, the bankruptcy administration will present, simultaneously with the expected report in article 74 of the law 22/2003, of July 9, bankruptcy, the plan of liquidation in accordance with article 148 of the Act.

2. the bankruptcy administration of an insurance company shall be exercised exclusively by the Consorcio de Compensación de Seguros. Also, in the event of bankruptcy mediator request as provided for in article 5 bis of the Act, the appointment will fall on the Consorcio de Compensación de Seguros.

3. in any case, in the event of judicial competition of insurance companies statement, the Consorcio de Compensación de Seguros, in addition to assuming the functions that he credited with article 14.2 of the revised text of its Legal Statute, approved by Royal Legislative Decree 7/2004 of 29 October, shall, where appropriate, to adjust the amount of property that referred to article 179.2 for the sole purpose of distributing it among policyholders beneficiaries and third parties harmed, without prejudice to the rights that continue with them in the bankruptcy proceedings.

Within the competition, the creditors by insurance contract shall be regarded as creditors particularly privileged in the terms provided for in article 179.

4. If the insolvent insurance company lacked the necessary liquidity, the Consortium can anticipate expenses that are necessary, with their own resources, for the adequate development of the bankruptcy proceedings. However, the payment of them rights of attorneys and fees of lawyers involved in the request u opposition to the contest, as well as in them incidents and resources that could derive is, will be of has of them parts that them designate, without appropriate their advance by the Consortium.

5 credits with special privilege of creditors for contract of insurance referred to in article 179 will be fulfilled during the joint phase of the competition if so deemed suitable bankruptcy administration, charged to goods to which refers article 186, both if the payment can be without the need for its disposal as if it were necessary alienation that will take just the Consorcio de Compensación de Seguros pursuant to paragraph 3.

6. the consortium may apply the benefits of liquidation of article 186 subject to carry out the liquidation of the assets pertaining in the manner provided for in paragraph 3.

7. the report on the qualification provided for in point 3 of article 175 of the law 22/2003, of July 9, bankruptcy, will be issued by the Consortium as an organ of liquidation of the entity, which will be an interested party in the incident on behalf of creditors. The same will be sent as soon as the Consortium has had chance to know enough history and location of the entity to determine asset inventory and list of creditors and to issue a report reasoned about the causes of insolvency and the corresponding rating. For this purpose the judge will leave suspended the opening of the autonomous section scheduled qualification in article 174 of the law 22/2003, of July 9, bankruptcy until the liquidator organ to notify you that you are already able to issue the report, which in any case must always be before the convening of the meeting of creditors.

8 finished the contest, if this has been resolved finally to liquidating the entity, shall apply the provisions of article 188.8.

Title VIII violations and sanctions chapter I offenses article 190. Subject offenders.

1 offenders subjects are natural or legal persons who engage in actions or omissions classified as offences in this law, and in particular, the following: a) insurance or reinsurance entities.


(b) holding of insurance companies, mixed financial holding companies and mixed companies of insurance portfolio, when they are matrices of a group of insurance companies subject to supervision and societies of mutual group, according to the provisions of title III.

(c) entities which, in his case, should formulate and approve the consolidated accounts of groups of insurance and reinsurance companies provided for in article 84.

(d) the obliged entities of financial conglomerates in the case of an insurance company or a mixed financial portfolio, provided that in the latter case corresponds to the General Directorate of insurance and pension funds play the role of coordinator of the supplementary supervision of the financial conglomerate.

(e) persons or entities that are holders of significant shareholdings in insurance or reinsurance entities.

(f) the people that exercise it address effective, low any title, in any of the entities described in them lyrics earlier or exercise in them any of them functions of the system of Government planned in the article 65.3.

(g) the people to who legally is set any prohibition or mandate in relation to the field target of this law.

(h) the liquidators of insurance or reinsurance entities.

(2. in relation to the letter f) of the paragraph previous, is considered that exercise the address effective, low any title, who have charges of administration and address in the entity in them terms of the article 38.2, as well as who, without have been designated formally, play de-facto such responsibilities.

Article 191. Responsibility of participants, liquidators or charges of administration and direction.

1 offenders subjects referred to in article 190.1, letters e) to h), when they are responsible for offences committed by the authorities, may be the only one sanctioned by the Commission of the same.

2 a the effects of the provisions of the preceding paragraph, shall not be considered responsible for the infringements committed by the entities listed in the letters to), b), c) of the article 190.1, who exercise management positions, in the following cases: to) when those forming part of colleges of administration, had not assisted by reason to the relevant meetings or had voted against or saved his vote in relation to the decisions or agreements that had resulted in violations.

(b) when such infringements attributable exclusively to executive committees, CEOs, general managers or similar bodies, or other people with functions provided for in article 65.

The absence of responsibility shall not relieve from the obligation of reinstatement of the altered situation to its original state, provided for in article 206.1, where they had obtained earnings arising from decisions or agreements which had given rise to violations.

Article 192. Powers to impose penalties on insurance companies domiciled in other Member States.

The insurance entities domiciled in other Member States which operate in Spain under right of establishment or free provision of services regime are subject to the sanctioning of the Ministry of economy and competitiveness in the terms provided for in this title in whatever application and the following information: a) the sanction of revocation of the authorization shall be replaced by the prohibition to launch new operations in the Spanish territory as well as for the ban on renewal of current policies.

(b) the initiation of the procedure is communicated to them authorities supervisory of the State member of origin so, without prejudice of them sanctions that come with arrangement to this law, adopt them measures that consider appropriate so, in its case, it entity put end to its action infringing or avoid its reiteration in the future. Finalized the procedure, the Ministry of economy and competitiveness shall notify the decision cited authorities.

(c) are considered charges of administration and management of the branches the Attorney and others who address effectively this branch.

Article 193. Kinds of violations.

Offences are classified as very serious, major and minor.

Article 194. Very serious offences.

They shall be regarded as very serious infringements: 1. the failure to have the required minimum capital.

2. the breach of the obligation to dispose of the eligible own funds to cover the solvency capital requirements, when this failure derives a deviation equal to or greater than 20 percent.

3. the breach of the rules concerning the valuation of assets and liabilities, including the technical provisions, in a way that there is a deviation above 20 percent in the calculation of the eligible own funds to cover the solvency capital requirements.

4 failure to comply with the rules concerning the calculation of the solvency capital mandatory when this default arises a deviation equal to or greater than 20 percent.

5 lack of accounting required legally, as well as the failure to submit its annual accounts to audit accounts in accordance with the legislation in force.

6. the exercise of activities unrelated to the purpose that have legally given limited or transactions prohibited by rules of management or supervision status of law or breach of the requirements laid down in these, unless you have a character merely occasional or isolated.

7. in case of insufficiency of solvency capital requirements or the minimum capital requirements, not be communication with the General Directorate of insurance and pension funds in assumptions and terms laid down in articles 156 and 157, or does not present the plan of funding or of recovery provided for in the above-mentioned articles.

8. the breach of the obligation to inform in time the existence of the cause of dissolution.

9. the failure to comply with repeated the special control measures referred to in the articles 160 and 161. For these purposes, means that the breach has the character of repeated when it is fails to comply with the resolution of the action and is not addressed within the granted period requirement which in effect makes him the General Directorate of insurance and pension funds.

(10 present deficiencies in the system of Government, especially in the relative to the functions of risk management, internal control, compliance and actuarial, as well as the outsourcing of functions or activities, when such deficiencies reduce the solvency or jeopardize the viability of the insurance or reinsurance entity or group defined in article 131.1. f) , or financial conglomerate to which it belongs.

(11. the lack of referral of all information or documents must be supplied to the General Directorate of insurance and pension funds, or the lack of veracity of submitted, when thus endanger management sound and prudent of the insurance company or reinsurance company or of the group defined in the article 131.1. f), or financial conglomerate that belong , or the appreciation of its solvency is difficult and when have been presented correctly infers is that the entity or group or financial conglomerate would be bankrupt in case of special control measures, in deteriorating financial situations or in situations that give rise to a compulsory solvency capital requirement further.

12. the acquisition or increase of a significant stake in an insurance company or reinsurance company in breach of the provisions of article 85, this operation involves the transmission of control in the same.

13. the transfer of portfolio, transformation, merger, split and extinction of insurance or reinsurance entities without the required authorization or, when was granted, without adjusting to it.

14. the excuse, refusal or resistance to acting Inspector, whenever any express requirement and written on the subject. Shall be considered an excuse, refusal or resistance to acting Inspector any action or omission of the entity or persons with whom the proceedings to unduly delay, hinder or prevent these are understood.

15. the breach of the duty to publish the report on the financial situation and solvency.

((16. the lack of referral by them entities insurance that operate in the bouquet 8 of the annex to) .to): fire and elements natural, of the information to supply for the purposes of the liquidation and fundraising of them rates by the maintenance of the service of prevention and extinction of fire of them contributions special by the establishment or enlargement of the service of prevention and extinction of fire , in fulfilment of the obligation established by the fourteenth additional provision, where such conduct has recurring character.

17. the realization of acts or operations that are contrary to the rules on transparency of market and protection of the rights of the users in the field of insurance, provided that the number of people affected, the reiteration of the conduct or the effects on customer confidence and the stability of the financial system, such breaches can be estimated as especially relevant.


18 retain improperly, without entering them within time, mandatory charges raised in favour of the Consorcio de Compensación de Seguros.

19. the breach of the obligation to supply the competent authority the information referred to in legislation regulating the registration of death cover insurance contracts, as well as the lack of accuracy of the submitted information, when this behavior recurring character.

20. the lack of submission of the information to that referred to in article 2(2) of the text revised law on civil liability and insurance in the circulation of motor vehicles, approved by Royal Legislative Decree 8/2004, of 29 October and its implementing rules, as well as the lack of accuracy of the information submitted when this is difficult to control the effective fulfillment of the obligation of insurance or the identification of the entity insurance which should take damages caused in a traffic accident, provided that such behaviors are recurrent in nature.

21. the breach of the duty of information accuracy due to its partners, members and the public in general, as well as failure or defective performance of the obligations of information to insured persons and members of the estimated future rights arising from instruments of character complementary or alternative Social security covering retirement commitments, provided that the number of affected or the importance of the information such non-compliance can be estimated as especially relevant.

Article 195. Grave breaches.

They shall be regarded as serious offences: 1. failure to comply with the obligation to dispose of the eligible own funds to cover the solvency capital requirements, when this failure derives a deviation equal to or greater than 10 percent, does not constitute a very serious breach.

2. the breach of the rules concerning the valuation of assets and liabilities, including the technical provisions in a way which occurs a deviation equal to or greater than 10 percent in the calculation of the eligible own funds to cover the solvency capital requirements when it is not very serious infringement.

3. the breach of the rules concerning the calculation of the solvency capital mandatory when that breach arises a deviation equal to or greater than 10 percent and does not constitute a very serious breach.

4. the breach of the rules on posting of operations and formulation of the annual accounts, provided that it does not constitute very serious infringement, as well as those relating to the preparation of the financial statements of forced communication to the General Directorate of insurance and pension funds.

5. the realization merely occasional or isolated of activities outside to the object social exclusive or of acts or operations prohibited by rules of management and supervision or with breach of them requirements established in these.

6. the breach of the obligation of communicate in term the agreement of dissolution or the application of dissolution administrative.

7 present deficiencies in the system of Government, especially with regard to risk management, internal control, audit internal, actuarial functions, as well as the outsourcing of functions or activities and that this does not constitute infringement very always serious.

(8. it lack of remission of few data or documents must be supplied to it address General of safe and funds of Inns, or the lack of veracity of them referred, when with this is makes it difficult for the appreciation of the solvency of it entity insurance or reinsurance or of the group defined in the article 131.1. f), or conglomerate financial to which belong and , when of have is presented correctly, it infers a decrease in them ratios of solvency declared.

9. the repeated breach of the agreements or resolutions of the direction General of safe and funds of Inns. For these purposes, means that the breach has the character of reiterated when it fails to comply with an agreement or resolution and is not addressed the requirement which in effect makes him the General Directorate of insurance and pension funds.

10. the acquisition or increase of a significant stake in an insurance company or reinsurance company in breach of the provisions of article 85.

11. the failure by the liquidators, or who played positions of management or direction in the five years prior to the date of dissolution, of the obligations imposed by article 180.

12. do not raise coming, make it unduly so insufficient and, in general, breaching their obligations legally required charges in favour of the Consorcio de Compensación de Seguros fundraising form and term.

13. the breach of the duty of information accuracy due to its partners, members, policyholders or the public in general, as well as carrying out any acts or breach of the rules governing advertising operations and duty information of the insurance or reinsurance entities.

14. the lack of replacement, as provided in article 38.3, of those who concur cause of inability or prohibition, as well as the lack of reference to the General Directorate of insurance and pension funds of information necessary for evaluation of the requirements of good repute and skill, and his incomplete remission or lack of accuracy in the information submitted.

15. the failure by the insurance company of the mandatory regulations of the specific legislation on insurance contract, when during the two years prior to his Commission had neglected more than ten requirements of the General Directorate of insurance and pension funds in the term granted to the effect by having understood well-founded complaints and claims raised in the procedure of administrative of financial services customers protection When is not considered as a very serious offense.

16. the realization of acts or operations with breach of the rules on transparency of market and protection of the rights of the users in the field of insurance, that might not imply the Commission of an offence very always grave in accordance with the provisions of the preceding article, unless it has occasional or isolated character.

17. them behaviors discriminatory by reason of sex against them takers, insured, beneficiary or third handicapped, when have been so declared by sentence judicial, in accordance with the regulations on the equality effective of men and women.

18. the absence or malfunctioning of the departments or customer services, once, once the period granted for that purpose by the General Directorate of insurance and pension funds, is has failed to rectify the deficiencies identified by this.

19. the breach of the obligation to supply the competent authority the information referred to in legislation regulating the registration of death cover insurance contracts, as well as the lack of accuracy of the submitted information.

20. the failure to control measures when it is not considered very serious.

21 the lack of referral by the insurance companies that operate in the field 8 of Annex A) .to): fire and natural elements of the information supplied for the purpose of the settlement and collection of fees for the maintenance of the service for the prevention and extinction of fire or the special contributions by the establishment or extension of the service of prevention and fire fighting in fulfilment of the obligation established by the fourteenth additional provision.

22. the lack of submission of the information to that referred to in article 2(2) of the text revised law on civil liability and insurance in the circulation of motor vehicles, approved by Royal Legislative Decree 8/2004, of 29 October and its implementing rules, as well as the lack of accuracy of the information submitted when this is difficult to control the effective fulfillment of the obligation of insurance or the identification of the entity insurance that must assume them damages and damages incurred in an accident of circulation.

23. the failure to present the reasoned offer or give the reasoned submission referred to in articles 7 and 22.3 of the revised text of the Act on civil liability and insurance in the circulation of vehicles at motor, approved by Royal Legislative Decree 8/2004, of 29 October, when such conduct has a recurring character.

Article 196. Infractions minor.

They shall be regarded as minor offences: 1. the non-availability of eligible own funds to cover the solvency capital requirements when such non-compliance is the result a deviation of less than 10 percent.

2. the breach of the rules concerning the valuation of assets and liabilities, including the technical provisions in a way that there is a deviation in the calculation of the eligible own funds to cover the solvency capital required less 10 per cent.

3 failure to comply with the rules concerning the calculation of the solvency capital mandatory when this default arises a deviation of less than 10 percent.


4. remission period of data or documents must be supplied to the General Directorate of insurance and pension funds, or their lack of accuracy when it is not serious or very serious violation. In particular, remission, outside certain deadlines and form regulations, documentation and information necessary to enable the keeping updated the administrative registration regulated in article 40.

5. the non-observance by the insurance company of the mandatory regulations of the specific insurance contract law, if not attend requirement which in effect makes him the General Directorate of insurance and pension funds when it understood well-founded complaints and claims raised in the procedure of administrative of financial services customers protection in the period of one month.

6 to take a significant stake in breach of the provisions of article 85.

7 submit incomplete or inaccurate financial statements of forced communication to the General Directorate of insurance and pension funds.

8. the breach of those agreements or resolutions of the address General of safe and funds of Inns, when not constitutes a violation serious.

9. the realization of acts u operations that are contrary to the rules on transparency of market and protection of them rights of them users in the field of them safe, when not constitute infringement serious or very serious according to it willing in them two articles previous.

10. the breach of the duty of presenting the reasoned offer or give the reasoned submission referred to in articles 7 and 22.3 of the revised text of the Act on civil liability and insurance in the circulation of vehicles at motor, approved by Royal Legislative Decree 8/2004, of 29 October, when does not constitute serious infringement.

11. the breach of the decision issued by the defender of the customer of an entity insurance when is favorable to the claim raised by a taker of safe, insured, beneficiary or third handicapped.

12. Enter out of term them surcharges collected in favor of the consortium of compensation from insurance.

13. in general, them breaches of precepts of forced observance for the entities insurance included in standards with range of law of supervision of them safe private, whenever not constitute infringement serious or very serious. For this purpose they will understand by regulations on supervision of private insurance, the misunderstood in this law and its regulations development and, in general, those provided for in rules that contain precepts of forced observance referred to the objective scope of this law.

Article 197. Prescription of infringements.

1. very serious infringements barred at age five, the bass, the four, and the mild, at age two.

2. the period of limitation for offences will start counting from the day on which the infringement has been committed. Infringements arising from an ongoing activity, the starting date of the computation will be the completion of the activity or the last act with which the infringement is consumed.

3 pause prescription the initiation of the disciplinary procedure with knowledge of the person concerned, and shall be resumed if the disciplinary record was paralyzed more than two months for reasons not imputable to the suspect.

It will also interrupt the prescription initiation, with knowledge of the person concerned, of the inspection procedure in which gets shown the Commission of the offence and will resume once issued the resolution putting an end to this procedure.

Chapter II sanctions article 198. Penalties administrative to the entities for offences very serious.

By the Commission of serious offences will be imposed to the infringing entity one or several of the following sanctions: a) revocation of the administrative authorization.

(b) suspension of the administrative authorization to operate in one or several fields in which the insurance company is authorized or to operate in one or more of the activities in which authorised the reinsurance entity, for a period not exceeding ten years or less than five.

(c) fine for amount exceeding 240.001 euros and maximum of 1 per cent of its turnover. To these effects, turnover means the raw spread, understood as premiums earned corrected with the change in the provision for unearned premiums, in the last financial year closed prior to the Commission of the offence. For those entities that operate under right of establishment or freedom to provide services, this figure refers to the volume of business in Spain.

This sanction may be imposed simultaneously with the penalties provided for in the letters to), b) and (d)).

(d) public reprimand with publication in the «Official Gazette».

This sanction may be imposed simultaneously with the penalties provided for in the letters to), b) and (c)).

Article 199. Administrative sanctions on entities for serious infractions.

By the Commission of serious offences will be imposed to the infringing entity one or several of the following sanctions: a) Suspension of the administrative authorization to operate in one or several fields in which the insurance company is authorized or to operate in one or more of the activities in which the reinsurance entity is authorised for a period of up to five years.

(b) fine for amount exceeding 60,000 euros and maximum of 240,000 euros.

This sanction may be imposed simultaneously with the penalties provided for in the letters to) and (c)).

(c) public reprimand with publication in the «Official Gazette».

(This sanction may be imposed simultaneously with the penalties provided for in the letters a) and b).

Article 200. Administrative sanctions on entities for minor offences.

By the Commission of minor offences will be imposed to the infringing entity one or several of the following sanctions: a) fine for maximum amount of 60,000 euros.

(b) private admonishment.

Article 201. Liability in the event of a merger, global transfer of assets and liabilities or excision.

For entities extinguished by fusion, global transfer of assets and liabilities or excision, the administrative responsibility of the same by the penalties of fine in the field of the supervision of private insurance is enforceable to the absorbing entity or newly created, taking into account, in the case of Division, the percentage of the acquired heritage.

Article 202. Penalties for very serious offences committed by partners, liquidators, who, under any title, exercise effective direction and those who perform the functions that integrate the system of Government.

By the Commission of very serious offences, may impose one or more of the following penalties, each violator subject: to) separation of duties, ineligibility for office of administration, management, liquidation and performance of the functions provided for in article 66 in any insurance company or reinsurer, for a maximum period of ten years.

(b) temporary suspension in the exercise of the charge for a period of not less than one year nor more than five years.

(c) fine for amount exceeding 150.000 euros and maximum of 500,000 euros. (This sanction may be imposed simultaneously with the penalties provided for in the letters a) and b).

(d) public reprimand with publication in the «Official Gazette». This sanction may be imposed simultaneously with the penalties provided for in the letters to), b) and (c)).

Article 203. Penalties for serious offences committed by partners, liquidators, who, under any title, exercise effective direction and those who perform the functions that integrate the system of Government.

By the Commission of serious offences, may impose one or more of the following penalties, each violator subject: to) Temporary Suspension in the exercise of the office by not later than one year.

(b) fine amounting to maximum € 150,000 and more than 30,000 euros. This sanction may be imposed simultaneously with the sanction provided for in to).

(c) public reprimand with publication in the «Official Gazette». (This sanction may be imposed simultaneously with the penalties provided for in the letters a) and b).

Article 204. Penalties for minor offences committed by partners, liquidators, who, under any title, exercise effective direction and those who perform the functions that integrate the system of Government.

By the Commission of minor offences, may impose one or more of the following penalties, each violator subject: to) fine for maximum amount of 30,000 euros.

(b) private admonishment.

Article 205. Criteria of graduation of sanctions.

1. on the imposition of sanctions is will have in has them factors of aggravation or attenuation that could attend.

(2. is considered aggravating or mitigating, according to them cases, the following circumstances: to) the nature and the number of made constituent of the infringement, as well as the grade of intentionality in its Commission.

(b) the gravity of the danger created or of the damage caused.

(c) the profit, if any, as a result of the acts or omissions constituting the offence.


(d) conduct developed previously by the offending subject in relation to the Commission of offences of the same nature, provided for in articles 194, 195 and 196, which are not prescribed and have been declared by firm resolution.

(e) the degree of responsibility for the facts that concur in the offender.

(f) the relevance of the occupied post or of the duties performed by the officer in the organizational structure of the entity.

(g) the adverse consequences of the facts for the insurance sector, the financial system or the economy.

(h) having voluntarily proceeded to the repair of damages caused.

(i) the dimension of the infringing entity measured on the basis of the total amount of your balance, and the volume of business, measured according to the amount of its premiums in the last financial year ended prior to the Commission of the offence.

(j) the consequences that the amount of the sanction to impose could have on the continuity or viability of the violating entity.

(k) in the case of failure of the solvency capital requirements or the minimum capital requirements, difficulties objective that they can be crowded to achieve or maintain the level legally required.

(l) the remuneration obtained by the subject infringing in the exercise of its cargo, as well as their situation economic and others circumstances personal of the same.

(m) the level of cooperation of offenders subjects in the clarification and processing of the disciplinary proceedings.

3. the aggravating or extenuating circumstances of offences shall be applied per each offending subject for each infringement, can be seen as very qualified in view of its special relevance.

4. the sanctions to impose will be divided into three grades, minimum, medium and maximum. Each grade will understand the result of dividing the maximum amount of time or the monetary amount provided for in the sanction to impose in three sections. According to the concurrence or non-attenuating or aggravating circumstances, will set the penalty according to the following rules: to) when very serious infringements go more than two circumstances of aggravation, and at least two of them were very qualified, shall be liable to the penalty provided for in article 198.a) and, where appropriate, in article 202.a). For graduation this last is you attend the concurrence of other than the two of aggravation very qualified determining circumstances from the imposition of this sanction.

((((((b) when in them infractions very serious and serious such circumstances of aggravation and, unless, an of them out very qualified, is imposed them sanctions planned in the article 198.b) or article 199.a) and, in its case, them of the article 202.b) or 203.a), respectively, whenever in them infractions very serious not fulfilled them circumstances determinants of it application of it willing in the letter to) previous. In addition, for the graduation of the sanction will attend, in all cases and in accordance with the criteria of paragraph 2, to the concurrence of other circumstances other than the decisive very qualified aggravation of the imposition of these sanctions.

(c) when such circumstances of aggravation and mitigation for the same violation, be rationally compensated for the determination of the sanction, adjusting the value of ones and others, and applying to the lessor the following criteria: 1 when concurriese a single circumstance of aggravation, the shall be imposed on the average degree.

2nd when such various circumstances of aggravation, or one very qualified, the sanction will be imposed to the maximum extent.

(d) when no such circumstances of mitigation or aggravation, or they would be compensated, the sanction will be imposed in the minimum degree.

(e) in General, within the limits of each degree, the amount of the sanction will be at half of the degree that corresponds, and motivate otherwise, and taking into account that if such circumstances of attenuation, the sanction to be applied will be the result of multiplying the amount of half of the grade by 0.5 as many times as circumstances of attenuation are. If a circumstance of attenuation outside considered as very qualified is computed as if it were of two circumstances of attenuation that not have such consideration.

(f) when is imposed simultaneously several sanctions by a same violation, the circumstances aggravating or mitigating existing is apply for the graduation of all them sanctions corresponding to that infringement.

Article 206. Measures inherent in the imposition of administrative sanctions.

1. the body imposing the sanction may require the offender cessation of the conduct and the replacement to their State from the situation he altered in the term that the effect is determined.

2. also, in the so-called of that, by the number and class of them people affected by them sanctions of separation or suspension, is necessary for ensure the continuity in it administration and address of the entity, the organ that imposed the sanction may have the appointment, with character provisional, of one or more administrators or of them members that is require to the organ Collegiate of Administration can adopt agreements , pointing to its functions in both cases. He appointment of them administrators provisional is governed by it willing in them standards General of this law and shall exercise their charges until, by the organ competent of the entity, that must be convened of mode immediate, is provide them corresponding appointments and take possession them designated or, in his case, until expiration date the term of separation or suspension.

3. the imposition of sanctions, except the consisting of private reprimand, shall be recorded in the administrative registration of insurance and reinsurance companies and the high charges of insurance and reinsurance companies and, once are Executive, should be subject to communication to the immediate Board or general Assembly to be held later.

The separation of office and suspension sanctions, once are Executive, shall be noted, in addition, in the register and, where appropriate, in the register of cooperatives.

4. equally, the sanctions, except the consisting of private reprimand, once are Executive, shall be communicated to the National Commission of the stock market and the Bank of Spain.

5. the cancellation of the record for penalties in the administrative register may be ex officio or at the request of interested parties, provided that it has elapsed, without having been sanctioned again within a year for the penalties for minor offences, three years to the penalties for serious offences and five years for the penalties for very serious offences. This period shall run from the day following that in which it has been fulfilled the sanction.

Article 207. Concurrence of procedures administrative and processes criminal.

The exercise of the powers to impose penalties will be independent of any concurrence of offences or criminal misconduct. However, when considering that the facts could be constitutive of the crime will be knowledge of the judicial authority or the public prosecutor's Office and sanctioning administrative procedure shall be suspended until justifiably strong judicial pronouncement. Also are agreed the suspension of the procedure administrative sanctioning until justifiably pronouncement judicial firm when is has knowledge of that is is processed a process criminal by them themselves made or by others whose separation of them punishable with arrangement to this law is rationally impossible.

We cannot impose administrative penalties when criminal sanction has fallen and there is identity of subject, made, and Foundation. If it has place to resume the sanctioning administrative procedure, the administrative decision handed down must respect the appreciation of facts containing judicial pronouncement.

Article 208. Activities and use of names reserved for insurance and reinsurance entities.

1. persons or entities, as well as who in law or in fact exercising administration charges or address in them, that can carry out insurance or reinsurance operations without the mandatory administrative authorization or which use the designations of insurance or reinsurance entities, without being one, will be penalized with a fine amounting to up to 500,000 euros, in addition to give publicity to the constitutive behaviour of infringement. If required so that they cease immediately activities or the use of the names, they will continue doing them or using them, they will be sanctioned with a fine amounting to up to 1,000,000 euros, that it can be reiterated on the occasion of further requirements.

2 shall be competent for the imposition of sanctions and for the formulation of the regulated requirements in the preceding paragraph the Director-General of insurance and pension funds. Requirements will be formulated after hearing of the person or entity concerned and the fines imposed in accordance with the applicable procedure for the imposition of sanctions against insurance or reinsurance entities.

3. the provisions of this article shall be without prejudice of other responsibilities, even criminal, that they may be required.

Article 209. Prescription of the sanctions.


1. penalties for very serious offences shall be extinguished after the five years, penalties for minor offences and penalties for serious offences, the four will make it two years.

2. the period of limitation of the sanctions will start counting from the next day to the one that you purchase firmness the resolution by which the sanction is imposed or, in your case, since the breakdown of the penalty imposed, if this had begun to be fulfilled.

3 pause prescription initiation, with knowledge of the person concerned, of the execution of the sanction, and reset the time if this execution is paralyzed for more than three months for reasons not imputable to the offender.

Chapter III procedure penalties Article 210. Regulation of the sanctioning procedure.

1 the sanctioning procedure must be set: to) by the special rules laid down in this law and the regulations issued in its development.

(b) in its default, shall apply the provisions of the Royal Decree 2119 / 1993 of 3 December, on sanctioning procedure applicable to subjects that operate in the financial markets and in the Real Decree 1398 / 1993, of 4 August, which approves the regulation of the procedure for the exercise of the powers to impose penalties. Also, it will be of supplementary application title IX of the law 30/1992, of 26 November, legal regime of public administrations and common administrative procedure.

2. regulations is will regulate a procedure simplified when is try of infractions mild or, still being serious, when them made are clearly certain by have is tested in others performances sanction or recorded in records of the inspection of safe, by have is recognized or declared by them own interested, by recorded in records administrative or by other circumstances justified.

Article 211. Public complaint.

Through it denounces public is may put in knowledge of the Administration made or situations that can be constitutive of violations of standards of supervision of them safe private.

Received a complaint, is sent to the organ competent to perform them performances that could proceed. This organ may remember the file of it denounces when is consider unfounded or when not is translated or identify enough them made or the people reported. You may initiate actions that apply if there is evidence sufficient accuracy on the facts charged and these are unknown to the administration. In this case, the complaint will not form part of the administrative record.

Not it deemed the complainant interested in administrative proceedings which are initiated as a consequence of the complaint or you will be informed of the outcome of the same. It will nor be entitled for the interposition of resources or claims in relation to the results of these measures.

Article 212. Administrative skills.

1. the beginning of the proceedings shall be the Director General of insurance and pension funds, who will appoint as an instructor to a staff member serving in the General Directorate of insurance and pension funds.

2. the resolution of them procedures sanctioning by violations serious and mild will correspond to the Director General of insurance and funds of Inns.

In the case of very serious offences, the resolution will be the Minister of economy and competitiveness, on the proposal of the General Directorate of insurance and pension funds.

3. the implementation of the sanctions will correspond to the General Directorate of insurance and pension funds.

Article 213. Deadlines.

1. the deadline for resolve and to notify the resolution in the sanctioning procedure shall be one year from the adoption of the agreement of initiation. If you followed the simplified procedure time for resolve and to notify the resolution shall be six months.

2 the deadline for decision as the deadlines for the completion of the procedures provided for in this chapter, may be extended as provided for in the articles 42.6 and 49 of law 30/1992, of 26 November, legal regime of public administrations and common administrative procedure, must be notify the decision to the interested parties.

First additional provision. Regime applicable to the States of the European economic area that do not form part of the European Union.

The provisions of this Act referring to the Member States of the European Union, to the insurance companies and reinsurers in them domiciled or activity on them in the Spanish insurance and reinsurance entities shall also apply to the States part of the of the space economic Europe agreement which are not members of the European Union, to the insurance companies and reinsurers in them domiciled and the activity of the Spanish insurance and reinsurance entities in those States.

Second additional provision. Establishment and information about insurance.

1. they may require to those engaged in certain activities to present a direct and particular risk to health or to the safety of persons, including financial security, the subscription of an insurance or other equivalent warranty that covers damages that may cause and which are responsible for.

The required guarantee must be provided to the nature and extent of the risk covered.

2. the obligation of insurance underwriting shall establish through regulations with the rank of law which must have a mandatory report from the General Directorate of insurance and pension funds, or of the competent body of the autonomous communities, so that they can make comments in respect of insurance technique.

Lacking the corresponding compulsory insurance activities will be very serious administrative violation, without prejudice to the specific regulations.

Infringing subject will be the physical or legal person who came to the signing of the insurance, and may be punished by a fine of 1,000 to 20,000 euros.

The statement and resolution of the sanctioning procedure will correspond to the competent public administration for reason in the matter which regulation imposes compulsory insurance underwriting.

3. the General Directorate of insurance and pension funds shall notify the European Commission, in accordance with the registry to develop regulations and that manage the Consorcio de Compensación de Seguros in Spain compulsory insurance, indicating the specific provisions governing the compulsory insurance.

4. for this purpose the competent bodies of the autonomous communities shall inform the General Directorate of insurance and pension funds, in the period of three months from the entry into force of this law, the compulsory insurance in their respective community, and within a month since its approval, compulsory insurance which are established after indicating the specifications of the preceding paragraph.

Third additional provision. Validity of the administrative authorisation throughout the European Union.

Administrative authorisation granted to insurance and reinsurance companies Spanish banks to under the law prior to this law, when it extends to all the Spanish territory, is valid throughout the European Union in accordance with the provisions of article 21, except in the case of Social Welfare mutuals that are not authorized to operate by ramos of insurance and the insurance entities benefiting from the special regime of solvency.

Fourth additional provision. Validity of the authorizations of extension of benefits granted to mutuals of forecast social.

Them mutual of forecast social that with prior to the entry in force of this law had retrieved the authorization administrative for the enlargement of benefits but met them requirements for welcome is to the regime special of solvency may continue operating by ramos.

Fifth additional provision. Information to the Commission European and to the authority European of insurance and pension of retirement on difficulties of them entities insurance or reinsurance Spanish.

The General Directorate of insurance and pension funds will inform the European Commission and the European authority of insurance and retirement pension of the difficulties of a general nature to find the Spanish insurance or reinsurance entities established to pursue their activity in a third country.

Sixth additional provision. Entities with committed special.

Them entities with committed special domiciled in Spain that met them conditions established in the normative specific that les is of application, may request in Spain authorization administrative for the exercise of their activities, that is will grant by the Minister of economy and competitiveness according to the procedure that is determine regulations, taking in has the normative of the Union European of direct application. The term maximum for resolve and notify the resolution is of six months. After this term without having is notified resolution express, is means rejected the request.

Seventh additional provision. Revision of the amounts expressed in euro.


The amounts expressed in euro in articles 11 and 78 shall be reviewed every five years, by modifying its initial amount in euros in the percentage change of the harmonised indices of prices for the consumption of all States members of the European Union pursuant to that published by Eurostat, from December 31, 2015, up to the date of the review rounded upward to a multiple of EUR 100,000. If the percentage change since the previous review is less than five percent, will be no revision of the amounts.

The revised amounts will be published by the European Commission in the «official journal of the European Union» and shall apply within the period of twelve months from the publication.

To facilitate your knowledge and application, these updates will be made public, also by decision of the General Directorate of insurance and pension funds.

The eighth additional provision. Obligations of the Auditors of the accounts of insurance and reinsurance entities.

The Auditors of the accounts of insurance or reinsurance entities shall be required to communicate to the General Directorate of insurance and pension funds, within the period established in the regulations for audit of accounts, any fact or decision on an entity insurance or re-insurance-which have had knowledge in the exercise of its function of audit practiced the same or another entity with which the insurance or reinsurance entity has close ties (resulting of a relationship of control, when the quoted made or decision can: to) constitute a violation grave of the normative of supervision of them safe private;

(b) impair the continuity of the exercise of the activity of insurance or reinsurance entity;

(c) involve the abstention of the opinion of the auditor of accounts, or an opinion unfavourable or caveats, or prevent the issuance of the audit report;

(d) assume a breach with respect to the solvency capital requirements; (or e) suppose a breach with respect to the minimum capital requirements.

Ninth additional provision. Insurance Actuaries.

Actuaries of insurance can play in any case, the actuarial function referred to in article 66.5 and its regulatory development.

In any case are actuaries who have obtained a university degree of advanced and specialized in actuarial and financial Sciences character.

Tenth additional provision. Experts from Insurance Commissioners of breakdowns and faults of liquidators.

They are insurance experts who dictate on the causes of the accident, the assessment of damages and other circumstances that influence the determination of the compensation for an insurance contract and formulate the liquid amount of the compensation proposal.

They are Commissioners and liquidators of failure who develop functions which credited the law 14/2014, of 24 July, maritime navigation.

Experts from insurance, Commissioners of faults and liquidators of failure involved in the procedure of contradictory expert appraisal must have technical knowledge sufficient legislation on insurance contract and, if it's regulated professions, being in possession of a qualification in this field that must decide, with the scope to be determined according to the rules.

Eleventh additional provision. Concerts of insurance companies with the administration of the Social security agencies.

Without prejudice to the provisions of articles 77 and 199 of the text of the General Social Security Act, approved by Royal Legislative Decree 1/1994 of 20 June, and under this law, the rules of supervision of private insurance will apply to financial guarantees, technical bases and rates of premiums that correspond to the obligations which assume the insurance under the concerts that entities in his case and following a report of the General Directorate of insurance and pension funds or competent body of the autonomous communities, established with the administration of the Social security agencies or entities of public law that have entrusted in accordance with their specific legislation, the management of some of the Special Social security schemes.

Models of insurance policies under the concert referred to in the preceding paragraph shall be at the disposal of the General Directorate of insurance and pension funds or competent bodies of the autonomous communities.

Twelfth additional provision. Communications between supervisors in the field of sanctions.

In the event that the Bank of Spain, the Commission national of the market of values, it Commission national of them markets and competition or it address General of safe and funds of Inns initiate a procedure sanctioning to an entity financial subject to the control of another of them supervisors, shall communicate this circumstance to the supervisor corresponding, which may collect it information that consider relevant for the purposes of their powers of supervision.

Thirteenth additional provision. Insurance of bond in favor of administrations public.

The contract of suretyship insurance concluded with insurance company authorized to operate in the field of suretyship shall be admissible as form of guarantee before the public administrations in all the assumptions that applicable law requires or permits credit institutions or financial institutions of credit constitute guarantees before these administrations. (Are requirements for the contract of safe of bond can serve as form of warranty before them administrations public them following: to) will have the condition of taker of the safe who should provide the warranty before the Administration public and it of secured such administration.

(b) the lack of payment of it prima, is only, first or following, not will give right to the insurance to resolve the contract, or this will be extinguished, or the coverage of the insurance suspended or this released of its obligation in the event that is produce the sinister consistent in the contest of them circumstances under which should do effective it warranty.

(c) the insurance not may oppose to the secured them exceptions that can match you against the taker of the safe.

(d) the policy in which formalize the contract of suretyship insurance shall follow the model approved by order of the Minister of economy and competitiveness.

Fourteenth additional provision. Additional obligations of information of the insurance companies operating in the field of fire and natural elements.

1 the insurance entities that operate in class 8 (fire and natural elements), laid down in Annex A) .to) of this law, shall send to the Consorcio de Compensación de Seguros, with the frequency and the procedure to be determined by resolution of the General Directorate of insurance and pension funds, the following information: to) identifying data of the insurance entity : company name, address, and key administrative with the figure registered in the administrative register of insurance companies and reinsurance companies.

(b) premiums charged in the exercise by fire insurance contracts, distributed by municipalities according to the risks assumed by property situated in each of them.

For these purposes, the premiums to be considered will be 100 per 100 of those relating to fire insurance and 50 per 100 of those in the insurance lines that include the risk of fire.

In case of existence of coinsurance obligation will fall on each coaseguradora according to its share of participation.

2. this obligation will be applicable both to the Spanish insurance entities and the domiciled in another Member State of the European economic area which exercise their activity in Spain in regime of the right of establishment or free provision of services regime.

The information will be object of treatment automated.

3. the Consorcio de Compensación de Seguros will facilitate, at the request of the competent organs for the settlement and collection of fees for the maintenance of the service for the prevention and extinction of fire and the special contributions for the establishment or expansion of the fire service, information by municipalities and insurance companies, in a way that may determine the percentage representing an insurance company fire insurance premiums on the sum of premiums of all the insurance companies covering the risk of fire from property situated in a municipality.

The above information will be provided directly or through the Spanish Federation of municipalities and provinces within the time limits and the procedure to be determined by the General Directorate of insurance and pension funds. For this purpose, the Consorcio de Compensación de Seguros and the Spanish Federation of municipalities and provinces can sign partnership agreements that are necessary.

Similarly, information to "Manager of concerts for the contribution to the AIE fire extinguishing services», as most representative of the insurance entities for the signing of cooperation agreements for the fulfillment of tax obligations will be provided by the Consorcio de Compensación de Seguros.


4. the obligation expected in the paragraph 1 has the consideration of standard of management and supervision of them safe private and its breach shall constitute infringement administrative in accordance with it willing in this law.

The Consorcio de Compensación de Seguros shall forward to the General Directorate of insurance and pension funds a relationship of the insurance entities who, being authorized to operate in the aforementioned field, had not supplied the information referred to in paragraph 1. Also the Consorcio de Compensación de Seguros shall inform the General Directorate of insurance and pension funds any significant incidents that may occur in the fulfilment of this obligation.

Without prejudice to the administrative offences arising out of the breach of obligation and in view of the communications of the Consorcio de Compensación de Seguros, the General Directorate of insurance and pension funds may make requirements to the insurance companies or require computer audits, or the application of other measures conducive to ensuring the accuracy of the information provided.

5. the format of the data file for the information of premiums charged by insurance companies shall be established by resolution of the General Directorate of insurance and pension funds.

Fifteenth additional provision. Technical bases and calibration of the funeral insurance risks.

Regulations will determine the simplified regime for the insurance of deaths, at the level of technical basis, provisions and solvency capital requirements, depending on the specific of this type of insurance risks.

Sixteenth additional provision. Progressive introduction of authorisations established by this law and other measures of adaptation to Solvency II.

(1. starting from the publication of this law, them entities insurance and reinsurance may present to the address General of insurance and funds of Inns them requests of approval relating to a model internal full or partial, of conformity with the article 75.1. b), or to a model internal of group, of conformity with them articles 146 and 147, being competition of the Minister of economy and competitiveness the decision on these authorizations.

2 in addition, as of that date, insurance and reinsurance entities may apply to the General Directorate of insurance and pension funds authorization for the following aspects: to) own funds additional to those referred to in article 71.

(b) the classification of items of own funds to which refers article 72.

((c) the use of specific parameters to which refers article 75.1 to).

(d) the creation of national bodies with special responsibility in accordance with the sixth additional provision.

(e) supplementary own funds of a society of intermediate insurance portfolio in accordance with what is available by law.

(f) the use of the statutorily regulated length-based equity risk sub-module.

(g) the use of the adjustment by marriage of the temporary structure relevant interest rates without risk in accordance with article 69.5.

(h) the use of the temporary measure on interest rates without the risk referred to in the eighteenth final disposition.

(i) the use of the temporary measure on the technical provisions referred to in the 19th final disposition.

3 starting from the 1 September 2015, the insurance entities that meet stated in article 101 may apply to the General Directorate of insurance and pension funds the implementation of the special solvency regime regulated in Chapter VIII of title III.

4 with regard to the supervision at the level of Group of insurance and reinsurance entities, the General Directorate of insurance and pension funds is competent for: to) determine the level and scope of the group supervision in accordance with articles 133 and 140 to 142.

(b) identify the group in accordance with article 134 supervisor.

(c) establish a College of supervisors in accordance with the article 135.

((d) authorize the provisions of paragraph 2, letters c), h) e i), at the level of group, in accordance with what is established in the regulations of the European Union of direct application.

(e) decide on the deduction of any participation in credit institutions, investment services and financial institutions, as it develops regulations.

(f) authorise the choice of the method for calculating the solvency of the group in accordance with what is available by law.

(g) to conduct the assessment of equivalence, where appropriate, in accordance with article 154.

(h) authorize the application of the system of centralized management of risks, in accordance with article 150.

(i) determining the methods that guarantee a proper supervision of third countries non-equivalent groups and determine the level of verification of equivalence, in accordance with regulations.

5. resolutions to bring an end to procedures dealt with under this provision will not produce effects until January 1, 2016, provided that they have been issued prior to this date.

Seventeenth additional provision. Obligation of communication by electronic means.

The General Directorate of insurance and pension funds may be established through circular the obligation to communicate with it by electronic means, in the cases referred to in article 27.6 of law 11/2007, of 22 June, electronic access of citizens to public services.

Eighteenth additional provision. Scheme of calculation of technical provisions for accounting purposes.

Insofar as not is modify the Real Decree 1317 / 2008, of 24 of July, by which is approves the Plan of accounting of them entities insurance, to effects accounting, continue to being of application them articles that is determined according to the rules of the Real Decree 2486 / 1998, of 20 of November, by which is approves the regulation of management and Supervision of them safe private , and its implementing regulations.

Nineteenth additional provision. Regulatory referrals.

Normative references made to other provisions in the revised text of the law on management and supervision of private insurance, approved by Royal Legislative Decree 6/2004, of 29 October, shall be made to the corresponding provisions of this Act.

Twenty additional provision. Reallocation of resources.

The obligations arising from the enforcement of this law will be met through reallocation of the regular resources of the Ministry of economy and competitiveness without requiring additional equipment.

First transitional provision. Regime of the mutual insurance, mutual social welfare and cooperatives to prima variable.

The mutual insurance premium variable and mutual benefit societies of social welfare to the variable premium that the entry into force of this law were authorized for the office of the insurance business in accordance with the provisions of the consolidated text of the law of management and supervision of private insurance, approved by Royal Legislative Decree 6/2004 (, October 29, as well as the mutual welfare and cooperatives to variable premium which, in accordance with the provisions of the article 69.2 b) of the revised text of the law on management and supervision of private insurance, approved by Royal Legislative Decree 6/2004, of 29 October, have been authorized for the financial year of the insurance business in some of the autonomous communities in the areas of competence You can not continue the insurance business with this legal form.

In the term of a year from the entry in force of this law, them mutual of safe to prima variable will have of transform is in mutual of safe to prima fixed, in societies anonymous or remember its dissolution and liquidation. The mutuals of forecast social and the cooperative to prima variable is may transform Additionally in mutuals of forecast social to prima fixed and in cooperative to prima fixed, respectively.

Second transitional provision. Transitional arrangements for adapting to the minimum amounts of capital stock and mutual fund.

1. the insurance entities that the entry into force of this Act continue the regime laid down in the sixth additional provision of the consolidated text of the law of management and supervision of private insurance, approved by Royal Legislative Decree 6/2004, of 29 October, members may continue that procedure, provided that they have properly calculated, posted, and reversed the technical provisions have legally enforceable mandatory minimum capital and solvency capital requirements and are not falling in a procedure of special control measures, nor are falling on causes of dissolution or revocation of the administrative authorization.


2 entities which have opted to be the provisions of the preceding paragraph and no longer meet any of the requirements in this, should be to authorization of the General Directorate of insurance and pension funds a viability plan from the moment in which no longer meet these requirements. If viability plan is authorized by the General Directorate of insurance and pension funds, shall determine the conditions and the time, which may not exceed two years, that these entities must achieve, in any case, the capital stock or mutual fund minimums required by articles 33 or 34 of this Act, as appropriate. Failure to comply with the deadline, in relation to the viability plan, will be cause for dissolution.

3. the insurance entities which have opted to be the provisions of paragraph 1, may maintain activity in the fields in which they were authorized, but without extending it to other different classes.

Third transitional provision. Administrative procedures in course.

The administrative procedures initiated before the entry into force of this law shall be governed by the previous regulations.

Fourth transitional provision. Transitional regime in the conditions of exercise of mutual social welfare organizations that have not obtained the administrative authorisation for extension of benefits.

1. from the 1 of September until the 31 of December of 2015, the mutuals of forecast social that not have authorization for enlargement of benefits may request to the address General of safe and funds of Inns welcome is to the regime special planned in the article 102 of this law. The term maximum of force of this regime transitional will be of three years from the entry in force of this law.

2. in order to benefit from this special scheme they shall submit to the General Directorate of insurance and pension funds, along with the application, a plan for adaptation to the general regime of Solvency II.

Fifth transitional provision. Regime of certain insurance operations carried out by mutual social welfare under cover of the consolidated text of the law of management and supervision of private insurance, approved by Royal Legislative Decree 6/2004, of 29 October. Except for limits to benefits in the form of capital.

1. the social welfare mutuals authorized prior to the entry into force of this Act without having a permit for extension of benefits, come performing insurance legal expenses or assistance, or lend aid family members to meet needs caused by events or acts that temporarily prevent the exercise of the profession, will continue these operations indefinitely.

The coverage of risks that is made in breach of it willing in the paragraph previous will have the consideration of operations prohibited as it willing by the article 5 of this law.

2. the mutualities of social welfare which, under the aegis of the legislation prior to this law, came legally guaranteeing benefits to persons in amount greater than the limits specified under article 44.1 of the Act, will continue to ensure the benefits that would have established, but may not adopt agreements increase or Revalorization of benefits while still being exceeding the limits mentioned in the referred Article or incorporate new mutual to these policies or benefits regulations.

Sixth transitional provision. Auxiliary advisers registered January 1, 2016.

Auxiliary advisers appearing recorded in the register envisaged in article 52 of the Law 26/2006, of July 17th, mediation of insurance and private reinsurance, by January 1, 2016, will cause low office, to have gone the legal obligation of registration.

Seventh transitional provision. Regime of the social benefits authorised to mutual benefit societies of social welfare under cover of the revised text of the law of management and Supervision of private insurances, approved by Royal Legislative Decree 6/2004, of 29 October.

1. the mutualities of social welfare that have authorization to grant social benefits in accordance with the provisions of article 64.2 of the text of the Act of ordination and supervision of private insurance, approved by Royal Legislative Decree 6/2004, of 29 October, to the entry into force of this law may continue granting them, even when social benefits to those that have been approved are not linked to the operations of insurance that is (regarding article 44.1 of the Act, meeting the conditions set out in the same, as well as the following: to) since the entry into force of this law social organs of the mutual social welfare may not agree granting of new social benefits for its members which do not comply with the provisions in article 44.4 of this law.

(b) which have already been agreed by the social organs prior to the entry into force of this law may continue granting to total extinction, without possibility of extension.

(((c) them benefits social that is agreed breach it willing in them lyrics to) and b) of this paragraph will have the consideration of operations prohibited as it prepared by the article 5 of this law.

2. the mutualities of social welfare that have authorization to grant social benefits covered article 64.2 of the text of the Act of ordination and supervision of private insurance, approved by Royal Legislative Decree 6/2004, of 29 October, pursuant to the entry into force of this law, provided the social benefits that have been authorized conform to the provisions of article 44.1 of the Act You can continue giving them in the terms required by this final rule.

Eighth transitory provision. Transitional regime of the federations of social welfare mutual reinsurance activity.

Reinsurance contracts entered into between mutual social welfare organizations and federations of mutual social security, under cover of provisions of earlier legislation, which are in force at the entry into force of this Act, may be kept until maturity, without possibility of renewal or extension.

Ninth transitional provision. Transitional regime of minimum capital requirements.

1 entities insurance and reinsurance companies that meet the solvency margin laid down in article 17 of the revised text of the law of management and supervision of private insurance, approved by Royal Decree legislative 6/2004, of 29 October, and its implementing regulations, the entry into force of this law but do not have funds own basic allowable sufficient to cover the capital minimum mandatory pursuant to article 78 of this law they will be required to meet the provisions in this final rule prior to December 31, 2016. Otherwise, the administrative authorization will be revoked for the activity of insurance or reinsurance.

The foregoing shall not prevent the application, where appropriate, special control measures that are relevant.

2. until 31 December 2017, the percentages referred to in the first paragraph of article 78.3 of the Act for the calculation of the limit of the minimum capital requirements, shall apply only to the solvency capital requirements, excluding any capital of additional compulsory solvency demanded.

Tenth transitional provision. Scope of the special scheme of solvency.

From 1 September until 31 December 2015, the insurance entities domiciled in Spain that do not carry out activities on rule of law of establishment or free provision of services in other Member States or third countries, may benefit from the special solvency regime regulated in Chapter VIII of title III, upon request to the General Directorate of insurance and pension funds proving that they meet all the conditions to be established by regulation during the period preceding the application.

Eleventh transitional provision. Insurance companies and reinsurance companies that do not sign new contracts from 1 January 2016.

1 insurance and reinsurance entities which from 1 January 2016 does not sign new contracts of insurance or reinsurance and exclusively to manage its existing portfolio of contracts to put an end to their activities, shall not be subject to title I to V of this law if they meet any of the following conditions: a) the entity has communicated to the General Directorate of insurance and pension funds which shall cease its activity before 1 January 2019.

(b) the entity is the subject of reorganisation measures provided for in Title VI of this law and it has appointed an administrator.

2 entities that referred to in paragraph 1, they shall be subject to the provisions of titles I to V of this law from the following dates: a) to paragraph 1.a), from January 1, 2019, or from an earlier date if the General Directorate of insurance and pension funds is not satisfied of the progress made with a view to the cessation of the activity of the entity.

((b) for paragraph 1.b), from 1 January 2021 or from an earlier date if the General Directorate of insurance and pension funds is not satisfied of the progress made with a view to the cessation of the activity of the entity.


3 to be able to welcome to this temporary measure, insurance and reinsurance entities shall meet the following requirements: a) if the entity is part of a group, all entities that are part of the same must sign new contracts of insurance or reinsurance.

(b) submit an annual report in which established the progress made with a view to the cessation of its activity to the General Directorate of insurance and pension funds.

(c) notify the General Directorate of insurance and pension funds the application of this transitional measure.

4. This temporary measure will not prevent that no entity can operate in accordance with this law and its development regulations.

Twelfth transitional provision. Temporary validity.

Without prejudice to provisions of the eighteenth additional provision, until it issued the regulations of development of this law, shall remain in force the rules of ordination and supervision of private insurance, approved by Royal Decree 2486 / 1998, 20 December; the regulation of mutual social security, approved by Royal Decree 1430 / 2002, of 27 of December; the Plan of accounting of those entities insurance, approved by the Royal Decree 1317 / 2008, of 24 of July; and other provisions of general character dictated in development of the consolidated text of the law of management and supervision of private insurance, in everything that is not contrary to this law.

Thirteenth transitional provision. Transitional arrangements of the amendments made to the law of insurance contract through the first final provision of this law.

Insurance entities will have six months to adapt policies which are placed on the market after the entry into force of this law to the changes introduced through the first final provision of the same Law 50/1980, of 8 October, of insurance contract. After the same and for a maximum period of one year, insurance entities adapt to its renovation, policies relating to existing contracts. However, those precepts that have mandatory since the entry into force of this law shall direct application.

Repealing provision.

They are hereby repealed many provisions of equal or lower rank is contrary to the provisions of this law and, in particular, the following: to) articles 33.a), 75 and the definition of large exposures of the article 107.2 of the Law 50/1980, of insurance contract.

b) the Royal Decree 2020 / 1986, of 22 August, which approves the regulation of operation of the liquidator Commission from insurance companies.

(c) the Royal Decree 2226 / 1986, of 12 September, whereby is entrusted to the Commission liquidator of insurance companies the functions attributed to the Commission created by the Royal Decree-Law 11/1981, dated 20 August.

d) the Royal Decree 731/1987, of 15 may, which approves the regulation of the Consortium's compensation insurance, insofar as it could be in force.

(e) the order of 25 March 1988, by which the Royal Decree 2020 complements / 1986, of 22 August.

(f) the Royal Decree 312/1988, 30 March, whereby the liquidation of institutions of social welfare instructs the liquidator Commission from insurance companies).

(g) the Royal Decree legislative 6/2004, of 29 October, which approves the revised text of the law on management and supervision of private insurance, except its articles 9, 10 and 24 in what refers to the mutual, mutual social welfare and insurance cooperatives; the sixth additional provision; the available additional seventh; (and the reference contained in it available repeal of the Real Decree legislative, letter to). 8. th, by which is maintains in force the available additional fifteenth of it law 30 / 1995, of 8 of November, of management and Supervision of them safe private, that must follow current.

First final provision. Modification of law 50/1980, of 8 October, insurance contract.

Is modifies the Law 50 / 1980, of 8 of October, of contract of insurance, in the following terms: one. The paragraph 3 of the article eighth is drafted as follows: «3. nature of the risk covered, describing, of form clear and understandable, them guarantees and coverage granted in the contract, as well as concerning each an of them, them exclusions and limitations that les affect outstanding typographically.»

Two. Article eleven is worded as follows: ' 1. the policyholder or the insured person shall during the term of the contract report to the insurer, as soon as possible, the alteration of the factors and circumstances stated in the questionnaire provided in the previous article that aggravate the risk and are of such a nature that if they had known this at the time of the completion of the contract would have not held it or I would have completed it in» more onerous conditions.

2 the insurance the policyholder or the insured have no obligation to communicate the variation of the circumstances relating to the State of health of the insured, which in any case will be aggravation of risk."

3. The twenty-second article is worded as follows: "1. the duration of the contract will be determined in the policy, which may not lay down a period exceeding ten years.» However, you can set that extends one or more times for a period not exceeding one year each time.

2. the parties may oppose the extension of the contract by a written notice to the other party, carried out with a deadline notice, at least one month prior to the conclusion of the period of insurance in the process when the policyholder who opposes the extension, and two months whenever the insurer.

3. the insurer shall inform the policyholder, at least with two months before the conclusion of the current period, any modification of the insurance contract.

4. the conditions and time limits for opposition to the extension of each party, or its unenforceability, must stand out in the policy.

5. the provisions of the preceding paragraphs shall not apply to the extent inconsistent with the regulation of insurance on the life.»

Four. Adds a fifth section, within Title III called «Death and dependency insurance», with the following items: "six hundred article bis.»

1. by the safe of deaths the insurance is requires, within them limits established in this title and in the contract, to provide them services funeral agreed in the policy to the case in that is produce the death of the insured.

Excess of the insured amount on the cost of the service provided by the insurer shall be the policyholder or, failing that, to the heirs.

2. in the event that the insurer had not been able to provide provision for reasons beyond its control, it force majeure or by the service have been done through means other than those offered by the insurer, the insurer shall be obliged to satisfy the sum insured to the heirs of the deceased insured, not being responsible for the quality of the services provided.

3. in case of concurrence of deaths in a same insurance company insurance, the insurer is obliged to return, at the request of the policyholder, the premiums paid from the policy which it has decided to cancel since the concurrence.

4. in the case of the death, had the concurrence of insurance of deaths occurred in more than one insurance company, the insurer who had not failed to comply with its obligation of providing funeral services under the terms and conditions provided for in the contract, will be liable to the payment of the sum insured to the heirs of the deceased insured.

5. the opposition to the extension of the contract may only be exercised by the policyholder.

Article six hundred ter.

1. by the dependency insurance the insurer undertakes, within the limits laid down in this title and in the contract, in the case of occurrence of dependence, to the fulfilment of the agreed provision in order to meet, wholly or partly, directly or indirectly, the harmful consequences for the insured arising from this situation.

2. for the purposes of this article, refers to situations of dependency provided for in the regulations for the promotion of personal autonomy and care to persons in situations of dependency.

3 the provision of insurer may consist of: to) pay to the insured the capital or the agreed rent.

(b) refund to the insured the costs of assistance.

(c) ensure the provision of support services, the insured and the insurer to the insured provide such services and directly bear its cost.

4. the opposition to the extension of the contract may only be exercised by the policyholder.

Article six hundred quater.

In healthcare insurance, dependence and of deaths, the insurance entities ensure members the freedom of choice of the provider of the service, within the limits and conditions laid down in the contract. In these cases the insurance company should be available to the insured party, in easily accessible form, a list of service providers that guarantee an effective freedom of choice, except in those contracts that expressly expected a single lender.

In funeral insurance shall apply the provisions of article 106 bis.2 when heirs directive services by means other than those offered by the insurer in accordance with the preceding paragraph.'


Second final provision. Modification of law 13/1996 of 30 December, measures fiscal, administrative and Social order.

With effects from 1 of January of 2016, is introduced the following changes in the law 13 / 1996, of 30 of December, of measures fiscal, administrative and of the order Social: one. It suppresses the number 2 of the paragraph nine of the article 12.

Two. It suppresses the paragraph 14 of the article 12.

Available to finish third. Modification of law 38/1999, of 5 November, of building management.

Law 38/1999, of 5 November, building management, is modified in the following terms: one. Paragraph 1 of article 19 is worded as follows: damage insurance, insurance bond or financial security» to ensure, during one year, the compensation for damage or flaws of execution affecting elements of completion or finishing works, that he may be replaced by retention by the promoter of a 5 by 100 of the amount of the material execution of the work.

b) property damage insurance, insurance bond or financial security, to guarantee, for three years, the compensation for damages caused by defects or defects of the construction elements or facilities resulting in non-compliance with the requirements of paragraph 1, point (c) habitability), article 3.

«(c) insurance property damage, insurance, bond or financial security, to guarantee, for ten years, compensation for material damage to the building or flaws that have their origin or affect the Foundation, brackets, beams, slabs, walls of load or other elements structural, and directly jeopardize the mechanical resistance and stability of the building.»

Two. Amending the first additional provision, which is worded as follows: «first additional provision. Perception of amounts on account of the price during the construction.

One. Obligations of the promoters who receive advance amounts.

(1. them people physical and legal that promote the construction of all class of housing, included which is made in regime of community of owners or society cooperative, and that intend to get of them acquiring deliveries of money for its construction, must meet them conditions following: to) ensure, from the obtaining of it license of building, the return of them amounts delivered more them interests legal through a contract of suretyship insurance signed with insurance companies authorized to operate in Spain, or through solidarity guarantee issued by duly authorised credit institutions, for the case that the construction does not start or does not reach fruition by the agreed deadline for the delivery of housing.

(b) collect the amounts anticipated by the buyers through credit institutions in which be deposited in special account, with separation of any other kind of funds belonging to the promoter, including communities of owners or cooperative society, and that they will only have to the attention resulting from the construction of dwellings. For the opening of these accounts or deposits the lender, under his responsibility, will require the guarantee referred to in the previous condition.

2. the warranty shall extend to the amounts provided by purchasers, including applicable taxes, more the legal interest of the money.

Two. The guarantees requirements.

1 that a contract of suretyship insurance can serve as a guarantee of the amounts anticipated in the construction and sale of housing must meet the following requirements: to) you will subscribe an insurance policy individually by each acquirer, in which identifies the property whose acquisition quantities or trade effects are delivered in advance.

(b) the insured amount will include the total amount of advance amounts on the purchase agreement, accession to the promotion or phase of the cooperative or equivalent legal instrument, including applicable taxes, increased in the legal interest of the money from the actual delivery of the advance until the date of the delivery of the housing by the promoter.

(c) insurance policyholder will be the promoter, who shall be responsible for the payment of the premium for the entire period of insurance to lift public deed of the purchase agreement, accession to the promotion or phase of the cooperative or equivalent legal instrument.

(d) the condition of insured corresponds to the purchaser or purchasers that are included in the sales contract.

(e) the insurer may not object to the insured the exceptions that could correspond to them against the policyholder. The lack of payment of the premium by the promoter will not be, in any case, exception takes effect.

(f) the duration of the contract may not be lower than the commitment for the construction and delivery of houses. Where is grant extension for the delivery of them housing, the promoter may extend the contract of safe through the payment of the corresponding prima, must report to the secured of such extension.

(g) the entity insurance can check during the validity of the safe them documents and data of the promotor-tomador that keep relationship with them obligations collapsed facing them insured.

(h) where the construction does not start or does not reach fruition within the time agreed the insured, provided that it has required in an irrefutable manner to the promoter for the return of the amounts contributed to account, including applicable taxes and interests and this within the period of thirty days has not proceeded in return You can claim the payment of appropriate compensation to the insurer. Similarly, the insured may apply directly to the insurer when the claim prior to the promoter is not possible.

The insurer shall indemnify the insured within the period of thirty days to tell since it makes the claim.

(i) in no event shall be compensable amounts that not certifying that they were provided by the insured, even if they are included in the insured amount of the insurance contract, by its delivery delayed the contract of transfer have been agreed.

(j) the insurer may apply to the promotor-tomador the amounts paid to the insured, for which purpose is subrogated in the rights that correspond to these.

k) in the event that the insurance company has satisfied compensation to the insured as a consequence of the accident covered by the insurance contract, the promoter not may dispose of housing without having previously compensated to the insurance company by the indemnified amount.

(l) in all as not specifically provided, shall you apply the Law 50/1980, of 8 October, insurance contract.

2 that an endorsement can serve as a guarantee of the amounts anticipated in the construction and sale of housing must meet the following requirements: to) should be issued and kept in force by the credit institution, by the total sum of the amounts anticipated in the contract of sale, of adherence to the promotion or phase of the cooperative or equivalent legal instrument including applicable taxes, increased in the legal interest of the money from the actual delivery of the advance until the date of the delivery of the housing by the promoter.

(b) where construction does not start or does not reach fruition by the agreed deadline, the beneficiary, provided that it has required in an irrefutable manner to the promoter for the return of the quantities delivered to account, including applicable taxes, and interests, and this within thirty days has failed to return , may require to the surety the manure of such amounts. Similarly, the beneficiary may apply directly to the guarantor where not possible prior to the promoter claims.

(c) the expiry of a period of two years, counting from the non-observance by the promoter of the secured obligation unless it has been required by the acquirer for rescission of the contract and the refund of advance amounts, will result in the forfeiture of the guarantee.

3. Contractual information.

In the contracts for the acquisition of dwellings in which delivery is agreed the promoter, including communities of owners or cooperative society, anticipated quantities must be expressly stated: to) that the promoter undertakes to return to the acquirer of the perceived to account amounts, including applicable taxes, plus interest where construction is not started or completed within the agreed deadlines to be determined in the contract-legal , or the certificate of habitability, license of first occupation or equivalent document enabling for the occupation of housing has not been obtained.

b) reference to the contract of insurance or a bank guarantee referred to them in Section uno.1.a) of this provision, with indication of the name of the insurance company or the guarantor entity.


(c) designation of the entity of credit and of it has through which is has of make delivery by the acquirer of the amounts that is had committed anticipate as consequence of the contract held.

In the time of the granting of the contract of sale, the promoter, included the so-called of communities of owners or society cooperative, will make delivery to the acquirer of the document that accredits the warranty, referred and individualized to them amounts that have of be anticipated to has of the price.

Four. Enforcement of the guarantee.

If construction had yet to begin, or the dwelling had not been delivered, the purchaser can choose between the termination of the contract with return of the quantities delivered to account, including applicable taxes, increased legal interests, or grant the promoter extension, which shall be recorded in an additional clause of the awarded contract, specifying the new period with the date of completion of the construction and delivery of the housing.

5. Cancellation of the warranty.

Issued the certificate of habitability, the first occupation licence or equivalent document enabling for the occupation of the dwelling by the competent administrative authority and accredited by the promoter of housing delivery to the purchaser, will cancel the guarantees granted by the insurance company or surety. Fulfilled the above conditions, will result same as if the purchaser refused to receive housing.

6. Advertising promotion.

In advertising for the promotion of housing with perception of quantities to account prior to the initiation of the works or during the period of construction, will be required to certify that promoter will adjust their performance and recruitment to the fulfilment of the requirements established in this law, making mention expresses the insurance company or surety guarantor, as well as the credit institution in which figure to open special account in which there will be of entered the advance amounts.

Seven. Offences and penalties.

Failure to comply with the obligations imposed in this provision constitutes infringement of consumer, applies the provisions of the general sanctions regime on the protection of consumers and users intended in general legislation and the corresponding regional regulations, without prejudice to the powers conferred by legislation to the General Directorate of insurance and pension funds.

It breach of the obligation of constitute warranty to which is refers the paragraph uno.1 of this provision will give place to a sanction of until the 25 by 100 of them amounts whose return should be secured or which corresponds according to it willing in the normative own of them communities autonomous.

In addition to the above, will be imposed to the promoter, including communities of owners or cooperative society, offences and penalties which may be applicable in accordance with the specific legislation in respect of building management.

8. Regulatory development.

Regulations public bodies for the promotion of housing that exempting the requirements under this additional provision may be determined.

The Government may make supplementary provisions for the development of the provisions of this additional provision.»

3. Add a third transitional provision, with the following wording: «third transitional provision. Adaptation to the regime introduced by the first additional provision «Perception of amounts on account of the price during the construction», editorially given by law 20/2015, 14 July, management, supervision and solvency of insurance companies and reinsurance companies, amending the law 38/1999, of 5 November, of building management.

The insurance entities shall, prior to July 1, 2016 and for the quantities delivered to account as of that date, to adapt policies in force of January 1, 2016, the regime introduced by disposal law 20/2015, July 14, tercera.dos of management, supervision and solvency of insurance and reinsurance companies which modifies the first additional disposition 'perception of amounts on account of the price during the construction"of the law 38/1999, of 5 November, building management.»

Four. Add a third repealing provision with the following wording: «third repealing provision.

They are hereby repealed many provisions of equal or lower rank is contrary to the provisions of this law and, in particular, the following: a) the law 57/1968, of 27 July, on I perceive of quantities early in the construction and sale of housing.

(b) the Decree 3114/1968, of 12 December on application of law 57/1968, of 27 July, communities and housing cooperatives).

(c) the order of 29 November 1968 on consolidation of advance amounts for housing insurance, in what could be in force. "

Fourth final provision. Modification of the revised text of the law of regulation of plans and pension funds, approved by Royal Legislative Decree 1/2002 of 29 November.

Is modifies the text consolidated of it law of regulation of them plans and funds of Inns, approved by the Royal Decree legislative 1 / 2002, of 29 of November, in the following terms: one. The article 2 is worded as follows: «article 2.» Nature of pension funds.

Them funds of Inns are wealth created to the exclusive object of give compliance to plans of Inns, whose management, custody and control is carried out in accordance with the present law.

Can also create pension funds with the aim of channelling investments from other pension funds, as provided for in article 11 ter."

Two. Paragraph 2 of article 10 is worded as follows: «2. regulations shall be conditions that are subject to the relations between the plan and the Pension Fund, and in particular those relating to the transfer of the position of the plan account from one pension fund to another, as well as the liquidation of the plan. " Regulations you may establish conditions and requirements that the Committee on control of a pension plan to a fund can channel resources from your position to other pension funds account or ascribed to several, managed, in his case, by different management entities.»

3. Paragraphs 9 and 10 of article 11 are written as follows: «(9. En relación con los procesos de inversión desarrollados, los fondos de pensiones podrán encuadrar_se dentro de dos tipos: a) closed Fund, which implements only the investments of the plan or pension plans integrated in it.»

(b) Fund opened, characterized by be able to channel the investments of other funds of pension and retirement plans attached to other funds in accordance with the provisions of article 11 ter.

10. in the pension funds belonging to defined-benefit pension plans may be required the establishment of a minimum initial equity, according to levels set according to the rules, because the required guarantees for correct financial development.»

Four. It introduces a new article 11 ter with the following wording: «article 11 ter. Open pension funds.

1 may act pension funds with the aim of channelling investments from other funds of pension and retirement plans attached to other funds of pension in accordance with the provisions of this article.

(The funds of Inns open is framed necessarily in an of them categories following: to) funds of Inns open of employment, intended to channel investment of funds of Inns of employment. In the terms established by law, the system of employment pension schemes also can channel resources from your account of open pension funds of the employment position.

(b) pension funds open personal, aimed at channelling investment of personal pension funds. In the terms established by law, individual and associated system pension plans also open personal can channel resources from your position to pension funds account.

Each investors pension funds and investors and pension plans hold an account of participation in the open bottom.

The direct integration of open pension funds pension plans will be optional, and must be in any case in the same category of employment or staff.

2. in the open pension funds of employment shall constitute a fund control Commission, comprised of representatives of the funds and pension schemes investors, and where appropriate, of the plans integrated directly, who will be appointed by commissions for control of such funds and plans among its members. As long as there is a single investment fund or a single inverter or integrated pension plan, the control of this Committee will serve as Committee on control of the open pension fund.

Pension funds open personal will not be accurate for a Commission of control of the open bottom, corresponding functions with the rules attached to that, where appropriate, to the managing body.


The Committee on control of the open pension fund will be governed by the provisions of article 14 and the rules that develop it according to the rules, understanding, where appropriate, made investors pension funds or investors pensions plans references to pension plans.

The operating expenses of the Committee on control of the open pension fund will be supported by the Fund, even though you can remember to his total or partial assumption by the management entities or depositaries or promoters plans pension.

3. for the establishment of an open pension fund institutions management agreement will be required and depository.

Open pension funds constitute, prior administrative authorisation, in accordance with the procedure regulated in articles 11 and 11 bis specifications, where appropriate, are established by law. Its name must be followed, in any case, the expression 'open pension fund'.

The public deed of incorporation of the open pension fund must include their performance standards which specify its scope expressing its object as open bottom, their category of employment or staff and the minimum contents laid down in article 11.2. c), which are application, understanding if made to participation accounts referencing position accounts.

A closed Pension Fund of employment or staff may become open Pension Fund, under the terms established by law.

4. open pension funds shall be governed by the provisions of this law and its implementing rules relating to pension funds that are not specific intended for personal or employment funds exclusively to integrate pension plans, understanding, where appropriate, made investors pension funds or investors pensions plans references to pension plans.

Regulations may define requirements and conditions specific to the activity and operation of open pension funds and, in particular, they may require a minimum equity.

«Will be applicable to them funds of Inns open them provisions of the chapter IX understanding made, in his case, to them funds of pension investors and plans of Inns investors them references to plans of Inns.»

5. The letter g) of paragraph 1 of article 20 is worded as follows: «partners and persons physical members of the Council of administration, as well as to Directors General and related to the latter of the managing bodies of pension funds, les will apply the provisions of articles 36 and 38 of the Act 20/2015 July 14, management, supervision and solvency of insurance companies and reinsurance companies, without prejudice to its regulatory specificity."

6. Paragraph 6 of article 20 is worded as follows: ' 6. will be cause for dissolution of the managing bodies of pension funds, in addition to those listed in article 363 of the recast of the Capital Companies Act, approved by Royal Legislative Decree 1/2010, of July 2, the reversal of the administrative authorization, except when the entity waives such authorization» (, coming such waiver only motivated by the modification of its corporate purpose to develop an activity other than the exclusive purpose of administration of pension funds referred to in point (c)) of paragraph 1.

The agreement of dissolution, as well as advertising that prevents the article 369 of the law of capital companies, shall be entered in the administrative register and shall be published in the "official bulletin of the State" and the extinct entity will be cancelled in the administrative register, in addition to compliance with provisions of article 396 of the Act of Capital companies.

However the above, dissolution, liquidation and extinction of the insurance entities authorized as managers of pension funds shall be governed by the specific rules of law 20/2015, July 14, of management, supervision and solvency of insurance and reinsurance entities.»

7. Paragraphs 1 and 2 of article 24 are written as follows: ' 1. corresponds to the Ministry of economy and competitiveness, management and administrative supervision of the compliance of this law, may seek from the managing bodies and depositories of the entities or persons that have delegated or outsourced functions, marketers of individual pension plans» , of the promoters of the plans of pension, the commissions control, Actuaries, as well as representatives of other Member States pension funds, all the information that is required to check the correct performance of the legal and regulatory provisions.

The General Directorate of insurance and pension funds will be part, of their status as supervisory authority Spanish relating to pension funds, of the European authority of insurance and retirement pension (AESPJ), pursuant to Regulation No. 1094 / 2010 of 24 November, the European Parliament and the Council, whereby creating a European supervisory authority and application in the field of pension funds set out in article 17 of the law 20/2015, 14 July, management, supervision and solvency of insurance and reinsurance entities.

2 shall apply to the inspection of management entities and plans and pension funds provisions on the inspection of insurance entities in chapter IV of title IV of the Act 20/2015, on July 14, management, supervision and solvency of insurance and reinsurance entities.

In the absence of expressly otherwise stated in the specifications of pension plans or pension funds operating procedures, all actions derived from inspection plans and pension funds, other than those relating to natural persons, shall be notified when communication is performed before the entity corresponding Manager.

Also, the address General of safe and funds of Inns may order the inspection of them entities depository of funds of inns for check the correct compliance of the regulations relative to them plans and funds of Inns. In this case is will inform of it order of inspection to the ente u organ administrative to which, in its case, corresponds the control and supervision of the entity, can request of that its performance or assistance in them alleged that is precise, being applicable also it willing on it inspection of entities insurance in the cited chapter IV of the title IV of the law 20 / 2015 July 14, management, supervision and solvency of insurance and reinsurance entities."

8. Them paragraphs 4 and 5 of the article 24 are written as follows: «4. them data, documents and information that held in power of the Ministry of economy and competitiveness in the exercise of their functions of management and supervision of them funds of Inns, except them contained in them records administrative of character public, will have character reserved.»

All them people that exercise or have exercised an activity of management and supervision in matter of funds of Inns, as well as those to who the Ministry of economy and competitiveness has entrusted functions with regard to them same, are subject to the duty of secret professional in them same terms and with the same responsibilities and exceptions established in the chapter V of the title IV of the law 20 / 2015 , of 14 of July, of management, supervision and solvency of the entities insurance and reinsurance companies.

5. the General Directorate of insurance and pension funds may order inspection functions transferred to a third party, as well as the marketing of retirement plans, to check if they are developed in accordance with the applicable plans and pension funds. In this case be informed order of inspection to the entity or administrative body which, in his case, corresponds the control and supervision of the service provider, and may request that his performance or assistance in cases that required, to be applicable provisions on the inspection of insurance companies cited chapter IV of title IV of the Act 20/2015 July 14, management, supervision and solvency of insurance and reinsurance entities."

9. Added a new letter d) in paragraph 2 of article 31 with the following wording: «»d) when it may take a year without the open pension fund channeled any other pension or pension funds investment or integrate any pension plan, or when to appreciate the effective lack of activity in the terms that statutorily determined.

10. Paragraphs 2 and 3 of article 34 are written as follows: «2. irrespective of the administrative penalty which may proceed to impose, measures of special control, in accordance with the characteristics of the situation, may consist of:»


1 with respect to the managing bodies may take any of the measures that the insurance companies are regulated in articles 160 and 161 of the Act 20/2015, on July 14, management, supervision and solvency of insurance companies and reinsurers, to the extent that they are applicable, with the peculiarity that the reference that these precepts is the suspension of new insurance by the insurance company or the acceptance of reinsurance and the prohibition of extension of already concluded insurance contracts should be understood as the suspension of the management and administration of new funds of pensions by the managing body.

In addition, may be adopted as the managing body in its functions of administration of the Fund or pension funds, in which case the Committee on control of the Fund shall designate an entity that replaces the previous, previous authorization of the General Directorate of insurance and pension funds, who may proceed to their designation if it did not suspend.

2nd with respect to plans and pension funds may take also the measures regulated in the articles 160 and 161 of the law 20/2015, July 14, management, supervision and solvency of insurance companies and reinsurers, to the extent that they are applicable, with the following peculiarities: that funding or recovery plan must be approved by the Committee on control of pensions or pension fund plan that the suspension of recruitment of new insurance or acceptance of reinsurance and the prohibition of extension of already concluded insurance contracts will be replaced by the suspension measure the integration of new plans of new participants in pension plans, and that the references that these precepts are made to the insurance company or its organs of Administration must be understood made respectively, to plan or pension fund or, as appropriate, to the management or depository entities or commissions for control of the Fund or pension plans.

3rd also, as a further special control measure referred to in previous issues, the General Directorate of insurance and pension funds may agree the intervention fund or pension funds and the management entity to ensure correct compliance in accordance with that established in article 163 of law 20/2015, July 14 management, supervision and solvency of insurance and reinsurance entities.

3. in everything else, shall apply in respect of special control measures to adopt provisions in articles 164 and 165 of the Act 20/2015, on July 14, management, supervision and solvency of insurance companies and reinsurers on administrative procedure of adoption of temporary replacement of the administrative bodies and special control measures on management entities and plans and pension funds , but understanding made the Commission of control or, where appropriate, to the managing body references to the organs of administration of the insurance entity, when measures are so on plans and pension funds.

The judge who declared bankrupt to a managing body or depositary of pension funds will proceed immediately to the notification of the decision to the General Directorate of insurance and pension funds. The latter may ask judges for the contests information about the State and evolution of the bankruptcy proceedings affecting pension funds management and depository institutions.»

Eleven. The article 36 is worded as follows: «article 36.» Administrative sanctions.

1 the entities and persons referred to in paragraph 1 of article 35 of this law, except those referred to in paragraphs 2, 3 and 4 following, shall apply to administrative sanctions provided for in articles 198, 199 and 200 of the law 20/2015, July 14, of management, supervision and solvency of insurance and reinsurance entities , while, them of suspension of the authorization administrative effective is refer to the exercise of activity as Manager or depository of any fund of inns or to the habilitation to be promoter of plans of Inns of the system individual. (In it fine by infringement very serious planned in the letter c) of the article 198 of the law 20 / 2015, of 14 of July, of management, supervision and solvency of them entities insurance and reinsurance, is means by volume of business them contributions to plans of Inns of the last exercise closed with prior to the Commission of the infringement. For this purpose, the following contributions are counted: in the case of management and depository institutions, all contributions to pension under his management and custody, respectively; in the case of promoters of plans other than management and depository institutions, all of the contributions to the pension plans of those who are promoters; in the case of persons or entities in which has been delegated functions, all of the contributions to pension plans belonging to pension funds that affect this delegation; and in case of liquidators different entities managing or depository, contributions to pension plans all assigned to pension funds settlement affects that.

2 expert Actuaries and the entities in which to develop its activity, for their actions in relation to plans and pension funds, will be punished by the Commission of very serious offences with one of the following sanctions: prohibition of their opinions on the matter by a period not exceeding ten years or less than five or fine amounting from EUR 150.253,02 to EUR 300,506.05. By the Commission of serious offences shall be liable to Actuaries one of the following sanctions: prohibition to issue opinions on the subject over a period of up to five years or a fine amounting from 30.050,61 euros to 150.253,02 euros. The sanction of fines, which can reach up to the amount of 30.050,61 euros shall be imposed to the Clerk by the Commission of minor offences. If the clerk acts on behalf of a company, the same penalties shall apply, in addition, to that society.

3 shall apply to the charges of administration and management of the concerned entities in the paragraph 1 of article 35 of this law, except to those who develop their activity in trading entities, the liability regime governing articles 191, 202, 203 and 204 of the Act 20/2015 for the address of insurance companies or management charges (, July 14, management, supervision and solvency of insurance companies and reinsurance companies, even though the disqualification for office of administration or direction referred to in the letter to) Article 202 will be it, as appropriate, in any management body or depositary, any entity in which Actuaries to develop its activity, or, finally, in any Committee or Subcommittee of control plans and pension funds.

Also will apply the regime of articles 191, 202, 203 and 204 of the Act 20/2015, 14 July, management, supervision and solvency of insurance companies and reinsurance companies to the sponsors of retirement plans and administration charges, and the entities in which has been delegated functions of the managing or depository.

In these cases the disqualification will come, depending on the case, to exercise charges of administration and management in these institutions for the exercise of functions and powers relating to plans and pension funds.

4 shall apply administrative sanctions provided for in the articles 56.1, letters b), c) and (d)); 56.2 and 56.3 Law 26/2006, mediation of insurance and private reinsurance, to persons or entities, distributors, even though the temporary suspension is understood to refer to the exercise of the activity of commercialization of pension plans.

(Likewise, shall apply administrative sanctions provided for in the articles 57.3, letters b) and (c)), and 57.4 of the Law 26/2006, mediation of insurance and private reinsurance, commercial entities and administration charges. In these cases, the temporary suspension will come, as the case may be, to exercise charges of administration and management in these institutions for the exercise of functions and powers relating to plans and pension funds.

The sanctions referred to in the preceding paragraphs shall be imposed in the terms indicated in the aforementioned articles 56 and 57.

5. the non-observance by the shareholder of the contribution limit laid down in paragraph 3 of article 5, except that the excess of such limit be removed before June 30 of the following year, shall be punished with a fine of up to 50 percent of such excess, without prejudice to the immediate removal of cited excess plan or corresponding pension plans. This sanction will be imposed, however, who made the contribution, whether or not participate, even though the shareholder will be exonerated when it had been made without his knowledge.


6. for the purposes of the exercise of the powers to impose penalties referred to in this article and the previous one, they shall apply the standards contained in articles 197, 201 and 205-213, both inclusive, of the Act 20/2015, of 14 July, management, supervision and solvency of insurance and reinsurance entities.

When the offender is a credit institution or entity or person were transferred to which or who exercises as marketer of pension, or charges of administration and management of the above plans, for the imposition of the sanction will be mandatory the report body or administrative body which corresponds the control and supervision of these entities or persons.

7. persons or entities, as well as who in law or in fact exercising administration charges or address in them, which develop the own activity of the funds of pension or pension funds managing bodies without the mandatory administrative authorization or using the denominations 'pension plan', 'pension fund', 'institution Manager of pension funds' or 'pension funds depository institution' «, not so, they shall be punished pursuant to the provisions of article 208 of the Act 20/2015, on July 14, management, supervision and solvency of insurance and reinsurance entities.»

12. Article 46 is worded as follows: «article 46. Representatives in Spain of the funds of pension of employment of others States members.

Pension funds domiciled in other Member States wishing to develop employment pension plans subject to the Spanish law in Spain will be obliged to appoint a representative, she established, with the following powers legal person or person with residence in Spain: to) address claims that control committees, participants and beneficiaries of the plans subject to Spanish legislation attached to the bottom. For this purpose, must have powers enough to represent to the background of Inns, even to order the manure of benefits.

(b) represent the Pension Fund before the Spanish judicial and administrative authorities in all matters relating to the development of plans and the activities of the Fund in Spain.

The Minister of economy and competitiveness may issue detailed rules on the content, form and time limits of the obligations laid down in this article."

13. Second the additional provision is worded as follows: «second additional provision. Deadline for resolution of requests for administrative authorization and registration.

Regulated in this law of administrative authorizations and registration requests should be resolved within the three months following the date of filing of the application. The administrative silence shall be positive."

Fourteen. The additional provision octave is worded as follows: «the eighth additional provision. Advance provision of economic rights in supplementary social security systems similar to pension plans.

The economic rights of the insured or mutual benefit derived from premiums, contributions and contributions paid to insured welfare plans, plans of corporate welfare and insurance contracts concluded with mutual social security referred to in article 51 of law 35/2006 of 28 November, personal income tax and partial modification of the laws of corporate non-resident income and on capital, they may be effective early in the exceptional cases of liquidity with advance disposal referred to pension plans in paragraph 8 of article 8 of this law, the terms and conditions set out in this rule and regulations that develop it according to the rules.

In the case of corporate welfare and plans agreed with mutual social security for workers in companies, the early disposition of rights derived from premiums, contributions or contributions made with at least 10 years old will be possible if permitted by the commitment and is expected in the corresponding insurance policy or regulation of performance. In the event that the insurance company has affected investment the right to dispose advance will be valued by the market value of the assigned assets.

In them mutual of forecast Social that, under it established in it available additional fifteenth of the law 30 / 1995, of 8 of November, of management and Supervision of them safe private, act as system alternative to the high in the regime special of it security Social of them workers by has own or autonomous, not is may make effective them rights economic of them products or safe used to meet with such function alternative in them alleged of «liquidity provided in those paragraphs first and second of the paragraph 8 of the article 8 of this law.»

15. Adds a transitional provision new eighth with the following wording: «eighth transitory provision. Funds of Inns open existing with prior to 1 of January of 2016.

«Them funds of Inns of employment or personal registered in the registration administrative of funds of Inns that, to 31 of December of 2015, come operating as funds of Inns open may continue such activity, as well as follow applying his regime previous of composition of the Commission of control of the Fund as keep plans of Inns directly integrated.»

Fifth final provision. Modification of the law 22 / 2003, of 9 of July, bankruptcy.

Law 22/2003 of 9 July, amending bankruptcy, in the following terms: one. A new paragraph shall be added to article 233.

'5. in the case of insurance companies, the designated mediator shall be the Consorcio de Compensación de Seguros'.

Two. «Special scheme applicable to credit institutions, investment firms and insurance companies», the second additional provision gives new wording to section 2.h): «h) titles VI and VII of the Act 20/2015, on July 14, management, supervision and solvency of insurance and reinsurance companies;» and the text of the Legal Statute of the consortium of insurance compensation, approved by Royal Legislative Decree 7/2004 of 29 October.»

Sixth final provision. Modification of the text revised regulatory law of local finances, approved by the Royal Decree 2/2004, of 5 March.

A new seventeenth additional provision is added to the consolidated text of the Act regulating local treasuries, approved by Royal Legislative Decree 2/2004, of March 5, in the terms indicated below: «seventeenth additional provision. Obtaining information for the purpose of the settlement and collection of fees for the maintenance of the service of prevention and extinguishing of fires and the special contributions for the establishment or expansion of firefighting services.

Local authorities collect insurance institutions the information necessary for the settlement and collection of fees for the provision of the service for the prevention and extinction of fire and the special contributions for the establishment or expansion of services of firefighting, in accordance with the procedure established in the fourteenth additional provision of law 20/2015 July 14, management, supervision and solvency of insurance and reinsurance companies.»

Seventh final disposition. Modification of the revised text of the law on the income of non-resident tax, approved by Royal Legislative Decree 5/2004, of 5 March.

With effect from January 1, 2016, amending the letter e) of paragraph 1 of article 31 of the consolidated text of the law on the income of non-resident tax approved by Royal Legislative Decree 5/2004, of 5 March, which is worded in the following way: «e) the insurance entities domiciled in another Member State of the European economic area that operate in Spain of free provision of services «, in connection with operations carried out in Spain.»

Disposal the eighth. Modification of the text of the Legal Statute of the consortium of insurance compensation, approved by Royal Legislative Decree 7/2004 of 29 October.

Amending the text of the Legal Statute of the consortium of insurance compensation, approved by Royal Legislative Decree 7/2004, of 29 October, in the following terms: one. Paragraph 1 of article 6 is worded as follows: ' 1. Consortium, extraordinary risk, shall indemnify, in the way established in this Legal status, in regime of compensation, losses arising from extraordinary events occurring in Spain and which affect risks therein situated.»

Personal damage resulting from extraordinary events abroad when the insured's policy has its habitual residence in Spain are also compensable by the Consortium.


To these effects, will be losses them damage direct in the people and in them goods, as well as, in them terms and with them limits that regulations is determined, the losses pecuniary as consequence of those. Shall be understood also in terms to be determined by regulation, by extraordinary events: to) the following phenomena of nature: earthquakes and tsunamis, extraordinary floods, volcanic eruptions, atypical cyclonic storm and falls of sidereal bodies and meteorites.

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

(c) facts or actions of the armed forces or forces and security bodies in peacetime."

Two. The letter b) of article 7 is worded as follows: «b) so refers to insurance of things, the classes of land vehicles, railway vehicles, fire and natural elements, other damage to property and pecuniary loss varied, as well as combined modalities of these, or when engaged in a complementary manner.» Also in the field of civil liability in motor land vehicles.

However, compulsory surcharge only in the field of motor land vehicles liability, if in addition to the mandatory subscription of automobile liability insurance coverage had contracted voluntary civil liability insurance or insurance of damage in connection with the same motor vehicle.»

3. Paragraph 5 of article 8 is worded as follows: ' 5. insurance against damage and liability on vehicles in terrestrial automobiles, the Ministry of economy and competitiveness, on a proposal from the Consortium, may fix a franchise to the insured for cases in that the Consortium has obligation to compensate. "

Four. Article 14 is worded as follows: «article 14. In connection with the liquidation of insurance companies.

1. the Consortium will assume the condition of liquidator of them entities insurance Spanish indicated in the article 27.1 of it law 20 / 2015, of 14 of July, of management, supervision and solvency of entities insurance and reinsurance, subject to the competition of execution of the State or of them communities autonomous, when you entrusts its liquidation the Minister of economy and competitiveness or the organ competent of the respective community autonomous.

You will be assigned the liquidation in the following cases: to) simultaneously with the dissolution of the insurance company if it had proceeded to it administratively.

(b) If an entity is dissolved, this had not proceeded to the appointment of the liquidators before the fifteen days following the dissolution, or when the appointment within that period it would be without complying with the legal and statutory requirements.

(c) when the liquidators fail to comply with the rules which for the protection of insured persons are established in the Act 20/2015, on July 14, management, supervision and solvency of insurance companies and reinsurers, which govern the liquidation or hinder it. Also when, for delaying the liquidation or because circumstances that thus do so, Administration understand that the settlement should be charged to the Consortium. In the case that the liquidation be intervened, charged to the Consortium will remember prior report of the external auditor.

(d) by acceptance of the request of the own insurance company, whether to appreciate cause.

2 correspond to the Consortium, in the terms provided in the bankruptcy legislation, the status and functions of the insolvency administration in competition proceedings who is under any insurance company, and this required the acceptance of the cargo. His performance in these procedures will be unpaid.

The consortium shall communicate to the Court the identity of the natural person who is to represent you in the exercise of his office, to which will be of application the rules contained in article 28 of the law 22/2003, of July 9, bankruptcy, with the exceptions that the settle.

Also perform the functions of mediator bankruptcy when it requested an insurance entity pursuant to article 5 bis of the law 22/2003, of July 9, bankruptcy.

3. where necessary, it leads to effect settlement separated from goods referred to in article 175 of the Act 20/2015, on July 14, management, supervision and solvency of insurance and reinsurance companies.

4. in the terms to be determined by regulation and prior agreement of the General Directorate of insurance and pension funds, the consortium may carry out activities of information to creditors by contract of insurance in relation to the process of liquidation of an insurance company domiciled in another Member State of the European Union in which exclusively affect contracts of insurance that such entity would have held in Spain in regime of right of establishment or on free provision of services.

The Consortium will sign agreements with administrative or judicial bodies which, pursuant to the legislation of the Member State of origin, it had entrusted the liquidation of the entity, with the purpose of facilitating the creditors by insurance contract resident in Spain the filing and processing of their claims before the winding-up bodies.

The activities referred to in this paragraph does not imply the assumption by the consortium of functions of liquidation of insurance companies of other States members of the European Union or its branches in Spain, nor, therefore, will entail payments by reason of a contract of insurance or advances on account of such payments, not resulting from application «, in any case, it arranged in them articles 179 to 185 of the law 20 / 2015, of 14 of July, of management, supervision and solvency of entities insurance and reinsurance.»

5. Is modifies the wording of those paragraphs 2 and 4 and is adds a new paragraph 7 to the article 18: «2.» All charges in favour of the Consortium will be compulsorily collected by the insurance entities together with their premiums.

In the case of fractionation of raw, entities may choose to raise these charges with the first installment payment that is made, or by doing so as they expire the corresponding fractions of premium, while latter types should apply on the fractions of the surcharge by fractionation that, for each possible frequency, focus on the rates of charges in favour of the Consortium , or in the case of the surcharge to finance the functions of liquidation of insurance companies, referred to in paragraph 3.

The choice of the option to split the surcharges in favor of the Consortium as they expire the corresponding fractions of premium shall be recorded in the technical bases of the entities, communicate to the Consortium and applied systematically in the field or risk concerned, except for duly justified cause.»

«4. the insurance entities will be obliged, at the time of filing of charges collected on account of this, to practice a settlement, and enter the amount with the periodicity and subject to rules to be determined by regulation to the Consortium.

Reliable communication prior to the Consortium, entities may settle charges according to the premiums issued, notwithstanding periodic adjustments that apply. The election of this option should be applied to all portfolios of policies of the entity and by calendar years.

«Both the returns filed by the General Directorate of insurance and pension funds derived from records of inspection as those others who do not have designated term of income by their specific rules must be paid within 15 days following the day in which took place the notice of liquidation to the insurance company.»

«7. when them income by surcharges made to the Consortium are be undue in all or partly, is agreed the return to application of them interested, without prejudice of them checks and request of information that come, in the term of fifteen days from the complete presentation of the documentation supporting of the error warned.»

6. Paragraph 2 of article 19 is worded as follows: ' 2. the General direction of insurance and pension funds, through the inspection of State insurance and subject to inspection plans approved a proposal from the Consortium, will inspect the companies, whether legal entities or natural persons, which raised fees and premiums on behalf of the Consortium.»

The costs of personal media and materials to this inspection service take place shall be borne by the Consortium, formalizing, for this purpose, the appropriate agreement with the General Directorate of insurance and pension funds, which will determine the compensation payable to the organ whose livelihoods have been assigned to this end, to meet those costs.»

7. Adds a transitional provision that is worded as follows: «transitory provision. Adaptation of existing insurance contracts amendment operated in articles 7B) and 8.5 of the revised text of the Legal Statute of the insurance compensation Consortium.


Contracts of insurance in force must adapt to the modification introduced by the final disposition octave of the law of management, supervision and solvency of insurance companies and reinsurers, in articles 7B) and 8.5 of the revised text of the Legal Statute of the consortium of insurance compensation, approved by Royal Legislative Decree 7/2004 of 29 October , before the first renewal which takes place from the six months following the entry into force of this law. The insurance contracts newly issued being held from July 1, 2016 shall be adapted to it.»

Ninth final disposition. Modification of the Royal Legislative Decree 8/2004, of 29 October, which approves the revised text of the Act on civil liability and insurance in the circulation of motor vehicles.

Article 8 is worded as follows: «article 8. Direct compensation agreements. Friendly statement by accident. Health care for injured of traffic agreements.

1. to expedite the compensation within the scope of the damage caused during the use and circulation of motor vehicles, the insurance company must adhere to the conventions of direct compensation among insurance companies for the settlement of claims for property damage.

2. for the purposes of it willing in the paragraph previous, the insurance will facilitate copies of it called statement friendly of accident that must use the driver for the statement of them claims to your insurance.

3. to expedite the assistance to them injured of traffic, the insurer may adhere is to them conventions sectoral of assistance health for injured of traffic as well as to conventions of compensation direct of damage personal.

4. for these purposes, such agreements must provide for equivalent and non-discriminatory conditions for all insurance entities, while they may be imposed restrictions which are not indispensable to the attainment of that goal.»

Available finish tenth. Modification of the Law 26 / 2006, of 17 of July, of mediation of insurance and reinsurance private.

Is modifies Law 26 / 2006, of 17 of July, of mediation of insurance and reinsurance private in the following terms: one. Paragraph 1 of article 6, is worded as follows: ' 1. the mediators of insurance will provide truthful information and sufficient in the promotion, offer and signing of insurance contracts and, in general, in all its activity of advice, all in the terms established by the Minister of economy and competitiveness.»

Two. Article 8 is worded as follows: «article 8. The external partners of the mediators of insurance: 1. insurance mediators may conclude commercial contracts with external partners that collaborate with them in the distribution of insurance products on behalf of such mediators acting under its responsibility and address, on the terms that the parties may freely agree.

The General Directorate of insurance and pension funds will establish general guidelines and basic principles that will meet supporters in terms of their content, organization and implementation training programs.

2 external partners will not have the status of mediators of insurance, and will develop its activity under direction and accountability regime of the financial capacity of the mediator of insurance for that Act.

Employees must identify themselves as such and also indicate the identity of the mediator on behalf of that Act. Under the commercial agreement with this, the information that must be provided to the insurance policyholder will be all or part of the established in article 42, unless in any case the policyholder cease such complete information.

3. the mediators of insurance shall keep a book record which noted the personal identification data of the external partners, with an indication of the date of signup and, where appropriate, the low, which shall be subject to the control of the General Directorate of insurance and pension funds.

4. an external collaborator of a mediator of insurances, natural or legal person, it may not work with other mediators of insurance of different class of those who hired him in the first place. «Also, if is collaborator external of an agent exclusive, only you can collaborate with others agents exclusive of the same entity insurance.»

3. Paragraph 2 of article 15 is worded as follows: ' 2. the data contained in the registration of exclusive insurance agents must be updated and will be sent by each insurance company to the General Directorate of insurance and pension funds for via telematics for enrollment within a maximum period of two months in the administrative register provided for in article 52 of this law.» Exclusive insurance agent may not start its activity until the General Directorate of insurance and pension funds entered in that register.»

Four. Paragraph 4 of article 21 and paragraph 3.e) are written as follows: «e) linked insurance agents shall undertake to provide a training program for employees and external collaborators.

Also, the insurance entities shall take appropriate measures for the training of their agents linked insurance and persons that integrate the steering mechanism provided for in the second paragraph of the letter b) of this section in mediated by these insurance products.

The documentation for the training programmes will be available to the General Directorate of insurance and pension funds, which may require modifications that may be necessary are carried out.

The General Directorate of insurance and pension funds shall lay down general guidelines and basic principles that will fulfill programs of training of insurance related in terms of their content, organization and execution agents.'

«4. the application for registration as a tied insurance agent you will be directed to the General Directorate of insurance and pension funds and shall be accompanied by documents showing compliance with the requirements referred to in paragraph 3. The maximum period in which the express resolution of the request should be notified shall be three months from the date of filing of the application. The registration shall specify the insurance entities for which the tied insurance agent can perform the activity of insurance mediation. The application for registration will be refused when not certifying the fulfilment of the requirements for the award.»

5. (Paragraphs 1.c), 1.g) and 2 of article 27 are drafted as follows: «1.c) in insurance brokerage companies, at least half of the administrators must have adequate experience to exercise management functions. ' «» 1.g) present a programme of activities in which you must indicate, at least, the classes of insurance and the kind of risks that is planned to mediate, the guiding principles and their territorial scope; the personal media and materials that will be available for compliance with this programme and the mechanisms for the settlement of disputes for complaints and claims of the clientele.

You must, also, include a commitment to have a training programme for those who as employees or external collaborators that have to assume functions that involve a more direct relationship with possible insurance and insured policyholders. For this purpose, the General Directorate of insurance and pension funds shall lay down general guidelines and basic principles that will comply with the training programmes for employees and external collaborators of the brokers in terms of their content, organization and execution.'

'2. the application for registration as a broker of insurance shall apply to the General Directorate of insurance and pension funds and shall be accompanied by documents showing compliance with the requirements referred to in the preceding paragraph. The maximum period in which the express resolution of the request should be notified shall be three months from the date of filing of the application for registration. The application for registration will be refused when not certifying the fulfilment of the requirements for the award.»

6. He paragraph 2 of the article 28 is drafted as follows: «2. it address General of safe and funds of inns will have of a term of three months, starting from the presentation of the information, for oppose is to it acquisition of it participation significant or of each one of their increments that match or exceed them limits of the 20 percent» , 30 percent or 50 percent and also when by virtue of the acquisition is could get to control the society of brokerage. The opposition must found is in that who intends to acquire it not brings them requirements of repute commercial and professional in them terms defined in this law or incurs in any of the prohibitions of this law. If the address General of insurance and funds of Inns not is pronounced in the term of three months, may proceed is to the acquisition or increase of participation. If such a Directorate-General expresses its conformity to the acquisition or increase of meaningful participation, you can set a maximum time limit other than the release to make the acquisition.»

7. Paragraphs 2 and 4 of article 39 shall be drawn up as follows:


«2. the General Directorate of insurance and pension funds will establish the requirements and the basic principles that will have to comply with the training courses on financial matters and private insurance in terms of its content, organisation and implementation, which must be programmed according to the degree and previous knowledge attested by attendees.

The natural or legal persons wishing to organize the courses referred to in the preceding paragraph, must request it previously to the General Directorate of insurance and pension funds. Regulations will be developed the requirements for the authorisation for the organisation of training courses. Organizers of courses will issue certificates evidencing the overcoming of them.»

«4. the authorization granted to training centers by any competent authority will have national efficiency. «He holder of the authorization communicated to the authority competent of its community autonomous or to it address General of safe and funds of Inns, according to appropriate, the opening of new centers of training.»

8. He paragraph 4 of the article 42 is drafted as follows: «4. He advice with arrangement to the obligation of carry to out an analysis objective to are forced them runners of safe is will facilitate on the base of the analysis of a number enough of contracts of safe offered in the market in them risks object of coverage, so can formulate a recommendation» subject to professional criteria, regarding the insurance contract that would be suitable to the needs of the customer."

9. He paragraph 1 of the article 52, is drafted as follows: «1. the address General of safe and funds of inns will take the record administrative special of mediators of safe, runners of reinsurance and of its high charges, in which must sign is, with character prior to the home of their activities, them mediators of safe and them runners of reinsurance resident or domiciled in Spain subject to this law.» In the case of them people legal, also, is registered to them administrators and to them people that form part of the address, responsible of the activities of mediation.

Also is will take reason of the mediators of safe and of reinsurance domiciled in other States members of the space economic European that act in regime of right of establishment or in regime of free provision of services.

Registering will take equally reason of the distribution contracts referred to in article 4.1 of this Act.

This administrative record will express the circumstances to be determined by regulation and access to its content will be general and free."

10. The letter to) of paragraph 1 of the fourth additional provision, is worded as follows: «a) registration in the special administrative register of mediators of insurance brokers of reinsurance and its senior officials, persons who exercise as insurance agents or operators of bancassurance, whether exclusive or linked, such as insurance brokers and reinsurance brokers.»

Eleven. References to «external auxiliary», «Advisor Assistant» or «auxiliary» shall be deemed performed to the «external collaborator», in the following articles and provisions: 10.4, 16.1, 17.2, 18, 19 and 21.3. e), 23.2, 24, 25.1 and 4, 27.1. g), 30.2 and 31.2. b), 53, 55.2. u), 62.1. d), 62.2, fourth additional provisions and undecima.1.

Eleventh final disposition. Modification of law 35/2006 of 28 November, personal income tax and partial modification of the tax laws tax, non-resident income and on capital.

With effect from January 1, 2016, the following changes are introduced in law 35/2006 of 28 November, personal income tax and partial modification of the tax laws tax, non-resident income and on capital: one. Amending paragraph 2 of article 99, which is drawn up in the following way: «2. entities and legal entities, including entities with income allocation, which satisfied or paid income subject to this tax, will be required to practice retention and income into account, in respect of payment of the corresponding to the percipient physical personal income tax» in the amount to be determined according to the rules and to enter the amount in the Treasury in cases and in the manner laid down. Will be subject to them same obligations them contributing by this tax that exercise activities economic respect to them incomes that meet or paid in the exercise of such activities, as well as them people physical, legal and others entities not resident in territory Spanish, that operate in it through establishment permanent, or without establishment permanent respect to them yields of the work that meet as well as respect of other income subject to retention or income account which constitute deductible expense for the obtaining of income referred to in paragraph 2 of article 24 of the revised text of the law on the income of non-resident tax.

When a resident or non-resident entity will meet or pay yields of the working taxpayers who provide their services to a resident entity linked with that in the terms provided for in article 16 of the consolidated text of the tax law on societies or to a permanent establishment located in Spanish territory, the entity or the permanent establishment in which the taxpayer provision of services It should be retained or income account.

The insurance entities domiciled in another Member State of the European economic area that operate in Spain under freedom to provide services must practice retention and income into account in connection with operations carried out in Spain.

Pension funds domiciled in another Member State of the European Union which develop employment pension plans subject to the Spanish law, subject to the provisions of Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003, on the activities and supervision of employment pension funds in Spain or , in your case, its managing bodies, must practice retention and income into account in connection with operations carried out in Spain.

In any case they will be required to practice retention or deposit to account the diplomatic missions or consular offices in Spain of foreign States. "

Two. (G letters are changed) and h) of paragraph 2 of article 105, which are worded as follows: «g) for the insurance entities domiciled in another Member State of the European economic area that operate in Spain of free provision of services, in connection with operations carried out in Spain.»

(h) for institutions provided for in the penultimate paragraph of paragraph 2 of article 99 of this law, in connection with operations carried out in Spain.»

Twelfth final provision. Modification of law 4/2014, from April 1, basic of Chambers of Commerce, industry, services and navigation officers.

One. Amending paragraph 3 of article 6, with the following text: "3. the tutelante Administration will regulate the cases and the procedure for the creation, integration, merger, dissolution, liquidation and destination of the heritage of the official Chambers of Commerce, industry, services and navigation and the Councils of cameras."

Two. Added a new article 38, with the following text: "article 38. Feasibility and dissolution by economic non-viability plan.

1 when the cameras that are subject to the supervision of the General Administration of the State incur negative results of exploitation in two consecutive accounting years, affected camera must put it to the attention of the Trusteeship Administration within a maximum of one month since this situation to emerge.

The communication shall be accompanied by a viability plan, audited and approved by the plenary, which describe the actions to be carried out for the correction of the imbalance within the period deemed necessary and, in any case, in a maximum of two accounting exercises. You will also accompany an inventory, balance, the report of the audit carried out, and how much other documentation deemed necessary to assess the economic situation of the Chamber and the plan is presented.

2 presented the viability plan, the Trusteeship Administration may authorize it, modify it or determine any other action deemed appropriate.

3. when circumstances objective to manifestly impossible to remedy the situation of economic non-viability through the submission of a plan or when such a plan will fail to fulfil, the Trusteeship Administration may proceed to suspension and dissolution of the organs of Government in accordance with article 37, or determine the extinction and liquidation of the Chamber.

4. in the event that extinction, from this moment, you remember the camera cannot be any legal act, except those that are strictly necessary to ensure the effectiveness of its liquidation. Agreed settlement, the Chamber shall submit to the Trusteeship Administration a plan of liquidation, which must be authorized by the administration.


When in it decision of extinction is agreed it opening of the delegation by the camera official of trade, industry, services and navigation of Spain, for the opening of such delegation, the camera of Spain may formulate a proposed for the transmission of active or units productive. If it camera accept the proposal, the terms of this is incorporated in the plan of liquidation.

The Trusteeship Administration will oversee the fulfilment of the settlement plan. After the liquidation of the Chamber, there will be automatic extinction.

In no case can be assumed or arise from the process of liquidation and extinction, any obligation for the Trusteeship Administration.

5. in the case of cameras that are supervised by the autonomous communities they conform to your specific legislation.»

Thirteenth final disposition. Modification of law 27/2014 November 27, from corporate income tax.

With effect from January 1, 2016, amending paragraph 1 of article 128 of the Act 27/2014, November 27, the corporation tax, which is drawn up in the following way: «article 128. Withholdings and payments on account.

1. the authorities, including the communities of goods and owners, who will meet or paid income subject to this tax, shall be obliged to withhold or to make payments on account in respect of payment, the amount resulting from applying the retention percentages indicated in paragraph 6 of this article to base retention determined by regulation , and to enter your amount in the Treasury in the cases and forms that is established.

They will also be required to retain and enter natural persons with respect to pensions that meet or paid in the course of their economic activities, as well as physical persons, legal and other entities not resident in Spanish territory which operate on it through permanent establishment.

In addition, they will be required to practice retention or deposit to account the insurance entities domiciled in another Member State of the European economic area that operate in Spain of free provision of services, in connection with operations carried out in Spain.»

Available finish fourteenth. Skill-related title.

This law is dictates to the amparo of the article 149.1.11. th and 13th of the Constitution that attributed to the State them powers to establish them bases of the management of them safe and them bases and coordination of it planning general of it activity economic, respectively. Excepted from the above the following precepts: to) articles 16, 17, 18, 40, 119, 120, 121, 123, 126 and 210 to 213, which will not have basic character.

(b) the article 130 that is dictates to the amparo of the article 149.1.3. ª of the Constitution, that attributes to the State the competition exclusive in matter of relations international.

(c) articles 9, 10, 11, 12, 13, 24, 27, 28, 29, 30, 31, 33, 34, 36, 37, chapter II and chapter IV of title III, the articles 89.3, 96, 98.1, and 2, 165.4, 168, 172, 173, 175, 179 to the 189 and annex, which are issued on the basis of article 149.1.6. ª of the Constitution, which attributes to the State competition in the field of commercial law.

(d) Article 97 which is issued on the basis of article 149.1.6. ª of the Constitution, which attributes to the State competition in procedural legislation.

(e) articles 53 and 59, which are issued on the basis of article 149.1.14. ª of the Constitution, which attributes to the State the competence in the field of general finance.

(f) the article 167.2 are issued on the basis of article 149.1.8. ª of the Constitution, which attributes to the State competition in civil legislation.

15th final disposition. Incorporation of European Union law.

This law joined partially into Spanish law directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009, the life insurance, access to the business of insurance and reinsurance and its exercise (Solvency II), amended by Directive 2014/51/EU of the European Parliament and the Council on April 16, 2014 , by which amending directives 2003/71/EC and 2009/138/EC and regulations (EC) No. 1060 / 2009, (EU) No. 1094 / 2010 and (EU) No. 1095 / 2010 in regards to the powers of the European supervisory authority (European insurance and retirement pension authority) and the European supervisory authority (European Securities and markets authority) (Omnibus II).

Also joins the directive 2011/89/EU of the European Parliament and of the Council of 16 December 2011 why amending directives 98/78/EC, 2002/67/EC, 2006/48/EC and 2009/138/EC, with regard to the supplementary supervision of financial institutions that are part of a financial conglomerate.

Sixteenth final disposition. Rules of procedures regulated by this law.

Them procedures regulated in this law is governed, in first term, by them precepts contained in it and in their standards of development and, secondarily, by them of the law 30 / 1992, of 26 of November, of regime legal of them administrations public and of the procedure administrative common and standards complementary.

17th final disposition. Regulatory authority.

1 it is up to the Government, on the proposal of the Minister of economy and competitiveness, and after hearing of the Advisory Board of insurance and pension funds, to develop this law in matters that are expressly attributed to the regulation, as well as, in general, dominion over all those susceptible to regulatory development that is necessary for its proper implementation, through the adoption of its rules of procedure and subsequent amendments that may be necessary.

2 corresponds to the Minister of economy and competitiveness, after hearing of the Advisory Board of insurance and pension funds, to develop this law in matters specifically attributed to the statutory power of the Minister and also develop its own rules insofar as necessary and so provides the.

The regulatory development of the precepts relating to mutual social welfare organizations shall be made by the Government by means of a specific regulation for these mutuals.

18th final disposition. Measure transient on the risk-free interest rates.

Prior authorization of it address General of safe and funds of Inns, the entity insurance or reinsurance may apply an adjustment transitional to it structure temporary relevant of types of interest without risk with regard to them obligations admissible in matter of insurance and reinsurance, in them terms and conditions that is determined regulations.

19th final disposition. Transitional measure concerning technical provisions.

Prior authorization of the General Directorate of insurance and pension funds, the insurance or reinsurance entity may apply a temporary deduction to technical provisions, under the terms and conditions to be determined by regulation.

20th final disposition. Other transitional measures.

Regulations shall be determined the terms and conditions in accordance with which insurance and reinsurance entities may: 1. present and disseminate the information it referred to articles 80 and 114, with annual or lower frequency.

2. apply a transitional regime for the classification of basic own funds at levels.

3. apply the requirements referred to in article 79, to certain financial instruments issued before January 1, 2011.

4. apply a transitional regime to the submodules of market, concentration and spreads risk and equity risk sub-module.

5. to request the approval of an internal model of group when there is a part of the group with a substantially different risk profile.

6 managing its portfolio of contracts to put an end to their activities.

Twenty first final provision. Entry in force.

1. this law shall enter into force on January 1, 2016.

2. However, the thirteenth transitional provision and the sixteenth additional provision shall enter into force the day following its publication. The provisions transitional fourth and tenth will enter in force the 1 of September of 2015. The disposal end ninth will enter in force the 1 of July of 2016.

Therefore, command to all them Spanish, particular and authorities, that observe and do save this law.

Madrid, 14 of July of 2015.

PHILIP R.

(The President of the Government, MARIANO RAJOY BREY annex Ramos of safe to) Ramos of safe different of the insurance of life and risks accessories.

(to) in the safe direct different of the safe of life the classification of those risks by ramos is adjusted to it following: 1. accidents.

The benefits in this bouquet can be: to both elevation, of compensation, mixed of both and of coverage of occupants of vehicles.

2. disease (including the assistance health and the dependency).

Them benefits in this bouquet can be to both elevation, of repair, well through the refund of them expenses caused, well through the guarantee of the provision of the service, or mixed of both.

3. ground vehicles (not railway).

Includes all damage suffered by land vehicles, whether or not cars, except for the railwaymen.

4. vehicles railway.

5. vehicles air.

6. vehicles marine, lacustrine and fluvial.

7. goods transported (covered them luggage and other goods carried).


8 fire and natural elements.

Includes all damage suffered by the goods (other than those in classes 3, 4, 5, 6 and 7) caused by fire, explosion, storm, natural elements other than storm, nuclear energy and sinking of land.

9. other damage to property.

Includes all damage suffered by the goods (other than those in classes 3, 4, 5, 6 and 7) due to hail or frost, as well as by theft or other events other than those included in class 8.

10. civil liability in motor land vehicles (including carrier's liability).

11. liability civil in vehicles air (including the liability of the carrier).

12. liability civil in vehicles maritime, Lake and River (including the liability of the carrier).

13. civil liability in general.

Includes all liability different of them mentioned in the ramos 10, 11 and 12.

14. credit.

Includes insolvency general, sale to deadlines, credit to the export, credit mortgage and credit agricultural.

15 suretyship (direct and indirect).

16. various pecuniary losses.

Includes risks of employment, insufficiency of income (general), wrong time, loss of profits, allowance temporary confiscation of the licence driving, persistence of general expenses, unforeseen trading expenses, loss of market value, loss of rents or rents, indirect trading losses other than those previously mentioned, not trade monetary losses and other pecuniary losses.

17. legal defense.

The insurance companies will have to opt for any of the following types of management: a) entrust the management of claims in the field of legal defense to a legally distinct entity, that will be mentioned in the contract. If that entity was linked to another that practice some different life insurance industry, members of the staff of the first dealing with the management of claims or legal advice relating to such management not practise simultaneously the same or similar activity in the second. Persons who perform management of both entities may also be common.

(b) ensure the insurance contract that no member of staff dealing with the management of legal advice concerning the management exercise at the time a similar activity in another class if the insurance company operates in several or to another entity which operate in any branch other than the life and having financial ties with the insurer's legal defense commercial or administrative matter that whether or not specialized in this field.

(c) provide in the contract the right of the secured to trust the defense of their interests, starting from the time in that have right to claim the intervention of the insurance according to it willing in it policy, to a lawyer of his choice.

18. assistance.

Assistance to persons who are in difficulties during travel or absences of his domicile or his place of permanent residence. It will also include assistance to people who are in difficulties in different circumstances, determined by regulation, provided that they are not subject to other classes of insurance coverage.

19 deaths.

It includes operations of insurance that guarantee the provision of funeral services in the case of that death occurs, or secondarily, when no can be the provision, by reason of force majeure or by the service have been done through other means, other than those laid down by the insurance company, to satisfy the legal heirs of the deceased insured the sum insured that you must not exceed the average funeral costs for a death.

The risks included in a bouquet may not be classified in another branch, without prejudice to the provisions regarding accessories risks in section 4.

When authorization is granted simultaneously for several sectors, will be awarded with the following denominations: 1 'Accidents and disease': when the classes 1 and 2 are authorised.

«Car insurance» 2nd: when authorization understand coverage of occupants of vehicles class 1 and classes 3, 7 and 10.

3rd «Maritime and transport insurance»: when authorization understand coverage of occupants of vehicles class 1 and classes 4, 6, 7 and 12.

«Aviation insurance» 4th: when authorization understand coverage of occupants of vehicles class 1 and classes 5, 7 and 11.

5 'Fire and other damage to property': when classes 8 and 9 are authorized.

«Liability» 6: when classes 10, 11, 12 and 13 are authorised.

«Crédito y caución» 7th: when the classes 14 and 15 are authorized.

8th "General insurance": when they are authorized direct insurance other than life insurance branches are listed in this article.

(b) accessories risks.

The insurance company who obtains an authorization for a principal risk belonging to a bunch of different of life insurance or a group of classes may also cover the risks included in another class without obtaining authorization for such risks, provided that the following requirements: 1 which are connected with the principal risk.

2. referring to the object that is covered against the principal risk.

3rd which are covered by the contract that covers the main risk.

4th belonging for authorization in the field to which the accessory risk are not required over previous financial guarantees that for the main, except, as this last requirement, than the accessory risk civil liability coverage does not exceed the limits to be determined by regulation.

When the accessory industry is 2 (illness), this shall not include healthcare benefits or dependent-care benefits.

The risks included in classes 14 (credit), 15 (bond) and 17 (legal expenses), not can be considered accessories of other classes, except class 17 (legal expenses), that, when met the conditions prescribed in the preceding paragraph, may be considered as accessory class 18 (assistance) risk, if the main risk only refers to the assistance provided to people in difficulties on the occasion of travel or absences of the domicile or place of permanent residence , and as accessory risk of class 6 (maritime, fluvial and lacustrine vehicles), when it concerns disputes or risks arising from the use of sea-going vessels or in connection with such use.

(B) field of life and additional risks.

(a) the direct secure envelope life will be included in a single branch, the branch of life, comprising: 1. insurance on the life, both in case of death and survival, or both jointly, included in the income insurance survival; assurance life insurance; insurance of marriage, and birth insurance. It also includes any of these insurance when they are linked to investment funds or other assets referred to in article 73. Also, you can understand dependence insurance.

2 capital redemption operations based on actuarial technique, consisting in obtaining commitments determined in terms of duration and amount in return for single or periodic payments previously set.

3. the operations of collective funds of retirement, understanding as such those involving for the insurance company to manage investments and, in particular, assets covering reserves of entities which provide benefits in the event of death, in the case of life or in the event of termination or reduction of activities. Such operations are also covered when they carry a guarantee of insurance, either conservation of capital or on the perception of a minimum interest.

4. the tontines, understanding as such those that carry with them the establishment of associations that gather participants to capitalize on in common their contributions and to distribute the assets thus constituted between survivors or their heirs.

(b) additional risks.

The institutions authorised to operate in the field of life may cover as a complementary risk falling in class 1 (accidents) and in branch 2 (disease), without obtaining authorization for these sectors, provided that the following requirements: 1 that are connected with the principal risk.

2. referring to the object that is covered against the principal risk.

3rd which are guaranteed in the same contract with this.

4th when the complementary branch 2 (illness), this do not understand healthcare benefits or dependent-care benefits.