Rs 0.961.514 Agreement Of 19 December 1996 On Direct Insurance And Insurance Mediation Between The Swiss Confederation And The Principality Of Liechtenstein (With Annex)

Original Language Title: RS 0.961.514 Accord du 19 décembre 1996 sur l’assurance directe et l’intermédiation en assurance entre la Confédération suisse et la Principauté de Liechtenstein (avec annexe)

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0.961.514 translation direct insurance and insurance mediation agreement between the Swiss Confederation and the Principality of Liechtenstein determined on 19 December 1996 approved by the Federal Assembly on 21 March 1997, Instruments of ratification exchanged on 9 July 1998, entered into force July 9, 1998 (status April 21, 2009) the Swiss federal Council and his Highness Serenissima the Prince Regnant of Liechtenstein Whereas close and good-neighbourly relations that exist between the Switzerland and Liechtenstein;
eager to consolidate economic relations existing in this field between the two sides and promote, in the respect of fair conditions of competition, the harmonious development of these relations, while guaranteeing the protection of policy holders;
given the fact that the Liechtenstein is member of the economic area (EEA) since 1 May 1995 and that its law on the supervision of insurance (Versicherungsaufsichtsgesetz/GAW) entered into force on 1 January 1996;
given the equivalence of law between the Switzerland and Liechtenstein surveillance companies and insurance intermediaries, in view of the provisions of this agreement;
resolved to eliminate obstacles to access to the direct insurance and insurance mediation activities, on a basis of reciprocity and non-discrimination, as well as their exercise on the territory of the Switzerland and the Liechtenstein and thus introduce freedom of establishment and the free provision of services, limited to their two territories;
agreed, in the pursuit of these objectives, to conclude this agreement and have designated plenipotentiaries for this purpose: (follow the names of the Plenipotentiaries) which, after having exchanged their full powers, found in good and due form, have agreed on the following provisions: A. provisions general art. 1Objectif of the agreement this agreement is intended to establish, on a reciprocal basis, the necessary and sufficient conditions for: has) guarantee insurers whose head office is located on the territory of one of the Contracting Parties the freedom of establishment and the free provision of services on the territory of the other Contracting Party etb) allow insurance intermediaries who are registered in the territory of one of the Contracting Parties to exercise their activity on the territory of the other Contracting Party.

New content according to art. 1 HQ. June 20, 2007, approved by the SSA. fed. June 13, 2008 and in force since April 21, 2009 (RO 2007 3767, 2009-2561-2563; FF 2007 8005).

Art. 2Champ of material application this Agreement shall apply to the: a) companies active in the field of direct insurance, whose headquarters is located in the territory of a Contracting Party which are subject, under the legislation internal force in monitoring insurance private; b) intermediate insurance, who are registered on the territory of a Contracting Party and which are subject under legislation internal in force, to the monitoring of insurance intermediaries.

New content according to art. 1 HQ. June 20, 2007, approved by the SSA. fed. June 13, 2008 and in force since April 21, 2009 (RO 2007 3767, 2009-2561-2563; FF 2007 8005).

Art. 3 scope territorial this agreement applies to the territories of the Switzerland and the Liechtenstein.

B. Conditions of access and exercise art. 4 recognition of the equivalence of the Contracting Parties find that their respective companies oversight rights and insurance intermediaries, in view of the provisions of this agreement, contain a regulation equivalent regarding: a) the protection of policy holders; b) approval of direct insurance undertakings and intermediaries of insurance, as well as exercising their activity; c) control exerted by the supervisory authority on the activities of insurance intermediaries and private insurance companies; d) legal measures planned insolvency or breach of rules of law and administrative decisions, as well as for any other irregularities in the exercise of their activities by insurance companies; e) legal measures in the event of breach of the rules of law and administrative decisions, as well as for any other irregularities committed by insurance intermediaries in the exercise of their activities.

This is valid at the time of the signature of this agreement. It is to be reviewed when any changes to domestic law according to the procedure set out in art. 11. new content according to art. 1 HQ. June 20, 2007, approved by the SSA. fed. June 13, 2008 and in force since April 21, 2009 (RO 2007 3767, 2009-2561-2563; FF 2007 8005).
New content according to art. 1 HQ. June 20, 2007, approved by the SSA. fed. June 13, 2008 and in force since April 21, 2009 (RO 2007 3767, 2009-2561-2563; FF 2007 8005).
New content according to art. 1 HQ. June 20, 2007, approved by the SSA. fed. June 13, 2008 and in force since April 21, 2009 (RO 2007 3767, 2009-2561-2563; FF 2007 8005).
Introduced by art. 1 HQ. June 20, 2007, approved by the SSA. fed. June 13, 2008 and in force since April 21, 2009 (RO 2007 3767, 2009-2561-2563; FF 2007 8005).

Art. 5 principle of the headquarters country insurance undertakings which have their head office in the territory of a Contracting Party may exercise their activity on the territory of the other Contracting Party through an establishment or free provision of services regime.
Insurance intermediaries who are registered on the territory of a Contracting Party may exercise their activity on the territory of the other Contracting Party.
Arrangements to supplement internal law are contained in the annex.

Introduced by art. 1 HQ. June 20, 2007, approved by the SSA. fed. June 13, 2008 and in force since April 21, 2009 (RO 2007 3767, 2009-2561-2563; FF 2007 8005).
Formerly al. 2 art. 6 application of the internal law in force in each Contracting Party is applicable to the points that are not governed by this agreement as well as the issues that fall under points governed by this agreement, insofar as they are not regulated by this agreement.

C. implementation of the agreement art. 7 cooperation between supervisory authorities the Contracting Parties insurance supervisory authorities work directly in their tasks of monitoring.
They shall communicate all documents and information relevant to the exercise of supervision and commit themselves not to use the information so exchanged to accomplish their mission of monitoring.
The supervisory authorities are not required to provide information that would reveal a trade secret of the insurance undertakings concerned, or whose disclosure would be contrary to public order.
The al. 1 3 shall apply by analogy to the supervision of insurance intermediaries.

Introduced by art. 1 HQ. June 20, 2007, approved by the SSA. fed. June 13, 2008 and in force since April 21, 2009 (RO 2007 3767, 2009-2561-2563; FF 2007 8005).

Art. 8 joint commission shall be set up a joint commission, consisting of representatives of the Contracting Parties, which is responsible for the application of the agreement and, in the cases provided for therein, to make decisions. The commission is a common agreement.
For the purposes of the execution of the agreement, the Contracting Parties are to exchange information and, at the request of one of them, consult each other within the Joint Committee.
The Joint Committee shall establish its internal rules.
The joint commission Presidency is held in turn by each of the Contracting Parties in a manner to be provided in the internal rules. At the request of one of the Contracting Parties and under conditions to be provided in the internal rules, the joint commission meets when convened by its president whenever a particular necessity requires.
The joint commission may set up any working group to assist it in the performance of its tasks.

Art. 9 settlement of disputes if a dispute comes to arise between the Contracting Parties about the interpretation or execution of this agreement and that this dispute can be settled neither by the collaboration between authorities of surveillance, referred to in art. 7, or by the joint commission, referred to in art. 8, the Contracting Parties shall consult through diplomatic channels.
If the dispute could not be resolved in this way, it will be submitted, at the request of one or other of the parties to an arbitral tribunal of three members. This Court may be seized, at the earliest after a period of six months the first referral to the Joint Committee referred to in art. 8, unless the parties agree to a mutual agreement to submit, before the expiry of that period, their audit court dispute. Each Party shall appoint an arbitrator. The two appointed arbitrators will appoint an umpire who shall be a national of the Switzerland or the Liechtenstein.
If one of the Contracting Parties has not designated its arbitrator and that she did not need the invitation addressed by the other party to make this appointment within two months, the arbitrator shall, at the request of that party, by the President of the International Court of justice.

If the two arbitrators cannot agree on the choice of an umpire within two months following their appointment, it will be named at the request of one of the parties, by the President of the International Court of justice.
If, in the cases provided for in the al. 3 and 4 of this article, the President of the International Court of justice is prevented, or if he is the national of the Switzerland or the Liechtenstein, appointments will be made by the Vice-president. If this is prevented, or if he is the national of the Switzerland or the Liechtenstein, appointments will be made by the oldest Member of the Court who is a national of the Switzerland or the Liechtenstein.
Unless the Parties provide otherwise, the Court itself shall determine its rules of procedure. He makes decisions by a majority of votes.
The tribunal's decisions are binding on the Contracting Parties.

D. provisions final art. 10 relations with third countries, this agreement does not change nothing relationship insurance undertakings having their head office in the territory of a Contracting Party with the countries of the European Union or the European economic area, or with other countries, and vice versa.
The al. 1 apply by analogy to insurance intermediaries registered in the territory of one of the Contracting Parties.

Introduced by art. 1 HQ. June 20, 2007, approved by the SSA. fed. June 13, 2008 and in force since April 21, 2009 (RO 2007 3767, 2009-2561-2563; FF 2007 8005).

Art. 11 development of internal law this agreement is without prejudice to the right of each Contracting Party to change its internal legislation of independently on a point regulated by this agreement, provided that it respects the principle of non-discrimination and that she has informed the other Contracting Party.
Through the joint commission, each Contracting Party shall inform the other Contracting Party of the changes it intends to make its legislation internal on the points covered by this agreement, as soon as possible, but no later than within two months preceding their entry into force.
The joint commission is studying the consequences of these changes on the functioning of the agreement. She recommends any modifications to this agreement and decides, if necessary, to modify the annex. These decisions must be confirmed in an exchange of diplomatic notes.

Art. 12 review of the agreement if a Contracting Party wishes to revise this agreement, she requested the other Contracting Party to open negotiations to that effect. This application is made through diplomatic channels.

Art. 13 information each Contracting Party may at any time denounce this agreement by notification to the other Contracting Party. The agreement ceases to be in force twelve months after the date of the notification.

Art. 14 Annex the annex to this agreement is an integral part of it.

Art. 15 entry into force this agreement is subject to ratification. The instruments of ratification will be exchanged in Berne.
This agreement shall enter into force on the day of the exchange of instruments of ratification.
In faith whereof, the undersigned Plenipotentiaries have signed this agreement.
Done at Bern, in duplicate in the German language, on December 19, 1996.

Annex monitoring according to the principle of the country of headquarters I. monitoring of insurance art. 1 approval approval given by a Contracting Party to the business of insurance is valid for the territory of the two Contracting Parties insofar as the conditions below are met.

Art. 2 definitions the headquarters country, within the meaning of this agreement, refers to the Contracting Party in the territory of which a company has its headquarters.
The country of activity, within the meaning of this agreement, refers to the Contracting Party in the territory in which a company operates in a regime of free provision of services or through an institution, without its headquarters.
Establishment, within the meaning of this agreement, means an agency, a branch or an office run as an agency and sustainably by the personnel of the business of insurance or by an independent person authorized by it.
There is free provision of services within the meaning of this agreement, when a company covers from the country where it has its headquarters, risks located in the territory of the other contracting party without going through a facility.
Insurance company of the Liechtenstein within the meaning of this agreement, means any insurance company which has its headquarters in the Liechtenstein.
Means Swiss insurance company, within the meaning of this agreement, any insurance company which has its headquarters in Switzerland.

Art. 3 jurisdiction of the supervisory authorities 1. The financial supervision of an insurance undertaking, including its activities through an establishment or free provision of services regime, is the exclusive responsibility of the supervisory authority of the country of the seat.
2. the financial supervision includes review, all of the business of the insurance business, of its state of solvency, of the establishment of technical provisions and of the assets covering.
3. the monitoring of the insurance companies for money laundering is regulated in chapter IV.

Art. 4 on-site inspections when an insurance company operates through a facility, the supervisory authority of the country of the head office may, after informing the supervisory authority of the country of activity, make itself or through people mandated for this purpose inspections necessary for the financial supervision of the company on-site.
The supervisory authority of the country of activity may participate in these inspections.

Art. 5 technical provisions each insurance undertaking should establish adequate technical provisions for activities on the territory of the two Contracting Parties and cover by representative assets.

Art. 6 provisional measures interim measures provided by a Contracting Party in its legislation are also applicable when the nationals of the other Contracting Party are concerned.

Art. 7 portfolio transfer an insurance business transferred to a transferee in the country of activity all or part of its portfolio of contracts concluded through an institution or in a regime of free provision of services, only the authorization of the supervisory authority of the country of the seat is needed.
Leave is granted if a certificate of the supervisory authority of the country of activity proves that the transferee has, in view of the transfer of equity equivalent to the solvency margin and the interests of policy holders are protected.

Art. 8 failure to comply with the rules of law of the country of activity if an insurance company does not respect the rules of law of the country of activity, the supervisory authority of the country of the registered guest, at the request of the supervisory authority of the country of activity, the company to put an end to that irregular situation by all appropriate means.
If the irregularities persist, the supervisory authority of the country of activity may, after informing the supervisory authority of the country of the seat, prohibit the company to continue its activities in the country of activity, and that order all necessary measures.

Art. 9 report II. Activity of insurance companies Swiss Liechtenstein A. principle each company insurance is accountable to the authority oversight of the country of the seat of business in the country of activity, broken down by class of insurance. Business concluded in regime of free provision of services must be separated from those concluded through an institution. The supervisory authority of the country of headquarters annually passes this information to the supervisory authority of the country of activity, at least until end of September.
II. activity of insurance companies Swiss Liechtenstein A. principle art. 10 B the Swiss insurance companies can exercise their activity in Liechtenstein through a facility or in a regime of free provision of services without additional authorization, provided that they comply with the following requirements. To the Liechtenstein, they are subject to the same rules as companies having their seat in a State of EEA.
B. establishment art. 11 conditions of activity in Liechtenstein the insurance undertaking must notify the Swiss supervisory authority his intention to create a facility to the Liechtenstein.
This notification must contain the following indications:

(a) the classes of insurance which will be practiced and the risk that will be covered in each branch by indicating the insurance coverage; b) forecasts for the commissions and other administrative expenses, receipts from premiums, expenses for claims and the cash flow for the first three years; c) forecasts as to the financial resources available to cover commitments and the margin of solvency for the first three years; d) the projected costs for the installation of administrative services (and the distribution network, as well as the financial means available for this purpose (Fund Organization); e) data on the Organization of the establishment; f) the name of the general agent. It must be endowed with sufficient powers, personal integrity and be able to direct the establishment of efficient and competent; g) the name and address of the business, h) a statement that the company has joined the national bureau and the national guarantee fund for as much as the vehicle liability insurance engine should be considered.

Art. 12 procedure within three months of receipt of the above information, the Swiss supervisory authority checks, in addition to the legality of the project, the adequacy of administrative structures, the financial situation of the company and the respect of the general agent and management requirements.
If everything is in order, it shall provide the supervisory authority of the Liechtenstein indications and certificates that the Liechtenstein requires of the EEA countries.

Art. 13 change of directions C. free provision of services the insurance company must announce in writing to the Swiss supervisory authority changes affecting the indications referred to in art. 11, at the latest one month before their application. The Swiss supervisory authority must without delay these changes to the supervisory authority of the Liechtenstein.
C. free provision of services art. 14 conditions and procedure an insurance undertaking who wishes to exercise his activity in a regime of free provision of services must notify the Swiss supervisory authority. On this occasion, it must indicate the branches of insurance that she plans to practice at the Liechtenstein and the risks that it will cover.
The Swiss supervisory authority verifies the legality of the project within one month of receipt of the necessary information.
If everything is in order, it sends to the supervisory authority of the Liechtenstein indications and certificates that the Liechtenstein authorities of countries members of the EEA requires.

Art. 15 amendment of directions III. Activity in Switzerland Liechtenstein A. General provisions the insurance company insurance companies must report in writing to the Swiss supervisory authority changes affecting the indications referred to in art. 14, at the latest one month before their application. The Swiss supervisory authority must without delay these changes to the supervisory authority of the Liechtenstein.
III. activity in Switzerland of insurance of Liechtenstein provisions general art. 16 principle of the Liechtenstein insurance companies can operate in Switzerland through a facility or in a regime of free provision of services without additional authorization, provided that they comply with the following requirements.

Art. 17 the Liechtenstein companies customer information are submitted in Switzerland to the same duty to educate clients as to the Liechtenstein.

Art. Withdrawal of approval 18 b. a company must immediately inform the Swiss monitoring of a possible withdrawal of approval authority to the Liechtenstein.
B. establishment art. 19 conditions of activity in Switzerland access to the business of insurance in Switzerland through an establishment is allowed if the supervisory authority of the Liechtenstein provides the Swiss supervisory authority the indications and following certifications: a) that the company is authorized to carry the insurance activity in the Liechtenstein and adopted one of the legal forms which are recognized; b) that the company has the right to open a facility in Switzerland; c) a program of activity including describing the proposed activities and the Organization of the establishment; d) the name and address of the establishment; e) the name of the general agent. It must be endowed with sufficient powers, personal integrity and be able to direct the establishment of effective and competent way; f) that the company has sufficient own capital to cover the solvency margin; g) a statement that the company: - joined in Switzerland to the national bureau and the national guarantee fund; - collects from the policyholder a contribution to the prevention of accidents under art. 1, al. 3, of the Act of June 25, 1976 on a contribution to the prevention of accidents and lodging to the Swiss Fund for the prevention of accidents of the road for as much that she intends to Transact insurance civil liability for motor vehicles.

SR 741.81 art. 20 general interest within two months of the receipt of indications and certificates mentioned above, the Swiss supervisory authority shall forward to the supervisory authority of the Liechtenstein and to the insurance company, the conditions under which, for reasons of interest general, activity should be exercised in Switzerland.

Art. 21 start of school activity may start business in Switzerland as soon as the conditions associated with the general interest was communicated to him, but at the latest at the expiry of the said period of two months.

Art. 22 amendment of directions C. free provision of services the insurance company must announce in writing to the supervisory authority of the Liechtenstein changes affecting the indications referred to in art. 19, at the latest one month before their application. The supervisory authority of the Liechtenstein must without delay these changes to the Swiss supervisory authority.
C. free provision of services art. 23 conditions and procedure an insurance undertaking who wishes to conclude insurance contracts in a regime of free provision of services in Switzerland cannot access this activity and exercise it if the supervisory authority of the Liechtenstein provides the Swiss supervisory authority the indications and following certifications: a) that the company has a line of sufficient solvency in all of its activities and that it is authorized to exercise its activity outside the Liechtenstein; b) classes of insurance that the company is authorized to offer it; c) the nature of the risks that the company wants to cover in Switzerland.

The company can begin to exercise its activity in Switzerland from the time the Swiss supervisory authority is in possession of these documents.

Art. 24 liability insurance for motor vehicles a company that wishes to Transact insurance civil liability for motor vehicles must also: a) appoint a representative domiciled in Switzerland responsible for the liquidation of claims; b) adhere to the national office and to the national fund of guarantee in Switzerland and participate in their funding; c) collect from the policyholder a contribution to the prevention of accidents under art. 1, al. 3, of the Act of June 25, 1976 on a contribution to the prevention of accidents and pay to the Swiss Fund for the prevention of road accidents.

SR 741.81 art. 25 tasks of the representative for the liquidation of the claims representative referred to in art. 24 is responsible to perform the following tasks: a) gather all the necessary information on disaster; b) to represent the insurance undertaking in relation to injured people who argue the claims; to this end, the representative must have sufficient powers, including to pay sums of money corresponding; c) represent or to represent the insurance undertaking in the courts and the Swiss authorities with regard to the claims of the injured; d) represent or to represent the insurance undertaking in the courts and the Swiss authorities regarding the existence and validity of insurance civil liability of motor vehicles.

Art. 26 change of directions IV. Monitoring of insurance companies money laundering the insurance company must announce in writing to the supervisory authority of the Liechtenstein changes affecting the information referred to in art. 23 and 24, at the latest one month before their application. The supervisory authority of the Liechtenstein must without delay these changes to the Swiss supervisory authority.
IV. monitoring of the insurance companies for laundering art. 27 competence of supervisory authorities 1. Monitoring money laundering is the responsibility of the competent authority of the country of activity for Affairs of the school and of the headquarters country for business of free provision of services.

2. we meant by Affairs of the school, insurance contracts concluded by an establishment in the country of activity and business of free provision of services, insurance contracts concluded in the country of activity from the country of the headquarters of the insurance company.

Art. 28 law applicable 1. Money laundering, Affairs of the school are subject to the law of the country of operation and business of free provision of services, subject to para. 2, the law of the country of the seat.
2. the amounts set out in art. 4, al. 2, let. b and c, of the law of the Principality of Liechtenstein of 22 May 1996 on professional due diligence in financial affairs (Sorgfaltspflichtgesetz) also apply to the free provision of services deals in the Principality of Liechtenstein by the Swiss insurance companies.

V. supervision of intermediaries art. 29 definitions by country of the seat as defined in this agreement, means the Contracting Party on whose territory the insurance intermediary is registered.
In the present sense agreement insurance intermediary, means an insurance or reinsurance intermediary registered in a Contracting Party.
Intermediation in insurance within the meaning of this agreement, means any intermediation in insurance and reinsurance.

Art. 30 non-compliance with the rules of law if an insurance intermediary does not respect the rules of right of a party to the agreement, the supervisory authority of the country of the registered guest, at the request of the other surveillance authority, said interim to put an end to that irregular situation by all appropriate means.
If the irregularities persist, the relevant supervisory authority may, after informing the supervisory authority of the country of the seat, prohibit the insurance intermediary to continue its activities in its country as well that order all necessary measures.

Art. 31 on-site inspections when an insurance intermediary operates through an office located on the territory of the other Contracting Party, the supervisory authority of the country of the seat may conduct inspections on the spot, after having informed the other supervisory authority, itself or through persons authorised to that effect.
The other supervisory authority may participate in these inspections.

Art. 32 insurance intermediation insurance intermediaries who are registered on the territory of a Contracting Party may exercise their activity on the territory of the other contracting party without approval or additional registration, as long as they comply with the following conditions.

Art. 33 liability insurance professional when an insurance intermediary has, as security financial, professional liability insurance, the territorial field of application of this must include the territory of the two Contracting Parties.

Art. 34 insurance mediation for their activity to the Liechtenstein Liechtenstein, insurance intermediaries registered in Switzerland are subject to the same rules as insurance intermediaries registered in a State of the EEA, with the exception of the al. 2. they can start their business without informing the Swiss supervisory authority.

Art. 35 in Switzerland insurance intermediation insurance intermediaries registered in the Liechtenstein who wish to exercise their activity in Switzerland, are required to announce it to the supervisory authority of the Liechtenstein.
They can begin their work immediately after completing this obligation.
For their activity in Switzerland, they are subject to the same obligations to inform and advise clients as to the Liechtenstein.

Update according to art. 2 d 2/2001 the Commission joint Switzerland-Liechtenstein Dec. 19. 2001 (RO 2004 2327), art. 1 d 5/2003 the Commission joint Liechtenstein-Switzerland on Dec. 19. 2003 (RO 2004 2447) and art. 2 HQ. June 20, 2007, approved by the SSA. fed. June 13, 2008 and in force since April 21, 2009 (RO 2007 3767, 2009-2561-2563; FF 2007 8005).

2001 175 RO; FF 1997 II 1 the original text is published under the same number, in the German edition of this compendium.
New content according to art. 1 HQ. June 20, 2007, approved by the SSA. fed. June 13, 2008 and in force since April 21, 2009 (RO 2007 3767, 2009-2561-2563; FF 2007 8005).
RO 2001 174 new content according to art. 1 HQ. June 20, 2007, approved by the SSA. fed. June 13, 2008 and in force since April 21, 2009 (RO 2007 3767, 2009-2561-2563; FF 2007 8005).
New content according to art. 1 HQ. June 20, 2007, approved by the SSA. fed. June 13, 2008 and in force since April 21, 2009 (RO 2007 3767, 2009-2561-2563; FF 2007 8005).

State on April 21, 2009

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