LAW 32 03/04/2000
Print
LAW No. 32 of April 3rd, 2000*)regarding the insurance societies and the supervision of insurancesISSUED BY: The Parliament of Romania_________ Note C.T.C.E.: For using in court, only the text in the Romanian language has legal foundation.________ *) The initial document was published in "The Official Gazette of Romania", Part I, No. 148 of April 10th, 2000. This text is updated by S.C. "Territorial Center of Electronic Calculation" S.A. Piatra Neamt with the changes and completions brought by: Expeditious Ordinance no. 116 of June 29th, 2000; Expeditious Ordinance no. 51 of March 29th, 2001; Ordinance no. 7 of July 19th, 2001; Law no. 414 of June 26th, 2002; Law No. 493 of July 11th, 2002; Law No. 76 of March 12th, 2003. The Parliament of Romania adopts the present law.Chapter I Objectives of the Law, interpretation of terms and types of insuranceArticle 1
This law is to provide for: the establishment and activity of insurance, insurance-reinsurance and reinsurance companies, of mutual companies, called hereinafter insurers and reinsurers respectively, as well as of insurance intermediaries; the Insurance Supervisory Commission establishment, supervising the activity of insurers and reinsurers acting in and from Romania, of insurance and reinsurance intermediaries, as well as of other related activities.Article 2
For the purposes of the present law, the following terms and phrases mean as follows:1. "insurance business": the business performed in or from Romania, it mainly consists of offering, mediating, negotiating, issuing insurance and reinsurance contracts, receiving premiums, settling claims, regress and recovery activities, as well as of investing or capitalising own funds and funds drawn through the business performed;2. "insurance agent": the private individual or body corporate who, based on an authorisation from an insurer, negotiates or closes insurance contracts with third parties in the account and on behalf of that insurer, in accordance with conditions stated in the mandate contract agreed upon, without having the position of an insurer or of an insurance broker;3. "insurance": the activity through which an insurer forms an insurance fund, using the principle of mutuality among a large number of insured persons exposed to specific risks, and pays indemnities to those ones who experience losses from the fund constituted from collected premiums, as well as from other income generated by the business;4. "Insured": the person who concluded an insurance contract with the insurer;5. "insurer": the Romanian or foreign body corporate or insurance mutual company, authorised according to the present law to carry out insurance activities.6. insurance broker: the Romanian or foreign legal person, authorized in accordance with the present law, who negotiates on behalf of its clients, insured or possible insured, the conclusion of the insurance and reinsurance contracts and grants assistance on the duration of carrying out the contracts or related to the regulation of the damages, as the case may be;7. "catastrophe": an event or a series of events that causes substantial damages within a short period of time;8. "co-insurance": the operation through which two or more insurers underwrite the same risk, each of them assuming a share of the overall risk;9. "paid-up free reserve fund": the total of amounts which represent contributions of members in an insurance mutual company to its funds;10. significant shareholder: the natural or legal person who, alone or through or connected with other natural or legal persons, taking action in a concerted way, practices rights relating to some actions, that, cumulated, should represent at least 5% from the total vote rights in the General Assembly, or that give the possibility to practice a significant influence over the leadership of the insurance society where they hold the significant position;11. "significant person": the Managers and the General Manager;12. "insurance portfolio": all or part of the insurance contracts concluded by an insurer;13. gross written premiums: the premiums received and to be received, including reinsurance premiums received and to be received, relating to all insurance and reinsurance contracts entering into force during the financial exercise, before any deduction of sums from them is made;14. "net written premiums": gross written premiums after deduction of the amounts paid or to be paid as reinsurance premiums;15. "gross collected premiums": the amount of the collected premiums, including reinsurance premiums collected in the reference period, before deducting any amounts from them;16. "net collected premiums": the gross collected premiums from which the amounts paid as reinsurance premiums are deducted.17. "reinsurance": the operation through which an insurer is insured by another insurer, the first being reinsured and the latter reinsurer;18. "own retention": the share of the risk which remains covered by the insurer, after deduction of reinsurance;19. "insurance mutual company": the civil body corporate whose associates are both insureds and insurers.______ Paragraphs 6, 10 and 13 from art. 2 were changed by Law no. 76 of March 12th, 2003 published in the Official Gazette no. 193 of March 26th, 2003.Article 3
(1) The insurance activity is divided in:a) life assuranceb) general insurance(2) The classes of insurance in the categories provided for under paragraph (1) are to be regulated by norms.Chapter II The Insurance Supervisory CommissionArticle 4
(1) The application of this law, the supervision and control of its observance are in the charge of the Insurance Supervisory Commission, that aims at protecting insured persons' rights and at promoting the stability of the insurance business in Romania.(2) The Insurance Supervisory Commission is hereby established as an administrative, autonomous, professional body, legally registered, with premises in Bucharest and acting according to the provisions of this law.(3) The Insurance Supervisory Commission may open a representative office in any other locality in Romania.(4) For the needs of the Insurance Supervisory Commission, of its representative offices that it establishes, the Government and, according to the case, the authorities of the local public administration, shall assign for its administration the necessary premises - lands and buildings - from the public domain of national or local interest, according to the case, within 60 days from the request date. The Insurance Supervisory Commission may use the own incomes for constructing, acquisition or concluding some corresponding buildings, according to the valid legal provisions.(5) The Insurance Supervisory Commission, is run by a Board consisting of 5 persons: a president, a vice-president and 3 members, respectively.(6) The organisational and personnel structure of the Insurance Supervisory Commission, the management, executive and control attributions of its staff are set by specific internal regulations approved by the Insurance Supervisory Commission Board, in accordance with the provisions of the present law.(7) The members of the Insurance Supervisory Commission Board are appointed by the Parliament, in the joint session of the two Chambers, as proposed by the joint Commissions of Budget, Finance and Banking of the Senate and Chamber of Deputies. The president and vice-president are appointed on positions in the list of proposals which is further submitted to Parliament approval.(8) The members of the Insurance Supervisory Commission Board are appointed from the common list proposed by the Commissions for Budget, Finance and Banking of the Senate and the Chamber of Deputies.(9) The collective or individual revoking of the Commission Board members is done by the authority that appointed them, based on the procedure set in paragraph (8).(10) The members of the Commission Board can be appointed for a 5 years period, each of them can be re-appointed.(11) The initial members of the Commission Board will be appointed for different periods of time, so that each year a mandate is to be terminated.(12) The President will be appointed for a 5 years mandate and the vice-president for a 4 years mandate.(13) The members whose mandates terminate will remain in duty until their successors are appointed.(14) In case of total and permanent unavailability to perform the mandate by a certain member, the Parliamentary Commissions mentioned in par. 8 shall propose the person to be further appointed by the Parliament for the remaining duration of the mandate.(15) The permanent unavailability to perform the mandate is deemed to be any circumstance generating an unavailability of 90 consecutive days.(16) The members of the Commission Board must fulfill the following conditions:a) must be Romanian citizens residing in Romania, they must have a good reputation and professional background, and at least 5 years experience in banking-finance and/ or insurance and reinsurance;b) during their mandate, they cannot be members of any political party;c) cannot practice any other profession, or have other function neither in the public, nor in the private sector, except professorial activities within universities;d) cannot be members in administration boards or audit commissions of any body corporate which is subject of the supervision performed by the Insurance Supervisory Commission, or significant shareholders in such body corporate;e) have not been declared bankrupt, or part of the management of an insurance or financial-banking company that ceased its activity irrespective of circumstances without covering its liabilities toward third parties;f) must not have criminal record.(17) The membership function in the Board of the Insurance Supervisory Commission ceases in the following situations:a) at termination date of the mandate period;b) by resignation;c) if the Parliament revokes the respective member;d) in case of appearance of any incompatibility mentioned at paragraph (16);e) by replacement, according to paragraph (14).(18) The members of the Insurance Supervisory Commission Board are to immediately notify the Parliament in writing about the appearance of any incompatibility situation as mentioned at paragraph (16); until the Parliament decision the member of the Insurance Supervisory Comission Board is suspended by rights.(18^1) The members of the Insurance Supervisory Commission Council, as well as its staff, that has to perform supervision attributions do not respond civilly or penally, if the courts of justice discover the accomplishing or the lack of it by these persons, benevolent and with no care, of any document or facts connected to the practice, in the conditions of the law, the supervision attributions.(19) The president is the representative by rights of the Insurance Supervisory Commission, as autonomous administrative unit, as legal person of public right and in connections of common right.(20) If both the president and the vice-president are temporarily unable to exercise their competencies, the Insurance Supervisory Commission is represented by the oldest of its members.(21) The Board of the Insurance Supervisory Commission validly deliberates in the presence of at least 3 of his members, including its president or, in his absence, of its vice-president.(22) The decisions are taken with the vote of the majority of present members; in case of equal number of votes, the president's vote, or, in his absence, the vice-president's vote is decisive.(23) The approved decision is compulsory for all members of the Board. Those who voted against it and the absent members may mention their separate opinion in the minute of the respective session.(24) While exercising its attributions, the Insurance Supervisory Commission will collaborate with other public authorities or with foreign institutions dealing with regulation or supervision of insurance markets, in order to ensure the protection of the insureds, of the potential insureds and the transparency of the insurance market.(24^1) The members of the Insurance Supervisory Commission Council practice their mandate according to the law. They are responsible for their activity in a united way, with the exception of the situation when they voted against a decision and countersigned the separate opinion in the report.(25) In order to practice its attributions, the Insurance Supervisory Commission may conclude cooperation agreements with similar bodies, with public authorities or with institutions in other countries, regarding the insurance of the confidential information exchange, necessary in the supervision activity. This information can be made public only through the explicit agreement of the authorities that transmitted it or, in certain cases, only in the purpose for which the authorities gave their agreement.(26) For the acomplish of the attributions provided by art. 5 the Insurance Supervisory Comission adopts norms, notifications and decisions, under the president's signature, after the deliberation in meetings which are attended upon the provisions under par. (22)-(24), by complying with the provisions under par. (28).(27) The Insurance Supervisory Commission adopts norms that are implemented by order of the President. The individual acts are the decisions and the notifications / licenses.(28) The Insurance Supervisory Commission is in consultation with the College comprising representatives of professional bodies of the operators on the insurance market.(29) The Insurance Supervisory Commission comprises specialised personnel in the following fields: economics, law, accounting, actuary, statistics, mathematics, engineering, information technology, medicine as well as specialists in insurance and finance.(30) The Board of the Insurance Supervisory Commission provides in a decision the wages of its members and personnel, by taking into account the salary level granted for similar positions on the insurance market.__________ Par. (4) in art. 4 has been changed by Law no. 76 of March 12th, 2003 published in the Official Gazette no. 193 of March 26th, 2003. Par. (18^1) in art. 4 has been inserted by Law no. 76 of March 12th, 2003 published in the Official Gazette no. 193 of March 26th, 2003. Par. (19) in art. 4 has been modified by Law no. 76 of March 12th, 2003 published in the Official Gazette no. 193 of March 26th, 2003. Par. (24^1) in art. 4 has been inserted by Law no. 76 of March 12th, 2003 published in the Official Gazette no. 193 of March 26th, 2003. Par. (25) in art. 4 has been inserted by Law no. 76 of March 12th, 2003 published in the Official Gazette no. 193 of March 26th, 2003.Article 5
The Insurance Supervisory Commission has the following competencies:a) elaborates or decides upon projects of law concerning the insurance field, or which have implications on this field, and decides upon individual administrative acts, if related to the insurance business;b) supervises the insurers' financial situation, in order to protect insureds' or potential insureds' interests; for this purpose it may require the carry-out of audit activities over insurers' or insurance brokers' activity;c) takes the necessary steps for the insurance activity to be managed with the observance of specific prudential regulations;d) participates as a member in international associations of insurance supervisory authorities, and represents Romania at international conferences and meetings regarding insurance supervision;e) approves the direct or indirect significant shareholders, natural or legal persons, as well as the insurers' significant persons, in accordance with the criteria established by norms;f) approves the division or merger of an insurer registered in Romania;g) approves the transfer of portfolio;h) may request the presentation of documents and information regarding the insurance business, both from insurers and from any other person related to their activity;i) participates in elaborating the accounting plan, the accounting norms and regulations, after consultation with the professional bodies of insurance operators;j) approves the personal budget of incomes and expenses.k) approves any change of the documents or conditions on the basis of whose the setting up and functioning authorization was given to the insurers and insurance brokers;l) authorizes annually, the practice of the obligatory insurances and cashes as personal incomes a percentage contribution from the value of the gross premiums cashed relating to the respective insurances, in the view of practicing the supervision and control of the activity of obligatory insurances, in the conditions of the present law and of the norms issued for the application of this law;m) applies the sanctioning measures provided in the present law, connected to the practice of a direct or indirect influence, that is incompatible with the principles for the prudent leading of the insurers' activity, established by norms;n) fulfils other attributions provided by law._______ Letters e) and j) in art. 5 has been modified by Law no. 76 of March 12th, 2003 published in the Official Gazette no. 193 of March 26th, 2003. Letters k) - n) in art. 5 has been inserted by Law no. 76 of March 12th, 2003 published in the Official Gazette no. 193 of March 26th, 2003.Article 6
(1) The Insurance Supervisory Commission is not to disclose any information obtained during the exercise of its legal competencies.(2) The confidentiality restriction in par. 1) does not apply if the disclosure is made:a) with the written agreement of the insurer concerned;b) at the explicit request of a court of law;c) for the insureds' best interest.d) on the basis of the cooperation agreements with similar bodies, with public authorities or with institutions in other countries, according to the provisions under art. 4 par. (25).___________ Letter d) from par. (2) in art. 6 has been inserted by Law no. 76 of March 12th, 2003 published in the Official Gazette no. 193 of March 26th, 2003.Article 7
(1) The Insurance Supervisory Commission will submit to the Parliament a report on the insurance market in Romania, as well as a report on the activities performed, within 6 months from the termination of each financial year.(2) The Insurance Supervisory Commission will edit and publish a yearly report on the insurance market and on its institutions and bodies, subject to the provisions in Art. 6.Article 8
(1) In operating this law, the Insurance Supervisory Commission adopts norms.(2) The Insurance Supervisory Commission issues decisions by which:a) imposes restrictions, grants, suspends or withdraws authorisations;b) modifies or revokes conditions, requirements or terms that are enforced by its acts;c) approves insurers' mergers or divisions;d) approves the transfer of the insurance portfolio;e) approves the persons to audit the life assurance business;f) approves the direct or indirect significant shareholders and the insurers' significant persons;g) approves the members of the Insurance Experts Body by it, and its statute;h) sets the wages of the Insurance Supervisory Commission members and personnel, subject to provisos in Art. 4;i) decides upon starting analysis, counselling and control activities for the actors in the field;j) requires the submission of certain documents, reports, data, hearings;k) identifies and applies sanctions to actors in the field, for breach of provisos in this law, in norms and decisions related to its operation.(3) The notifications are documents through which the Insurance Supervisory Commission states official answers to matters regarding the insurance business or which have implications on it.___________ Letter f) from par. (2) in art. 8 has been modified by Law no. 76 of March 12th, 2003 published in the Official Gazette no. 193 of March 26th, 2003.Article 9
(1) The norms issued by the Insurance Supervisory Commission according to its competencies stipulated in the present law shall be published in the Romanian Official Journal, part I.(2) Decisions and notifications are not to be made public, except the ones in Art. 8, par. (2) let. a) and d).Article 10
(1) The following represent income to the Insurance Supervisory Commission budget:a) fees and penalties provided for under Art. 13 and Art. 36;b) income from donations, publications and other legal sources;(2) The surplus in the Insurance Supervisory Commission budget is carried forward to the next year.Chapter III The Authorisation of InsurersArticle 11
(1) In Romania, the insurance business may only be carried out by:a) joint-stock companies, mutual companies, subsidiaries of foreign insurers established as Romanian legal entities, authorised by the Insurance Supervisory Commission, according to the procedure set by Art. 12;b) branches of insurers that are foreign body corporates, authorised by the Insurance Supervisory Commission, according to the procedure set by Art. 12.(2) No insurer can be registered in the Commerce Record without the prior authorisation of establishment issued by the Insurance Supervisory Commission.Article 12
(1) The application for authorisation of establishment and for authorisation of functioning shall be submitted to the Insurance Supervisory Commission in the format and together with the documents required by the norms.(2) If deemed necessary, the Insurance Supervisory Commission may request additional information, or perform own investigations or with the support of other competent authorities, or it may use information from other sources.(3) he Insurance Supervisory Commission shall decide upon granting or upon rejecting the authorisation of establishment within a maximum of 4 months from the date of registration of the application for authorisation.(4) The Insurance Supervisory Commission may grant the authorisation provided for under the paragraph (3) in case of cumulative compliance with the following conditions:a) the feasibility study shows that the company will dispose of the legally required solvency margin;b) the applicant's social capital paid-up in a bank authorised by the National Bank of Romania or, in the case of a mutual company, its paid-up free reserve fund is in accordance with legal provisions;c) the applicant-company submits a satisfactory reinsurance programme for its insurance business or gives evidence that no such plan is necessary for its business;d) the company submits specific calculations for life assurance business, if it solicits authorization for practicing this category of insurance;e) the company name does not mislead the public;f) the society shall carry out only insurance operations, such as they are defined at art. 2 point 3;g) in the case of a foreign insurer, if he proves that the country where he is registered was legally set up.(5) The Insurance Supervisory Commission shall reject the application for authorisation of establishment if it finds that:a) the submitted documentation does not comply with the legal provisions in force;b) the submitted application shows that:– the Company will not carry-out an activity in accordance with the provisions of the present law;– the significant persons and significant shareholders do not fulfil the criteria set by norms;c) the analysis of the feasibility study or of the foreign company's yearly reports, according to case, shows that the company cannot ensure the achievement of stated objectives in conditions which are compatible with prudent practice regulations, which to provide the adequate security to insureds;d) there is a form of association through which the share ownership, including the actual owner of the stock, is concealed to the Insurance Supervisory Commission;e) granting the authorisation runs counter to the public policy.(6) The Insurance Supervisory Commission shall notify the applicant upon the reasons for rejecting the application.(7) The applicant may appeal against the decision of the Insurance Supervisory Commission to the Court of Appeal, within 30 days from the notification of the decision, according to the law.(8) The authorisation of establishment does not guarantee the granting of an authorisation to carry on insurance business, but merely allows the founders to proceed to the registration of the insurance company, according to the documentation for establishment and to legal requirements.(9) In order for the Insurance Supervisory Commission to reach a final decision the applicant shall submit to the Insurance Supervisory Commission, within 6 months from the date of issue of the authorisation for establishment, all the documents certifying the legal registration of the company.(10) Should there appear total or partial changes in the original feasibility study, the Insurance Supervisory Commission may re-evaluate the application and may decide to withdraw the authorisation of establishment.(11) The Insurance Supervisory Commission shall decide upon granting an authorisation of functioning within 60 days from the date of receiving the documents mentioned in the paragraph (9) above.(12) If the authorisation of functioning is granted, the insurer may carry on an insurance business starting with the authorisation date of issue.(13) Should the authorisation of functioning be denied, the authorisation of establishment is automatically revoked.(14) Should the Insurance Supervisory Commission refuse to grant an authorisation of functioning, it may claim to the Court to have the body corporate dissolved.(15) The applicant may appeal against the decision of denying the authorisation for functioning to the Court of Appeal, within 30 days from the notification of the decision, according to the law.(16) The provisions of the present article are adequately applied also in the case of branches of foreign insurers.___________ Letters d), f) and g) from par. (4) in art. 12 has been modified by Law no. 76 of March 12th, 2003 published in the Official Gazette no. 193 of March 26th, 2003.Article 13
(1) An insurer who applies for an authorisation according to Arts. 12 and 44 shall pay at the submission of the authorisation application, an authorisation fee amounting to Rol 75,000,000. The amount of the authorisation fee may be up-dated yearly by a decision of the Insurance Supervisory Commission, according to the inflation rate notified by the National Statistics Commission;(2) Should the authorisation application be denied, the authorisation fee is not reimbursed.(3) From the moment of receiving the authorisation of functioning, during its validity period, the insurer shall pay a functioning fee set yearly by the Insurance Supervisory Commission, amounting to maximum 0.3 % of gross premiums collected during the period for which they are due.(4) The insurers pay the functioning fee at dates fixed through norms.(5) Should the functioning fee provided for under par. (3) not be paid within due course, the Insurance Supervisory Commission shall calculate delay penalties, in accordance with the in force legal regulations regarding amounts not paid within due course to the state budget.Article 13^1
(1) The document through which the payment obligation of a insurer is discovered and individualized, drawn up or issued, as the case may be, by the bodies of the Insurance Supervisory Commission, according to the law, is considered as a claim title.(2) On the date of the term, the claim title becomes executory title, on the basis of which the Insurance Supervisory Commission shall open the forced procedure for recovering its claims, according to the provisions in the Code of civil procedure.___________ Art. 13^1 has been inserted by Law no. 76 of March 12th, 2003 published in the Official Gazette no. 193 of March 26th, 2003.Article 14
(1) The Insurance Supervisory Commission may withdraw the authorisation for functioning if an authorised insurer did not start performing the insurance business within 12 months since the authorisation was issued, or if it stops performing the insurance business for a period of 12 consecutive months.(2) The insurer may claim in the Court of Appeal against the decision of withdrawal of the authorisation for functioning, in accordance with the conditions in par. (1), within 30 days from notification, according to the law.Article 15
The Insurance Supervisory Commission shall publish at least once a year, in the Romanian Official Journal, as well as in a widely circulating publication, the updated list of the authorised insurers and any other information that it might find necessary, in applying the present law.Chapter IV The Insurers' ActivityArticle 16
(1) Each insurer must cumulatively maintain:a) the paid-up social capital or, in the case of a mutual company, the paid-up free reserve fund;b) the solvency margin.(2) The paid-up social capital or, according to case, the paid-up free reserve fund cannot be less than:a) Rol 7 billion for general insurance business, compulsory insurance excepted;b) Rol 14 billion for general insurance business;c) Rol 10 billion for life assurance business;d) the sum of amounts from let. a) and c) or b) and c), according to case, in accordance with the insurance activities carried-out.(3) The paid-up social capital or the paid-up free reserve fund provided for under par. (2) will be periodically updated through norms by the Insurance Supervisory Commission.(4) The social paid-up capital or, as the case may be, the paid-up free reserve fund, provided under par. (1) let. a) must be entirely paid-up in cash, at the setting up, as well as at their increase.(5) The solvency margin, that represents the amount with which the assets value exceeds the liabilities value, must be higher that the value established through norms.(6) In calculating an insurer's liabilities, both existent and probable future liabilities are taken into account.(7) In order to set the solvency margin the evaluation of assets and liabilities held by an insurer is achieved according to norms which shall also comprise details regarding the category of assets and debts that are partially or not to be taken into account.___________ Par. (4) in art. 16 has been modified by Law no. 76 of March 12th, 2003 published in the Official Gazette no. 193 of March 26th, 2003.Article 17
(1) The shares issued by insurers may only be nominative.(2) Any form of association by which the share ownership is concealed to the Insurance Supervisory Authority is becoming null and void.Article 18
The minimum value in the nature of assets permanently kept in Romania by each insurer taken into account in the calculations of the solvency margin, must allow the insurer to cover all its obligations in the country, at any moment of exercising the insurance business.Article 19
Insurers may invest or capitalise the social capital, capital reserves and technical reserves in real estate or movable possessions like shares, bonds, other participation titles, bank deposits, buildings for own activities or rental.Article 20
(1) The insurer must permanently run its activity by complying with the specific prudential regulations according to the insurance practice, and must ensure the following:a) carrying out the activity in a prudent and professional way, in accordance with the nature and size of the activity performed;b) the employment of sufficient personnel with appropriate experience and background required for their positions.(2) For all facultative insurance businesses carried-out, the insurer must elaborate:a) its own insurance conditions, subject to legal provisions regarding the insurance contract;b) its own insurance clauses which can modify the insurance conditions according to its own option or to the insured's option;c) its own criteria for setting the premium amounts;d) own regulations and instructions for claims registration and settlement, in strict accordance with provisions in the insurance conditions and clauses;e) internal regulations regarding the set-up and maintenance of technical reserves according to the own system of operative records, by complying with the norms issued by the Insurance Supervisory Commission;(3) The insurer is responsible for the following:a) to keep its accounting and operative records which should allow:– the elaboration of reports required by the Insurance Supervisory Commission;– the analysis of technical results on classes of insurance, in order to establish if its overall activity is profitable.b) to supervise the activity of the subordinated units and agents, in order to avoid jeopardising the insurance activities carried-out by the insurer;c) to organise its internal control procedures, so that to comply with the legal provisions and to represent the control bodies of the Insurance Supervisory Commission all the documents, situations and information solicited by them.___________ Letter c) from par. (3) in art. 20 has been modified by Law no. 76 of March 12th, 2003 published in the Official Gazette no. 193 of March 26th, 2003.Article 21
(1) The insurer who performs a general insurance business undertakes to constitute and maintain the following technical reserves:a) the premium reserve is calculated each month, by adding together the quotashares of net written premiums corresponding to the in force periods of insurance contracts, in order that the difference between the volume of net written premiums and this reserve to illustrate the net premiums allocated to the share of risks expired at the date of calculation;b) the claim reserve: is created and updated monthly based on estimations for reported but unsettled claims, in order for the fund created to be sufficient for settling these claims;c) the unreported claim reserve: is created and adjusted at least at the end of the financial year, if the insurer's internal regulations do not mention otherwise, based on its estimations, on statistical data or actuarial calculations for the existing but not-reported claims;d) the catastrophe reserve: is created by the monthly application of a percentage of minimum 5 % to the gross written premium volume afferent to contracts that cover catastrophe risks, until the reserve fund amounts at least to the level of the own retention, or 10 % of liabilities accumulated from contracts covering catastrophe risks; this reserve is to cover the indemnity payments afferent to catastrophe claims;e) the reserve for non-expired risks: is calculated based on the estimation of claims to occur after the closing of the financial year, afferent to insurance contracts issued before that date, to the extent to which their estimated value is higher than the amount between the premium reserve and the premiums to be further collected for these contracts;f) the equalisation reserve: is created in the years with favourable technical results in order to create claim covering sources for the years with non-favourable technical results.(2) For calculating the reserves provided for under par. (1) let. b) - f) the amounts estimated for claims and their settlement costs are included, after deducting the share to be further recovered from reinsurers.(3) The insurer who performs a life assurance activity undertakes, in respect of the Art. 28, to constitute and maintain technical reserves, called hereinafter mathematical reserves for the life assurance fund.(4) The amount of technical reserves constituted and maintained as per par. (1) and (3) cannot be less than the amount resulting from the calculation of these reserves according to the methodology set by norms.(4^1) The net written premiums, on the basis of which the technical reserves provided under par. (1) lets. a), d) and e) and under par. (3) will be calculated, shall be established in accordance with the provisions of the norms.(5) The amounts transferred to technical reserves constituted and maintained in accordance with this article represent the insurer's liabilities and are deducted from the insurer's income in order to determine the profit.(6) In the cases when the insurance contract provides the premiums collection and the indemnity payment in a foreign currency, the technical reserves relating to them may be constituted and maintained in a foreign currency. The estimation shall be done in accordance with the provisions of the norms.(7) Other category of technical reserves may be set through norms and the stipulations of the present article shall also apply to these categories.___________ Letter a) from par. (1) in art. 21 has been modified by Law no. 76 of March 12th, 2003 published in the Official Gazette no. 193 of March 26th, 2003. Par. (4^1) in art. 21 has been inserted by Law no. 76 of March 12th, 2003 published in the Official Gazette no. 193 of March 26th, 2003. Par. (6) in art. 21 has been modified by Law no. 76 of March 12th, 2003 published in the Official Gazette no. 193 of March 26th, 2003.Article 22
The categories of assets admitted to represent the insurer's technical reserve, the rules of dispersing investments, as well as the liquidize coefficient are settled through norms; at their elaboration, the categories and classes of insurance performed shall be taken into account.Article 23
(1) Based on an agreement, an insurer may perform an insurance portfolio transfer by which a part or the entire insurance business is transferred to another insurer.(2) The transfer shall include debts, rights, liabilities or properties.(3) The transfer is not valid without the authorisation of the Insurance Supervisory Commission.Article 24
Within 4 months from the termination of the financial year, the insurer must submit to the Insurance Supervisory Commission the balance sheet and the profit and loss account, together with the audit report, as well as the financial reports whose form, content, information, details and certifications are set by norms.Article 24^1
The insurers are obliged to place at the disposal of the insurers or of the possible insurers, before concluding the insurance contract, at least the following information: the duration of the contract, the execution, suspension or ceasing modalities, the payment means and terms of the insurance premiums, the methods of calculating and distributing the financial results, the procedures for solving the possible litigations resulted from the execution of the contract, as well as other information necessary for the protection of their interest.___________ Art. 24^1 has been inserted by Law no. 76 of March 12th, 2003 published in the Official Gazette no. 193 of March 26th, 2003.Article 24^2
The insurers and the insurance brokers do the insurance and reinsurance operations in lei, and if they assume payment obligations in foreign coin, these operations shall be done in foreign coin, according to the law.___________ Art. 24^2 has been inserted by Law no. 76 of March 12th, 2003 published in the Official Gazette no. 193 of March 26th, 2003.Article 25
(1) Insurers may establish professional unions that are to represent their joint interests in relation to public authorities, to study matters of common interest, to promote co-operation, to inform the members of the association and the public and to organise services of joint interest; also, they may adhere to similar international unions, complying with the obligations stipulated in their deeds of settlement.(2) The insurers may set agreements regarding co-insurance, pools and other specific forms of co-operation, in order to insure or reinsure risks.(3) The insurers issuing Green Card international insurance documents shall set-up the Romanian Green Card Office, according to the provisions of the International Green Card Agreement, with the approval of the Insurance Supervisory Commission. The activity of the Romanian Green Card Office is subjected to the regulation and surveillance of the Insurance Supervisory Commission.Chapter V Life Assurance BusinessArticle 26
The insurer who carries-out life assurance business is required to:a) have different accounts for the life assurance business;b) register all life assurance income and expenses in a different account, which shall constitute and belong to a distinct insurance fund, deemed in the present law as the life assurance fund;c) ensure the accounting of the life assurance fund in order to operatively identify the assets and liabilities belonging to this fund.Article 27
(1) The administration of life assurance and of the life assurance fund, including asset investment and evaluation, calculation of mathematical reserves, shall be made according to stipulations set by norms;(2) The insurer who carries-out a life assurance business must;a) initiate a life assurance business audit, consisting of the calculation according to fundamental and generally accepted actuarial principles, of liabilities belonging to life assurance fund, and of necessary mathematical reserves, as well as to evaluate the concordance between the life assurance fund and its assets; the audit shall be performed: every 12 months, or within shorter periods, if the Insurance Supervisory Commission considers it appropriate, by people with adequate qualifications nominated by the insurer and approved by The Insurance Supervisory Commission for this purpose;b) elaborate a report of the audit results provided for under let. a), deemed by the present law the life assurance report, whose format, content of additional information, documents and details and whose way of certification are set through norms;c) submit to the Insurance Supervisory Commission a copy of the life assurance report in not more than 4 months from the audit date, or within a longer period, if the deadline has been approved in writing by the Insurance Supervisory Commission, after a written and solidly motivated application received from the insurer;d) supply the information, documents and additional details, in the form requested by The Insurance Supervisory Commission for the evaluation of life assurance fund and its financial status, after submitting the life assurance report to the Insurance Supervisory Commission.Article 28
(1) In accordance with the terms of Art. 32, the life assurance fund assets shall warrant the absolute safety of life assured policyholders and shall be used only in relation to life assurance fund liabilities;(2) Producing duties - mortgage, deposit - on any assets belonging to the life assurance fund is forbidden, to the extent to which this breaches the previous paragraph.(3) The assurer may change for a reasonable market price some of the assets belonging to the life assurance fund with other assets that belong to it, as well as to use these assets for other purposes than those stipulated in par. (1), if it proves in writing to the Insurance Supervisory Commission that the value of the used assets is higher than the total value of liabilities afferent to the life assurance fund.Chapter VI Insurers' Re-establishment, Reorganisation and LiquidationArticle 29
If, after analysing the financial reports and after controls performed to an insurer, the Insurance Supervisory Commission finds that the insurer jeopardises the cover of liabilities towards the insureds, as a consequence to breaching the provisions of the present law, the Commission shall request the insurer's Administration Board to elaborate and implement a plan for financial re-establishment, which to comprise mainly:a) the limitation of the gross or net premiums written during a specific period, in order for these not to exceed certain amounts;b) interdiction of selling or renewal of insurance contracts of a specific type;c) interdiction of achieving certain investments;d) the increase of the paid-up social capital or paid-up free reserve fund;e) any measures considered to be needed for re-establishment.Article 30
(1) If it finds that the measures provided for under Art. 29 have not been effective, in order to prevent the insolvency of an insurer, the Insurance Supervisory Commission may request the Bucharest Court of Appeal to designate a special administrator for that insurer;(2) If the Bucharest Court of Appeal finds that the insurer cannot cover its payment liabilities or that its activity is not run in accordance with the specific prudential regulations it may order for the insurer's business and property to be administrated by a special administrator;(3) Bucharest Court of Appeal must deliver its decision in not more than 7 days from the petition;(4) The decision of the Bucharest Court of Appeal is final and the parties do not have to be summoned;(5) The duties, liabilities, competency limits and wages of the special administrator, as well as any other matters related directly or indirectly to the provisions of the present article shall be settled through norms;(6) After the appointment of a special administrator in the terms provided by the present law:a) all legal competencies held by insurer's significant persons shall be suspended and transferred to the special administrator during his designation period;b) the competencies, duties and the responsibilities of insurer's significant persons and shareholders, after the application of provisions in let. a), are set through norms.(7) During the special administrator's appointment period, shareholders' vote right regarding appointing and revoking administrators, as well as shareholders' right to dividends, the activity of the Administration Board and of the auditors, as well as their right to be remunerated, shall be suspended.(8) The Insurance Supervisory Commission shall require to the Bucharest Court of Appeal to revoke its decision delivered according to par. (2), and this may revoke its decision if it considers it is not necessary.Article 31
(1) An insurer may be liquidated after a Court decision delivered on the grounds of Romanian legislation regarding bankruptcy;(2) The notification of the Court by the Insurance Supervisory Commission based on its norms and regulations is to be made when the insurer's insolvency is identified. The insurer's insolvency is set based on the norms and regulations of the Insurance Supervisory Commission.Article 32
(1) In case of an insurer going into liquidation after a Court decision, its insureds have priority on the insurer's assets ahead of all other insurer's creditors, immediately after payment of liquidation expenses and according to terms stipulated in par. (2).(2) In the case of liquidating an assurer who carried out, or was authorised to carry life assurance business before its going into liquidation, the assets representing the life assurance fund shall only be used to cover the assurer's liabilities towards its assured policyholders.Chapter VII Insurance IntermediariesArticle 33
(1) Subject to the present law, the insurance intermediaries are the insurance agents and the insurance brokers.(2) Insurers cannot carry out insurance business through unauthorised brokers.Article 34
(1) A person may be an insurer agent if he has a written in force authorisation from an insurer - called hereinafter the agency contract - in order to act on his behalf. An insurance agent cannot be both employed and agent of the same insurance company or of another insurance company.(2) The insurance agents who are individuals have the right to register at the Chamber of Labour in their domicile territory, in order to maintain records of their work experience, and in order to contribute to the pension and social security funds.(3) An insurance agent cannot intermediate the same classes of insurance but for one insurer.(4) If an insured concluded an insurance through an insurance agent, the insurer on whose behalf the insurance agent carried out the business is liable for all insurance agent's acts and omissions in the relation with the insured.Article 35
(1) A body corporate may carry out an insurance broker business if granted with an authorisation of functioning from the Insurance Supervisory Commission;(2) In order to obtain an authorisation for functioning, the applicant shall submit to the Insurance Supervisory Commission the documents proving that he will observe the provisions of par. (5), let. a) - d).(3) The Insurance Supervisory Commission shall decide upon granting the authorisation for functioning within 30 days from the date of receiving the documents that show that the applicant shall observe the provisions of par. (5), let. a) - d).(4) An insurance broker cannot be registered at the Commerce Record without the authorisation for functioning issued by the Insurance Supervisory Commission according to the present law.(5) Any insurance broker must fulfill the following conditions:a) be registered as a body corporate;b) have a paid-up social capital in cash amounting no less than Rol 150 million; this value will be updated through norms by the Insurance Supervisory Commission;c) have an in force insurance policy for third party professional liability, according to provisions provided for by norms;d) have as only object of activity the insurance broker business;e) keep and submit to the Insurance Supervisory Commission, upon request, the books and accounting records which to prove and explain all transactions performed during his activity, including all details concerning the concluded insurance policies and any agreements with insurers.f) Comply with the requests of the Insurance Supervisory Commission concerning the reports, business management, as they will be set by norms.(6) The Insurance Supervisory Commission shall deny an insurance broker's application for authorisation if it finds that:a) the applicant's significant person has a criminal record;b) the executive manager's background and experience do not comply with the requirements issued by the Insurance Supervisory Commission for this position;c) the applicant's name misleads the public;d) the applicant does not comply with the provisions of par.(5).(7) The authorisation granted to an insurance broker may be withdrawn by the Insurance Supervisory Commission if:a) it finds that the insurance broker was in one of the situations stated in par. (6);b) the broker did not pay the insurance broker fees provided for under Art. 37.(8) The Insurance Supervisory Commission will publish at least yearly, in a widespread publication, an updated list of all authorised brokers and any other information considered necessary in the operation of the present law.(9) An insurance broker cannot be a significant shareholder or person for an insurer. An insurer cannot be a shareholder or e manager of an insurance broker.(10) Subject to the mandate received from the insureds, the insurance brokers are entitled to collect premiums on their behalf and to issue insurance documents.(11) The insurance brokers may establish professional unions and may adhere to specialised international unions, provided their compliance of liabilities stated in the establishment documents of these institutions.Article 36
(1) An insurance broker who applies for the authorisation according to Art. 35, shall pay when submitting the application, an authorisation fee of Rol 30,000,000; the value of the authorisation fee shall be periodically updated through a decision of the Insurance Supervisory Commission, according to the inflation rate delivered by the National Commission of Statistics.(2) Should the authorisation request be denied, the authorisation fee will not be refunded.(3) From the date of receiving the authorisation of functioning, during its period of validity, the insurance brokers shall pay a functioning fee that is set yearly by the Insurance Supervisory Commission, of maximum 0.3 % of the collected commissions within the period for which they are due.(4) The insurance brokers shall pay the functioning fee at dates established by norms.(5) For failing to pay the functioning fee as in per par. (3) within due course, delay penalties are calculated, according to in force regulations regarding amounts not paid within due course at the state budget.Chapter VIII Liabilities and PenaltiesArticle 37
No act or omission, by an insurer or its agent, that breaches any provision of the present law, of the law of the insurance contract, of insurance clauses or premiums, as well as of other elements related to the conclusion of the insurance contract, cannot be invoked by the insurer as a reason for cancelling an insurance contract.Article 38
(1) The promotion or advertising activity cannot be used by or on behalf of an insurer or insurance intermediary if it directly or indirectly misleads, or may mislead, or conceals, or misinterprets the truth to insureds or to potential insureds about the insurer's assets, organisational structure, financial situation, experience, position on the insurance market, insurance terms or any other relevant information.(2) The Insurance Supervisory Commission shall require the insurer to end these practices, subject to authorisation withdrawal.Article 39
(1) Breaching the provisions of the present law and of the norms approved in its application shall be ascertained by the Insurance Supervisory Commission and punished by the Board of The Insurance Supervisory Commission.(2) Provided that according to conditions in which they were done, they do not represent criminal offences, subject to the criminal law, breaches of the following provisions are civil offences:a) assets maintenance in Romania, as provided under Art. 18;b) activity management, as provided under Art. 20;c) approval in advance of the direct and indirect significant shareholders and of the insurer's significant person, according to the provisions under art. 5, let. e);d) keeping records and submitting financial reports by insurers and insurance brokers, according to the law and to provisions of norms approved within its application;e) maintenance of the minimum capital and solvency margin, according to Art. 16 and Art. 35;f) set-up and maintenance of technical reserves as per Art. 21;g) covering technical reserves with approved matching asset categories, according to Art. 22;h) the portfolio transfer, as per Art. 23;i) the life assurance fund and its administration, according to Art. 26 and Art. 27;j) protecting the interests of policyholders having life assurance policies, as per Art. 28;k) insurance agents' activity, as per Art. 34, par. (3);l) insurance brokers' activity, as per Art. 35, par. (5) let. d), e), f), par. (9);m) promotion and publicity, as in per Art. 39, par. (1);(3) The intentional or of guilt perpetration of any of the facts provided for under par. (2) shall be sanctioned by:a) written warning;b) limitation of operations;c) fine applicable to: insurers amounting from Rol 5,000,000 to Rol 50,000,000; to insurance brokers amounting from Rol 1,000,000 to Rol 5,000,000; to administrators, managers, executive managers or auditors amounting to 1 to 6 average company salaries for the month previous to the date of ascertainment;d) temporary or permanent interdiction for insurers to perform an insurance business in one or more categories of insurance, whereas for insurance brokers the temporary or permanent interdiction of performing the activity defined in Art. 2, par. (6);e) withdrawal of authorisation.(4) The penalty with fine may be applied cumulatively with each of the penalties provided for under par. (3), let. d) and e).(5) The decision for penalty is signed by the president of the Insurance Supervisory Commission, and comes into effect at the date of communication to the penalised person.(6) In individualising the penalty, the personal and actual circumstances of perpetrating the fact and the perpetrator's behaviour will be taken into account.(7) In ascertaining two or more contraventions, the fine provided for the worst contravention shall be applied.(8) The performance of the insurance business in or from Romania according to Art. 2, par.1 without the authorisation of the Insurance Supervisory Commission, by any person represents an offence, and it is punished with 3 months to 3 years of prison, or with a fine amounting from Rol 50,000,000 to Rol 100,000,000.(9) The amount of fines provided for under the present law shall be periodically updated by decisions of the Insurance Supervisory Commission, according to the inflation rate communicated by the National Commission for Statistics.(10) The fines established by this law and applied by the Insurance Supervisory Commission become income to the state budget.(11) The provisions of the present law are completed by the provisions of Law No. 32/1968*), regarding the ascertainment and penalisation of civil offences, to the extent to which they do not run counter the provisions of the present law.___________ Letter c) from par. (2) in art. 39 has been modified by Law no. 76 of March 12th, 2003 published in the Official Gazette no. 193 of March 26th, 2003. *) Law no. 32/1968 has been abrogated by Government Ordinance no. 2 of July 12th, 2001 published in the Official Gazette no. 410 of July 25th, 2001.Article 40
(1) According to Art. 8, par. (2), the person involved may appeal to the Court of Appeal against the decisions adopted by the Insurance Supervisory Commission, within 30 days from the decision date of notification, according to the law.(2) The appeal addressed to the Court of Appeal does not suspend, during its settlement, the measures set by the Insurance Supervisory Commission.(3) The settlement of the appeal shall be done urgently and pre-eminently.Article 41
The Insurance Supervisory Commission may at any time decide to alter or revoke any of the disposed measurers, if it finds these are no longer necessary.Chapter IX Transitory and Final DisposalArticle 42
(1) In all matters concerning the settlement of the insurance and reinsurance activity, the provisions of this law shall be put into effectiveness.(2) Any dispositions regarding insurance and reinsurance that are set by special laws are administrated by the Insurance Supervisory Commission.(3) In case of discrepancy between the provisions of the present law and any other legal acts, the provisions of the present law shall prevail.(4) Situations not being set by the provisions of the present law shall be settled according to commercial, civil, contravention, and foreign investments legislation, according to case.Article 43
(1) The following are exempted from taxes and fees: a*) insurance and reinsurance premiums, their afferent commissions, as well as insurance agents' and brokers' commissions; b*) the indemnifications, the insured sums and any other rights that are granted to the insurers, to beneficiaries or to the third persons, from the insurance of any kind;c) the transfer of values of investments and of insurance portfolio transfers occurred between insurers, from the assets of the ceding company to the assets of the receiving company, including as a consequence of divisions, mergers and portfolio transfer;d) contributions paid by insurers and insurance brokers to the professional unions in the field.(2) *** Abrogated by Law no. 414/2002._____________ *) The provisions referring to the exemption from paying the tax on income granted to the natural persons at lets. a) and b) of art. 43 are abrogated by art. 85 in G.O. No. 7/2001, such as it was changed by point 46 in Law No. 493/2002.Article 44
(1) The insurer or the insurance broker, who, at the time this law is coming into force, was authorised to perform insurance activities in the conditions of the legislation abrogated by this law, is still authorised to continue its activity for the following 4 months, from the date of the publication in the Official Gazette of Romania, Part I, of the Parliament decision to appoint the members of the Insurance Supervision Commission Council, and during this period it will come in conformity with the present law.(2) The insurers who cease their activities as a consequence of the enforcement of the present law and who did not proceed at a transfer portfolio, according to the provisos of Art. 23 will remain liable for the obligations undertaken.(3) Within 4 months from the date of the publication in the Official Gazette of Romania, Part I, of the Parliament decision to appoint the members of the Insurance Supervision Commission Council, the mutual societies that carry out an insurance activity at the date of coming into force of the present law shall be obliged to solicit and obtain the authorization of the Insurance Supervisory Commission, in accordance with the provisions under art. 12.(4) The provisions under arts. 13 and 36 are applied beginning with the date of the publication in the Official Gazette of Romania, Part I, of the Parliament decision of appointing the members of the Insurance Supervision Commission council.(5) Until the approval of the new accounting plan specific for the insurance business, the premiums effectively collected by an insurer shall be taken into account in calculating its income.(6) Within no longer than 6 months from the date of enforcement of the present law, the Insurance Supervisory Commission shall elaborate the new accounting plan and the specific accounting methodology, with the approval of the Ministry of Finance.(7) In order to cover its maintenance, equipping and functioning costs, with a reimbursable loan title, the Insurance Supervisory Commission shall appeal in the first year of activity from the date of the publication in the Official Gazette of Romania, Part I, of the Parliament decision of appointing the members of the Insurance Supervision Commission Council, at the available amount in the Fund for insured persons' protection established on the grounds of art. 60 from Law No. 136/1995 regarding the insurance and reinsurance business in Romania; the borrowed amount shall be reimbursed as soon as the financing sources established by this law shall be obtained.___________ Par. (1) in art. 44 has been modified by Government Ordinance no. 51 of March 29th, 2001 published in the Official Gazette no. 175 of April 6th, 2001. Par. (3) in art. 44 has been modified by Government Ordinance no. 51 of March 29th, 2001 published in the Official Gazette no. 175 of April 6th, 2001. Par. (4) in art. 44 has been modified by Government Ordinance no. 51 of March 29th, 2001 published in the Official Gazette no. 175 of April 6th, 2001. Par. (7) in art. 44 has been modified by Government Ordinance no. 51 of March 29th, 2001 published in the Official Gazette no. 175 of April 6th, 2001.Article 45
(1) The Insurance Supervisory Commission will be constituted when this law is coming in force.(2) The members of the Insurance Supervisory Commission Board shall be appointed within 60 days from publishing the law in the Official Gazette of Romania, Part I.(3) Up to the date of appointing the members of the Insurance Supervisory Commission Council, the Supervisory office for insurance and reinsurance activities within the Ministry of Finance, practices the attributions given in the competence of the Insurance Supervisory Commission, provided under art. 5, with the exception of that provided under let. j).(4) The attributions of the Supervisory office for insurance and reinsurance activities within the Ministry of Finance, the legal competencies of the Ministry of Finance, as well as the ones of the Romanian Government, as they are provided for on the date of coming into force of the present law, under arts. 5, 7, 53, 65 and 67 from Law No. 136/1995 are taken over by the Insurance Supervisory Commission on the date of appointing the members of the Insurance Supervisory Commission Council, date when the Supervisory office for insurance and reinsurance activities ceases its activity.(5) The employees of the Supervisory Office for Insurance and Reinsurance Activities within the Ministry of Finance will be transferred, on similar positions, to the Insurance Supervisory Commission.___________ Par. (3) in art. 45 has been modified by Government Ordinance no. 116 of June 29th, 2000 published in the Official Gazette no. 311 of July 5th, 2000. Par. (4) in art. 45 has been modified by Government Ordinance no. 116 of June 29th, 2000 published in the Official Gazette no. 311 of July 5th, 2000.Article 46
From the date of enforcement of this law, the Law No. 47/1991 concerning the establishment, organisation and functioning of commercial companies in the insurance field published in the Romanian Official Journal, Part I, No. 151 from July 19, 1991; point V of the Government Decision No. 23/ 1992 regarding alterations of some civil offence sanctions; published in the Romanian Official Journal, Part I, No. 213 from August 28th 1992; the Government Decision No. 27/ 1997 for completing the Law No. 136/ 1995 regarding the insurance and reinsurance in Romania, published in the Romanian Official Journal, Part I, No. 208 form August 26, 1997; the Law No. 48/ 1998 regarding the approval of the Government Decision No. 27/ 1997 for completing the Law No. 136/ 1995 regarding the insurance and reinsurance in Romania, published in the Romanian Official Journal, Part I, No. 102 form March 4, 1998; the Government Decision No. 574/ 1991regarding the attributions of the Supervisory Office for Insurance and Reinsurance Activities, published in the Romanian Official Journal part I, No. 182 from September 11, 1991; Art. I from the Government Decision No. 789 regarding the amendment and completion of the Government Decision No. 574/ 1991, regarding the competencies of the Supervisory Office for Insurance and Reinsurance Activities, as well as the government Decision No. 788/ 1992 regarding the organisation and functioning of the Ministry of Finance, published in the Romanian Official Journal, Part I, No. 33 from February 3, 1994, as well as any other provisions running counter to this law, shall be annulled.Article 47
The Insurance Supervisory Commission will adopt and issue:1. within 3 months from the appointment of the members in the Insurance Supervisory Commission Board, the following regulations:a) the classes of insurance that can be performed;b) information and documents required for the authorisation procedure;c) minimum value and methods of calculation of the solvency margin;d) the insurer's insolvency;e) the terms of administration of the life insurance fund, the investments and asset evaluation, the calculation of mathematical reserves, as well as other aspects concerning the actuarial norms;f) the categories of assets approved to cover insurer's technical reserves, as well as rules regarding the dispersion of investments;g) elaborating the calculation and records methodology for minimal technical reserves in general insurance business, subject to the present law;2. in no longer than 6 months from the appointment of the members in the Insurance Supervisory Commission Board, the regulations regarding:a) up-dating minimum levels for:– paid-up social capital of insurance, insurance-reinsurance and reinsurance companies,– paid-up social capital of insurance brokers,– paid-up free reserve fund of an insurer established as a mutual company;b) up-dating the authorisation fees and setting payment deadlines for operation fees foreseen by the present law;c) information, documents and certificates required for elaborating reports provided for under this law;d) the format and content of financial reports, the life insurance report included;e) other categories of technical reserves, besides the ones in Art. 21, par. (1);f) the information to be provided by insurance brokers' reports, aspects regarding their behaviour and business management, the minimum cover of their professional liability policy, as well as the nature of the operations which can be carried out;g) the organisation, functioning and competencies of the Insurance Experts Body;h) types of insurance to which the regulations of this law do not apply, subject to conditions and terms set by the Insurance Supervisory Commission;i) the responsibilities, competencies, conditions and any other matters concerning the special administrator, as well as the competencies of the insurer's significant persons, after his appointment;j) criteria for the preliminary approval of significant persons and significant shareholders;k) the operation of this law within the compulsory insurance field;l) the regulations concerning the confidentiality of information;m) the portfolio transfer. This law was adopted by the Senate during the meeting from March 6th, 2000, with the observance of the provisions under art. 74 par. (1) in the Constitution of Romania. THE PRESIDENT OF THE SENATE MIRCEA IONESCU-QUINTUS This law was adopted by the Chamber of Deputies during the meeting from March 7th, 2000, with the observance of the provisions under art. 74 par. (1) in the Constitution of Romania. p. THE PRESIDENT OF THE CHAMBER OF DEPUTIES MIRON TUDOR MITREA _____________
