of December 21, 2006 No. 407-XVI
Considering aspiration of the Republic of Moldova to economic integration on the basis of acceptance and realization of the economic and commercial regulations and rules existing in European economic space, for the purpose of development of prudential regulatory base for the financial markets and system of supervision, equivalent acting in the European Union, and also developments of the insurance market.
The parliament adopts this organic law.
In this law the following basic concepts are used:
insurance activity - activities which generally include submission of offers on the conclusion of insurance contracts and reinsurance, negotiating and the conclusion of such agreements, receipt of awards, settlement of damage, implementation of actions for expense recovery and recourse activities;
intermediary activities in insurance and/or reinsurance - activities for representation or the offer of insurance contracts and/or reinsurance or implementation of other actions for preparation of the conclusion of the specified agreements, for the conclusion of these agreements or for rendering assistance to administration of such agreements, in particular in case of presentation of requirements about compensation of damage.
Such activities are not considered intermediary in insurance and/or reinsurance if it is performed by the insurer or his employee who acts under the insurer liability. Also provision of information in accidental procedure in the context of other professional activity which purpose is not provision to clients of services in the conclusion or administration of the insurance contract and/or reinsurance, administration of damage of the insurer (overcautious person) at the professional level, and also on compensation of damage and assessment by the expert of claim advices is not considered intermediary activities in insurance and/or reinsurance;
the actuary - the physical person specialized in area of assessment of financial risks by actuarial methods (statistical, mathematical and economic), having the qualification certificate issued by supervision body;
the significant shareholder - physical person or legal entity which independently either with mediation or in cooperation with other physical persons or legal entities, being effective in coordination, exercises the rights concerning shares, components at least 10 percent of shares with voting power of the insurer (overcautious person) or which has significant effect on management of the insurer (overcautious person);
the agent bankashurans - the commercial bank, savings and loan association, non-bank credit institution based on the order of the insurer having the right to sign insurance contracts with the third parties from name and at the expense of the insurer in accordance with the terms specified in the agreement of the order signed with it;
insurance agent - the physical person or legal entity which is engaged in professional activity based on the order of the insurer, having the right to sign insurance contracts with the third parties from name and at the expense of the insurer in accordance with the terms specified in the agreement of the order signed with it without having the status of the insurer, the overcautious person, the agent bankashurans or the insurance and/or reinsurance broker;
insurance - transfer of possible risk, including financial losses and/or material damage, the insurer to the insurer according to the insurance contract;
the insurer - person who concluded or for benefit of whom the insurance contract is signed with the insurer;
the insurer (overcautious person) - the legal entity registered in the Republic of Moldova who according to this law has the license for implementation of insurance (reinsurance) activity;
the assistant to the broker - physical person or legal entity which based on the contract with the insurance and/or reinsurance broker is authorized by the power of attorney and under covering of the agreement of the professional civil responsibility of this broker to perform the activities necessary for accomplishment of the broker order;
assistans - rendering by the insurer (overcautious person) either insurance and / or reinsurance the broker within personal insurance of assistance to the insurer (beneficiary) in case of approach of insurance risk, consisting in the organization of provision to the insurer (beneficiary) of technical, medical, financial, legal services;
supervision body - the National commission on the financial market;
the vygodopriobretayushchy owner – physical person which, eventually, owns or controls the potential acquirer or the direct or indirect owner of the share in the authorized capital of the insurer (overcautious person) equal or exceeding essential participation;
the insurance and/or reinsurance broker - the legal entity registered in the Republic of Moldova who according to this law conducts negotiations for the benefit of the clients - physical persons or legal entities, insurers (reinsurers) or potential insurers (reinsurers) - according to the conclusion of insurance contracts (reinsurance) provides services in consultation and inspection of risk and renders assistance throughout operation of agreements or in connection with settlement of damage, as necessary;
insured event - the insurance risk provided by the insurance contract with which approach there is right of the insurer to receipt of compensation or insurance payment from the insurer;
acquisition expenses - the expenses connected with the conclusion of insurance contracts. Include as direct costs, such as commission fees for the conclusion of agreements and expenses on opening of case or on adoption of insurance agreements in portfolio, and indirect expenses, such as the promotional costs or administrative expenses connected with processing of statements and issue of insurance policies;
joint insurance - the action consisting that two or more insurers assume the same risk at the same time each of them undertakes certain share of risk;
licensing conditions - set of the requirements and conditions established by provisions of this law, Law on obligatory civil liability insurance for the damage caused by vehicles, No. 414/2006, and also other legal acts which observance by the applicant and the owner of the license is obligatory when implementing activities for insurance (reinsurance) or intermediary activities in insurance and/or reinsurance;
person signing the insurance contract - the person signing the insurance contract on risk insurance concerning other person and undertaking to pay to the insurer insurance premium without receipt of the status of the insurer;
the correspondent - any insurer or other legal entity appointed one or more nonresident insurers of the Republic of Moldova from prior consent of National bureau of insurers of vehicles for the purpose of settlement and permission of statements for compensation of the damage caused by the motor transportation incidents which happened in the territory of the Republic of Moldova in case of which the insurer or nonresident insurers issued the insurance policy valid for the territories of the Republic of Moldova;
the franchize - the part of the damage suffered by the insurer established in the form of fixed value or interest rate from insurance indemnity or insurance sum and provided in the insurance contract;
the insurance intermediary - the physical person or legal entity having the status of insurance broker, insurance agent or the agent bankashurans and performing intermediary activities in insurance for certain remuneration;
the reinsurance intermediary - the reinsurance broker performing for remuneration mediation generally in reinsurance activities;
the broker order - the agreement of the order signed between the insurer (reinsurer) or the potential insurer (reinsurer) as the client and the insurance and/or reinsurance broker according to which the last is authorized to conduct negotiations according to the conclusion of the insurance contract or reinsurance to render assistance to the conclusion and throughout validity or in connection with settlement of damage, as necessary;
essential participation – immediate or indirect possession by person in at least than 10 percent of the authorized capital or voting powers of the insurer (overcautious person) or any other opportunity to have significant effect on management of the insurer (overcautious person) in which there is participation;
professional participants of the insurance market - the insurer (overcautious person), the intermediaries in insurance and/or reinsurance and the actuary performing the activities based on this law;
the official - person authorized by the law, the charter or the administrative act to perform administrative functions independently or together with other persons, from name and at the expense of the insurer, the overcautious person or insurance and/or reinsurance brokers, namely: member of council of society, member of executive body, member of audit committee, chief accountant, head of branch, etc. Position assignment of the member of council of society and the member of executive body affirms previously supervision body. Obligations of members of council of society and members of executive body cannot be transferred to other persons. The official shall conform to the requirements established by regulations of supervision body hold position and fulfill duties within only one professional participant of the insurance market;
gross - the award added - the award added by the insurer (overcautious person) according to the insurance contract (reinsurance) to deduction from it any amounts;
net - the award added - gross - the award added by the insurer (overcautious person) according to the insurance contract (reinsurance) after deduction of part of the award transferred to reinsurance;
risk - future probable event which can cause damage to property, working capacity, life or health of person;
insurance risk - phenomenon, event or group of the phenomena or events provided in the insurance contract which, having come, can cause damage to insured property or person. (In life insurance the phenomenon of survival and phenomenon of death fit the definition of insurance risk.);
reinsurance - transfer partially or in full the insurance risks accepted by the insurer called by the reinsurer (assignor), to other insurer called by the overcautious person (cessionary) who, in turn, assumes obligation to pay the corresponding part of the insurance indemnity which is subject to payment;
proportional reinsurance - distribution of insurance sums is pro rata to distribution of risk between reinsurance agreement parties;
non-proportional reinsurance - reinsurance in which the overcautious person (cessionary) undertakes the obligation to make insurance payment in case of approach of the cases provided in the insurance contract, in the amount of, exceeding own deduction of the reinsurer (assignor);
own deduction - part of risk which remains under the insurer liability after transfer of risk in reinsurance;
the subagent - the physical person who is not the head of insurance agent - the legal entity, having the status of the employee according to the employment contract signed with insurance agent, and acting from his name and under covering of the agreement of the civil responsibility of insurance agent - the legal entity.
(1) the Subject of this law is the regulation of organization and functioning of insurers and overcautious persons, insurance and/or reinsurance intermediaries, and also supervision of their activities.
(2) Operation of this law does not extend to the national social insurance, compulsory medical insurance, compulsory national insurance of separate categories of persons and to non-state pension funds.
(3) In the processes of licensing, the notification and approval provided by this law, provisions of the Law on regulation of business activity by permission No. 160/2011 are not applied.
Object of insurance are the valuable interests which are not contradicting the legislation of the Republic of Moldova, connected with:
a) identity of the insurer or beneficiary of insurance, his life, health and working capacity (personal insurance);
b) property, credits and guarantees, financial losses of physical persons and legal entities (property insurance);
c) responsibility of the insurer to physical persons or legal entities for the damage (civil responsibility insurance) caused to them.
The legal base of activities in insurance field and reinsurance, development and strengthening of the relations between insurers, insurers and the third parties is the Constitution of the Republic of Moldova, the Civil code of the Republic of Moldova, this law, other legal acts, regulations of supervision body adopted in pursuance of this law and also international agreements in the field which party is the Republic of Moldova.
(1) On method of implementation two forms of insurance differ: obligatory and voluntary (facultative).
(2) In compulsory insurance of the relation between the insurer and the insurer, the rights and obligations of each of the parties, conditions of insurance and procedure for their application are established by the law.
(3) In voluntary (facultative) insurance of the relation between the insurer and the insurer, the rights and obligations of each of the parties are established by the insurance contract. Conditions of voluntary (facultative) insurance are established by the insurer according to the legislation and regulations of supervision body.
(4) the Notification and establishment of approach of insurance risks, damage assessment, determination and payment of insurance indemnities and insurance compensations in compulsory insurance are performed according to the law, and in voluntary (facultative) insurance - in accordance with the terms of insurance and the insurance agreement.
(1) the Insurance sum represents the maximum limit of the insurer liability in case of approach of event in connection with which the insurance contract is signed.
(2) In life insurance the amount which is subject to payment to the insurer or the beneficiary of insurance in case of approach of the event provided by the insurance contract represents insurance compensation.
(3) In proprietary insurance or the civil responsibility the amount which the insurer shall pay to the insurer for the purpose of compensation of the damage caused by insured event represents insurance indemnity.
(4) the Insurance compensation and insurance indemnity are paid by the insurer in cash. Compensation of damage by recovery or repair of property, rendering services is allowed only from written consent of the insurer.
(5) If actions for ascertaining of insured event continue more than one month, the insurer, the beneficiary of insurance and/or the victim has the right to demand from the insurer of advance payment from insurance compensation or insurance indemnity in the amount of, pro rata to the payment obligation provided that this obligation and its size do not raise doubts. The insurer has no right to refuse advance payment, requested by specified persons.
(6) in case of violation of payment due date of insurance compensation or insurance indemnity because of the insurer the last pays to the insurer, the beneficiary of insurance and/or the victim penalty fee in the amount of 0,1 of percent of compensation amount or compensation for each day of delay.
Police agencies, fire brigades, public and private medical institutions, if necessary other bodies of the public power and organization, and also the face of private law, authorized to investigate motor transportation incidents or other accidents or possessing information and data which can help investigation of circumstances, represent within 15 working days, at the request of insurers (overcautious persons), information and documents on the reasons and circumstances of approach of insurance risks and the caused damage for the purpose of determination and payment by insurers of insurance indemnities and insurance compensations.
(1) the Insurance premium represents the amount which the insurer shall pay to the insurer in case of receipt of the insurance policy according to the procedure and the terms provided by the insurance contract in exchange for the insurance risks accepted by the insurer.
(2) Payment of insurance premium is made, by agreement of the parties, in complete size or by installments in the terms provided by the agreement in the location of the insurer or his representatives if other is not provided in the insurance contract.
(3) the Insurance rate represents rate of insurance premium which is paid by the insurer from unit of insurance sum for certain period of time.
(4) Insurers and insurance intermediaries shall apply the insurance premiums and rates on compulsory insurance established according to special laws.
(5) In case of voluntary (facultative) insurance insurance premiums, rates and benefits are calculated the insurer. The specific size of insurance rate is established by the insurance contract by agreement of the parties.
(5-1) When calculating insurance premiums, rates and benefits the differentiated establishment of awards, rates and benefits on the basis of sex is forbidden to insurers (overcautious persons).
(6) the Supervision body obliges insurers to collect and systematize the main statistical data according to its standard forms. These data are used by them when calculating insurance premiums for each class of insurance.
(7) the Proof of payment of insurance premium is assigned to the insurer. Any document provided by the current legislation proving payment can serve as the confirmatory evidence.
(8) If insurance interest stops during the insurance period, the insurer pays to the insurer only that part of award which corresponds to the period during which the insurer actually bore the insurance responsibility even if the period of insurance could stop or stop at the initiative of the insurer.
(9) the Insurer upon the demand of the insurer has the right to compensate insurance premiums which the insurer until the end of insurance year, based on any agreement any insurance indemnity and/or insurance compensation which are due to the insurer or the beneficiary shall pay him.
(1) the Insurance activity is performed on two categories: life insurance and general insurance.
(2) Activities of the insurer are performed on the basis of the license granted only for activities for category "life insurance" or for activities for category "general insurance".
(3) the insurance Classes belonging to the categories specified in part (1), are provided in appendix No. 1, being integral part of this law.
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