RESOLUTION OF THE NATIONAL COMMISSION ON THE FINANCIAL MARKET OF THE REPUBLIC OF MOLDOVA

of January 21, 2011 No. 2/1

About approval of the Regulations on margins of solvency and liquidity rate of society 

For the purpose of execution of provisions of part (6) Art. 16, item d) parts (6) Art. 123 of the Law on insurance or reinsurance activity No. 92/2022 (Official monitor of the Republic of Moldova, 2022, No. 129-133, Art. 229) National commission on the DECIDES: financial market

For the purpose of execution of provisions of Art. 30 of the h. (4) and h. (7), Art. 34 of the h. (10) the Law 407-XVI of 21.12.2006 "About insurance" (The official monitor of the Republic of Moldova, 2007, No. 47-49, the Art. 213) the National commission on the DECIDES: financial market

1. Approve Regulations on margins of solvency and liquidity rate of society, according to appendix 1.

2. To societies till 30.09.2011 to give the assets accepted in covering of technical reserves and the minimum margin of solvency, in compliance with the regulations established in Provision Item 18.

3. Recognize invalid some regulations of the State inspectorate for supervision of insurance and non-state pension funds, according to appendix 2.

Appendix No. 1

to the Resolution of the National commission on the financial market of the Republic of Moldova of January 21, 2011 No. 2/1

Regulations on margins of solvency and liquidity rate of society 

Chapter I. General provisions

1. This Provision establishes procedure of payments and the reporting, structure and components of the minimum margin of solvency (MMS) and free (actual) margin of solvency (SMP), categories of assets accepted in covering of technical reserves and the minimum margin of solvency, regulation of distribution of placements and liquidity rate of society.

1-1. In content of the Provision of the reference to the minimum margin of solvency are read as references to warranty minimum margin of solvency if other is not provided.

1-2. These Regulations are applied to insurance or reinsurance companies which licenses were revoked on the date of entry into force of Regulations about own means, assessment of the assets and liabilities, assets allowed for covering of technical reserves and the requirement to the minimum capital, solvency and liquidity of the insurance or reinsurance company approved by the decision of Executive committee of National Bank of Moldova No. 328 of December 19, 2024.

2. For the purpose of this provision the terms and determinations provided below have the following value:

quick assets - cash liquidity in cash desk, on accounts, deposit accounts urgent or poste restante which can be withdrawn without restrictions, and securities which are easily converted into money without imposing of sanctions;

claimed losses - the paid losses increased by changes of reserve of not settled losses for certain accounting period;

declared gross - losses – the come losses, to deduction of the overcautious person's share corresponding to them;

declared net - losses - come gross - losses less the overcautious person's share from declared gross - losses;

funds of insurers – the total amount of assets, debts of society, and one third of the size of the minimum margin of solvency accepted by this Provision to covering contractual according to the standard rates provided by placement regulations;

funds of society - the total amount of the assets accepted and provided by this Provision, others than what is represented by funds of insurers;

free (actual) margin of solvency - the amount on which the size of assets, excepting assets with zero cost, exceeds the debt size;

the minimum margin of solvency – the solvency margin calculated according to Item 8 and/or Item 9 of this provision which size cannot be below the minimum size of the authorized capital established by the law;

warranty minimum margin of solvency – the size of the minimum margin of solvency of society;

contractual debts (the debt accepted according to the policy of assurance) - the total amount of insurance technical reserves;

the standard rate of sufficiency of solvency - ratio between the size of actual margin of solvency and size of the minimum margin of solvency;

the risk amount - difference between insurance compensation and the mathematical reserve calculated according to insurance contracts which cover risk on death case;

insurance or reinsurance company which license was revoked (further – society) – the society which had the license for implementation of insurance or reinsurance activity and having the payment obligations assumed based on insurance contracts and to which part provisions (6) are applied by Art. 16 and, depending on circumstances, part (6) Art. 123 of the Law No. 92/2022, on which the judgment is not made on initiation of process of insolvency and/or the judgment about liquidation process initiation.

2-1. The actuary of society shall check the assets accepted in covering of technical reserves, calculate the minimum and free margin of solvency, warranty minimum margin of solvency, the standard rate of sufficiency of solvency and liquidity rate according to appendices to this Provision. When implementing actuarial calculations of society shall submit the documents requested by the actuary and information which are necessary for it for creation and preparation of obligatory actuarial calculations and conclusions, and bears responsibility for reliability of the provided data. The actuary bears responsibility for correctness and accuracy of the constituted actuarial calculations, estimates and conclusions.

Chapter II. Determination of structure and components of margin of solvency of society

3. Society shall determine asset cost for calculation of free margin of solvency and constitute the report of the Form A – Assets according to appendix No. 1 separately on life insurance and general insurance.

3-1. Detailed data on each asset of certain category and on its cost are represented by society in the special asset register, the technical reserves accepted in covering, separately on life insurance and general insurance according to appendix No. 7 to this Provision.

4. The following assets are recognized with zero value:

1) intangible assets of society;

3) the advance payments issued in any form;

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