The laws in force regulating the insurance activity as regards the organizational and functioning aspect and the substantial law as well

Law no. 32/2000 regarding the insurance business and insurance supervision, amended and completed by Law no. 76/2003, Law no. 403/2004 and Emergency Government Ordinance no. 201/2005 and Law no 113/2006. This law regulates the set up, organization and functioning of the insurance Supervisory body, which according to this law, is named the Insurance Supervisory Commission as well as the set up, organization and functioning of the insurance companies in Romania. The law has following Chapters:

1. Chapter I deals with the object of the law, the definitions of certain terms and categories of insurance;
2. Chapter II deals with the Insurance Supervisory Commission, the structure, the appointment of the members of the Board of Insurance Supervisory Commission, legal requirements to become a member of Board, the legal means of supervision, authorities, rights to legislate by Norms, given in the fulfillment of the law, the decisions' issuing on concrete matters of the supervision and control activities, the right of authorization the set up and functioning of an insurance company and the insurance brokers;
3. Chapter III deals with the authorization of insurers and the legal requirements to keep themselves in the market;
4. Chapter IV regulates insurers' activity in the insurance market in Romania, their obligations as regards the reports on statistical data and synthetic financial indexes that confirm the keeping up of all legal conditions for functioning for each insurer;
5. Chapter V regulates the life insurance;
6. Chapter VI deals with the re-establishment, reorganization and the liquidation of insurers;
7. Chapter VII regulates the intermediation in insurance. The Chapter has legal norms regarding the insurance agents and the insurance brokers, the set up and functioning of the insurance brokers, minimum capital requirements and obligation in front of the Insurance Supervisory Commission;
8. Chapter VIII and IX deals with the responsibilities and sanctions, final and transitory provisions respectively.

By the nature of its provisions, the Law no.32/2000 regarding the insurance companies and the insurance supervision states that its provisions be made complete by Norms given by the Insurance Supervisory Commission, in accordance with its authorities conferred by the law.

The law provides an obligation for the Insurance Supervisory Commission to issue Norms.

The Norms given so far by the Insurance Supervisory Commission are:

Norm no. 1/2001 regarding the value and the payment date of the functioning tax owned by the insurers and the insurance brokers, published in the Official Gazette Part I no.304 of 18th July 2001, put into force by the Order of the President of the Insurance Supervisory Commission no.1/2001 published in the same Official Gazette;

Norm no. 2/2001 regarding the information and the documents required for the insurers' authorization published in the Official Gazette no. 501 of 24th August 2001 put into force by the order of the President of the Insurance Supervisory Commission no. 2/2001 published in the same Official Gazette.

Norm no. 3/2001 regarding the classes of insurance that can be done by the insurance companies published in the Official Gazette Part I no. 501 of 24th August 2001 put into force by the Order of the President of the Insurance Supervisory Commission no.3/2001 published in the same Official Gazette.

Norm no. 4/2001 regarding the information and the documents required for the insurance brokers' authorization published in the Official Gazette Part I no.556 of 6th September 2001 put in to force by the Order of the President of the Insurance Supervisory Commission published in the same Official Gazette.

Norm no. 5/2001 regarding the method of calculation and bookkeeping of the minimal technical reserves for the general insurance activity republished in the Official Gazette Part I no. 679 of 26th October 2001 put into force by the Order of the President of the Insurance Supervisory Commission no. 7/2001 published in the same Official Gazette.

Norm no. 6/2001 regarding the categories of the assets admitted to represent the technical reserves of the insurer doing general insurances, published in the Official Gazette no.666 of 23rd October 2001 put into force by the Order of the President of the Insurance Supervisory Commission no. 6/2001 published in the same Official Gazette.

The Order of the President of the Council of Insurance Supervising Commission no.8/2001 for the approval of the Norms regarding the fulfilment of the law in the field of the compulsory third party liability motor insurance published in the Official Monitor of Romania Part I no.765 of 3oth November 2001

Order no. 9 of the 27th December 2001, issued by the president of the Insurance Supervising Commission to enact the Norms regarding the conditions for the administration of the Life Insurance Fund, the investments and the evaluation of assets as well as the calculation of the mathematical reserves, published in the Official Gazette of Romania, Part I. no.43 of 22nd January 2002.

Order no.10 of the 27th December 2001, issued by the President of the Insurance Supervising Commission to enact the Norms regarding the minimum limit of the solvability margin of the insurers selling the general insurances and its methodology of calculation, published in the Official Gazette of Romania Part I, no. 43 of 22nd January 2002.

Order no.11 of the 27th December 2001, issued by the president of the Insurance Supervising Commission to enact the Norms regarding the minimum limit of the solvability margin of the insurers selling life insurances and its methodology of calculation, published in the Official Gazette of Romania, Part I, no.43 of 22nd January 2002.

Order no.12 of the 27th December 2001, issued by the President of the Insurance Supervising Commission regarding the insurer's insolvability and the special administrator, published in the Official Gazette of Romania, Part I, no.43 of 22nd January 2002.

Order no.13 of the 27th December 2001, issued by the president of the Insurance Supervising Commission to enact the Norms regarding the form and the contents of the financial reports, including the report for the life insurances as well as the information, documents and the certifies to replace these reports published in the Official Gazette of Romania, Part I, no.43 of 22nd January 2002.

Order no.14 of the 27th December 2001, issued by the President of the Insurance Supervising Commission to enact the Norms regarding the transfer of portfolio, published in the Official Gazette of Romania, Part I, no.43 of 22nd January 2002

Order no. 15 of the 27th December 2001, issued by the President of the Insurance Supervising Commission to enact the Norms regarding the regime of the confidentiality of information, published in the Official Gazette of Romania, Part I, no.43 of 22nd January /2002.

Order no.16 of the 27th December 2001, issued by the President of Insurance Supervising Commission to enact the Norms regarding the alteration and the completing the Norms no.2/2001 regarding the information and the documents required for the authorization the insurers and the criteria for approval of the insurers' significant holding, published in the Official Gazette of Romania Part I, no.43 of 22nd January 2002.

The Common Order no. 2328/ 2390 of 28th December 2001 issued by the Ministry of Public Finance and the Insurance Supervising Commission regarding the approval of the accounting regulations specific to the insurance field harmonized with the European Directives and the International Standards of Accounting published in the Official Gazette of Romania, Part I, no. 34 twice of 18th January 2002.

Order no.1 of 23rd January 2002 regarding the alteration and the completion the Norms no. 6/2001 regarding the categories of assets admitted to represent the insurers' technical reserves selling general insurances, the rules of spreading the placements as well as the liquidity coefficient, enacted by the order of the President of the insurance Supervising Commission no. 6/2001, published in the Official Gazette of Romania, Part I, no. 71 of 31st January 2002.

Order no. 2 of 25 March 2002 to enact the Norms regarding the establishment the selection criteria for the agreed legal persons authorized to evaluate the insurance companies assets, published in the Official Gazette of Romania, Part. I, No. 224 of 3rd April 2002.

Order of the president of the Insurance Supervising Commission no.3 of 5th April 2002 to enact the Norms regarding the set up the use and the administration of the Fund of the insureds protection published in the Official Gazette, Part. I No. 327 of 16th May 2002.

Order of the president of the Insurance Supervising Commission no.4 of 10th April 2002 to enact the prudential Norms regarding the coverage of the natural catastrophic risks, published in the Official Gazette, Part. I, No. 359 of 29th May 2002.

Order of the president of the Insurance Supervising Commission no.5 of 17th June 2002 to approve the Official List containing the legal persons authorized in the evaluation of the insurance companies' assets, agreed by the Insurance Supervising Commission according to the provisions of the norms enacted by the Order no.2/2002, published in the Official Gazette, Part. I No. 468 of 1st July 2002.

Order of the president of the Insurance Supervising Commission no. 6 of 23rd July 2002 to enact the Norms regarding the minimum limit of the insurers' paid in social capital or the paid in fund of free reserve, published in the Official Gazette, Part. I No. 554 of 29th July 2002.

Order of the president of the Insurance Supervising Commission no.8 of 2nd October 2002 to enact the Norms regarding the prudential steps to sell the third party liability motor insurance against the risk of bodily injury and the property damages outside territory of Romania, published in the Official Gazette, Part. I No. 740 of 10th October 2002.

Order of the President of the Insurance Supervising Commission no. 9 of 2nd December 2002 for the approval of the Norms regarding the fulfillment of the law in respect of the compulsory Third Party Liability motor insurance and the authorization of the insurers to sell such insurance in 2003, published in the Official Gazette, Part. I No. 882 of 7th December 2002.

Order of the President of the Insurance Supervising Insurance no.10 of 9th December 2002 for the approval of the Norms regarding the establishment of the budget of the income and expenses for the Insurance Protection Fund published in the Official Gazette of Romania, part I no.905 of 12th December 2002.

Order of the President of the Insurance Supervising Commission no. 11 of 17th December 2002 regarding the alteration of the Order of the President of the Insurance Supervising Commission no. 9/2002 for the approval of the Norms regarding the fulfillment of the law in respect of the compulsory Third Party liability motor insurance and the authorization of the insurers to sell such insurance in 2003, published in the Official Gazette, Part. I No. 920 of 17th December 2002.

Order of the President of the Insurance Supervising Insurance no.3101 of 10th January 2003 for the approval of the Norms regarding the Register of the insurers and the insurance brokers published in the Official Gazette, Part I, no.97 of 17th February 2002

Order of the President of the Insurance Supervising Commission no. 3102 of 7th March 2003 regarding the alteration and completion of the Norms regarding the form and the contents of the financial reports inclusive of the life insurance reform as well as the information, documents and certifications necessary to draw up these reports enacted by the Order of the President of the Insurance Supervising Commission no.13/2001, published in the Official Gazette, Part. I No. 158 of 12th March 2003.

Order of the President of the Insurance Supervising Commission No. 3103 of 18th February 2003 to enact the Norms regarding the conditions to be met by the persons authorized to evaluate the assets represented by the lands and the constructions held by insurers, published in The Official Gazette of Romania nr.117 of 24th February 2003.

Order of the President of the Insurance Supervising Commission No. 3104 Of 26th February 2003 to approve the methodological norms regarding the draw up, checking and centralizing the annual financial reports of the insurance, insurance-reinsurance and reinsurance companies as well as those of the insurance brokers for 2002, published in The Official Gazette Part I No.216 of 2ND April 2003.

Order of the President of the Insurance Supervising Commission No. 3105 Of 26TH February 2003 to approve the specifications on certain steps referring to the conclusion of the financial year for 2002 at the commercial insurance, insurance-reinsurance and the reinsurance companies as well as the insurance intermediating companies who, according to the Law of accountancy no.82/1991, republished, have the obligation to draw up annual financial reports. published in The Official Gazette No. 216 of 2ND APRIL 2003.

The Law no.76 for the alteration and the supplementation of the Law no.32/2000 regarding the insurance companies and the insurance supervision, published in the Official Gazette, Part I no.193 of 26th March 2003

Order of the President of the Insurance Supervising Commission no. 3106 of 17th April 2003 for the alteration and supplementation of the Norms regarding the minimum limit of insurers the paid in social capital and the paid in free reserve fund respectively, enacted by the Order of the President of the Insurance Supervising Commission no.6/2002, published in the Official Gazette, Part. I No. 276 of 19th April 2003.

The Order of the President of the Insurance Supervisory Commission no. 3107 of 4th June 2003 for the approval of the methodological norms regarding the drawing up, checking and the centralizing the accounting reports of the of insurance, insurance - reinsurance and the reinsurance commercial companies as well as the insurance brokers dated 30th June 2003, published in the Official Gazette, Part I no. 427 of 18th June 2003. The order has as attachment, as an integral part of it a methodological

Order of the President of the Insurance Supervisory Commission no. 3108 of 18th August 2003 for the alteration and supplementation of the Norms regarding the information and the documents required for authorizing the insurance brokers enacted by the Order of the President of the Insurance Supervisory Commission no.4/2001, published in the Official Gazette, Part. I No. 608 of 27th August 2003.

Order of the President of the Insurance Supervisory Commission no. 3109 of 28th October 2003 to enact the Norms regarding the method of calculation and the bookkeeping of the minimal reserves for the general insurances published in the Official Gazette, Part I no.770 of 3rd November 2003

Order of the President of the Insurance Supervisory Commission no. 3110 of 28th October 2003 to enact the Norms regarding the categories of the assets admitted to cover the technical reserves for the insurers selling general insurances, the rules of placement spread up as well as the coefficient of liquidity published in the Official Gazette, Part I, no.770 of 3rd November 2003

Order of the President of the Insurance Supervisory Commission to enact the Norms regarding the conditions to administrate the Fund of life insurances, the investment and the evaluation of assets as well as calculation of the technical reserves published in the Official Gazette, Part I, no.770 of 3rd November 2003

Order of the President of Insurance Supervising Commission no. 3113 of 28th November 2003 to enact the Norms regarding the fulfillment of the law in respect of the compulsory third party liability motor insurance and the authorization of insurers authorized to sell such insurance in 2004 published in the Official Gazette, Part I, no.848 of 3rd December 2003

The Order of the President of the Insurance Supervisory Commission no.3101 of 13th January 2004 to enact the Norms regarding the insurers contribution quota to the Assureds Protection Fund published in the Official Gazette no. 35 of 16th January 2004

Order of the President of the Insurance Supervisory Commission no. 3104 of 25th February 2004 to enact the prudential Norms referring the insurance undertaking management published in the official Gazette No.197 of 5th March 2004

Order of the President of the Insurance Supervisory Commission no. 3105 of 26th February 2004 to enact the Norms referring to the internal control published in the Official Gazette no.186 of 3rd March 2004

Order of the President of the Insurance Supervisory Commission No. 3106 of 27th February 2004 to enact the Norms referring to the limitation of underwriting risks of consume and mortgage credits published in the Official Gazette no.185 of 3rd March 2004.

The Order of the President of the Insurance Supervisory Commission no. 3108 of 10th December 2004 to enact the Regulations related to the application of law in respect of the compulsory third party liability motor insurances published in the Official Gazette of Romania, Part I no.1214 of 17th December 2004.

The Order of the President of the Insurance Supervisory Commission no. 3109 of 16th December 2004 to enact the Regulations related to the updating of the minimum limit of the insurance undertakings paid in social capital, published in the Official Gazette of Romania, Part I no. 1243 of 23rd December 2004.

The Order of the President of the Insurance Supervisory Commission no. 3110 of 16th December to enact the Regulations related to the authorization of the insurance and/or reinsurance brokers published in the Official Gazette of Romania, Part I no. 1243 of 23rd December 2004.

The Order of the President of the Insurance Supervisory Commission no. 3111 of 16th December 2004 published in the Official Gazette, Part I no.1243 of 23rd December 2004.

Law no.172 of 14th May 2004 to amend and supplement the Law no.136/1995 related to the insurances and the reinsurances in Romania, published in the Official Gazette of Romania, Part I, no. 473 of 26th May 2004.

Law no. 212 of 27th May 2004 related to the private health insurances, published in the Official Gazette of Romania, Part I, no. 505 of 4th June 2004.

Law no. 403/2004 related to the amendment and the supplementation of the Law no. 32/2000 referring to the insurance undertakings and the supervision of insurances published in the Official Gazette of Romania no. 975 of 20th October 2004

Law No. 503 of 17th November 2004 Related to Financial Straightening, and the winding up of the insurance undertakings published in the Official Gazette of Romania No. 1193 of 14th December 2004

The Order of the President of the Insurance Supervisory Commission no. 3101 of 12th January 2005 to amend the Regulations related to the authorization of insurance and/or reinsurance brokers enacted by the Order of the President of Insurance Supervisory Commission no. 3110/2004, published in the Official Gazette of Romania, Part I no. 65 of 19th January 2005;

The Order of the President of the Insurance Supervisory Commission no.3102 of 20th January 2005 to enact the Regulations related to the percentage quota of the insurance undertakings’contributions to the Guarantee Fund, published in the Official Gazette of Romania, Part I no. 107 of 2nd February 2005;

Order no. 113130/2006 For enacting the Regulations regarding the assets admitted to cover the gross technical reserves for the insurer pursuing non-life insurance activity, the spread of the assets admitted to cover gross technical reserves, as well as liquidity ratio, published in the Official Monitor, Part I no. 960, 29/11/2006

The Law no.32/2000 regulates as well the organization of the insurance market and the way of its actors' doing business in this market. According to this law, the stock insurance companies and the mutual insurance companies, the subsidiaries of foreign insurance companies set up as Romanian insurance companies and the branches of foreign insurers can have access to business.

An important Chapter of the Law no.32/2000 regarding the insurance companies and the supervision of insurance is designated to the insurance intermediaries which, according to the law is carried out by the insurance agents and insurance brokers.

According to the Programs of adhere of Romania to the European Union, the insurance is specifically contemporary and the interest for the continuous harmonization of Romanian laws in the insurance field is contemporary as well.

In these circumstances the Law no.32/2000 too will follow a harmonization process in line with the last regulations in insurance in the European Union.

2. The Law no. 136 of 29.12.1995 regarding the insurances and reinsurance of Romania published in the Official Gazette of Romania Part. I no. 303 of 3oth December 1995 regulate the insurance contract and the basic principles of the main types of insurances, namely the insurances of goods, civil liability, compulsory third party liability motor insurance and other insurances.

After, the law having dealt with the provisions having a general character in Chapter I, in the next chapters, it covers the insurance law regulating the legal relationships between the parties to the insurance act, defining and establishing the main constitutive elements of the insurance contract, specific provisions of the various types of insurances, which in the eyes of this law they are the insurance of goods, persons and civil liability as well as other classes of insurance which could not be included in the above classification.

The Chapter III of the Law no. 136.1995 regarding the insurances and reinsurances in Romania was partially altered. In the circumstances the authority to regulate, by Norms, the premiums level and the legal conditions of ascertaining and payment of indemnity to cover losses suffered by the third parties through vehicles accidents, belongs to the Insurance Supervisory Commission according to the article 45 (4) of the Law no. 32/2000 regarding the insurance companies and the supervision of insurance. Until the Law no. 32/2000 came into force, there was the Government of Romania who regulated in the form of the Executive Order, the level of insurance premiums and other legal conditions to be observed in the process of ascertaining the damage claimed by the injured third parties and indemnify it, at the proposal of the Ministry of Finance.

3. There are two Funds of protection financed by the contribution of the insurers of this market. These Funds were created by distinctive legal provisions in the Law no. 136/1995 regarding the insurances and reinsurances and have as an object the protection of the insureds in the case of the bankruptcy of an insurance companies, the protection of the road victims respectively.

The Romanian insurers finance the Fund for the insureds' protection, set up according to the article 60 of the Law no.136/1995 annually. The Law of the budget establishes the contribution's level to the Funds. The Insurance Supervision Commission manages the Fund.

The Fund for the road victims' protection is financed annually by the insurers contribution and is administrated by the Romanian motor insurers Bureau - BAAR.

The regulations in force imposing the conclusion of an insurance contract.

4. By special laws conclusion of insurances for person and the civil liability is compulsory. Presently there are following regulations in force:

a. The Law no. 51/1995 regarding the organization and carrying on the lawyers profession altered and completed by the Law no.231 of 4.12.2000 and republished in the Official Gazette Part I no.113 of 6.03.2001;

b. The Law no.145 of 24.07.2000 regarding the social health insurance published in the Official Gazette Part I no.178 of 31.07.2000;

c. The Law no.188 of 01.11.2000 regarding the judicial executors published in the Official Gazette Part I no. 559 of 10.11.2000;

d. The Law bo.195 of 25.04.2001 regarding the voluntariate published in the Official Gazette Part I no. 206 of 25.04.2001

e. The Ordinance no.89 of 29.08.2000 regarding certain conditions to authorize the operators of and the registration of documents in the electronic archives of real warranties of movable goods published in the Official Gazette Part I no. 423 of 1. 09. 2000;

f. The Ordinance no.79 of 30.08.1999 regarding the organization the activity of the reorganization and liquidation practitioners published in the Official Gazette Part I no. 421 of 31.08.1999;

g. The Law no.36 of 12.05.1995 regarding the public notaries and the notaries' activity published in the Official Gazette Part. I no. 92 of 16.05.1995;

h. The Law no.32 of 3.04.2000 regarding the insurance companies and the supervision of insurance published in the Official Gazette Part I no.148 of 10.04.2000;

i. The Law no.137 of 29.12.1995 regarding the environment protection republished in the Official Gazette Part I no. 70 of 17.02.2000;

j. The Ordinance no. 65 of 19.08.1994 regarding the authorization of accountants and accounting experts published in the Official Gazette Part I no. 243 of 30.08.1994.

k. The law no.455 of 18th July 2001 regarding the electronic signature, published in the Official Gazette of Romania, Part I no.429 of 31st July 2001 and the Executive Order of the Government of Romania, no. 1259 of 13th December 2001 for the approval the Norms in fulfillment of the above law , published in the Official Gazette of Romania, Part. I no. 847 of 28th December 2001.