CHAPTER I
Scope of the Law, interpretation of terms and types of insurance

Article 1

This law provides for: the taking-up and the activity of insurance, insurance-reinsurance and reinsurers, of mutual companies, called hereinafter insurers and, reinsurers, respectively, as well as of insurance intermediaries; the Insurance Supervisory Commission establishment and activity, the supervision of the activity of insurers and reinsurers pursuing an activity in and from Romania, of insurance and reinsurance intermediaries, as well as for other related activities.

Article 2

For the purposes of this law, the terms and expressions have the following means:

A. Common definitions:

1. insurance business - the business pursued in or from Romania, it mainly consists to offer, to mediate, to negotiate, to underwrite insurance and reinsurance contracts, to collect premiums, to settle claims, the regressing and recovering activities, as well as investment or capitalization of own and acquired funds from insurance business;

3. insurance - the activity through which an insurer forms an insurance fund, using the principle of mutuality among a large number of insureds exposed to specific risks, and pays indemnities to those 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 – Romanian legal person authorized according to the present law to pursue insurance business, branch or subsidiary of an insurer from a third country, as well as the branch of an insurance undertaking or of a mutual undertaking from a Member State, which was granted authorization from the competent authority of the home Member State

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 underwriting a share of the overall risk;

9. paid-up free reserve fund - the total of the amounts representing contributions of the members to an insurance mutual company funds;

10. qualifying holding - any person who solely or intermediated by or related to other natural or legal person exerting rights in respect of the shares owned, which, cumulated, represent at least 10% of an insurer/reinsurer share capital or it offers him at least 10% of the total voting rights or which gives him the possibility to exert a significant influence over the management of an insurance/reinsurer, insurance and/or reinsurance broker in which a holding subsists, by case;

11. significant persons - the board members and/or of the board of directors and/or of the supervision council, the executive management, the actuary, the managers for the life and of the general insurance business, in the case of composite insurance undertakings, the persons appointed for management positions specific to the insurance business, which shall be established through Regulations issued in the application of the present Law, as well as, by case, the executive management of the insurance and/or reinsurance intermediary and the members of the board of directors of the Street’s Victims Protection Fund;

11¹. the insurance/reinsurance executive management – natural persons, at least 2, of which one, according to the constitutive documents and/or to the decisions of the statutory bodies of the insurer or reinsurer is the rightful substitute of the person empowered to manage and coordinate the daily activity, and also is entitled to engage the insurance or the reinsurance responsibility; the persons in charge with the direct management of the departments within the insurer and reinsurer, as well as those who run branches and other secondary offices, do not fall under the category above. For the branches of the insurance and reinsurance undertakings form the Member States, pursuing business within Romanian territory, according to the right of establishment, the executive management is represented by the persons empowered by these to run the activity of the branch and to legally represent the insurance or the reinsurance undertaking in Romania;

11² the insurance and/or reinsurance intermediary executive management – the natural person, or, in the case of the intermediaries that have legal form of share company, the natural persons, at least 2, one of which, according to the constitutive documents and/or the decisions of the statutory bodies of the insurance and/or reinsurance intermediary, is the rightful substitute of the person empowered to manage and coordinate the daily activity as well as entitled to engage insurance and/or reinsurance intermediary responsibility; the persons in charge with direct management of the insurance and/or reinsurance intermediary departments, of the branches and of the other secondary offices do not fall under the category above. For the branches of the insurance and/or reinsurance intermediary from the Member States, pursuing business in Romania according to the right of establishment, the executive management is represented by the person/persons empowered by these to manage the branch activity and to legally represent the insurance and/or reinsurance intermediary in Romania;

12. insurance portfolio - all or part of the insurance contracts concluded by an insurer;

13. underwritten gross premiums - the premiums collected and to be collected, including reinsurance premiums received and to be received, for all insurance and reinsurance contracts entering into force during the referred period, before any deduction from them to be 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 – insurance of an insurance or a reinsurer by a 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;

20. Member States – the European Union Member States and the states belonging to the European Economic Area;

21. competent authorities – the national authorities that, by law or other regulations, are empowered to supervise the insurance market;

22. non-member-country – a state that is not a member of the European Union or of the European Economic Area;

23. unit of account – EURO as it is defined in by Article 4 of the Statute of the European Investment Bank. For ROL equivalent will be used the National Bank of Romania exchange rate for EURO, communicated for 31 of December of the reporting fiscal year;

24. durable medium - any instrument which enables the customer to store information addressed personally to him in a way accessible for future reference for a period of time adequate to the purposes of the information and which allows the unchanged reproduction of the information stored from the floppy disks, CD-ROMs, DVDs and hard drives of personal computers on which electronic mail is stored, but it excludes Internet sites, which are not fulfilling the criteria to store and reproduce information.

B. Insurers definitions:

25. host Member State – the Member State, other then home Member State, in which the insurer or the reinsurer pursue insurance business;

26. home Member State – the Member State in which the head office of the insurance or reinsurer covering the commitment is situated;

27. non-member-country undertaking – the legal person whose real head office is outside the European Union, whose subsidiaries on the European Union market are acting under the authorization of the Member State competent authorities; Real head office means the main governing and administration center, even though the executive decisions are taken according to the share holders or other states associates’ disposals.

28. parent undertaking – a legal person who, towards a legal entity hereinafter named subsidiary undertaking, is in one of the following situations:

a) holds directly and/or indirectly the majority of the voting rights in a subsidiary undertaking;

b) has the right to appoint or revoke the majority of the members of administrative or control body, as well as the majority of the management of a subsidiary, and in the same time is shareholder or associate of the said subsidiary undertaking;

c) has the right to exercise a dominant influence over a subsidiary undertaking, of which it is shareholder or associate, according to the clauses of the contracts concluded with the said legal person, or according to some provisions of the constitutive act of the said legal person, in the case that the legislation governing the subsidiary statute allows the existence of such clauses or provisions;

d) is a shareholder in or an associate member of a subsidiary, and for the last two years he appointed solely as a result of the exercise of its voting rights, the majority of the members of the administrative or control bodies or the majority of the management of the subsidiary.

e) is a shareholder in or associate of a subsidiary, and solely controls, according to an agreement with other shareholders or associates, the majority of the voting rights in the said subsidiary, as well as any undertaking which, in the opinion of the Insurance Supervisory Commission, effectively exercises a dominant influence over another undertaking;

29. branch – an agency or branch of an insurance or reinsurer; Any permanent presence of an undertaking in the territory of a Member State shall be treated in the same way as an agency or branch, even if that presence does not take the form of a branch or agency, but consists merely of an office managed by the undertaking's own staff or by a person who is independent but has permanent authority to act for the undertaking as an agency would

30. participating interest – the rights in the capital of other bodies, represented or not, by certificates, which, through a solid link with these bodies, are designated to contribute to the body’s activities. It is assumed to represent a participating interest a percentage of maximum 20% held by a body in the share capital of another body.

31. participation – the direct or by way of control ownership of at least 20% of the voting rights of the capital of an undertaking.

32. participating undertaking – an entity that is either a parent undertaking, or another entity which holds a participation, or an entity related to another entity, relationship defined as follows:

a) the unique management of the respective entity and one or more entities to whom is not related, as a result of a contract concluded with the respective entity or according to some provisions from the constitutive acts or from other entities’ statute; or

b) by the majority of the same persons in the Council, the executive management or in the supervisory council of the respective entity and of one or more entities to whom is not related, during the financial year and until the consolidated financial returns;

33. related undertaking – a subsidiary or other undertaking in which a participation is hold or an entity related to another entity, relationship defined as follows:

a) the unique management of the respective and one or more entities to whom is not related, as a result of a contract concluded with the respective entity or according to some provisions from the constitutive acts or from other entities’ statute; or

b) by the majority of the same persons from the Council, the executive management or supervisory council of the respective entity and of one or more entities to whom is not related during the financial year and until the consolidated financial returns

34. insurance holding company – a parent undertaking, the main business of which is to acquire and hold participations in subsidiaries undertakings, where those subsidiary undertakings are exclusively or mainly insurers, reinsurersor non-member-country insurers, at least one of such subsidiary being an insurer;

35. mixed-activity insurance holding company – is a parent undertaking, other than an insurer, a non-member-country insurer, a reinsurer, an insurance holding company, which includes at least one insurer among its subsidiary undertakings;

36. localization of assets – represents the existence of assets, whether movable or immovable, within a Member State; assets represented by claims against debtors shall be regarded as situated in the Member State where they are achievable;

37. matching assets – the representation of underwriting liabilities, which can be required to be met in a particular currency by assets expressed or achievable in the same currency.

38. close links – a situation in which two or more natural and/or legal persons are linked by:

a) participation – the ownership, direct or by way of control, of 20 % or more of the voting rights or capital of an undertaking or;

b) control - the relationship between a parent undertaking and a subsidiary, or a similar relationship between any natural or legal person and an undertaking as defined at point 26. All direct or indirect subsidiaries shall also be considered a subsidiary of the same parent undertaking.

c) two or more natural or legal persons are permanently linked to one and the same person by a control relationship;

39. reinsurer – Romanian legal person authorized according to the provisions of this law to pursue insurance business, and also, the branch of an reinsurer or of an insurance holding company or of a mixed-activity insurance holding company from a Member State which received an official authorization from the competent authority of the home Member State, the main business of which consists in reinsurance;

40. establishment – the head office of an insurer/reinsurer, insurance intermediaries/reinsurance intermediaries as well as an agency or a branch of these, by case;

41. commitment – a commitment represented by an insurance contract;

42. Member State of the branch – the Member State in which the branch covering the commitment is situated;

43. Member State of the commitment – the Member State where the policyholder has his/her habitual residence or, if the policyholder is a legal person, the Member State where the latter's establishment, is situated;

44. Member State of the provision of services – the Member State of the commitment, if the commitment or the risks are covered by an insurer or a branch situated in another Member State;

45. subsidiary undertaking – a legal entity related to a parent undertaking by one of the situations laid down in point 26. All the subsidiaries of the subsidiary undertakings shall also be considered subsidiaries of the parent undertaking regarding the consolidated supervision;

46. regulated market – a) in the case of a market situated in a Member State-a multilateral system operated and/or managed by a market operator, which brings together or facilitates the bringing together of multiple third party buying and selling interests in financial instruments– in the system and in accordance with its nondiscretionary rules – in a way that results from a contract, in respect of the financial instruments admitted to trading under its rules and/or systems, and which is authorized by Member State competent authority and functions regularly according to that member stat competent authority requirements and,

b) in the case of a market situated in a third country - a financial market recognized by the home Member State of the insurer which meets comparable requirements. Any financial instruments dealt in on that market must be of a quality comparable to that of the instruments dealt in on the regulated market or markets of the Member State in question;

47. sum at risk – the difference between the insurance indemnity and the mathematic reserve established for the insurance contracts covering death risk;

47¹. actuary – natural person, registered in the Actuary Register, according to the provisions of the present Law and of the Regulations issued in its application, specialised in risk assessment through statistical methods, which are used in the calculation of the premiums, in the insurance sector, of the technical reserves and of the annuities;

48. claims representatives – units in each Member State designated by the Romanian insurersauthorized for class 10 from annex 1, point B, excluding the carrier’s liability, which shall be responsible for handling and settling claims arising from an accident caused by a vehicle;

48¹. compensation body - body that pays claims to the injured persons following an accident occurred on the territory of a Member State, other than the one in which the injured person has its residence, caused by a vehicle registered and insured within the territory of a Member State;

49. group – a group of undertakings, which consists of a parent undertaking, its subsidiaries and the entities in which the parent undertaking or its subsidiaries hold a participation, as well as any entity related with a parent undertaking by one of the situations laid down in point 30;

50. intra-group transactions – all transactions by which an insurer, a credit institution, or an investment firm within a financial conglomerate rely either directly or indirectly upon other undertakings within the same group or upon any natural or legal person linked to the undertakings within that group by close links, for the fulfillment of an obligation, whether or not contractual, and whether or not for payment;

51. financial conglomerate – a group which meets the following conditions:

a) an insurer, a credit institution, or an investment firm which is at the head of the group or at least one of the subsidiaries of the group is an insurer, a credit institution, or an investment firm;

b) where there is an insurer, a credit institution, or an investment firm at the head of the group, it is either a parent undertaking of an entity in the financial sector, an entity which hold a participation in an entity in a financial sector, or in an entity related with an entity in the financial sector by one of the situations laid down in point 30;

c) where there is no insurer, credit institution, or investment firm at the head of the group, the group’s activity mainly occur in the financial sector, meaning that over 40% of the ratio of the balance sheet total of the group is from financial sector entities;

d) at least one in the entities of the group is within the insurance sector and at least one is within the banking or investment services sector;

e) the consolidated and/or aggregated activities of the entities in the group within the insurance sector and the consolidated and/or aggregated activities of the entities within the banking and investment services sector are both significant

Any subgroup of a group which meets these conditions shall be considered as a financial conglomerate.

52. mixed financial holding company – a parent undertaking, other than an insurer, credit institution, or an investment firm, which together with its subsidiaries, at least one of which is an insurer, a credit institution, or an investment firm which has its head office in the European Union, and other entities, constitutes a financial conglomerates;

53. control – the relationship between a parent undertaking and a subsidiary or a similar relationship according to one of the relations described at point 36 between any natural or legal person and an undertaking;

54. Member State where the risk is situated:

a) the Member State in which the property is situated, where the insurance relates either to buildings or to buildings and their contents, in so far as the contents are covered by the same insurance policy,

b) the Member State of registration, where the insurance relates to vehicles of any type,

c) the Member State where the policyholder took out the policy in the case of policies,of a duration of four months or less, covering travel or holiday risks, whatever the class concerned,

d) the Member State where the policyholder has his habitual residence or, if the policy-holder is a legal person, the Member State where the latter's establishment is situated.

54¹. composite– the insurance undertaking authorized to pursue in the same time life assurance and non-life insurance;

C. Insurance intermediaries definitions:

55. insurance intermediaries – natural or legal bodies, hereinafter named insurance broker, insurance agent, subagent or tied insurance agent, pursuing insurance intermediary activity for a commission/remuneration, authorized or registered according to the present Law and of the Regulations issued in its application, as well as, Member States intermediaries pursuing intermediary insurance activity within Romanian territory, according to the right of establishment and freedom to provide services, by case;

56. reinsurance intermediary - Romanian natural and legal person authorized according to the provisions of the present Law, hereinafter named reinsurance broker, which intermediates, for a commission/remuneration, mainly the reinsurance activity, as well as the Member States intermediaries pursuing intermediary reinsurance business within Romanian territory, according to the right of establishment and freedom to provide services, by case;

57. insurance broker:

a) Romanian legal person, authorized according to the provisions of the present Law, which negotiates for its clients, natural or legal persons, insureds or potential insureds, the conclusion of the insurance or reinsurance contracts and provides assistance before and during the contracts on going or regarding the loss adjustment, by case

b) an intermediary registered with a competent authority of a Member State pursuing mediation activity in the insurance business based on the right of establishment and freedom to provide services on the Romanian territory;

57¹ broker assistants – natural or legal persons who on the basis of an insurance contract concluded with an insurance and/or reinsurance broker are empowered with a brokerage mandate of the latter, and under the coverage of the broker’s third party liability contract, have to pursue certain activities in order to fulfill the brokerage mandate;

57² brokerage mandate – the contract concluded between an insured or a potential insured, as a mandate, and the insurance and/or reinsurance broker, as representative, empowering the representative to negotiate or to conclude the insurance and/or reinsurance contracts, to provide assistance before and during the contracts, or regarding loss adjustment, by case;

58. insurance agent – a natural or legal person mandated by an insurance or reinsurer to conclude for and on behalf of the insurance or reinsurer insurance contracts with third parties, under the conditions stipulated in the mandate, without possessing the power of an insurer, reinsurer, insurance and/or reinsurance broker;

58¹ subagents – natural bodies, other than the insurance agent manager, legal person, who have concluded a labor contract with the legal person and act on its behalf;

58². tied agents – natural or legal bodies who pursue insurance intermediary activity on behalf and on the account of one or more insurance undertakings, case in which the insurance intermediated products do not have to compete, these acting under the total responsibility of those insurance undertakings, according to the intermediated products. It is deemed tied agent the natural or legal person pursuing insurance intermediary activity, besides its main professional activity, if the intermediated insurance products are complementary to the goods or services provided by the credit institutions.

59. home Member State for the intermediary:

(a) where the intermediary is a natural person, the Member State in which his residence is situated and in which he carries on business;

(b) where the intermediary is a legal person, the Member State in which its registered office is situated or, if under its national law it has no registered office, the Member State in which its head office is situated;

60. host Member State for the intermediary – Member State, other than the home country, in which an insurance or reinsurance intermediary pursues an insurance mediation business according to the right of establishment and the right to provide services;

61. branch of an insurance or reinsurance intermediary – a non-legal person unit of an insurance or reinsurance intermediary which, under a mandate, is carrying on all or part of the business.

62. insurance mediation - means the activities of introducing, proposing or carrying out other work preparatory to the conclusion of contracts of insurance, or of concluding such contracts, or of assisting in the administration and performance of such contracts, in particular in the event of a claim.

These activities when undertaken by an insurer or an employee of an insurer who is acting under the responsibility of the insurer shall not be considered as insurance mediation.

The provision of information on an incidental basis in the context of another professional activity provided that the purpose of that activity is not to assist the customer in concluding or performing an insurance contract, the management of claims of an insurer on a professional basis, and loss adjusting and expert appraisal of claims shall also not be considered as insurance mediation;

63. reinsurance mediation - means the activities of introducing, proposing or carrying out other work preparatory to the conclusion of contracts of reinsurance, or of concluding such contracts, or of assisting in the administration and performance of such contracts, in particular in the event of a claim.

These activities when undertaken by a reinsurer or an employee of a reinsurer who is acting under the responsibility of the reinsurer are not considered as reinsurance mediation.

The provision of information on an incidental basis in the context of another professional activity provided that the purpose of that activity is not to assist the customer in concluding or performing a reinsurance contract, the management of claims of a reinsurer on a professional basis, and loss adjusting and expert appraisal of claims shall also not be considered as reinsurance mediation;

64. bancassurance – the distribution activity of the insurance products complementary to the credit institutions’ products, carried on trough the credit institutions’ networks and/or through mutual distribution channels for offering the insurance and credit institution products, according to the provisions of the present Law and to the Regulations issued in its application.

65. The territory where the vehicle is normally based – the territory of the state where the vehicle is registered or:

  - in the case where no registration plates are required a certain type of vehicle, but the vehicle bears insurance plates, or a distinguishing sign analogous to the registration plates, the territory of the State in which the insurance plates or the sign are issued, or

  - in cases where neither the registration plates nor the insurance plates or the distinguishing sign are required for certain types of vehicles, the territory of the State in which the person who owns the vehicle is permanently resident;

Article 3

(1) The insurance activity is divided in:

a) life assurance

b) general insurance

(2) An insurer may carry on only one of the two categories of insurances provided for in paragraph (1).

(2¹) The composites authorized until December 31, 2005 as well as the insurance undertakings authorized to pursue insurance business according to the provisions of the article 12, paragraph (11) of the present Law, are excluded from the provisions of paragraph (2), the latter not being deemed as having composite activity.

(3) The classes of insurance related to the categories provided in paragraph (1) are established by Annex no.1 to this law.

CHAPTER II

The Insurance Supervisory Commission

Article 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 to protect the insured persons' rights and to promote the stability of the insurance business in Romania.

(2) The Insurance Supervisory Commission is established, an administrative autonomous self-financed specialized authority, having legal status and having the head-office in Bucharest, pursuing its activity according to the provisions of the present Law.

(3) The Insurance Supervisory Commission may open a representative office in any other cities in Romania.

(4) For the activities of the Insurance Supervisory Commission, of its representative offices that it establishes, the Government and, if the case may be, the local authorities, shall assign for its administration the necessary premises - land and buildings - from the public domain of national or local interest, according to the case, within 60 days from the Insurance Supervisory Commission's request date. The Insurance Supervisory Commission may use its own incomes to build, purchase or to rent proper premises, according to the enforce legal stipulations.

(5) The Insurance Supervisory Commission is run by a Council consisting of 7 members, of which a president and two vice-presidents.

(6) The organizational and personnel structure of the Insurance Supervisory Commission, the management, execution and control responsibilities of its staff are established through the organization and functioning Rules, adopted by the Council of the Insurance Supervisory Commission, according to the provisions of the present Law.

(7) The members of the Insurance Supervisory Commission Council are appointed by the Parliament, in a joint session of the two Chambers, upon the proposal of the joint commissions, namely the Senate’s Finances, Banks and Budget Commission and the Deputies Chamber Finances, Banks and Budget Commission. The President and the vice-presidents are nominated for their functions on the proposal list that is submitted for approval to the Parliament.

(8) Appointing the members of the Insurance Supervisory Commission Council is done upon the joint list proposed by the Senate’s Finances, Banks, and Budget Commission and the Deputies Chamber Finances, Banks and Budget Commission.

(9) The revoking of a member of the Insurance Supervisory Commission Council is done upon the proposal of the joint commissions, namely the Senate’s Finances, Banks and Budget Commission and the Deputies Chamber Finances, Banks and Budget Commission, in a joint session of the two Parliament’s Chambers , if this ceases to fulfill the necessary requirements for exerting its powers or if it is guilty of serious offences, non-compatible with its attributions.

(9¹) No member of the Insurance Supervisory Commission Council will be dismissed because of other reasons or through other procedures except for the ones stated in paragraph (9).

(10) The members of the Commission Council can be appointed for a 5 years period, each of them can be re-appointed.

(11) The initial members of the Commission Council 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 Insurance Supervisory Commission Council shall 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 Councils 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 Council of the Insurance Supervisory Commission ceases in the following situations:

a) when expiring the period for which he was appointed, according to the provisions of article (13);

b) by resignation;

c) if the Parliament revokes the respective member according to paragraphs (9) and (10)

d) in case of appearance of any incompatibility mentioned at paragraph (17);

e) by replacement, according to paragraph (15).

(18) The members of the Insurance Supervisory Commission Council shall immediately notify the Parliament in writing about the appearance of any incompatibility situation as mentioned by paragraph (17); until the Parliament decision on the matter, the member of the Insurance Supervisory Commission Council is suspended from his rights.

(18¹) The Members of the Insurance Supervisory Commission Council, as well as its staff, in charge with supervision duties, cannot be found civilly or criminally liable, according to the case, if the Courts establish the pursuing or the omission of the pursuing, in good faith and without negligence of any act or action related to the exercising of the supervision duties.

(19) The President is the legal representative of the Insurance Supervisory Commission, as a self-governing administrative authority, as a legal person of public law and in common law relations.

(20) In the case of temporary impossibility of exerting the president’s powers, the Insurance Supervisory Commission shall be represented by one of the vice – presidents, appointed by the president.

(21) If both the president and the vice-presidents are in the impossibility of exerting the powers, the Insurance Supervisory Commission shall be represented by the older member from the other four members.

(22) The Insurance Supervisory Commission Council shall validly decide in the presence of at least 4 of its members, including the president or, in its absence, of one of the vice-presidents.

(23) The decisions are adopted with the majority of the votes of the present members, and, in case of tie, the vote of the president, and in its absence, of the vice-president running the meeting, is decisive.

(24) The approved decision is compulsory for all members of the Council. Those who voted against it and the absent members may mention their separate opinion in the minute of the respective session.

(24¹) The Members of the Insurance Supervisory Commission exercise their mandate according to the law. They have a solitary obligation for their activity, excepting the case in which they have voted against a decision and they have noted their separate opinion in the Minute.

(25) The Insurance Supervisory Commission exchanges information with the competent authorities of Member States, in order to improve its supervisory activity, taking into account the information shall be subject to the confidentiality terms established through the Regulations issued for the application of the present Law;

(25¹) The Insurance Supervisory Commission may conclude Memoranda of Understanding with competent authorities of Member States, regarding the exchange of the confidential information required for the supervision activity and shall provide that the disclosure to the public will require the explicit agreement of that authorities or in certain cases only for the proposes that the authorities were given for their approval.

(25²) The Insurance Supervisory Commission may conclude cooperation agreements with non-member countries authorities only if the information submitted to the said authorities will benefit the same level of professional secrecy as Insurance Supervisory Commission is treating that information in Romania under the national legislation.

(25³) The Insurance Supervisory Commission shall cooperate with the European Commission by providing it with the information required for the report provided for in Article 40 of the Council Directive 92/49/EEC.

(25⁴) The Insurance Supervisory Commission permanently cooperates with the European Commission with respect to improving the insurance activity supervision.

(25⁵) The Insurance Supervisory Commission shall inform the European Commission of any major difficulties to which application of this law gives rise, and also about any barriers that may arise, hampering the activity of the insurance/reinsurers, insurance/reinsurance brokers, to the detriment of undertakings established in its territory and to the advantage of agencies and branches located just beyond its borders.

(25⁶) The Insurance Supervisory Commission and the European Commission shall examine such difficulties as quickly as possible in order to find an appropriate solution.”

(26) For carrying-out the competences provided in Article 5, the Insurance Supervisory Commission adopts regulations, notifications and decisions, under the president’s signature, after having deliberated in meetings, held according to the provisions of paragraphs (22)-(24), in compliance with the provisions of paragraph (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 specialized 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 Council 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.

Article 5

The Insurance Supervisory Commission has the following powers:

a) draws up and/or gives an opinion about the draft Regulations with regards to the insurance field or having implications in this field, including the specific accounting Regulations for the insurance field, after the consultation with the professional associations of the insurance market players and regarding the accounting regulations after informing/notifying, when the case, of the Ministry of Public Finance, according to the law; also, it compulsory notifies all the individual administrative acts which are connected with the insurance business;

a¹) establishes the objectives, organization and the functioning of the internal public audit activity.

b¹) approves, in order to grant the prior notification for the registration as an insurer or reinsurer, the direct and/or indirect shareholders, on the basis of the provisions of the Regulations issued for the application of the present Law.

b) authorizes the insurance undertakings, the reinsurance undertakings and the insurance and/or reinsurance brokers to pursue insurance, reinsurance, insurance and/or reinsurance mediation, when the case, and approves any amendment to the documents or to the conditions according to which this authorization was granted; the documents include: the statute and/or the constitutive act of the undertaking, operation scheme and, only in the case of significant persons, the organizational chart and/or the organization and functioning rules, as well as other documents established through the regulations regarding authorization, issued in the application of the present Law. The approval of the amendments, including the case of the persons mentioned at letter d), is requested in maximum 10 days from the adoption of the decision, by case, by the General Shareholders Ordinary Meeting or the Extraordinary Meeting regarding the amendments of the documents or the conditions;

c) authorizes the carry on of the compulsory insurance and collects as its own income a percentage contribution from the amount of the gross premium earned due to this insurance, with a view to supervise and to control the compulsory insurance activity, under the provisions of this law and the regulations issued in its application;

d) approves and, by case, withdraws the approval, according to the legislation in force and to the Regulations issued in its application, for the significant persons of the insurers, reinsures, insurance and /or reinsurance brokers and approves and, by case, withdraws the approval for the members of the board of directors of the Street’s Victims Protection Fund;

e) approves the split-up or the merger of an insurance/reinsurance undertaking, insurance and/or reinsurance broker authorized in Romania, according to the present Law and to the Regulations issued in its application. The approval is granted for insurance/reinsurance undertakings within 90 days from the complete documentation submission and within 45 days for insurance and/or reinsurance brokers;

f) approves the transfer of portfolio including for the branches of the Romanian insurer on the territory of other Member States to a Romanian insurer or to an accepting office established within the European Union, after the consultations of the competent authorities of the Member State of the branch, and also for the agencies and branches set up within Romania by the undertakings with head offices outside of the European Union, according to the provisions of the present law and of the rules issued in its application.

g) approves, on the request of the insurance undertakings, reinsurance undertakings and insurance and/or reinsurance brokers, the limitation, suspension or, by case, the ceasing of the activity, after checking up their financial standing;

h) supervises the financial statement of the insurers/reinsurers/insurance and/or reinsurance brokers, as well as the activity of other insurance intermediaries, natural or legal bodies, according to the provisions of the present Law and of the Regulations issued in its application, including their branches on other Member States territory, according to the right of establishment, after consulting with the competent authorities from the branch Member State;

h¹) In order to apply the prudential supervision principles it performs a permanent control of the insurance undertakings, reinsurance undertakings and insurance and/or reinsurance brokers activity, through the analysis and assessment through the specific directorates at the Insurance Supervisory Commission head office, of the information enclosed in the reports, notifications and documents submitted to it according to the provisions of the present law, of the Regulations issued in its application, as well as according to the notifications and decisions issued by the Insurance Supervisory Commission;

h²) In order to protect the insureds’ and the potential insureds interests it performs periodical and on-the-spot inspections at the insurance undertakings, reinsurance undertakings and insurance and/or reinsurance brokers head offices, legal persons, it performs detailed investigations regarding the conditions in which they pursue business, through collecting information and requesting documents with regards to their activity, amongst others;

h³) in order to assure a homogeneous professional training of the persons working in the field of insurance, it approves, according to the provisions of the present Law, of the Regulations issued in its application and through the decisions taken by the Insurance Supervisions Commission Council the lecture themes and the thematic of the graduation exams for the bodies that organize such qualification, training and professional improvement courses, undergraduate and postgraduate, including for actuaries, with the exception of the academic institutions certified by the Ministry of Education and Research, as well as the minimum requirements for certifying the lecturers for these courses.

i) ensures a supplementary supervision, according to the methods provided in the regulations issued by the Insurance Supervisory Commission of the following entities:

1) any insurer which is a participating undertaking in at least one insurer, a reinsurer or an insurer from a non-member-country;

2) any insurer of which the parent undertaking is, by case, an insurance holding company, a reinsurer or an insurer from a non-member-country;

3) any insurer whose parent undertaking is a mixed-activity insurance holding company.

j) requests the submission of information and documents, including the ones with statistical character, regarding the insurance activity, the management of this activity and its executive management, both from insurance undertakings, reinsurance undertakings, insurance and/or reinsurance intermediaries, and from any other natural or legal person, who have direct or indirect connection with their activity, including the information regarding the technical basis used for calculating insurance premiums and technical reserves;

k) takes the necessary measures to ensure that the insurance activity is managed by respecting the specific prudent regulations;

l) applies the measures established by law in respect of the financial recovery, re-organization or, by case, the winding-up of the insurer, the reinsurer as well as their branches and subsidiaries;

l¹) fulfils the quality of administrator of the Policy Holders Protection Fund;

m) applies the sanctioning measures provided by the law including those related to the exerting of a direct or indirect influence, non compliant with the prudent management of the insurer, laid down by the regulations issued by the Insurance Supervisory Commission;

n) receives and answers to all notifications and complaints with regards to the activity of the insurance undertakings, reinsurance undertakings and insurance and/or reinsurance intermediaries;

o) approves its own budget;

p) attends, as member, to the specific organisms and committees in the field of insurance, acting alongside the European Commission, at the international associations of the insurance supervisors and represents Romania at conferences and international meetings;

q) informs the competent authorities of the Member States of the branch or of the provisions of services about any measures or administrative penalties taken against that insurers, reinsurersor insurance intermediaries, including withdrawal of their official authorization;

r) creates and maintains the Insurance, Reinsurersand Intermediaries Register whose shape and content are settled through regulations issued for the application of the present law.

s) carries on other attribution provided by this law.

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 insureds' best interest;

d) on the basis of the information exchange, of the Memoranda of Understanding or the cooperation agreements , according to the conditions established in article 4, paragraphs (25), (25¹), (25²).

Article 7

(1) The Insurance Supervisory Commission shall submit to the Parliament, to the Senate’s Budget and Finances Commission and to the Deputies Chamber Budget and Finances Commission respectively, within 6 months from the end of each financial year, a report on the Romanian insurance market, as well as a notification regarding the activities undertaken.

(2) The Insurance Supervisory Commission will issue and publish an annual report on the insurance market and on its institutions and bodies, subject to the provisions of art. 6.

Article 8

(1) The Insurance Supervisory Commission adopts regulations in the application of this law, as well as specific prudent regulations according to the insurance practices.

(2) The Insurance Supervisory Commission issues decisions or, by case, internal rules through which:

a) imposes restrictions, grants, suspends or withdraws authorizations;

b) modifies or revokes conditions, requirements or terms that are enforced by its acts;

c) approves the insurance/reinsurance undertakings/insurance and/or reinsurance brokers' mergers or split-ups;

d) approves the transfer of the insurance portfolio;

e) registers and approves actuaries;

f) notifies, according to the Regulations issued in the application of the present Law, to the authorised insurers and reinsurers, including to those whose shares are traded at the stock – exchange, the natural or legal persons intending, direct and/or indirect, by case, to become significant shareholders, to increase their participation share, to give up the quality of significant shareholder or to diminish their participation;

g) approves the criteria and the conditions for Insurance Experts Body membership, acting alongside it, as well as its statute;

h) sets the wages of the Insurance Supervisory Commission members and personnel, subject to provisos in art. 4;

h¹) updates the level of the authorization fee for insurance undertakings and reinsurance undertakings;

h² ) establishes/ clarifies other problems of interest regarding the insurers, reinsures, insurance and/or reinsurance intermediaries, the Street’s Victims Protection Fund and of the bodies organizing training courses;

i) performs a permanent control, from its head office, through the specific directorates, by analyzing the data and the information from the periodical and the yearly reports, as well as from the documents by which it is requested the prior approval for the amendment of the initial authorization conditions, of the insurance and reinsurance undertakings and the insurance and/or reinsurance intermediaries, and decides periodic or on-the-spot inspections at their offices;

j) requires the submission of certain documents, reports, data, hearings;

k) identifies and applies sanctions, following the permanent, periodical or on-the-spot inspections, to the insurance undertakings, reinsurance undertakings and to the insurance and/or reinsurance intermediaries, to the significant shareholders, as well as to their significant persons or to the members of the board of directors of the Street’s Victims Protection Fund, or to the management of the bodies organising training courses for breaching the provisions of the present Law, of the Regulations, decisions and the notifications issued by the Insurance Supervisory Commission;

k¹) all sanctioning decisions will enclose the legal ground of their application and shall be communicated to the natural and legal bodies against whom the sanction was decided. In the sanctioning decisions it shall be mentioned the right to appeal the sanctioning measures by the persons in question, the date until the appeal can be filed and the court or the authority to which the appeal has to be addressed to;

l) applies other measures provided by the legislation in force.

(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.

(4) The Insurance Supervision Commission specifies or clarifies certain problems of common interest for all insurance undertakings, reinsurance undertakings or insurance and/or reinsurance intermediaries, by issuing internal rules. The internal rules do not determine obligations, and sanctions can not be found out or applied based on them.

Article 9

(1) The Regulations issued by the Insurance Supervisory Commission according to its competencies stipulated in this law shall be published in the Romanian Official Gazette, part I.

(2) The decisions, notifications and internal rules are not subject to publication, excepting the ones provided by article 8, paragraph (2), letters a), c) d) and h¹).

Article 10

(1) The following represents own income to the budget of the Insurance Supervisory Commission:

a) fees and penalties provided for in art.13 and art. 36;

a¹) the amounts from the administrative fines applied according to the law;

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.

(3) The Insurance Supervisory Commission availabilities can be placed in instruments carrying interest at the State Treasury and at credit institutions, in instruments of the monetary market, in state securities or in public local administration securities, as well as in other placements or allocations provided by the legislation in force.

CHAPTER III

The authorization of insurers

Article 11

(1) The insurance business in Romania may be carried on only by:

a) Romanian legal persons, established like stock insurers(“societati pe actiuni”) and/or mutual associations (societati mutuale), which received an official authorization granted by the Insurance Supervisory Commission according to the procedure provided by Article 12;

b) the insurance and reinsurance undertakings authorized in the Member States pursuing insurance or reinsurance business on Romanian territory according to the right of establishment and freedom to provide services;

c) the branches belonging to mother companies governed by laws form a third country, authorized by the Insurance Supervisory Commission, according to the procedure provided in article 12 and observing the conditions established according to chapter III²;

d) subsidiaries of insurance or reinsurance undertakings, from third countries, authorized by the Insurance Supervisory Commission, according to the procedure provided by article 12;

e) insurance undertakings or reinsurance undertakings adopts the European form of the share company (SE – Societas Europea).

(2) An insurance undertaking can not be registered in the trade register without the prior notification for registration issued by the Insurance Supervisory Commission.

Article 12

(1) The application for authorization of pursuing insurance activity shall be submitted to the Insurance Supervisory Commission in the format and accompanied by the documents required by the regulations.

(2) If deemed necessary, the Insurance Supervisory Commission may request additional information, or perform its own investigations or with the support of other competent authorities, or it may use information from other sources.

(3)The Insurance Supervisory Commission shall decide upon granting or upon rejecting the authorization of pursuing insurance activity within a maximum of 4 months from the registration date of the last proper information or document(s) submitted at the request of the Insurance Supervisory Commission.

(4) The Insurance Supervisory Commission may grant the authorization provided in paragraph (3) in case of cumulative compliance with the following conditions:

a) Drawing up an operation scheme for all risks from a class, or some of the risks included in that class, if the insurers wishes to cover only some of the risks from that class, that shall include at least the following information and documents:

1. the nature of the commitments or the risks which the insurance undertaking wishes to cover;

2. the actuarial calculation methods used for establishing the technical reserves;

3. the guiding principles of the reinsurance program and the list of reinsurers, according to the Regulations issued in the application of the present Law;

4. the items constituting the Guarantee Fund according to the Regulations issued in the application of the present Law;

5. the financial resources for covering the expenses, and for the insurance in class no. 18, letter B, annex no. 1, the insurer’s available resources for assistance.

6. for the first three financial exercises the operation scheme shall also include:

a) the estimation of the executive management expenses and those of the specific management positions from the insurance field;

b) the estimation of the premiums and the claims;

c) the incomes and expenses budget;

d) the estimation of the financial resources required for the setting–up of the technical reserves and the solvency margin;

7. an appropriate IT system for optimum carrying – on the insurance business that it proposes to pursue, according to the requests from point 1, according to the Regulations regarding authorization of the insurance undertakings, issued in the application of the present Law;

b) As regards the pursuing of insurance class no.18 ‘’Assistance for persons who get into difficulties while traveling, while away from home and while away from their permanent residence’’ the scheme of operation provided for in paragraph a), the insurer will provided information regarding:

1) the proof of the qualified staff,

2) the proof of an adequate technical equipment,

3) the network which will be used, fulfilling this way the commitments assumed for this class of insurance.

c) the scheme of operations shows that the undertaking will have the required solvency margin;

d) the applicant's social capital paid-up in with a bank authorized 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;

e) the company name does not mislead the public;

f) the applicant will exclusively carry on activities related to the insurance;

g) in the case of a foreign insurer, if the applicant proves it is legally established in the registration country;

h) the insurers which request the authorization for class 10, excluding carrier’s liability, shall appoint in each Member State, a claims representative;

(4¹) General and specific conditions of the insurance policies, the premiums value, the premiums calculation bases or the forms, and other documents an insurer intends to use in his relations with the insureds, are not subject to prior approval or systematic notification.

(4²) Taking into account the prudential supervision principles, the Insurance Supervisory Commission may request information regarding the technical basis of the premiums and technical reserves calculation, observing the provisions of paragraph (4¹), in order to check their compliance with the actuarial principles.

(4³) The competent authorities of other Member States shall be consulted by the Insurance Supervisory Commission before issuing a functioning authorization for an insurer that finds itself in one of the following situations:

a) it is a subsidiary of an authorized insurer from another Member State; or

b) it is a subsidiary of an insurance undertaking mother of an insurer authorized in another Member State; or

c) it is controlled by the same natural or legal person, controlling another insurer from

another Member State.

(4⁴) The competent authorities that supervise the credit institutions or the financial services and investment companies from a Member State shall by consulted by the Insurance Supervisory Commission before issuing a functioning authorization for an insurance undertaking that finds itself in one of the following situations:

a) it is a subsidiary of a credit institution or of a financial services and investments company authorized in the European Union; or

b) it is a subsidiary of an insurance undertaking mother of a credit institution or of a financial services and investments company authorized in the European Union; or

c) it is controlled by the same natural or legal person that controls a credit institution or of a financial services and investments company authorized in the European Union.

(4⁵) The competent authorities mentioned in paragraphs (4³) and (4⁴) shall be consulted both for the assessment of the shareholders, and of the reputation and the expertise of the significant persons engaged in the management of another body from the same group;

(4⁶) The Insurance Supervisory Commission may request the competent authorities in question, any relevant information about the shareholders of an insurer or about the reputation and the expertise of its significant persons, both for issuing an functioning authorization and for permanent assessment of the way the activity of that insurer takes place, according to the provisions of the legislation in force.”

(5) For the insurance undertakings from third countries the followings requests are added:

a)the branches belonging to insurance undertakings, reinsurance undertakings, as well as to mutual companies having their social office in third countries, held on Romanian territory assets of at least half of the value of the guarantee fund provided at the time of the authorization for the insurers and reinsurers, Romanian legal persons;

b)  the branches belonging to the insurance undertakings, reinsurance undertakings, as well as to mutual companies having their social office in third countries, shall set up on Romanian territory, an original deposit of a quarter of the value of the guarantee fund, provided at the time of the authorization, as guarantee to a credit institution authorized by the National Bank of Romania, for the insurers and reinsurers, Romanian legal persons.

(6) The authorization granted to an insurer by the Insurance Supervisory Commission is valid for the whole territory of the European Union, as well as for the member-states of the European Economic Area, according to the right of establishment and freedom to provide services.

(7) The authorizations is granted for all risks from a class, excepting the case when the insurance undertaking wishes to cover only some of the risks included in the respective class.”

“(7¹) The insurance undertaking requesting authorization for a new insurance class or the extension of some or of all risks covered by the same insurance class, shall submit for these situations the operation scheme provided in article 12, paragraph (4), letters a) – c) and, by case, the names of the persons provided in letter h), as well as other documents and information, according to the provisions of the Regulations issued in the application of the present Law.

(8) The Insurance Supervisory Commission may grant authorization for the classes mentioned at letter C, Annex no.1 of the law, if the insurer requires this and fulfill all the conditions provided by law.

(9) The authorization granted for a class or a group of classes is valid to subscribe ancillary risks if the conditions provided by letter D, Annex no.1 of this law are fulfilled.

(10) abolished.

(11) The insurersauthorized to pursue life assurance may also receive the authorization for pursuing classes 1 and 2 of non-life insurance,provided in the Annex 1 lett B. The insurersauthorized to pursue non-life insurance business, but only for classes 1 and 2, provided in paragraph B, Annex no. 1, have the right be granted functioning authorization for life assurance business as well.

(12) The Insurance Supervisory Commission will refuse to grand the authorization in the case of non-compliance with the requirements provided by paragraph (4) and (5), when the case will be, as well as one or more of the following situations are found out:

a) the submitted documentation does not comply with the legal provisions in force;

b) the submitted application shows that:

1) the undertaking will not carry-out an activity in accordance with the provisions of these law;

2) the significant persons and shareholders do not fulfill the conditions and the criteria provided by the legislation in force;

3) the need to ensure the sound and prudent management of an insurer, are not satisfied as to the qualifications of the shareholders or members, either direct or indirect.

c) the analysis of the scheme of operations, shows that the undertaking cannot ensure the achievement of stated objectives in conditions which are compatible with prudent practice regulations, which to provide the adequate security to insurers;

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) the available IT system is not appropriate to optimum carrying on of the insurance activity that it proposes to pursue.

f) The persons mentioned in the annex of the Emergency Governmental Ordinance no.159/2001 for the prevention and combating the use of the financial system for the purpose of financing terrorism and in the list drawn-up according to the provisions of article 5 from the present Emergency Ordinance can not be direct and/or indirect shareholders, as well as significant persons of an insurer or reinsurer.

(13) The Insurance Supervisory Commission shall notify the applicant upon the reasons to refuse to grand the authorization.

(14) The applicant may appeal against to the refusal of the Insurance Supervisory Commission to the Bucuresti Court of Appeals, within 30 days from the notification date of the refusal.

(15) The decision to grand the authorization issued by the President of the Council of Insurance Supervisory Commission will provide the date the undertaking will start to operate.

“(16) The insurance and reinsurance undertakings authorized according to the provisions of the present Law and to the Regulations issued in its application, shall include in all issued documents, including in the correspondence with third parties, the unique code from the Register mentioned at article 5, letter r), as well as the following writing: Authorized by the Insurance Supervisory Commission.

(17) a) All the reports, notifications, documents and requests submitted by the insurance or reinsurance undertakings, as well as any correspondence with the Insurance Supervisory Commission, shall be signed, by case, only by the executive management, by the manager of the life assurance business, and non-life insurance business, in the case of composite insurers or by the persons having managerial positions specific to the filed of insurance.

(18) Any empowerment given to another person, also issued by the significant shareholders, direct or indirect, by the members of the board and/or of the managing council and/or supervisory council, by case, of the insurer and reinsurer, is rightfully void;

(19) The insurers and reinsurers authorized according to the provisions of the present Law and of the Regulations issued in its application are obliged to post at every main and secondary offices, on visible spot, copies of the registration certificate issued by the Insurance Supervisory Commission after the registration in the register provided at article 5, letter r).

Article 12¹

(1) In order to obtain the functioning authorization as well as anytime during the activity carrying on, an insurer or reinsurer has to have working relations with at least one actuary, and, in the case the activity requires two or more actuaries, the provisions of the present Law and of the Regulations issued in its application, apply also for them.

(2) The actuaries obligations are the followings:

a) determining the technical reserves;

b) control of the assets admitted to cover the technical reserves;

c) calculation of the insurance premiums;

d) calculation of the required solvency margin;

e) the calculation of the available solvency margin of the insurer;

f) calculation of the benefits obtained by fructification of the assets admitted to cover technical reserves for life assurance;

g) drawing up, certifying and submission to the Insurance Supervisory Commission of the yearly actuarial report, the content and form of which are established through Regulations issued in the application of the present Law;

h) certifying all reports submitted to the Insurance Supervisory Commission which include the calculation provided at letters a) – f);

i) the notification, according to the provisions of paragraphs (3) and (4), of any irregularities found out or of situations that indicate or lead to the breaching of the provisions of the present Law and of the regulations issued in its application.

(3) The actuary has to inform in written, within two working days, starting with the finding-out date, the Board and/or the Managing Council and/or the Supervisory Council, when the case, as well as the insurer’s or reinsurer’s executive management, during the fulfillment of the obligations mentioned at paragraph (2), regarding any situation indicating an infringement of the provisions of the present Law and of the Regulations issued for applying the present Law.

(4) Within 30 days, starting the notification data of the persons mentioned at paragraph (3), the actuary shall inform the Insurance Supervisory Commission about the notification’s contents as well as the measures taken by the insurer in order to remedy the situation.

(5) The actuary shall inform the Insurance Supervisory Commission also in case in which within 10 days from the notification date mentioned at paragraph (3), the insurer did not take action or did not initiate any measure to remedy the situation.

(6) The persons mentioned at paragraph (3) can not initiate any sanctioning measure regarding an actuary who, carrying out his obligations is complying with the provisions of paragraph (4).

(7) The actuary can be appointed or revoked only by the Board and/or the Managing Council and/or the Supervisory Council, when the case, of the insurer or reinsurer, and if the actuary is a member in such a Council, by the Extraordinary General Shareholders Meeting.

(8) The appointment or, when the case, the revoking of the actuary is communicated the Insurance Supervisory Commission within 3 days starting the date when the decision was taken by the competent body, having included the justification, in case of revoking.

(9) The competent body, from the ones mentioned at paragraph (6), has the obligation to appoint a new actuary within 20 days starting the previous actuary revoking date.

(10) When the competent body, does not respect the obligation mentioned at paragraph (8), the Insurance Supervisory Commission appoints, within 10 days starting expiry of the term mentioned at the same paragraph, a new actuary for maximum six months.

(11) Other provisions shall be established through Regulations issued for applying the present Law.

Article 12²

The Actuary Register is opened and maintained by the Insurance Supervisory Commission, in an electronic system and on paper, the registered information being permanently accessible to the public at the head quarters of the Insurance Supervisory Commission. The persons registered in the Register shall constitute the Actuary Body, whose status and organizational and functioning regulations are approved by the Insurance Supervisory Commission.

(2) Any natural body fulfilling at the same time the following conditions, can be registered in the Actuary Register:

a) has a bachelor degree;

b) has a diploma in actuarial studies, in the country, issued by the academic institutions or other forms of postgraduate, on the condition that at least one member of the examination Commission holds an actuary qualification or has graduated, with diploma or examination certificate, the courses of some institutions worldwide recognized for actuary training and qualification;

c) has worked for at least 3 years in insurance field, financial mathematics or statistics, the performed activity needing actuarial knowledge;

d) has no legal or fiscal record.

(3) The Insurance Supervisory Commission shall operate the registration in the Actuary Register of the actuaries at the written request of the persons fulfilling the conditions mentioned at paragraph (2).

(4) The actuaries have the obligations to inform within 7 days the Insurance Supervisory Commission any modification of the data that are subject to registration in the Actuary Register.

(5) Foreigners do not have to comply with the requirement for actuarial studies, if they prove through official documents, the quality of actuary obtained in their origin country.

(6) Sanctioning an actuary thee times by the Insurance Supervisory Commission, for non compliance with the provisions of the present Law and the Regulations issued for applying the present Law or conviction through a final sentence leads to the mandatory radiation from the Actuary Register.

(7) Other provisions regarding the Actuary Register shall be established through Regulations issued for applying the present Law.

Article 13

(1) An insurer who applies for an authorization according to article 12 and 76 shall pay at the submission of the authorization application, an authorization fee amounting to Rol 75,000,000. The amount of the authorization fee may be up-dated yearly by a decision of the Insurance Supervisory Commission, according to the inflation rate notified by the National Statistics Institute;

(2) If the authorization application is denied, the authorization fee is not reimbursed.

(3) From the moment of receiving the authorization, 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.

(3¹) After Romania joining the European Union, the functioning fee mentioned at paragraph (3), could reach up to 0.5 % of gross premiums collected during the period for which they are due, taking into account the Insurance Supervisory Commission’s obligations after becoming European Union Member State.

(4) The insurers pay the functioning fee at the dates established by the Regulations.

(5) When the functioning fee provided by paragraph (3) is not paid in due term, the Insurance Supervisory Commission will calculate penalties according to the in force legislation regarding the collection of the fiscal debts.

“(6) Paying the authorization fee mentioned at paragraph (1), the insurance undertaking receives the authorization only for a certain class, excepting the case when the insurance undertaking wants to cover only some of the risks included in the respective class, as mentioned in Annex no. 1, and for each class or, when the case, only for some of the risks included in a certain class, shall pay the fees mentioned at paragraph (7).

(7) An insurer requesting authorization according to the provisions of article 12 paragraph (7¹) pays, upon submitting the authorization request, an authorization tax representing 40% of the amount of the tax provided at paragraph (1).

(8) An insurer when asking an authorization for a portfolio transfer, including for the situations provided by Art. 45 para.(4), shall pay an authorization for portfolio transfer fee representing 50% from the fee provided by paragraph (1).

(9) An insurer, reinsurer or an insurance and/or reinsurance broker, the Street’s Victims Protection Fund or a body that organises training courses which requests the approval for amending the conditions and documents on the basis of which the authorisation/notification was granted, as well as any information or certifications from the Insurance Supervisory Commission in order to serve in its relations with the third parties, shall pay an approval, notification or certification tax, by case representing the equivalent in Romanian lei of 35 Euro, at the National Bank of Romania exchange rate from the day of the payment.

(10) Any natural or legal person, with the exception of the policyholders, injured parties and public institutions that request from the Insurance Supervisory Commission information, certifications or points of view shall pay a tax presenting the equivalent in Romanian lei of 35 Euro, at the exchange rate communicated by the National Bank of Romania at the date of the payment.

(11) For all the authorizations issued by Insurance Supervisory Commission that have been destroyed, lost or stolen, duplicates will be issued upon request of the entitled persons, under the conditions mentioned in the Regulation issued in the application of the present Law after paying a fee representing 25% of the amounts mentioned at paragraph (1) and at article 36, paragraph (1).

Article 14

(1) The Insurance Supervisory Commission withdraws the authorization to carry on the insurance business if the authorized insurer is in one of the following situations:

a)  does not make use of the authorization by conducting an insurance activity within 12 months;

b)  expressly renounces to the authorization and demands the stopping of his insurance activity;

c)  ceases to carry on business for more than six months in a row;

d)  no longer fulfils the conditions based on which it was authorized;

e)  did not fulfill the measures specified in the recovery plan or the measures where ineffective, by case;

f)  breaches the dispositions of this law and of the regulations issued in its application.

(2) The Insurance Supervisory Commission informs the competent authorities of the other Member States about the withdrawal of the authorization for an insurer carrying on insurance activity within their territories.

(3) The Insurance Supervisory Commission takes legal steps following the information received from the competent authorities of the other Member States as regards the withdrawal the authorization of an undertaking that pursues business within Romania territory, in compliance with the right of establishment and the freedom to provide services.

(4) The decision to withdraw the authorization is precisely reasoned and it is communicated to the insurer. The insurer can apply against the withdrawal decision to the Bucuresti Court of Appeals within 30 days from the communication date.”

Article 15

The Insurance Supervisory Commission shall publish at least once a year, in the Romanian Official Gazette, as well as in a widely circulating publication, the updated list of the authorized insurers and any other information that it might find necessary, in applying this law.

CHAPTER III ¹

Right of establishment and freedom to provide services of the insurers

Article 15¹

The insurer authorized according to art. 12 may conduct an insurance activity in another Member State, by establishing a branch or an agency, only with prior notice to the Insurance Supervisory Commission.

Article 15²

The notification provided for in Article 15¹ shall contain the following information and documents:

(1) the Member State name within the territory of which it proposes to establish a branch;

(2) a scheme of operations setting out, inter alia, the types of business envisaged and the structural organization of the branch;

(3) the address in the Member State of the branch from which documents may be obtained and to which they may be delivered, being understood that the address shall be the one to which all communications to the authorized agent are sent;

(4) the name of the branch's authorized agent, who must possess sufficient powers to bind the insurer in relation to third parties and to represent it in relations with the authorities and courts of the Member State of the branch and, when the case will be ;

(5) a declaration of the undertaking that intents its branch to cover risk in class 10 letter B, Annex no. 1, to this law, not including carriers liability that it has become a Member of the National Bureau and the National Guarantee Fund of the member state of the branch.

Article 15³

(1) The Insurance Supervisory Commission shall, within three months of receiving all the information referred to in Art. 15², communicate that information to the competent authorities of the Member State of the branch and shall inform the insurer concerned accordingly, unless:

a) the financial situation of the insurer does not allow the fulfillment of the assumed obligations.

b) the significant persons provided in point 4, art. 15², have been convicted for breaching the asset law or for breaching the rules provided by the fiscal and financial legislation.

c) the significant persons provided in point 4, art. 15², don’t have the necessary qualification and experience.

d) the organizational structure does not permit the adequate pursuing of the business

(2) Insurance Supervisory Commission shall also attest that the insurer has the minimum solvency margin.

(3) Where the Insurance Supervisory Commission refuses to communicate the information referred to in Art. 15² to the competent authorities of the Member State of the branch, it shall give the reasons for their refusal to the insurance undertaking concerned within three months of receiving all the information in question.

(4) That refusal or failure to act, provided in paragraph 3, shall be subject to a right to apply to the Bucuresti Court of Appeals within 30 days.

Article 15⁴

The branch may pursue business as follows:

a)  starting with the date when the Insurance Supervisory Commission confirms to the undertaking the approval received from the competent authority from the member state of the branch; or

b)  if no communication is received from them, on expiry of the two months period, in compliance with article 15³ , paragraph (1), the branch may be established and start business.

Article 15⁵

In the event of a change in any of the particulars communicated under Article 15² and Article 15⁷ the insurance undertaking shall give written notice of the change to the Insurance Supervisory Commission and to the competent authorities of the Member State of the branch or to the competent authorities of the provision of services at least 30 days before making the change.

Article 15⁶

Any insurance undertaking which, under the freedom to provide services, intends to carry on insurance activity for the first time in one or more Member States shall first inform the Insurance Supervisory Commission, indicating the nature of the commitments or the risks it proposes to cover.

Article 15⁷

(1) Within 30 days from the receiving of the notification, provided by Article 15⁶, the Insurance Supervisory Commission shall communicate to the competent authorities of the Member State or Member States within the territory of which the insurance undertaking intents to carry on business :

(a) a certificate attesting that the insurance undertaking has the minimum solvency margin calculated in accordance with the legislation in force;

(b) the classes of insurance which the insurance undertaking has been authorized to offer;

(c) the nature of the commitments or the risks which the insurance undertaking proposes to cover in the Member State of the provision of services.

(2) At the same time, they shall inform the insurance undertaking concerned about the notification date provided in paragraph (1).

(3) The insurance undertaking which intends under the freedom to provide services to cover risks in class 10 of point B of the Annex to this law other than carrier liability shall:

a) communicate the name and address of the representative for claim settlement;

b) produce a declaration that it has become a member of the national bureau and

national guarantee fund of the Member State of the provision of services.

Article 15⁸

(1) When the Insurance Supervisory Commission does not communicate the information referred to in Article 15⁷ within 30 days, it shall give the reasons for its refusal to the insurance undertaking.

(2) The refusal to communicate the notification provided in paragraph (1) by The Insurance Supervisory Commission, shall be subject to a right to apply to the Bucuresti Court of Appeals in 30 days period from the communication date of the refusal.

Article 15⁹

The insurance undertaking may start business on the certified date on which it is informed of the communication provided for in the Article 15⁷ paragraph (2)

Article 15¹⁰

(1) Any insurance undertaking carrying out insurance business based on the right of establishment and freedom to provide services which does not respect the inforce legal provisions shall submit to the Insurance Superisory Commission all the legal documents required by Insurance Supervisory Commission regarding the activity, which also the insurance undertaking with head quarters in Romania have the obligation to submitt.

(2) The agencies and branches of the insurers and reinsurers authorized by the Insurance Supervisory Commission carrying out through them insurance or reinsurance activity on other Member States’ territory based on the right of establishment, are required to have a solvency margin consisting of assets free of any liabilities or debts, less any intangible items. The solvency margin shall be calculated in accordance with the provisions of the Regulations issued in the application of this law.

(3) For the purpose of calculating this margin, account shall be taken only of the premiums and claims pertaining to the business carried out by the agency or branch concerned.

Article 15¹¹

(1) If the Insurance Supervisory Commission establishes that an insurance undertaking with a branch or carrying on business under the freedom to provide services within Romanian territory is not complying with the legal provisions applicable in Romania it shall require the concerned insurance undertaking to remedy that irregular situation.

(2) If the insurance undertaking in question fails to take the necessary action, the Insurance Supervisory Commission shall inform the competent authorities of the home Member State accordingly. The latter authorities shall, at the earliest opportunity, take all appropriate measures to ensure that the insurance undertaking concerned remedies that irregular situation. The nature of those measures shall be communicated to the Insurance Supervisory Commission.

(3) If, despite the measures taken by the home Member State competent authorities or because those measures prove inadequate or are lacking in that State, the insurance undertaking persists in infringing the legal provisions in force in Romania, the Insurance Supervisory Commission, after informing the competent authorities of the home Member State, take appropriate measures to prevent or penalize further infringements, including, in so far as is strictly necessary, preventing that insurance undertaking from continuing to conclude new insurance contracts within its territory.

(4) If an insurance undertaking which has committed an infringement has an establishment or possesses property in Romania, the Insurance Supervisory Commission, in accordance with national law, apply the administrative penalties prescribed for that infringement by way of enforcement against that establishment or property.

(5) Before the branch of an insurance undertaking starts business, the Insurance Supervisory Commission will, within two months of receiving an information referred to the intention of that insurance undertaking to start business in Romania, inform the competent authority of the home Member State, of the conditions under which that business must be carried on in Romania.

Article 15¹²

Any measure adopted by Insurance Supervisory Commission under Article 15¹¹ will be properly reasoned and communicated to the insurance undertakings concerned.

Article 15¹³

(1) When the Insurance Supervisory Commission intend to carry out on-the-spot verifications of the information necessary to ensure the financial supervision of the Romanian insurance undertakings pursuing activity on the territory of the European Union, under the right of establishment and the freedom to provide services, it will inform the competent authorities of the host Member State about its intention.

(2) The Insurance Supervisory Commission after being informed by the competent authorities from the home Member State of the insurance undertaking that based on the right of establishment, carries out it’s activity through a branch on Romanian territory, regarding the intention to carry out an inspection, through it’s own personnel or through persons especially designated, in order to obtain the necessary information to financial supervise the insurance undertaking, shall allow this inspection to be carried out.

Article 15¹⁴

The information and documents required according to Article 15¹⁰ and Article 36³ (2) will be submitted to the Insurance Supervisory Commission in the Romanian language.

CHAPTER III²

Rules applicable to agencies or branches established on the Romanian territory and belonging to undertakings whose head offices are outside the European Union

Article 15¹⁵

(1) Any undertaking whose head office is outside the European Union and establishes an agency or a branch on Romanian territory is required to ask an official authorization from the Insurance Supervisory Commission.

(2) The Insurance Supervisory Commission may grant an authorization if the undertaking fulfils at least the following conditions:

a) it is entitled to undertake insurance activities covered by Article 2, letter. A, point 1, of the law;

b) it establishes an agency or branch on the territory of Romania;

c) it undertakes to establish at the place of management of the agency or branch accounts specific to the activity which it carries on there and to keep there all the records related to the business transacted;

d) it designates a general representative, to be approved by Insurance Supervisory Commission;

e) it possesses in Romania assets of an amount as provided by Article12 paragraph (5);

f) it undertakes to keep a solvency margin complying with Article 16, paragraph 5;

g) it submits a scheme of operations in accordance with the provisions of Article 12 paragraph 4 a) and by case, letter b)

h) submits any requested information by the Insurance Supervisory Commission, in compliance with the regulations provided in article 15¹⁰

Article 15¹⁶

Transfer of portfolio will be made according to the provisions of Article 5 letter f) and the regulations issued in the application of the law.

Article 15¹⁷

The insurance undertaking shall comply with the provisions of Article 21and Article 22.

Article 15¹⁸

The insurance undertaking shall comply with the provisions of Art.12 paragraph (4) letter i) and para. (5). letter a) and b), Article 16 paragraph (5), (5¹), (6), (6¹), of Article 18 and of the regulations issued in the application of the present law.

Article 15¹⁹

(1) Any undertaking which has requested or obtained authorization from more than one Member State may apply for the following advantages which may be granted only jointly:

a) the solvency margin referred to in Article 15¹⁸ shall be calculated in relation to the entire business which it carries on within the Community; in such case, will be taken into account only the operations effected by all the agencies or branches established within the European Union for the purposes of this calculation;

b) the deposit required under Article 12 para (5) letter b) shall be lodged in only one of those Member States;

c) the assets representing the guarantee fund shall be localised in any one of the Member States in which it carries on its activities.

(2) Application to benefit from the advantages provided for in paragraph 1 shall be made to the competent authorities of the Member States concerned. The application must state the authority of the Member State which in future is to supervise the solvency of the entire business of the agencies or branches established within the Community. Reasons must be given for the choice of authority made by the undertaking. The deposit shall be lodged with that Member State.

(3) The advantages provided for in paragraph 1 may only be granted if the competent authorities of all Member States in which an application has been made agree to them. They shall take effect from the time when the selected competent authority informs the other competent authorities that it will supervise the state of solvency of the entire business of the agencies or branches within the European Union.

The competent authority selected shall obtain from the other Member States the information necessary for the supervision of the overall solvency of the agencies and branches established in their territory.

(4) At the request of one or more of the Member States concerned, the advantages granted under this Article shall be withdrawn simultaneously by all Member States concerned.

CHAPTER III³

Rules applicable to subsidiaries of parent undertakings governed by the laws of a third country and to the acquisitions of holdings by such parent undertakings

Article 15²⁰

(1) The Insurance Supervisory Commission shall inform the Commission:

(a) of any authorization of a direct or indirect subsidiary belonging to one or more parent undertakings of which are governed by the laws of a third country.

(b) Whenever such a parent undertaking acquires a holding in a Romanian insurance undertaking which would turn the latter into its subsidiary.

(2) When authorization is granted to the direct or indirect subsidiary of one or more parent undertakings governed by the laws of third-countries, the structure of the group shall be specified in the notification, which the Insurance Supervisory Commission shall address to the Commission.

Article 15²¹

(1) The Insurance Supervisory Commission shall inform the Commission of any general difficulties encountered by the Romanian insurance undertakings in establishing themselves or carrying on their activities in a third-country.

(2) Whenever it appears to the Commission that one of the situations described in paragraphs 1 has arisen, the Insurance Supervisory Commission shall inform it at its request:

a) of any request for the authorization of a direct or indirect subsidiary one or more parent undertakings of which are governed by the laws of the third-country in question;

b) of any plans for such an undertaking to acquire a holding in a Romanian insurance undertaking such that the latter would become the subsidiary of the former.

(3) Following the provisions of art. 15²¹, para. (1) The Insurance Supervisory Commission, within a period of up to three months, which can be extended with explicit permission from from the European Commission, may suspend or limit decisions regarding:

a) granting the authorization for requests submitted prior to the publication of the suspending decision and also for the requests received during this period;

b) granting the right to obtain directly or indirectly the quality of semnificative shareholder of a Romanian insurance undertaking by a parent undertaking from a third country;

(4) The Insurance Supervisory Commission may decide the ceasing of the actions stated in para (3) upon receival from the European Commission of a notification stating that a mutual agreement has been established with the third country concerned;

(5) Measures taken under para. (3) shall comply with the European Union obligations under any international agreements, bilateral or multilateral, governing the taking up and pursuit of the business of insurance undertakings.

CHAPTER IV

“The insurers' activity”

Article 16

(1) Each insurer must cumulatively maintain:

a) Paid-up share capital, or after Romania joining the European Union, the guarantee fund or, in case of mutual insurance undertakings, the paid up free reserve fund;

b) the minimum 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 exempted;

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 the case, in accordance with the insurance activities carried-out.

(3) The paid-up social capital or the paid-up free reserve fund provided for in par. (2) will be periodically updated through regulations by the Insurance Supervisory Commission.

(4) The paid-up authorized capital or, as the case may be, the paid-up free provision fund, stipulated at the item a (1), have to be integrally submitted in a pecuniary form, both at their establishment and their increase;

(5) The insurer should hold in any moment the available solvency margin for the carried on activities. The available solvency margin, as well as the adjusted solvency margin for the supplementary supervision, is calculated and reported according to the provisions of the regulations laid down by the Insurance Supervisory Commission.

(5¹) Pending on the classes of insurance pursued, the insurance undertakings should calculate the minimum solvency margin, the calculation method and the reporting to be established by regulations issued by the Insurance Supervisory Commission.

(6) 1/3 of the minimum solvency margin mentioned at paragraph (1) letter b) must represent the guarantee fund. The elements of the guarantee fund shall be established by Regulations issued for applying the present law. The amount of the guarantee fund can not be less than the amount mentioned in the European insurance legislation and shall be updated through Regulation issued according to the provisions of this legislation. Pending on the classes of underwritten risks, the minimum amount of the guarantee fund is established by Regulations issued for applying the present Law. In the case of the mutual association, the guarantee fund represents at least 3/4 of the minimum amount of the guarantee fund set up for the insurance undertakings.

(6¹) Branches belonging to the insurance undertakings with the head offices in a third-country, established in Romania, the guarantee fund will be at least ½ of the minimum amount of the guarantee fund established for an insurance undertaking.

(7) In order to set the solvency margin the evaluation of assets and liabilities held by an insurer is achieved according to regulations which shall also comprise details regarding the category of assets and debts that are partially or not to be taken into account.

Article 17

(1) The shares issued by insurers ay only be nominative.

(2) Any form of association by which the share ownership is concealed from the Insurance Supervisory Authority is becoming null and void.

Article 18

(1) The assets of the insurance undertakings admitted to represent the technical reserves must be placed in Romania or in another Member State, for the risks underwritten in Romania and after joining the European Union, for risks underwritten in Romania or in another Member State.

(2) The assets of the insurance undertakings admitted to represent the technical reserves cannot be pledged and cannot be the object of any kind of guarantees to third parties.

(3) The non-pledged assets admitted to represent the technical reserves set up by the branches established in Romania, belonging to the insurershaving the head offices in a non-member country, should be kept in Romania up to the minimum amount of the guarantee fund and the surplus may be kept in the Member States.

Article 19

Insurers may invest or capitalize 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) employing a reasonable number of persons with the adequate professional knowledge, according to the Regulations issued for applying the present Law.

(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 regulations 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) supervision of its own personnel, subordinated units and its agents, subagents and tied agents and to draw up anti-fraud procedures without any prejudice to the insurance business carried on by the insurance undertaking;

c) to organize internal control procedures according to the legislation in force and the Regulations issued for applying the present Law.

c¹) to submit incomes and expenses budget, every year, within 10 days from it’s approval; any budget rectification shall be submitted to the Insurance Supervisory Commission within the same deadline;

c²) to organize an internal risk management system, according to the Regulations issued for applying the present Law.

c³) composites shall organize and manage accounting and operative evidence separately for both insurance business;

c⁴) to draw up reports regarding own reinsurance activity, as well as reinsurance programs, which periodicity, contents and shape will be established through the Regulations issued for applying the present Law;

c⁵) to set up procedures and to take the necessary measures for training it’s own personnel in order to observe the legislation in force and the Regulations issued by the Insurance Supervisory Commission regarding fighting terrorism and anti money laundering through insurance business.

d) to draw up and to present individual financial statements and, by case, consolidate statements, according to the accounting Regulations issued by the Insurance Supervisory Commission according to the legislation in force;

e) to submit any other financial reports, as well as other reports, statements or analyses requested by the Insurance Supervisory Commission or settled by Regulations issued for applying the present Law, notices or decisions;

f) to have a special register of the admitted assets to cover the technical provisions of the non-life insurance and a special register of the admitted assets to cover the technical provisions for life assurance in compliance with the provisions of the annex no.2 and of the Regulations issued for applying the present Law;

f¹) to draw up claims notice, receiving and settling procedures according to the Regulations issued for applying the present Law;

f²) to draw up claims receiving and settling procedures including out of court settlement, to open and to maintain a claim and notices register and to submit reports to the Insurance Supervisory Commission according to the Regulation issued for applying the present Law;

g) to have its annual financial statements and when the case consolidated, audited by a financial auditor, legal body, authorized by the Romanian Financial Auditors Chamber, approved by the Insurance Supervisory Commission, according to the Regulation issued for applying the present Law at least one person from the team designated by the auditor has to be an actuary, according to the definition from the present Law, or to prove this qualification though official documents issued by the authorities or professional association from other states;

h) to publish annually a report with at least the information mentioned in the Regulations issued for applying the present Law;

i) to submit the Insurance Supervisory Commission control bodies and specialized departments, all the requested reports, documents, statements and information.

Article 21¹

“(1) The financial auditor will draw up an annual report, containing his own opinion, from which will result if the annual financial statements have a clear image over financial status, financial performance, treasury flows and all other information regarding that activity, according to the professional standards published by the Romanian Financial Auditors Chamber.”

(2) At the same time the financial auditor shall analyze the procedures of the internal control and audit and, if considers them not appropriate, shall make recommendations to the insurance undertaking regarding their improvement and shall submit, upon Insurance Supervisory Commission request any details, clarifications and explanations regarding the information enclosed in the insurer’s financial statements;

(3) The financial auditor shall report to the Insurance Supervisory Commission as soon as, while performing it’s attributions, became aware of any fact or action, regarding the insurer or with the entities in the consolidation area, which:

a) is an infringement of the Law and/or the Regulations or the documents issued for it’s appliance, through which the insurer’s authorization and carrying on conditions are established;

b) is affecting the insurer’s patrimonial status or its good functioning;

c) may lead to an auditor’s denial to express its opinion regarding the insurer’s financial statements or to an unqualified opinion.

(4) Submission to the Insurance Supervisory Commission the information mentioned at paragraph (3) is not an infringement of any restriction regarding information disclosure and shall not imply any responsibility for the person involved.

(5) The Insurance Supervisory Commission notifies the Romanian Financial Auditors Chamber regarding any infringement of the provisions of paragraph (1) – (3), so that it can take all the necessary measures to remedy the situation.

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 monthly by adding together the quota-shares of the gross premiums written due to the unexpired period of the insurance contracts in such a way that the difference between the volume of the gross premiums written and this reserve to reflect the gross premiums allocated to the part of the expired risks 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 equalization reserve: is created in the years with favorable technical results in order to create claim covering sources for the years with non-favorable technical results.

(2) For calculating the reserves provided for in 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 carrying on life assurance, by observing the provisions of Article 28, should set up and maintain the technical reserves, including the mathematical reserves for the life assurances 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 regulations.

(4¹) The underwritten gross premiums, based on which the technical provisions stipulated at par. (1) – a, d, e and (3) will be calculated, will be established according to the stipulation 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) If the insurance policies provide the collection of the premiums and the payment of the claims in foreign currency, the technical reserves related can be established and maintained in foreign currency. The valuation will be made according to the provisions of the Regulations.

(7) Other category of technical reserves may be set through regulations and the stipulations of the present article shall also apply to these categories.

Article 22

(1) 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 regulations; at their elaboration, the categories and classes of insurance performed shall be taken into account.

(2) The assets admitted to cover the technical reserves of the insurer in a liquidation procedure is pledged for the policyholders’ claims, their claims to be ranked entirely before all other creditors.

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 authorization of the Insurance Supervisory Commission.

(4) The transfer of portfolio is approved by the Insurance Supervisory Commission, according to the law, also for an insurer that merges, divides, enter into the financial recovery, re-organization or winding-up, by case.

Article 24 abolished

Article 24¹

(1) Any potential policyholder may conclude an insurance contract with any insurer authorized by a competent authority from the member states.

(2) The insurers shall communicate to the policy-holders or to the potential insureds, before the signing of the insurance contract, at least the following information: the term of the contract, the means of performing, suspending or terminating the contract the means and terms of payment of premiums, the means of calculation and distribution of bonuses, the arrangements for handling complaints concerning contracts, as well as other necessary information, during the term of the contract according to the regulations issued in the application of this law.

Article 24²

The insurers and the brokers undertake the insurance and reinsurance operations usually in ROL, and if they assume the payment obligations, in foreign currency, these obligations are to be made in a foreign currency according to the law.

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 organize 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 conclude agreements regarding co-insurance, pools and other specific forms of cooperation, in order to insure or reinsure certain risks, according to the Regulations issued in the application of the present Law.

(3) a) The insurance undertakings issuers of Green Card international insurance documents, shall set – up the Romanian Motor Insurance Bureau, according to the provisions of the Green Card International Agreement .

b) The Romanian Motor Insurance Bureau is a professional association, independent and autonomous, which on the basis of the Green Card International Agreement has responsibilities in the field of regulating the activity of the insurance undertakings issuers of international insurance documents.

(3¹) a) The insurance undertakings pursuing MTPL insurance shall affiliate, until January 31, 2006, the latest, to the Romanian Motor Insurance Bureau. The insurance undertakings that receive the authorization to pursue MTPL must affiliate to the Romanian Motor Insurance Bureau within 30 days from receiving the authorization.

(4) The insurers pursuing MTPL within Romanian territory and abroad have the obligation to set-up the Green Card Joint Fund.

Article 25¹

(1) All insurance undertakings authorized to pursue compulsory third party liability motor insurance (class 10 from letter B of Annex no. 1, excepting the civil liability of the carrier), must set – up the Street Victims Protection Fund, hereinafter named the Fund.

(2) The Fund is set – up as an association, private law legal person with no patrimonial purpose, according to the legal provisions regarding the associations and foundations, of the present Law and of the Regulations issued in its application.

(3) The Constitutive Act of the association, as well as the subsequent amendments, shall be prior notified by the Insurance Supervisory Commission.

(4) The Fund is run by a Board of Directors composed of 5 members, which are subject to the prior notification of the Insurance Supervisory Commission.

(5) One of the members of the Board of Directors shall be appointed by the Insurance Supervisory Commission.

(6) The members of the Fund are obliged to contribute, by subscription, to the setting – up and to the maintenance of its financial stability, proportional to the volume of gross earned premiums from selling the third party liability motor insurance which covers claims arising from the use of the terrestrial vehicles, excepting the civil liability of the carrier, until all payment liabilities are covered.

(7) The level of the subscription and the payment deadlines are yearly established by the Insurance Supervisory Commission. The amount of the subscription can go up to 5% from the volume of gross earned premiums for this insurance.

(8) The Fund’s incomes and expenses budget, as well as its corrections, are approved by the Insurance Supervisory Commission Council.

(9) In case of deficit, the Insurance Supervisory Commission may increase the subscription during the year.

(10) The Fund is set – up for the purpose of :

a) providing information to the persons injured in vehicle accidents, as Information Center (CEDAM)

b) compensating the persons prejudiced in vehicle accidents, if:

- the vehicle, the tram respectively, that caused the accident remained unidentified or it was MTPL uninsured although , according to the provisions of the legislation in force, its owner had the obligation of concluding such insurance;

- within three month from the date it has submitted a claims request, the person resident in Romania that has suffered a prejudice following a vehicle accident occurred within the territory of a state situated within the territorial limits, excepting Romania, or within the territory of a third country whose national office has jointed the Ť  Green Card ť system, by a vehicle normally based in a Member State of the European Economic Area or Switzerland, did not receive an reasoned answer from the insurance undertaking of the vehicle liable for the accident or from its claims representative, or if the insurance undertaking did not appoint a claims representative within Romanian territory or if within two months from the occurrence of the accident the insurance undertaking could not be identified. The Fund fulfills these attributions as Compensation Body.

(11) The insurance undertakings mentioned in paragraph (1), have the obligation to appoint in each state belonging to the European Economic Area and Switzerland, a representative responsible with claims adjustment caused by vehicles subject to registration within Romania to the residents of these states, on condition that the accident occurs on the territory of another state than the residence state of the injured person.

(12) The Fund has active legal procedural identity, in any Court trail against the persons having a legal relationship with it, for the payment obligations paid or which are certainly to be paid by the Fund.

(13) The act by which the payment obligation of an insurer to the Fund is found-out and identified represents a debt title, according to the law.

  (14) At the due date the debt title becomes right of execution, on the basis of which the Fund shall start the by-enforcement procedure for recovering the debts, according to the provisions of the civil procedure Code.

(15)  In order to recover the amounts spent the Fund has regress right against the body that caused the prejudice.

(16) Yearly, the Fund shall submit to the Insurance Supervisory Commission Council an activity report, whose form and content shall be established through Regulations issued for the application of the present Law.

(17) The report shall be accompanied by the annual financial statements drawn – up according to the legislation in force and audited according to the provisions of the present Law and of the Regulations issued for its application.

(18) Within 6 month from the end of the previous year, the Fund shall publish a report, whose form and content shall be established through Regulations issued for the application of the present Law.

(19) The way of setting – up, use and placement of the amounts available to the Fund and the persons having the right to compensation are established through Regulations issued for the application of the present Law by the Insurance Supervisory Commission.

CHAPTER V

The separation of management of life assurance and non-life insurance for the insurance undertakings having composite activity

Article 26

The insurance undertakings, which until December 31^st, 2005 were authorized to pursue composite activity, may continue to pursue life assurance and non-life insurance activity only if management for the two activities is separate according to the provisions of the present Law and the Regulations issued for applying the present Law.

Article 26¹

(1) The separate management of the two activities, mentioned in article 26, shall be organized to ensure a clear distinction between this activities, to be in compliance with the following objectives:

a) the life and non-life policyholders interests shall not be prejudiced, especially the benefit recorded by one of the activities should not be used for improving the other activities, except the special cases and with the special approval of the Insurance Supervisory Commission according to the condition mentioned for such cases by the Regulations issued for applying the present Law.

b) the minimum of the financial liability, especially the solvency margin established according to the provisions of the Law and the Regulations issued for it’s application for both activities are separately accomplished without any transfer of assets one activity to another.

(2) When other assets are available for one of the two activities, according to provisions mentioned at letter b), separately distinguished, can be use for the other activity but only with the prior approval of the Insurance Supervisory Commission.

(3) The Insurance Supervisory Commission will periodically analyze the results of both activities, to ensure the application of the article’s provisions.

Article 26²

(1) The composites shall organize and manage accounting evidence separately for both insurance businesses.

(2) Therefore, all the revenues (especially the earned premiums, the reinsurers and assets investment payments), and all the expenses, especially regarding losses, additional amounts for the technical provisions, reinsurance premiums, operational expenses for the specific activity should be divided according to their origin.

(3) Mutual operational expenses will be allocated to each activity according to a distribution key which will be maintained during at least one financial year.

(4) Using this distribution key is allowed only with a prior approval of the Insurance Supervisory Commission.

Article 26³

The composites shall calculate the available solvency margin separately according to the method established by Regulations issued for applying the present Law for both activities and draw up a report to identify the assets and liabilities used for the solvency margin calculation.

Article 26⁴

(1) When one of the two solvency margin is insufficient, the Insurance Supervisory Commission will apply specific recovery steps for the activity with deficiency, according to the provisions of the Law and Regulations issued for applying the present Law.

(2) The transfer between this two activities, when dealing with a situation mentioned in paragraph (1), shall be made only in special cases and only under the conditions and with a prior approval of the Insurance Supervisory Commission according to the provisions of the Law and Regulations issued for applying the present Law.

Article 26⁵

For ensuring a prudential management for both activities carried on by the composites, the Insurance Supervisory Commission will approve of not, according to the provisions of the present Law and Regulations issued for applying the present Law, life assurance and non-life insurance departments managers, as well as the persons with future managing positions in these departments.

Article 26⁶

The composites shall keep an assets special register for both activities, according to the provisions of annex no.2 of the present Law.

Article 26⁷

The composites shall submit to the Insurance Supervisory Commission all the information, documents and reports whose form, contents, information, details and licenses are established by the Regulations issued for applying the present Law for both activities.

CHAPTER V¹

Life Assurance business

Article 27

(1) The administration of life assurances and the due life assurance fund including the investment and the assets valuation, as well as the calculation of technical reserves is made according to the regulations.

(2) The insurer who carries-out a life assurance business must:

a) initiate the examination of life assurance activity consisting of the calculation, according to the fundamental and generally accepted principles of the actuarial calculation, of the liabilities due to the life assurances fund and the necessary technical reserves as well as a valuation of the matching of the life assurance fund and the due assets; the examination is made each 12 months or shorter period if the Insurance Supervisory Commission considers necessary.

b) elaborate a report of the audit results provided for in let. a), deemed by this law the life assurance report, whose format, content of additional information, documents and details and whose way of certification are set through regulations;

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 Article 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 insurer 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

Prudential measures regarding the provisions setting up

Article 28¹

(1) If an insurer does not comply, when the case, with article 21(1) or article 27(2) the Insurance Supervisory Commission will prohibit the free disposal of its assets after having communicated its intention to the competent authorities of the Member States in which the risks are placed.

(2) If the Insurance Supervisory Commission is of the opinion that the financial situation of the insurer will deteriorate further it may restrict or prohibit the free disposal of the insurer's assets. It will therefore inform the authorities of other Member States within the territories of which the insurer carries on business of any measures it has taken and the latter shall, at the request of the Insurance Supervisory Commission, take the same measures.

(3) The Insurance Supervisory Commission may also restrict or prohibit the free disposal of the insurer's assets and it will inform the authorities of other Member States within the territories of which the insurer carries on business accordingly and the latter shall, at the request of the Insurance Supervisory Commission, take the same measures.

(4) The Insurance Supervisory Commission may take all measures necessary to safeguard the interests of insured persons in the cases provided for in paragraphs 1), 2) and 3).

(5) The Insurance Supervisory Commission, in accordance with the provision of the present Law, upon the request of the authorities of the home Member State will prohibit the free disposal of assets located within the Romanian territory for an insurance/reinsurance undertaking which based on the freedom of establishment carries on insurance/reinsurance activity on Romanian territory.

CHAPTER VII

Insurance and/or reinsurance intermediaries

Article 33

(1) Insurance and reinsurance intermediaries are, when the case, registered or authorized by the Insurance Supervisory Commission in accordance with the Regulations issued for applying the present Law, or at the competent authority of the home Member State.

(2) The insurers cannot carry on insurance activities by using unauthorized and/or unregistered insurance intermediaries, exempting the ones that, having a professional activity other than the insurance mediation, mediating insurance contracts are fulfilling cumulative the following conditions:

a) the mediated insurance contract needs only knowledge regarding the risk covered through this;

b) does not belong to life assurance;

c) does not cover the TPL risk;

d) they are additional to other products or services provided by another supplier, covering the following risks: cessation of the activity, the loss or the impairment of the supplier goods, the loss or the impairment of the luggage, other risks related to the supplier travel, even if the mediated insurance contract covers life assurance or TPL risks, if this is ancillary to the main risk related to the said travel;

e) the annual premium does not exceed the equivalent of Euro 500 and the validity of the mediated insurance contract, including the renewal, does not exceed 5 year.

(3) insurance and/or reinsurance intermediaries should provide in written the customers, prior to the conclusion, amendment or renewal of the insurance or reinsurance contract, at least the following information regarding: his identity; addresses and the register in which he has been included and the means for verifying that he has been registered; holding at least 10% of the voting rights or the insurers/reinsurers capital, holding by the insurance undertaking or by parent undertaking of an insurance undertaking at least 10% of the voting rights or the insurance/reinsurance intermediary’s capital; the out of the court or in the court solving procedures of any possible dispute between customers and insurance intermediary as well as any information according to the provisions of the Regulations issued for applying the present Law.

(4) The insurance premiums paid by the customer to the insurance intermediaries are treated as having been paid to the undertaking at the time of payment; the claims or the insured sum paid by the undertaking through insurance intermediaries are not treated as having been paid to the customer until the customer actually receives them.

(4¹) Incomes and payments made in the name or in the account of the insurers or reinsurers, representing insurance or reinsurance premiums or claims, by the insurance and/or reinsurance intermediaries are operated through accounts opened at the credit institutions others than the accounts through which the current activity is operated.

(5) In case of an insurance and/or reinsurance intermediary’s bankruptcy, the amounts existing in the accounts through which incomes and payments made in the name or in the account of the insurers or reinsurers are operated, cannot be used in order to compensate other creditors than the ones mentioned in paragraph (4).

(6) The status of an insurance or reinsurance agent or tied agent, the natural or legal body, and also of subagent is not compatible with the one for insurance and/or reinsurance broker or broker assistant.

(7) The bancassurance activity is carried on only by tied insurance agents according to the provisions of the present Law and the Regulations issued for applying the present Law.

(8) By departing from the provisions of the present Law and the Regulations issued for applying the present Law, insurance and/or reinsurance intermediaries legally established as share company should have a minimum paid-up share capital according to the provisions of Law no 31/1990 republished, with subsequent amendments and completions and have the obligation to name at least two natural persons in the executive management.

(9) Insurance and/or reinsurance intermediaries legally established as limited companies may choose to name at least two natural persons in the executive management.

(10) All the persons from the executive management should comply with the conditions and criteria for approval of the significant persons of the insurance and/or reinsurance intermediaries, established by the Regulations issued for applying the present Law.

(11) Any insurance and/or reinsurance intermediary which did not deposit at the insurance or reinsurance undertakings the amounts cashed as insurance or reinsurance premiums, after 30 days from the term of payment mentioned in the contract, is presumed to be insolvent because of the payment cessation.

(12) Insurance Supervisory Commission will be able to introduce application against the insurance and/or reinsurance intermediaries mentioned at paragraph (11), in order to start the procedure mentioned in Law no 64/1995 regarding the legal reorganization and bankruptcy, republished with subsequent amendments and completions.

(13) Any insurance intermediary, natural body which did not deposit at the insurance undertaking the amounts cashed as insurance premiums, after 30 days from the term of payment mentioned in the contract, shall immediately be executed by the insurance undertaking regarding the guarantee made according to article 34, paragraph 2, letter d), and if the guarantee doesn’t cover the prejudice, it will be followed regarding any goods in its property, according to the legislation.

(14) Insurance and/or reinsurance intermediaries, legal bodies, authorized or registered, when the case according to the provisions of the present Law and Regulation issued for applying the present Law, have the obligation to post at all offices, main and secondary, in a visible spot, copies of the registration certificate issued by the Insurance Supervisory Commission, for the insurance and/or reinsurance brokers, or of the registration certificate issued by the insurance or reinsurance undertakings, for insurance or reinsurance agents, legal bodies, after registration in the register mentioned at article 34, paragraph (4).”

Article 34

(1) A natural or legal person, may carry on the activity as an insurance agent if he holds a valid authorization from an insurer called in this law the agency contract, in order to be able to act on behalf of the insurer.

(2) The insurance agent, as a natural person, must comply with the following conditions:

a) to have specialized qualification and/or the competences, the knowledge and the skills suitable for this activity in accordance with the requirements of the regulations issued by the Insurance Supervisory Commission in the application of this law;

b) to hold a valid contract of civil liability insurance or a comparable guarantee set by an insurance undertaking on behalf the agent is acting or is empowered, valid within the territory of the European Union and of the European Economic Area according to the requirements of the regulations;

c) to have a clean police record in relation to crimes against property or other crimes related to financial activities;

d) to fulfill the conditions laid down by the legislation in force regarding the employment of administrators, the pledging of guarantees and the duties related to the administration of funds of companies or public institutions;

e) to have a good repute;

(3) The insurance agent, as a legal person must fulfill the following:

a) its only business to be that of an insurance agent, with the exception provided by the provisions of Article 33 paragraph (2) of this law;

b) to have a valid third party liability insurance contract, in amount of 75% from the ones stated at article 35, paragraph (5), letter c);

c) it has not been declare bankrupt or it is not the subject of a judicial reorganization and/or winding-up procedure when is asking for the authorization;

d) to have a good repute and the name of the agent have to include the collocation ‘’agent de asigurare’’ and not to mislead the public;

e) the associates, the qualifying holdings and the significant persons to have a clean police record in relation to crimes against property or other crimes related to financial activities;

f) the executive manager to comply with the conditions regarding the required qualification and experience to hold such position, according to the regulations issued by the Insurance Supervisory Commission.

(4) The insurance undertakings have the obligation to open and maintain a special register, named Insurance Agents’ Register, in an electronic system with compulsory archive of all the modifications, part of the insurers, reinsurers and insurance and/or reinsurance intermediaries Register, mentioned in article 5, letter r), of the present Law. The form and the contents of this Register shall be established through Regulations issued for applying the present Law.

(4¹) After registration, the insurers have the obligation to issue to the insurance intermediaries, legal bodies, registration certificate and to the insurance intermediaries, natural bodies, a pass. The information to be mentioned in these documents will be established through Regulation issued for applying the present Law.

(4²) This register, will be annually put on paper support, and certified for adequacy by the executive management of the insurer or reinsurer.

(4³) Insurance undertakings shall record in the register mentioned at paragraph (2) and (3) and the ones established through the Regulations issued for applying the present Law, both the insurance agents, natural or legal bodies, with whom they concluded agent contracts as well as the subagents and the tied agents; the insurers shall periodically update all data, according to the provisions of the Regulations mentioned in this paragraph.

(5) The data recorded into the agents register will be transferred through IT system both to the Insurance Supervisory Commission and to the professional association or union of which the insurer is a member, these being permanently available to the public at the head office and to the Internet sites of the insurer, the supervisory authority or the above mentioned association or the professional organization; these data is regularly checked up by the Insurance Supervisory Commission.

(6) The professional requirements for a insurance agent natural persons, the data recorded into the agents register, the insurersduties as regards the insurance agents supervision as well as other provisions regarding the insurance agent are established by regulations issued by the Insurance Supervisory Commission.

(7) The insurance agents natural persons have the right to register with the Labour Chamber of their domicile area, in order to benefit from the rights provided for in the legislation in force regarding the working years, the pension and the social security funds.

(8) An insurance agent, either natural or legal person, can mediate the same insurance classes for one insurer only.

(9) If a customer concluded an insurance contract through the mediation of an insurance agent, the insurer on behalf the agent is acting for is liable to the customer for all the insurance agent facts and omissions.

(10) Insurance agents, natural and legal bodies and subagents, registered in compliance with the provisions of the present Law and with the Regulations issued for applying the present Law, should include any issued document, other than the ones issued by the insurers from which they have a mandate, including their own third party correspondence, the unique code from the register mentioned at paragraph 5, letter r), as well as the following expression: “Registered at the Insurance Supervisory Commission”.

(11) Insurance agents, natural and legal bodies and tied insurance agents, natural and legal bodies, as well as the subagents, have the obligation to write all the documents received from the insurers from which they have a mandate, the unique code from the register mentioned at paragraph 5, letter r);

(12) After Romanian joining to the European Union, insurance or reinsurance agents, natural or legal bodies, intending to pursue insurance or reinsurance mediation business on the territory of other Member States must have a valid third party liability insurance contract equal with the one of the insurance and/or reinsurance brokers, valid on the European Union territory and in states belonging to European economic area.

Article 35

(1) A legal person may pursue an insurance and/or reinsurance mediation activity as an insurance and/or reinsurance broker if an official authorization is granted by the Insurance Supervisory Commission.

(2) In order to obtain the authorization, the applicant shall submit to the Insurance Supervisory Commission the documents proving that he will comply with the provisions of paragraph (5) letter. a) - d) and h).

(3) The Insurance Supervisory Commission shall decide upon granting the functioning authorization as an insurance and/or reinsurance broker, or upon not admitting the functioning authorization, within 60 days from the date of receiving all the documents.

(4) The starting date from which the insurance/reinsurance broker can begin his lucrative activity is established by the decision that grants the authorization to the applicant, decision issued and signed by the President of the Insurance Supervisory Commission Council.

(4¹) Insurance and/or reinsurance brokers, authorized in compliance with the provisions of the present Law and with the Regulations issued for applying the present Law, shall include in all the documents issued, including in third party correspondence, the unique code from the register mentioned at paragraph 5, letter r), as well as the following expression: “Authorized by the Insurance Supervisory Commission.

(4²) Insurance and/or reinsurance brokers have the obligation to write on all documents received from the insurance and reinsurance undertakings the unique code allocated by the register mentioned at Article 5, letter r).

(5) Any insurance and/or reinsurance broker must fulfill the following conditions:

a) to be a legal body and in his name to be included compulsory the phrase insurance broker, insurance-reinsurance broker or reinsurance broker, by case, or in a frequent language for insurance business;

b) have a paid-up social capital in cash amounting no less than Rol 150 million; this value will be updated through regulations by the Insurance Supervisory Commission;

c) to have a valid compulsory MTPL insurance contract, having the value in accordance with the provisions of the Regulations issued for applying the present Law, which after Romania becoming a Member State shall be valid on the European Union and European Economic Area territory.

c¹) The value of the compulsory MTPL insurance contract mentioned at letter c) shall be periodical updated according to the Regulations issued for applying the present Law according to the European legislation.

d) have as only object of activity the insurance and/or reinsurance 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 insurersand/or reinsurers;

f) Comply with the requests of the Insurance Supervisory Commission concerning the reports, business management, as they will be set by regulations;

g) it has not been declared bankrupt or it is not the subject of a judicial reorganization and/or winding-up procedure when is asking for the authorization.

h) to have a personnel which shall correspond with the training and qualification criteria, according to the conditions and criteria for insurance and/or reinsurance intermediaries.

i) open and maintain the Brokerage Assistants Journal, which has a regime, form and contents established by the Regulations issued for applying the present Law.

(6) The Insurance Supervisory Commission shall deny an insurance and/or reinsurance broker’s application for authorization if:

a) associates or shareholders, natural bodies, as well as the significant persons, by case, have a criminal record for offences against patrimony or offences specified by fiscal-financial legislation;

b) the executive manager's background and experience do not comply with the criteria establish 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 para.(5).

(7) The authorization granted to an insurance and/or reinsurance broker may be withdrawn by the Insurance Supervisory Commission when:

a) it finds that the insurance and or reinsurance broker was in one of the situations stated in par. (6);

b) the insurance/reinsurance broker did not pay the fees provided by in Article 36.

c) within 6 months from the authorization issuing date, did not start to carry-on the insurance and/or reinsurance activity;

d) within 4 months period did not submit any reports to the Insurance Supervisory Commission

e) renounces to insurance and/or reinsurance activity and requests the authorization withdrawal;

f) repeatedly infringes the provisions of the present Law and of the Regulations issued for applying the present Law.

(8) The Insurance Supervisory Commission will publish at least once in a year, in the Official Gazette of Romania and also in a national publication, an updated list of all authorized insurance/reinsurance brokers and any other information considered necessary in the application of this law.

(9). An insurance and/or reinsurance broker cannot be a shareholder, direct or indirect or manager at an insurer, reinsurer, insurance or reinsurance agent, or at an tied agent.

(9¹) An insurance/reinsurance undertaking or insurance/reinsurance agent, natural or legal body, or a tied agent, natural or legal body, cannot be a shareholder, direct or indirect, or an administrator of an insurance and/or reinsurance broker administrator.

(10) Subject to the mandate of the insurer and/or reinsurer , the Insurance and/or reinsurance brokers are entitled to collect premiums on their behalf, to pay on their behalf the claims, in the currency provided by in the insurance or reinsurance contracts, fulfilling the in force legislation and, if the case will be to issue insurance or reinsurance documents.

(11) The insurance and/or reinsurance brokers cannot carry-on their activity with insurance agents, natural or legal bodies, or subagents, or tied agents, but only through their own personnel and/or brokerage assistants.

(11¹) Brokerage mandate cannot be fulfilled through an insurance/reinsurance agent, natural or legal body, or by a subagent or a tied agent.

(11²) Before concluding a brokerage mandate with a client, the insurance broker should demand a written prove resulting that the client did not sign any brokerage mandate with other brokers.

(11³) When the client has doubts concerning the brokerage mandate he can request by mutual agreement the amendment of the mandate, or the annulment of the brokerage mandate if there are misunderstandings. In all the above mentioned cases the client must sustain his request with a written notice to be sent within:

1. 10 days before the date of the mutual understanding; or
2. 30 days before the annulment of the mandate

(11⁴) When the provisions mentioned at paragraphs. (11²) and (11³) points 1 and 2 are infringed the broker has the right to ask for the reimbursement of the expenses made till the time his informed about the provisions mentioned above , and by case to ask for damage to property.

(11⁵) The insurance and/or reinsurance broker’s own personnel, which has as a main duty the insurance and/or reinsurance contracts mediation, shall be enrolled in the register mentioned in article 5, letter r) in the present Law, according to the conditions specified in the regulations issued for applying the present Law.

(11⁶)The brokerage assistants shall be enrolled in the Brokerage Assistants’ Journal.

(12) The insurance and/or reinsurance brokers may establish professional unions and may adhere to specialized international unions, complying with the obligations stated by in the constitutions of these institutions.

(13) The promotion or advertising activity had to comply in principal with the rules governing this activity adopted in the interest of general good.

(13¹) Insurance and/or reinsurance brokers are forbidden to do any paid advertising or publicity for the products, activity or any insurers or reinsurers acts.

(14) When Insurance Supervisory Commission finds out about the advertising of insurance and/or reinsurance intermediaries, which have their head office or residence, when the case, in Romania, are not complying with these rules, shall apply the sanctions mentioned in article 39, paragraph 2, letters d) or e).

(15) All the reports, documents and insurance and/or reinsurance brokers’ applications, as well as any kind of correspondence with the Insurance Supervisory Commission, will be signed, when the case, only by certain persons.

(16) Any empowerment for another person, issued even by the administrators, or the sole administrator, when is not in the managing board is not valid.

(17) By derogation from the provisions of the previous paragraph, when the management activity is ruled by one person, when really needed, the persons mentioned in paragraph (16) may mandate another person within insurance and/or reinsurance broker, to fulfill the obligations stated in paragraph (15).

(18) The empowerment showing the validity period, must be submitted within 2 days from its emission to the Insurance Supervisory Commission.

Article 35¹

Insurance and/or reinsurance brokers shall submit to the Insurance Supervisory Commission the annual financial statements, as well as other requested information, on the forms and terms established by the regulations issued for applying the present Law.

Article 35²

(1) Insurance and/or reinsurance brokers may put good use or invest the share capital, as well as the capital reserves, real estate or securities (bank deposits, shares, liabilities other securities, buildings for own use or for renting).

(2) The incomes from the renting activity may reach maximum 15% from the incomes related to the insurance activity intermediary.

Article 36

(1) An insurance broker who applies for the authorization according to Article 35, shall pay when submitting the application, an authorization fee of Rol 30,000,000; the value of the authorization 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 authorization request be denied, the authorization fee will not be refunded.

(3) Insurance and/or reinsurance brokers, starting the granting and during the validity of their authorization shall pay a functioning fee, established yearly by the Insurance Supervisory Commission, of up to 0.3 percent , from their brokerage income, applied to the icome due to the reporting period.

(3¹) After the European Union Romanian joining, the functioning tax mentioned in paragraph (3) may increase up to maximum 0.5% from the brokerage activity revenues for the due period, towards the liabilities of the Insurance Supervisory Commission, after Romania becomes an European Union Member State.

(4) The insurance brokers shall pay the functioning fee at dates established by regulations.

(5) When the functioning fee provided by paragraph (3) is not paid in due term, the Insurance Supervisory Commission will calculate penalties according to the in force legislation regarding the collection of the fiscal debts.

CHAPTER VII¹

“Right of establishment and freedom to provide services of the insurance and/or reinsurance intermediaries”

Article 36¹

(1) The insurance and/or reinsurance intermediaries authorized and/or registered with the Insurance Supervisory Commission to carry on insurance mediation in Romania may, by case, to pursue insurance mediation in any other Member State.

(2) The insurance and/or reinsurance brokers may carry on activity according to paragraph (1) with the prior notification of the Insurance Supervisory Commission

(3) The insurance and/or reinsurance brokers submit the following documentation and information to the Insurance Supervisory Commission:

a) the Member State it wishes to intermediate insurance;

b) its structural organization;

c) the address in the host Member State from which documents may be obtained and to which they may be submitted;

d) name, qualification and the expertise of the executive director who has the competence to represent and to imply the intermediary in relation to third parties in the respective Member States, including the proof that he has a clean police record in relation to crimes against property or other crimes related to financial activities;

(4) The Insurance Supervisory Commission sends this information within 30 days to the competent authority of the Member State, only if that Member State notified the European Commission of its wish to be informed about such intentions.

(5) If the Member State has not notified the European Commission about his wish to be informed, as provided by par. (4), the insurance/reinsurance broker can initiate its activity immediately

Article 36²

If the Insurance Supervisory Commission wishes to be informed of the intention of any insurance and/or reinsurance intermediary from a Member State to carry on insurance and/or reinsurance mediation in Romania it will notify this to the European Commission. The insurance and/or reinsurance intermediary shall submit through the competent authority of the home Member State the required documentations and information according to the provisions of the legislation in force.

Article 36³

(1) The insurance and/or reinsurance intermediary having the residence and, by case, the head office in a Member State, under the right of establishment and freedom to provide services, who wishes to pursue mediation activity in Romania, shall comply with the Romanian legislation,.

(2) The Insurance Supervisory Commission requires an insurance and/or reinsurance intermediary pursuing mediation activity in Romania, any legal information and documents necessary to verify the compliance with the national legislation.

Article 36⁴

(1) If the Insurance Supervisory Commission finds out the non-compliance with the national legislation provisions by the insurance and/or reinsurance intermediaries carrying on a mediation activity in Romania according to Article 36³ requires the necessary measures to be taken in order to redress the situation.

(2) When the Insurance Supervisory Commission finds out that the insurance intermediary does not take, all the necessary measures to redress the situation it informs accordingly the home Member State competent authorities.

(3) When all the measures took by the home Member State competent authority are proved to be inappropriate and/or insufficient and if the insurance intermediary persists in infringing the provisions of the national legislation in force, the Insurance Supervisory Commission exerts its legal powers according to the law to apply the sanctions provided for in this law, including the forbidden of the insurance and/or reinsurance mediation activity in Romania.

Article 36 ⁵

In case of withdrawal the authorization or, by case, the erasing from the Insurance Agents Register of an insurance and/or reinsurance intermediary, having its head office in Romania, the Insurance Supervisory Commission will notify all the competent authorities on which territories that intermediary is pursuing its activity, under the right of establishment and freedom to provide services.

Article 36⁶

(1) The promotion or advertising activity had to comply in principal with the rules governing this activity adopted in the interest of general good.

(2) In the case of insurance or reinsurance intermediaries pursuing activity, under the right of establishment and freedom to provide services, Insurance Supervisory Commission will ask to cease immediately to infringe the rules and in the event that intermediaries do not comply with this requirement Insurance Supervisory Commission will inform accordingly the competent authority of the home member state.

Article 36⁷

The Insurance Supervisory Commission shall take the necessary measures to ensure the right publication of the provisions requested for insurance business on the Romanian territory.

Article 37

(1) No act or omission, by an insurer or its agent, that breaches any provision of this law, of the law applicable to 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 canceling an insurance contract.

(2) abolished

(3) abolished

Article 38

(1) The promotion or advertising activity had to comply in principal with the adopted rules governing this activity in the interest of general good.

(2) When the Insurance Supervisory Commission finds out that the insurance/reinsurance undertakings publicity activity on Romanian territory does not comply with the existing regulation shall apply sanctions stated at Article 39 par. (3) letters d) or e).

(3) In the case of insurance or reinsurer pursuing activity, under the right of establishment and freedom to provide services, Insurance Supervisory Commission will ask to cease immediately to infringe the rules and in the event that undertaking does not comply with this requirement Insurance Supervisory Commission will inform accordingly the competent authority of the home member state.

Chapter VIII

Sanctioning and controlling activity

Article 38¹

(1) Breaching the provisions of the present Law, of the Regulations adopted in its application as well as of the notifications, decisions or information requests, of the documents and reports is found out by the Insurance Supervisory Commission, by a exerting a permanent control, periodical or on – the – spot of the insurers, reinsurers, insurance and/or reinsurance intermediaries, of the Street’s Victims Protection Fund or of the bodies that organize training courses.

(2) Carrying out a periodical or on a spot control activity is a decision taken by the Insurance Supervisory Commission Council.

(3) The sanctions are established by the Insurance Supervision Council on the basis of the finding out documents drawn-up by the specialized directorates that perform the permanent control at the head-office of the insurance supervisor or of the minutes drawn – up following the periodical or on-the-spot inspections performed by the control teams appointed for this purpose, at the head-office of the insurer, reinsurer, insurance and/or reinsurance broker, Street’s Victims Protection Fund or of the body that organizes training courses.

(4) The pursuance of the sanctions is carried out by the specialized departments who have drawn up the reports or by the Control General Directorate for periodical or on the spot controls.

(5) The permanent control activity is carried out at the Insurance Supervisory Commission head office, by the specialized departments, considering:

a) Periodical or annual information and report dates, established by the present Law and the Regulations issued for applying the present Law.

b) documents and information requested through notes or decisions by the Insurance Supervisory Commission for a better prudential supervision;

c) documents and information needing preliminary approval of the amendments established by the insurance/reinsurance undertakings and insurance/reinsurance brokers.

d) observance of the reports, information, documents presentation terms and of the information stated at letters a), b) and c)

(7) Within 3 days from receiving the answer to the notice mentioned at paragraph (6), the specialized department shall propose to the Insurance Supervisory Commission Council through a notice report the sanctioning measures along with the receiving answer.

(8) The notice report shall be drawn up and be presented to the Insurance Supervisory Commission Council according to the same deadline stated at paragraph (7), and paragraph (6) when there is no answer to the stated notice.

(9) The terms stated at paragraphs (6) and (7) are entering into force from the date when the notification was registered by the insurance/reinsurance undertakings, insurance and/or reinsurance intermediaries, the Street’s Victims Protection Fund, the bodies organizing training courses, by case, and, respectively from with the date when the notification answer was registered date by the specialized department that issued the notification.

(10) In terms of nature, seriousness and the frequency deviation, the Insurance Supervisory Commission Council may decide to apply sanctions according to the provisions of the present Law, as well as an on spot control activity at the insurance/reinsurance undertakings and insurance/reinsurance intermediaries Head Offices, or when is facing an periodical control will request the extension of the control over the negative aspects.

(11) The periodical controls and their scope shall be notified to the executive management of the insurance undertakings, reinsurance undertakings and insurance and/or reinsurance brokers, or if the case, to the Board of directors of the Street’s Victims Protection Fund, insurance or reinsurance agents and tied insurance agents, legal persons with 30 days before the starting date.

(12) Insurance undertakings, reinsurance undertakings and insurance and/or reinsurance brokers, legal persons, the Street ‘s Victim Protection Fund or the bodies organizing training courses have the obligation to ensure a proper space for the periodical and on-the-spot control teams during the control activity available only for the control teams activity.

(13) On-the-spot controls will be focused only on certain matters, resulted from periodical or annual reports and information analysis, or from complaints registered at Insurance Supervisory Commission head office regarding the insurance/reinsurance undertakings, insurance and/or reinsurance intermediaries, Street’s Victims Protection Fund or bodies organizing training courses by case, and can not take longer than 3 consecutive business days.

(14) Neither any insurance/reinsurance undertaking, insurance and/or reinsurance intermediary, nor the Street’s Victims Protection Fund nor any entity organizing training courses can refuse an on-the- spot inspection.

Article 39

(1) abolished

(2)The infringement of the following provisions are civil offences:

a)Non-compliance in any matter with the adopted regulation according to Article 8 paragraph (1) as well as the decisions and notes established by the Insurance Supervisory Commission issued according to Art 4 paragraph (26) and Article 8 paragraph (2);

b) the registration of the insurers or reinsurers in the National Trade Register without the prior notification for authorization of the Insurance Supervisory Commission;

c) breaching by any means the provisions of the article 5, letters. b), c), d), e), f), g), h), h¹), h²), h³), i), j), l),l¹ ), m) , of article 18, of the Regulations issued in the application of the present law as well of the notifications, decisions and information requests, documents and reports by the insurers, reinsurers, insurance and/or reinsurance intermediaries, Street’s Victims Protection Fund or by the bodies that organize training courses, by case;

d) non-compliance with the provisions of Article12, paragraphs (16), (17), (18), Article 12¹, Article 12², Article 20, Article 20¹, Article 33 paragraph (7), Article 34, paragraphs (4¹), (4²) and (4³), Article 38¹, paragraphs (6), (12) and (14) as well as of Chapter V when the case;

e) not requesting from the Insurance Supervisory Commission approval by the insurance/reinsurance undertaking, insurance and/or reinsurance broker for the direct and/or indirect significant shareholders and the significant persons of the insurance/reinsurance undertakings, insurance and/or reinsurance brokers or, in the case of Street Victim Protection Fund, of the prior approval for the Board of Directors;

f) breaching by any means by the insurance and/or reinsurersand insurance and/or reinsurance brokers of the obligations of the bookkeeping and of the reports submission provided by the law and/or regulations issued in its application ,

g) infringement of the provisions stated at. Article 16 and Article 35 and of the regulations issued for applying the present Law regarding the minimum the share capital, and by case the paid up free reserve fund of the solvency margin, and, after the Romania’s accession to the European Union, the Guarantee Fund.

h) breaching by any means of Articles 43 and 44 regarding the setting-up and maintaining of the technical reserves, and respectively the covering of the technical reserves with the admitted categories of assets;

i) Non-compliance with the provisions of Article 23, Article 42, paragraph (2) and of the regulations issued for applying the present Law regarding portfolio transfer;

j) non-fulfillment or inadequate fulfillment of the obligations mentioned in articles 27 and 28;”

k) non compliance with the provisions of Article 33, paragraphs (3), (4¹), (6), (7) and (14), Article 34, Article 38¹, paragraphs (6), (12) and (14) and of the regulations regarding insurance agents activity, subagents, ant tied insurance agents;

l) pursuing the activity by the insurers, reinsurersand insurance and/or reinsurance brokers according with the beaching by any means of the provisions of Articles 11, 12, 13, 14 as well as breaching the regulations issued in the application of this law;

m) non compliance with the obligations mentioned in article 35 paragraphs (13), (13¹) and (14) and in article 38, paragraph (2) regarding the advertising and publicity;

m¹) non compliance with the provisions of the article 12, paragraphs (16) and (17) and (18)

m²) non compliance, by any means, with the insurance and/or reinsurance brokers’ obligations, mentioned in article 33, paragraphs (3), (4¹), (6), (7) and (14), art 35, art 36, art 38¹ paragraphs (6), (12) and (14) as well as the regulations issued for applying the present Law.”

m³) non compliance by the insurers, reinsurers and insurance and/or reinsurance brokers, the Board of directors of the Street’s Victims Protection Fund or the management of the bodies organizing training courses of the submitting terms or submitting incomplete or inconsistent data in the reports, statements, analysis, documents and information provided in the present Law, in the Regulations issued for applying the present Law, or in decisions or notes;

  m⁴) non compliance with the provisions of the Article 25¹ and with the Regulations issued for applying the present Law by the Street’s Victims Protection Fund Board of Directors;

m⁵) non compliance with the provisions of the Article 38¹ paragraph (6), (9), (12), (14) and with the Regulations issued in the application of the present Law by the management of the bodies organizing training courses and/or by lecturers;

n) carrying on insurance, reinsurance or bancassurance activity through unauthorized or unregistered intermediaries according to the law or without professional background for the insurance/reinsurance undertakings;

o) non-fulfillment or inadequate fulfillment of the obligation to keep the insurance agents register or the brokerage assistants journal, by case, according to the Law and regulations issued for applying the present Law ;p) breaching by any means of the insurersor reinsurersobligation regarding the insurance agents supervision according to the provisions of Article 20 paragraph (3) letter b) and the regulations issued in the application of the law;

q) any amendments to the documents and/or initial conditions of the setting up and/or the functioning authorization was based on, without the prior approval of Insurance Supervisory Commission;

r) pursuing by the insurance and/or reinsurance intermediary activity without fulfilling and keeping up of the professional requirements provided by the law and the regulations in the application of the law;

s) breaching of the provisions of Article 47¹ paragraphs (1) and (3);

t) breaching of the provisions of Article 24¹, Para (2) and the regulations issued in the application of the law.

(3) The intentional or of guilt perpetration of any of the facts provided for in par. (2) shall be sanctioned by:

a) written warning;

b) limitation of operations;

c) applicable penalty: for the insurance/reinsurance undertakings between 0.5% and up to 1% applied to their shared capital; insurance and/or reinsurance intermediaries legally established as share companies, between 3% and up to 6%; insurance and/or reinsurance brokers legally established as limited companies, between 10% and up to 20% applied to their shared capital; for the insurance agents, legal bodies, legally established as limited companies - from RON 1,000 to RON 5,000; for the insurance agents, natural persons and subagents and tied insurance agents, natural persons, as well as lecturers - from RON 500 to RON 1,000; the management of the bodies organizing training courses – from RON 5,000 to RON 10,000; Board members and/or Board of Directors and /or Supervising Council, executive management, management of life assurance and non-life insurance business, when composites insurers, persons having management position within insurance business, which shall be established through Regulations issued in the application of the present Law, its manager, by case, the executive manager of the insurance agents - legal persons, members of the Street’s Victims Protection Fund Board, between 1-6 net salaries or meeting indemnity of those persons corresponding to the month before the month when the offence was found out. In the case when applying theses penalties the maximum limit established for fines in the frame Law is oversized this Law shall apply.

c¹) annulment of the voting or temporarily suspension of the voting right

of the significant share holders;

d) suspension or temporary or definitive, partial or total, forbidding for the insurance/reinsurersto carry on insurance/reinsurance business for one or more categories of insurances and for the insurance/reinsurance brokers temporary or definitive forbidding of the business define by Article 2, para (c), point 54 and Article 2, para (c), point 57;

e) withdrawal of authorization of the insurers, reinsurers or insurance and/or reinsurance brokers, annulment of a member of the Street Victim Protection Fund Board or of all the Board, or annulment of the approval of the bodies organizing training courses and/or lecturers, demanding the insurers, reinsurers or insurance and/or reinsurance brokers to erase the insurance agents, natural or legal persons, subagents, tied insurance agents or the brokerage assistants from the special registers where they have been registered, as well as withdrawal the approval for the bodies and/or the persons mentioned in Art.5, letter h³).

(4) The penalty with fine may be applied cumulatively with each of the penalties provided for in 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 penalized person.

(6) In individualizing the penalty, the personal and actual circumstances of perpetrating the fact and the perpetrator's behavior will be taken into account.

(7) In ascertaining two or more contraventions, the fine provided for the worst contravention shall be applied.

(8) Is an offence and it is punished by imprisoning from 3 months to 3 years or by an administrative penalty of RON 20,000 up to RON 100,000 the activity of any person carrying on of the insurance business in or from Romania, without an authorization granted by the Insurance Supervisory Commission as well as carrying on the business without the registration in the insurers, reinsurers and insurance and/or reinsurance intermediaries Registry.

(8¹) It is forbidden to any person, which does not have authorization issued or registered at the Insurance Supervisory Commission to use the name of insurance undertaking, reinsurance undertaking, insurance and/or reinsurance broker, insurance or reinsurance agent, subagent or insurance tide agent, or their derivates, with regards to an activity, a product or a service, excepting the case when this use is established and certified by law or by an international agreement, or when, from the context these words are used, it undoubtfully arises that it is not about the business of insurance and reinsurance undertakings or of the insurance and/or reinsurance mediators.

(8²) In any form of advertising, official papers, contracts or any other documents of this kind, the initials, the brand, the sign or other identification elements of an insurance undertaking, a reinsurance undertaking or insurance and/or reinsurance undertaking acting in Romania or that suggest a connection with these can be used only by the and in connection to a subunit of that body, including its name.

(8³) For the purpose of performing specific activities, the foreign bodies may use, on Romanian territory, the name they also use in the home state. In the case when there is the possibility for confusions, for an appropriate clarification, the Insurance Supervisory Commission may request that the name of the insurer, reinsurer or insurance and/or reinsurance mediator, to be accompanied by an explanatory note in Romanian.

(9) The amount of fines provided for in this law shall be prescribed after six months from the establishment of the facts, but no longer than twenty four months from the commitment of the felony.

(10) The administrative penalties established by this law and ask for by the Insurance Supervisory Commission will become revenues to the public budget up to 50%, the remaining is due for the Insurance Supervisory Commission.

(11) The provisions of this law will be supplemented by the provisions of the Government Ordinance no.2/2001 regarding the legal status of contraventions, approved with amendments and completion by Law no.180/2002, with subsequent amendments, if those provisions are not contrary to the provisions of this law.

(12) In order to assure transparency and unitary application of the sanctioning measures provided at this chapter, the Insurance Supervisory Commission shall issue Regulations for the application of the present Law regarding the upgrading the sanctioning measures. The sanctioning measures have to be proportional to the degree of social danger of the committed act, taking into account the circumstances in which it was done, the way and the means of doing it, the purpose, the consequences, as well as the personal circumstances of the offender and of the other data from the minute/ finding out report.

Article 40

(1) The person may apply against the decisions of the Insurance Supervisory Commission according to Article 8 paragraph (2) to the Bucuresti Court of Appeals within 30 days from the communication date of the decision.

(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.

Article 41¹

(1) The Insurance Supervisory Commission shall issue regulations regarding claims solving in an appropriate manner and by friendly manner of the disputes between the insurance and/or reinsurance intermediaries and the insureds.

(2) The Insurance Supervisory Commission shall support the professional associations of the insurers and of the insurance and/or reinsurance intermediaries to cooperate in order to solve trans-border disputes.

CHAPTER I X

Transitory and final dispositions

Article 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 this law and any other legal acts, the provisions of this law shall prevail.

(4) Situations not being set by the provisions of this law shall be settled according to the commercial, civil, contravention, and foreign investments legislation, according to case.

Article 42¹

(1) The Insurance Supervisory Commission is the only one authority enables to decide on the opportunity, the assessments and the qualitative analysis on which its issuing regulations and decisions are based upon.

(2) In the case of an appeal to the court regarding the Insurance Supervisory Commission’s regulations and/or decisions, the court will conclude only from the legality of these regulations and/or decisions.

(3) The Insurance Supervisory Commission is not subject to litigation and can not be sued in the lawsuits against the insurers/ reinsurers/ insurance and/or reinsurance intermediaries, even if they are in financial recovery procedure or in winding – up, nor in the lawsuits against the Street Victim Protection Fund in order to answer for not fulfilling the obligations assumed by these according to the law and/or the international conventions or in case of lawsuits against the bodies organizing training courses and/or the lecturers.

Article 43

(1) The following are exempted from taxes and fees:

a) insurance and reinsurance premiums, as well as their afferent commissions;

b) claim settlements, insured sums or any other rights that are granted to the insureds, the beneficiaries or their parties liabilities, from all types of insurances.

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) abolished

(2¹) The National Trade Register Office is obliged to allow free access for the Insurance Supervisory Commission to the information from the central trade register, kept in computerized system, regarding the insurers and the insurance brokers from Romania, authorized according to the provisions of the present Law, to the insurance agents, natural and legal persons, as well as to other natural or legal persons who are or request the approval for becoming direct or indirect significant shareholders of an insurance undertaking or broker; also, the National Trade Register Office is obliged to provide information at the request of the Insurance Supervisory Commission, economic – financial information reported by the insurers, reinsureres, insurance agents, legal persons and insurance and/or reinsurance brokers in their yearly financial statements.

(3) The document, draw up or issued by the Insurance Supervisory Commission bodies, finding out and individualizing for the insurance/reinsurer, insurance/reinsurance broker or insurance agent the obligation to pay an administrative penalty, according to this law, is a claim and receivable.

(4) At the maturity the claim and receivable becomes a writ of execution which entitled the Insurance Supervisory Commission to recover it by way of enforcement, according to the Code of Civil Procedure.

Article 44

(1) The insurer or the insurance broker, who, at the time this law is coming into force, was authorized to perform insurance activities within the frame of the law annulled by this law, is still authorized to continue its activity for the following 12 months, during this period it will come in conformity with this law.

(2) The insurers who cease their activity, or, for the composite insurers, who request to give up one of their activities are obliged to proceed to portfolio transfer in the conditions mentioned at article 23 of the present Law and in the Regulations issued for applying the present Law.

(3) Within 12 months from the date of enforcement of this law, the mutual companies performing insurance activities at this time are required to request and obtain an authorization from the Insurance Supervisory Commission, according to the provisions of Article 12.

(4) The stipulations of the Article 13 and 36 will be in force effective the time this law is coming into force.

(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 this law, the Insurance Supervisory Commission shall draft the new accounting plan and the specific accounting methodology, with the approval of the Ministry of Finance.

(7) In order to cover its endowment, equipping and running costs during the first year of operation, the Insurance Supervisory Commission shall borrow reimbursable funds from the available amount in the Fund for insured persons' protection established on the grounds of Article 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.

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 Council shall be appointed within 60 days from publishing the law in the Romanian Official Gazette, Part I.

(3) From the date of establishing the Insurance Supervisory Commission, the Supervisory Office for Insurance and Reinsurance Activities within the Ministry of Finance, established by the Government Decision no. 574/1991, which was published in the Romanian Official Gazette, part I, no. 182 from August 23, 1991, shall cease its activity.

(4) The competencies 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 in Article 5, 7, 53, 60, 65 and 67 from Law no.136/1995 regarding the insurance and reinsurance business in Romania, are undertaken by the Insurance Supervisory Commission.

(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.

Article 46

From the date of enforcement of this law, the Law no. 47/1991 concerning the establishment, organization and functioning of commercial companies in the insurance field published in the Romanian Official Gazette, 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 Gazette, 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, publish d in the Romanian Official Gazette, 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 Gazette, 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 Gazette part I, no. 182 from September 11, 1991; Article I from the Government Decision no. 789/1993 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 organization and functioning of the Ministry of Finance, published in the Romanian Official Gazette, 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 Council, the following regulations :

a) the classes of insurance that can be performed;

b) information and documents required for the authorization 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 regulations;

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 this law;

(2) in no longer than 6 months from the appointment of the members in the Insurance Supervisory Commission Council, 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 authorization fees and setting payment deadlines for operation fees foreseen by this law;

c) information, documents and certificates required for elaborating reports provided for in 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 Article 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) abolished

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.

Article 47¹

(1) Every insurer shall inform the insurance Supervisory Commission of the amount of the gross underwritten premium, claims and commissions without deduction of reinsurance separately by Member State and by each classes of insurance the authorization was granted for, in respect of transactions carried out under the freedom to provide services.

(2) The information provided by paragraph 1 will not include information on the insurance contract of the carrier civil liability, as provided under the general insurance types, class no 10, motor third party liabilities.

(3) The form, the contents and the terms of the submission of the information provided by paragraph 1 will be establish by regulation issued in the application of this law.

(4) The Insurance Supervisory Commission shall submit at the request of the competent authority of the host member state were the insurer is pursuing the business under the right of establishing and the freedom to provide services on an aggregated basis information provided by paragraph 1.

Article 47²

Insurers, reinsurersand insurance intermediaries are allowed to use the personal data of policy-holders or beneficiaries of insurance policies recorded in the insurance contracts, including their fiscal identification code, exclusivelly for the purpose of handling the insurance and/or reinsurance contracts and for their settlement, by complying with the provisions of Law no. 677/2001, regarding the protection of persons related to the personal data processing and the free movement of such data.

Article 47³

This law transposes European Union insurance Directives according to the Annex no.3.

Article 47⁴

Annexes no. 1, 2 and 3 are added and are part of this law.

Article II

Within 90 days of the enforcement of this law the Insurance Supervisory Commission will issue regulations for its application.

Article II

(1) Any legal dispositions regarding insurance and/or reinsurance, as concerns the Guarantee Fund, shall apply starting with the Romanian joining to the European Union.

(2) The Insurance Supervisory Commission shall issue Regulations for applying the Law no 32/2000, with subsequent amendments and completions, as well as with those brought by the present Emergency Ordinance, within 6 months from the date the present normative act enters into force.

(3) Within four months starting Romanian joining to the European Union, insurers and reinsurers authorized according to the provision of Law no. 32/2000, with subs4equent amendments and completions and of the regulations issued for applying the present law, have the obligation to comply with the provisions of article. 12¹ paragraph (1) of the present Emergency Ordinance.

(4)The Actuary Register will be opened by the Insurance Supervisory Commission starting Romanian joining to the European Union.

(5)The Insurance Supervisory Commission shall submit the Actuary Register to the Actuary Body within four years starting Romanian joining to the European Union. Starting with the receiving of the actuary register, the Actuary Body shall become an independent professional association with the role of self regulation of this profession.

Article III

(1) This law enter into force 3 days after the publishing date of the Official Gazette of Romania, Part I, exempt the definitions and the provisions of articles which shall presume for Romania the status of a Member State and, also provisions of letters C and D, provided by in Annex no. 1 to the law,, which shall apply starting the accession date of Romania to the European Union.

Paragraph (2) of article III, Law no. 403/2004 regarding amendment and completion of the Law no. 32/2000 regarding insurance undertakings and insurance supervision, published in the Romanian Official Journal part I, no.976 of October25, 2004, is abolished.

Article IV

(1) Up to the accession date of Romania to the European Union, the provisions of Article 5 letter c) will be applied on an yearly basis, according to the conditions establised by this law and the regulations issued in the application of this law.

(2) Art. 26 will be applied up to the accession date of Romania to the European Union, with the exciption of par. (d) which will remain in force.

Article V

At the date of entering into force of the provisions of this law, according to Article III (1), the balances of the accounts of the Green Card Joined Fund, set-up with the same destination by Romanian Green Card Bureau is taken by The Compensation Fund, provided by the Article 25 paragraph (4),of this law.

Article VI

The law no.32/2000 regarding the insurance companies and the insurers’ supervision, published in the Romanian Official Journal, Part I,no.148, April the 10^th, 2000, with the later amendments, as well as the amendments and the completions of this law, will be republished in the Romanian Official Journal, Part I, with a new numbering of the texts.

This law was adopted by the Romanian Parliament by complying with the provisions of article 75 and article 76, par. (1) from the Constitution of Romania.

Annex no.1

A. Life assurance

The following kinds of assurance where they are on a contractual basis:

a) life assurance, that is to say, the class of assurance which comprises, in particular, assurance on survival to a stipulated age only, assurance on death only, assurance on survival to a stipulated age or on earlier death, life assurance with return of premiums, marriage assurance, birth assurance;

b) annuities;

c) supplementary insurance carried on by life assurance undertakings, that is to say, in particular, insurance against personal injury including incapacity for employment, insurance against death resulting from an accident and insurance against disability resulting from an accident or sickness, medical expenses insurance, trauma insurance, unemployment insurancewhere these various kinds of insurance are underwritten in addition to life assurance;

d) health insurance;

Classes of life assurance:

I. The assurance referred to in paragraph (1) (a), (b) and (c) excluding those referred to in II and III

II. Marriage assurance, birth assurance

III. The assurance referred to in point (A), para (a) and (b), which are linked to investment funds

IV. Permanent health insurance, referred to in point (A), para (d)

B. Non-life insurance

Classes of insurance:

1. Accident (including industrial injury and occupational diseases)

— fixed pecuniary benefits

— benefits in the nature of indemnity

— combinations of the two

— injury to passengers

2. Sickness insurance :

— fixed pecuniary benefits

— benefits in the nature of indemnity

— combinations of the two

3. Land vehicles (other than railway rolling stock)

All damage to or loss of:

— land motor vehicles

— land vehicles other than motor vehicles

4. Railway rolling stock

All damage to or loss of railway rolling stock

5. Aircraft

All damage to or loss of aircraft

6. Ships (sea, lake and river and canal vessels)

All damage to or loss of

— river and canal vessels

— lake vessels

— sea vessels

7. Goods in transit (including merchandise, baggage, and all other goods)

All damage to or loss of goods in transit or baggage, irrespective of the form of transport

8. Fire and natural forces

All damage to or loss of property (other than property included in classes 3, 4, 5, 6 and 7) due to

— fire

— explosion

— storm

— natural forces other than storm

— nuclear energy

— land subsidence

9. Other damage to property

All damage to or loss of property (other than property included in classes 3, 4, 5, 6 and 7) due to hail or frost, and any event such as theft, other than those mentioned under 8

10. Motor vehicle liability

All liability arising out of the use of motor vehicles operating on the land (including carrier's liability)

11. Aircraft liability

-all liability arising out of the use of aircraft (including carrier's liability)

12. Liability for ships (sea, lake and river and canal vessels)

All liability arising out of the use of ships, vessels or boats on the sea, lakes, rivers or canals (including carrier's liability)

13. General liability

All liability other than those forms mentioned under No. 10, 11 and 12

14. Credit

— insolvency (general)

— export credit

— installment credit

— mortgages

— agricultural credit

15. Surety ship

— surety ship(direct)

— surety ship(indirect)

16. Miscellaneous financial loss:

— employment risks

— insufficiency of income (general)

— bad weather

— loss of benefits

— continuing general expenses

— unforeseen trading expenses

— loss of market value

— loss of rent or revenue

— indirect trading losses other than those mentioned above

— other financial loss (non-trading)

— other forms of financial loss

17. Legal protection insurance, that covers:

-legal expenses and other expenses such as: recovering the loss suffered by the insured by a civil or criminal proceeding, defense or representation of the insured in a criminal proceeding, administrative or against a claim addressed to him.

18. Assistance

Assistance for persons who get into difficulties while traveling, while away from home or while away from their permanent residence.

The risks included in a class may not be included in any other class except in the cases referred to in point C.

C. Description of authorizations granted for more than one class of insurance

a) Classes No. 1 and 2, it shall be named "Accident and Health Insurance";

b) Classes No. 1 (fourth indent), 3, 7 and 10, it shall be named "Motor Insurance";

c) Classes No. 1 (fourth indent), 4, 6, 7 and 12, it shall be named "Marine and Transport Insurance";

d) Classes No. 1 (fourth indent), 5, 7 and 11, it shall be named "Aviation Insurance";

e) Classes No. 8 and 9, it shall be named "Insurance against Fire and other Damage to Property";

(f) Classes No. 10, 11, 12 and 13, it shall be named "Liability Insurance";

g) Classes No. 14 and 15, it shall be named "Credit and Surety ship Insurance";

D. Ancillary risks

An undertaking obtaining an authorization for a principal risk belonging to one class or a group of classes may also insure risks included in another class without an authorization being necessary for them if they:

— are connected with the principal risk,

— concern the object which is covered against the principal risk, and

— are covered by the contract insuring the principal risk.

The risks included in classes 14 and 15 in point A of this Annex may not be regarded as risks ancillary to other classes.

The risks included in class 17 ‘’ Legal expenses’’ may not be regarded as risks ancillary to class 18. ‘’Assistance’’, when concern the main risk and when the main risk regards the assistance for the persons who get into difficulties while traveling, while away from home or while away from their permanent residence. The insurance coverage classified into class 17” Legal Expenses” can be considered ancillary risk when the provisions stated in the first paragraph are fulfilled and if the disputes or risks covered are related to to the use of sea vessels.

E. ”Large risks” means

a) risks classified under classes 4, 5, 6, 7, 11 and 12 of point B of the present annex;

b) risks classified under classes 14 and 15 of point B of the present annex, where the policy-holder is engaged professionally in an industrial or commercial activity or in one of the liberal professions, and the risks relate to such activity;

c) risks classified under classes 3, 8, 9, 10, 13 and 16 of point B so far as the policy-holder exceeds the limits of at least two of the following three criteria starting from 1 January 2007:

- balance-sheet total: EUR 6.2 million, according to the exchange rate ROL/Euro established by The National Bank of Romania for the last day of the last financial year,

- net turnover: EUR 12.8 million, according to the exchange rate ROL/Euro established by The National Bank of Romania for the last day of the last financial year,

-average number of employees during the financial year: 250.

d) when the policy-holder is part of a group that is obliged to draft the consolidated financial reports, the criteria mentioned in letter c) will be applied to the consolidated accounts;

Annex no. 2

Special Register of the admitted assets to cover the technical provisions

1. Every insurer must keep at its head office a special register of the assets used to cover the technical provisions calculated and invested in accordance with this Law and the regulation issued in the application of the law.

2. Where an insurer transacts both non-life and life business, it must keep at its head office separate registers for each type of business.

3. The total value of the assets entered, valued in accordance with the regulation applicable in the home Member State, must at no time be less than the value of the technical provisions.

4. Where an asset entered in the register is subject to a right in rem in favor of a creditor or a third party, with the result that part of the value of the asset is not available for the purpose of covering commitments, that fact is recorded in the register and the amount not available is not included in the total value referred to in point 3.

5. Where an asset employed to cover technical provisions is subject to a right in rem in favor of a creditor or a third party, without meeting the conditions of point 4, or where such an asset is subject to a reservation of title in favor of a creditor or of a third party or where a creditor has a right to demand the set-off of his claim against the claim of the insurer, the treatment of such asset in case of the winding-up of the insurer, this situation is recorded in register and to those assets are subject to this laws.

6. The composition of the assets entered in the register in accordance with points 1 to 5, at the time when winding-up proceedings are opened, must not thereafter be changed and no alteration other than the correction of purely clerical errors must be made in the registers, except with the authorization of The Insurance Supervisory Commission and competent authority.

7. Notwithstanding point 6, the liquidators must add to the said assets the yield there from and the value of the pure premiums received in respect of the class of business concerned between the opening of the winding-up proceedings and the time of payment of the insurance claims or until any transfer of portfolio is effected.

8. If the product of the realization of assets is less than their estimated value in the registers, the liquidators must be required to justify this to the Insurance Supervisory Commission and competent authorities.

Annex no.3

DIRECTIVES

with provisions were transposed trough this law

1. First Council Directive 73/239/EEC of 24 July 1973 on the coordination of laws, regulations and administrative provisions relating to the taking-up and pursuit of the business of direct insurance other than life assurance (Official Gazette L 228, 16/08/1973 p. 0003)

.Consolidated version containing the amendments of the following directives: 76/580, 84/641, 87/343, 87/344, 88/357, 90/618, 92/49, 95/26, 2000/26, 2002/13, 2002/87.

- Art. 1, Art. 2, Art.5, Art.5(d), Art.6, Art.7, Art.8 Art.9, Art.10, Art.12, Art.13,Art.14, Art.16, Art.17, Art.19), Art.20, Art.22, Art.23, Art. 25, Art.26, Art.27, Art. 28a), Art. 29a), Art.29b), Art. 37, Annexes A,B,C

2. Directive 2001/17/EC of the European Parliament and of the Council of 19 March 2001 on the reorganisation and winding-up of insurers. (Official Gazette L 110 , 20/04/2001 p. 0028) - Art. 10(3), Annex

3. The European Parliament and Council Directive no 2002/83/EC from November 5, 2002 regarding life assurance (Official Journal L345, 19/12/2002, p.0001):

-  preamble (18), article 1, article 2, article 4, article 5, article 6 paragraphs (4) and (5), article 7, article 8, article 9, article 10, article 11, article 13, article 14, article 15, article 17, article 18, article 19, article 20, article 24, article 27, article 28, article 29, article 30, article 31, article 34, article 36, article 37, article 38, article 39, article 40, article 41, article 42, article 43, article 44, article 45, article 46, article 47, article 48, article 49, article 51, article 52, article 53, article 54, article 55, article 56, article 58, article 59, article 61, article 62, article 67, article 69, annex, annex 2.

4. Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurersand investment firms in a financial conglomerate and amending Council Directives 73/239/EEC, 79/267/EEC, 92/49/EEC, 92/96/EEC, 93/6/EEC and 93/22/EEC, and Directives 98/78/EC and 2000/12/EC of the European Parliament and of the Council. (Official Gazette L 035 , 11/02/2003 p. 0001)

- Art.2(11), Art.2(13)

5. The European Parliament and Council Directive no 2002/92/EC from December 9, 2002 regarding insurance mediation (Official Journal L009, 15/01/2003, p.0003):

-  article 1, article 1 paragraph (2), article 2, article 3, article 4, article 6, article 7, article 7 paragraph (3), artcile8 article 9, artcile 10, article 11, article 12, article 14.

6. Council Directive 92/49/EEC Of 18 June 1992 on the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and amending Directives 73/239/EEC and 88/357/EEC (Third Non-Life Insurance Directive)

Official Gazette No. L 228, 11/08/92 P. 0001

– Preamble (7), Art.1(b), Art.1(c), Art. 1(d), Art. 1(e), Art.1(g), Art.1(k), Art.12 (2)-(6), Art.44

7. Directive 98/78/EC of the European Parliament and of the Council of 27 October 1998 on the supplementary supervision of insurersin an insurance group

Official Gazette L 330 , 05/12/1998 P. 0001 - 0012

- Preamble (10)-(11), Art. 1(b), Art.1(g), Art. 1(h), Art.1(i), Art.1(j), Art.9

8. Directive 83/349/EEC of 13 of June 1983 regarding the consolidated accounts (Official Gazette L 193 18/07/1983 p.0001)

- Art.1

9. Directive 2000/26/EC of the European Parliament and of the Council of 16 May 2000 on the approximation of the laws of the Member States relating to insurance against civil liability in respect of the use of motor vehicles and amending Council Directives 73/239/EEC and 88/357/EEC (Fourth motor insurance Directive)

Official Gazette L 181 , 20/07/2000 P. 0065 - 0074

-Art. 4, Art.6

10. Directive 2004/39/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 21 April 2004 on markets in financial instruments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC

Official Gazette L 145 , 30/04/2004 P. 0001 – 0044

11. Council fourth Directive regarding annual accounts of some types of companies (78/660/EEC) published in the Official Journal no. L222, 14/08/1978:

-  Article 17

12. The Council Regulations (EC) 2001/2157 regarding the European company’s statute, published in the Official Journal no. L294, 10/11/2001:

- Article 1, paragraph 1

13. Directive 77/91 published in the Official Journal no. L026, 31/01/1977:

- Article 6, paragraph 1”

14. Directive 78/473/CEE for coordinating the legal regulatory and administrative provisions from the field of communitary co-insurance administrative, published in the Official Journal no.L.151, 07/06/1978, p.0025-0027:

-  Article10.

NOTE:

The black text represents the original Law no.32/2000 regarding insurersand insurance supervision

The blue text represents the Law no.76/2003 regarding the amendments and completions of the Law no.32/2000 regarding the insurance companies and the supervision of insurance

The red text represents the Law no. 403/2004 amending and completing the Law no.32/2000 regarding insurers and insurance supervision

The green text represents the Emergency Ordinance 201/2005 for the amendment and completion of the Law no. 32/2000 regarding insurance undertakings and insurance supervision