Order No.1 of 23rd January 2002
For the alteration and the completion of the Norms no. 6/2001 regarding the categories of the assets admitted to represent the technical reserves of the insurer selling general insurances, the rules of the spread of the placements as well as the coefficient of liquidity, enacted by the Order of the President of the Insurance Supervising Commission no. 6/2001.

ISSUER: THE INSURANCE SUPERVISING COMMISSION

PUBLISHED IN: THE OFFICIAL GAZETTE NO.71 of 31st January 2002

The President of the Insurance Supervising Commission upon the provisions of the article 4 (27) of the Law no. 32/2000 regarding the insurance companies and the supervision of insurance, following the decision of the Council of the Insurance Supervising Commission of 22nd January 2002, by which the alteration and the completion of the Norms no. 6/2001 regarding the categories of assets admitted to represent the technical reserves of the insurer selling general insurances, the rules of the spread of the placements as well as the coefficient of liquidity, issues the following order:

Art.1.
The Norms no. 6/2001 regarding the categories of assets admitted to represent the technical reserves of the insurer selling general insurances, the rules of the spread of the placements as well as the coefficient of liquidities, enacted by the Order of the President of the Insurance Supervising Commission no.6/2001, published in the Official Gazette of Romania, Part I, no.666 of the 23rd December 2001, are altered and completed as follows:
1.Point 3 of the article 1 will have the following contents:
" 3. the availabilities in current accounts in banks and in the cashier, bank deposits with the exception of collateral bank deposits set up with the view to guaranteeing certain bank instruments"
2.Paragraph 2 of the article 4 will have the following contents:
"The category of liquid assets include:
a) state debentures the bargaining of which is made only through commercial banks authorized by the National Bank of Romania having a paid in social capital equivalent to 10 million Euro.
b) the bank deposits which the total placement does not overpass 25% in a single commercial bank, but no more than 20% in a commercial bank belonging to the same financial group or it is a significant undertaking of the respective insurer. These placements in a single commercial bank will not overpass 50% of the social capital of the respective commercial bank. The bank deposits will be set up only in commercial bank which paid up and paid in social capital is an equivalent of at least Euro 10 million and in the case of the bank deposits' set up in the subsidiaries of foreign banks, the working capital of these subsidiaries will be the equivalent of Euro 4 million.
c) Availabilities in current accounts and in cashier
3.After article 4, article 4^1 is included to be read as follows:
"Art. 4^1
It cannot be accepted as coverage for the technical reserve of an insurer selling general insurances the placements in banks or other investment companies that carry out acts in connection with their object of activity, which ceased the activity in any form or did not observe their liabilities towards the third parties.

Art. 2.
The Norms no.6/2001 regarding the categories of assets admitted to represent the technical reserves of an insurer selling general insurances, the rules of the spread of placements as well as the coefficient of liquidity, with the subsequent alterations as per the present Order will be republished in the Official Gazette of Romania, Part I.

President of the Insurance Supervising Commission
Nicolae Eugen Crisan

Mihaela Tudor - legal adviser, translated this material