1996 No. 23 published on 22 February 1996
Law
of 6
December 1995
on the
Supervision of
Insurance Undertakings
(Versicherungsaufsichtsgesetz; VersAG)
I hereby grant My Consent to the following Resolution adopted by the Diet:
Art. 1
Object
This law describes the organisation and content of the supervision of insurance undertakings and, in particular, has the object of protecting policy holders and maintaining confidence in the Liechtenstein insurance and financial sector.
Scope, Principle
1) Undertakings offering direct insurance or reinsurance (insurance undertakings) in the Principality of Liechtenstein shall be subject to insurance supervision as specified by this law.
2) The Supervisory Authority shall be authorised to exempt, wholly or partly, individual undertakings from supervision if in the individual case there is no need for supervision and the interests of the insured shall not be endangered by this.
3) Special rulings by State treaties are reserved.
Indemnity Insurance
1) The insurance of third party liability cases and against property losses is divided into individual branches; such branches are listed in Appendix 1.
2) For compulsory building insurance, the relevant special decrees continue to apply.
3) Concerning compulsory third-party motor vehicle insurance, the special laws and decrees are reserved.
Life Insurance
1) Life insurance comprises in particular endowment insurance, whole-life insurance, mixed insurances and supplementary insurance for life insurance.
2) The limitation of life insurance and specifically those business activities which may not be pursued in the form of life insurance shall be regulated by Executive Order.
3) The classification of insurance branches is contained in Appendix 2.
Reinsurance
Insurance undertakings having their head office in a foreign country and only carrying out reinsurance transactions in the Principality of Liechtenstein shall be exempt from supervision.
Self-Insurance (Captive)
1) Self-insurance may be conducted as direct insurance or reinsurance.
2) Insurance undertakings may conduct self-insurance and the insurance of third parties at the same time.
3) Exemption from supervision may be granted in individual cases as specified in Art. 2 Para. 2.
Insurance Holding Companies
Insurance holding companies are not subject to this law if they do not themselves conduct direct insurance or reinsurance.
Health Insurance
1) For health insurance, the legislation on health insurance whose regulations are compulsory for all health insurance contracts is to be observed.
2) The provisions of this law on the taking up and exercise of business activities by insurance undertakings are reserved.
