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LR-Nr.: 961.01, Art. 28 - 34


Law on Supervision

IV. Domestic Activities of Foreign Insurance Undertakings

A. Insurance Undertakings with Domicile in a
Signatory State to the EEA Agreement

 

Art. 28

Assumption of Business Activities

1) Insurance undertakings domiciled in another state which has signed the EEA Agreement (home state) may conduct direct insurance business in Liechtenstein through a branch office or in service transactions as specified in the following provisions.

2) The assumption of the business activities through a business establishment is only permissible when the Supervisory Authority of the home state supplies the following details and confirms to the Liechtenstein Supervisory Authority:

  • a) That the insurance undertaking is authorised to conduct insurance business in the home state and that it has a legal form which is admissible in the country of domicile;

    b) that the undertaking is entitled to operate a business establishment in the Principality of Liechtenstein;

    c) a draft of an activity plan describing in particular the planned business activities and the management of the business establishment;

    d) name and address of the business establishment;

    e) name of the adequately authorised executive manager of the business establishment; in the case of Lloyd's, proof of the executive managerís authority to appear in this capacity on behalf of the individual participating insurers before a court of law and to enter into commitments;

    f) that the insurance undertaking has at its disposal of the necessary funds as specified in Art. 15;

    g) a draft of a declaration stating that the insurance undertaking has become a member of the Liechtenstein Insurance Office and of the Liechtenstein Guarantee Fund, insofar as it intends to be active in the insurance branch of third-party liability for self-propelled land vehicles;

  • 3) In the case of health insurance and compulsory insurance being provided, the general and special conditions of insurance are also to be submitted to the Supervisory Authority before they are applied.

     

    Art. 29

    Procedure

    1) If the competent authority of the home state raises no objections to the intended business establishment of the insurance undertaking, it communicates the details required by Art. 28 Para. 2 to the domestic Supervisory Authority within three months of the submission of the insurance undertakingís application. The Supervisory Authority then has at its disposal a period of a further two months after receipt of this communication in which to inform the competent authority of the home state and the insurance undertaking, if applicable, of other conditions which must be fulfilled before the branch office commences business.

    2) The branch office may start its activities in Liechtenstein as soon as the periods of time stated in Para. 1 have expired and provided the Supervisory Authority does not impose further conditions.

    3) Amendments to the details prescribed in Art. 28 Para. 2 must be communicated in writing to the Supervisory Authority and to the competent authority of the home state at least one month before they are implemented.

     

    Art. 30

    International Service Operations by
    Foreign Insurance Undertakings

    1) Should an insurance undertaking wish to conclude international service transactions with reference to the inland market, the assumption and exercise of such an activity shall be permissible only if the Supervisory Authority of the home state has communicated the following details and confirmations to the inland
    Supervisory Authority:

  • a) A certificate according to which the insurance undertaking has at its disposal the necessary solvency margin for all its activities and may conduct business outside the country of domicile and/or the state in which the business establishment is situated;

    b) a certificate concerning the insurance branches in which the undertaking may conduct business;

    c) a list describing type and nature of the risks which the undertaking wishes to cover within the country.

  • 2) The insurance undertaking may assume its activities from the time when the inland Supervisory Authority is demonstrably in possession of the documents mentioned in Para. 1.

    3) In the case where health insurance and compulsory insurances are be provided, the general and special conditions of insurance are also to be submitted to the Supervisory Authority before they are applied.

    B. Insurance Undertakings Domiciled outside the States
    that have signed the EEA Agreement

    Art. 31

    Obligation to obtain Authorisation

    1) Insurance undertakings which are not domiciled in a state that has signed the EEA Agreement (non-EEA undertakings) require an authorisation as specified in Art. 12 and 13 in order to assume insurance activities within the country.

    2) In addition, the special provisions of Art. 32 to 34 and, in a supplemental manner, also the other regulations of this law shall apply to such insurance undertakings.

     

     

    Art. 32

    Special Conditions

    1) A non-EEA undertaking may only be authorised to conduct insurance business in Liechtenstein when it fulfils the following additional conditions:

  • a) It must be authorised to conduct insurance activities according the law of the country in which it is domiciled;

    b) it must establish an agency or a branch office in the Principality of Liechtenstein and appoint as its head an executive manager whose nomination shall require the approval of the Supervisory Authority;

    c) it must undertake to keep separate accounts at the domicile of the agency or branch office of its business activities within the country and keep all the relevant business documents available for inspection;

    d) at its head office it must have at its disposal a minimum capital within the intendment of Art. 14 and show a solvency margin as specified in Art. 15 which is related to the extent of business in the Principality of Liechtenstein;

    e) it must have at its disposal in the Principality of Liechtenstein an organisation fund as specified in Art. 17 and corresponding assets;

    f) it must have at its disposal in the Principality of Liechtenstein assets equivalent to at least half of the minimum guarantee fund;

    g) it must deposit as a security bond one quarter of the sum calculated according to sub-para. f.

  • 2) In the case where health insurance and compulsory insurances are provided, the general and special conditions of insurance are also to be submitted to the Supervisory Authority before they are applied.

     

    Art. 33

    Granting and Refusal of Authorisation

    The authorisation is granted when the non-EEA undertaking satisfies the legal requirements; Art. 18 and 19 apply accordingly and the authorisation is valid only within the country

    Art. 34

    Authorisation in Several States that have signed
    the EEA Agreement

    1) Non-EEA undertakings which have applied for or received authorisation to conduct insurance business in several states that have signed the EEA Agreement may apply for the following advantages to be granted; these may only be granted together:

  • a) Calculation of the solvency margin on the basis of the total business activities in the area of the states that have signed the EEA Agreement, only the business of the agencies and branch offices located in this area may be taken as a basis for this calculation;

    b) deposition of the security bond as specified in Art. 32 para. 1 sub-para. g only in a state that has signed the EEA Agreement;

    c) situs of the assets forming the subject of the guarantee fund in any of the states that have signed the EEA Agreement, in which the insurance activities are to be conducted.

  • 2) The application for the granting of the advantages specified in Para. 1 shall be submitted to all the competent authorities of the signatory states to the EEA Agreement in which an authorisation has been sought or granted. These authorities shall agree on the ultimately competent supervisory authority after this authority has declared its readiness to assume the supervision of the solvency for the entire business activities of the agencies and branch offices located in signatory states to the EEA Agreement.

    3) The advantages granted as specified in this Article shall be simultaneously revoked by all these states upon the initiative of one or more of the states concerned.

     


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