Duties of Auditors
1) Auditors shall verify whether
b) the conditions for the granting of the authorisation including actuarial requirements are continuously met; and
c) the business report meets the legal requirements.
2) The audit report shall be sent simultaneously to the board of directors of the insurance undertaking, to the Audit Authority pursuant to the provisions of the Liechtenstein Law on Persons and Companies and to the Supervisory Authority.
3) Other details shall be regulated by the issuance of Executive Orders.
Duty of Disclosure and Authority to Examine
1) Insurance undertakings must disclose all the necessary information to the Supervisory Authority and submit the books of account and business data for inspection.
2) The Supervisory Authority may at any time examine the business management and the assets position of an insurance undertaking in order to determine whether the annual accounts and business reports coincide with the facts and whether the prescribed reserves have been formed and invested and administered as specified by the regulations.
3) Third parties are obliged to supply information to the Supervisory Authority to the extent necessary for the supervisory activities of the authority.
Duty to Report and Submit
1) Insurance undertakings must notify the Supervisory Authority without delay of changes in the activity plan, the nominal capital, the company management, the auditor and in the case of qualified participations. This notification must ensue before a public announcement.
2) In addition, amendments to the articles which concern the sphere of business, the nominal capital or the organisation also a change of auditor require the assent of the Supervisory Authority. In this regard, entries in the Public Register shall be admissible only after such assent has been granted.
3) Upon demand, an insurance undertaking must submit to the Supervisory Authority the general and special insurance conditions, the tariffs applied, the forms and any other documents used.
4) In the case where health insurance and compulsory insurance are to be provided, the general and special conditions of insurance shall be submitted to the Supervisory Authority before they are employed.
5) The Supervisory Authority may demand that communications and details concerning business activities in the Principality of Liechtenstein be made in the German language.
1) The members of the governing bodies of insurance undertakings, their staff and other persons acting on behalf of such undertakings shall be obliged to maintain secrecy about facts not publicly known which are communicated to them or to which they have access due to business relations with clients. The obligation to maintain secrecy is not limited in time.
2) Should facts subject to professional secrecy become known to representatives of public authorities in the course of their duties, they shall treat insurance secrets as official secrets.
3) The legal regulations on the duty to testify and duty of disclosure to court authorities are reserved. Insurance undertakings are likewise not restricted by the obligation of secrecy in the discharging of their legal and contractual responsibilities.
4) The Supervisory Authority may grant release from the obligation of insurance secrecy if there is a proven interest for such, e.g. for the ascertainment and verification of insurance risks. In such a case, the Supervisory Authority shall consult the data protection officer.
Obligations to Notify Policy Holders
Before the conclusion and during the term of insurance contracts, special items of information shall be communicated to policy holders for their information and protection. The content and scope of these obligations to notify are regulated in Appendix 4.
Charges are levied for the work of the Insurance Supervisory Authority. These are determined in an Executive Order issued by the Government.
1) For the performance of its control and supervisory duties, the Supervisory Authority may decree the necessary measures.
2) In particular, the Supervisory Authority may issue orders which are necessary and appropriate for the avoidance or elimination of irregularities.
3) If the interests of policy holders cannot be protected in any other manner, the Supervisory Authority may transfer powers to which the governing bodies of the undertaking are entitled according to the law or the articles wholly or partly to a special representative qualified to exercise such powers.
© 2001 Kurtzum Anfang