Law on the Supervision of Insurance Undertakings

Art. 56

Measures relating to Insurance Undertakings domiciled
in another Signatory State to the EEA Agreement

1) If it is found that an insurance undertaking from a signatory state to the EEA Agreement, which has a branch office or is active in services transactions in the Principality of Liechtenstein, is not observing Liechtenstein legal provisions, the Supervisory Authority shall require the undertaking to discontinue such irregularities.

2) Should the insurance undertaking fail to take the necessary steps, the competent authorities of the home state shall be informed and requested to initiate proceedings against the undertaking.

3) In the event that infringements of Liechtenstein legislation continue, the Supervisory Authority may prohibit the insurance undertaking from conducting any further business in Liechtenstein and order the necessary action to be taken.

Art. 57

Waiving of Authorisation

1) Should an insurance undertaking waive the authorisation, it shall be released from supervision by the Government. Bonds paid shall be returned as soon as all the obligations arising from the law on supervision have been met.

2) Should an insurance undertaking which is renouncing the authorisation no longer satisfy the legal requirements, the Supervisory Authority may demand that the undertaking restore the legal state despite the waiver.

Art. 58

Publication

Should the authorisation be withdrawn from an insurance undertaking or if it waives the authorisation or, in the case of a waiver, it fails to restore the legal state, policy holders shall be informed of this in a publication.

Art. 59

Foreign Insurance Undertakingsí Obligation to Notify

Insurance undertakings domiciled in another country and conducting business in the Principality of Liechtenstein must notify the Supervisory Authority without delay if in another country their authorisation to provide insurance business is withdrawn.

VII. Authorities, Procedures and Legal Remedies

Art. 60

Organisation and Performance of Insurance Supervision

1) The Government is the Supreme Supervisory Body. It shall grant, withdraw and revoke authorisations.

2) Where it is not expressly stated that the Government shall be responsible, the supervision and the power of decision shall be exercised by the Office for National Economy or by another office designated by the Government in an Executive Order as
the Supervisory Authority in place of the Office for National Economy.

3) The Government may transfer by Executive Order the powers specified in Art. 12 Para. 1 to the Supervisory Authority.

Art. 61

Collaboration with Foreign Supervisory Authorities

1) If need be, the Supervisory Authority may collaborate with the competent foreign authorities in that it may in particular, process data, information, reports and documents or itself communicate these to abroad.

2) The communication of official information by the Government or the Supervisory Authority shall be admissible when:

a) Public order and professional secrecy are not infringed thereby;

b) the information does not conflict with the object of this law;

c) it is assured that the requesting state would grant a similar request from Liechtenstein;

d) it is assured that the information provided will be used only for insurance supervision;

e) it is assured that the staff of the competent authorities and persons acting on behalf of the competent authorities are bound to observe official secrecy.

3) When this is necessary according to the object of this law, the Government or the Supervisory Authority may at any time obtain information on the activities of Liechtenstein insurance undertakings in other countries and on the financial situation of foreign insurance undertakings whose activities might affect the Liechtenstein insurance sector.

LR-Nr.: 961.01, Art. 56 - 61