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1
CHAPTER 1 THE INSURANCE SUPERVISORY BODY AND ITS ACTIVITIES
Table 1 The Insurance Supervisory Body - Solvency Control
Country Specific requirements for cross-border activities and branches1 Specific rules for
OECD EU Third foreign subsidiaries1
Life Non-Life Life Non-life Life Non-Life Life Non-life
Australia Y N Y N
Austria
Belgium Y Y EU rules EU rules Y Y N N
Canada
Czech Republic N N N N N N N N
Denmark Y Y EU rules EU rules Y( authorisation tocarry on similarbusiness in DANthrough a branch asin home country ifreciprocity is given;cross-borderactivities are notallowed)
as for „Life“ N N
Finland Y Y N N Y Y N N
France N N EU rules EU rules Y (- specialauthorisation,-initial deposit-regulationconcerning deposits,localisation, assets)
as for “Life” N N
2
Germany N N EU rules EU rules Y (proof that afterintended expansionthe ins.co.stillfulfills therequirementsconcerning financialresources and that ithas obtainedauthorisation asrequired in thirdcountry)
as for “Life” N N
Greece
Hungary N N N N N N N N
Iceland Y Y Y Y Y Y N N
Ireland
Italy Y Y EU rules EU rules Y Y N N
Japan NA NA NA NA NA NA NA NA
Korea N N N N N N N N
Luxembourg Y Y N N Y (solvency marginwith assets localizedin LUX)
as for “Life” N N
Mexico N N N N N N N N
Netherlands N N EU rules EU rules N N N N
New Zealand
Norway license, solvency requirements forbranches
as for“Life“
EU rules EU rules N N N N
Poland N N N N N N N N
Portugal
Spain N N EU rules EU rules Y Y EU rules EU rules
Sweden Y (EU solvency rules for non-EEA agencies established inSWED)
as for“Life”
EU rules EU rules Y ( EU solvencyrules for non-EEAagencies establishedin SWED)
as for “Life” N N
Switzerland
Turkey Y Y Y Y Y Y N N
United Kingdom
United States N N N N
3
EU agencies/branches establishedwithin EU and depending onundertakings with head officesoutside EU may be grantedauthorisation if the undertaking :- is entitled to undertake ins.business under its national law,- establishes an agency / branch,- establishes accounts and keepsrecords at the place ofmanagement of the agency/branchspecific to the business there,-designates an authorised agent,- posses in the country where itcarries on business assets of anamount equal to at least 1/2 of themin. for direct ins. co. with headoffice in the member state inrespect of the guaranty fund ,- deposits 1/4 of this min. amountas security,- keeps a solvency margin,- submits a scheme of operations(nature of risks, general/specialpolicy conditions,tariffs, reins.principles, state of solvencymargin, estimates relating to theexpenses of installingadministrative services, estimatesfor the first 3 years relating toexpenses of management andrelating to premiums and claims,forecast balance sheet)
as for“Life”
notification of the sup. body ofthe proposed establishment of abranch office resp. of theproposed transaction ofbusiness under the freedom toprovide services, indicating therelevant member country orcontracting state, providing theaddress from which documentsmay be obtained as well as thename of branch’s authorisedagent and a scheme ofoperations
as for “Life” plusdeclaration onmembership innational bureau andnational guarantyfund if coveringmotor liability
as for “OECD” as for “OECD” N N
1: for further details, see part III1
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Table 1 cont. 1 The Insurance Supervisory Body - Solvency Control
Country Elements (margins, ratios, Indices) Treatment of "embedded values"
Life Non Life
Australia NR
Austria
Belgium EU rules EU rules EU rules
Canada
Czech Republic EU rules EU rules NA
Denmark EU rules EU rules hidden values are not accepted
Finland - solvency margin divided by math. Reserves- solvency margin divided by capital at risk
- solvency margin divided by annual amount of premiums- solvency margin divided by claims incurred- solvency margin + equalisation reserve - capitalrequirement (individually calculated)
hidden values are not included in the solvency margin
France solvency is not the only element looked after but thesup. Body is analysing the financial situation in totoand is free to take any necessary measure (generalprinciple)
can be considered as free uncommitted own funds onlywith consent of supervisory body
Germany EU rules EU rules can be considered as free uncommitted own funds onlywith consent of supervisory body
Greece
Hungary EU rules EU rules hidden values are not included in the solvency margin
Iceland EU rules EU rules EU rules
Italy EU rules EU rules on request ,and on the production of proof by the ins.co.,sup. body may allow the inclusion in the solvencymargin :in NL limited to 20% of the margin of an amountequivalent to 75 % of the difference between the amount ofthe reserve for outstanding risks calculated at a flat rate byapplication of a minimum percentage of premiums and theamount of the same reserve calculated contract-by-contractin NL in an amount equal to 50 % of the company’s futureprofits and the difference between the amount of the math.reserve determined on the basis of pure premiums as shownin the balance sheet less the amount of the same reserve forceded risks and the amount of the corresponding math.Reserve determined on the basis of pure premiums plus the
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amortisation instalment of the acquisition costs included inpremium rates.Until the 1998 balance sheet, hidden reserves resultingfrom under-estimating assets can also be included
Japansolvency margin (= assets, price fluctuationreserves,catastrophe reserve, reserve for bad debts,profit accrued from valuation of stocks and lands)divided by total risks (= half of the total amount ofinsurable risks, prospective yield risks, assets operatingrisks)
as for “Life” inclusion of 90% of profit accrued from valuation of stocksand 85 % of valuation of lands allowed
Korea equivalent to - or more than - 1% of technical reservesas of the end of each fiscal year
total retained premium per fiscal year may not exceed500% of the policyholder’s surplus
NA
Luxembourg EU rules EU rules
Mexico - gross solvency requirement (GSR) calculated on apremiums or claims basis including a weighted gradingof the reins. Quality- minimum guaranty capital (CMG) formed by GSRplus additional capital for earthquake coverage plusdeductions ( = indisposed balances of the technicalprov.)- solvency margin as difference between the assetssubject to CMG and the amount of CMG
as for “Life”
Netherlands EU rules EU rules N
New Zealand
Norway EU rules and capital requirements as designed for thebanking sector ( min. capital fixed at 8% of the risk-weighted sum of assets) but not additively applied butin a „two-tracked system“
as for “Life“ Not included in the solvency margin
Poland EU rules EU rules not included in the solvency margin
Portugal
Spain EU rules EU rules can be included
Sweden margins and definition of capital base margins and definition of capital base not included, except as deferred acquisition costs on thebalance sheet
Switzerland
Turkey solvency margin (calculated on technical basis) the networth of the co. cannot be less than the solv. margin not included in the solvency margin
United Kingdom
United States The Insurance Regulatory Information System (IRIS):test ratios based on companies’ annual statement data
computed for each ins. co.
As for “Life”
EU as for “Non-Life” ( but determined/ calculated in a The margin shall be determined on the basis either of the at the request of and on the production of proof by the ins.
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different way) annual amount of premiums or contributions, or of theaverage burden of claims for the past 3 financial years. Themargin shall correspond to the assets of the undertakingfree of any foreseeable liability less any intangible items.The following shall be included:-paid-up share capital or effective initial fund,- 1/2 of unpaid share capital/initial fund, once the paid-uppart amounts to 25 % of the share capital/fund,- reserves not corresponding to underwriting liabilities,- any profits brought forward,- in case of mutual or mutual-type associations any claimwhich it has against its members by way of a call forsupplementary contribution ,up to 1/2 of the differencebetween the max. contribution and the contributions calledin, and subject to a limit of 50% of the margin,- at the request of the undertaking, any hidden reservesarising out of underevaluation of assets,- cumulative preferential share capital and subordinatedloan capital only up to 50% of the margin and meetingcertain criteria.One third of the solvency margin shall constitute theguaranty fund.For calculation of the margin and the amount of theguaranty fund .
co., any hidden reserves arising out of the undervaluation ofassets, insofar as those hidden reserves are not of anexceptional nature, may be included in the solvency margin
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Table 2 The Insurance Supervisory Body - Product Control
Country Product control
Life Non life
National Foreign National ForeignAustralia
N N N N
Austria
Belgium Y Y Y Y
Canada
Czech Republic Y Y Y Y
Denmark N N N N
Finland N N N N
France N ( on new products notice have to begiven to the MoF by a form; MoF alsohas the right to ask for notice case bycase and to ask for modifications if theproduct is not in accordance with legalrequirements)
as for “National” as for “Life” as for “Life”
Germany changes of premiums and profitparticipation in ins. Contractsconcluded after the 28th of July 1994must be approved by an independenttrustee; for ins. contracts concludedbefore that date the business planremains applicable and changes haveto be approved by the supervisorybody
as for “National” - in health and motor liability ins.:information of the sup. Body on theintended use of new or changedgeneral ins. policy conditions- other classes: posterior control only
as for “National”
Greece
Hungary Y N Y (until 31.12.1998: accident andhealth, obligatory ins. )
N
Iceland submission of technical bases ( not forapproval)
as for “National” submission of terms of compulsory ins.a priori (not for approval)
as for “National”
Ireland
8
Italy notification on request (non-systematic) of policy conditions,forms, other documents...
as for “National” as for “Life” but submission ofgeneral and special policyconditions of compulsory ins. apriori ( not for approval)
as for „National“
Japan Y (for classes 1 to 16,19) as for “National”Korea in general no prior approval (only
notice a posteriori to Governor ofIns.Sup.Body) ,except in case ofproducts covering risks linked withinterest rate, taxation system, otherrisks than ins. Risks or risks notbased in recognised statistics
as for “National” As for “Life” as for “National”
Luxembourg Y (technical bases for calculationin life)
Y ( technical bases for calculation) Y (conditions in compulsory ins.) as for “National”
Mexico technical notes on tariffs, technicaljustification of premiumsufficiency, other technical bases
As for “Life”
Netherlands N N N NNew ZealandNorway N N N NPoland N N N NPortugalSpain N N N NSweden N (but right to check a posteriori
and non-systematic)as for “National” As for “Life” as for “National”
SwitzerlandTurkey Y (a priori incl. Advertisements for
new products by GeneralDirectorate of Ins. and a posterioriby ins. sup. Body)
as for “National” As for “Life” as for “National”
United KingdomUnited StatesEU N N N N
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Table 3 The Insurance Supervisory Body - Tariff Control
Country Tariff Control
Life Non life
National Foreign National Foreign
Australia N N N NAustriaBelgium Y Y Y YCanadaCzech Republic Y (including calculation and
mortality tables)as for “National” N N
Denmark N N N NFinland N N N NFrance N N N NGermany see table 2 see table 2 see table 2 see table 2GreeceHungary see table 2 see table 2 see table 2 see table 2Iceland N (but notification - not approval -
of technical bases for premiums)as for “National” As for “Life” as for “National”
Italy N (but notification - not approval-of technical bases for premiums)
as for “National” N( but on request -non-systematically- notification ofpremium rates used ; a priori (notfor approval) in case ofcompulsory ins. )
as for “National”
Japan see table 2 see table 2 see table 2 see table 2Korea N N a priori in automobile ins.; in other
classes the rates may be calculatedwithin the designated range oflimits of the standard rate
as for “National”
Luxembourg Y (non-systematic) Y (non-systematic) Y (non-systematic) Y (non-systematic)Mexico N (as long as justified by resp.
technical notes)As for “Life”
10
Netherlands Y (at the latest 2 weeks afterintroduction of a new productsubmission of the methods andfoundations used to calculate thetariffs and technical provisions)
as for “National” N N
New ZealandNorway N N indirect follow-up of premiums
and tariffs conducted by analysingclaim ratios and other key figures
as for „National“
Poland N N N NPortugalSpain N N N NSweden see table 2 see table 2 see table 2 see table 2SwitzerlandTurkey Y(in life/health/compulsory ins.
approval by General Directorate ofIns. and a posteriori by Ins.Sup.Body)
Y Y ( compulsory ins.) Y (compulsory ins.)
United KingdomUnited StatesEU N N N N
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Table 4 The Insurance Supervisory Body - Examination of Accounts
Country Subject of examination1
Direct insurance Reinsurance
Australia Y YAustriaBelgium Y NCanadaCzech Republic - enclosure to balance sheet
-list of technical provisionsN
Denmark - annual report- 5-year review
as for “Direct Ins.”
Finland - items included in the solvency margin-calculation of the solvency margin-catalogue of assets covering technical provisions-detailed analysis of technical provisions-account of the valuation of real estates
- items included in the solvency margin-detailed analysis of technical provisions-account of the valuation of real estates
France - annual report within 5 months-annual accounts within 30 days after approval by General meeting-provisional estimates concerning premiums and annual results forclaim payments-quarterly accounts concerning business in F and with respect toinvestments
-annual report within 5 months-annual accounts within 30 days after approval by General meeting
Germany notes on the accounts notes on the accountsGreeceHungary all the ledger accounts and certificates as for ”Direct ins.”Iceland internal accountings (under some circumstances) as for “Direct ins.”IrelandItaly -notes on the accounts
-anticipation of the accounts-information on management as at the first half year-premium distribution on a regional and provincial basis-information on crime-premiums received abroad
-notes on the accounts-half-yearly information on management-data relating to the company’s shareholdings and participations
12
Japan -audit records by certified accountants and the Board of Corporateauditors-business reports-financial statements-business condition reports monthly or half-yearly-opinions by actuaries
as for “Direct ins.”
Korea -business report-list of property-income statement-statements explaining the writing-off of foundation fund, payment ofthe interest on foundation fund, disposition of earned surplus anddisposition of deficits-monthly statement of assets, summary of business operations
as for “Direct ins.”
Luxembourg annually:- report-solvency marginquarterly:- assets representing technical provisions
solvency margin
Mexico follow up through memoranda account registration as for “Direct ins.”Netherlands annual returns with information on investments, technical results,
technical provisions, solvency, actuarial reportN
New ZealandNorway quarterly: selected figures of the profit and loss account and balance
sheet,various components of the overall technical prov. for the entire co.and for the business written within the various classes ,risk statistics,fulfilment of capital adequacy and solvency margin requirements
as for “Direct ins.“
13
Poland annually:- technical ins. account for all activities (separately for ins.group)-cash flow report-technical provisions-solvency declaration-calculation of own funds-notes to accounts-report on the activities of the financial year-ceded reins. in respect of countries-ceded reins. in respect of reinsurers and enterprisesquarterly: - technical ins. account for all activities-cash flow report-calculation of solvency margin-statement of technical provisions- total amount of investments-highest value of sum insured under a single risk cover-ins. Contracts concluded per class-indemnification of damages per classmonthly: - written premiums per class-claims paid per class
as for “Direct ins.”
PortugalSpain annual accounts, financial returns, audit reports as for “Direct ins.“Sweden statutory report with annual accounts and auxiliary inf. as for “Direct ins.”SwitzerlandTurkey all accounts and documents related with business as for “Direct ins.“United KingdomUnited States Requirement to file an Annual Statement with the state in which the
ins. co. is domiciled, the NAIC and all states where it is authorized todo business.The analysis of the Satement is performed by each state
on all companies domiciled in that state. The Statement accountsinclude the CPA report and actuarial certification.
The Annual Statement requirement applis to reinsurers to the extentthey are licensed or “authorized” in the U.S.
EU requirement to produce annual accounts and to render periodicallyreturns together with statistical documents necessary for purposes ofsupervision
N
1: other than balance sheet and profit and loss account (see part II A tables 11, 12)
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Table 5 The Insurance Supervisory Body - Sanctioning
Country Offender
Manager Board of directorsCircumstances Fine1 Jail2 Circumstances Fine1 Jail2
Australia Carry on business without registration $A 200 N as for “Manager” $A 200 N
Austria
Belgium - carry on business without license
- incorrect declaration or refusal of information- violation of law and ordinances
1000 -10000BF
“
1M - 5years
“
as for “Manager”
Canada
Czech Republic - repeatedly or seriously infringed duties-refusal of implementation of measuresprescribed by ins. sup. body-carry on business without license-consciously introducing false statements inapplication for license-violation of prof. Secret- violation of reputation
up to 100m CZK
“
N - repeatedly or seriously infringed duties-refusal of implementing measures prescribedby sup. Body-violation of reputation
up to 100m CZK
N
Denmark - illegal transaction of ins. business- illegal investments- illegal inter-company transactions
Y N as for “Manager”
Finland - illegal transaction of business-offense/crime-unauthorised disclosure of ins. secret
YYY
1 year1 year
N
as for “Manager”
France - violation of law and ordinances- hampering of sup.activities
Y2.000.000F
N2 years
15
Germany - intentional or negligent violation of anordinance- intentional or negligent failure to give notice- failure to submit or to submit in due time acopy of the auditors report-failure to give information or to give correct orcomplete information or to supply it in due time- not granting the right to speak upon request ofthe sup. body in a meeting of the supervisorycouncil, general meeting of the shareholders ormeetings of the supreme representation-not announcing above meetings upon request ofthe sup. Body
100.000DM
““
“
“
“
N - false statements for the purpose of beinggranted authorisation or renewal of it- disclosure of a company’s secret- not giving required notice on insolvency- misrepresenting or concealing actual situationof a mutual co.- proposing or authorising the distribution ofprofits determined in violation of law or theapproved business plan- violation of provision with respect to theinvestment of assets of the Deckungsstock- violation of the business plan- carrying on business not envisaged in thebusiness plan-intentional or negligent violation of ordinancein accordance with provisions of the sup. Body- intentional or negligent failure to give notice inacc. with provisions of the sup. Body- failure to submit or submit in due time a copyof the auditor’s report- failure to supply information orcorrect/complete inf. or inf. in due time- not granting the right to speak upon request ofthe sup. body in a meeting of the sup.board,general meetings of shareholders or meetings ofthe supreme representation- not announcing above meetings upon request
amountdecidedby court
““
100.000DM
“
““
“
“
“
“
“
“
N
Greece
Hungary violation of law and ordinances 100.000-1m Forint
N N N N
Iceland - embezzlement- failure to inform sup. Body on anything thatmight have decisive effects on the company’sfuture operations
as for “Manager”
Ireland
16
Italy - carry on business without license
- failure to notify in case of acquisitions(participations)- failure to notify any significant property deed- failure to give claims history declaration to theannual term of the contract in motor liability ins.- delay in settling motor liability claims-failure to send in due time the minutes ofshareholder meetings or reports by the internalauditor’s committee-not giving the names of purchasers of shares
twice thepremiumor at least200.000ITL percontract
2 m -20 mITL
1 m ITL
100.000ITL
100.000ITL-2m
ITL
N -
Japan - violation of law or administrative measures- violation of any condition attached to thelicense- activities detrimental to public interests
up to 1 mYen
max.1year
as for “Manager”
Korea - violation of law, ordinances or any regulation N N as for “Manager” N N
Luxembourg - violation of professional secrets-carry on business without license-attempt of the above
2.501 -1 mFlux
8 days -3
months
- violation of prof. Secrets
17
Mexico -allowing a representative or part of a foreigngovernment to have stock participation in anational ins. co.
-carrying on business not under the name of theins. Co. but under the own name
- giving loans to societies constituted with thepurpose of obtaining financing as well as givingloans to natural/ juridical persons of knowninsolvency
participation loss infavour oftheMexicanGovernment1.500 to5.000 daysof min.wage
6monthsto 10years
2 to 10years
-manipulations giving a wrong picture of theco.’s financial situation-unjustified distribution of dividends- any conduct endangering the co.’s solvency
penaltynot ex.4% of
paid-upcapital
Netherlands NA (bill in parliament)
New Zealand
Norway -violation of Ins. Act, regulations or rules orassistance to the violation
-non-compliance with instruction from Sup.Body
Y ( notlegally
specified)daily fine
up to 1year
as for “Manager“
Poland - failure to carry out instructions by sup. body- violation of law or articles of ass.-refusal to supply information
up to 3times themonthly
grossremunerati
on
N as for “Manager”
Portugal
Spain violation of law and regulations Y(var.) Y as for “Manager“
Sweden - intentional or negligent giving of incorrect ordeceptive information
depending up to 1year
as for “Manager”
Switzerland
Turkey -violation of provisions regarding license,guaranties, technical provisions and premiums- violation of by-laws concerning establishment
Y Y as for “Manager“
18
and principles of operation- fictitious balance sheet
United Kingdom
United States
EU NR NR
1: amount2: months / year
19
Table 5 cont. 1 The Insurance Supervisory Body - Sanctioning
Country Offender
Actuary Intermediary Third
Circumstances Fine1 Jail2 Circumstances Fine1 Jail2 Circumstances Fine Jail
Australia N - carry on business without registration(broker)- breaches of trust account and other breaches
2 years
Austria
Belgium N see table 27 disregard of legalobligation toconcludecompulsory ins.
100-1000BF
8days-6month
s
Canada
Czech Republic carry on business without license up to 10m. CZK
N
Denmark Unauthorised disclosure ofconfidential information
Y N NR illegal transactionof ins. business
Y N
Finland Unauthorised disclosure ofins. secrets
Y N unauthorised disclosure of ins. secrets Y N -illegal transactionof ins. business-illegal transactionof intermediation
Y N
France N N NR
Germany submission of false actuarialcertification
decidedby court
3 years -conclusion of an ins. contract for a companynot being authorised accordingly-granting the policyholder any specialallowances
50000 DM - false statementsfor the purpose ofbeing granted anauthorisation orrenewal of it-false reports onthe results of theaudit or the failureto disclosematerial facts inthe report-disclosure of a
decided bycourt
3 years
3 years
1 year
20
secret of the ins.co.-carry on businesswithoutauthorisation orwithout givingnotice to sup.body of homecountry (EU)
1 year
Greece
Hungary N N N Y ( also for the supervisor of brokers andconsultants)
500000-10m HUF
N Y in case of breachof laws orordinances
500000-10m HUF
N
Iceland failure to inform sup. body onanything that may havedecisive effects on thecompany’s future operations
- embezzlement- negligence of information duty
N
Ireland
Italy - violation of provisions (agents)-giving agencies in breach of the law-giving maliciously agencies to unregisteredagents
500.000-2.5 mITL20mITL
Japan breach of faith 3 m Yen not ex. 7year
- false statement to policyholder/insured- no disclosure concerning contract-causing policyholders to make falsestatements or to not disclose important facts
1 m Yen not ex. 1year
N
Korea breach of duty to confirmcalculation of reserves
max. 10m won
max. 1year
-carry on business without authorisation(broker) or registration (agent)- using wrong documents for soliciting-violation of code of conduct
max. 10 mwon
max 1 year Y for lossadjusters (seeactuary)
Luxembourg violation of prof. Secrets - violation of prof. Secrets- carry on business without license-attempt of the above
2501 -1 mFlux
8 days-3 m. exaggeration ofthe value of theinsured interest
2501 -500.000
Flux
1-6months
Mexico faking,omitting, hiding of data 1.000 to5.000
days ofmin.wage
- offer of discounts or reductions in premiumor other benefits as stimulus to take or keepins. contract- false data with respect to ins. co. for unfaircompetition- allowing third persons to act as insurer
1.000 to5.000 days
of min.wage
pretending to beauthorisedinsurer/reinsurer
1.500 to5.000
days ofmin.wage
Netherlands NA(bill in parliament) N
21
New Zealand
Norway as for “Manager“revocation of approval in case:-the actuary has disregardedor neglected duties,-fails to give satisfactoryexplanations to the sup. Body,-conditions for approval areno longer given
contravention of the provisions of theregulation on insurance brokerage (criminaloffense) or of rules in the Ins. Act (fines)
not legallyspecified
N as for “Manager“
Poland N - failure to carry out instructions of sup. body-breach of laws or art. of ass.- refusal to give information(legal pers.: up to 3 times the commissionobtained last 3 months; nat.pers.: up to 20times average of monthly salary)
see left N
Portugal
Spain violation of laws andregulations
Y Y(decidedby court)
violation of law and regulations Y Y(decidedby court)
violation of lawand regulations
Y Y(decided bycourt)
Sweden N Y giving of incorrector deceptiveinformation
depending
1 year
Switzerland
Turkey violation of laws and by-laws 500-2.5m
violation of provisions regarding encashmentand transfer of premiums
2.5-12.5.m fictitious balancesheet (auditor)
1-2 m N
United Kingdom
United States
EU NR NR NR
1: amount2: months / year
22
Table 5 cont. 2 The Insurance Supervisory Body - Sanctioning
CountryAppeal Withdrawal of licence Special rules for foreigners
Australia Y N
Austria
Belgium -sanctions imposed by administration: Conseil d’Etat-sanctions imposed by court: higher criminal court
EU rules in case of withdrawal in country (EU) ofheadquarter, nomination of liquidator ( toterminate contracts and sell assets in B)
Canada
Czech Republic Ministry of Finance in case of: - failure to observe obligations underthe law-evidence of irregularities endangering insuredinterests-failure in undertaking measures of a recoveryplan
N
Denmark court in case of : - inadequate capital- members of board of directors/managementlack of sufficient experience or integrity-failure to satisfy the obligations acc. to Ins.Business Act
N
Finland - sanctions by administration : supreme administrative court-sanctions by court : upper courts
EU rules N
France Conseil d’Etat EU rules N
Germany - sanctions by administration: district court- sanctions by court: regional court
EU rulesin case of evidence of irregularities endangeringinsured interests
N
Greece
Hungary -sanctions by administration:MoF-sanctions by MoF: court
EU rules N
Iceland EU rules N
Ireland
23
Italy - sanctions by administration(non pecuniary):regional administrativecourt(pecuniary) : possibility to pay an reduced payment within 60 days; incase of non-payment and issuance of an injunction by the ProvincialBureau of Industry and Trade ,appeal to civil lower court judge-sanctions by court : higher court
EU rulesfailure in observing obligations under thecontract as regards social security contributionsand remuneration
N
Japan possibility to file a protest or to request an examination in case of considerable financial difficulties NA
Korea -sanctions by MoF: petition within 2 months from knowledge or within6 months from sanction-sanctions by sup. Body : MoF within 1 month resp. 3 months
in case of violation of any law or order N
Luxembourg administrative court EU rules in case of withdrawal of authorisation incountry of head quarter (EU)
Mexico -in first instance ins. sup. Body, then mercantile court- so-called injunction trail in penal court to avoid prison
in case of considerable financial difficulties andno amelioration of the situation in a term of 30days set by sup. body
N
Netherlands sanctions by sup.body: Regulatory Industrial Organisation AppealsCourt
New Zealand
Norway decision by sup. Body: Ministry of Finance within 3 weeks afterknowledge of decision ( appeal is handled administratively only)
by the King, in case :-the board of directors or other bodies havecommitted gross or continued infringement oftheir duties, of regulations or of articles ofassociation,-irregularities in the management,-the co. no longer has a satisfactory financialbasis,-the co. no longer conducts business in a certainclass
in case of withdrawal of authorisation incountry of headquarter (EU)
Poland Supreme Administrative Court EU rules in case of withdrawal of authorisation incountry of head quarter (EU) or if of vitalnational interest
Portugal
Spain Ministry of Finance, court EU rules N
Sweden - sanctions by administration : administrative court- sanctions by criminal court : district court
EU rules N
Switzerland
24
Turkey courts see table 13 N
United Kingdom
United States
EU each Member State shall make provision for a right to apply for thecourts should there be any refusal of authorisation
in case of :- no use of authorisation within 12months or having ceased doing business formore than 6 months or having announced togive up business-authorisation requirements are no longer met-failure in taking up measures of a recoveryplan-failure in observing obligations under the lawor the business planconsequences: - prohibition to write newbusiness- prohibition or restriction of free disposal ofassets
N