Insurance Law of Laos

8/9/2019 Insurance Law of Laos

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LAO PEOPLE’S DEMOCRATIC REPUBLICPEACE INDEPENDENCE DEMOCRACY UNITY PROSPERITY

________________

President’s Office No. 101PO

DECREEof the

PRESIDENTof the

LAO PEOPLE’S DEMOCRATIC REPUBLIC

On the Promulgation of the Insurane La!

P!rs!"nt to t#e Reso$!tion of t#e Meetin% of t#e Peo&$e’s Re&resent"ti'es on (Dece)*er 1+,- on t#e A&&oint)ent of t#e President of t#e St"te

P!rs!"nt to t#e L"/ on t#e Peo&$e’s S!&re)e Asse)*$ of t#e L"o Peo&$e’sDe)ocr"tic Re&!*$ic No. 02SPA d"ted 1+ A&ri$ 1+33 "nd

P!rs!"nt to t#e Reso$!tion of t#e fift# session of t#e second Peo&$e’s S!&re)eAsse)*$ on t#e "do&tion of t#e Ins!r"nce L"/ No 11+0SPA d"ted 13 Dece)*er 1++0.

The Presi"ent of the Lao Peo#le$s Demorati Re#u%liDerees That&

Artile '( T#e Ins!r"nce L"/ is #ere* &ro)!$%"ted.

Artile )( T#is decree s#"$$ enter into force on t#e d"te it is si%ned.

4ienti"ne (2 Dece)*er 1++0

Actin% President of t#e L"o Peo&$e’sDe)ocr"tic Re&!*$ic

[Seal and Signature]

P#o!) 4ON54IC6IT

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LAO PEOPLE’S DEMOCRATIC REPUBLICPEACE INDEPENDENCE UNITY DEMOCRACY PROSPERITY

7777777777777777

Peo&$e’s S!&re)e Asse)*$ No. 11+0PSA13 Dece)*er 1++0

INSURANCE LA*

Part I+eneral Prini#les

Artile '( ,untion of the Insurane La!

T#e Ins!r"nce L"/ #"s t#e f!nction of &ro)otin% "nd &reser'in% t#esocio8econo)ic *"sis of t#e L"o Peo&$e9s De)ocr"tic Re&!*$ic re%!$"tin%ins!r"nce re$"tions#i&s ens!rin% t#e e:ercise of ri%#ts "nd t#e &erfor)"nce of d!ties *et/een enter&rises cond!ctin% ins!r"nce *!siness "nd ins!redindi'id!"$s or $e%"$ entities en#"ncin% t#e res&onsi*i$ities of enter&rises

cond!ctin% ins!r"nce *!siness in i)&$e)entin% t#e $"/s of t#e St"te "nd toens!re St"te ins&ections of ins!r"nce *!siness !ndert";in%s.

Artile )( The Con"ut of Insurane

T#e cond!ct of ins!r"nce is " contr"ct /#ere one &"rt referred to "st#e ins!red "%rees to &" ins!r"nce &re)i!)s for t#e &!r&ose of recei'in%inde)nific"tion1 for #i)se$f or for " t#ird &erson in t#e e'ent of $oss "nd t#eot#er &"rt referred to "s t#e ins!rer /#o ins!res "%"inst ris;s * &ro'idin%t#e inde)nit.

Artile -( Persons In.ol.e" in an Insurane Contrat

Persons in'o$'ed in "n ins!r"nce contr"ct "re< t#e ins!rer ="nd> t#eins!red or t#e si%n"tor of t#e ins!r"nce "nd t#e *enefici"r.

An ins!rer is "n enter&rise "!t#orised * t#e St"te to cond!ct ins!r"nce *!siness.

An ins!red is " &erson /#o recei'es $ife or &ro&ert ins!r"nce fro) "nins!r"nce enter&rise.

1 T#e $iter"$ tr"ns$"tion of t#is ter) is ?co)&ens"tion for d")"%e@.



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A ci'i$ $i"*i$it ins!r"nce is "n ins!r"nce "%"inst ci'i$ d")"%e for /#ic#t#e ins!rer )!st inde)nif or co)&ens"te on *e#"$f of t#e ins!red.

. Person"$ Ins!r"nce "nd Mo*i$is"tion of !nds

Person"$ ins!r"nce "nd )o*i$is"tion of f!nds is "n ins!r"nce "%"instd")"%e occ!rrin% "s " res!$t of de"t# or #e"$t# &ro*$e)s in res&ect of /#ic# "nins!r"nce &")ent is recei'ed in t#e e'ent =t#e ins!red or *enefici"r>contin!es to $i'e "s sti&!$"ted in t#e ins!r"nce &o$ic.

Part IIAuthorisation to Con"ut Insurane Business an" State Au"its

Cha#ter 'Authorisation to Con"ut Insurane Business

Artile 3( Re4uest to Con"ut Insurane Business

Indi'id!"$s or $e%"$ entities /#o re!est to cond!ct "n ins!r"nce *!siness )!st co)&$ete " f!$$ set of doc!)ents "s sti&!$"ted in t#e Decree of t#e Co!nci$ of Ministers-.

A re!est to cond!ct "n ins!r"nce *!siness )!st *e s!*)itted to t#eMinister of Econo) P$"nnin% "nd in"nce. T#e Minister of Econo)P$"nnin% "nd in"nce )!st consider "nd )";e " decision on t#e re!est /it#int#ree )ont#s fro) t#e d"te of recei&t of t#e re!est.

Artile 5( Organisations !hih ha.e the Right to Authorise the Con"ut of Insurane Business

An indi'id!"$ or $e%"$ entit /#ic# #"s t#e intention to cond!ctins!r"nce *!siness "s referred to in Artic$e 2 of t#is $"/ )" st"rt cond!ctin%its *!siness !&on "!t#oris"tion fro) t#e Minister of Econo) P$"nnin% "ndin"nce.

T#e Minister of Econo) P$"nnin% "nd in"nce #"s t#e ri%#t to"!t#orise t#e &erson /#o #"s re!ested to cond!ct ins!r"nce *!siness of oneor )ore t&esF. An ins!r"nce enter&rise #"s t#e ri%#t to cond!ct on$ t#e t&e

of ins!r"nce *!siness /#ic# it #"s *een "!t#orised to o&er"te.If necess"r d!e to circ!)st"nces of t#e ins!r"nce )"r;et t#e Minister of Econo) P$"nnin% "nd in"nce #"s t#e ri%#t to restrict or s!s&end t#eiss!"nce of "ddition"$ $icenses for ins!r"nce *!siness of one so)e or "$$ t&es.

T#e iss!"nce )odific"tion restrictions s!s&ensions or /it#dr"/"$s of ins!r"nce $icenses )!st *e )"de in t#e for) of " decision of t#e Minister of Econo) P$"nnin% "nd in"nce.

5 T#e ?Co!nci$ of Ministers@ is t#e n")e * /#ic# t#e Pri)e Minister’s Office !sed to *e

;no/n.F

T#e $iter"$ tr"ns$"tion of t#is ter) is ?sectors@.

UNDP Draft Translation – March 2006


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Cha#ter )

State Au"it

Artile 6( Pur#ose of a State Au"it

A St"te "!dit of ins!r"nce enter&rises is for t#e &!r&ose of &rotectin%t#e interests of t#e ins!red or t#e si%n"tor of t#e ins!r"nce contr"ct "nd

*enefici"ries !nder ins!r"nce "nd f!nd )o*i$is"tion contr"cts.

Artile '7( Su%mission an"3 Ins#etion of Douments

Before !sin% doc!)ents re%"rdin% %ener"$ conditions of "n ins!r"nce &o$ic or offer ins!r"nce "&&$ic"tion for)s "d'ertise)ent $e"f$ets "nd *roc#!res /#ic# /i$$ *e distri*!ted or disse)in"ted to t#e &!*$ic or %i'en toins!r"nce contr"ct #o$ders or to t#eir o/n )e)*ers ins!r"nce enter&rises of "$$t&es )!st first s!*)it s!c# doc!)ents to t#e Minister of Econo) P$"nnin%

"nd in"nce for "&&ro'"$.

If t#ere "re )odific"tions or ")end)ents to t#e "rtic$es of "ssoci"tionins!r"nce enter&rises of "$$ t&es )!st infor) t#e Minister of Econo)P$"nnin% "nd in"nce /it#in fifteen d"s fro) t#e d"te t#e %ener"$ )eetin%3 of enter&rise #"s 'oted for ="nd> "do&ted it.

Ins!r"nce enter&rises of "$$ t&es )!st infor) t#e Minister of Econo)P$"nnin% "nd in"nce re%"rdin% t#e *"sis for c"$c!$"tion "nd ins!r"nce

&re)i!)s /#ic# t#e &ro&ose to "&&$.

If "n ins!r"nce enter&rise decides to )odif cert"in det"i$s re$"tin% toins!r"nce &re)i!)s contr"ct conditions t#e &rofession"$ or%"nis"tion =of t#eenter&rise> co)&etition+ or t#eir fin"nci"$ )"n"%e)ent t#e directors of t#eenter&rise )!st notif s!c# decision to t#e Minister of Econo) P$"nnin% "ndin"nce *efore "&&$in% =s!c# )odific"tion>.

T#e Minister of Econo) P$"nnin% "nd in"nce #"s t#e ri%#t tode)"nd )odific"tion of ins!r"nce &re)i!) r"tes ="nd> "$$ doc!)ents to *e!sed in t#e ins!r"nce *!siness or in )o*i$isin% f!nds fro) t#e &!*$ic inc$!din%infor)"tion /#ic# /i$$ *e disse)in"ted.

Artile ''( Ins#etors

Ins&ectors "re s/orn =ci'i$> ser'"nts "ssi%ned to &erfor) d!ties in"ccord"nce /it# conditions sti&!$"ted in " s&ecific decision of t#e Minister of Econo) P$"nnin% "nd in"nce "nd "re "ssi%ned to re%!$"r$ )onitor ins!r"nce enter&rises.

7 T#e $iter"$ tr"ns$"tion of t#is ter) is ?or@. 6o/e'er it is !sed in t#is conte:t to )e"n ?"[email protected]

T#e $iter"$ tr"ns$"tion is ?%ener"$ )eetin%@ *!t t#e intended )e"nin% is " f!$$ )eetin% s!c#"s "n Ann!"$ 5ener"$ Meetin%.

+

T#e tr"ns$"tors #"'e c#osen to !se " $iter"$ tr"ns$"tion #ere. T#ere is "n i)&$ic"tion in t#e$iter"$ $"n%!"%e t#"t t#e co)&etition is !nf"ir.



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Ins&ectors #"'e t#e ri%#t "t "$$ ti)es to &erfor) on8site ins&ections of "$$ "cti'ities of ins!r"nce enter&rises ="nd> ins&ectors )!st )"int"inconfidenti"$it re%"rdin% t#e *!siness t#"t t#e *eco)e "/"re of d!rin% t#e

&erfor)"nce of t#eir d!ties.

Ins&ectors #"'e t#e ri%#t to ins&ect "$$ *oo;s of "cco!nts %ener"$$ed%ers contr"cts $etters )e)or"nd" "cco!ntin% doc!)ents or ot#er doc!)ents re$"tin% to sit!"tions "nd &"st "cti'ities of ins!r"nce enter&rises "ndins&ect c"s# reser'es "nd '"$!"*$e "ssets.

Ins&ectors )!st &re&"re re&orts s!))"risin% t#eir ins&ectionsconfir)in% t#e tr!e =circ!)st"nces> /#ic# t#e #"'e fo!nd "nd re&ort to t#eMinister of Econo) P$"nnin% "nd in"nce in order to o*t"in instr!ctions ont#e )et#od of reso$!tion =of &ro*$e)s> "s dee)ed necess"r.

In cond!ctin% ins&ections ins&ectors )!st co)&$ /it# re%!$"tions

re$"tin% to fin"nci"$ "nd "cco!ntin% ins&ections.

Artile ')( Duties of Insurane Enter#rises relating to Ins#etions

Ins!r"nce enter&rises of "$$ t&es indi'id!"$s or $e%"$ entities /#ic##"'e *een "ssi%ned t#e ri%#t * "n ins!r"nce enter&rise to enter into or "d)inister " contr"ct ="nd> indi'id!"$s or $e%"$ entities /#ic# &r"ctice t#e

&rofession of ins!r"nce inter)edi"ries )!st *e ins&ected * ins&ectors.

Ins!r"nce enter&rises )!st f"ci$it"te ins&ectors in t#e &erfor)"nce of t#eir d!ties in t#eir t&es of ins!r"nce "cti'ities or t#eir *r"nc#es in ins&ectin%

"$$ %ener"$ $ed%ers "nd doc!)ents )entioned in Artic$e 11 of t#is $"/ "nd )!st)";e "'"i$"*$e co)&etent st"ff to s!&&$ infor)"tion re!ired * t#eins&ectors.

PART IIILao Insurane Com#anies an" Branhes of ,oreign Insurane Com#anies8

Insurane Interme"iaries8 ,inanial Regime8 Aounting8 an" Statistis

Cha#ter 'Lao Insurane Com#anies an" Branhes of ,oreign Insurane Com#anies

Artile '-( Lao Insurane Com#anies an" Branhes of ,oreign Insurane

Com#anies

A L"o ins!r"nce co)&"n is "n ins!r"nce co)&"n /#ic# #"s *een"!t#orised to *e est"*$is#ed in t#e L"o Peo&$e9s De)ocr"tic Re&!*$ic Goint$

*et/een L"o indi'id!"$s or $e%"$ entities or t#ro!%# " Goint 'ent!re *et/eenL"o indi'id!"$s or $e%"$ entities "nd forei%n indi'id!"$s or $e%"$ entities "nd isre%istered in confor)it /it# L"o $"/s.

A *r"nc# of " forei%n ins!r"nce co)&"n is "n or%"nis"tion of " forei%nins!r"nce co)&"n /#ic# #"s *een "!t#orised * t#e L"o %o'ern)ent tocond!ct ins!r"nce *!siness in t#e L"o Peo&$e9s De)ocr"tic Re&!*$ic "nd /#ic#

is re%istered in confor)it /it# L"o $"/s.

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Artile '/( Stan"ar"s of ,oun"ers'7 of an Insurane Com#an2

An indi'id!"$ /i$$ not *e "!t#orised to est"*$is# direct "d)inister)"n"%e "nd cond!ct sett$e)ents for ins!r"nce enter&rises => if t#"t indi'id!"$#"s co))itted " cri)in"$ "ct of t#eft e)*eHH$e)ent )is"&&ro&ri"tion iss!es "

c#e!e =on "n "cco!nt> /it#o!t )one =#"s> co))itted "n offense "ffectin%St"te credit8/ort#iness "nd11 conce"$ed t#e t#in%s1( o*t"ined in co))ittin%t#e offenses referred to "*o'e=> "nd cri)es. 1

Artile '0( Restritions to the Personal Interests of Mem%ers of Boar"s of Diretors an" E9euti.e Offiers

Me)*ers of *o"rds of directors "nd e:ec!ti'e officers of ins!r"nceco)&"nies "re &ro#i*ited fro) direct$ or indirect$ ="nd> "*!si'e$ t";in% or )"int"inin% " &erson"$ interest in t#e ins!r"nce enter&rise t#e ins!r"nce)"r;et in )";in% contr"cts in co))erci"$ or fin"nci"$ o&er"tions !ndert";en

Goint$ /it# t#e ins!r"nce co)&"n !n$ess t#e #"'e o*t"ined "&&ro'"$ fro)t#e co)&"n’s %ener"$ )eetin%. T#e "nn!"$ re&ort s!*)itted to t#e %ener"$)eetin% )!st re&ort on t#e cond!ct of "cti'ities "!t#orised * t#e %ener"$)eetin% of t#e enter&rise. Re&orts re$"tin% to t#e cond!ct of s!c# "cti'ities)!st *e inc$!ded in t#e "!ditor’s re&ort.

Artile '1( Criteria of a Person to !hom +eneral Rights of Insurane

Com#anies ma2 %e +rante"

A &erson to /#o) %ener"$ ri%#ts of ins!r"nce co)&"nies )" *e%r"nted )!st #"'e " notific"tion of offence 12 "nd " certific"te "!t#orisin% #i)

to direct$ )"n"%e t#e *r"nc# of t#e ins!r"nce co)&"n.

A &erson /#o #"s *een %r"nted %ener"$ ri%#ts )!st )"int"in "cco!ntss&ecific to e"c# t&e of ins!r"nce *!siness /#ic# #e cond!cts in t#e L"oPeo&$e9s De)ocr"tic Re&!*$ic.

Artile '3( Determination of Ca#ital Re4uirements for a Partnershi#Com#an2

A &"rtners#i& co)&"n )!st #"'e enter&rise c"&it"$ to !ndert";eins!r"nce "cti'ities in "n ")o!nt not $ess t#"n t#e ")o!nt s&ecified in t#e

decree of t#e Co!nci$ of Ministers. An ins!r"nce co)&"n doc!)ent /#ic#

10 T#e /ord ?fo!nder@ #ere #"s " different )e"nin% fro) ?fo!nder@ in t#e B!siness L"/. 6ere t#ereis no o*Gecti'e of differenti"tin% ?fo!nders@ fro) s#"re#o$ders. In t#is !se t#e )e"nin% is ?t#e &eo&$e/#o #"'e t#e ri%#t to est"*$is# "n ins!r"nce co)&"[email protected]

T#e $iter"$ tr"ns$"tion of t#is ter) is ?"nd@ *!t t#e &ro*"*$e )e"nin% #ere is ?or’’.1(

T#e /ord ?t#in%@ s#o!$d *e re"d in " %ener"$ /".1

T#is ter) refers to offenses /#ic# "re &!nis#"*$e /it# i)&rison)ent of " &eriod fro) fi'ee"rs !& to c"&it"$ &!nis#)ent "s defined in Artic$e , of t#e Pen"$ L"/.

14 T#is ter) refers to " doc!)ent iss!ed * " co)&etent "!t#orit to certif t#"t t#e indi'id!"$#"s not co))itted "n offenses.

UNDP Draft Translation – March 2006 F


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/i$$ *e disse)in"ted to t#e &!*$ic )!st c$e"r$ st"te t#e c"&it"$ of s!c#enter&rise.

Artile '5( Seurit2 De#osits of a Lao Insurane Com#an2 an" of a Branh ofa ,oreign Insurane Com#an2

A L"o ins!r"nce co)&"n "nd " *r"nc# of " forei%n ins!r"nce co)&"n/#ic# cond!ct ins!r"nce *!siness in t#e L"o Peo&$e9s De)ocr"tic Re&!*$ic)!st de&osit " %!"r"ntee into " *"n; est"*$is#ed in t#e territor of t#e L"oPeo&$e9s De)ocr"tic Re&!*$ic in "n ")o!nt sti&!$"ted in t#e Decree of t#eCo!nci$ of Ministers.

A L"o ins!r"nce co)&"n or " *r"nc# of " forei%n ins!r"nce co)&"n)" de&osit %!"r"ntees in i& or in forei%n c!rrenc %o'ern)ent *onds or %o'ern)ent8%!"r"nteed *onds. If interest #"s "ccr!ed fro) t#e %!"r"ntee in t#e

*"n; t#e co)&"n or " *r"nc# of " co)&"n #"s t#e ri%#t to !se =s!c#

interest>.

If reser'es for tec#nic"$ &!r&oses1- or de&osits in " s"'in%s "cco!ntcorres&ondin% to s!c# reser'es "re ins!fficient "&&ro'"$ /i$$ *e %i'en to !set#e de&osit referred to "*o'e to s&ecific"$$ inde)nif t#e ins!red or

*enefici"ries !nder s!c# ins!r"nce contr"ct.

If "n ins!r"nce co)&"n ce"ses =its o&er"tions> or is *ein% $i!id"ted1Ft#e %!"r"ntee de&osited in t#e *"n; )!st *e ret!rned to t#e co)&"n /it#in 0d"s fro) t#e d"te t#e Minister of Econo) P$"nnin% "nd in"nce iss!es "

notice. T#e notice )!st indic"te t#e &erfor)"nce of t#e co)&"n’s o*$i%"tionsor t#e tr"nsfer of e:istin% "ssets "nd '"rio!s o*$i%"tions to "n enter&rise /#oseest"*$is#)ent #"s *een "!t#orised.

Artile '6( Metho"s for Inreasing Effiien2 of an Insurane Enter#rise

If it is fo!nd t#"t "n ins!r"nce enter&rise is in t#e sit!"tion /#ic# )"not en"*$e it to f!$fi$$ its o*$i%"tions or &erfor) its d!ties in "ccord"nce /it#t#e r!$es t#e Minister of Econo) P$"nnin% "nd in"nce #"s t#e ri%#t to order "nd re!est t#"t t#e re$e'"nt enter&rise s!*)it its re8or%"nis"tion &$"ns for "&&ro'"$. S!c# &$"ns )!st &roGect "$$ s&ecific )e"s!res to i)&ro'e t#e

efficienc of t#e enter&rise.

T#e s!*)ission of t#e enter&rise re8or%"nis"tion &$"n )!st t";e &$"ce/it#in t#irt d"s fro) t#e d"te of t#e recei&t of t#e order.

If "n ins!r"nce enter&rise 'io$"tes r!$es re%"rdin% reser'es for tec#nic"$ &!r&oses t#e Minister of Econo) P$"nnin% "nd in"nce #"s t#eri%#t to s!s&end t#e !n$i)ited !se of t#e re$e'"nt ins!r"nce enter&rise’s "ssets$oc"ted in t#e territor of t#e L"o Peo&$e9s De)ocr"tic Re&!*$ic.

15 Re"ders )" /is# to refer to C#"&ter of t#is $"/ for "n e:&$"n"tion of t#is ter).16 T#e $iter"$ tr"ns$"tion of t#is r"se is ?$i!id"tion of $i"*i$ities "nd "ssets@.

UNDP Draft Translation – March 2006 ,


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re$e'"nt L"o ins!r"nce co)&"n or =res!$ts in> t#e co))ence)ent of t#e$i!id"tion of " *r"nc# of " forei%n ins!r"nce co)&"n fro) t#e d"te t#edecision *ec")e effecti'e.

If "n enter&rise #"s "&&e"$ed "%"inst t#e decision to /it#dr"/ " $icense

=t#e co))ence)ent d"te of $i!id"tion1,

> /i$$ *e t#e d"te of iss!e of t#e decreeof t#e Co!nci$ of Ministers.

Artile )/( Con"ut of Li4ui"ation

Li!id"tion is cond!cted * " $i!id"tion co))ittee est"*$is#ed * t#ePresident of t#e Co!nci$ of Ministers !&on reco))end"tion of t#e Minister of Econo) P$"nnin% "nd in"nce.

T#e $i!id"tion co))ittee s#"$$ inc$!de one or )ore re&resent"ti'esfro) t#e Ins!r"nce De&"rt)ent "nd ot#er tec#nic"$ st"ff "s necess"r.

In t#e $i!id"tion distri*!tions )!st confor) /it# &riorities of creditors"nd in "ccord"nce /it# t#e Ci'i$ L"/.

Cha#ter )

Insurane Interme"iaries

Artile )0( Insurane Offers

An offer or "cce&t"nce of "n offer = re$"tin% to> t#e si%nin% of "nins!r"nce contr"ct * "n indi'id!"$ or $e%"$ entit or t#e 'er*"$ or /ritten

e:&$"n"tion of t#e conditions of ins!r"nce to " =&otenti"$> si%n"tor of "nins!r"nce =contr"ct> "re considered "s ins!r"nce offers.

Artile )1( Insurane Interme"iaries

Ins!r"nce *!sinesses of "$$ t&es c"n *e offered to t#e &!*$ic &ro'idedt#"t s!c# offers "re )"de t#ro!%# t#e fo$$o/in% ins!r"nce inter)edi"ries<

1. Ins!r"nce re&resent"ti'es(. Le%"$$ "!t#orised ins!r"nce *ro;ers "nd ins!r"nce *ro;er"%e

enter&rises

. St"ff of "n ins!r"nce co)&"n &ersons "!t#orised * ins!r"nceco)&"nies ="nd> st"ff of ins!r"nce "%ents "nd of ins!r"nce *ro;ersor ins!r"nce *ro;er"%e enter&rises /#o #"'e *een &ro&er$"ssi%ned to &erfor) t#e t"s; "nd /#o #"'e &erfor)ed s!c# t"s;s!nder t#e res&onsi*i$it "nd for t#e interests of t#e %r"ntor =of s!c#ri%#ts> or of t#e co)&"n.

Ins!r"nce co)&"nies ins!r"nce "%ents ins!r"nce *ro;ers or ins!r"nce *ro;er"%e enter&rises )!st #o$d ci'i$ $i"*i$it for d")"%e /#ic# #"s occ!rredd!e to " /ron%f!$ "ct ne%$i%ence or $"c; of "ttention on t#e &"rt of t#eir st"ff or %r"ntees =of ri%#ts>.

17 Unti$ " decree in res&onse to t#e "&&e"$ is iss!ed * t#e Co!nci$ of Ministers t#e disso$!tionor co))ence)ent of $i!id"tion c"nnot *e%in.

UNDP Draft Translation – March 2006 +


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Artile )3( Professional Stan"ar"s

Indi'id!"$s /#o /i$$ !ndert";e t#e &r"ctice of t#e &rofession of ins!r"nce inter)edi"ries "s sti&!$"ted in Artic$e (F "*o'e )!st )eet t#e

fo$$o/in% st"nd"rds<

1. Be not $ess t#"n 13 e"rs of "%e "nd *e " L"o n"tion"$(. 6"'e not co))itted "n offense sti&!$"ted in Artic$e 12 of t#is $"/. 6"'e " %ood &rofession"$ ;no/$ed%e "nd co)&etence in t#is

&rofession.

Cha#ter -,inanial Regime

Artile )5( O%ligations un"er the Regulations

Ins!r"nce enter&rises #"'e t#e d!t !nder re%!$"tions to =)"int"in> "t"$$ ti)es e'idence of t#e '"$!e of t#e fo$$o/in%<

Ins!r"nce enter&rises )!st #"'e "t "n ti)e e'idence certifin% t#e'"$!e of t#eir =fin"nci"$> "*i$it to )eet t#eir o*$i%"tions !nder t#e re%!$"tions"s fo$$o/s<

1. T#e reser'es for tec#nic"$ &!r&oses )!st *e s!fficient to en"*$e f!$$ &erfor)"nce of contr"ct!"$ o*$i%"tions to/"rds t#e ins!red or t#e *enefici"ries !nder t#e ins!r"nce contr"ct

(. Li"*i$ities )!st corres&ond /it# ot#er &riorit de*ts.

Artile )6( Life Insurane an" ,un" Mo%ilisation

Reser'es for tec#nic"$ &!r&oses re$"tin% to "cti'ities of $ife ins!r"nce"nd of f!nd )o*i$is"tion "re "s fo$$o/s<

1. T#e reser'e f!nd *"sed on c"$c!$"tion =/#ic# refers to> t#edifference *et/een t#e &resent '"$!e of contr"ct!"$ o*$i%"tions"%reed *et/een "n ins!r"nce enter&rise "nd t#e ins!red t#e)et#od for c"$c!$"tion is *"sed on t#e t"*$e st"tin% t#e

co)&!t"tion of $ife ins!r"nce &")ents13

"nd t#e interest r"te(. T#e reser'e f!nd for distri*!tion of &rofits.

Artile -7( Insurane Reser.es for Damages

Reser'es for tec#nic"$ &!r&oses re$"tin% to ins!r"nce "cti'ities "%"instd")"%e "re "s fo$$o/s<

1. Reser'es for c!rrent ins!r"nce "%"inst ris;s =/#ic# refers to>reser'es to ins!re "%"inst ris;s ="nd> %ener"$ e:&enses re$"tin% toe"c# contr"ct for /#ic# " &re)i!) #"s "$re"d *een &"id => d!rin%

18 T#e $iter"$ tr"ns$"tion of t#is ter) is ?de"t# r"tes@.



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t#e &eriod *et/een t#e d"te of entr into t#e "cco!nts "nd t#e d"tefor t#e deter)in"tion of " ne/ ins!r"nce &re)i!)

(. Reser'es "%"inst d")"%e for /#ic# &")ent #"s not et *een )"de=/#ic# refers to> t#e "ssess)ent of t#e ")o!nt of &")ent /#ic#is o/in% *!t #"s not et *een )"de ="nd>

. Reser'es for incre"sed ris;s "nd reser'es for "dG!stin% ris;s.



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Artile -'( Priorities of the Insure" an" :of; Benefiiaries un"er the Contrat

Ins!red &ersons "nd *enefici"ries !nder ins!r"nce contr"cts #"'e s&eci"$ &riorit o'er )o'"*$e "ssets of ins!r"nce enter&rises /#ic# "re inc$!ded in t#ereser'es for tec#nic"$ &!r&oses. S!c# &riorit is r"n;ed i))edi"te$ "fter st"ff

s"$"ries "nd St"te de*ts.1+

Mo'"*$e "ssets of ins!r"nce enter&rises /#ic# "re inc$!ded in t#ereser'es for tec#nic"$ &!r&oses "re " s&eci"$ &riorit of t#e ins!red "nd of t#e

*enefici"ries !nder t#e ins!r"nce contr"ct. S!c# &riorit is r"n;ed i))edi"te$"fter st"ff s"$"ries "nd St"te de*ts.

i:ed "ssets of ins!r"nce enter&rises /#ic# "re inc$!ded in t#e reser'esfor tec#nic"$ &!r&oses !&on " re!est of t#e Minister of t#e Ministr of Econo) P$"nnin% "nd in"nce "re " sec!rit for &")ent to &riorit creditors"nd )!st *e re%istered in "ccord"nce /it# t#e $"/s.

Artile -)( A%ilit2 to Pa2 De%ts

A$$ ins!r"nce enter&rises )!st #"'e e'idence to de)onstr"te t#eir "*i$it to &" de*ts.

T#e "*i$it to &" de*ts inc$!des<

1. Enter&rise c"&it"$ or est"*$is#)ent c"&it"$(. Reser'es /#ic# do not re$"te to "n o*$i%"tions. Profit c"rried for/"rd "nd "nn!"$ inco)e "fter ded!ction of $osses

2. T#e e:cess '"$!e /#ic# res!$ts fro) " $o/er e'"$!"tion of t#e"ssets => !&on t#e "&&ro'"$ of t#e Minister of t#e Ministr of Econo) P$"nnin% "nd in"nce *"sed on " &ro&os"$ "nd &ro'isionof e'idence * t#e ins!r"nce enter&rise

-. Int"n%i*$e "ssets s#"$$ not *e c"$c!$"ted for t#e &!r&ose of deter)inin% t#e "*i$it to &" de*ts.

T#e "*i$it to &" de*ts )!st *e in "n ")o!nt e!"$ to t/ent &ercentof "ct!"$ ins!r"nce &re)i!)s.

Cha#ter /

Aounting an" Statistis

Artile --( Au"itors

Ins!r"nce enter&rises )!st *e "!dited * one or )ore "!ditors.

19 T#e str!ct!re of t#is sentence #"s *een c#"n%ed for re"d"*i$it.

UNDP Draft Translation – March 2006 1(


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Artile -/( S#eifi Aounting Plans

A$$ ins!r"nce enter&rises )!st )"int"in "cco!nts in t#e for) s&ecifiedin t#e L"/ on Enter&rise Acco!ntin%.

Acco!nts )!st *e ;e&t for e"c# e"r of o&er"tion "nd for e"c# t&e of ins!r"nce. T#e &ostin% of entries into t#e "cco!nts of t#e ins!r"nce enter&rise)!st *e s!&&orted * doc!)ents "nd "n "nn!"$ ins&ection of "ssets. In order to ser'e "s " *"sis for "nn!"$ &ostin% of t#e "ssets into t#e "cco!nts " *"$"nces#eet )!st *e )"de for e"c# "cco!nt "nd s!*8"cco!nt. S!c# *"$"nce s#eets)!st *e "*$e to s!))"riHe "$$ &ostin%s s#o/n in t#e %ener"$ $ed%er.

Artile -0( Aounting Re#orts

E"c# e"r ins!r"nce enter&rises )!st )";e "n "nn!"$ re&ort of t#e &recedin% e"r "nd s!*)it it to t#e Minister of t#e Ministr of Econo)

P$"nnin% "nd in"nce no $"ter t#"n 0 J!ne. T#e re&ort )!st &ro'ide det"i$sre%"rdin% *!siness o&er"tions "s /e$$ "s t#e fin"nci"$(0 st"t!s of e"c# ins!r"ncesector in order to en"*$e ins&ection of t#e o&er"tions of t#e enter&rise.

Artile -1( Boo "rr"n%ed "ccordin% to d"te/it#o!t *$"n; s&"ces /it#o!t %"&s ="nd> /it#o!t "n /ritin%

*eond )"r%ins(. One %ener"$ $ed%er. One *oo; of !"rter$ tri"$ *"$"nces2. One *oo; of "nn!"$ *"$"nce s#eets-. One or se'er"$ c"s# *oo;sF. One *oo; to )onitor *"n; s"'in%s.

A certific"te of )o'"*$e "ssets fi:ed "ssets "nd $o"ns )!st *e &ostedinto s&ecific "cco!nts "nd )!st *e recorded in " *oo; of record of "cti'ities for t#e &!r&ose of re%!$"r )onitorin%.

20 T#e $iter"$ tr"ns$"tion of t#is ter) is ?"cco!ntin%@.



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PART I=

Rules Relating to Insurane Contrats

Cha#ter 'Pur#ose of Im#lementation of Insurane Contrats an" Rules Relating to

Ma sent to t#e ins!rer * re%istered )"i$ or * $etter re!irin%

"c;no/$ed%)ent of recei&t ="nd> if t#e ins!rer #"s not reGected s!c# re!est/it#in 1- d"s fro) t#e d"te of recei&t of re!est =s!c# re!est> s#"$$ *edee)ed "&&ro'ed.

A&"rt fro) t#ese r!$es t#e )";in% of "n ins!r"nce contr"ct )!st "$soco)&$ /it# Artic$e - of t#e Contr"ct L"/.

Artile -6( Duration of an Insurane Poli2

An ins!r"nce &o$ic )!st #"'e " d!r"tion. An ins!r"nce contr"ct &ro&osed * "n ins!r"nce co)&"n in "ccord"nce /it# &oint ( of Artic$e 2 of

t#is $"/ )!st *e )"de for one e"r "nd e"c# rene/"$ of t#is contr"ct )!st note:ceed one e"r.



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If "n ins!r"nce contr"ct #"s e:&ired "nd #"s *een rene/ed"!to)"tic"$$ "n &"rt )" ter)in"te s!c# contr"ct * %i'in% )ont#s noticeto t#e ot#er &"rt in /ritin% or * re%istered )"i$ or * " $etter re!irin% "si%n"t!re "s "c;no/$ed%)ent of recei&t.

Artile /7( >e2 Content of Insurane Poliies

T#e ;e content of ins!r"nce &o$icies consists of<

1. N")e "nd s!rn")e ="nd>"ddress of t#e &"rties(. Ins!red indi'id!"$ or &ro&ert. T&e of ins!red ris;2. Co))ence)ent d"te for ins!r"nce "%"inst ris;s-. A)o!nt of co'er"%eF. Ins!r"nce &re)i!)s "nd )et#ods of &")ent

,. Met#ods "nd conditions re$"tin% to t#e notific"tion of occ!rrenceof d")"%e

3. D!r"tion of t#e ins!r"nce contr"ct "nd of t#e ins!r"nce+. Kordin% indic"tin% /#en "n ins!r"nce contr"ct is in'"$id ="nd>

/#en e"c# &"rt $oses or &ossesses t#e ri%#t to ter)in"te t#eins!r"nce contr"ct *efore its e:&ir"tion(1.

Artile /'( Insure" Ris.

Artile /)( O%ligations of the Insure" Person

T#e ins!red &erson #"s t#e o*$i%"tion to<

1. P" ins!r"nce &re)i!)s(. Correct$ disc$ose "$$ f"cts ;no/n to #i) in order to #e$&

"cc!r"te$ "ssess t#e ris;s /#ic# /i$$ *e *orne * t#e ins!rer d!rin% t#e )";in% of t#e ins!r"nce contr"ct

. Disc$ose to t#e ins!rer f"cts /#ic# )" c"!se t#e incre"se of ris; "s &ro'ided in t#e ins!r"nce &o$ic

2. I))edi"te$ notif to t#e ins!rer "$$ $osses or d")"%e /#ic# #"'e *een ins!red "s =s!c# $osses or d")"%e> *eco)e ;no/n "nd /it#in

21 T#e tr"ns$"tors #"'e c#osen to render t#e /ords "s $iter"$$ "s &ossi*$e "nd *e$ie'e t#"t t#ister) )e"ns ?t#e condition !&on /#ic# &"rties )" ter)in"te t#e ins!r"nce contr"ct *efore itse:&ir"tion@.

UNDP Draft Translation – March 2006 1-


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- d"s "t t#e $"test. In c"se of ins!r"nce "%"inst t#eft notific"tion)!st *e %i'en /it#in F #o!rs.

T#e &"rties )" "%ree to e:tend t#e &eriod of s!c# notific"tion in t#econtr"ct. T#e ins!red &erson /i$$ not $ose #is ri%#ts !nder t#e ins!r"nce

contr"ct if #e c"nnot notif =t#e ins!rer> of t#e inc!rred $osses or d")"%e d!eto "ccidents or force )"Ge!re.

Artile /-( Insurane Premiums

If ins!r"nce &re)i!)s "re not &"id in d!e ti)e t#e '"$idit of t#eins!r"nce &o$ic /i$$ *e s!s&ended "fter " &eriod of t/ent d"s fro) t#e d"t#e ins!rer #"s sent " notice of /"rnin% to t#e ins!red.

T#e ins!rer )" ter)in"te t#e ins!r"nce &o$ic or fi$e " c$"i) /it# t#eco!rt re!estin% t#e ins!red to i)&$e)ent t#e contr"ct "fter " &eriod of 10 d"s

fro) t#e d" t#e ins!r"nce &o$ic #"s *een s!s&ended.

T#e &ro'isions of t#is Artic$e do not "&&$ to t#e ins!r"nce &o$icies)"de * ins!r"nce co)&"nies "s sti&!$"ted in &oints 1 "nd of Artic$e 2 of t#is$"/.

Artile //( Conealment or ,alse Delaration

If t#e ins!red conce"$s =infor)"tion> or )";es " f"$se dec$"r"tionres!$tin% in " c#"n%e to t#e o*Gect of t#e ris; or res!$tin% in "n incorrect$ $o/"ssess)ent of t#e ris; * t#e ins!rer => t#e ins!r"nce contr"ct /i$$ *e 'oid.

Artile /0( ,ailure to Ma


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Artile /1( In.ali" *or"ing in an Insurane Poli2

Kordin% in "n ins!r"nce &o$ic /#ic# )";es t#e ins!red &erson $oose#is ri%#ts *ec"!se of 'io$"tions of $"/s "nd re%!$"tions /i$$ *e in'"$id e:ce&t if t#e 'io$"tion of $"/s "nd re%!$"tions &ert"in to cri)es((or =&ert"in> to )"Gor

offences(

/#ic# #"'e *een intention"$$ co))itted.

Cha#ter )Statute of Limitation an" Com#etent Court

Artile /3( Limitation Perio"

A c$"i) re$"tin% to ins!r"nce contr"cts )" t";e &$"ce /it#in e"rsfro) t#e d" t#e e'ent #"s occ!rred.

T#e $i)it"tion &eriod /i$$ *e s!s&ended in "ccord"nce /it# t#e

&ro'isions of Artic$e - of t#e L"/ on Contr"ct or /#ere t#ere "re '"$idre"sons "nd /#ere "n e:&ert #"s *een "ssi%ned to &ro'e t#e tr!t# "fter t#eocc!rrence of d")"%e.

Artile /5( Com#etent Court for the A"?u"iation of Dis#utes

T#e co)&etent co!rt for t#e "dG!dic"tion of dis&!tes *et/een t#eins!red "nd t#e ins!rer is t#e co!rt of t#e &$"ce of do)ici$e of t#e ins!red(2. Int#e c"se of "n ins!r"nce re$"tin% to d")"%e to i))o'"*$e &ro&ert =t#eco)&etent co!rt> /i$$ *e t#e co!rt /#ere s!c# &ro&ert is $oc"ted. In c"se of "nins!r"nce "%"inst "ccidents =t#e co)&etent> co!rt /i$$ *e t#e co!rt /#ere s!c#

"ccident too; &$"ce.

Cha#ter -Insurane Against Damage of Pro#ert

Artile /6( Rules Relating to Insurane In"emnities

An ins!r"nce contr"ct "%"inst d")"%e of &ro&ert is " contr"ct for t#eco)&ens"tion for d")"%e t#ro!%# ins!r"nce inde)nific"tion. T#e ")o!nt of ins!r"nce inde)nities &"id * t#e ins!rer to t#e ins!red )!st not e:ceed t#e'"$!e of t#e ins!red &ro&ert "t t#e ti)e t#e d")"%e occ!rred.

Artile 07( Insurane !hih is Lo!er than the =alue of the Pro#ert2(

K#en d")"%e occ!rs if t#e ins!red &ro&ert is "ssessed to *e #i%#er t#"n t#e '"$!e of t#e ins!r"nce t#e ins!red )!st t";e res&onsi*i$it #i)se$f for t#e e:cess &"rt !n$ess ot#er/ise "%reed !&on in t#e ins!r"nce &o$ic.

22 T#is ter) refers to offenses /#ic# "re &!nis#"*$e /it# i)&rison)ent of " &eriod fro) fi'ee"rs !& to t#e de"t# &en"$t "s defined in Artic$e , of t#e Pen"$ L"/.

23 Re"ders )" /is# to refer to Artic$e , of t#e Pen"$ L"/ for "n !nderst"ndin% of ?)"Gor

offences@.(2

T#e $iter"$ tr"ns$"tion of t#is r"se is ?/#ere #e is@.

UNDP Draft Translation – March 2006 1,


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Artile 0'( Loss of Insure" Pro#ert2

If ins!red &ro&ert is f!$$ $ost d!e to " re"son not )entioned in t#eins!r"nce &o$ic t#e ins!r"nce /i$$ *e ter)in"ted "nd t#e ins!rer )!st ret!rnt#e ins!r"nce &re)i!)s for t#e re)"inin% d!r"tion of t#e ins!r"nce contr"ct to

t#e ins!red.

Artile 0)( Ta


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In "ddition to t#e contents(3 re!ired for )";in% "n ins!r"nce &o$ic of "$$ t&es "n ins!r"nce contr"ct(+ or $ife ins!r"nce &o$ic )!st indic"te t#efo$$o/in% content<

1. N")e "nd s!rn")e d"te of *irt# of one or se'er"$ &ersons /#o

/i$$ recei'e t#e $ife ins!r"nce(. N")e "nd s!rn")e of t#e *enefici"r if "n. "cts or /ordin% %i'in% t#e ri%#t to recei'e ins!r"nce inde)nities2. Circ!)st"nces $e"din% to t#e red!ction of t#e ins!r"nce

inde)nities if "%reed !&on in t#e ins!r"nce contr"ct.

Artile 01( Suii"e an" Mur"er

Life ins!r"nce /i$$ not *e enforce"*$e if t#e ins!red co))its s!icide *!t t#e ins!rer sti$$ #"s to &" to t#e &erson /#o is entit$ed to recei'e=inde)nities> "n ")o!nt e!"$ to t#e ")o!nt in t#e reser'es *"sed on t#e

co)&!t"tion for)!$".

If t#e ins!r"nce &o$ic &ro'ides t#"t t#e ins!rer /i$$ &" ins!r"nceinde)nities to t#e ins!red in c"se t#e ins!red co))its s!icide t#e ins!r"ncecontr"ct /i$$ *e enforce"*$e on$ if t/o e"rs #"'e e$"&sed since t#e ins!r"ncecontr"ct /"s )"de.

T#e ins!r"nce contr"ct /i$$ not *e enforce"*$e if t#e *enefici"r #"sintention"$$ c"!sed t#e de"t# of t#e ins!red.

28

T#is is " $iter"$ tr"ns$"tion. T#e intention is to refer to ?t#ose )"tters t#"t )!st *e [email protected] Artic$e 11 of t#e Contr"ct L"/ for " si)i$"r !se of [email protected]

UNDP Draft Translation – March 2006 1+


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Cha#ter 0

Insurane of Ci.il Lia%ilities

Artile 03( Res#onsi%ilit2 Regar"less of *rong@"oing

T#e &rinci&$es )entioned in P"rt I4 s#"$$ *e "&&$ied to 'icti)s of $"ndtr"ffic "ccidents c"!sed * )otoriHed 'e#ic$es "nd tr"i$ers or se)i tr"i$erse:ce&t for tr"ins t#"t )o'e "$on% t#eir tr"c;s.

T#e 'icti)s )!st recei'e co)&ens"tion for d")"%es inc!rred fro)"ccidents "nd t#e f"!$t =of t#e 'icti)s> )!st not *e " %ro!nd for "'oidin%co)&ens"tion.

T#e 'icti) /i$$ not *e co)&ens"ted for d")"%es inc!rred fro) t#e"ccident if s!c# ='icti)> #"s /i$$in%$ c"!sed t#e "ccident /#ic# c"!sed t#ed")"%es.

Artile 05( Com#ensation for Damage

T#e ins!rer t#"t ins!res $"nd )otoriHed 'e#ic$es )!st )";e "n offer to &" ins!r"nce inde)nities to t#e 'icti) not $"ter t#"n si: )ont#s fro) t#e d"of t#e "ccident.

If t#e 'icti) is inG!red or de"d so)e of t#e ins!r"nce inde)nities )!st *e re)itted to t#e s&o!se "s necess"r. If t#e s&o!se is dece"sed =s!c#co)&ens"tion> )!st *e re)itted to t#e $e%"$ #eirs /it#in t#irt d"s "t t#e$"test.

T#e ins!r"nce inde)nities to *e re)itted to t#e 'icti)s )" *eesti)"ted if /it#in t#e &eriod of t#ree )ont#s fro) t#e d" t#e "ccident too;

&$"ce t#e ins!rer is sti$$ !n"*$e to ;no/ /#et#er t#e 'icti)s #"'e ret!rned tot#eir nor)"$ st"te or not.

Artile 06( =ehile Insurane

Indi'id!"$s or $e%"$ entities !sin% )otoriHed $"nd 'e#ic$es "nd tr"i$ers or se)i8tr"i$ers in t#e tr"ffic )!st ins!re t#eir 'e#ic$es.

T#e sco&e of ins!r"nce )et#od of doc!)ent"tion "nd t#e '"$!e of t#e!se of certific"tes for t#e &!r&ose of )onitorin% 'e#ic$e ins!r"nce "re sti&!$"tedin t#e Decree of t#e Co!nci$ of Ministers.

Artile 17( ,orfeiture of Rights "ue to Into9iation

In c"ses of "n "ccident /#ere t#e ins!red dro'e " 'e#ic$e !nder t#einf$!ence of "$co#o$ or dr!%s to t#e e:tent t#"t #e /"s !n"*$e to contro$ t#e'e#ic$e t#e /ordin% of t#e contr"ct &ro'idin% for t#e ins!r"nce of t#e ins!red/i$$ *e 'oid e'en if t#e ins!r"nce contr"ct #"s not sti&!$"ted t#e forfeit!re of ri%#ts d!e to dr!n;enness or =!se> of n"rcotics.

Artile 1'( Issuane an" Remittane of Insurane Certifiates

UNDP Draft Translation – March 2006 (0


22/24

Ins!r"nce co)&"nies )!st iss!e ins!r"nce certific"tes to ins!red &ersons for e"c# 'e#ic$e /it#o!t c#"r%e.

T";in% o!t ins!r"nce "nd t#e iss!in% of ins!r"nce certific"tes )" t";e &$"ce on$ if t#e !ser of t#e 'e#ic$e #"s &resented " 'e#ic$e tec#nic"$ ins&ection

certific"te to t#e ins!r"nce co)&"n => e:ce&t for 'e#ic$es t#"t "re not re!iredto #"'e tec#nic"$ ins&ection.

Ins!r"nce certific"tes )!st *e ;e&t /it# t#e dri'er or dis&$"ed in "ne"si$ 'isi*$e "re" of t#e 'e#ic$e.

PART =Measures against Offen"ers

Artile 1)( Unauthorise" Con"ut of Insurane Business

A &erson /#o #"s )"de "n offer to t#e &!*$ic for t#e &!r&ose of se$$in%0 ins!r"nce or /#o #"s si%ned ins!r"nce contr"cts on *e#"$f of "nins!r"nce co)&"n /#ic# is not incor&or"ted or /#ic# #"s s!*)itted "n"&&$ic"tion to est"*$is# =" *!siness> *!t #"s not et *een offici"$$ "!t#orised tocond!ct ins!r"nce *!siness /i$$ *e s!*Gect to " fine of -00000 IP to1000000 IP.

A &erson /#o #"s )"de "n offer to t#e &!*$ic for t#e &!r&ose of se$$in%ins!r"nce or /#o #"s si%ned ins!r"nce contr"cts re$"tin% to " t&e of ins!r"ncet#e cond!ct of /#ic# #"s not et *een offici"$$ "!t#orised /i$$ *e s!*Gect to "fine of 00000 IP to -00000 IP.

A &erson "ctin% "s "n ins!r"nce inter)edi"r "nd /#o c$"i)s t#"t #e #"s *een "ssi%ned direct$ * "n ins!r"nce co)&"n /#ic# #"s t#e ri%#t to cond!ctins!r"nce *!siness in "ccord"nce /it# t#e $"/ /i$$ *e s!*Gect to " fine of -0000 IP to 100000 IP.1

A &erson /#o #"s "ssi%ned t#e "*o'e ins!r"nce /or; to *e &erfor)ed * ot#ers ;no/in% t#"t #e #i)se$f does not #"'e t#e ri%#ts "nd d!ties =to doso> /i$$ *e s!*Gect to " fine of -00000 IP to 1000000 IP.

If t#e "*o'e "cts cont"in e$e)ents of offences =s!c# offenses> /i$$ *e

&en"$iHed !nder t#e Pen"$ L"/.

30 T#e $iter"$ /ord is ?)";in% so)e*od t";e@.

1

T#e i)&$ic"tion in t#e ori%in"$ L"o te:t is t#"t t#e &erson c$"i)in% to *e "n ins!r"nceinter)edi"r #"s not "ct!"$$ *een "!t#orised "s one.

UNDP Draft Translation – March 2006 (1


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Artile 1-( =iolation of Rules Relating to Stan"ar"s an" Restrition of

Interests

A &erson /#o #"s 'io$"ted t#e r!$es of Artic$e 12 "nd Artic$e 1- of t#is$"/ s#"$$ *e s!*Gect to " fine of -00000 IP to 1000000 IP.

Artile 1/( Presentation an" Dissemination of ,alse Douments

T#e st"ff )e)*er of "n ins!r"nce co)&"n or ins!r"nce inter)edi"r/#o #"s &resented f"$se doc!)ents to t#e Ministr of Econo) P$"nnin% "ndin"nce or ot#er re$e'"nt St"te or%"nis"tions or /#o #"s &resented "nddisse)in"ted s!c# f"$se doc!)ents to t#e &!*$ic /i$$ *e s!*Gect to " fine of 100000 IP to -00000 IP.

Artile 10( ,ailure to Su##l2 Douments

An ins!r"nce co)&"n t#"t does not s!&&$ doc!)ents or for)s "ssti&!$"ted in t#is $"/ /i$$ *e s!*Gect to " fine of -0000 IP to 100000 IP.

Artile 11( =iolation of the Com#an2’s Regulations an" ,inanial Regime

A$$ 'io$"tions of t#e co)&"n’s re%!$"tions "nd t#e re%!$"tionsre%"rdin% tec#nic"$ reser'es = > s"'in%s de&osits of "ssets "nd "*i$it to sett$ede*ts /i$$ *e s!*Gect to " fine *et/een -00000 IP to (00000000 IP =.> Inc"ses of re&e"ted offenses /it#dr"/"$ of *!siness $icense s#"$$ *e considered.

Artile 13( =iolation of Rules Pertaining to Interme"iaries

A &erson /#o #"s 'io$"ted t#e &ro'isions of Artic$es (- (F "nd (, of t#is $"/ s#"$$ *e s!*Gect to " fine of (0000 IP to 100000 IP.

Artile 15( =iolations of Rules Pertaining to =ehile Insurane

An indi'id!"$ or $e%"$ entit /#ic# #"s 'io$"ted t#e &ro'isions of Artic$e-+ of t#is $"/ /i$$ *e s!*Gect to " fine of 000 IP to 0000 IP.

UNDP Draft Translation – March 2006 ((


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PART =I

,inal Pro.isions

Artile 16( Im#lementation

T#e Co!nci$ of Ministers of t#e L"o Peo&$e9s De)ocr"tic Re&!*$ic s#"$$iss!e re%!$"tions for t#e i)&$e)ent"tion of t#is $"/.

4ienti"ne 13 Dece)*er 1++0T#e C#"ir)"n of t#e Peo&$e’sS!&re)e Asse)*$

[Seal and Signature]

No!#"; P6OUMSA4A6N

Documents

Insurance Law of Laos