Financial Business Act.pdf

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While this translation was carried out by a professional translation agency, the text is to be regarded as an unofficial translation based on the latest official Consolidated Act no. 286 of 4 April 2006. Only the Danish document has legal validity. October 2006, GlobalDenmark Translations 249.-(1) The Danish FSA shall order that a life-assurance company take the steps necessary within a time limit specified by the Danish FSA, if 1) the company does not comply with this Act, 2) the company deviates from the basis of its activities, 3) the basis mentioned in no. 2 or the way in which the company's funds are placed is not adequate, 4) it appears that the funds allocated for coverage of insurance provisions are not adequate, or 5) the company's financial position has deteriorated to such a degree that the interests of the insured parties are at risk. (2) If the measures ordered have not been implemented within the time limit laid down under subsection (1), and it is deemed that the omission could cause risk for the insured parties, the portfolio of insurance contracts of the company may be placed under administration in accordance with sections 253-258. (3) A portfolio of insurance contracts shall be placed under administration if it appears that it is not possible to obtain the funds necessary to cover the insurance provisions before the time limit laid down under subsection (1). (4) If a company enters into liquidation, the Danish FSA may decide that the portfolio of insurance contracts of the company is to be placed under administration. (5) If the Danish FSA finds that, when the portfolio of insurance contracts has been placed under administration, it is also necessary to dissolve the company, the Danish FSA shall make such decision. 250.-(1) The Danish FSA shall order an insurance company not carrying out life-assurance business to take the measures necessary within a time limit specified by the Danish FSA, if 1) the company has not allocated sufficient funds to cover its insurance liabilities, 2) the Danish FSA does not deem the way in which the company's funds are placed adequate, or 3) the company does not comply with this Act. (2) If the measures ordered have not been implemented within the time limit laid down, and it is deemed that the omission could cause risk for the insured parties, the Danish FSA may decide that the company shall enter into liquidation. If the company carries out industrial injury insurance business, the Danish FSA may withdraw said company's license to carry out industrial injury insurance business, and after such withdrawal the portfolio of insurance contracts shall be placed under administration by the National Board of Industrial Injuries under section 54 in the Workers' Compensation Act. 251. The Danish FSA may, in connection with the measures mentioned in sections 248(3), 249(1) and 250(1), prohibit or limit said company from having full charge of its assets. Section 167 shall apply correspondingly. EXCLUDING MINOR AMENDMENTS 252.-(1) The Danish FSA shall, as soon as possible after the liquidation under section 250 has entered into effect, in consultation with the liquidators, implement an investigation of whether it would be appropriate to attempt to transfer the portfolio of insurance contracts fully or partly
While this translation was carried out by a professional translation agency, the text is to be regarded as an unofficial translation based on the latest official Consolidated Act no. 286 of 4 April 2006. Only the Danish document has legal validity. October 2006, GlobalDenmark Translations to one or more insurance companies. If an offer of such transfer is received, the Danish FSA shall, if it finds the offer acceptable, have prepared a report regarding such transfer as well as a draft agreement with the relevant company. (2) The report and draft shall be published in the Danish Official Gazette and in daily newspapers. The report shall include an appeal to the policyholders to notify the Danish FSA in writing if they have any objections to the transfer within a time limit stipulated by the Danish FSA which is no shorter than one month. The company shall, at the same time, forward the report and draft to those policyholders whose address is known to said company. (3) After expiry of the time limit mentioned in subsection (2), the Minister for Economic and Business Affairs shall, under consideration of the objections made, decide whether the portfolio of insurance contracts may be transferred in accordance with the proposal made. (4) The Danish FSA may, in connection with the report made and after negotiations with the company taking over, decide whether insurance contracts arranged for periods of more than 1 year, are to be terminable by both parties according to the provisions that would have been in force if the multi-year period of the agreement had expired. Provisions regarding such access to termination shall be indicated in the report from the Danish FSA. (5) Section 27(2) in the ”lov om forsikringsaftaler” (act on insurance contracts) shall apply correspondingly until the Minister for Economic and Business Affairs has made a decision under subsection (3). If a transfer takes place in accordance with such decision by the Minister for Economic and Business Affairs, the liquidation and the transfer cannot, irrespective of sections 26 and 27 of the ”lov om forsikringsaftaler” (act on insurance contracts) be cited as a basis for cancelling the insurance contract. Special regulations for insurance companies regarding administration of a portfolio of lifeassurance contracts 253.-(1) If the Danish FSA decides that the portfolio of insurance contracts of a life-assurance company is to be placed under administration under section 224(1), no. 1 and 2 and (4); section 226(3) and (4); section 234(5) or section 249, the Danish FSA shall at the same time appoint an administrator to administer the portfolio of insurance contracts in cooperation with any co-administrators. (2) When a portfolio of insurance contracts is placed under administration, the Danish FSA shall withdraw the license of said life-assurance company, and arrange for the decisions regarding the implementation of said administration, regarding appointment of administrators, and regarding the withdrawal of the license to be registered at the Danish Commerce and Companies Agency. (3) In order to ensure proper attendance to the administration, the administrator may appoint one or more co-administrators with knowledge of relevant conditions for the administration. Section 108 shall apply correspondingly to administration estates. EXCLUDING MINOR AMENDMENTS (4) Expenses that, under tax legislation, rest upon the administration estate consisting of the insured parties, shall be paid by the administration estate through the administrator.
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Financial Business Act.pdf

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