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 (5) Remuneration to administrators and other expenses in connection with the administration shall be paid by the administration estate. The size of the remuneration shall be fixed after negotiations with the Danish FSA. (6) The administration estate shall be subject to supervision by the Danish FSA. 254.-(1) At the beginning of the administration, the registered assets mentioned in section 167(1) shall be transferred immediately to the administration estate. The administration estate represented by the administrator shall be entitled to have full charge of said assets. With regard to investment securities, this shall be registered at a central securities depository and, with regard to real property, in the Land Register. (2) If a life-assurance company is declared bankrupt, the bankruptcy court shall immediately transfer the assets mentioned in subsection (1) to the administrator. (3) The administrator shall have the registered assets valued in accordance with the current regulations regarding measurement. (4) The individual insured parties may not make claims against the company. On the other hand, the administrator may, on behalf of the administration estate, request from the company the amount remaining according to the valuation of the assets taken over, cf. subsection (3), in order to cover the insurance provisions and claims reported and claims due according to the calculation mentioned in section 256. In addition, the administrator may, on behalf of the administration estate, request an amount corresponding to the company's capital requirement calculated at the commencement of the administration estate. (5) If a life-assurance company is declared bankrupt after the commencement of the administration, said bankruptcy shall have no effect for the administration estate. (6) The administrator shall manage the assets received from the company, and may require from the company all material necessary for the administration, possibly with the assistance of a sheriff. 255. When the portfolio of insurance contracts has been placed under administration, surrender of insurance contracts may not take place. However, the surrender value may be partly or fully used to cover the policy loans mentioned in section 162(1), no. 7. 256.-(1) The administrator shall calculate the insurance provisions and determine the size of the claims reported and the claims due under the insurance contracts at the commencement of the administration. (2) Insurance claims that were due or reported before the commencement of the administration shall be determined according to the regulations in force before that date. Insurance contracts that fall due at a later time shall, in the first instance, only be paid by an amount that the administrator deems appropriate under the circumstances. If the final determination of the insurance amounts, cf. subsection (4), shows that, in this way, too much has been paid, repayment shall not be possible. EXCLUDING MINOR AMENDMENTS (3) The insurance provisions shall be calculated using the calculation basis reported for the company, cf. section 20, unless the administrator deems it necessary to determine another calculation basis, which shall then be reported to the Danish FSA.
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 (4) The determination of the insurance amounts, including any reduction, cf. section 257(1), 4th clause or 259(1), 1st clause, shall be carried out in accordance with the calculation basis under subsection (3) and after a distribution of the company's assets that is deemed fair in the individual case in consideration of the conditions in the portfolio of insurance contracts, including the content of the insurance contracts. 257.-(1) The administrator shall, as soon as possible after the assessment and calculation under section 254(3) and 256 has taken place, attempt to transfer the entire portfolio of insurance contracts to one or more insurance companies. If an offer of such transfer is received, the administrator shall submit an application to the Minister for Economic and Business Affairs regarding said transfer. The application regarding transfer shall be accompanied by the composition agreed upon by the administration estate and the company taking over, and by any information regarding said company that the Minister for Economic and Business Affairs deems necessary to be able to assess whether the transfer is appropriate in the interests of the policyholders. If such composition results in a reduction in the insurance amounts or a change in the policy terms, including the bonus provision, this shall be indicated. (2) Unless the Minister for Economic and Business Affairs, on the existing basis, finds that a license for transfer should be denied, the Danish FSA shall make public in the Danish Official Gazette and in daily newspapers a report regarding the planned transfer. 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. The transfer cannot be cited as a basis for cancelling the insurance contract. (4) If the transfer has taken place in such a way that not all the assets of the administration estate have been included, the administrator shall surrender the excess amount to the company or its estate. 258.-(1) If the portfolio of insurance contracts cannot be transferred in accordance with section 257, the administrator shall carry out the final determination of the insurance amounts in accordance with the calculations made as well as any changes in the policy terms including bonus provisions, and the administrator shall also convene a general meeting of the policyholders in order to establish a mutual company formed by the administration estate, cf. section 23 and section 3 of the Public Companies Act. Two months' notice shall be given of said general meeting. Such notice convening a general meeting and a report on the contents of the company formation document and the administrator's calculated determination of the insurance amounts shall be made public in the way mentioned in section 257(2). (2) At the time of registration, the mutual company shall be subrogated to the right against the former company mentioned in section 254(4). EXCLUDING MINOR AMENDMENTS (3) If a new company cannot be formed, the administration shall continue, and the administrator shall decide whether a further attempt to transfer the insurance contracts to a new or another company is to be made.
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