Modify the insurance business law

Article 1. The scope of application of
This Decree detailing implementation of some articles of the law on amendments and supplements to some articles of the law on insurance business and amending and supplementing a number of articles of Decree No. 45/2007/ND-CP dated 27 March 2007 year of government regulation in detail the implementation of some articles of the law on insurance business (hereinafter referred to as the Decree 45/2007/ND-CP).

Article 2. Applicable objects

This Decree shall apply to the insurance operations (including operations provide insurance services and insurance brokerage services over the border in Vietnam), reinsurance business, insurance and brokerage activities operate agents the insurance.

This Decree does not apply to social insurance, health insurance, deposit insurance and other insurance types due to non-performing State business.

Chapter 2.
SPECIFIC PROVISIONS

ITEM 1. TO PROVIDE AND USE CROSS-BORDER INSURANCE SERVICES

Article 3. The object providing and using the services of insurance, insurance brokers across the border

The object of insurance service providers, insurance brokers across the border (hereinafter called insurance services provided across borders) is business insurance, business insurance brokers based in foreign countries that Vietnam and countries has signed international treaties on trade that have agreed to offer insurance services over the border in Vietnam.

2. Object using insurance services provided across borders is an enterprise founded in Vietnam are owned by foreign investors on the 49% of the capital and foreigners working in Vietnam.

3. The services of re-insurance, marine insurance, aviation insurance, international reinsurance brokerage, consulting services, service calculations, risk assessment and compensation made according to the provisions of current legislation and information the international rate.

4. Life insurance and health insurance do not apply the rules on the provision and use of cross-border insurance services in this Decree.

Article 4. The conditions of offering cross-border insurance services

The insurer, the insurance broker business abroad provide service coverage over the border in Vietnam must meet the following conditions:
The General conditions:

a) Has a license of the State administration of foreign insurance businesses where the main headquarters for permission to perform the expected insurance services provided across the border in Vietnam and prove active legal business at least 10 in the provision of insurance services over the border in Vietnam;

b) has the text of the State administration of foreign insurance businesses where the main headquarters for permission to provide cross-border insurance services in Vietnam and confirmed not to violate the rules of the insurance operations brokerage, insurance and other legal regulations of foreign countries within 3 years continuously before providing insurance services over the border in Vietnam.
2. The conditions of financial capacity:

a) Has a minimum total assets equivalent to 2 billion u.s. dollars for foreign insurance business; a minimum of the equivalent of 100 million us dollars for business foreign insurance broker in previous financial years provide insurance services over the border in Vietnam;

b) foreign insurance business is rated BBB + by Standard Minimum & poor’s or Fitch, B ++ by A.M. Best, Baa1 by Moody’s or equivalent rating results of institutions that function, experience rated at in previous financial years provide cross-border insurance services in Vietnam;

c) business activities with interest in 3 years continuous previous financial years provide insurance services over the border in Vietnam.
3. The conditions of possibility of losses:

a) foreign insurance businesses must deposit 100 billion bank in Vietnam being licensed and operating in Vietnam and has the letter of guarantee of payment by the Bank that the payment commitment in case the responsibility of the insurance provided over the border in Vietnam exceeds required margin.

Funds can only be used to meet the commitments for the parties insured when the insurer takes foreign liquidity according to the decision of the competent State agencies where foreign businesses are located. Deposit interest rate enjoyed by agreement with the bank where the escrow. Foreign insurers are withdrawing the entire deposit upon the termination of liability for the contract to provide insurance services over the border in Vietnam;

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