National IMPLEMENTING MEASURES (IM) related to the specific General Protocol requirement*

Transcription

1 National IMPLEMENTING MEASURES (IM) related to the specific General Protocol requirement* Authority: The Insurance Supervisory Commission of the Republic of Lithuania Article 23 of the Methodology for Peer Review: National implementing measures may include laws (i.e. acts of Parliament) and regulations (i.e. decrees of ministries or rule books of CEIOPS Members), guidelines and circulars of CEIOPS Members (provided that non-compliance with these guidelines and circulars should trigger enforcement action by the CEIOPS Member concerned), rules of self-regulatory organisations, such as industry associations (where applied by a significant part of the industry in a specific Member State and provided that non-compliance with those rules triggers enforcement action by the self-regulatory organisation concerned or by the CEIOPS Member), and relevant case law. Internal procedures followed by CEIOPS Members that do not trigger enforcement action are also classified as implementing measures for these purposes. (*Only national measures issued in implementation of General Protocol, not the measures implementing the Directives) I. Relevant regulation/procedures (general source): Date Title LINK The Law on insurance atymas.php 18 September March June August January 2008 Resolutions of Lithuanian Insurance Supervisory Commission The Law on Insurance No. IX-1737 Amendment of Articles 2, 16, 20, 22, 55 2 of Law on Insurance according to 2007/44/EC directive No. XI-200 Law on Public Administration of the Respublic of Lithuania No. VIII-1234 The Resolution of the Government of the Republic of Lithuania on Approval of rules for public administration institutions for maintaining and examination of persons applications No. 875 The ISC Resolution No. N-7 of 22 January 2008 New edition of ISC Resolution No. N-107 (7 September 2004) On approval of the content and the form of the business plan, and the mai.phtml ymas.php aieska.showdoc_l?p_id=340366&p _query=&p_tr2= (only in Lithuanian) (No translation) aieska.showdoc_l?p_id=347214&p _query=&p_tr2= (No translation) aieska.showdoc_l?p_id= (No translation) aieska.showdoc_l?p_id=313698&p _query=&p_tr2= 1

2 6 April January January 2008 on 29 January May January January 2008 procedure for submission of the business plan by an insurance company or a subsidiary of a foreign insurance company operating in the Republic of Lithuania The ISC Resolution on Adoption of the procedure for the pursuit of the activities of legal expenses insurance No. N- 36 The ISC Resolution on The Approval of the Order on Conduct of On-site inspections No. N-29 The ISC Resolution No. N-13 New edition of Resolution No. N-40 (13 April 2004) On the approval of methods of calculation of the solvency margin The ISC Resolution No. N-16 on The Approval of The Procedure for Issuance of Authorisations to Reorganise, Restructure and Liquidate The Insurance Undertaking or Reinsurance Undertaking, to Terminate Activities of Branches of Non-Member-Country Insurance Undertakings or Reinsurance Undertakings, or to Make an Influence by The Reorganisation of The Non- Member-Country Insurance Undertaking or Reinsurance Undertaking on The Rights And Duties of Insurers and Other Persons of The Branch in The Republic of Lithuania (in the questionnaire resolution on reorganisation) The ISC Resolution No. N-59 on The Approval of The Procedure for Issuance of Authorisations to Transfer Rights and Obligations Under Insurance Contracts The ISC Resolution No. N-11 on The Approval of The Procedure for Issuance the Authorisations to Transfer Rights and Obligations Under Reinsurance Contracts The ISC Resolution No. N-10 on the Approval of the Rules for The Issuance the Authorisations to Engage in The Activity of a Branch of a Non-Member Country Insurance Undertaking tarimas_2004_n36.doc (No translation) aieska.showdoc_l?p_id= (No translation) 008/dpk_nutarimas_2008_n13.doc aieska.showdoc_l?p_id=314272&p _query=&p_tr2= tarimas_2004_n59.doc (No translation) aieska.showdoc_l?p_id=314123&p _query=&p_tr2= aieska.showdoc_l?p_id=314122&p _query=&p_tr2= (No translation) 2

3 II. Detailed overview of IM/ question: Part II Question Implementing Measures Nr 1 Law on Insurance, Art 16, Para 1(1): the ISC must consult competent authorities of another EU Member State about the circumstances significant for issuing the license for insurance activity, where the insurance undertaking is a subsidiary of an insurance undertaking of any other European Union Member State. According to Para 28 (6) of Art. 2 of the Law on Insurance, an undertaking which, is a subsidiary of a subsidiary, shall be considered a subsidiary of the parent undertaking whose subsidiary has a subsidiary (thus, the ISC could ask the CA of the ultimate EU parent undertaking as well as the CA of the direct parent undertaking for relevant information- according to General protocol). 3 a) Law on Insurance, Art 16, Para 3: the ISC must provide to other authority institutions the information about these persons necessary for the purposes of the functions performed of the above-mentioned authorities (competent authorities of another Member State of the European Union) b) Law on Public Administration, Art 14 foresees that all applications are delt according to the Rules set by the Government of the Republic of Lithuania. These Rules are adopted with Resolution No. 875 on 22 August Art. 30 states that application should be delt within 20 workdays from its receipt. Art 31 foresees that due to objective reasons terms may be extended for 10 workdays. A person must be informed about the extension of the procedure and the reasons of that. 4 Law on Insurance, Art 16, Para 1(2): the ISC must consult competent authorities of another Member State of the European Union about the circumstances significant for issuing the license for insurance activity, where the insurance undertaking is a subsidiary of the parent undertaking of an insurance undertaking of any other European Union Member State. 6 a) Law on Insurance, Art 16, Para 3: the ISC must provide to other authority institutions the information about these persons necessary for the purposes of the functions performed of the above-mentioned authorities (competent authorities of another Member State of the European Union) b) Law on Public Administration, Art 14 foresees that all applications are delt according to the Rules set by the Government of the Republic of Lithuania. These Rules are adopted with Resolution No. 875 on 22 August Art. 30 states that application should be delt within 20 workdays from its receipt. Art 31 foresees that due to objective reasons terms may be extended for 10 workdays. A person must be informed about the extension of the procedure and the reasons of that. 7 Law on Insurance, Art 16, Para 1(3): the ISC must consult competent authorities of another Member State of the European Union about the circumstances significant for issuing the license for insurance activity, where the insurance undertaking is under the control of the same person who controls the insurance undertaking of any other European Union Member State. 3

4 9 a) Law on Insurance, Art 16, Para 3: the ISC must provide to other authority institutions the information about these persons necessary for the purposes of the functions performed of the above-mentioned authorities (competent authorities of another Member State of the European Union) b) Law on Public Administration, Art 14 foresees that all applications are delt according to the Rules set by the Government of the Republic of Lithuania. These Rules are adopted with Resolution No. 875 on 22 August Art. 30 states that application should be delt within 20 workdays from its receipt. Art 31 foresees that due to objective reasons terms may be extended for 10 workdays. A person must be informed about the extension of the procedure and the reasons of that. 10 Law on Insurance, Art. 16, Para 2 (1): Prior to issuance of the license for insurance activity, the Supervisory Commission must consult the Bank of Lithuania and the Securities Commission about the circumstances significant for issuing the license for insurance activity, where the undertaking isa subsidiary of a credit institution or a financial broker of a Member State of the European Union. Law on insurance Art. 196, para 2: ISC have the right to address competent authorities, financial and capital market supervision institutions with the request to present information for implementation of its functions. 12 Law on Insurance, Art. 16, Para 2 (2): Prior to issuance of the license for insurance activity, the Supervisory Commission must consult the Bank of Lithuania and the Securities Commission about the circumstances significant for issuing the license for insurance activity, where the undertaking is a subsidiary of the parent undertaking of a credit institution or a financial broker of a Member State of the European Union. Law on insurance Art. 196, para 2: ISC have the right to address competent authorities, financial and capital market supervision institutions with the request to present information for implementation of its functions. 14 Law on Insurance, Art. 16, Para 2 (3): Prior to issuance of the license for insurance activity, the Supervisory Commission must consult the Bank of Lithuania and the Securities Commission about the circumstances significant for issuing the license for insurance activity, where the undertaking is under the control of the same person who controls the credit institution or the financial broker of any other Member State of the European Union. Law on insurance Art. 196, para 2: ISC have the right to address competent authorities, financial and capital market supervision institutions with the request to present information for implementation of its functions. 16 a) Law on insurance Art. 16, Para 3: In evaluating the good repute of the persons controlling the insurance undertaking as well as the good repute, professional qualifications and experience of the members of its supervisory and management bodies, ISC shall consult the CA of other MS. 17 a) Law on Insurance, Art 16, Para 3: the ISC must provide to other authority institutions the information about these persons necessary for the purposes of the functions performed of the above-mentioned authorities (competent authorities of another Member State of the European Union) 4

5 b) Law on Public Administration, Art 14 foresees that all applications are delt according to the Rules set by the Government of the Republic of Lithuania. These Rules are adopted with Resolution No. 875 on 22 August Art. 30 states that application should be delt within 20 workdays from its receipt. Art 31 foresees that due to objective reasons terms may be extended for 10 workdays. A person must be informed about the extension of the procedure and the reasons of that. 18 Law on Insurance, Art 16, Para 3: the ISC must provide to other authority institutions the information about these persons necessary for the purposes of the functions performed of the above-mentioned authorities (competent authorities of another Member State of the European Union) 19 a) Law on Insurance, Art 16, Para 3: the ISC must provide to other authority institutions the information about these persons necessary for the purposes of the functions performed of the above-mentioned authorities (competent authorities of another Member State of the European Union) 21 b) Law on Insurance, Art 16, Para 3: the ISC must provide to other authority institutions the information about these persons necessary for the purposes of the functions performed of the above-mentioned authorities (competent authorities of another Member State of the European Union) c) Law on Insurance, Art 16, Para 3: the ISC must provide to other authority institutions the information about these persons necessary for the purposes of the functions performed of the above-mentioned authorities (competent authorities of another Member State of the European Union) a) Law on Insurance, Art. 22, Para 15: The ISC when consulting under Para 14 of this Article with the Bank of Lithuania, the Securities Commission, the competent authority of the other EU Member State in sector concerned shall ask for all information which is essential or relevant for the assessment and provides, without undue delay, with the information requested by the institutions mentioned above as well as with all the other information on its own initiative. (The institutions mentioned in Para 14 of the Article are the Bank of Lithuania, the Securities Commission and the competent authority of the other EU Member State) b) Law on Insurance, Art. 22, Para 15: The ISC when consulting under Para 14 of this Article with the Bank of Lithuania, the Securities Commission, the competent authority of the other EU Member State in sector concerned shall ask for all information which is essential or relevant for the assessment and provides, without undue delay, with the information requested by the institutions mentioned above as well as with all the other information on its own initiative. (The institutions mentioned in Para 14 of the Article are the Bank of Lithuania, the Securities Commission and the competent authority of the other EU Member State) c) Law on Insurance, Art. 22, Para 15: The ISC when consulting under Para 14 of this Article with the Bank of Lithuania, the Securities Commission, the competent authority of the other EU Member State in sector concerned shall ask for all information which is essential or relevant for the assessment and provides, without undue delay, with the information requested by the institutions mentioned above as well as with all the other information on its own initiative. (The institutions mentioned in Para 14 of the Article are the Bank of 5

6 Lithuania, the Securities Commission and the competent authority of the other EU Member State) 22 a) Law on Insurance, Art. 22, Para 15: The ISC when consulting under Para 14 of this Article with the Bank of Lithuania, the Securities Commission, the competent authority of the other EU Member State in sector concerned shall ask for all information which is essential or relevant for the assessment and provides, without undue delay, with the information requested by the institutions mentioned above as well as with all the other information on its own initiative. (The institutions mentioned in Para 14 of the Article are the Bank of Lithuania, the Securities Commission and the competent authority of the other EU Member State) b) Law on Insurance, Art. 22, Para 15: The ISC when consulting under Para 14 of this Article with the Bank of Lithuania, the Securities Commission, the competent authority of the other EU Member State in sector concerned shall ask for all information which is essential or relevant for the assessment and provides, without undue delay, with the information requested by the institutions mentioned above as well as with all the other information on its own initiative. (The institutions mentioned in Para 14 of the Article are the Bank of Lithuania, the Securities Commission and the competent authority of the other EU Member State) c) Law on Insurance, Art. 22, Para 15: The ISC when consulting under Para 14 of this Article with the Bank of Lithuania, the Securities Commission, the competent authority of the other EU Member State in sector concerned shall ask for all information which is essential or relevant for the assessment and provides, without undue delay, with the information requested by the institutions mentioned above as well as with all the other information on its own initiative. (The institutions mentioned in Para 14 of the Article are the Bank of Lithuania, the Securities Commission and the competent authority of the other EU Member State) Part III 23 Article 54 of the Law on Insurance foresees the procedure for Establishment of a Branch of an Insurance Undertaking in Another European Union Member State and information which sould be sent to Host CA. a) Article 54. Para 1 (2) of Law on Insurance states that an insurance undertaking intending to establish a branch must submit to Insurance Supervisory Commission a scheme of operations. b) Article 10.8 of ISC Resolution No. N-7 ( ) forsees all relevant information for establishment of the branch, including classes of insurance. 6

7 24 c) Article 54 Para 3 indicates information to be provided to Host CA. This information if not written in the notification letter, could always be found in the Certificate of Solvency (in the required form of the General Protocol). d) Article 54, Para 1 (3) foresees that IU should provide the address of the branch office to which and at which correspondence may be sent and received and a confirmation that any correspondence addressed to the head of the branch of the insurance undertaking may be sent to the indicated address. e) Article 54, Para 1 (4) states that IU should submit documents attesting that the insurance undertaking has appointed a person of good repute, having adequate professional qualifications and experience in the field of insurance to act as the branch s head duly empowered to establish rights and obligations for the insurance undertaking which has founded the branch in another European Union Member State, to represent the undertaking in the court at other government and administration institutions of that Member State when dealing with respect to third parties. f) The requirement to provide documents attesting that the insurance undertaking is a member of the Insurers Bureau and the guarantee reserve of that European Union Member State is foreseen in Para 1 (5), Article 54 of Law on Insurance. g) The Resolution No. N- 36 of the Insruance Supervisory Commission adopted on 6 April 2004 foresees that IU pursuing the activities of legal expenses insurance must choose at least on of the options referred in question 23 g) h) Article 54, Para 3 foresees that Insurance Supervisory Commission must provide a proof that the insurance undertaking meets the solvency margin requirements together with whole notification file to Host CA 1. Article 54, Para 3 foresees that notification must be sent within three months. 2. If such case occurs, we will follow the provisions of the General 25 Law on Insurance Article 58, Para 1 states that Insurance Supervisory Commission informs about general good conditions applicable to the activities branch According to Article 54, Para 3 of Law on Insurance the Insurance Supervisory Commission should inform insurance undertaking on the same day that notification is sent to Host CA. 2. Article 54, Para 6 of Law on Insurance determines terms when the activity may be commenced. 1. Article 58, Para 1 states that Home CA sends information and documents of the IU intending to establish the branch which the authority must provide to the Insurance Supervisory Commission in accordance with the legal acts of that Member State. 2. We follow the provisions of General 1. Article 58, Para 1 states that Insurance Supervisory Commission within two months informs about general good conditions applicable to the activities branch. 2. This requirement is met following the provisions of General 7

8 29 a) Main features of procedures are described in Article 54 of Law on Insurance (Establishment of a Branch of an Insurance Undertaking in Another European Union Member State) b) Main features of procedures are described in Article 58 of Law on Insurance (Branches of Insurance Undertakings of Other European Union Member States) 30 The requirement to notify at least one month in advance of any planned is envisaged in Article 54 Para 7 of Law on Insurance. If not opposed, Insurance Supervisory Commission should send notification concerning changes within one month upon the receipt of relevant documents and information This requirement is met following the provisions of General 2. This requirement is met following the provisions of General Article 54 para 7: ISC should be informed about intention to make the changes of information notified. Article 19 Para 3 of Law on Insurance foresees that The Insurance Supervisory Commission shall notify other competent authorities of the other European Union Member States about its decision to withdraw the licence for insurance activity; Article 41 Para 3 foresees that If it is intended to transfer rights and obligations under insurance contracts of a branch of an undertaking in an European Union Member State concluded when exercising the right of establishment or the right to provide services, the Insurance Supervisory Commission must obtain an opinion from a competent authority of the host country about the transfer of rights and obligations. 2. This requirement is met following the provisions of General 33 We follow the provisions of General Protocol and Article 53 of Law on Insurance. a) Article 53 Para 2(3) Law on Insurance states that ISC must provide information concerning the risks to be covered by way of FOS in Host MS. b) Article 53 Para 2 (2) Law on Insurance indicates information which sould be sent to Host CA. c) Article 53 Para 2 (2) Law on Insurance indicates information which sould be sent to Host CA. d) This requirement is met following the provisions of General e) Article 53 Para 2 (1) Law on Insurance indicates information which sould be sent to Host CA. f) Article 53 Para 2 (4) Law on Insurance indicates information which sould be sent to Host CA. g) Article 5 of 6 April 2004 Resolution No.N-36 prescribes that IU must adopt at least one of the solutions according to Article 3(2) of Directive 87/344/EEC Article 53 Para 2 Law on Insurance indicates that within one month information sould be sent to Host CA. 2. Main features of procedures concerning the right of IU to provide services in Another European Union Member State are provided in Article 53 of Law on Insurance 35 In Article 57 of Law on Insurance is indicated that IU of another European Union Member State shall have the right to start providing services in the Republic of Lithuania only upon the receipt by the Insurance Supervisory Commission from the Home CA of documents which must be submitted by 8

9 this authority The Insurance Supervisory Commission shall at the same time inform IU that notification was forwarded to Host CA Article 53 (2), Law on Insurance 1. This requirement is met following the provisions of General 2. This requirement is met following the provisions of General This requirement is met following the provisions of General 2. This requirement is met following the provisions of General a) Main features of procedures are described in Article 53 of Law on Insurance (Right of an Insurance Undertaking to Provide Services in Another European Union Member State) b) Main features of procedures are described in Article 57 of Law on Insurance (Right of Insurance Undertakings of Other European Union Member States to Provide Services in the Republic of Lithuania) 40 Article 53 Para 6, Law on Insurance states that IU must inform ISC about the planned changes of initial information notified and the refusal of the ISC to send information to Host CA shall deprive the insurance undertaking from making the changes planned This requirement is met following the provisions of General 2. This requirement is met following the provisions of General 42 Article 53 Para 6 of Law on Insurance foresees that the same provisions are applicable to both initial notification and notification on information changes. 43 Article 53 Para 6 of Law on Insurance foreseen provisions concerning changes of information. Article 19 Para 3 of Law on Insurance foresees that the Insurance Supervisory Commission shall notify other competent authorities of the other European Union Member States about its decision to withdraw the licence for insurance activity. 44 a) Article 55(1) Para 2 of Law on insurance foresees that Article 12 para 3 is applicable for reinsurance companies. This article states that the same provisions are applicable as foreseen in Section Five concerning the activity of the IU in the European Union Member States. b) See above. c) See above. d) See above. e) See above. 45 See question See question The requirement is to be followed according to General 48 a) See question 44. 9

10 b) See question Article 192(8) of Law on Insurance states that ISC cooperates with other MSCA's and according to Article 193 Para1(1) ISC has the right to receive all relevant information necessary to fulfil its tasks. 50 Article 196 Para 2 of Law on Insurance envisages that ISC has the right to address other MSCA's requesting information, necessary to fulfil its tasks. 51 The provisions of General Protocol would be followed. 52 The provisions of General Protocol would be followed. 53 Article 53 Para 1 and Article 54 Para 2 of Law on Insurance envisages that all documents should be presented in Lithuanian, English and the state language of another EU member State. 54 According to requirements of General 55 According to requirements of General According to the Law on Insurance, Art. 192 (11) ISC informs the public about fulfilment of the its functions and significant changes in the insurance system (including entities supervised) Article 58 of Law on Insurance prescribes that Insurance Supervisory Commission must inform the Home CA about general good conditions According to requirements of General 2. According to requirements of General According to requirements of General 2. This requirement would be followed according to General This requirement would be followed according to General 2. This requirement would be followed according to General 3. This requirement would be followed according to General According to provisions of General 2. According to provisions of General This requirement would be followed according to General 2. This requirement would be followed according to General Law on Public Administration, Art 14 foresees that all applications are delt according to the Rules set by the Government of the Republic of Lithuania. These Rules are adopted with Resolution No. 875 on 22 August Art. 30 states that application should be delt within 20 workdays from its receipt. 2. This requirement would be followed according to General 1. Art. 202 (Law on Insurance) states that Insurance Supervisory Commission shall warn IU and set the deadline to eliminate violations of legal acts. If situation is not rectified within timeframe, Insurance Supervisory Commission shal inform Home CA. 2. The Insurance Supervisory Commission can temporarily or permanently prohibit the IU from engaging in activities in Lithuania (Art. 202 para 3(4) Law on Insurance). 10

11 Part IV 65 a) According to Art. 205 Para 3 (2) Law on Insurance the Insurance Supervisory Commission shall have the right to conduct on-site inspections of a branch upon advance notification of Host CA and having created conditions for representatives to take part in the on-site inspection. Article 16 of 15 January 2005 Resolution No. N-29 states, that inspection is conducted according to the plan, which can be revised and supplemented having regard to the purpose and the information available on the IU concerned. The plan contains information on what is the scope of on-site inspection, the names and positions of the persons responsible for the investigation. b) The Order on Conduct of On-site inspections is described in 15 January 2005 Resolution No.N-29. (Art.14 of this Resolution states, that names and positions of appointed persons should be indicated in the order, also the dates planned, and the type of inspection.) c) The Order on Conduct of On-site inspections is described in 15 January 2005 Resolution No.N-29.(Art.14 of this Resolution states, that names and positions of appointed persons should be indicated in the order, also the dates planned, and the type of inspection.) d) The Order on Conduct of On-site inspections is described in 15 January 2005 Resolution No.N-29. (Art.14 of this Resolution states, that names and positions of appointed persons should be indicated in the order, also the dates planned, and the type of inspection.) e) The Order on Conduct of On-site inspections is described in 15 January 2005 Resolution No.N-29.(Art.16 of this Resolution states, that on-site inspection is performed according to plan (programme) of inspection.) 66 a) According to the requirements of General b) According to the requirements of General 67 This requirement would be met following the provisions of General 68 a) This requirement would be met following the provisions of General e) 69 a) Law on insurance, Article 205 Para 3(2): ISC have the right to conduct on-site inspections of branches of Lithuanian insurance undertakings established in any other European Union Member State, and the CA of that European Union Member State should be informed in advance. b) This requirement would be met following the provisions of General 70 This requirement would be met following the provisions of General 71 This requirement would be met following the provisions of General 72 This requirement would be met following the provisions of General 74 11

12 a) Law on Insurance, Art. 202, Para 4. "If an insurance undertaking of any other European Union Member State violates legal acts of the Republic of Lithuania applied to it, does not submit information to the Supervisory Commission or is engaged in risky activities, which may be detrimental to the interests of the policyholders, insured, third persons and beneficiaries, the Supervisory Commission shall first of all warn the insurance undertaking of the established violations of legal acts of the Republic of Lithuania and shall set the deadline for the elimination thereof.<...>" Also this requirement would be met following the provisions of General b) Law on Insurance, Art. 202, Para 4. "If an insurance undertaking of any other European Union Member State violates legal acts of the Republic of Lithuania applied to it, does not submit information to the Supervisory Commission or is engaged in risky activities, which may be detrimental to the interests of the policyholders, insured, third persons and beneficiaries, the Supervisory Commission shall first of all warn the insurance undertaking of the established violations of legal acts of the Republic of Lithuania and shall set the deadline for the elimination thereof.<...>" Also this requirement would be met following the provisions of General 75 a) Law on Insurance, Art. 202, Para 4. "<...> If the situation is not rectified in the manner and within time period established by the Supervisory Commission, the Supervisory Commission shall inform the competent authority of the European Union Member State and shall demand that it should undertake all measures permissible under law to eliminate the violations." Also this requirement would be met following the provisions of General b) Law on Insurance, Art. 202, Para 4. "<...> If the situation is not rectified in the manner and within time period established by the Supervisory Commission, the Supervisory Commission shall inform the competent authority of the European Union Member State and shall demand that it should undertake all measures permissible under law to eliminate the violations." Also this requirement would be met following the provisions of General 76 This requirement would be met following the provisions of General 77 a) This requirement would be met following the provisions of General b) This requirement would be met following the provisions of General 78 a) Law on Insurance, Art. 202, Para 5. If it appears that the initial measures provided are not sufficient to eliminate the violations, ISC should inform the competent authority of other European Union Member State in advance, and then shall have the right to impose sanctions. Also this requirement would be met following the provisions of General b) This requirement would be met following the provisions of General 79 This requirement would be met following the provisions of General 80 This requirement would be met following the provisions of General 12

13 81 Law on Insurance, Art. 41, Para. 2: An insurance undertaking shall have the right to transfer its rights and obligations under all insurance contracts or part of them which were concluded when exercising the right of establishment or the right to provide services to an insurance undertaking of another EU Member State only where a competent authority of this State confirms that after the transfer of rights and obligations, the required solvency margin under the legal acts of this State will be preserved by of the transferee assuming the rights and obligations. 82 a) This requirement is met following the provisions of General b) This requirement is met following the provisions of General a) Law on Insurance, Art 41, Para 3: 3. If it is intended to transfer rights and obligations under insurance contracts of a branch of an undertaking in an European Union Member State concluded when exercising the right of establishment or the right to provide services, the Supervisory Commission must obtain an opinion from a competent authority of the host country about the transfer of rights and obligations b) Law on Insurance, Art 41, Para 2. a) This requirement would be met following the provisions of General Protocol and Article 211 Law on Insurance. b) This requirement would be met following the provisions of General a) Law on Insurance Art. 41 Para 2 states that ISC shall consult CA of accepting IU. The information file is composed following the requirements of General protocol. Part of information which should be forwarded is at our disposal, the other part is required to present by IU according to ISC Resolution No. N-59 ( ) "ON THE APPROVAL OF THE PROCEDURE FOR ISSUANCE OF AUTHORISATIONS TO TRANSFER RIGHTS AND OBLIGATIONS UNDER INSURANCE CONTRACTS" b) According to Law on insurance Art. 41 Para 3 ISC shall consult Host CA of branch; The information file is composed following the requirements of General protocol. c) According to Law on Insurance Art. 41 Para 4 ISC shall consult CA of MS of risks or commitments. The information file is composed following the requirements of General protocol. 86 a) This requirement would be met following the provisions of General b) This requirement would be met following the provisions of General 87 a) This requirement would be met following the provisions of General b) This requirement would be met following the provisions of General c) This requirement would be met following the provisions of General 88 This requirement is met following the provisions of General 89 This requirement would be met following the provisions of General 13

14 90 a) According to Art of ISC Resolution No. N-16 ( ) on reorganisation the ISC shall reject to issue the authorisation to reorganise the insurance or reinsurance undertaking if country whose insurer or reinsurer participates in the reorganisation, objects to the reorganisation. b) This requirement is met following the provisions of General e) f) This requirement would be met following the provisions of General Protocol and Article 211 Law on Insurance. g) This requirement would be met following the provisions of General q) 91 This requirement is met following the provisions of General 92 Law on Insurance, Art. 55(10), Para. 2: the reinsurance undertaking shall be entitled to transfer the rights and obligations under all or part of reinsurance contracts concluded in implementing the right of establishment or the freedom to provide services to an insurance or reinsurance undertaking of another Member State of the European Union only when a competent authority of such Member State confirms that after the transfer of rights and obligations the solvency margin of the entity taking over the rights and obligations required by its legal acts will be maintained. 93 This requirement would be met following the provisions of General a) - f) a) b) Law on Insurance, Art. 55(10), Para. 2: An reinsurance undertaking shall have the right to transfer its rights and obligations under all reinsurance contracts or part of them which were concluded when exercising the right of establishment or the right to provide services to an reinsurance undertaking of another EU Member State only where a competent authority of this State confirms that after the transfer of rights and obligations, the required solvency margin under the legal acts of this State will be preserved by of the transferee assuming the rights and obligations. This requirement would be met following the provisions of General 96 a) This requirement would be met following the provisions of General b) 97 Para of the Resolution No. N-16 on The Approval of The Procedure for Issuance of Authorisations to Reorganise, Restructure and Liquidate The Insurance or Reinsurance Undertaking, to Terminate Activities of Branches of Non-Member-Country Insurance Undertakings, or to Make an Influence by The Reorganisation of The Non-Member-Country Insurance Undertaking on The Rights And Duties of Insurers and other Persons of The Branch in The Republic of Lithuania (hereinafter - Resolution N- 16)adopted by the ISC on 29 January 2008: The Supervisory Commission shall reject to issue the authorisation to reorganise the insurance undertaking if the competent authority of another member state of the European Union or of the non-member-country whose insurer or reinsurer participates in the reorganisation, objects to the reorganisation. 14

15 98 This requirement would be met following the provisions of General 99 a) The ISC follows the procedure laid down in General In order to e) do so, the transferring companies are obliged to provide with the draft merger agreement (Para 3.2 of the ISC Resolution No N-16) f) The ISC follows the procedure laid down in General In order to do so, the transferring companies are obliged to provide with the documents on the supplementary warranty for fulfillment of the obligations assumed by the insurance or reinsurance company (Para 3.3 of the ISC Resolution No N-16) a) b) a) b) This requirement would be met following the provisions of General This requirement would be met following the provisions of General a) According to Law on Insurance Art. 124 para 2, Art. 122 para 3 and Art. 197 para 9 - ISC shall inform other CA of EU Member states about decision to impose a measure involving intervention. Where possible ISC must inform in advance. b) This requirement would be met following the provisions of General a) This requirement would be met following the provisions of General b) In the situations described in Art. 212 para 1 - ISC must make decision regarding impositions of analogous restrictions on the assets of IU of any other EU member state in Lithuania. c) This requirement would be met following the provisions of General a) Article 43 of 29 January 2008 Resolution No. N-13 states that when such measures are applied, Host CA, where IU carries out its insurance business, should be informed b) Article 43 of 29 January 2008 Resolution No. N-13 states that when such measures are applied, Host CA, where IU carries out its insurance business, should be informed. a) b) a) c) This requirement would be followed according to the provisions of General Article 43 of 29 January 2008 Resolution No. N-13 states that when such measures are applied, Host CA, where IU carries out its insurance business, should be informed. 107 This requirement would be followed according to the provisions of General 108 According to Article 19 Para 3 (Law on Insurance) ISC shall notify the CA about decision to withdraw the licence. 15

16 109 a) Art. 133 Para 2 (Law on Insurance) indicates that if there is possibility ISC shall notify other CA's before the decision and Art. 133 Para 1 states that ISC shall immediately inform other CA's about the decision on liquidation or institution of bankruptcy proceedings against IU. b) Art. 133 Para 1 (Law on Insurance) foresees that information referred above should be provided together with possible consequences for natural and legal persons of that Member state. 110 Art. 192 Para 8 (Law on Insurance) states that one of the functions of ISC is to cooperate with other MSCAs. 111 This requirement would be followed according to General Protocol 112 Art. 196 Para 2 (Law on Insurance) foresees that ISC have the right to address other MSCA with request to present information for exercising of functions if ISC. 113 Art. 196 Para 2 (Law on Insurance) foresees that ISC have the right to address other MSCA with request to present information for exercising of functions if ISC. Part V 114 a) Para 12.5 of the Rules for The Issuance of Authorisations to Engage in The Activity of a Branch of a Non-Member Country Insurance Undertaking approved by the Insurance Supervisory Commission of the Republic of Lithuania Resolution No. N-10 on 29 January 2008 (hereinafter Resolution N-10): The following documents shall be submitted together with the request to issue an authorisation to engage in the activity of a branch: <...> the documents certifying that a non-member country insurance undertaking has appointed a highly-qualified and experienced head of the branch with an impeccable reputation (the completed questionnaire, the form of which is approved by Resolution No. N-4 On the Procedure for Approval of Persons Candidacies and Questionnaire Forms for Natural and Legal Persons of 13 January 2004 of the Supervisory Commission (Official Gazette Valstyb s Žinios, 2004, No ), is to be submitted) and that sufficient powers have been granted to him so that he could create the rights and obligations for the non-member country insurance undertaking to represent this insurance undertaking in the court of the Republic of Lithuania and in other state authorities and state governing institutions b) Para of the Resolution N-10: The following documents shall be submitted together with the request: <...> a confirmation of a competent authority of a non-member country certifying that a non-member country insurance undertaking has complied with the requirements for the solvency margin, formation of technical provisions and coverage thereof by assets as well as other requirements set in the legal acts of that non-member state for the activity of insurance undertaking for the past 3 years. In the insurance undertaking has been functioning for a period shorter than 3 years, a competent authority of that non-member country shall have to submit a confirmation on the whole period of activities of a non-member country insurance undertaking; 16

17 c) Para of the Respolution N-10: The following documents shall be submitted together with the request: <...> information, in the form established by the Supervisory Commission, about the persons controlling the non-member country insurance undertaking, the undertakings participating in it, and the members of the supervisory and governing bodies (the completed questionnaire, the form of which is approved by Resolution No. N-115 On the Procedure for Approval of Persons Candidacies and Questionnaire Forms for Natural and Legal Persons of 28 December 2008 of the ISC, is to be submitted) d) According to Para. 12 of the Resolution N-10, in addition to the information mentioned above, the following documents shall be submitted together with the request to issue an authorisation to engage in the activity of a branch: a written confirmation of a competent authority of a non-member country certifying that the non-member country insurance undertaking has the right to engage in the activity of insurance in the non-member country where it is registered; an authorisation of a competent authority of a non-member country to establish a branch in the Republic of Lithuania, or information that a competent authority of a non-member country does not object to the establishment of the branch in the Republic of Lithuania; the decision of the governing body of a non-member country insurance undertaking to establish a branch in the Republic of Lithuania, to approve the Articles of Association of the branch and to appoint the head of the branch as well as the written obligations of this governing body stating that the established branch shall keep the accounting and other documents related to the activities carried out by the branch in the head office of the branch; the documents certifying that a non-member country insurance undertaking has appointed highly-qualified and experienced chief accountant and chief actuary of the branch with impeccable reputations (the completed questionnaire, the form of which is approved by Resolution of the ISC, is to be submitted); the articles of association of the branch. This document is submitted before it is submitted to the notary; the contracts concluded with other persons for the valuation of the property insured by the branch, conclusion of insurance contracts, administration of insurance events, investment and/or property management, maintenance of accounting books and records and databases, internal audit and other contracts established by the Supervisory Commission, if any; a list of shareholders of a non-member country insurance undertaking (Annex No. 1 to the present Rules); a business plan, in the form established by the ISC, along with the audited financial statements of the non-member country insurance undertaking for the past 3 years. In the event that the non-member country insurance undertaking operates for a period less than 3 years, the audited financial statements for each financial year ended during this period of activities must be submitted; the documents certifying that the non-member country insurance undertaking has concluded the contract for the bank deposit specified in Paragraph 1 of Article 72 of the Insurance Law, and the documents evidencing that the non-member country insurance undertaking has transferred the amount of money to the bank account in the Republic of Lithuania which together with the funds of the non-member country insurance undertaking s deposit would be equal to the minimum guarantee 17

18 fund indicated in Paragraph 2 of article 71 of the Insurance Law. In addition to that, it shall be necessary to submit information on the origin of all of these funds (bank certificates, written confirmations, etc.); if it is intended to engage in the insurance against liability arising out of the use of land vehicles, except for carriers liability insurance, the documents evidencing that the insurance undertaking has appointed its representative to deal with claims in each of other European Union Member States, who has been granted sufficient powers, as well as the name, surname and address of this representative. 115 According to Para of the Respolution N-10: The following documents shall be submitted together with the request: <...> information, in the form established by the Supervisory Commission, about the persons controlling the non-member country insurance undertaking, the undertakings participating in it, and the members of the supervisory and governing bodies (the completed questionnaire, the form of which is approved by Resolution No. N-115 On the Procedure for Approval of Persons Candidacies and Questionnaire Forms for Natural and Legal Persons of 28 December 2008 of the ISC, is to be submitted). The information about the links is required in this questionnaire. A legal person must indicate the persons controlling it; legal persons participating in it; legal persons controlled by it, and legal persons in which it participates (Para. 6 and 7 of the questionnaire for legal persons). 116 This requirement would be followed according to the provisions of General 117 a) This requirement would be followed according to the provisions of General b) Law on Public Administration, Art 14 foresees that all applications are delt according to the Rules set by the Government of the Republic of Lithuania. These Rules are adopted with Resolution No. 875 on 22 August Art. 30 states that application should be delt within 20 workdays from its receipt. Art 31 foresees that due to objective reasons terms may be extended for 10 workdays. A person must be informed about the extension of the procedure and the reasons of that. Part VI Art. 192 Para 8 (Law on Insurance) states that one of the functions of ISC is to cooperate with other MSCAs a Art. 192 Para 8 (Law on Insurance) states that one of the functions of ISC is to cooperate with other MSCAs. 1. b See question a 2. See question a 3. See question a Art. 192 Para 8 (Law on Insurance) states that one of the functions of ISC is to cooperate with other MSCAs. 2. See question See question