Text consolidated by Valsts valodas centrs (State
Language Centre) with amending laws of:
23 September 2021 [shall
come into force on 20 October 2021];
13 October 2022 [shall come into force on 3 November
2022].
If a whole or part of a section has been amended, the
date of the amending law appears in square brackets at
the end of the section. If a whole section, paragraph or
clause has been deleted, the date of the deletion appears
in square brackets beside the deleted section, paragraph
or clause.
|
The Saeima 1 has adopted and
and the President has proclaimed the following law:
Insurance and Reinsurance
Distribution Law
Chapter I
General Provisions
Section 1. Terms Used in the Law
(1) The following terms are used in the Law:
1) insurance agent - a natural or legal person who is
not an insurance or reinsurance merchant, a branch of a foreign
insurer, a branch of a foreign reinsurer, an insurance or
reinsurance broker, or an ancillary insurance intermediary, or
their employee, and who is pursuing insurance distribution on
behalf and in the interests of an insurance merchant or a branch
of a foreign insurer;
2) insurance-based investment product - an insurance
product which provides for disbursement of an insurance sum upon
expiration of the time period of the insurance contract or
disbursement of the surrender sum and the insurance sum or
surrender sum of which is exposed, directly or indirectly, to
market fluctuations, except for:
a) non-life insurance products which are offered in the
non-life insurance types referred to in Section 19, Paragraph one
of the Insurance and Reinsurance Law;
b) life insurance contracts where the insurance compensation
under the abovementioned contract is payable only on death of the
insured person or in respect of incapacity for work due to
injury, sickness, or disability;
3) insurance distribution - the provision of
recommendations, the offering of insurance, the preparation of
the documents necessary for the conclusion of an insurance
contract, the explaining of the provisions of the insurance
contract, including the rights and obligations specified in the
insurance contract, the performance of other operations necessary
for the conclusion of an insurance contract, the conclusion or
servicing of the abovementioned contract, as well as the
provision of information regarding one or several insurance
products on the basis of the criteria selected by a customer with
the intermediation of a website or a mobile application;
4) employee directly involved in insurance distribution
- a person who has the knowledge and skills necessary for
insurance distribution and who is entitled to pursue insurance
distribution on behalf of the insurance distributor;
5) insurance distributor - an insurance merchant, a
branch of a foreign insurer, an insurance intermediary, or an
ancillary insurance intermediary;
6) association of insurance distributors - an
association which has been established in accordance with the
Associations and Foundations Law and in which insurance
distributors have joined in order to achieve the objective laid
down in the articles of association;
7) ancillary insurance intermediary - a natural or
legal person, other than a credit institution or an investment
brokerage company, which, for remuneration, pursues insurance
distribution on an ancillary basis, provided that all of the
following conditions are met:
a) the principal activity of the person is other than
insurance distribution;
b) the person only distributes insurance which is
complementary to a good or service offered thereby;
c) the insurance specified in Sub-clause "b" of this Clause
does not provide for coverage of life insurance or liability
risks, except for the case when such insurance complements the
good or service which the ancillary insurance intermediary is
offering within the scope of its principal activity;
8) insurance intermediary - an insurance broker or
insurance agent who, for remuneration, pursues insurance
distribution in accordance with the procedures laid down in this
Law and distribution of pan-European Personal Pension Product in
accordance with the procedures laid down in Regulation (EU)
2019/1238 of the European Parliament and of the Council of 20
June 2019 on a pan-European Personal Pension Product;
9) insurance or reinsurance broker - a legal person
which is not an insurance or reinsurance merchant, a branch of a
foreign insurer, a branch of a foreign reinsurer, an insurance
agent, or an ancillary insurance intermediary and which pursues
insurance or reinsurance distribution on behalf and in the
interests of the customer;
10) branch of a foreign insurance or reinsurance
intermediary - a branch of a foreign insurance or reinsurance
intermediary established and registered in the Republic of
Latvia;
11) responsible person - a member of the executive
board of an insurance or reinsurance intermediary or ancillary
insurance intermediary or a person who is employed as the manager
or in another senior office by an insurance or reinsurance
intermediary or ancillary insurance intermediary and who has the
knowledge and skills necessary for insurance or reinsurance
distribution, whose duties of the office include the supervision
of insurance or reinsurance distribution performed by the
insurance or reinsurance intermediary or insurance ancillary
intermediary, and who has been granted the right to give
instructions to other persons employed by the insurance or
reinsurance intermediary or ancillary insurance intermediary who
are performing insurance or reinsurance distribution;
12) remuneration for insurance or reinsurance
distribution - commission or another payment, including work
remuneration, other economic benefits, or other monetary or
non-monetary benefits or inducements received for insurance or
reinsurance distribution;
13) insurance distributor of a Member State - an
insurance distributor registered in a Member State other than the
Republic of Latvia which has the right to distribute insurance in
the home state;
14) supervisory authority of the Member State - an
institution which has been delegated the supervisory function of
insurance or reinsurance distribution by the Member State
regardless of whether such authority has been established on the
basis of law or such function has been delegated thereto by a
State administration institution, if the relevant Member State
has notified the European Commission of such authority and its
rights and obligations;
15) branch - a unit of an insurance or reinsurance
intermediary or ancillary insurance intermediary which is located
in the territory of a Member State other than the home state;
16) primary place of business - the location from where
the principal activity is managed;
17) head office - the location of the executive board
of an insurance or reinsurance distributor;
18) customer - a natural or legal person whose
intention is to conclude an insurance or reinsurance contract or
who according to the:
a) insurance contract is an insurance policy holder;
b) reinsurance contract is a reinsurance policy holder;
19) home state - the Member State in which the
following is located:
a) the permanent place of residence of the insurance
intermediary or ancillary insurance intermediary - a natural
person;
b) the legal address of the insurance or reinsurance
intermediary or ancillary insurance intermediary - a legal person
- or, if in accordance with the national laws and regulations of
the insurance or reinsurance intermediary or ancillary insurance
intermediary it does not have a legal address, the state where
its head office is located;
20) reinsurance distribution - the provision of
recommendations, the offering of reinsurance, the preparation of
the documents necessary for the conclusion of a reinsurance
contract, the explaining of the provisions of the reinsurance
contract, including the rights and obligations specified in the
reinsurance contract, the performance of other operations
necessary for the conclusion of a reinsurance contract, the
conclusion or servicing of the abovementioned contract;
21) employee directly involved in reinsurance
distribution - a person who has the knowledge and skills
necessary for reinsurance distribution and who is entitled to
pursue reinsurance distribution on behalf of the reinsurance
distributor;
22) reinsurance distributor - an insurance or
reinsurance merchant, a branch of a foreign insurer or a branch
of a foreign reinsurer, a reinsurance broker;
23) reinsurance intermediary - a reinsurance broker
who, for remuneration, pursues reinsurance distribution in
accordance with the procedures laid down in this Law;
24) durable medium - any instrument which enables a
customer to store information addressed personally to him or her
in a way to ensure accessibility, use, and unchanged reproduction
of such information in the necessary period of time;
25) provision of recommendations - provision of
individual suggestions to a customer regarding one or several
insurance products or concluded contracts upon request of a
customer or upon initiative of an insurance distributor;
26) host country - a Member State, other than home
country, in which:
a) an insurance or reinsurance intermediary or ancillary
insurance intermediary has a branch;
b) an insurance or reinsurance intermediary or ancillary
insurance intermediary provides services in conformity with the
principle of freedom to provide services, without opening a
branch;
27) fair analysis of insurance products - analysis and
comparison of insurance products of insurance merchants and
branches of foreign insurers which, in the interests of a
customer, is performed by an insurance broker by evaluating a
sufficient number of insurance products on the market in order to
prepare an insurance product that is the most appropriate and
corresponding to the needs of the customer for conclusion of an
insurance contract;
28) fair analysis of reinsurance products - analysis
and comparison of reinsurance products of insurance or
reinsurance merchants, branches of foreign insurers, and branches
of foreign reinsurers which, in the interests of a customer, is
performed by a reinsurance broker by evaluating a sufficient
number of reinsurance products on the market in order to prepare
a reinsurance product that is the most appropriate and
corresponding to the needs of the customer for conclusion of a
reinsurance contract.
(11) The term "PEPP plan" used in the Law
corresponds to the term "pan-European Personal Pension Product"
used in Regulation No 2019/1238.
(2) Other terms used in this Law conform to the terms used in
the Insurance and Reinsurance Law and the Insurance Contract Law,
the Financial Instrument Market Law, and Regulation (EU) No
1286/2014 of the European Parliament and of the Council of 26
November 2014 on key information documents for packaged retail
and insurance-based investment products (PRIIPs) (hereinafter -
Regulation No 1286/2014).
[13 October 2022 / See Paragraph 13 of Transitional
Provisions]
Section 2. Purpose and Scope of the
Application of the Law
(1) The purpose of this Law is to promote the protection of
interests of customers, ensuring that insurance and reinsurance
distribution is reliable, efficient, safe, and stable, as well as
ensuring equal conditions of competition among distributors,
particularly in the field of provision of information.
(2) This Law prescribes the commencement and performance of
insurance and reinsurance distribution.
(3) This Law shall apply to any person who pursues or wishes
to pursue insurance or reinsurance distribution.
Section 3. Exceptions to the Scope
of Application of the Law
(1) This Law shall not apply to the distribution of State
funded pension schemes in accordance with the Law on State Funded
Pensions and the distribution of pension plans in accordance with
the Private Pension Fund Law.
(2) This Law, except for Section 5, Paragraph three and
Section 37, Paragraph two thereof, shall not apply to ancillary
insurance intermediaries pursuing insurance distribution, if the
following conditions are met concurrently:
1) insurance is only complementary to the good or service
offered and provides for one of the following cases:
a) covering of such losses which are related to defect, damage
to, or loss of the offered good or the risk of not using the
offered service;
b) covering of such losses which are related to a damage to or
loss of baggage and to other risks of travel services provided by
the ancillary insurance intermediary;
2) the amount of the insurance premium paid for insurance,
upon calculating it in proportion to the insurance period, does
not exceed EUR 600 per year or, if insurance is complementary to
the service referred to in Clause 1 of this Paragraph the
duration of which does not exceed 90 days, the amount of the
insurance premium paid per person does not exceed EUR 200.
(3) The following shall not be considered insurance or
reinsurance distribution:
1) the provision of information for advertising purposes as an
ancillary service within the scope of another principal activity
if the provider of information does not perform any additional
measures to assist in concluding or performing an insurance or
reinsurance contract;
2) the administration of insurance or reinsurance claims of an
insurance or reinsurance merchant, a branch of a foreign insurer,
or a branch of a foreign reinsurer;
3) the loss assessment or the calculation of the insurance
compensation;
4) only the provision of data and information to an insurance
or reinsurance intermediary or an insurance or reinsurance
merchant, a branch of a foreign insurer, or a branch of a foreign
reinsurer regarding the potential insurance or reinsurance policy
holders, if the data and information provider does not perform
any additional measures to assist in concluding an insurance or
reinsurance contract;
5) only the provision of information to the potential
insurance or reinsurance policy holders regarding insurance or
reinsurance products, the insurance or reinsurance intermediary,
the insurance or reinsurance merchant, the branch of the foreign
insurer, or the branch of the foreign reinsurer, if the
information provider does not perform any additional measures to
assist in concluding an insurance or reinsurance contract.
[13 October 2022]
Section 4. Rights of Insurance or
Reinsurance Distribution
(1) Any person in accordance with that laid down in this Law
is entitled to pursue insurance or reinsurance distribution.
(2) A branch of a foreign insurance or reinsurance
intermediary may pursue insurance or reinsurance distribution in
the Republic of Latvia in accordance with the requirements laid
down in this Law for an insurance or reinsurance
intermediary.
(3) An insurance agent is entitled to pursue insurance
distribution only on behalf and in the interests of one insurance
merchant or branches of one foreign insurer or on behalf and in
the interests of several insurance merchants or branches of
foreign insurers, distributing life and non-life insurance
products that are not in mutual competition, if insurance
merchants are in one group of commercial companies, except for
the case referred to in Paragraph four of this Section.
(4) An insurance agent - credit institution - is entitled to
pursue insurance distribution on behalf and in the interests of
several insurance merchants or branches of foreign insurers if
insurance is complementary to a service provided within the scope
of the principal activity of the credit institution or the
insurance to be distributed does not provide for distribution of
insurance products that are in mutual competition. The insurance
agent - credit institution - is not entitled to provide a
recommendation to a customer or to prepare an insurance product
on the basis of a fair analysis of insurance products.
(5) A registered ancillary insurance intermediary of an
insurance merchant or a branch of a foreign insurer is entitled
to pursue insurance distribution on behalf and in the interests
of several insurance merchants or branches of foreign insurers if
the insurance to be distributed by several insurance merchants or
branch of a foreign insurer does not provide for distribution of
insurance products that are in mutual competition.
(6) An insurance or reinsurance broker may use the services
only of such insurance or reinsurance broker or ancillary
insurance intermediary in insurance or reinsurance distribution
which is entitled to pursue insurance or reinsurance
distribution.
(7) A registered ancillary insurance intermediary of an
insurance broker is not entitled to provide a recommendation to a
customer or to prepare an insurance product on the basis of a
fair analysis of insurance products.
(8) An insurance or reinsurance distributor does not have the
right to employ a person as the responsible person or an employee
directly involved in insurance or reinsurance distribution if he
or she has not been fulfilling the obligations of the responsible
person or employee for more than a year. The prenatal and
maternity leave, the parental leave, as well as the period of
incapacity for work, if the reason for incapacity for work had
been an accident at work the cause of which is related to
exposure to the factors of the working environment or an
occupational disease, and other cases referred to in laws and
regulations shall not be included in this period of time. The
person may resume the fulfilment of the abovementioned
obligations after fulfilment of the requirements laid down in
Chapter III of this Law.
(9) An insurance and reinsurance distributor may not disclose
the information obtained during the course of insurance and
reinsurance distribution regarding the customer, third party, or
beneficiary, except for information which is necessary for the
distribution of insurance and reinsurance services, as well as in
the cases provided for in this Law and other laws. The insurance
and reinsurance distributor may transfer the information
regarding the customer, third party, or beneficiary to another
insurance and reinsurance distributor, insurance distributor of a
Member State, or an insurance merchant and a branch of a foreign
insurer on the basis of a contract. If information regarding the
customer and the third party is disclosed in the cases provided
for in laws, the insurance and reinsurance distributor shall not
be liable for the consequences of disclosing the information.
Section 4.1 Rights to
Distribute the PEPP Plan
An insurance intermediary is entitled to distribute the PEPP
plan in accordance with Regulation No 2019/1238 and Chapter
III.1 of the Private Pension Fund Law.
[13 October 2022 / See Paragraph 13 of Transitional
Provisions]
Chapter II
Registration of Insurance and Reinsurance Distributors
Section 5. Requirements for the
Commencement of Insurance and Reinsurance Distribution
(1) An insurance or reinsurance broker may commence insurance
or reinsurance distribution only after registration in the
register of insurance and reinsurance brokers.
(2) An insurance agent may commence insurance distribution
only after registration in the register of insurance agents.
(3) An ancillary insurance intermediary may commence insurance
distribution only after registration in the register of ancillary
insurance intermediaries.
(4) An insurance or reinsurance merchant or a branch of a
foreign insurer which has received an insurance or reinsurance
licence in accordance with the Insurance and Reinsurance Law may
commence insurance or reinsurance distribution.
(5) Insurance or reinsurance brokers shall be registered in
the register of insurance and reinsurance brokers maintained by
Latvijas Banka.
(6) Insurance agents shall be registered in the register of
insurance agents maintained by an insurance agent or a branch of
a foreign insurer.
(7) Ancillary insurance intermediaries shall be registered in
the register of ancillary insurance intermediaries maintained by
an insurance merchant, a branch of a foreign insurer, or an
insurance broker.
(8) An insurance or reinsurance distributor shall register
employees directly involved in insurance or reinsurance
distribution and maintain the relevant register. An insurance
intermediary and an ancillary insurance intermediary shall
register the responsible person and maintain the relevant
register.
(9) Latvijas Banka shall perform supervision of the
registration of insurance agents, ancillary insurance
intermediaries, as well as the registration of the persons
referred to in Paragraph eight of this Section.
[23 September 2021 / The new wording of Paragraph five and
amendment to Paragraph nine regarding the replacement of the word
"the Commission" with the words "Latvijas Banka" shall come into
force on 1 January 2023. See Paragraph 11 of Transitional
Provisions]
Section 6. Persons to be Entered in
the Register of Insurance and Reinsurance Brokers, the Register
of Insurance Agents, and the Register of Ancillary Insurance
Intermediaries
(1) Latvijas Banka shall enter the following in the register
of insurance and reinsurance brokers:
1) a capital company entered in the commercial register of the
Enterprise Register;
2) a branch of a foreign insurance or reinsurance broker.
(2) An insurance merchant or a branch of a foreign insurer
shall enter the following persons in the register of insurance
agents:
1) a commercial company entered in the commercial register of
the Enterprise Register;
2) an individual merchant entered in the commercial register
of the Enterprise Register or a natural person registered as a
performer of economic activity in the Taxpayers' Register of the
State Revenue Service;
3) a cooperative society entered in the records of the
Enterprise Register.
(3) An insurance merchant, a branch of a foreign insurer, or
an insurance broker shall enter the following persons in the
register of ancillary insurance intermediaries:
1) a commercial company entered in the commercial register of
the Enterprise Register;
2) an individual merchant entered in the commercial register
of the Enterprise Register or a natural person registered as a
performer of economic activity in the Taxpayers' Register of the
State Revenue Service;
3) a cooperative society entered in the records of the
Enterprise Register.
(4) Registration of the persons referred to in Paragraphs one,
two, and three of this Section in the register of insurance and
reinsurance brokers, insurance agents, or ancillary insurance
intermediaries shall give the right to pursue insurance or
reinsurance distribution in other Member States in conformity
with the principle of foundation or freedom to provide services
and the requirements of this Law.
[23 September 2021 / Amendment regarding the replacement of
the word "the Commission" with the words "Latvijas Banka" shall
come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 7. Register of Insurance and
Reinsurance Brokers
(1) The following information shall be entered in the register
of insurance and reinsurance brokers:
1) the firm name, registration number, legal address,
telephone number, electronic mail address of the insurance or
reinsurance broker and the website address where public access to
the information specified in this Law is ensured;
2) the type of the insurance or reinsurance broker in
accordance with Section 6, Paragraph one of this Law and
information regarding whether the broker pursues the distribution
of life or non-life insurance;
3) the given name and surname of the responsible person of the
insurance or reinsurance broker;
4) the Member State in which the insurance or reinsurance
broker is entitled to pursue insurance or reinsurance
distribution in conformity with the principle of foundation or
freedom to provide services;
5) information regarding whether the insurance or reinsurance
broker has the right to receive insurance or reinsurance premiums
and other payments according to the insurance or reinsurance
contract concluded;
6) a note regarding the maintenance of the register of
ancillary insurance intermediaries.
(2) If any of the information referred to in Paragraph one of
this Section changes, the insurance or reinsurance broker shall,
within seven days, submit a relevant notification to Latvijas
Banka.
(3) Latvijas Banka shall make changes to the register of
insurance and reinsurance brokers within five days after receipt
of the information referred to in Paragraph two of this
Section.
(4) The register of insurance and reinsurance brokers shall be
available to the public, it shall be publicly reliable, and any
person has the right to become acquainted with it on the website
of Latvijas Banka.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 8. Requirements for the
Registration of Insurance and Reinsurance Brokers
(1) In order to register in the register of insurance and
reinsurance brokers, an insurance or reinsurance broker shall
submit to Latvijas Banka:
1) a submission regarding entering in the register of
insurance and reinsurance brokers;
2) the following information regarding the responsible person
and documents certifying that he or she complies with the
requirements of Section 16, Paragraph one of this Law:
a) the given name, surname, personal identity number;
b) copies of documents certifying education;
c) an opinion issued by the association of insurance
distributors that the person has the knowledge and skills
necessary for insurance or reinsurance distribution in accordance
with the requirements of this Law;
d) a document issued by the national competent authority
certifying that none of the conditions referred to in Section 19,
Clause 1 of this Law applies to the responsible person (only a
non-resident);
3) the list of such shareholders or members which have a
qualifying holding in the insurance or reinsurance broker,
indicating the amount of holding;
4) the list of such persons which have close links with the
insurance or reinsurance broker;
5) a certification that the qualifying holding and close links
referred to in Clauses 3 and 4 of this Paragraph do not restrict
the possibilities of Latvijas Banka to carry out the supervisory
functions;
6) information regarding the insurance or reinsurance broker,
indicating the firm name, registration number, legal address,
telephone number, electronic mail address, and website address
where public access to the information specified in this Law will
be ensured;
7) a copy of the civil liability insurance contract referred
to in Section 28 of this Law or a guarantee issued by a credit
institution;
8) a copy of the contract concluded with the credit
institution regarding opening of a separate cash account which
indicates that the monies in the account are monies acquired as a
result of the activities of the insurance or reinsurance broker
in accordance with the requirements of Section 31 of this Law,
and information regarding the procedure by which transfer of the
funds received from customers into a separate cash account in the
credit institution will be ensured. The requirements of this
Clause shall apply to insurance or reinsurance brokers which are
planning to receive premiums or other payments according to the
insurance or reinsurance contract concluded;
9) information regarding the procedure by which the insurance
or reinsurance broker ensures fulfilment of the requirements of
Section 16 of this Law;
10) information regarding the procedure for the protection of
an information system;
11) information regarding the procedure for the fulfilment of
the requirements of the laws and regulations regarding the
prevention of money laundering and terrorism and proliferation
financing if an insurance or reinsurance broker distributing life
insurance is registered;
12) information regarding the procedure by which the insurance
or reinsurance broker examines complaints of customers;
13) information regarding the organisational structure of the
insurance or reinsurance broker, as well as regarding the
division of authorisation and obligations of the executive board
and the responsible person for insurance or reinsurance
distribution;
14) information regarding the procedure by which fulfilment of
the requirements of Section 13 of this Law is ensured;
15) information regarding the procedure by which fulfilment of
the requirements of Section 23, Paragraph six of this Law is
ensured;
16) a document certifying the payment performed for
examination of the documents submitted to the register of
insurance and reinsurance brokers - EUR 250.
(2) Latvijas Banka shall examine the submission regarding
entering of an insurance or reinsurance broker in the register of
insurance and reinsurance brokers and take the decision to make
an entry or to refuse to make an entry within 30 days after
receipt of the documents referred to in Paragraph one of this
Section if they have been drawn up in accordance with the laws
and regulations regarding the procedures for the development and
drawing up of documents.
(3) Upon examining the documents referred to in Paragraph one
of this Section, Latvijas Banka has the right to request that the
insurance or reinsurance broker eliminates deficiencies in the
submitted documents and to determine a time period for
elimination of such deficiencies. The time period indicated in
Paragraph two of this Section is suspended until the day when
deficiencies are eliminated, but not later than for 30 days.
(4) The insurance or reinsurance broker is entitled to submit
the copy of the civil liability insurance contract or a guarantee
issued by a credit institution referred to in Paragraph one,
Clause 7 of this Section after the decision of Latvijas Banka
referred to in Paragraph two of this Section to make an entry in
the register of insurance and reinsurance brokers has been taken.
Latvijas Banka shall make an entry in the register of insurance
and reinsurance brokers on the same day when the copy of the
civil liability insurance contract referred to in Paragraph one,
Clause 7 of this Section or a guarantee issued by a credit
institution has been received.
(5) If changes are made to the information referred to in
Paragraph one, Clause 2, 3, 4, 5, or 6 of this Section, the
insurance or reinsurance broker shall inform Latvijas Banka
within seven days after making thereof.
(6) If amendments have been made to any of the documents
referred to in Paragraph one, Clause 7, 8, 9, 10, 11, 12, 13, 14,
or 15 of this Section, the insurance or reinsurance broker shall,
within seven days after entering into effect thereof, submit the
amended document or its copy to Latvijas Banka.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 9. Refusal to Register the
Insurance or Reinsurance Broker and Cancellation of an Entry in
the Register
(1) Latvijas Banka shall take the decision to refuse to
register an insurance or reinsurance broker in the register in
any of the following cases:
1) all the documents referred to in Section 8, Paragraph one
of this Law have not been submitted within the time period
stipulated by Latvijas Banka in accordance with Section 8,
Paragraph three of this Law, taking into consideration the
exception specified in Paragraph four of the same Section;
2) the documents submitted by the insurance or reinsurance
broker contain false or incomplete information, and the insurance
or reinsurance broker has not eliminated the deficiencies
detected in the submitted documents within the time period
stipulated by Latvijas Banka;
3) the procedures developed by the insurance or reinsurance
broker do not conform to the requirements of this Law and such
laws and regulations which govern the procedures for the
development and drawing up of documents, personal data
protection, prevention of money laundering and terrorism and
proliferation financing, and the insurance or reinsurance broker
has not eliminated the deficiencies detected in the procedures
within the time period stipulated by Latvijas Banka;
4) the responsible person of the insurance or reinsurance
broker does not comply with the requirements of this Law;
5) laws of a Member State or a foreign country, as well as the
laws and regulations related to the persons who have close links
with the insurance or reinsurance broker restrict the right of
Latvijas Banka to perform the supervision functions.
(2) Latvijas Banka is entitled to check the conformity of the
insurance or reinsurance broker with the registration
conditions.
(3) If Latvijas Banka has taken the decision to refuse to
register the insurance or reinsurance broker in the register of
insurance and reinsurance brokers, the submission regarding
entering in such register may be resubmitted after elimination of
all the deficiencies referred to in the refusal.
(4) Latvijas Banka is entitled to cancel an entry in the
register of insurance and reinsurance brokers in any of the
following cases:
1) any of the cases referred to in Paragraph one of this
Section has been detected;
2) the insurance or reinsurance broker has not pursued
insurance or reinsurance distribution for more than a year;
3) the insurance or reinsurance broker has violated this Law,
the requirements of the laws and regulations issued on the basis
of this Law or directly applicable legal acts of the European
Union in the field of insurance or reinsurance distribution;
4) the insurance or reinsurance broker has violated the
requirements of the laws and regulations regarding the prevention
of money laundering and terrorism and proliferation
financing;
5) the insurance or reinsurance broker operating in another
Member State, in conformity with the principle of foundation or
freedom to provide services, has violated the requirements of the
laws protecting the public interests of the relevant Member State
or of other laws and regulations.
(5) Latvijas Banka shall cancel an entry in the register of
insurance and reinsurance brokers in any of the following
cases:
1) the insurance or reinsurance broker is being
liquidated;
2) the insurance or reinsurance broker requests cancellation
of the entry in the register of insurance and reinsurance
brokers.
(6) Upon evaluating the violation committed which allows
cancellation of the entry in the register of insurance and
reinsurance brokers, Latvijas Banka is entitled to implement one
or several of the following activities prior to cancellation of
the entry:
1) to warn the insurance or reinsurance broker and to
determine a reasonable time period for elimination of the
violations detected;
2) to determine reasonable restrictions for the operation of
the insurance or reinsurance broker.
(7) If an administrative act issued by Latvijas Banka
regarding cancellation of an entry made in the register of
insurance and reinsurance brokers or the activities provided for
in Paragraph six of this Section and implemented is being
appealed, it shall not suspend the operation of such act.
(8) Latvijas Banka shall inform the supervisory authority of
such Member State in which the insurance or reinsurance broker
has the right to pursue insurance or reinsurance distribution
regarding whether the entry made in relation to the insurance or
reinsurance broker in the register of insurance and reinsurance
intermediaries has been cancelled.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 10. Register of Insurance
Agents
(1) The following information shall be entered in the register
of insurance agents:
1) the firm name, registration number, legal address,
telephone number, electronic mail address of the insurance agent
and the website address where public access to the information
specified in this Law is ensured. In relation to an insurance
agent - natural person who has been registered in the Taxpayers'
Register of the State Revenue Service as a performer of economic
activity - the given name and surname, telephone number,
electronic mail address and the website address where public
access to the information specified in this Law shall be entered
in the register of insurance agents;
2) the given name and surname of the responsible person of the
insurance agent;
3) the Member State in which the insurance agent is entitled
to pursue insurance distribution in conformity with the principle
of foundation or freedom to provide services;
4) whether the insurance agent has the right to receive
insurance premiums and other payments according to the insurance
contract concluded.
(2) An insurance merchant or a branch of a foreign insurer
shall make changes to the register of insurance agents within
five days after receipt of the information referred to in Section
11, Paragraph four of this Law.
(3) An insurance merchant or a branch of a foreign insurer
shall be responsible for the correctness and completeness of the
information entered in the register of insurance agents.
(4) The register of insurance agents shall be available to the
public, it shall be publicly reliable, and any person has the
right to become acquainted with it on the website of the
insurance merchant or the branch of the foreign insurer.
(5) Latvijas Banka shall publish a list of such insurance
merchants and branches of foreign insurers on its website which
are maintaining the register of insurance agents with a reference
to the websites of insurance merchants and branches of foreign
insurers on which the register of insurance agents is
available.
[23 September 2021 / Amendment regarding the replacement of
the word "the Commission" with the words "Latvijas Banka" shall
come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 11. Requirements for the
Registration of the Insurance Agent and Conditions for the
Conclusion of a Distribution Contract
(1) An insurance merchant or a branch of a foreign insurer
shall register such insurance agent in the register of insurance
agents who has concluded a distribution contract with the
insurance merchant or the branch of the foreign insurer.
(2) An insurance merchant or a branch of a foreign insurer may
conclude the distribution contract referred to in Paragraph one
of this Section if the insurance agent complies with the
requirements of this Law and if the insurance merchant or the
branch of the foreign insurer has received the following
documents and information:
1) the following information regarding the responsible person
and documents certifying that he or she complies with the
requirements of Section 16, Paragraph three of this Law:
a) the given name, surname, personal identity number;
b) copies of documents certifying education;
c) a document issued by the national competent authority
certifying that none of the conditions referred to in Section 19,
Clause 1 of this Law applies to the responsible person;
2) the firm name (the given name and surname - for a natural
person who has been registered in the Taxpayers' Register of the
State Revenue Service as a performer of economic activity),
registration number, legal address (address of the place of
business), telephone number, electronic mail address of the
insurance agent and the website address where public access to
the information specified in this Law is ensured;
3) the list of such shareholders or members which have a
qualifying holding in the insurance agent, indicating the amount
of holding;
4) the list of such persons which have close links with the
insurance agent;
5) a certification that the qualifying holding and close links
referred to in Clauses 3 and 4 of this Paragraph do not restrict
the possibilities of Latvijas Banka to carry out the supervisory
functions;
6) a copy of the contract concluded with the credit
institution regarding opening of a separate cash account which
indicates that the monies in the account are monies acquired as a
result of the activities of the insurance agent in accordance
with the requirements of Section 31 of this Law, and information
regarding the procedure by which transfer of the funds received
from customers into a separate cash account in the credit
institution will be ensured. The requirements of this Clause
shall apply to insurance agents which are planning to receive
insurance premiums or other payments according to the insurance
contract concluded;
7) information regarding the procedure by which the insurance
agent shall ensure fulfilment of the requirements of Section 16
of this Law;
8) information regarding the procedure for the protection of
an information system;
9) information regarding the procedure for the fulfilment of
the requirements of the laws and regulations regarding the
prevention of money laundering and terrorism and proliferation
financing if the insurance agent is distributing life
insurance;
10) information regarding the procedure by which the insurance
agent examines complaints of customers;
11) information regarding the organisational structure of the
insurance agent - legal person, as well as regarding the division
of authorisation and obligations of the executive board and the
responsible person for insurance distribution;
12) a copy of the civil liability insurance contract referred
to in Section 28 of this Law or a guarantee issued by a credit
institution if an agreement has not been reached with the
insurance merchant or branch of the foreign insurer regarding
taking full responsibility for the losses caused to the customers
or other interested persons due to the mistake or negligence of
the insurance agent.
(3) An insurance merchant or a branch of a foreign insurer may
not conclude a distribution contract with the insurance agent
if:
1) all the documents referred to in Paragraph two of this
Section have not been submitted or the submitted documents
contain false or incomplete information;
2) the responsible person of the insurance agent does not
comply with the requirements of this Law.
(4) If changes are made to the information referred to in
Paragraph two, Clause 1, 2, 3, 4, or 5 of this Section, the
insurance agent shall inform the insurance merchant or the branch
of the foreign insurer within seven days after making
thereof.
(5) If amendments have been made to any of the documents
referred to in Paragraph two of this Section, the insurance agent
shall, within seven days after entering into effect thereof,
submit the relevant amended document or its copy to the insurance
merchant or the branch of the foreign insurer.
(6) The insurance merchant or the branch of the foreign
insurer shall cancel an entry in the register of insurance agents
if the distribution contract concluded between the insurance
merchant or the branch of the foreign insurer and the insurance
agent is terminated.
(7) The insurance merchant or the branch of the foreign
insurer shall develop and approve the procedure by which
fulfilment of the requirements of Sections 10, 11, and 12 of this
Law is ensured and shall ensure the conformity therewith.
[23 September 2021 / Amendment regarding the replacement of
the word "the Commission" with the words "Latvijas Banka" shall
come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 12. Provisions of the
Distribution Contract
The distribution contract referred to in Section 11, Paragraph
one and Section 13, Paragraph six of this Law shall contain:
1) the provisions of insurance distribution;
2) the rights of the insurance merchant or the branch of the
foreign insurer to terminate the distribution contract without
delay if:
a) the insurance agent has violated this Law, the requirements
of the laws and regulations issued on the basis of this Law or
directly applicable legal acts of the European Union in the field
of insurance or reinsurance distribution;
b) the insurance agent operating in a Member State, in
conformity with the principle of foundation or freedom to provide
services, has violated the requirements of the laws and
regulations protecting the public interests of the Member
State;
c) the insurance agent has violated the requirements of the
laws and regulations regarding the prevention of money laundering
and terrorism and proliferation financing;
d) Latvijas Banka has taken the decision to cancel the entry
made in the register of insurance agents in relation to the
insurance agent;
3) the rights of the insurance merchant or the branch of the
foreign insurer and the insurance agent to agree on additional
conditions for termination of the distribution contract;
4) other provisions which are necessary for fulfilment of the
requirements of this Law.
[23 September 2021 / Amendment regarding the replacement of
the word "the Commission" with the words "Latvijas Banka" shall
come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 13. Register of Ancillary
Insurance Intermediaries and Registration Requirements
(1) An insurance merchant, a branch of a foreign insurer, or
an insurance broker shall maintain the register of ancillary
insurance intermediaries. The following information shall be
entered in the register:
1) the firm name, registration number, legal address,
telephone number, and electronic mail address of the ancillary
insurance intermediary. In relation to an ancillary insurance
intermediary - natural person who has been registered in the
Taxpayers' Register of the State Revenue Service as a performer
of economic activity - the given name and surname, telephone
number, and electronic mail address shall be entered in the
register of ancillary insurance intermediaries;
2) the given name and surname of the responsible person of the
ancillary insurance intermediary;
3) the Member State in which the ancillary insurance
intermediary pursues insurance distribution in conformity with
the principle of foundation or freedom to provide services;
4) information regarding insurance complementary to the good
or service offered by the ancillary insurance intermediary;
5) whether this Law is applicable to the ancillary insurance
intermediary in accordance with Section 3, Paragraph two
thereof;
6) whether the ancillary insurance intermediary has the right
to receive insurance premiums and other payments according to the
insurance contract concluded.
(2) An insurance merchant, a branch of a foreign insurer, or
an insurance broker shall be responsible for the correctness and
completeness of the information entered in the register of
ancillary insurance intermediaries.
(3) If changes are made to the information referred to in
Paragraph one of this Section, the ancillary insurance
intermediary shall inform the insurance merchant, the branch of
the foreign insurer, or the insurance broker within seven days
after making thereof.
(4) The register of ancillary insurance intermediaries shall
be available to the public, it shall be publicly reliable, and
any person has the right to become acquainted with it on the
website of the insurance merchant, the branch of the foreign
insurer, or the insurance broker or on another website available
to the public with which the insurance or reinsurance broker has
agreed upon posting of such information.
(5) Latvijas Banka shall publish the list of such insurance
merchants, branches of foreign insurers, and insurance brokers on
its website which are maintaining the register of ancillary
insurance intermediaries with a reference to the websites of
insurance merchants, branches of foreign insurers, and insurance
brokers on which the register of ancillary insurance
intermediaries is available.
(6) The insurance merchant, branch of the foreign insurer, or
insurance broker shall register such ancillary insurance
intermediary in the register of ancillary insurance
intermediaries which has concluded a distribution contract with
the insurance merchant, branch of the foreign insurer, or
insurance broker.
(7) The insurance merchant, branch of the foreign insurer, or
insurance broker may conclude the distribution contract referred
to in Paragraph six of this Section if the ancillary insurance
intermediary conforms to the requirements of this Law.
(8) The provisions indicated in Section 12 of this Law, except
for the requirements of Section 12, Clause 2, Sub-clause "c",
shall be included in the distribution contract referred to in
Paragraph six of this Section.
(9) The insurance merchant, branch of the foreign insurer, or
insurance broker shall cancel an entry in the register of
ancillary insurance intermediaries if the distribution contract
concluded between the insurance merchant, branch of the foreign
insurer, or insurance broker is terminated.
(10) The insurance merchant, branch of the foreign insurer, or
insurance broker shall develop and approve the procedure by which
fulfilment of the requirements of this Section is ensured and
shall ensure the conformity therewith.
[23 September 2021 / Amendment regarding the replacement of
the word "the Commission" with the words "Latvijas Banka" shall
come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 14. Register of Employees
Directly Involved in Insurance or Reinsurance Distribution
(1) An insurance or reinsurance distributor shall maintain a
register in which the given name and surname of an employee
directly involved in insurance or reinsurance distribution, as
well as the date when he or she has started and ended the
fulfilment of the obligations of an employee directly involved in
insurance or reinsurance distribution are indicated.
(2) An insurance or reinsurance distributor shall publish a
list of such employees directly involved in insurance or
reinsurance distribution - the given name and surname - on the
website who perform insurance or reinsurance distribution outside
the working place or office. An insurance distributor who does
not have its own website shall publish the list of the
abovementioned persons on the website of such insurance or
reinsurance distributor which registered the relevant insurance
distributor, or on another website available to the public with
which the insurance or reinsurance distributor has agreed upon
posting of such information.
Chapter III
Provisions of the Operation of Insurance and Reinsurance
Distributors
Section 15. Restriction on the
Operation of an Insurance or Reinsurance Broker
An insurance or reinsurance broker is entitled to combine
insurance or reinsurance distribution with the operation of an
investment service provider in accordance with the procedures
laid down in the Financial Instrument Market Law, as well as with
signing of the insurance or reinsurance risk according to an
outsourcing contract which has been concluded with an insurance
or reinsurance merchant or a branch of a foreign insurer, or a
branch of a foreign reinsurer.
Section 16. Requirements for the
Responsible Person of the Insurance or Reinsurance Intermediary
and an Employee Directly Involved in Insurance or Reinsurance
Distribution
(1) The following natural persons may be the responsible
person of an insurance or reinsurance broker and an employee
directly involved in insurance or reinsurance distribution:
1) who have acquired appropriate higher education;
2) who have acquired the knowledge and skills recognised by
the association of insurance distributors necessary for insurance
or reinsurance distribution in accordance with the requirements
of this Law;
3) who have an impeccable reputation.
(2) If an insurance or reinsurance broker pursues insurance or
reinsurance distribution in another Member State, also a person
who complies with the requirements laid down for the particular
persons in the relevant Member State may be an employee directly
involved in insurance or reinsurance distribution of such a
broker.
(3) The following natural persons may be the responsible
person of an insurance agent and an employee directly involved in
insurance distribution:
1) who have acquired secondary education;
2) who have acquired the knowledge and skills necessary for
insurance distribution in accordance with the requirements of
this Law;
3) who have an impeccable reputation.
(4) If an insurance agent pursues insurance distribution in
another Member State, also a person who complies with the
requirements laid down for the particular persons in the relevant
Member State may be an employee directly involved in insurance
distribution of such an agent.
(5) The requirements laid down in this Law for the responsible
person of the insurance agent shall be applicable to an insurance
agent - natural person who has been entered in the commercial
register of the Enterprise Register as an individual merchant or
registered in the Taxpayers' Register of the State Revenue
Service as a performer of economic activity. If the insurance
agent - natural person - is employing an employee who pursues
insurance distribution, the requirements laid down in this Law
for an employee directly involved in insurance distribution of an
insurance agent shall be applicable to the relevant employee.
(6) An insurance merchant or a branch of a foreign insurer
which have registered an insurance agent in the register of
insurance agents shall be responsible for continuous conformity
of the insurance agent with the requirements laid down in Chapter
II of this Law and this Section.
Section 17. Requirements for an
Employee Directly Involved in Insurance or Reinsurance
Distribution of an Insurance or Reinsurance Merchant and a Branch
of a Foreign Insurer or a Branch of a Foreign Reinsurer
(1) The following natural persons may be an employee directly
involved in insurance or reinsurance distribution of an insurance
or reinsurance merchant and a branch of a foreign insurer or a
branch of a foreign reinsurer:
1) who have acquired secondary education;
2) who have acquired the knowledge and skills necessary for
insurance distribution in accordance with the requirements of
this Law;
3) who have an impeccable reputation.
(2) If an insurance company pursues insurance distribution in
another Member State, also a person who complies with the
requirements laid down for the particular persons in the relevant
Member State may be an employee directly involved in insurance or
reinsurance distribution of such an insurance company.
Section 18. Requirements for the
Responsible Person of the Ancillary Insurance Intermediary and an
Employee Directly Involved in Insurance or Reinsurance
Distribution
(1) The following natural persons may be the responsible
person of an ancillary insurance intermediary - legal person -
and an employee directly involved in insurance distribution:
1) who have acquired secondary education;
2) who have acquired the knowledge and skills necessary for
the operation of an ancillary insurance intermediary in
accordance with the requirements of this Law;
3) who have an impeccable reputation.
(2) If an ancillary insurance intermediary pursues insurance
distribution in another Member State, also a person who complies
with the requirements laid down for the particular persons in the
relevant Member State may be an employee directly involved in
insurance distribution of such an intermediary.
(3) The requirements laid down in Paragraph one of this Law
for the responsible person of the ancillary insurance
intermediary shall be applicable to an ancillary insurance
intermediary - natural person who has been entered in the
commercial register of the Enterprise Register as an individual
merchant or registered in the Taxpayers' Register of the State
Revenue Service as a performer of economic activity. If the
ancillary insurance intermediary - natural person - is employing
an employee who pursues insurance distribution, the requirements
laid down in Paragraph one of this Law for an employee directly
involved in insurance distribution of an ancillary insurance
intermediary shall be applicable to the relevant employee.
(4) An insurance merchant, a branch of a foreign insurer, or
an insurance broker which has registered an ancillary insurance
intermediary in the register of ancillary insurance
intermediaries shall ensure training of the responsible person
and employees directly involved in insurance distribution of such
ancillary insurance intermediary in order to provide thereto the
knowledge and skills necessary in accordance with the
requirements of this Law complementary to the good or service
offered by the ancillary insurance intermediary.
(5) An insurance merchant, a branch of a foreign insurer, or
an insurance broker which has registered an ancillary insurance
intermediary in the register of ancillary insurance
intermediaries shall be responsible for the conformity of the
responsible person and employees directly involved in insurance
distribution of such ancillary insurance intermediary with the
requirements of Paragraphs one, two of this Section and Section
21, Paragraph two of this Law.
(6) An insurance merchant, a branch of a foreign insurer, or
an insurance broker shall be responsible for the insurance
distribution performed by the ancillary insurance intermediary
registered in the register of ancillary insurance intermediaries
maintained thereby and for continuous conformity of the ancillary
insurance intermediary with the requirements laid down in Chapter
II of this Law and in this Section.
Section 19. Prohibition to be the
Responsible Person and Employee Directly Involved in Insurance or
Reinsurance Distribution
A person who complies with at least one of the following
conditions may not be the responsible person and an employee
directly involved in insurance or reinsurance distribution of an
insurance or reinsurance intermediary or ancillary insurance
intermediary:
1) he or she has been convicted of committing an intentional
criminal offence against the State, property or administrative
order, or of committing an intentional criminal offence of an
economic nature or while in State authority service, or of
committing a criminal offence related to terrorism, and the
criminal record for it has not been set aside or
extinguished;
2) the supervisory and control authority specified in the Law
on the Prevention of Money Laundering and Terrorism and
Proliferation Financing or the competent authority specified in
the Law on International Sanctions and National Sanctions of the
Republic of Latvia has imposed a sanction thereon and disclosed
the information on the sanction (except for a warning) for an
international or national sanction or violation of the laws and
regulations governing the prevention of money laundering and
terrorism and proliferation financing on its website, and less
than a year has passed since the day when the sanction was
imposed;
3) insolvency proceedings of a natural person have been
declared for him or her, and less than a year has passed since
the day of their termination.
[23 September 2021]
Section 20. Availability of
Information Necessary for the Fulfilment of the Requirements of
the Law
In order to assess the conformity of the person with the
requirements of this Law, the following persons have the right to
receive information from the Punishment Register regarding the
criminal record of a person:
1) an insurance merchant, a branch of a foreign insurer, or a
branch of a foreign reinsurer - regarding an employee and a
person who wishes to commence employment relationships with the
insurance merchant, the branch of the foreign insurer, or the
branch of the foreign reinsurer - in order to assess the
conformity of the person with the requirements of Section 17,
Paragraph one, Clause 3 of this Law;
2) an insurance or reinsurance broker - regarding an employee
and a person who wishes to commence employment relationships with
the insurance or reinsurance broker - in order to assess the
conformity of the person with the requirements of Section 16,
Paragraph one, Clause 3 of this Law;
3) an insurance merchant, a branch of a foreign insurer -
regarding the responsible person and the employee directly
involved in insurance distribution of the insurance agent who is
fulfilling or has expressed a wish to fulfil the relevant
obligations - in order to assess the conformity of the person
with the requirements of Section 16, Paragraph three, Clause 3 of
this Law;
4) an insurance merchant, a branch of a foreign insurer -
regarding the responsible person and the employee directly
involved in insurance distribution of the insurance merchant, the
ancillary insurance intermediary of the branch of the foreign
insurer who is fulfilling or has expressed a wish to fulfil the
relevant obligations - in order to assess the conformity of the
person with the requirements of Section 18, Paragraph one, Clause
3 of this Law;
5) an insurance broker - regarding the responsible person and
the employee directly involved in insurance distribution of the
ancillary insurance intermediary of the insurance broker who is
fulfilling or has expressed a wish to fulfil the relevant
obligations - in order to assess the conformity of the person
with the requirements of Section 18, Paragraph one, Clause 3 of
this Law.
Section 21. Prohibition to Fulfil
Obligations Related to Insurance or Reinsurance Distribution
(1) An insurance or reinsurance merchant, a branch of a
foreign insurer, a branch of a foreign reinsurer, an insurance or
reinsurance intermediary, or an ancillary insurance intermediary
has an obligation, by itself or upon request of Latvijas Banka,
to prohibit the responsible person or employee directly involved
in insurance distribution to fulfil obligations related to
insurance distribution if he or she:
1) does not comply with the requirements of Section 16,
Paragraph one, Clauses 2 and 3, Paragraph two, Paragraph three,
Clauses 2, 3, and Paragraph four, Section 17, Section 18,
Paragraph one, Clauses 2, 3 and Paragraph two or any of the
conditions referred to in Section 19 of this Law apply
thereto;
2) has significantly violated this Law, the requirements of
the laws and regulations issued on the basis of this Law or
directly applicable legal acts of the European Union in the field
of insurance or reinsurance distribution.
(2) The person referred to in Section 16, Paragraphs one and
three, Section 17, Paragraph one, and Section 18, Paragraph one
of this Law has an impeccable reputation if none of the
conditions referred to in Section 19 of this Law applies to such
person, as well as such circumstances have not been detected
which, upon continuation of obligations related to insurance or
reinsurance distribution by such person, may harm the reputation
of the insurance or reinsurance distributor, cause risk that the
insurance or reinsurance distributor is involved in illegal
activities, or endanger the rights or interests of customers.
(3) Appeal of the administrative act of Latvijas Banka
referred to in Paragraph one of this Section shall not suspend
the operation thereof.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 22. Restriction on Combining
Offices
(1) The responsible person and an employee directly involved
in insurance distribution of an insurance agent or ancillary
insurance intermediary are not entitled to fulfil the obligations
of a member of the executive board, the responsible person, and
an employee directly involved in insurance distribution
concurrently with several insurance distributors, except for the
case when insurance distributors are in one group of commercial
companies.
(2) A member of the executive board, the responsible person,
and an employee directly involved in insurance or reinsurance
distribution of an insurance or reinsurance broker are not
entitled to pursue insurance or reinsurance distribution
concurrently with another insurance or reinsurance distributor,
except for another insurance or reinsurance broker.
(3) An employee directly involved in insurance or reinsurance
distribution of an insurance or reinsurance merchant, a branch of
a foreign insurer, and a branch of a foreign reinsurer is not
entitled to pursue insurance or reinsurance distribution
concurrently with another insurance or reinsurance distributor,
except for the case when insurance distributors are in one group
of insurance commercial companies.
Section 23. Training
(1) The responsible person of an insurance or reinsurance
intermediary, ancillary insurance intermediary, and an employee
directly involved in insurance or reinsurance distribution of an
insurance or reinsurance distributor has an obligation to
continuously renew and supplement his or her knowledge and skills
which are necessary for insurance or reinsurance
distribution.
(2) In order to fulfil the requirements of Paragraph one of
this Section, the responsible person of an insurance or
reinsurance intermediary, ancillary insurance intermediary, and
an employee directly involved in insurance or reinsurance
distribution of an insurance or reinsurance distributor shall
receive, in the amount of at least 15 hours per year, training
organised or recognised by the insurance or reinsurance
distributor or an association of insurance distributors which
conforms to the type of the insurance or reinsurance distributor,
the properties of insurance or reinsurance, the aggregate of
tasks and operations which is necessary for insurance or
reinsurance distribution.
(3) An insurance or reinsurance merchant, a branch of a
foreign insurer, or a branch of a foreign reinsurer shall ensure
training of its employee directly involved in insurance or
reinsurance distribution, taking into account that specified in
Paragraph two of this Section. The insurance or reinsurance
merchant, the branch of the foreign insurer, or the branch of the
foreign reinsurer is entitled to transfer training of its
employees directly involved in insurance or reinsurance
distribution to an outsourcing service provider.
(4) An association of insurance distributors in which
insurance or reinsurance brokers have joined shall check the
conformity of the knowledge and skills of the responsible person
and an employee directly involved in insurance distribution of an
insurance or reinsurance broker with the requirements of this Law
and shall provide an opinion thereon. The insurance or
reinsurance broker shall be responsible for the fulfilment of the
requirements of Paragraphs one and two of this Section by the
responsible person and an employee directly involved in insurance
distribution of the insurance or reinsurance broker.
(5) An insurance merchant or a branch of a foreign insurer
which has registered an insurance agent shall check the
conformity of the knowledge and skills of the responsible person
and an employee directly involved in insurance distribution of
the insurance agent with the requirements of this Law. The
insurance merchant or the branch of the foreign insurer shall be
responsible for the fulfilment of the requirements of Paragraphs
one and two of this Section by the responsible person and an
employee directly involved in insurance distribution of the
insurance agent. The insurance merchant or the branch of the
foreign insurer does not have an obligation to perform the check
of the conformity of the knowledge and skills referred to in this
Paragraph if the check of the knowledge and skills of the
responsible person and directly involved employee of the
insurance agent - credit institution - is performed by an
association of insurance distributors which is registered with
Latvijas Banka in accordance with the procedures laid down in
Section 25 of this Law.
(6) An insurance merchant, a branch of a foreign insurer, or
an insurance broker which has registered an ancillary insurance
intermediary shall check the conformity of the knowledge and
skills of the responsible person and an employee directly
involved in insurance distribution of the ancillary insurance
intermediary with the requirements of this Law and shall be
responsible that the responsible person and employee directly
involved in insurance distribution of the ancillary insurance
intermediary meet the requirements of Paragraphs one and two of
this Section.
(7) An insurance merchant, a branch of a foreign insurer, or
an insurance broker which has registered an ancillary insurance
intermediary shall develop and approve the procedure by which
fulfilment of the requirements of Paragraph six of this Section
is ensured and shall ensure the conformity therewith.
(8) Latvijas Banka shall determine the minimum amount of the
knowledge and skills necessary for insurance or reinsurance
distribution.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 24. Procedure of the
Insurance Merchant, Branch of the Foreign Insurer, and Insurance
or Reinsurance Broker for Ensuring Fulfilment of the Requirements
of this Law
(1) An insurance merchant or a branch of a foreign insurer
shall develop and approve the procedure by which fulfilment of
the requirements of Section 16, Paragraph six, Section 17,
Section 18, Paragraphs four, five, and six, Section 19, Section
21, Paragraph two, and Section 23, Paragraphs one, three, five,
and six of this Law is ensured and shall ensure the conformity
therewith.
(2) The insurance merchant or the branch of the foreign
insurer shall submit the procedure referred to in Paragraph one
of this Section to Latvijas Banka in writing within 10 days after
approval thereof and shall inform it regarding any changes to
such procedure.
(3) The insurance merchant or the branch of the foreign
insurer shall, at least once a year, assess the conformity with
the procedure referred to in Paragraph one of this Section and
its conformity with the operation of the insurance merchant or
the branch of the foreign insurer. The insurance merchant or the
branch of the foreign insurer has an obligation to improve the
relevant procedure without delay after any significant changes to
its operation.
(4) The insurance merchant or the branch of the foreign
insurer shall determine which unit within the scope of the
management system will ensure the implementation of the procedure
referred to in Paragraph one of this Section and shall inform
Latvijas Banka regarding the responsible employee of such
unit.
(5) The insurance merchant or the branch of the foreign
insurer shall ensure registration of all the documents which are
related to fulfilment of the requirements of Section 16,
Paragraph six, Section 17, Section 18, Paragraphs four, five, and
six, Section 19, Section 21, Paragraph two, and Section 23,
Paragraphs one, three, five, and six of this Law is ensured. The
register shall be kept electronically, and it shall include texts
of the documents and amendments thereto so that it would be
possible to track all the entries made therein previously and
amendments thereto.
(6) The insurance or reinsurance broker shall ensure
registration of all the documents which are related to fulfilment
of the requirements of Section 16, Paragraphs one and two,
Section 18, Paragraphs four, five, and six, Section 19, Section
21, Paragraph two, and Section 23, Paragraphs one, four, and six
of this Law is ensured.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 25. Right of the Association
of Insurance Distributors to Provide an Opinion
(1) An association of insurance distributors only after
registration thereof with Latvijas Banka may commence provision
of opinions on the knowledge and skills acquired by the
responsible person of an insurance or reinsurance intermediary,
ancillary insurance intermediary and an employee directly
involved in insurance or reinsurance distribution of an insurance
or reinsurance distributor which are necessary for insurance or
reinsurance distribution.
(2) In order to achieve the registration referred to in
Paragraph one of this Section, the association of insurance
distributors shall submit to Latvijas Banka:
1) a submission for the registration referred to in Paragraph
one of this Section;
2) the training programme, indicating acquisition of which
knowledge and skills in relation to the properties of insurance
or reinsurance to be distributed, the tasks and operations to be
performed is possible, to which responsible persons of an
insurance or reinsurance intermediary, ancillary insurance
intermediary and to which employees directly involved in
insurance or reinsurance distribution of an insurance or
reinsurance distributor such training is provided for, as well as
information regarding the process of evaluation of the knowledge
and skills acquired.
(3) Latvijas Banka shall examine the submission for the
registration referred to in Paragraph one of this Section and
take the decision to register or to refuse to register within 30
days after receipt of the documents referred to in Paragraph two
of this Section if they have been drawn up in accordance with the
laws and regulations regarding the procedures for the development
and drawing up of documents.
(4) Upon examining the documents referred to in Paragraph two
of this Section, Latvijas Banka has the right to request that the
association of insurance distributors eliminates deficiencies in
the submitted documents and to determine a time period for
elimination of such deficiencies. The time period indicated in
Paragraph three of this Section is suspended until the day when
deficiencies are eliminated, but not later than for 30 days.
(5) Latvijas Banka shall take the decision to refuse the
registration referred to in Paragraph one of this Section if:
1) all the documents referred to in Paragraph two of this
Section have not been submitted within the time period stipulated
by Latvijas Banka or there is false or incomplete information in
the documents submitted, or they do not provide a clear overview
as to acquisition of what knowledge and skills necessary for
insurance or reinsurance distribution is possible during the
training process;
2) the association of insurance distributors does not provide
or refuses to provide the information referred to in Section 26
of this Law to Latvijas Banka;
3) the training programme does not ensure examination of
sufficiency of the knowledge and skills of the responsible person
of an insurance or reinsurance intermediary, ancillary insurance
intermediary and an employee directly involved in insurance or
reinsurance distribution of an insurance or reinsurance
distributor and conformity thereof with the requirements of this
Law, and the association of insurance distributors has not
eliminated the deficiencies detected in procedures within the
time period stipulated by Latvijas Banka;
4) the knowledge and skills acquired during the training
process are not sufficient to pursue insurance or reinsurance
distribution in accordance with the requirements of this Law and
the association of insurance distributors has not eliminated the
deficiencies detected in procedures within the time period
stipulated by Latvijas Banka;
5) the association of insurance distributors has not
eliminated the deficiencies detected in the submitted documents
within the time period stipulated by Latvijas Banka in accordance
with Paragraph four of this Section.
(6) If Latvijas Banka has taken the decision to refuse the
registration referred to in Paragraph one of this Section, the
submission for the registration referred to in Paragraph one of
this Section may be resubmitted after elimination of all the
deficiencies referred to in the refusal.
(7) Upon evaluation of any of the violations referred to in
Paragraph five, Clauses 2, 3, and 4 of this Section and detected
in the operation of the association of insurance distributors,
Latvijas Banka is entitled to express a warning to the
association of insurance distributors or to cancel the
registration referred to in Paragraph one of this Section.
(8) Latvijas Banka shall cancel the registration referred to
in Paragraph one of this Section if:
1) the association of insurance distributors requests
cancellation of its registration;
2) the association of insurance distributors is being
liquidated.
(9) Latvijas Banka shall publish information regarding the
registered association of insurance distributors on its website
alongside with information regarding training ensured
thereby.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 26. Right of Latvijas Banka
to Request Information and to Perform an Examination
Latvijas Banka has the right to request information and
documents from the association of insurance distributors
regarding training of the responsible person of an insurance or
reinsurance intermediary, ancillary insurance intermediary and an
employee directly involved in insurance or reinsurance
distribution of an insurance or reinsurance distributor in order
to examine the sufficiency of the knowledge and skills acquired
and the conformity thereof with the requirements of this Law.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 27. Opinion of the
Association of Insurance Distributors on the Knowledge and Skills
Necessary for Insurance and Reinsurance Distribution
The decision of the association of insurance distributors on
the provision of an opinion on the sufficiency of the knowledge
and skills of the responsible person of an insurance or
reinsurance intermediary, ancillary insurance intermediary and an
employee directly involved in insurance or reinsurance
distribution of an insurance or reinsurance distributor may be
contested by the addressee of the decision in Latvijas Banka, and
the decision of Latvijas Banka may be appealed to a court in
accordance with the procedures laid down in the Administrative
Procedure Law.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 28. Security of Civil
Liability
(1) An insurance or reinsurance intermediary shall insure its
civil liability which may set in when losses have been caused to
customers, insurance or reinsurance merchants, branch of a
foreign insurer, branch of a foreign reinsurer, or other persons
due to a mistake or negligence of the former. The insurance
contract shall be in effect in the territory of all the Member
States and in the territory of such foreign states in which the
insurance or reinsurance intermediary has the right to pursue
insurance or reinsurance distribution.
(2) The insurance or reinsurance intermediary is entitled to
choose a guarantee issued by a credit institution considered
equivalent to the civil liability insurance referred to in
Paragraph one of this Section which conforms to the minimum limit
of civil liability specified in accordance with Paragraph three
of this Section.
(3) The minimum limit of civil liability per year and for a
single insurance case shall be determined by the directly
applicable legal act of the European Union in the field of
insurance or reinsurance distribution. The minimum limit of civil
liability per year and for a single insurance case is reviewed
every five years, indexed by an amount which, in accordance with
the information provided by the statistical office Eurostat,
corresponds to those percentage changes of the consumer price
index that have taken place in the time period from the previous
revision day until the current revision day, by rounding it up to
the nearest 10 euros. Latvijas Banka shall inform insurance or
reinsurance intermediaries regarding the minimum limit of civil
liability per year and for a single insurance case by publishing
it on its website.
(4) If the minimum limit of civil liability per year and for a
single insurance case is increased in accordance with the
provisions of Paragraph three of this Section, the insurance or
reinsurance intermediary shall, within 30 days from the day of
entering into effect of the abovementioned limit, perform the
necessary operations to ensure fulfilment of the requirements of
Paragraphs one, two, and three of this Section.
(5) The civil liability insurance contract may provide for
deductible of the insurance or reinsurance intermediary up to EUR
10 000 if the following conditions are met:
1) the insurance or reinsurance intermediary ensures that the
equity capital always exceeds EUR 15 000;
2) there are enough funds in the separate cash account to
settle the liabilities regarding the insurance or reinsurance
premiums or other payments received by the insurance or
reinsurance intermediary according to the concluded insurance or
reinsurance contracts.
(6) In order for an insurance or reinsurance intermediary
which does not conform to the requirements of Paragraph five of
this Section to include deductible up to EUR 10 000 in the civil
liability insurance contract, it shall require the permission of
Latvijas Banka. In order to receive the permission of Latvijas
Banka for inclusion of deductible in the civil liability
insurance contract, the insurance or reinsurance intermediary
shall submit documents to Latvijas Banka confirming the security
necessary for execution of the deductible obligation.
(7) Latvijas Banka shall determine the requirements for the
insurance or reinsurance intermediary in relation to the security
necessary for execution of the deductible obligation.
(8) Latvijas Banka shall not give the permission for inclusion
of deductible in the civil liability insurance contract if the
security is not sufficient for execution of the deductible
obligation of the insurance or reinsurance intermediary or the
submitted documents do not provide a clear overview of the
existence and legality of the abovementioned security.
(9) It shall be provided for in the civil liability insurance
contract which has been concluded with an insurance or
reinsurance intermediary that the insurer reimburses losses
causally linked to a mistake or negligence by the insurance or
reinsurance distribution operation which has occurred during the
insurance period if the customer, insurance or reinsurance
merchant, branch of a foreign insurer, branch of a foreign
reinsurer, or another person brings a claim against the insurance
or reinsurance intermediary regarding reimbursement of losses
within three years after the end of the insurance period. Also a
longer time period for bringing of the claim may be provided for
in the civil liability insurance contract.
(10) The insurance or reinsurance intermediary shall notify
Latvijas Banka of early termination of the civil liability
insurance contract within seven days.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 29. Exemption from the Civil
Liability Security Requirement
(1) An insurance agent does not have an obligation to insure
its civil liability or to receive a guarantee issued by a credit
institution in accordance with the procedures laid down in
Section 28 of this Law if it has concluded a contract with an
insurance merchant or a branch of a foreign insurer specifying
that the insurance merchant or the branch of the foreign insurer
assumes responsibility for the losses caused due to a mistake or
negligence of the insurance agent to customers, insurance or
reinsurance merchants, branch of a foreign insurer, branch of a
foreign reinsurer, or other interested persons.
(2) An insurance merchant, a branch of a foreign insurer, or
an insurance broker which has registered an ancillary insurance
intermediary shall be responsible for the losses caused due to a
mistake or negligence of such ancillary insurance intermediary to
customers, insurance merchants, branch of a foreign insurer, or
other persons.
(3) An insurance broker which has registered an ancillary
insurance intermediary and is responsible for insurance
distribution performed thereby shall ensure that its civil
liability insurance or the guarantee issued by the credit
institution also applies to the losses caused due to a mistake or
negligence of the ancillary insurance intermediary.
Section 30. Requirements in Relation
to the Share Capital
(1) The share capital of an insurance or reinsurance broker
may not be less than EUR 15 000.
(2) If a branch of a foreign insurance or reinsurance broker,
except for the case referred to in Paragraph three of this
Section, wishes to pursue insurance or reinsurance distribution
in the Republic of Latvia, it shall deposit the amount of money
referred to in Paragraph one of this Section as a security
deposit in a credit institution registered in the Republic of
Latvia. The deposit shall be freely accessible, it may not be
encumbered, and its transfer shall be only possible with the
permission of Latvijas Banka.
(3) If a branch of an insurance or reinsurance broker of a
foreign state which has joined the Organisation for Economic
Co-operation and Development wishes to pursue insurance or
reinsurance distribution in the Republic of Latvia, it shall
deposit not less than 25 per cent from the amount of money
referred to in Paragraph one of this Section as a security
deposit in a credit institution registered in the Republic of
Latvia. The deposit shall be freely accessible, it may not be
encumbered, and its transfer shall be only possible with the
permission of Latvijas Banka.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 31. Right to Receive
Insurance or Reinsurance Premiums or Other Payments and the
Separate Cash Account
(1) An insurance or reinsurance intermediary and an ancillary
insurance intermediary have the right to receive insurance or
reinsurance premiums or other payments according to the insurance
or reinsurance contract concluded if the insurance or reinsurance
merchant, the branch of the foreign insurer, the branch of the
foreign reinsurer, or the customer has authorised the insurance
or reinsurance intermediary or the ancillary insurance
intermediary to receive the relevant payments.
(2) An insurance or reinsurance intermediary or an ancillary
insurance intermediary which is receiving insurance or
reinsurance premiums and other payments according to the
insurance or reinsurance contract concluded shall ensure that the
funds obtained from insurance or reinsurance distribution are
held at a credit institution in a separate cash account
separately from the monies of the insurance or reinsurance
intermediary or the ancillary insurance intermediary. The
insurance or reinsurance intermediary or the ancillary insurance
intermediary shall inform the credit institution in writing that
the monies in the account have been obtained from insurance or
reinsurance distribution, as well as shall ensure recording of
such monies and the claims and liabilities arising from them
according to insurance and reinsurance merchants, branches of
foreign insurers, branches of foreign reinsurers, insurance
policy holders, and reinsurance policy holders.
(3) An insurance or reinsurance intermediary or an ancillary
insurance intermediary shall use the funds of customers held in
the separate cash account opened in a credit institution only for
making of the payments referred to in Section 45 of this Law, as
well for the commissions for the insurance or reinsurance
premiums received in the separate cash account.
(4) In case of insolvency of an insurance or reinsurance
intermediary or an ancillary insurance intermediary the monies in
the account referred to in Paragraph two of this Section are not
included in such property of the insurance or reinsurance
intermediary or the ancillary insurance intermediary from which
expenses of insolvency proceedings or liquidation are covered and
claims of creditors are satisfied, however, after initiation of
insolvency proceedings are disbursed, without delay, to insurance
or reinsurance merchants, branches of foreign insurers, branches
of foreign reinsurers, and other creditors according to insurance
and reinsurance contracts.
(5) It shall be permitted to invest the monies referred to in
Paragraph two of this Section in fixed-term deposits in such
credit institutions the conditions of which provide for a
possibility of early termination of the operation of such
fixed-term deposit contracts and receipt of the invested funds
within 30 days from the day of sending a notification regarding
termination of the fixed-term deposit contract.
Section 32. Requirements in Relation
to Publishing of the Annual Statement
(1) An insurance or reinsurance broker shall ensure that the
annual statement after approval thereof is made public not later
than on the fifteenth date of the fifth calendar month of the
year following the reporting year. The insurance or reinsurance
broker may publish the annual statement on its website or choose
another appropriate information medium or place for making the
information public.
(2) An insurance or reinsurance broker which has an obligation
to submit the consolidated annual statement shall ensure that the
consolidated annual statement after approval thereof is made
public not later than on the fifteenth date of the eighth
calendar month of the year following the reporting year. The
insurance or reinsurance broker may publish the consolidated
annual statement on its website or choose another appropriate
information medium or place for making the information
public.
(3) An insurance or reinsurance broker shall also include
information in the annual statement regarding the amount of the
signed insurance premiums in division according to the types of
life and non-life insurance, as well as according to insurance
merchants registered in the Republic of Latvia, branches of
foreign insurers registered in the Republic of Latvia, and
insurance merchants not registered in the Republic of Latvia.
Chapter IV
Relationship between the Insurance and Reinsurance Distributor
and the Customer
Section 33. General Provisions for
the Relationship between the Insurance Distributor and the
Customer
(1) An insurance distributor, upon distributing insurance,
shall always act fairly, justly, and professionally in conformity
with the interests of the customer.
(2) Any information related to insurance distribution,
including marketing notifications addressed by the insurance
distributor to customers, shall be true, clear and shall not be
misleading.
(3) The insurance distributor shall not receive remuneration
and shall not reimburse its employees or shall not assess the
results of their work in any way that is in contradiction with
its obligation to conform to the interests of the customer.
(4) The insurance distributor shall not link the remuneration
system to sales targets or other aspects which might stimulate
its employees to recommend a specific insurance product to a
customer if the insurance distributor may offer a different
insurance product which conforms better to the interests of the
customer.
Section 34. Information to be
Provided Prior to Entering into an Insurance Contract
(1) Before conclusion of an insurance contract an insurance
intermediary has an obligation to provide at least the following
information to the customer in a timely manner:
1) that it is an insurance intermediary;
2) the firm name, registration number, legal address,
telephone number, and electronic mail address of the insurance
intermediary. A natural person who acts on behalf of the
insurance intermediary - legal person - shall additionally
indicate his or her given name and surname, except for the case
when insurance is distributed with the intermediation of a
website or a mobile application. An insurance intermediary -
natural person who has been registered in the Taxpayers' Register
of the State Revenue Service as a performer of economic activity
- shall indicate his or her given name and surname, telephone
number, and electronic mail address;
3) whether the insurance intermediary provides recommendations
regarding the insurance products intended for sale;
4) the procedures by which complaints and disputes between the
insurance intermediary and the customer shall be examined in
accordance with Sections 46 and 47 of this Law;
5) the register in which the insurance intermediary has been
included and the way of ascertaining its registration;
6) whether the insurance intermediary pursues insurance
distribution on behalf and in the interests of a customer or an
insurance merchant, or a branch of a foreign insurer;
7) whether the insurance intermediary has directly or
indirectly acquired holding in the insurance merchant or foreign
insurer (which has established a branch of a foreign insurer in
the Republic of Latvia and the insurance services of which are
distributed by the insurance intermediary) which comprises 10 and
more per cent from the number of the shares with voting rights or
the share capital of the parent company of the insurance merchant
or the branch of the foreign insurer;
8) whether the insurance merchant, its parent company, or
foreign insurer which has established a branch of a foreign
insurer in the Republic of Latvia has directly or indirectly
acquired holding in the insurance intermediary which comprises 10
and more per cent from the number of the shares with voting
rights or the share capital of the insurance intermediary;
9) in relation to insurance contracts which are being offered
or regarding which a recommendation is being provided:
a) whether the insurance intermediary provides recommendations
on the basis of a fair analysis of products. The insurance agent
has an obligation to inform the customer that it is not entitled
to provide a recommendation on the basis of a fair analysis of
products;
b) that the insurance intermediary has contractual obligations
to pursue insurance distribution in the interests of only one or
several specific insurance merchants or branches of foreign
insurers. In such case the insurance intermediary shall indicate
the firm names and legal addresses of insurance merchants and
branches of foreign insurers;
c) that the insurance intermediary does not have contractual
obligations to pursue insurance distribution in the interests of
only one or several specific insurance merchants or branches of
foreign insurers and that the insurance intermediary does not
provide recommendations on the basis of a fair analysis of
products. In such case the insurance intermediary shall indicate
the firm names and legal addresses of such insurance merchants or
branches of foreign insurers in the interests of which it pursues
or is entitled to pursue insurance distribution;
10) the type of remuneration of the insurance intermediary for
the particular insurance contract offered and whether the
insurance intermediary receives a remuneration in relation to the
insurance contract:
a) for insurance distribution which is directly paid by the
customer;
b) for insurance distribution which is included in the
insurance premium;
c) remuneration of any other type, other economic benefits of
all types, or other monetary or non-monetary benefits or
inducements in relation to the insurance contract;
d) any combination of such types of remuneration which are
referred to in Sub-clauses "a", "b", and "c" of this Clause;
11) regarding the evaluated insurance products and the type of
remuneration that would be received by the insurance broker from
the relevant insurer if an insurance contract would be
concluded.
(2) Before conclusion of an insurance contract an insurance
merchant or a branch of a foreign insurer has an obligation to
provide at least the following information to the customer in a
timely manner:
1) that it is an insurance merchant or a branch of a foreign
insurer;
2) the firm name, registration number, home state, legal
address, telephone number, and electronic mail address of the
insurance merchant or the branch of the foreign insurer. A
natural person who acts on behalf of the insurance merchant or
the branch of the foreign insurer shall additionally indicate his
or her given name and surname, except for the case when insurance
is distributed with the intermediation of a website or a mobile
application. The information referred to in the first sentence of
this Clause shall be indicated in all the documents which are
issued to the insurance policy holder;
3) whether the insurance merchant or the branch of the foreign
insurer provides recommendations regarding insurance
products;
4) the procedures by which complaints and disputes between the
insurance merchant or the branch of the foreign insurer and the
customer shall be examined in accordance with Sections 46 and 47
of this Law;
5) the type of remuneration of an employee directly involved
in insurance or reinsurance distribution of the insurance
merchant or the branch of the foreign insurer for the particular
insurance contract offered;
6) the law which will be applied for regulation of the
contractual relationship arising from the insurance contract, or
the possibilities of choosing the law, if any.
(3) If the customer pays the remuneration for insurance
distribution directly to the insurance intermediary, then the
insurance intermediary has an obligation to inform the customer
regarding its amount or, if it is not possible, regarding the
method for the calculation of such remuneration.
(4) If, according to the insurance contract, the customer has
an obligation, after conclusion thereof, to pay any other payment
which is not part of the insurance premium, the insurance
intermediary shall inform the customer regarding such
payment.
(5) If, according to the insurance contract, the customer has
an obligation, after conclusion thereof, to pay any other payment
which is not part of the insurance premium, the insurance
merchant or the branch of the foreign insurer shall inform the
customer regarding such payment.
(6) If a dispute has arisen between the insurance distributor
and the insurance policy holder - natural person - after
conclusion of the insurance contract, the insurance distributor
has an obligation to prove fulfilment of the requirements of this
Section.
Section 35. Information to be
Provided before Conclusion of a Life Insurance Contract
(1) Before conclusion of a life insurance contract the
insurance distributor has an obligation to provide the following
information to the customer in addition to the information
referred to in Section 34, Paragraphs one and two of this
Law:
1) in relation to a life insurance merchant or a branch of a
foreign insurer:
a) the Member State in which the head office is located and
the address of the head office;
b) the place where one may become acquainted with the report
on the solvency and financial state of the insurance merchant or
the branch of the foreign insurer;
2) in relation to insurance liabilities:
a) the insurance amount included in the insurance contract and
the conditions of the possibilities;
b) the term of operation of the life insurance contract;
c) the conditions for termination of the life insurance
contract;
d) the time periods and procedures for the payment of an
insurance premium;
e) the procedures for the calculation and granting of
bonuses;
f) the procedures for the determination of the surrender sum
and the sum of savings, and the conditions for guaranteed
disbursement;
g) the insurance premium and insurance sum separately for each
insured risk, as well as the insurance compensation or the
procedures for the calculation thereof for each case of
insurance;
h) the assets corresponding the life assurance contract linked
to the market and the procedures for the calculation of the
insurance sum;
i) the procedures for the application of the notice period of
the life insurance contract;
j) general information regarding the taxes applicable to the
type of insurance.
(2) If the potential insurance compensation indicated in the
life insurance product upon expiration of the time period of the
insurance contract may be higher than that to be disbursed
according to the insurance contract, the insurance distributor
shall make the insurance policy holder acquainted with an example
of calculation of the potential insurance compensation upon
expiration of the time period of the insurance contract on the
basis of the calculation of insurance premiums specified in the
insurance contract in which three different interest rates are
used. The insurance distributor shall inform the insurance policy
holder that the example of the calculation is only a forecast
which is based on theoretical assumptions and that the right to
claim does not arise for the insurance policy holder on the basis
of such example. The requirements of this Paragraph shall not be
applied to life insurance without cash accumulation.
(3) Before conclusion of the life insurance contract the
insurance distributor shall also conform to the provisions of
Section 34, Paragraphs three, four, five, and six of this
Law.
Section 36. Requirements for
Distribution
(1) Before conclusion of an insurance contract an insurance
distributor shall, on the basis of the information provided by
the customer, ascertain the demands and needs of the customer and
shall provide objective information to the customer, in a
comprehensible form, regarding the insurance product so that the
customer might take a decision on the basis of the information
received.
(2) The insurance distributor shall ensure that the insurance
contract recommended to the customer conforms to the demands and
needs of the customer.
(3) If the recommendation is provided before conclusion of a
particular insurance contract, the insurance distributor shall
provide a personalised recommendation to the customer, explaining
why this particular insurance product conforms the best to the
demands and needs of the customer.
(4) The insurance distributor shall prepare the information
specified in Paragraphs one and three of this Section according
to the complexity of the insurance product offered and the
category of the customer.
(5) Before conclusion of the insurance contract regardless of
whether recommendations are provided and whether the insurance
product, in accordance with Section 40 of this Law, is part of
the package of the insurance product offered by the insurance
distributor, the insurance distributor shall provide the customer
with the relevant information regarding the offered insurance
products in a comprehensible form so that the customer could take
a decision on the basis of the information received. Such
information is prepared according to the complexity of the
insurance product and the category of the customer.
(6) The information referred to in Paragraph five of this
Section regarding non-life insurance products which are
distributed in the ways of non-life insurance specified in
Section 19, Paragraph one of the Insurance and Reinsurance Law
shall be provided, using a standardised document of non-life
insurance information in printed form or electronically on a
durable medium.
(7) The standardised document of non-life insurance
information referred to in Paragraph six of this Section shall be
prepared by the developer of the non-life insurance product.
(8) Latvijas Banka shall determine the requirements in
relation to the preparation and content of the information
document of the insurance product.
[23 September 2021 / Amendment regarding the replacement of
the word "the Commission" with the words "Latvijas Banka" shall
come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 37. Information Provided by
Ancillary Insurance Intermediaries
(1) Before conclusion of an insurance contract an ancillary
insurance intermediary has an obligation to provide at least the
following information to the customer:
1) that it is an ancillary insurance intermediary;
2) the firm name, registration number, legal address,
telephone number, and electronic mail address of the ancillary
insurance intermediary. The natural person who is acting on
behalf of the ancillary insurance intermediary - legal person -
shall, in addition, indicate his or her given name and surname.
The ancillary insurance intermediary - natural person who has
been registered as a performer of economic activity in the
Taxpayers' Register of the State Revenue Service - shall indicate
his or her given name and surname, telephone number, and
electronic mail address;
3) the procedures by which complaints and disputes between the
ancillary insurance intermediary and the customer shall be
examined in accordance with Sections 46 and 47 of this Law;
4) the register in which the ancillary insurance intermediary
has been included and the way of ascertaining its
registration;
5) the type of remuneration of the ancillary insurance
intermediary for the particular insurance contract offered.
(2) An insurance merchant, a branch of a foreign insurer, or
an insurance broker, upon distributing insurance with the
assistance of such ancillary insurance intermediary to which this
Law does not apply in accordance with Section 3, Paragraph two of
this Law shall ensure that:
1) before conclusion of an insurance contract the ancillary
insurance intermediary provides at least the following
information to the customer:
a) the firm name, registration number, legal address,
telephone number, and electronic mail address of the ancillary
insurance intermediary. The natural person who is acting on
behalf of the ancillary insurance intermediary - legal person -
shall, in addition, indicate his or her given name and surname.
The ancillary insurance intermediary - natural person who has
been registered as a performer of economic activity in the
Taxpayers' Register of the State Revenue Service - shall indicate
his or her given name and surname, telephone number, and
electronic mail address;
b) the procedures by which complaints and disputes between the
ancillary insurance intermediary and the customer shall be
examined in accordance with Section 46 of this Law;
2) the ancillary insurance intermediary, upon performing
insurance distribution, conforms to the requirements of Sections
33 and 40 of this Law;
3) before conclusion of the insurance contract the customer
receives the standardised information document of the insurance
product referred to in Section 36, Paragraph six of this Law.
Section 38. Exemption from the
Obligation to Provide Information
(1) An insurance distributor does not have an obligation to
meet the requirements of Sections 34, 35, and 36 of this Law if
it is distributing insurance of large risks or if it is
participating in public procurements or procurements of public
service providers.
(2) Insurance distributors need not provide the information
referred to in Sections 43 and 44 of this Law to a professional
client within the meaning of Section 124.1, Paragraph
two of the Financial Instrument Market Law.
Section 39. Information
Conditions
(1) An insurance distributor has an obligation to provide the
information referred to in Sections 34, 35, 36, and 43 of this
Law to the customer:
1) in writing in printed form, except for the cases referred
to in Paragraphs two and three of this Section;
2) clearly and precisely, in a way comprehensible to the
customer;
3) in Latvian or in another language regarding which it has
agreed upon with the customer;
4) free of charge.
(2) The insurance distributor may provide the information
referred to in Sections 34, 35, 36, and 43 of this Law to the
customer electronically on a durable medium if the following
conditions are met concurrently:
1) the use of the durable medium is appropriate for insurance
distribution in accordance with Paragraph five of this
Section;
2) the customer was given an opportunity to choose the form of
receipt of the information - in printed form or electronically on
a durable medium - and the customer has chosen to receive the
information electronically on a durable medium.
(3) The insurance distributor may provide the information
referred to in Sections 34, 35, 36, and 43 of this Law to the
customer on the website if it is addressed to the customer
personally or if the following conditions are met
concurrently:
1) the provision of the information on the website is
appropriate for insurance distribution in accordance with
Paragraph five of this Section;
2) the customer has agreed to receive the abovementioned
information on the website;
3) the address of the website and an indication where the
relevant information can be accessed on the website has been
notified to the customer electronically;
4) it is ensured that the abovementioned information is
available on the website for as long as it is justifiably
necessary for the customer to become acquainted with it.
(4) If the information referred to in Sections 34, 35, 36, and
43 of this Law is provided electronically, using a durable medium
or a website, the insurance distributor has an obligation to
provide the abovementioned information upon request of the
customer also in printed form free of charge.
(5) The provision of information electronically, using a
durable medium or a website, shall be considered appropriate for
insurance distribution if the insurance distributor has evidence
that the customer has regular access to the Internet. The
electronic mail address indicated by the customer shall be
considered such evidence.
(6) If insurance is being distributed, using a telephone or
another equivalent means of communication (voice telephony), the
insurance distributor shall, prior to the conclusion of the
insurance contract, provide the information and the information
document of the insurance product to the customer in accordance
with the laws and regulations regarding a distance contract
regarding provision of financial services. If the customer in
accordance with Paragraph two of this Section has chosen to
receive the information electronically on a durable medium, the
insurance distributor shall provide the information to the
customer in accordance with Paragraph one of this Section
immediately after conclusion of the insurance contract.
Section 40. Cross-selling
(1) If an insurance product is offered together with an
ancillary product or service which is not insurance, as part of a
package of insurance product or a contract, the insurance
distributor has an obligation to inform the customer regarding
the possibility to buy each component separately and to provide a
description of such components to the customer, as well as
information regarding the price and costs of each component.
(2) If the insurance risks or the insurance coverage is
different depending on the components included in the contract or
the package of insurance product, the insurance distributor shall
provide an adequate description of the components of the contract
or package of insurance product and inform regarding the way in
which the interaction of components modifies the insurance risk
or the insurance coverage.
(3) If an insurance product is complementary to a good or a
service which is not insurance, as part of the package of
insurance product or the contract offered by the insurance
distributor, the insurance distributor shall offer the customer
the possibility of buying the good or service separately.
(4) The requirements of Paragraph three of this Section shall
not apply if an insurance product is ancillary to an investment
service or ancillary investment service within the meaning of the
Financial Instrument Market Law, a consumer credit contract
within the meaning of the Consumer Rights Protection Law, or a
payment account within the meaning of the Law on Payment Services
and Electronic Money.
(5) The requirements of this Section shall not restrict the
rights to distribute an insurance product which provide coverage
for various types of risks.
(6) In the cases referred to in Paragraphs one and three of
this Section the insurance distributor has an obligation to
specify the demands and needs of the customer in relation to the
insurance products that form part of the package of insurance
product or the contract.
(7) Latvijas Banka has the right to prohibit the offering of
an insurance product together with any ancillary good or service
which is not insurance, as part of a package of insurance product
or contract offered by the insurance distributor, if it could be
detrimental to the interests of customers.
[23 September 2021 / Amendment regarding the replacement of
the word "the Commission" with the words "Latvijas Banka" shall
come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 41. Product Oversight and
Governance Requirements
(1) An insurance merchant or a branch of a foreign insurer, as
well as insurance intermediaries which develop insurance products
for distribution to customers, shall develop and review a
procedure for the development and approval of each insurance
product or a procedure for the performance of significant changes
in existing products, before they are distributed. The
abovementioned procedure shall be proportionate and appropriate
to the nature of the insurance product.
(2) The procedure referred to in Paragraph one of this Section
shall specify the target market for each product, ensure that all
material risks to such identified target market are assessed and
that the intended distribution strategy is consistent with the
identified target market. The insurance merchant or the branch of
the foreign insurer shall perform appropriate measures for the
distribution of the insurance product on the identified target
market.
(3) The insurance merchant or the branch of the foreign
insurer shall regularly review the insurance products offered or
the target market, taking into account any event that could
materially affect the potential risk to the identified target
market, to assess at least whether the product remains consistent
with the needs of the identified target market and whether the
intended distribution strategy remains appropriate.
(4) The insurance merchant or the branch of the foreign
insurer, as well as insurance intermediaries which develop
insurance products, shall make available to insurance
distributors all appropriate information regarding the insurance
product and its approval, including information regarding the
identified target market of the product.
(5) If the insurance distributor offers insurance products
which it does not develop, it shall have in place appropriate
procedures to obtain the information referred to in Paragraph
four of this Section and to understand each insurance product and
the identified target market.
(6) The procedures and measures referred to in this Section
shall be without prejudice to other requirements of this Law,
including those relating to disclosure, suitability, or
appropriateness of information, identification and management of
conflicts of interest, and inducements.
(7) The requirements of this Law shall not apply to
distribution of the insurance of large risks.
Section 42. Conflict of Interests
and Prevention Thereof
(1) An insurance merchant, a branch of a foreign insurer, or
an insurance intermediary distributing insurance-based investment
products shall perform efficient organisational and
administrative measures and activities with a view to prevent the
conflicts of interest referred to in Paragraphs three, four, and
five of this Section from adversely affecting the interests of
its customers.
(2) An insurance merchant, a branch of a foreign insurer, or
an insurance intermediary distributing insurance-based investment
products shall ensure that the measures referred to in Paragraph
one of this Section are proportionate to the activities
performed, the insurance products sold, and the type of the
distributor.
(3) An insurance merchant, a branch of a foreign insurer, or
an insurance intermediary shall implement all the necessary
measures to identify conflicts of interest which, upon
performance of any activities of insurance distribution, occur
among the insurance merchant, the branch of the foreign insurer,
and the insurance intermediary themselves, including their
managers and employees, or any person who has close links with
the insurance merchant, the branch of the foreign insurer, and
the insurance intermediary within the meaning of the Insurance
and Reinsurance Law, and their customers or between one customer
and another.
(4) If organisational or administrative measures taken by the
insurance merchant, the branch of the foreign insurer, or the
insurance intermediary in accordance with Paragraphs one and two
of this Section to manage conflicts of interest are not
sufficient to ensure that risks of damage to customer interests
will be prevented, the insurance merchant, the branch of the
foreign insurer, or the insurance intermediary shall disclose to
the customer the nature or sources of the conflict of interest,
in good time before the conclusion of an insurance contract.
(5) The insurance merchant, the branch of the foreign insurer,
or the insurance intermediary shall ensure that the information
referred to in Paragraph four of this Section is provided, using
a durable medium, and includes sufficient detail to enable the
customer to take a decision, on the basis thereof, with respect
to the insurance distribution activities in the context of which
the conflict of interest arises.
(6) The provisions of this Section shall apply to the
insurance merchant, the branch of the foreign insurer, or the
insurance intermediary upon distribution of insurance-based
investment products.
Section 43. Information to Customer
Regarding Insurance-based Investment Products
(1) Before conclusion of insurance contracts an insurance
merchant, a branch of a foreign insurer, or an insurance
intermediary shall provide, in good time, information to
customers regarding distribution of insurance-based investment
products, all costs, and payments to be made.
(2) The following shall be indicated in the information
referred to Paragraph one of this Section:
1) if recommendations are provided - whether the insurance
merchant, the branch of the foreign insurer, or the insurance
intermediary will provide the customer with the periodic
assessment of the suitability of the insurance-based investment
products recommended to the customer, referred to in Section 44
of this Law;
2) in relation to the insurance-based investment products and
proposed investment strategies - explanations and warnings
regarding the risks associated with the insurance-based
investment products or the particular investment strategies
proposed;
3) in relation to all costs and payments to be made -
explanations regarding the distribution of the insurance-based
investment products, including the costs of recommendations,
where relevant, the costs of the insurance-based investment
product recommended or marketed to the customer and how the
customer may pay for it, also including any third party
payments.
(3) The information regarding all costs and payments which are
related to the distribution of the insurance-based investment
products and which do not arise from setting in of the market
risk event included in the insurance contract is provided in
aggregated form to allow the customer to understand the overall
costs and payments and their effect on the return of the
investment. Upon request of the customer, the insurance merchant,
the branch of the foreign insurer, or the insurance intermediary
shall provide a detailed information regarding the costs and
payments. The insurance merchant, the branch of the foreign
insurer, or the insurance intermediary shall provide the
abovementioned information to the customer on a regular basis, at
least annually, during the term of operation of the insurance
contract.
(4) The insurance merchant, the branch of the foreign insurer,
or the insurance intermediary shall provide the information
specified in this Section to the customer in a comprehensible
form for the customer to be able to understand the nature and
risks of the insurance-based investment product offered and to
take a decision on such investment.
(5) If the insurance merchant, the branch of the foreign
insurer, or the insurance intermediary pays or receives any
remuneration or commission, provides or receives any non-monetary
benefit in connection with the distribution of an insurance-based
investment product or an ancillary service to or by any party,
except for the customer or a person acting on behalf of the
customer, it shall be considered that it has fulfilled the
requirements of Section 33, Paragraph one and Section 42 of this
Law only where the remuneration or non-monetary benefit:
1) does not have a detrimental impact on the quality of the
service provided to the customer;
2) does not impair the obligation of the insurance merchant,
the branch of the foreign insurer, or the insurance intermediary
to act honestly, fairly, and professionally according to the
interests of the customer.
(6) If a dispute has arisen between the insurance distributor
and the insurance policy holder - natural person - after
conclusion of the insurance contract, the insurance distributor
has an obligation to prove fulfilment of the requirements of this
Section.
Section 44. Assessment of
Suitability and Appropriateness of an Insurance-based Investment
Product and Reporting to Customers
(1) The insurance merchant, the branch of the foreign insurer,
or the insurance intermediary, upon recommending insurance-based
investment products to the customer which are suitable for him or
her and, in particular, conform to the risk tolerance of the
customer and his or her ability to bear losses, has an obligation
to specify:
1) the knowledge and experience of the customer in the
investment field in relation to the insurance-based investment
product offered;
2) the financial situation of the customer, including the
ability to bear losses;
3) the investment objectives of the customer, including
understanding of the potential risks.
(2) The insurance merchant, the branch of the foreign insurer,
or the insurance intermediary, upon providing a recommendation
regarding an insurance-based investment product and recommending
the customer to buy an insurance-based investment product
together with any additional product or service which is not
insurance, as part of the package of insurance product or the
contract, shall ensure that the joint package of the product or
the contract is appropriate for the customer and conforms to his
or her needs.
(3) If the insurance merchant, the branch of the foreign
insurer, or the insurance intermediary, upon offering an
insurance-based investment product to the customer, does not
provide a recommendation with an assessment that the intended
insurance service or product is appropriate for the needs of the
customer, the insurance merchant, the branch of the foreign
insurer, or the insurance intermediary has an obligation to ask
the customer to provide information regarding his or her
knowledge and experience in the field of investments which apply
to the particular type of the product or service offered or
demanded. The insurance merchant, the branch of the foreign
insurer, or the insurance intermediary, upon offering the
customer to buy an insurance-based investment product together
with any additional product or service which is not insurance, as
part of the package of insurance product or the contract, shall
ensure that the joint package of the product or the contract is
appropriate for the customer and his or her needs.
(4) If the insurance merchant, the branch of the foreign
insurer, or the insurance intermediary considers, on the basis of
the information received in accordance with Paragraph three of
this Section, that the product is not appropriate for the
customer, the insurance merchant, the branch of the foreign
insurer, or the insurance intermediary shall warn the customer to
that effect. The insurance merchant, the branch of the foreign
insurer, or the insurance intermediary may provide the
abovementioned warning in a standardised format.
(5) If the customer does not provide the information referred
to in Paragraph three of this Section or provides insufficient
information regarding his or her knowledge and experience, the
insurance merchant, the branch of the foreign insurer, or the
insurance intermediary shall warn the customer that it is not in
a position to determine whether the insurance-based investment
product intended is appropriate for him or her. The insurance
merchant, the branch of the foreign insurer, or the insurance
intermediary may provide the abovementioned warning in a
standardised format.
(6) The insurance merchant, the branch of the foreign insurer,
or the insurance intermediary, upon offering an insurance-based
investment product to the customer, but without providing a
recommendation, need not obtain information regarding his or her
knowledge and experience in the field of investments if the
following conditions are met concurrently:
1) the insurance-based investment product is related to an
investment in non-complex financial instruments in accordance
with the provisions of Section 126.2, Paragraph
twelve, Clause 1 of the Financial Instrument Market Law;
2) the insurance-based investment product is distributed upon
initiative of the customer or potential customer;
3) the customer or potential customer has been informed that
the insurance merchant, the branch of the foreign insurer, or the
insurance intermediary, upon offering the insurance-based
investment product, does not assess the appropriateness thereof
for the customer, therefore, the customer does not benefit from
the corresponding protection. Such a warning may be provided in a
standardised format;
4) the insurance merchant, the branch of the foreign insurer,
or the insurance intermediary conforms to the requirements of
Section 42 of this Law in relation to the prevention of a
conflict of interests.
(7) The insurance merchant, the branch of the foreign insurer,
or the insurance intermediary shall register a contract with the
customer which includes the rights and obligations of the
parties, other terms according to which the insurance merchant,
the branch of the foreign insurer, or the insurance intermediary
will provide services to the customer, or also a reference to
additional documents where the customer may become acquainted
with such terms.
(8) The insurance merchant, the branch of the foreign insurer,
or the insurance intermediary shall, using a durable medium,
provide periodic reports to the customer on the services
provided, taking into account the type and complexity of
insurance-based investment products and the nature of the service
provided to the customer, as well as the costs associated with
the transactions and services undertaken on behalf of the
customer, if such costs exist.
(9) In relation to an insurance-based investment product the
insurance merchant, the branch of the foreign insurer, or the
insurance intermediary shall, prior to the conclusion of the
contract, specify the recommendations provided in the suitability
statement and whether the insurance-based investment product
meets the preferences, objectives, and other characteristics of
the customer in conformity with the requirements of Section 39,
Paragraphs one, two, and four of this Law. Such statement and
information may be provided, using a durable medium.
(10) If the insurance contract is being concluded, using
distance means of communication which prevents the prior delivery
of the suitability statement, the insurance merchant, the branch
of the foreign insurer, or the insurance intermediary may provide
the suitability statement, using a durable medium, immediately
after the insurance contract has been concluded, if the following
conditions are met concurrently:
1) the customer has consented to receiving the suitability
statement without undue delay after the conclusion of the
insurance contract;
2) the insurance merchant, the branch of the foreign insurer,
or the insurance intermediary has offered the customer the option
of delaying the conclusion of the insurance contract in order to
receive the suitability statement before conclusion of the
contract.
(11) If the insurance merchant, the branch of the foreign
insurer, or the insurance intermediary has informed the customer
that it will carry out a periodic assessment of suitability, the
periodic report shall contain an updated statement of how the
insurance-based investment product meets the preferences,
objectives and other characteristics of the customer.
Section 45. Protection of a Customer
in Relation to Payment of an Insurance Premium
A payment of an insurance premium made by a customer according
to the insurance contract to an insurance intermediary or an
ancillary insurance intermediary in any case shall be considered
a payment made to an insurance merchant or a branch of a foreign
insurer, but a payment made by an insurance merchant or a branch
of a foreign insurer to an insurance intermediary or an ancillary
insurance intermediary shall not be considered a payment made to
a customer until the moment when the customer actually receives
the monies.
Section 46. Procedures for the
Examination of Complaints
(1) An insurance or reinsurance distributor has an obligation
to ensure efficient procedure for the examination of complaints
of the customers which includes the procedures for the
examination of complaints, the examination of the facts indicated
in complaints, and the prevention of the potential conflict of
interests. The procedure for the examination of complaints shall
be approved by the executive board of the insurance or
reinsurance distributor. Written information regarding the
procedure for the examination of complaints must be freely
accessible at the place where the insurance or reinsurance
distribution services are provided and on the website of the
insurance or reinsurance distributor, if such has been set
up.
(2) The insurance or reinsurance distributor has an obligation
to provide a justified written answer to the customer complaint
within 20 days from the day of submitting the complaint.
(3) If it is not possible to provide the answer within the
time period referred to in Paragraph two of this Section due to
objective reasons, the insurance and reinsurance distributor has
an obligation to provide justified information regarding the
necessity to extend the provision of the answer and a reasonable
time period when the answer is to be provided.
(4) The insurance or reinsurance distributor who receives a
complaint regarding another market participant, but is not
entitled to examine it shall, within seven days from the day of
receipt of the complaint, forward it to the relevant market
participant and inform the customer thereof.
(5) Latvijas Banka shall determine the procedures for the
examination and performance of analysis of the complaints
received regarding insurance or reinsurance distributors and the
procedures by which exchange of information related to the
complaints received shall take place, and also the requirements
in relation to keeping the register of the complaints received
and answers provided.
[23 September 2021 / Amendment regarding the replacement of
the word "the Commission" with the words "Latvijas Banka" shall
come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 47. Out-of-court Redress
(1) Disputes between an insurance merchant, a branch of a
foreign insurer, an insurance agent, an ancillary insurance
intermediary registered by an insurance merchant or a branch of a
foreign insurer and the customer shall be examined by the
authority (ombudsman) which has been established by an
association of insurance distributors joining insurance merchants
and branches of a foreign insurer.
(2) Disputes between an insurance or reinsurance broker, an
ancillary insurance intermediary registered by an insurance or
reinsurance broker and the customer shall be examined by the
authority (ombudsman) which has been established by an
association of insurance distributors joining insurance or
reinsurance brokers.
(3) The authorities (ombudsmen) established by the association
of insurance distributors referred to in Paragraphs one and two
of this Section, upon examination of cross-border disputes, shall
cooperate with persons executing out-of-court redress.
Chapter V
Insurance and Reinsurance Distribution in Member States and
Foreign States
Section 48. Exercise of the Freedom
to Provide Services in a Member State
(1) An insurance or reinsurance intermediary or an ancillary
insurance intermediary which, in conformity with the principle of
freedom to provide services, wishes to pursue insurance or
reinsurance distribution in another Member State shall notify
Latvijas Banka of its intention by submitting a relevant written
submission thereto and informing as to in which Member State it
wishes to distribute insurance or reinsurance services. The
insurance agent shall indicate the firm name, registration
number, legal address, telephone number, and electronic mail
address of the insurance merchant on behalf and in the interests
of which it has intended to act, but the ancillary insurance
intermediary - the firm name, registration number, legal address,
telephone number, and electronic mail address of the insurance
merchant or the insurance or reinsurance broker on behalf and in
the interests of which it has intended to act. In addition to the
abovementioned, the ancillary insurance intermediary shall also
indicate the type of insurance it wishes to distribute.
(2) Latvijas Banka shall, within 30 days after receipt of the
submission referred to in Paragraph one of this Section, examine
it and inform the supervisory authority of the relevant Member
State regarding the intention of the insurance or reinsurance
intermediary or the ancillary insurance intermediary to pursue
insurance or reinsurance distribution in such Member State, in
conformity with the principle of freedom to provide services.
(3) After sending of the information referred to in Paragraph
two of this Section to the supervisory authority of the Member
State and upon approval by the supervisory authority of the
Member State that it has received such information, Latvijas
Banka shall inform the insurance or reinsurance intermediary or
the ancillary insurance intermediary:
1) regarding sending of the information to the supervisory
authority of the relevant Member State;
2) that the supervisory authority of the Member State has
received the information sent by Latvijas Banka;
3) that the insurance or reinsurance intermediary or the
ancillary insurance intermediary may commence insurance or
reinsurance distribution in the relevant Member State;
4) regarding the possibility for the insurance or reinsurance
intermediary or the ancillary insurance intermediary to become
acquainted with the requirements of the laws protecting public
interests to be conformed to upon provision of the insurance
distribution services in the relevant Member State.
(4) Latvijas Banka need not submit the information referred to
in Paragraph two of this Section to the supervisory authority of
the Member State if the financial situation of the insurance or
reinsurance intermediary or the ancillary insurance intermediary
is not stable or the insurance or reinsurance intermediary or the
ancillary insurance intermediary has not eliminated the violation
of this Law previously detected by Latvijas Banka. If Latvijas
Banka decides not to submit the information to the supervisory
authority of the Member State, it shall, within 30 days after
receipt of the submission referred to in Paragraph one of this
Section, send the relevant decision to the insurance or
reinsurance intermediary or the ancillary insurance
intermediary.
(5) The insurance or reinsurance intermediary or the ancillary
insurance intermediary may commence pursuing of insurance or
reinsurance distribution in another Member State in conformity
with the principle of freedom to provide services after it has
received the notification of Latvijas Banka referred to in
Paragraph three of this Section.
(6) The insurance or reinsurance intermediary or the ancillary
insurance intermediary shall, within 30 days prior to making
amendments to the information referred to in Paragraph one of
this Section, inform Latvijas Banka thereof in writing. Latvijas
Banka shall, within 30 days after receipt of the abovementioned
information, inform the supervisory authority of the relevant
Member State regarding such amendments.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 49. Exercise of the Freedom
to Provide Services in the Republic of Latvia
(1) In order for an insurance or reinsurance intermediary or
ancillary insurance intermediary of another Member State to be
able to commence pursuing of insurance or reinsurance
distribution in the Republic of Latvia in conformity with the
principle of freedom to provide services, Latvijas Banka shall
receive a notification of the supervisory authority of the Member
State in which the information referred to in Section 48,
Paragraph one of this Law has been included. Latvijas Banka shall
approve receipt of the abovementioned notification without
delay.
(2) An insurance or reinsurance intermediary or ancillary
insurance intermediary of a Member State shall, in conformity
with the principle of freedom to provide services, commence
insurance or reinsurance distribution in the Republic of Latvia
from the day when it has received a notification from the
supervisory authority of the relevant Member State regarding
sending of the notification referred to in Paragraph one of this
Section to Latvijas Banka.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 50. Opening of a Branch in a
Member State
(1) An insurance or reinsurance intermediary or ancillary
insurance intermediary which wishes to open a branch in another
Member State shall notify Latvijas Banka of its intention in
writing.
(2) The insurance or reinsurance intermediary or the ancillary
insurance intermediary shall include the following information in
the submission regarding opening of a branch:
1) the Member State in which it wishes to open a branch;
2) the types of insurance or reinsurance it wishes to
distribute;
3) the address of the branch to be opened in the Member State
to be used for sending and receipt of information;
4) information regarding the head of the branch certifying his
or her compliance with the requirements of Paragraph three of
this Section;
5) the firm name, registration number, legal address,
telephone number, and electronic mail address of the insurance
merchant on behalf and in the interests of which it wishes to
operate.
(3) A natural person who complies with the requirements laid
down for the responsible person in Section 16, Paragraph one or
three or Section 18, Paragraph one of this Law may be the head of
the branch of the insurance or reinsurance intermediary or the
ancillary insurance intermediary.
(4) Latvijas Banka shall, within 30 days after receipt of the
submission referred to in Paragraph two of this Section, examine
it and inform the supervisory authority of the relevant Member
State regarding the intention of the insurance or reinsurance
intermediary or the ancillary insurance intermediary to open a
branch.
(5) After sending of the information referred to in Paragraph
four of this Section to the supervisory authority of the Member
State and receipt of approval that the supervisory authority of
the Member State has received such information, Latvijas Banka
shall inform the insurance or reinsurance intermediary or the
ancillary insurance intermediary thereof.
(6) Latvijas Banka need not send the information referred to
in Paragraph four of this Section to the supervisory authority of
the relevant Member State if the financial situation of the
insurance or reinsurance intermediary or the ancillary insurance
intermediary is not stable, the head of the branch does not
comply with the requirements of Paragraph three of this Section,
or the insurance or reinsurance intermediary or the ancillary
insurance intermediary has not eliminated the violation of this
Law detected by Latvijas Banka in its previous operation. If
Latvijas Banka decides not to send the information to the
supervisory authority of the relevant Member State, it shall,
within 30 days after receipt of the submission referred to in
Paragraph two of this Section, send the relevant decision to the
insurance or reinsurance intermediary or the ancillary insurance
intermediary.
(7) After receipt of the information provided by the
supervisory authority of the relevant Member State, Latvijas
Banka shall, without delay, inform the insurance or reinsurance
intermediary or the ancillary insurance intermediary in writing
regarding the requirements of the laws protecting public
interests to be complied with upon provision of the insurance
distribution services in the relevant Member State.
(8) After receipt of the information referred to in Paragraph
seven of this Section or within 30 days from the day when
Latvijas Banka has sent a notification to the supervisory
authority of the relevant Member State, the insurance or
reinsurance intermediary or the ancillary insurance intermediary
may open a branch and commence the provision of insurance
distribution services in the relevant Member State.
(9) The insurance or reinsurance intermediary or the ancillary
insurance intermediary shall, within 30 days prior to making
amendments to the information referred to in Paragraph two of
this Section, inform Latvijas Banka thereof in writing. Latvijas
Banka shall, within 30 days after receipt of the abovementioned
information, inform the supervisory authority of the relevant
Member State regarding such amendments.
(10) The provisions of this Section shall apply to any
continuous operation of an insurance or reinsurance intermediary
or an ancillary insurance intermediary in the Member State if it
is pursued with the intermediation of such office established in
the Member State which is managed by an employee of the insurance
or reinsurance intermediary or the ancillary insurance
intermediary or another person to whom the insurance or
reinsurance intermediary or the ancillary insurance intermediary
has granted permanent authorisation to act on its behalf.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 51. Opening of a Branch in
the Republic of Latvia
(1) In order for an insurance or reinsurance intermediary or
an ancillary insurance intermediary of another Member State to be
able to open a branch in the Republic of Latvia, Latvijas Banka
shall receive a notification of the supervisory authority of the
relevant Member State in which the information referred to in
Section 50, Paragraph two of this Law has been included. Latvijas
Banka shall approve receipt of the notification without
delay.
(2) Latvijas Banka shall, within 30 days after receipt of the
notification referred to in Paragraph one of this Section, inform
the supervisory authority of the relevant Member State regarding
the requirements of the laws protecting public interests to be
complied with upon provision of the insurance distribution
services in the Republic of Latvia.
(3) A branch of an insurance or reinsurance intermediary or a
branch of an ancillary insurance intermediary of the Member State
may commence insurance or reinsurance distribution in the
Republic of Latvia immediately after receipt of the information
sent by Latvijas Banka from the supervisory authority of the
Member State or after expiry of the time period referred to in
Paragraph two of this Section.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 52. Provision of Information
Regarding Insurance or Reinsurance Distribution in a Member
State
(1) Latvijas Banka shall inform the European Insurance and
Occupational Pensions Authority (hereinafter - the EIOP
Authority) regarding such insurance or reinsurance intermediaries
or ancillary insurance intermediaries which, in accordance with
Sections 48 and 50 of this Law, have notified of the intention to
distribute insurance or reinsurance in another Member State.
(2) An insurance merchant or a branch of a foreign insurer has
an obligation to inform Latvijas Banka regarding the fact that
the entry made in the register of insurance agents in relation to
an insurance agent which, in conformity with the principle of
freedom to provide services, pursues insurance or reinsurance
distribution or has opened a branch in the Member State has been
cancelled.
(3) An insurance merchant, a branch of a foreign insurer, or
an insurance broker has an obligation to inform Latvijas Banka
regarding the fact that the entry made in the register of
ancillary insurance intermediaries in relation to an ancillary
insurance intermediary which, in conformity with the principle of
freedom to provide services, pursues insurance or reinsurance
distribution or has opened a branch in the Member State has been
cancelled.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 53. Opening of a Branch in a
Foreign State
(1) An insurance or reinsurance intermediary which wishes to
open a branch in a foreign state shall notify Latvijas Banka of
its intention in writing.
(2) The insurance or reinsurance intermediary shall include
the following information in the submission regarding opening of
a branch in a foreign state:
1) the foreign state in which it wishes to open a branch;
2) the types of insurance or reinsurance it wishes to
distribute;
3) the address of the branch to be opened in the foreign state
to be used for sending and receipt of information;
4) information regarding the head of the branch certifying his
or her compliance with the requirements of Section 50, Paragraph
three of this Law;
5) the firm name, registration number, legal address,
telephone number, and electronic mail address of the insurance
merchant or the branch of the foreign insurer on behalf and in
the interests of which it wishes to operate.
(3) Latvijas Banka shall, within 30 days after receipt of all
the necessary information referred to in Paragraph two of this
Section, examine it.
(4) Latvijas Banka shall take the decision to refuse to open a
branch in a foreign state if:
1) the financial situation of the insurance or reinsurance
intermediary is not stable;
2) the head of the branch does not comply with the
requirements of Section 50, Paragraph three of this Law;
3) the insurance or reinsurance intermediary has not
eliminated the violation of the law detected by Latvijas Banka in
its previous operation.
(5) The insurance or reinsurance intermediary which has
received a permission of Latvijas Banka to open a branch in a
foreign state shall, without delay, inform Latvijas Banka
regarding all subsequent changes to the information referred to
in Paragraph two of this Section.
(6) Latvijas Banka shall inform the European Commission
regarding significant problems which the insurance or reinsurance
intermediary encounters in commencing or performing insurance or
reinsurance distribution in foreign states.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 54. Restriction on a Branch
of a Foreign Insurance or Reinsurance Intermediary to Exercise
the Freedom to Provide Services in a Member State
A branch of a foreign insurance or reinsurance intermediary is
not entitled to provide services in Member States according to
the principle of freedom to provide services.
Section 55. Information Regarding
the Requirements of the Laws Protecting Public Interests
Latvijas Banka shall post information on its website regarding
the requirements of the laws protecting public interests which
are to be complied with upon pursuing insurance and reinsurance
distribution in the Republic of Latvia.
[23 September 2021 / Amendment regarding the replacement of
the word "the Commission" with the words "Latvijas Banka" shall
come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 56. Non-fulfilment of
Obligations
(1) If Latvijas Banka detects that an insurance or reinsurance
intermediary or an ancillary insurance intermediary of a Member
State which, in conformity with the principle of freedom to
provide services, pursues insurance and reinsurance distribution
in the Republic of Latvia performs operations that do not comply
with the requirements of the laws and regulations of the Republic
of Latvia governing insurance or reinsurance distribution, it
shall, without delay, inform the supervisory authority of the
relevant Member State thereof.
(2) If Latvijas Banka, after it has informed the supervisory
authority of the relevant Member State in accordance with
Paragraph one of this Section that an insurance or reinsurance
intermediary or an ancillary insurance intermediary of such
Member State which, in conformity with the principle of freedom
to provide services, pursues insurance and reinsurance
distribution in the Republic of Latvia keeps performing
operations that are in contradiction with the requirements of the
laws and regulations of the Republic of Latvia governing
insurance or reinsurance distribution, it shall inform the
supervisory authority of the relevant Member State and perform
measures for elimination of such violations or decide on
imposition of the sanctions specified in this Law, if necessary,
also on prohibition to continue insurance or reinsurance
distribution in the Republic of Latvia.
(3) If Latvijas Banka detects that a branch of an insurance or
reinsurance intermediary or of an ancillary insurance
intermediary of another Member State performs operations which do
not conform to the requirements of Chapter IV of this Law or to
the requirements of the laws and regulations referred to in
Section 55 of this Law, it shall, without delay, request the
insurance or reinsurance intermediary or the ancillary insurance
intermediary of the Member State to terminate such
operations.
(4) If Latvijas Banka detects that a branch of an insurance or
reinsurance intermediary or of an ancillary insurance
intermediary of another Member State performs operations which do
not conform to the laws and regulations of the Republic of Latvia
governing insurance or reinsurance distribution and if the
supervision of such operations is not within the competence of
Latvijas Banka, it shall, without delay, inform the supervisory
authority of the relevant Member State regarding its findings in
order to ensure that the relevant insurance or reinsurance
intermediary or ancillary insurance intermediary eliminates the
violations detected.
(5) If after the operations of Latvijas Banka referred to in
Paragraph three or four of this Section a branch of an insurance
or reinsurance intermediary or of an ancillary insurance
intermediary of another Member State keeps performing operations
that do not conform to the requirements of the laws and
regulations of the Republic of Latvia governing insurance or
reinsurance distribution, Latvijas Banka shall inform the
supervisory authority of the relevant Member State thereof and
perform measures for elimination of such violations or decide on
imposition of the sanctions specified in this Law, if necessary,
also on prohibition to continue insurance or reinsurance
distribution in the Republic of Latvia.
(6) If immediate action is necessary for the purpose of
protecting the rights of customers who are consumers within the
meaning of the Consumer Rights Protection Law, Latvijas Banka has
the right to perform measures without conforming to the
procedures laid down in Paragraphs one, two, three, four, and
five of this Section in order to eliminate the detected
violations or to decide on imposition of the sanctions specified
in this Law, if necessary, also on prohibition to continue
insurance or reinsurance distribution in the Republic of
Latvia.
(7) If Latvijas Banka has received information from the
supervisory authority of the host Member State regarding the
operation of an insurance or reinsurance intermediary or an
ancillary insurance intermediary which does not conform to the
laws and regulations of the relevant Member State governing
insurance or reinsurance distribution, it shall, as soon as
possible, perform the necessary measures in order to ensure that
the relevant insurance or reinsurance intermediary or ancillary
insurance intermediary eliminates the particular violations.
Latvijas Banka shall inform the supervisory authority of the
relevant host Member State regarding the measures performed.
(8) Latvijas Banka is entitled to turn to the EIOP Authority
and request its assistance in solving the issues referred to in
this Section.
(9) Latvijas Banka shall inform the supervisory authority of
the home state, the European Commission, and the EIOP Authority
regarding the cases when the measures referred to in Paragraphs
two, five, and six of this Section have been performed.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 57. Division of Competence
Between the Supervisory Authorities of the Home State and the
Host State
(1) Latvijas Banka as the supervisory authority of the host
state shall ensure that commencement of insurance distribution in
the Republic of Latvia and the information provided to the
customer conforms to the requirements of Sections 10, 11, 12, 13,
14, Section 16, Paragraph six, Section 17, Section 18, Paragraphs
four, five, and six, Section 21, Paragraph two, Sections 23, 24,
Section 29, Paragraph two, and Chapter IV of this Law.
(2) Latvijas Banka as the supervisory authority of the host
state has the right to perform the operations provided for in
this Law in order to ensure fulfilment of the requirements of
Paragraph one of this Section.
(3) If the primary place of business of an insurance or
reinsurance intermediary or an ancillary insurance intermediary
of a Member State is located in the Republic of Latvia, not in
the home state, Latvijas Banka may agree with the supervisory
authority of the home state that it will act as the supervisory
authority of the home state in order to ensure conformity with
the requirements of this Law.
(4) Latvijas Banka as the supervisory authority of the home
state shall, without delay, inform the insurance or reinsurance
intermediary or the ancillary insurance intermediary and the EIOP
Authority regarding the agreement referred to in Paragraph three
of this Section.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 58. Right to Prohibit
Insurance Distribution in the Republic of Latvia
(1) Latvijas Banka may take the decision to prohibit an
insurance distributor registered in another Member State from
distributing insurance in the Republic of Latvia with the
intermediation of a branch or, in conformity with the principle
of freedom to provide services, to prohibit the relevant
operation if it significantly endangers the rights of customers
who are consumers within the meaning of the Consumer Rights
Protection Law and is performed in order to avoid conformity with
the requirements of the laws and regulations applicable to an
insurance distributor registered in the Republic of Latvia.
(2) Latvijas Banka shall inform the supervisory authority of
the home state regarding taking of the decision referred to in
Paragraph one of this Section.
(3) Latvijas Banka is entitled to turn to the EIOP Authority
and request its assistance in solving the issue referred to in
this Section.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Chapter VI
Supervision of Insurance and Reinsurance Distribution
Section 59. Supervisory
Authority
(1) Supervision of insurance and reinsurance distribution
shall be performed by Latvijas Banka.
(2) Latvijas Banka shall supervise the branches of the
insurance or reinsurance distributors registered in the Republic
of Latvia and created in Member States, as well as the insurance
or reinsurance distribution in other Member States performed by
the insurance or reinsurance distributors registered in the
Republic of Latvia in conformity with the principle of freedom to
provide services. Upon performing supervision, Latvijas Banka
shall cooperate and consult with the supervisory authorities of
the relevant Member State.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 60. Registration Fee and
Financing of the Operation of the Supervisory Authority
(1) An insurance or reinsurance broker and a branch of a
foreign insurance or reinsurance broker shall pay to Latvijas
Banka:
1) for examination of the documents submitted for registration
in the register of insurance and reinsurance brokers - EUR
250;
2) for examination of amendments to the procedures referred to
in Section 8, Paragraph one, Clauses 8, 9, 10, 11, 12, 13, 14,
and 15 of this Law submitted for registration - EUR 40.
(2) Prior to commencement of operation in the Republic of
Latvia, a branch of an insurance or reinsurance broker of another
Member State shall pay EUR 250 to Latvijas Banka.
(3) An insurance or reinsurance broker, a branch of an
insurance or reinsurance broker of another Member State and a
branch of a foreign insurance or reinsurance broker shall pay to
Latvijas Banka up to 0.7 per cent (inclusive) of reporting year
remuneration for insurance or reinsurance distribution, but not
less than EUR 150 and not more than EUR 1000 per year.
(4) [23 September 2021 / See Paragraph 11 of Transitional
Provisions]
(5) [23 September 2021 / See Paragraph 11 of Transitional
Provisions]
(6) [23 September 2021 / See Paragraph 11 of Transitional
Provisions]
(7) [23 September 2021 / See Paragraph 11 of Transitional
Provisions]
[23 September 2021; 13 October 2022 / Amendments to
the Section shall come into force on 1 January 2023. See
Paragraphs 11 and 14 of Transitional Provisions]
Section 61. Reports on the Operation
of Insurance or Reinsurance Intermediaries
Latvijas Banka is entitled to request reports from insurance
or reinsurance intermediaries, branches of foreign insurance or
reinsurance intermediaries, and branches of insurance or
reinsurance intermediaries of another Member State on the
operation thereof for the needs of supervision and to determine
the form, content, and term of submission of such reports.
[23 September 2021 / Amendment regarding the replacement of
the word "the Commission" with the words "Latvijas Banka" shall
come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 62. Cooperation of
Supervisory Authorities of Member States and Mutual Exchange of
Information
(1) In order to ensure fulfilment of the requirements of this
Law, Latvijas Banka, if necessary, shall cooperate and consult
with the supervisory authorities of other Member States.
(2) Upon examination of a submission regarding entering of an
insurance or reinsurance broker in the register of insurance or
reinsurance brokers, as well as during the course of supervision
of the registered insurance or reinsurance broker, Latvijas Banka
shall consult with the supervisory authority of the relevant
Member State, assessing the compliance of the responsible person
or an employee directly involved in insurance or reinsurance
distribution with the requirements of this Law.
(3) If necessary, Latvijas Banka shall inform the supervisory
authority of the Member State referred to in Paragraph two of
this Section regarding any circumstances which affect the
compliance of the responsible person or an employee directly
involved in insurance or reinsurance distribution with the
requirements of this Law and which are important to the
supervisory authorities of other Member States which register
insurance or reinsurance brokers, as well as continuously
supervise fulfilment of the conditions for their operation.
(4) Latvijas Banka shall inform the supervisory authority of
the Member State regarding cancellation of an entry in the
register of insurance or reinsurance brokers, the register of
insurance agents, or the register of ancillary insurance
intermediaries, regarding sanctions and measures which have been
imposed thereby on an insurance or reinsurance distributor
registered in the Republic of Latvia which pursues insurance or
reinsurance distribution in the territory of the relevant Member
State.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 63. Prohibition to Disclose
Information
(1) Information regarding an insurance or reinsurance
distributor and its customer which has not been previously
published in accordance with the procedures laid down by law or
disclosure of which is not determined in other laws, or which has
not been approved as publicly available information by Latvijas
Banka shall be considered restricted access information, and
Latvijas Banka only has the right to disclose it to third parties
in the form of a report or summary so that it would be impossible
to identify any particular insurance or reinsurance distributor
or its customer. The status of the restricted access information
referred to in this Paragraph shall also be applicable to the
information regarding the insurance or reinsurance distributor
and its customer, and also the activities of the insurance or
reinsurance distributor and its customer if insolvency
proceedings have been declared in respect of the insurance or
reinsurance distributor or liquidation thereof has been
initiated, or it has been liquidated.
(2) If insolvency proceedings of a legal person have been
declared for an insurance or reinsurance distributor or its
liquidation has been initiated, restricted access information
which does not apply to third persons that are involved in
operations directed towards improvement of the financial
situation of the insurance or reinsurance distributor may be
disclosed upon examination of civil cases.
(3) Latvijas Banka is entitled to disclose the restricted
access information referred to in Paragraph one of this Section
in the cases specified in the Insurance and Reinsurance Law and
in accordance with the procedures for the exchange and disclosure
of restricted access information.
[23 September 2021 / Amendment to Paragraph one regarding
the replacement of the words "council of the Commission" with the
words "Latvijas Banka" and amendment regarding the replacement of
the word "the Commission" with the words "Latvijas Banka" shall
come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 64. Right of Latvijas Banka
in Performance of Supervision of Insurance or Reinsurance
Distribution
(1) Latvijas Banka has the right, according to its competence,
to request that an insurance or reinsurance distributor performs
the necessary measures to eliminate the detected violations of
this Law, the legal acts issued on the basis of this Law, the Law
on the Prevention of Money Laundering and Terrorism and
Proliferation Financing, or directly applicable legal acts of the
European Union in the field of insurance or reinsurance
distribution.
(2) Latvijas Banka has the right to request information and
documents from insurance or reinsurance distributors regarding
their operation and, if necessary, to perform an examination.
Insurance or reinsurance distributors have an obligation to
cooperate with Latvijas Banka.
(3) Insurance or reinsurance distributors shall submit the
requested information to Latvijas Banka within the time periods
stipulated thereby. Submission of information may not be refused
upon pretext of a trade secret.
(4) In order to ensure single, efficient, and constructive
practice of supervision and uniform and consistent application of
the directly applicable legal acts of the European Union in
Member States, Latvijas Banka has the right to specify
requirements governing the registration and operations of an
insurance or reinsurance distributor, as well as the relationship
between the insurance or reinsurance distributor and the
customer.
(5) Latvijas Banka is entitled to impose the following
supervisory measures for violations of Regulation No 1286/2014 in
accordance with Article 24 of this Regulation:
1) to prohibit the distribution of an insurance-based
investment product;
2) to impose the obligation to suspend the distribution of an
insurance-based investment product;
3) to prohibit the provision of a key information document
which does not conform to the requirements of Article 6, 7, 8, or
10 of Regulation No 1286/2014 and to take a decision requiring
the publication of a new key information document conforming to
this Regulation;
4) to impose the obligation on a person who is providing
recommendations regarding an insurance-based investment product,
is developing or selling it to inform the customer who is not a
professional client and whose rights and interests have been
violated regarding the sanction or supervisory measure imposed
and also as to where the customer may submit a complaint or where
he or she can go in order to initiate out-of-court redress, as
well as regarding his or her rights to bring a claim to a
court.
(6) If the administrative act issued by Latvijas Banka
regarding imposition of the supervisory measures referred to in
Paragraph five, Clauses 1, 2, 3, and 4 of this Section is
appealed, the appeal of such act shall not suspend operation
thereof.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Chapter VII
Liability
Section 65. Sanctions and
Administrative Measures
(1) Latvijas Banka is entitled to impose sanctions and
administrative measures:
1) on an insurance or reinsurance merchant, a branch of a
foreign insurer or reinsurer, an insurance or reinsurance
intermediary which is using insurance or reinsurance distribution
services provided by a person who is performing insurance or
reinsurance distribution without registration in the register of
insurance and reinsurance intermediaries or the register of
ancillary insurance intermediaries;
2) on an insurance or reinsurance intermediary, an ancillary
insurance intermediary which is registered in the register of
insurance and reinsurance intermediaries or the register of
ancillary insurance intermediaries if it provides false
information or in any way does not conform to the requirements of
Chapter II of this Law;
3) on an insurance distributor which does not conform to the
requirements of Sections 16, 17, 18, 19, 21, 23, 24, 28, 29, 31,
and 45 of this Law;
4) on an insurance merchant, a branch of a foreign insurer, an
insurance intermediary, an insurance intermediary of a Member
State which does not conform to the requirements of Chapter IV of
this Law in relation to the provision of information to a
customer in relation to insurance-based investment products;
5) on an insurance distributor and an insurance distributor of
another Member State which does not conform to the requirements
of Chapter IV of this Law in relation to the provision of
information to a customer in relation to insurance products,
except for that referred to in Clause 4 of this Paragraph;
6) on an insurance or reinsurance intermediary or an ancillary
insurance intermediary which does not fulfil the requirements of
Section 1, Paragraph one, Clauses 1, 4, 7, 9, and 21, Section 4,
Paragraphs three, four, five, and seven, Section 8, Paragraph
one, Clauses 8, 9, 10, 11, 12, 13, 14, and 15 and Paragraph six,
Section 64, Paragraphs one, two, and three of this Law;
7) on an insurance merchant, a branch of a foreign insurer,
and an insurance broker which do not fulfil the requirements of
Section 18, Paragraphs four and five of this Law;
8) on an insurance merchant, a branch of a foreign insurer, an
insurance or reinsurance intermediary which does not conform to
the requirements of the laws and regulations regarding the
prevention of money laundering and terrorism and proliferation
financing;
9) on an insurance distributor which does not conform to the
requirements of Article 5(1), Articles 6 and 7, Article 8(1),
(2), and (3), Article 9, Article 10(1), Article 13(1), (3), and
(4), Articles 14 and 19 of Regulation No 1286/2014;
10) on persons performing insurance or reinsurance
distribution without registration in the register of insurance
and reinsurance intermediaries or the register of ancillary
insurance intermediaries;
(2) Latvijas Banka is entitled to impose the following
sanctions on an insurance merchant, a branch of a foreign
insurer, an insurance intermediary which does not comply with the
requirements of Chapter IV of this Law regarding the provision of
information to a customer in relation to insurance-based
investment products for the violations referred to in Paragraph
one, Clause 4 of this Section:
1) to express a public announcement by indicating the person
liable for the violation and the nature of the violation;
2) [23 September 2021];
3) to cancel the entry made in the register of insurance and
reinsurance brokers in respect of the insurance or reinsurance
broker in accordance with Section 9, Paragraph four, Clause 3 of
this Law;
4) [23 September 2021];
5) to impose a fine on a legal person up to five million euros
or up to five per cent from the total annual turnover according
to the last available audited annual statement of the
abovementioned legal person. If the legal person is a parent
company or a subsidiary of a parent company which must prepare
consolidated annual statements in accordance with the Law on the
Annual Financial Statements and Consolidated Financial Statements
or consolidated financial statements in accordance with the
requirements of the laws and regulations of the home Member
State, the total turnover shall be formed by the total annual
turnover in accordance with the relevant laws and regulations of
the Member State of origin in the field of accounting, taking
into account the last available consolidated annual statement
which has been approved by the management body of the parent
company;
6) to impose a fine of up to EUR 700 000 on the natural person
who is responsible for the violation;
7) as an alternative to that laid down in Clause 5 or 6 of
this Paragraph to impose a fine of up to double amount of the
income gained as result of the violation or of the prevented
possible loss;
8) to request cancellation of entries made in relation to the
insurance agent in the register of insurance agents.
(21) Latvijas Banka is entitled to impose the
following administrative measures on an insurance merchant, a
branch of a foreign insurer, an insurance intermediary for the
violations referred to in the introductory part of Paragraph two
of this Section:
1) to require that the person responsible for the violation
immediately ceases the respective acts;
2) to impose a temporary prohibition on the member of the
executive board of the insurance intermediary, insurance
merchant, or the branch of the foreign insurer, or the head of
the branch, or another natural person responsible for committing
the violation to fulfil the obligations in the insurance
intermediary, insurance merchant, or branch of the foreign
insurer.
(3) Latvijas Banka is entitled to impose the following
sanctions for the violations referred to in Paragraph one,
Clauses 1, 2, 3, and 5 of this Section:
1) [23 September 2021];
2) to cancel the entry made in the register of insurance and
reinsurance brokers in respect of the insurance or reinsurance
broker, in accordance with Section 9, Paragraph four, Clauses 1,
3, 4, and 5 of this Law;
3) to propose cancellation of entries made in relation to the
insurance agent or ancillary insurance intermediary in the
register of insurance agents or ancillary insurance
intermediaries.
(31) Latvijas Banka is entitled to impose the
administrative measure, namely request that the person
responsible for the violation immediately ceases the respective
acts, for the violations referred to in the introductory part of
Paragraph three of this Section.
(4) Latvijas Banka is entitled to impose a fine of up to EUR
14 200 on an insurance or reinsurance distributor for the
violations referred to in Paragraph one, Clause 6 of this
Section.
(5) Latvijas Banka is entitled to impose a fine of up to EUR
14 200 on an insurance merchant, a branch of a foreign insurer,
and an insurance broker for the violations referred to in
Paragraph one, Clause 7 of this Section.
(6) Latvijas Banka is entitled to impose the sanctions
specified in the Law on the Prevention of Money Laundering and
Terrorism and Proliferation Financing for the violations referred
to in Paragraph one, Clause 8 of this Section.
(7) Latvijas Banka is entitled to impose the following
sanctions for the violations of Regulation No 1286/2014 referred
to in Paragraph one, Clause 9 of this Section in accordance with
Article 24 of Regulation No 1286/2014:
1) [23 September 2021];
2) [23 September 2021];
3) [23 September 2021];
4) [23 September 2021];
5) to issue a warning in which the responsible person and the
nature of the violation are indicated;
6) to impose a fine on a legal person of up to five million
euros or up to three per cent from the total annual turnover
according to the last available annual statement of such legal
person. If the legal person is a parent company or a subsidiary
of a parent company which prepares a consolidated annual
statement in accordance with the Law on the Annual Financial
Statements and Consolidated Financial Statements or a
consolidated financial statement in accordance with the
requirements of the laws and regulations of the Member State of
origin, the total turnover shall be formed by the total annual
turnover or income of appropriate type in accordance with the
relevant laws and regulations of the Member State of origin in
the field of accounting, taking into account the last available
consolidated financial statement which has been approved by the
management body of the parent company;
7) to impose a fine of up to EUR 700 000 to an insurance
intermediary - performer of economic activity - and the
responsible person of an insurance intermediary - legal person -
which, at the time of committing the violation, was responsible
for the performance of the particular operation upon assignment
or in the interests of the insurance intermediary;
8) as an alternative to that laid down in Clause 6 or 7 of
this Paragraph to impose a fine of up to double amount of the
income gained as result of the violation or of the prevented
possible loss.
(71) Latvijas Banka is entitled to issue a warning
or impose a fine of up to EUR 14 200 on a person for the
violation referred to in Paragraph one, Clause 10 of this
Section.
(8) Latvijas Banka is entitled to impose the fine referred to
in this Section on any member of the executive board or
supervisory board of the insurance or reinsurance distributor, as
well as on any other person who is responsible for committing the
violations referred to in this Section.
(9) [23 September 2021]
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 66. Efficient Imposition of
Sanctions and Supervisory Measures
[23 September 2021 / See Paragraph 11 of Transitional
Provisions]
Section 67. Appealing a Decision of
Latvijas Banka
A decision of Latvijas Banka which has been taken in
accordance with this Law may be appealed to the Regional
Administrative Court. The court shall examine the case as the
court of first instance. The case shall be examined in the panel
of three judges. The judgement of the Regional Administrative
Court may be appealed by filing a cassation complaint.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 68. Disclosure of Sanctions,
Administrative Measures, and Supervisory Measures
(1) Latvijas Banka shall post on its website the information
regarding the sanctions, administrative measures, and the
supervisory measures referred to in Section 64, Paragraph five of
this Law imposed on persons for the violations referred to in
this Law by indicating information regarding the person and the
violation committed thereby, and also regarding contestation of
the administrative act issued by Latvijas Banka and the ruling
rendered.
(2) If after performance of a previous assessment Latvijas
Banka detects that the disclosure of personal data is not
proportionate or disclosure of such data may endanger the
stability of the financial market or examination of a relevant
administrative case, it is entitled to carry out one of the
following activities:
1) to suspend disclosure of the information related to the
sanctions or administrative measures, or the supervisory measures
referred to in Section 64, Paragraph five of this Law and imposed
on the person until the moment when the circumstances due to
which such disclosure was suspended are no longer present;
2) to disclose the information referred to in Paragraph one of
this Section without identifying the person if such disclosure
ensures efficient protection of personal data;
3) not to disclose the information referred to in Paragraph
one of this Section if the activities referred to in Clauses 1
and 2 of this Paragraph are not sufficient in order to ensure the
stability of the financial market and such disclosure is not
proportionate to the imposed administrative measures or the
supervisory measures referred to in Section 64, Paragraph five of
this Law that are considered insignificant.
(3) The information referred to in Paragraph one of this
Section and posted on the website of Latvijas Banka shall be
available for five years from the day of the posting thereof.
(4) Latvijas Banka shall inform the EIOP Authority regarding
the sanctions, administrative measures, and the supervisory
measures referred to in Section 64, Paragraph five of this Law
and imposed on the person but not disclosed in accordance with
Paragraph two, Clause 3 of this Section, including regarding
appeal of the relevant administrative act and the result thereof,
the sanctions, administrative measures, and the supervisory
measures referred to in Section 64, Paragraph five of this Law
and imposed on the person that have been disclosed. Latvijas
Banka shall, on an annual basis, provide the EIOP Authority with
aggregated information regarding all sanctions and administrative
measures imposed on persons in accordance with Section 65 of this
Law, and also regarding all supervisory measures imposed on
persons in accordance with Section 64, Paragraph five of this
Law.
[23 September 2021 / Amendments regarding the replacement
of the word "the Commission" with the words "Latvijas Banka"
shall come into force on 1 January 2023. See Paragraph 11 of
Transitional Provisions]
Section 69. Reporting on Potential
and Actual Violations of this Law
(1) Any person may report to Latvijas Banka on potential and
actual violations of this Law, the regulations of Latvijas Banka
issued on the basis of this Law, and Regulation No 1286/2014.
(2) Latvijas Banka shall create and maintain an efficient and
credible reporting system which includes at least the following
elements:
1) the procedures by which reports on the violations are
received and by which further action shall be performed;
2) in accordance with the laws and regulations regarding
personal data protection - personal data protection of such
person who is reporting on the violation, as well as personal
data protection of such natural person who is suspected of
committing the violation;
3) the provisions regarding ensuring confidentiality of such
person who is reporting on the violation, except for the case
when disclosure of such information is provided for in the legal
acts of the Republic of Latvia.
(3) The procedures for reporting on potential and actual
violations of this Law, the regulations of Latvijas Banka issued
on the basis of this Law, and Regulation No 1286/2014 and for
processing the reports received by Latvijas Banka in Latvijas
Banka reporting system shall be determined in the regulations of
Latvijas Banka.
(4) Reporting which is performed in accordance with Paragraph
one of this Section by an employee of an insurance or reinsurance
distributor and of a branch of a foreign insurance intermediary
shall not be considered the violation of the prohibition to
disclose information specified in the contract and any law or
regulation, and the person shall not be responsible for such
reporting. Discriminatory or other unfair activities may not be
directed against persons who report on violations.
(5) An insurance distributor and a branch of a foreign
insurance intermediary which is providing recommendations on an
insurance-based investment product, develops or sells it shall
develop the internal procedure which includes the procedures by
which employees shall report thereto on violations of Regulation
No 1286/2014 in the insurance distributor or the branch of the
foreign insurance intermediary.
[23 September 2021 / Amendments to the Section shall come
into force on 1 January 2023. See Paragraph 11 of Transitional
Provisions]
Transitional Provisions
1. The Activities of Insurance and Reinsurance Intermediaries
Law is repealed with the coming into force of this Law.
2. An insurance or reinsurance distributor which has received
the insurance or reinsurance licence until the day of coming into
force of this Law or has been registered with the register of
insurance and reinsurance intermediaries shall ensure fulfilment
of the requirements of Section 23 of this Law by 31 December
2019.
3. A branch of an insurance merchant or a foreign insurer
shall, by 1 October 2019, establish the register of insurance
agents and register insurance agents therein which pursue
insurance distribution on behalf and in the interests of the
insurance merchant or the branch of the foreign insurer.
4. The tied insurance agent which has been registered in the
register of tied insurance agents until the day of coming into
force of this Law shall, within 30 days after establishment of
the register of insurance agents and the register of ancillary
insurance intermediaries, register with the register of insurance
agents as an insurance agent or with the register of ancillary
insurance intermediaries as an ancillary insurance intermediary
or terminate insurance distribution. If the tied insurance agent
registers with the register of insurance agents as an insurance
agent or with the register of ancillary insurance intermediaries
as an ancillary insurance intermediary, it shall, by 1 October
2019, ensure fulfilment of the requirements of Section 23 of this
Law.
5. An insurance agent which until the day of coming into force
of this Law has been registered in the register of insurance and
reinsurance intermediaries maintained by the Commission as an
insurance agent shall, within 30 days after establishment of the
register of insurance agents and the register of ancillary
insurance intermediaries, register as an insurance agent in the
register of insurance agents maintained by the insurance merchant
or the branch of the foreign insurer or terminate insurance
distribution. The insurance agent or insurance merchant, or
branch of the foreign insurer has an obligation, instead of the
insurance agent, to inform the Commission regarding registration
of the insurance agent in the register of insurance agents
maintained by the insurance merchant or the branch of the foreign
insurer. An entry regarding an insurance agent which, by 1
October 2019, will not have registered in the register of
insurance agents maintained by the insurance merchant or the
branch of the foreign insurer will be cancelled in the register
of insurance and reinsurance intermediaries maintained by the
Commission.
6. In order to ensure fulfilment of Paragraphs 4 and 5 of
these Transitional Provisions, the legal norms regarding the
register of insurance and reinsurance intermediaries and the
register of tied insurance agents and the information to be
included therein which were in force until the day of coming into
force of this Law shall, until re-registration or termination of
operations thereof, but not later than by 1 October 2019, be
applied to insurance agents and tied insurance agents which until
the day of coming into force of this Law have been registered in
the register of insurance and reinsurance intermediaries or the
register of tied insurance agents accordingly.
7. Associations of insurance distributors which at the moment
of coming into force of this Law had already received a
permission to provide an opinion on the knowledge and skills
acquired by the responsible person or an employee directly
involved in insurance or reinsurance distribution of the
insurance distributor in the field of insurance or reinsurance
distribution shall retain such rights, and they do not need
repeat registration with the Commission. The associations of
insurance distributors referred to in this Paragraph shall,
within 90 days after the day of coming into force of this Law,
submit the information specified in Section 25, Paragraph two,
Clause 2 of this Law to the Commission.
8. Associations of insurance distributors shall, by 31
December 2019, establish an institution (ombudsman) in order to
ensure fulfilment of the requirements of Section 47 of this
Law.
9. Until the day of coming into force of such directly
applicable legal act of the European Union in the field of
insurance or reinsurance distribution which determines the
minimum amount of civil liability per year and for a single
insurance case the minimum amount of civil liability per year may
not be less than EUR 1 875 927 and for a single insurance case -
less than EUR 1 250 618.
10. An insurance or reinsurance merchant, a branch of a
foreign insurer, or a branch of a foreign reinsurer shall ensure
conformity of employees directly involved in insurance or
reinsurance distribution with the requirements of Section 17 of
this Law, starting from 1 October 2019.
11. Amendments to this Law regarding the replacement of the
word "Commission" with the words "Latvijas Banka" in the entire
Law, except for the name "European Commission" and Transitional
Provisions, the new wording of Section 5, Paragraph five,
amendment to Section 60, Paragraph two, the new wording of
Section 60, Paragraph three, and amendments regarding the
deletion of Section 60, Paragraphs four, five, six, and seven,
amendment to Section 63, Paragraph one regarding the replacement
of the words "council of the Commission" with the words "Latvijas
Banka", amendment regarding the deletion of Section 66, and
amendments to Section 69, Paragraphs one and three shall come
into force concurrently with the Law on Latvijas Banka.
[23 September 2021]
12. The regulatory provisions issued by the Financial and
Capital Market Commission on the basis of this Law, until the day
of coming into force of the Law on Latvijas Banka, shall be
applied until the day of coming into force of the relevant
regulations of Latvijas Banka, but not longer than until 31
December 2024.
[23 September 2021]
13. Amendments to Section 1, Paragraph one, Clause 8 of this
Law, Section 1, Paragraph 1.1 and Section
4.1 of this Law shall come into force concurrently
with the amendments to the Private Pension Fund Law which refer
to the registration and distribution of a pan-European Personal
Pension Product in the Republic of Latvia.
[13 October 2022]
14. The new wording of Section 60, Paragraph three of this Law
shall come into force on 1 January 2023.
[23 September 2021]
Informative Reference to European
Union Directives
The Law contains legal norms arising from:
1) Directive (EU) 2016/97 of the European Parliament and of
the Council of 20 January 2016 on insurance distribution
(recast);
2) Directive (EU) 2018/411 of the European Parliament and of
the Council of 14 March 2018 amending Directive (EU) 2016/97 as
regards the date of application of Member States' transposition
measures.
This Law has been adopted by the Saeima on 25 April
2019.
President R. Vējonis
Rīga, 09 May 2019
1 The Parliament of the Republic of
Latvia
Translation © 2023 Valsts valodas centrs (State
Language Centre)