Insurance Intermediaries

  • Section:

An insurance or reinsurance broker may commence the distribution of insurance or reinsurance only after having registered with the insurance and reinsurance brokers’ register.

The register of insurance and reinsurance brokers is maintained by the Financial and Capital Market Commission (hereinafter — the Commission).

The Commission shall enter into the register of insurance and reinsurance brokers:

1) a capital company entered into the commercial register of the Register of Enterprises;

2) a branch of a foreign insurance or reinsurance broker.

In order to register with the insurance and reinsurance brokers’ register, an insurance or reinsurance broker shall submit to the Commission:

1) an application for the entry in the register of insurance and reinsurance brokers;

2) the following information about the responsible person and documents certifying that the person complies with the requirements of Article 16 (1) of the Insurance and Reinsurance Distribution Law:

a) given name, surname, personal identity number,

b) copies of educational documents,

c) an opinion issued by the association of insurance distributors that the person has the necessary knowledge and skills for the distribution of insurance and reinsurance in conformity with the requirements of this Law,

d) a document issued by the competent authority of the State attesting that the responsible person (non-resident only) is not subject to any of conditions referred to in Article 19 (1) of the Insurance and Reinsurance Distribution Law;

3) a list of shareholders or members who have a qualifying holding in the insurance or reinsurance broker, indicating the size of the holding;

4) a list of persons with whom the insurance or reinsurance broker has close relations;

5) a statement that the qualifying holding and close relations referred to in paragraphs 3 and 4 are without prejudice to the ability of the Commission exercising supervisory functions;

6) information regarding the insurance or reinsurance broker, specifying the firm, registration number, legal address, telephone number, e-mail address and website address, where public access shall be ensured as specified in this Law;

7) a copy of a civil liability insurance contract or a guarantee issued by a credit institution referred to in Article 28 of the Insurance and Reinsurance Distribution Law;*

8) a copy of the contract entered into with a credit institution regarding the opening of a separate cash account, specifying that the funds in the account are the funds obtained as a result of the activities of insurance or reinsurance broker in accordance with the requirements of Article 31 of the Insurance and Reinsurance Distribution Law, and information regarding the procedure for transferring the funds received from the clients into a separate cash account  of a credit institution. The provisions of this paragraph shall apply to insurance and reinsurance brokers intending to receive premiums or other payments under the insurance or reinsurance contract;

9) information regarding the procedure by which an insurance or reinsurance broker shall ensure compliance with the requirements of Article 16 of the Insurance and Reinsurance Distribution Law;

10) information regarding the procedure for safeguarding information systems;

11) information regarding the procedure for enforcing regulatory requirements regarding the prevention of money laundering and terrorism financing if an insurance or reinsurance broker who distributes life insurance is registered;

12) information regarding the procedure for handling customer complaints by an insurance or reinsurance broker;

13) information regarding the organisational structure of insurance or reinsurance broker, as well as the assignment of powers and obligations of the board and responsible persons for the distribution of insurance or reinsurance;

14) information regarding the procedure by which compliance with the requirements of Article 13 of the Insurance and Reinsurance Distribution Law shall be ensured;

15) information regarding the procedure by which compliance with the requirements of Article 23 (6) of the Insurance and Reinsurance Distribution Law shall be ensured;

16) a document confirming the payment of 250 euro for examining the documents submitted to the register of insurance or reinsurance brokers.

* The insurance or reinsurance brokers may submit a copy of civil liability insurance contract in case of a favourable decision on part of the Commission.

An insurance broker, a legal person, must have the share capital no less than 15 000 euro.

If a branch of a foreign insurance or reinsurance broker wishes to carry out the distribution of insurance and reinsurance in the Republic of Latvia, the foreign insurance or reinsurance broker shall deposit 15 000 euro as a security in a credit institution registered in the Republic of Latvia. The deposit must be freely available, it cannot be burdened, and it may only be transferred with the permission of the Commission.

If a branch of insurance or reinsurance broker of a foreign state, which has joined the Organization for Economic Cooperation and Development, wishes to carry out the distribution of insurance and reinsurance in the Republic of Latvia, it shall deposit no less than 25 percent of the 15 000 euro as a security in a credit institution registered in the Republic of Latvia. The deposit shall be freely available, it cannot be burdened and it may only be transferred with the permission of the Commission.

The Commission shall examine an application regarding the entering of insurance or reinsurance broker in the register of insurance or reinsurance brokers and take a decision on making an entry or refusal to make an entry within 30 days after receipt of the documents referred to in Article 8, Paragraph 1 of the Insurance and Reinsurance Distribution Law, if they have been drawn up in conformity with the regulatory provisions regarding the procedures for drawing up and finalising of documents.

Activities of insurance or reinsurance brokers shall be governed by the Insurance and Reinsurance Distribution Law, available at: APIL

 

An insurance agent may commence the distribution of insurance only after having registered with the register of insurance agents.

The register of insurance agents shall be maintained by an insurance merchant or a branch of a foreign insurer.

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 into the commercial register of the Register of Enterprises;

2) an individual merchant entered into the commercial register of the Register of Enterprises or a natural person registered in the tax-payer register of the State Revenue Service as an economic operator;

3) a cooperative society entered into the Register of Enterprises.

In order to register with the register of insurance agents, an insurance agent must enter into a distribution contract with an insurance merchant or a branch of a foreign insurer.

An insurance merchant or a branch of a foreign insurer may enter into a distribution contract if the insurance agent complies with the requirements of the Insurance and Reinsurance Distribution Law and if the insurance merchant or the branch of a foreign insurer has received the following documents and information:

1) the following information regarding the responsible person and documents certifying that the person complies with the requirements of Article 16 (3) of the Insurance and Reinsurance Distribution Law:

a) given name, surname, personal identity number,

b) copies of educational documents,

c) a document issued by the competent authority of the State attesting that the responsible person is not subject to any of conditions referred to in Article 19(1) of the Insurance and Reinsurance Distribution Law;

2) an insurance agent firm (given name and surname of natural person who is registered as an economic operator in the tax-pay register of the State Revenue Service), registration number, legal address (registered office address), telephone number, e-mail address and website address, where the information specified in this Law is publicly accessible;

3) a list of shareholders or members who have a qualifying holding in the insurance agent, indicating the size of the holding;

4) a list of persons with whom the insurance agent has close relations;

5) a statement that the qualifying holding and close relations referred to in paragraphs 3 and 4 are without prejudice to the ability of the Commission exercising supervisory functions;

6) a copy of the contract entered into with a credit institution regarding the opening of a separate cash account, specifying that the funds in the account are the funds obtained as a result of the activities of insurance agent in accordance with the requirements of Article 31 of the Insurance and Reinsurance Distribution Law, and information regarding the procedure for transferring the funds received from the clients into a separate cash account of a credit institution. The provisions of this paragraph shall apply to insurance agents intending to receive premiums or other payments under the insurance contract;

7) information regarding the procedure by which an insurance agent shall ensure compliance with the requirements of Article 16 of the Insurance and Reinsurance Distribution Law;

8) information regarding the procedure for safeguarding information systems;

9) information regarding the procedure for enforcing regulatory requirements regarding the prevention of money laundering and terrorism financing if an insurance agent distributes life insurance;

10) information regarding the procedure for handling customer complaints by an insurance agent;

11) information regarding the organisational structure of insurance agent, a legal person, as well as the assignment of powers and obligations of the board and responsible persons for the distribution of insurance;

12) a copy of the civil liability insurance contract or a guarantee issued by a credit institution referred to in Article 28 of the Insurance and Reinsurance Distribution Law, if no agreement has been reached with an insurance merchant or a branch of a foreign insurer regarding full liability for the loss incurred to the customers or other stakeholders due to an insurance agent’s error or negligence.

Activities of insurance agent shall be governed by the Insurance and Reinsurance Distribution Law, available at: APIL

 

An ancillary insurance intermediary may commence the distribution of insurance only after having registered with the register of ancillary insurance intermediaries.

The register of ancillary insurance intermediaries shall be maintained by an insurance merchant, a branch of a foreign insurer or an insurance agent.

An insurance merchant, a branch of a foreign insurer or an insurance agent shall enter the following persons in the register of ancillary insurance intermediaries:

1) a commercial company entered into the commercial register of the Register of Enterprises;

2) an individual merchant entered into the commercial register of the Register of Enterprises or a natural person registered in the tax-payer register of the State Revenue Service as an economic operator;

3) a cooperative society entered into the Register of Enterprises.

In order to register in the register of ancillary insurance intermediaries, an ancillary insurance intermediary must enter into a distribution contract with an insurance merchant, a branch of a foreign insurer or an insurance broker.

An insurance merchant, a branch of a foreign insurer or an insurance broker may enter into a distribution contract if the ancillary insurance intermediary complies with the requirements of the Insurance and Reinsurance Distribution Law.

Activities of ancillary insurance intermediaries shall be governed by the Insurance and Reinsurance Distribution Law, available at: APIL

Contacts


Address:
Kungu iela 1, Riga, LV-1050
Phone:
6 7774800
E-mail:
Previous sign-in to the secretary:
67 774 801
Data protection:

Follow the news


Subscribe to the news and receive important industry-related information in your e-mail