RESOLUTION ON INSURANCE

The insurance activity as a whole is of interest and concern for the state power which, by virtue of the principle of market economy organization, must, on the one hand, intervene in order to provide a favorable framework for the insurance activity to be exercised by insurers and, on the other han...

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Bibliographic Details
Main Authors: Vasile NEMEŞ, Gabriela FIERBINŢEANU
Format: Article
Language:English
Published: Nicolae Titulescu University Publishing House 2018-05-01
Series:Challenges of the Knowledge Society
Subjects:
Online Access:http://cks.univnt.ro/uploads/cks_2018_articles/index.php?dir=2_private_law%2F&download=CKS_2018_private_law_016.pdf
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Summary:The insurance activity as a whole is of interest and concern for the state power which, by virtue of the principle of market economy organization, must, on the one hand, intervene in order to provide a favorable framework for the insurance activity to be exercised by insurers and, on the other hand , to adopt prudential rules to protect insured and potential insured. In order to implement the prudential rules in the insurance field, the Supervisory Authority controls the patrimonial situation of the insurance companies and steps in when it finds financial difficulties such as the decrease of the solvency margin, the decrease of the minimum safety fund, the imbalance between the tangible assets and the liabilities of the company, of the patrimonial situation. Under the main measures to maintain and, where appropriate, restore the financial situation of insurance companies, the most important are the financial recovery procedure regulated by Law No. 503/2004 on financial recovery, bankruptcy, dissolution and voluntary liquidation in the insurance business and the resolution procedure, regulated by Law no. 246/2015 regarding the recovery and resolution of insurers.
ISSN:2068-7796
2068-7796