On Dec. 7, DEN GVT issued order on life insurance payment of costs.
DEN GVT issued BEK 1402/2024 of 05/12/2024 Executive Order on payment of certain costs of life insurance business; covers life insurance firms, cross-sector pension funds.
The order also applies to branches of foreign companies licensed to conduct life insurance business pursuant to section 14 of the Insurance Business Act; life insurance business and business within insurance classes 1 and 2, as per Act annexes 1 and 2.
Covers establishment costs, i.e. one-off charge to establish an insurance contract, paid to the insurance broker, insurance agent, etc., regardless of sales staff remuneration.
Also covers: ongoing costs for services during the term of the insurance; payment of costs; actuary in charge; plus penal provisions for intentional violation or negligence.
Repeals subsection 2, BEK 1097/2006 on payment of costs for life insurance business.
Effectiveness
The Executive Order enters into force on Jan. 1, 2025.
