On Dec. 11, DEN GVT issued a law on reconstruction and bankruptcy.
DEN GVT, via Ministry of Industry and Trade, published Executive Order on operating plans, plans for recovery, financing plans and individual solvency requirements for insurance companies, on behalf of DEN FSA, to provide clarification under Act 718.
The terms of the Executive Order apply to all recognized licensed insurers however, the new terms of the new Executive Order does not apply to any reinsurance businesses.
It covers definitions and requirements for Liquidation, Liquidator, and Reorganization measures, Administrator, as well as Insurance claim, in relation to any monies owed.
Chapter 2 covers Choice of law, Chapter 3 Publication, Chapter 4 is on Reconstructors, curators and liquidators, while Chapter 5 covers Entry in the land register, and then in Chapter 6 detail is given on Notification and reporting of claims, as made on insurers.
In addition, Chapter 7 covers the Effects of the restructuring, bankruptcy, compulsory dissolution or liquidation of an insurance company, including associated requirements.
Chapter 8 provides relevant details for Branches of third-country insurance companies.
Effectiveness
The Executive Order enters into force on Jan. 1, 2025 and at same time, the entirety of Executive Order 1272 of Nov. 27, 2017 on the insurer reconstruction plans is repealed.
