On Dec. 17, DEN GVT issued order on insurance distributors practice.
DEN GVT issued executive order (OG BEK 1557) on good practice for insurance distributors, as per provisions of Act on Insurance Business, and Insurance Brokerage.
Follows DEN GVT Jun. 2024, consolidated version of the mediation act, see #217369.
Law Provisions
As per ss. 67(2) and 316(1) Act 718, Jun. 13, 2023 on Insurance Business, and ss. 12(2) and 42(7) Act on Insurance Brokerage, cf. Consolidated Act 806, Jun. 21, 2024.
Scope and Applicability
Executive order affects Danish insurance companies and foreign insurance companies conducting business in Denmark, including branches or cross-border service activities.
Also Danish ancillary insurance intermediaries, cf. s. 2(4), and foreign ancillary insurance intermediaries who carry on insurance intermediary activities in Denmark.
This includes through branch establishment and cross-border activities, provided that the ancillary insurance intermediary is covered by the Insurance Mediation Act.
Executive order sets out form requirements, good practice, commercial practices towards customers, deceptive actions, misleading omissions, and trading practices.
DEN GVT's order contains provisions implementing parts of IDD Dir 2016/97.
Effectiveness
Executive order enters into force on Jan. 1, 2025.
While, order BEK 1779 of Sep. 6, 2021 on good practice for insurance distributors is repealed.
Regulators
DEN GVT
Entity Types
CNSM; IB; Ins
Reference
OG BEK 1557, 12/17/2024; IDD Dir 2016/97; Citation: OG BEK 1557;
