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The Deputies on Wednesday adopted a draft law according to which the Guarantee Fund will protect insurance creditors from the consequences of the insolvency of a Romanian legal entity insurer, as well as in the case of an insurer authorized in another member state carrying out activity on the territory of Romania through a branch opened in our country.
The Deputies cast 168 votes "in favour," 47 votes "against" and 33 abstentions in this case.
The Chamber of Deputies adopted, on Wednesday, a draft law on the approval of GEO no. 102/2021 for the modification and supplementing of no. 213/2015 on the Guarantee Fund for insured persons and for the modification of other normative acts.
According to the draft bill, the Fund can conclude cooperation agreements with similar bodies from other states, national auto offices and other entities, or can mandate them in order to fulfill its legal duties.
Also, the Fund protects the insurance creditors provided for in the draft bill, by paying insurance claims representing compensations/indemnities owed by the European insurer as a result of the occurrence of the risks insured through the insurance agreements concluded by it through the Romanian branch in the framework of the activity carried out on the territory of Romania and for which it has the obligation to contribute to the fund under the conditions stipulated in the draft bill, in the event of the opening of a liquidation procedure based on insolvency at the respective European insurer.
Under the terms of this law, the following insurers are obliged to contribute to the fund: insurers authorized by the Financial Supervisory Authority, including for the activity of their branches that carry out their activity on the territory of another member state of the European Union; the European insurers, for the insurance activity carried out on the territory of Romania through the branches established in Romania, in compliance with the legal provisions.
The project was adopted by the Senate, the Chamber of Deputies being the decision-making body.
