Regulatory Alerts2024-01-30
Minimum Professional Liability Insurance Limits for Insurance Brokers
The Management Board of the Central Bank of Azerbaijan issued Resolution No. 01/3-4 to establish mandatory minimum professional liability insurance limits for all licensed brokers. The resolution sets a 200,000 manat coverage threshold for individual brokers and a 1,000,000 manat threshold for legal entity brokers. These requirements align with national insurance legislation and central bank authority to guarantee adequate financial protection against professional claims.
CENTRAL BANK OF THE REPUBLIC OF AZERBAIJAN RESOLUTION OF THE MANAGEMENT BOARD No. 01/3-4 Baku city 10 January 2024 on determining the amount of insurance for insurance broker’s professional liability insurance In accordance with Article 88.1 of the Law of the Republic of Azerbaijan “On Insurance Activity” and Article 22.1.17 of the Law of the Republic of Azerbaijan “On the Central Bank of the Republic of Azerbaijan”, the Management Board of the Central Bank of the Republic of Azerbaijan hereby resolves:
- To determine the minimum limit of insurance amount for professional liability insurance of insurance brokers as follows: 1.1. for professional liability insurance of an individual insurance broker - 200,000 (two hundred thousand) manat; 1.2. for professional liability insurance of a legal entity insurance broker – 1,000,000 (one million) manat;
- To instruct the Head of the Legal Department Rana Malikova to ensure the submission of this Resolution to the Ministry of Justice of the Republic of Azerbaijan for registration in the State Register of Legal Acts of the Republic of Azerbaijan within 3 days. Governor of the Central Bank Taleh Kazimov