Regulatory Alerts2024-12-05
Order on Member Liability in Mutual Insurance Companies Participating in Co-insurance
The Danish Financial Supervisory Authority issued this order to allow mutual insurance companies participating in co-insurance pools to amend their articles of association to exempt members from liability for the company's obligations. The regulation explicitly repeals the previous Order No. 113 of 12 March 1993 regarding member liability in such contexts. It enters into force on 1 January 2025, thereby updating the legal framework for mutual insurer liability structures.
Order on Member Liability in Mutual Insurance Companies Participating in Co-insurance
Pursuant to Section 7 of Act No. 718 of 13 June 2023 on Insurance Business, the following is enacted:
Section 1. A mutual insurance company that participates in a pool arrangement through co-insurance may stipulate provisions in its articles of association regarding the exemption of members from liability for the company's obligations.
Section 2. This Order enters into force on 1 January 2025.
Subsection 2. Order No. 113 of 12 March 1993 on member liability in mutual insurance companies participating in co-insurance is repealed.
The Danish Financial Supervisory Authority, 5 December 2024 Louise Mogensen / Line Bergmann Official Gazette A 2024 Published on 17 December 2024 5 December 2024. No. 1552. Ministry of Industry, Business and Financial Affairs, The Danish Financial Supervisory Authority, file no. 24-019578 CQ003073