Order on Permission to Provide Services in Denmark for Insurance Undertakings Authorized in the Faroe Islands

Order on Permission to Provide Services in Denmark for Insurance Undertakings Authorized in the Faroe Islands

Pursuant to Section 60 and Section 316, Paragraph 1, of Act No. 718 of 13 June 2023 on Insurance Business, it is hereby prescribed:

Scope of Application

Section 1. This Order applies to insurance undertakings that have been granted authorization in the Faroe Islands.

Provision of Services in Denmark

Section 2. An insurance undertaking may provide services in Denmark, provided that an agreement has been concluded between Denmark and the Faroe Islands stating that Danish insurance undertakings have corresponding rights in the Faroe Islands.

Section 3. Before an insurance undertaking commences activities in accordance with Annexes 1 and 2 to the Act on Insurance Business, the Danish Financial Supervisory Authority must have received the following information from the Faroese insurance supervisory authority:

1. The name of the undertaking and the address of its head office.
2. A specification of the insurance classes, groups of classes, and any accessory risks that the insurance undertaking intends to cover in Denmark.
3. A declaration that the planned activities are covered by the insurance undertaking's authorization in the Faroe Islands.
4. A solvency certificate issued by the Faroese insurance supervisory authority.

Paragraph 2. If an insurance undertaking wishes to cover risks under insurance class 10, cf. Annex 1, No. 10, to the Act on Insurance Business, excluding carrier's liability, the Danish Financial Supervisory Authority must, in addition to the information in Paragraph 1, have received the following information from the Faroese insurance supervisory authority:

1. The name and address of the representative appointed pursuant to Section 6.
2. A declaration that the undertaking is a member of the Danish Association for International Motor Vehicle Insurance or a similar international motor vehicle insurance association.
3. Documentation that the undertaking is registered with the Danish Tax Agency (SKAT) in accordance with Section 6 of the Act on Tax on Damage Insurance.

Paragraph 3. If an insurance undertaking wishes to cover risks under insurance class 17, cf. Annex 1, No. 17, to the Act on Insurance Business, the Danish Financial Supervisory Authority must, in addition to the information in Paragraph 1, have received information from the Faroese insurance supervisory authority regarding which choice the part of the undertaking that will conduct insurance business in Denmark has made pursuant to Article 3, Paragraph 2, of Council Directive 87/344/EEC of 22 June 1987 on the coordination of laws, regulations and administrative provisions relating to legal expenses insurance.

Section 4. The insurance undertaking may use the same name as the insurance undertaking uses in the Faroe Islands. If there is a risk of confusion with another name used in Denmark, the Danish Business Authority may require an explanatory addition.

Section 5. If the insurance undertaking covers the risks mentioned in Annex 1 to the Act on Insurance Business in Denmark, the Danish Financial Supervisory Authority may require the insurance undertaking to participate in schemes that guarantee the fulfillment of compensation claims from the insured or injured third parties, to the extent that such schemes apply correspondingly to Danish insurance undertakings.

Section 6. An insurance undertaking that covers risks under insurance class 10, cf. Annex 1, No. 10, to the Act on Insurance Business, excluding carrier's liability, must appoint a representative who is resident or established in Denmark. The appointment of the representative is not in itself considered the establishment of a branch.

Paragraph 2. The representative must have the authority to collect all necessary information in connection with claims and to represent the insurance undertaking to injured persons who may make claims, including with regard to the payment of such claims. The representative must furthermore have the authority to represent the insurance undertaking to the authorities and in legal proceedings against the insurance undertaking in connection with the claims mentioned in this paragraph.

Paragraph 3. For the relevant insurance policies covering risks under insurance class 10, cf. Annex 1, No. 10, to the Act on Insurance Business, Sections 105-108 and 110-115 of the Road Traffic Act apply.

Penal Provisions and Entry into Force

Section 7. Violation of Section 5 and Section 6, Paragraphs 1 and 2, is punishable by a fine.

Paragraph 2. Companies and other legal entities may be subject to criminal liability in accordance with the rules in Chapter 5 of the Criminal Code.

Section 8. This Order enters into force on 1 January 2025.

Official Journal of Denmark A 2024 Published on 18 December 2024 5 December 2024. No. 1576. Ministry of Industry, Business and Financial Affairs, Danish Financial Supervisory Authority, file no. 24-019424 CQ003070

Paragraph 2. Order No. 986 of 11 September 2014 on permission to provide services in Denmark for insurance undertakings that have been granted authorization in the Faroe Islands is repealed.

Danish Financial Supervisory Authority, 5 December 2024 Louise Mogensen / Line Bergmann 5 December 2024. 2 No. 1576.