Order on the Terrorism Insurance Council, the Secretariat Function, and Supervision of Damage Insurance Companies' Handling of NBCR Terrorist Damage

Order on the Terrorism Insurance Council, the Secretariat Function, and Supervision of Damage Insurance Companies' Handling of NBCR Terrorist Damage

Pursuant to Section 12, subsections 5 and 6, and Section 17, subsection 5, of Act No. 367 of 9 April 2019 on a Terrorism Insurance Scheme in the Field of Damage Insurance, it is hereby prescribed:

Chapter 1 Members and Deputy Members of the Terrorism Insurance Council

Section 1. Members of the Terrorism Insurance Council must have legal or financial expertise.

Subsection 2. The Terrorism Insurance Council is assisted by a secretariat. The secretariat function is performed by the Danish Financial Supervisory Authority.

Chapter 2 Holding of Meetings

Section 2. Decisions and resolutions of the Terrorism Insurance Council are made at a meeting.

Subsection 2. The Chairman of the Terrorism Insurance Council chairs the Council's meetings.

Subsection 3. The Terrorism Insurance Council holds meetings on the meeting days determined by the Council, and otherwise as often as the Chairman finds occasion to do so, or when a member requests the holding of a meeting to deal with specified topics.

At least one meeting shall be held annually.

Subsection 4. The Chairman ensures that the meeting is held.

Subsection 5. For meetings outside the fixed meeting days, the Chairman determines the notice period, which must not exceed 4 weeks.

Subsection 6. The Chairman may decide that meetings are held as video conferences, telephone conferences, a combination thereof, or similar.

Subsection 7. Members who are prevented from attending a meeting must notify the secretariat of this.

Subsection 8. At meetings of the Terrorism Insurance Council, members and deputy members for members who are prevented from attending participate. However, deputy members may attend as observers even if the member is present. It is the responsibility of the member who is prevented from attending a meeting to notify their deputy member as soon as possible and send them relevant material, unless otherwise agreed with the secretariat.

Subsection 9. The meeting invitation must be accompanied by an agenda specifying the cases or topics to be dealt with, as well as the material deemed necessary by the Chairman.

Subsection 10. The agenda and meeting material are, as a rule, sent electronically to the members of the Terrorism Insurance Council.

Section 3. Material concerning cases or topics to be dealt with by the Terrorism Insurance Council must be sent to the members no later than 3 days before the meeting. If the material is not sent no later than 3 days before the meeting, the handling of the relevant case or topic may only take place if all participating members consent to this.

Subsection 2. The Terrorism Insurance Council is quorate when at least 3 members are present. Decisions are made by simple majority vote. Each member has one vote. In the event of a tie, the Chairman's vote is decisive.

Subsection 3. The Chairman may determine that cases or other topics are dealt with in writing if the cases are suitable for written handling.

Section 4. Minutes are taken of the Terrorism Insurance Council's meetings. The minutes are approved by the Chairman. Any member may demand that their vote and the reasoning for it be recorded in the minutes.

Section 5. The Chairman determines whether and, if so, in what manner, the Terrorism Insurance Council's decisions are to be made public, subject to subsection 2.

Subsection 2. Decisions in complaint cases, cf. Chapter 8, are published in anonymized form on the Danish Financial Supervisory Authority's website.

Subsection 3. Meetings of the Terrorism Insurance Council are not public.

Chapter 3 The Council's Decisions on NBCR Terrorist Acts

Section 6. The secretariat summons the Terrorism Insurance Council as soon as possible after a possible NBCR terrorist act has occurred.

Subsection 2. The Terrorism Insurance Council may inspect all places where damage has occurred and where it is assessed that the damaging act was committed.

Subsection 3. The Terrorism Insurance Council may call in external assistance to obtain factual information or to have professional assessments made that are necessary for the Terrorism Insurance Council's decision, cf. Section 14 of the Act on a Terrorism Insurance Scheme in the Field of Damage Insurance.

Section 7. When the Terrorism Insurance Council has decided that an NBCR terrorist act has occurred, this is published on the Danish Financial Supervisory Authority's website on the same day. The publication is followed by information about which areas are covered by the Council's decision. A press release regarding the decision is also sent to nationwide media, and the damage insurance companies are informed with a view to handling specific claims regarding NBCR terrorist damage.

Chapter 4 Performance of the Secretariat Function for the Terrorism Insurance Council

Section 8. The Danish Financial Supervisory Authority's performance of the secretariat function for the Terrorism Insurance Council includes the secretariat service, case handling, and supervision that are prescribed in this Order and in the agreements that the Terrorism Insurance Council enters into, cf. subsections 2 and 3.

Subsection 2. The precise scope of the secretariat function's areas of responsibility and tasks is defined in an agreement between the Terrorism Insurance Council and the Danish Financial Supervisory Authority.

Subsection 3. The precise scope of the cooperation between the Terrorism Insurance Council's secretariat and the insurance companies is defined in an agreement between the Terrorism Insurance Council and Insurance & Pension on behalf of the insurance companies.

Subsection 4. The Terrorism Insurance Council's accounts are published on the Danish Financial Supervisory Authority's website.

Chapter 5 Payment for Performance of the Secretariat Function for the Terrorism Insurance Council

Section 9. Expenses for the Terrorism Insurance Council's administration in connection with compensation payments for NBCR terrorist attacks, including handling of complaint cases, supervision, external assistance, etc., are financed within the framework of the terrorism insurance scheme, cf. Section 4 of the Act on a Terrorism Insurance Scheme in the Field of Damage Insurance.

Subsection 2. The specific terms for payment for performance of the secretariat function in connection with an NBCR terrorist attack are set in an agreement between the Ministry of Industry and the Danish Financial Supervisory Authority based on the secretariat's workload and expenses for the secretariat's operation.

Subsection 3. In the event of major, sudden changes in the secretariat's workload in connection with an NBCR terrorist attack, negotiations are entered into with the Ministry of Industry regarding payment for this.

Chapter 6 Payment for External Assistance

Section 10. The Terrorism Insurance Council's payment for external assistance is set by agreement between the Terrorism Insurance Council and the party that has provided assistance to the Terrorism Insurance Council. The payment is set based on the nature and scope of the task.

Subsection 2. The Danish Financial Supervisory Authority, in its capacity as secretariat, administers the payments for external assistance.

Chapter 7 Supervision of Damage Insurance Companies' Handling of NBCR Terrorist Damage

Section 11. The Terrorism Insurance Council ensures that damage insurance companies comply with the Act on a Terrorism Insurance Scheme in the Field of Damage Insurance and regulations issued pursuant thereto, as well as the Administration Act, the Act on Public Access to Documents in the Public Sector, and the currently applicable rules on the processing of personal data in connection with the handling of NBCR terrorist damage.

Subsection 2. The Terrorism Insurance Council ensures that damage insurance companies comply with orders given pursuant to the Act on a Terrorism Insurance Scheme in the Field of Damage Insurance or given pursuant to regulations issued pursuant to the Act.

Subsection 3. NBCR terrorist damage cases are selected randomly for supervisory review based on the Terrorism Insurance Council's specific decision, on the basis of the information provided by the damage insurance companies in connection with payments.

Subsection 4. The secretariat conducts a review of the legal and factual basis for the decisions in the selected NBCR terrorist damage cases based on information from the damage insurance companies received in connection with payments and any other relevant information, including statements from experts, following the Terrorism Insurance Council's specific instructions.

Section 12. If the Terrorism Insurance Council, through its supervision, learns that a damage insurance company does not comply with or comply with applicable rules, the Council makes a decision on the application of one or more reactions, cf. subsection 2.

Subsection 2. The Terrorism Insurance Council may apply the following reactions against a damage insurance company:

1. Orders are used in situations where the Council orders a specific behavior or action in the future. This can be because a company is acting in a manner contrary to the law, or because the company fails to act where action is required.

2. Prosecution is used in connection with a established violation of the law that no longer exists.

3. Claims for repayment are used in cases where a damage insurance company has made a decision on compensation that is obviously incorrect, is not based on professional judgment, and has resulted in a not insignificant overpayment of compensation from the terrorism insurance scheme.

Subsection 6. When the Terrorism Insurance Council has made a decision on the application of reactions covered by subsection 2, item 3, the damage insurance company may, within 4 weeks, request the Terrorism Insurance Council to reconsider the decision. The request is sent to the Terrorism Insurance Council's secretariat. Based on a request, the Terrorism Insurance Council upholds or annuls the decision and notifies the insurance company of this.

Section 13. The Terrorism Insurance Council may decide whether statistics, etc., are to be prepared based on conducted supervision. Statistics, etc., are published on the Danish Financial Supervisory Authority's website and possibly in the Council's annual report.

Chapter 8 Handling of Complaints Against Damage Insurance Companies' Decisions in NBCR Terror Cases

Section 14. The Terrorism Insurance Council handles complaints against damage insurance companies' decisions in cases regarding NBCR terrorist damage.

Subsection 2. The damage insurance company has the opportunity to provide a statement regarding the complaint. To this end, the secretariat sends a copy of the complaint to the company together with any accompanying material.

Section 15. The Terrorism Insurance Council may determine that a special form must be used when submitting a complaint. The form will, if applicable, be available on the Danish Financial Supervisory Authority's website.

Subsection 2. The secretariat otherwise ensures the further clarification of the case and, on its own initiative, procures the additional necessary legal and factual basis for the decision, including any statements from experts, if deemed necessary to make a decision in the case, and ensures that each party becomes aware of new information from the opposing party that is likely to have significance for the decision of the case.

Subsection 3. If the company fails to submit comments on the material sent, cf. subsections 2 and 3, within 3 weeks after receipt, the case may be handled solely on the basis of the existing material.

Subsection 4. The secretariat concludes the case if the damage insurance company fulfills the complainant's requirements during the preparation of the case. The same applies if the complainant withdraws their complaint.

Section 16. The secretariat prepares cases regarding complaints against damage insurance companies' decisions in NBCR terrorist damage.

Subsection 2. The Terrorism Insurance Council may decide to postpone the handling of the case to obtain further information, if this is deemed to have significance for the decision of the case.

Subsection 3. The Terrorism Insurance Council's decisions must be reasoned. To the extent that the decision is based on a majority decision, the minority's position must also be reasoned.

Subsection 4. If a complainant has obtained full or partial success, fulfillment of the decision may be carried out directly by the Terrorism Insurance Council without instruction from the damage insurance company.

Section 17. The Terrorism Insurance Council's decisions in handling a complaint case are made by simple majority vote. If a decision is based on a majority decision, this must be stated in the decision.

Subsection 2. The Chairman of the Terrorism Insurance Council may decide a complaint case if, based on the Council's previous practice, it can be considered certain how the case should be decided. The Council is informed of the decision as soon as possible and no later than at the next Council meeting. Each of the Council's members may demand at this meeting that the case be handled by the full Terrorism Insurance Council.

Section 18. When special reasons warrant it, the Chairman may decide that a case in which the Terrorism Insurance Council has made a decision is to be reopened. This applies in particular in the event of new information from a party or other new information which, if it had been present during the Council's handling, is presumed to have resulted in a different outcome of the case.

Chapter 9 Entry into Force

Section 19. This Order enters into force on 15 September 2019.

Subsection 2. Order No. 503 of 21 May 2012 on the Terrorism Insurance Council is repealed.

The Ministry of Industry, 10 September 2019

SIMON KOLLERUP / Julie Sonne