Order on Contributions to the Guarantee Fund for Property Insurance Undertakings

Order on Contributions to the Guarantee Fund for Property Insurance Undertakings

Pursuant to Section 3, Paragraph 10, of the Act on a Guarantee Fund for Property Insurance Undertakings, cf. Act Consolidation No. 2067 of 12 November 2021, as amended by Act No. 480 of 12 May 2023, the following is enacted:

Scope of Application

Section 1. This Order applies to the following insurance undertakings:

1. Direct-writing property insurance undertakings that have received permission from the Danish Financial Supervisory Authority (Finanstilsynet) to conduct insurance business.
2. Branches located in Denmark of direct-writing property insurance undertakings with their registered office in another country within the European Union or a country with which the Union has concluded an agreement in the financial sector.
3. Direct-writing property insurance undertakings with their registered office in another country within the European Union or a country with which the Union has concluded an agreement in the financial sector, which are notified to conduct insurance business in Denmark via cross-border provision of services.
4. Direct-writing life insurance undertakings that have received permission from the Danish Financial Supervisory Authority to conduct occupational accident insurance business.
5. Branches located in Denmark of direct-writing life insurance undertakings that have permission to conduct occupational accident insurance business, with their registered office in another country within the European Union or a country with which the Union has concluded an agreement in the financial sector.
6. Direct-writing life insurance undertakings with their registered office in another country within the European Union or a country with which the Union has concluded an agreement in the financial sector, which are notified to conduct occupational accident insurance business in Denmark via cross-border provision of services.

Paragraph 2. The Order does not apply to property insurance undertakings mentioned in items 2 and 3 that only underwrite motor liability insurance in Denmark.

Obligation to Contribute

Section 2. The insurance undertakings mentioned in Section 1, Paragraph 1, are obliged to make contributions to the Guarantee Fund for Property Insurance Undertakings (the Fund), subject to Section 1, Paragraph 2.

Paragraph 2. For the insurance undertakings mentioned in Section 1, Paragraph 1, items 1 and 4, the obligation to contribute under Paragraph 1 arises when the undertaking has received permission from the Danish Financial Supervisory Authority to conduct insurance business. For the insurance undertakings mentioned in Section 1, Paragraph 1, items 2, 3, 5, and 6, the obligation to contribute under Paragraph 1 arises when the Danish Financial Supervisory Authority has registered the undertaking as notified to conduct insurance business in Denmark via a branch or cross-border provision of services.

Paragraph 3. An insurance undertaking pays its first contribution to the Fund for the quarter that commences after the Danish Financial Supervisory Authority has either granted the undertaking permission to conduct insurance business or registered the undertaking as notified to conduct insurance business in Denmark via a branch or cross-border provision of services.

Cessation of Obligation to Contribute

Section 3. For the property insurance undertakings mentioned in Section 1, Paragraph 1, item 1, the obligation to contribute under Section 2, Paragraph 1, ceases at the end of the financial year in which the undertaking ceases to conduct business.

Paragraph 2. For the property insurance undertakings mentioned in Section 1, Paragraph 1, items 2 and 3, the obligation to contribute under Section 2, Paragraph 1, ceases at the end of the financial year in which the undertaking is no longer notified to conduct insurance business in Denmark via a branch or cross-border provision of services, or at the point in time when the Danish Financial Supervisory Authority prohibits the undertaking from conducting business in Denmark.

Paragraph 3. For the life insurance undertakings mentioned in Section 1, Paragraph 1, item 4, the obligation to contribute under Section 2, Paragraph 1, ceases at the end of the financial year in which the undertaking ceases to conduct occupational accident insurance business.

Paragraph 4. For the life insurance undertakings mentioned in Section 1, Paragraph 1, items 5 and 6, the obligation to contribute under Section 2, Paragraph 1, ceases at the end of the financial year in which the undertaking is no longer notified to conduct occupational accident insurance business in Denmark via a branch or cross-border provision of services, or at the point in time when the Danish Financial Supervisory Authority prohibits the undertaking from conducting occupational accident insurance business in Denmark.

Paragraph 5. Notwithstanding Paragraphs 1-4, the obligation to contribute under Section 2, Paragraph 1, ceases at the end of the financial year in which the Fund's assets amount to DKK 300 million from contributions paid in for the insurance types mentioned in Section 4, Paragraph 1, DKK 100 million from contributions paid in for motor liability insurance, cf. Section 5, Paragraph 1, and DKK 200 million from contributions paid in for occupational accident insurance, including violence damage insurance taken out as an extension of occupational accident insurance, and independently underwritten violence damage insurance, cf. Section 8, Paragraphs 1 and 2.

Calculation of Contributions for Consumer Insurance and Insurance Comparable Thereto

Section 4. The property insurance undertakings mentioned in Section 1, Paragraph 1, items 1-3, shall pay a fixed amount per policy to the Fund for the following insurance types, which are underwritten in Denmark for risks in Denmark:

1. Motor comprehensive insurance.
2. Family insurance.
3. Homeowner insurance.
4. Health insurance.
5. Property transfer insurance.
6. Seller liability insurance.
7. Building damage insurance.

Paragraph 2. If a property insurance undertaking mentioned in Section 1, Paragraph 1, items 1-3, has entered into several of the insurance types mentioned in Paragraph 1 on the same policy, or if several persons or entities are covered by the same policy, the property insurance undertaking shall pay a fixed amount per insurance type on the policy.

Paragraph 3. Paragraphs 1 and 2 apply to both new business and renewal of an insurance type mentioned in Paragraph 1.

Section 5. The property insurance undertakings mentioned in Section 1, Paragraph 1, item 1, in addition to the obligation in Section 4, Paragraph 1, shall pay a fixed amount per policy to the Fund for motor liability insurance underwritten for policyholders in Denmark and in other countries within the European Union or countries with which the Union has concluded an agreement in the financial sector.

Paragraph 2. If a property insurance undertaking mentioned in Section 1, Paragraph 1, item 1, has entered into motor liability insurance, cf. Paragraph 1, on the same policy together with one or more of the insurance types mentioned in Section 4, Paragraph 1, or if several persons or entities are covered by the same policy, the insurance undertaking shall pay a fixed amount per insurance type on the policy.

Paragraph 3. Paragraphs 1 and 2 apply to both new business and renewal of a motor liability insurance and an insurance type mentioned in Paragraph 1.

Section 6. The Danish Financial Supervisory Authority informs the Fund once a year of the size of the amount per policy that the property insurance undertakings shall use when calculating contributions to the Fund. The Danish Financial Supervisory Authority informs the Fund no later than six months before the property insurance undertakings are to pay the contribution.

Paragraph 2. The property insurance undertakings shall pay the contribution to the Fund no later than 1 May, 1 August, 1 November, and 1 February for the insurances, cf. Section 4, Paragraph 1, and Section 5, Paragraph 1, which the property insurance undertaking has newly underwritten or renewed in the 1st, 2nd, 3rd, and 4th quarters, respectively. The property insurance undertakings shall pay the first contribution to the Fund on the date, cf. the first sentence, that follows first after the expiry of the six months from when the Danish Financial Supervisory Authority has given notice under Paragraph 1.

Paragraph 3. The property insurance undertakings may charge the amount per policy that the property insurance undertakings shall pay to the Fund from the policyholders who have underwritten or renewed an insurance mentioned in Section 4, Paragraph 1, and Section 5, Paragraph 1.

Paragraph 4. Amounts charged pursuant to Paragraph 3 will not be refunded to the policyholder, regardless of whether the insurance terminates early.

Calculation of Contributions for Occupational Accident Insurance and Independently Underwritten Violence Damage Insurance

Section 7. In the calculation of contributions pursuant to Sections 8 and 9, occupational accident insurance includes both occupational accident insurance taken out without violence damage insurance as an extension of occupational accident insurance and occupational accident insurance where violence damage insurance has been taken out as an extension of occupational accident insurance.

Section 8. Insurance undertakings mentioned in Section 1, Paragraph 1, with permission to conduct occupational accident insurance business, shall pay an amount to the Fund per insured person under an occupational accident insurance in Denmark for risks in Denmark.

Paragraph 2. Insurance undertakings mentioned in Section 1, Paragraph 1, shall pay an amount to the Fund per insured person under an independently underwritten violence damage insurance in Denmark for risks in Denmark.

Paragraph 3. The obligation to contribute under Paragraphs 1 and 2 applies to both fully insured persons and persons with part-time employment with the policyholder who has taken out the occupational accident insurance and the independently underwritten violence damage insurance. Fully insured under an occupational accident insurance and an independently underwritten violence damage insurance is the person who is employed by the policyholder for at least 1,665 hours per year. For insured persons under occupational accident insurance and independently underwritten violence damage insurance who are employed by the policyholder for less than 1,665 hours per year, the working time is converted to full-time as the share of hours out of 1,665 hours per year.

Paragraph 4. The insurance undertakings shall pay advance payments to the Fund pursuant to Paragraphs 1 and 2 based on the policyholders' estimated number of insured persons under occupational accident insurance and independently underwritten violence damage insurance, which have been newly underwritten or renewed in the quarter. The contribution to the Fund is adjusted afterwards based on the actual number of insured persons, which is calculated at the expiry of the occupational accident insurance and the independently underwritten violence damage insurance. Adjustment of contributions paid to the Fund takes place quarterly, such that each quarter is adjusted in the corresponding quarter in the following year.

Paragraph 5. The Fund may grant insurance undertakings dispensation from the deadlines for adjustment, cf. Section 9, Paragraph 3, regarding individual occupational accident insurance policies and independently underwritten violence damage insurance policies upon request, and provided that it has not been possible for the insurance undertakings to obtain the necessary information about the actual number of insured persons from the policyholder before the deadline expires.

Section 9. The Danish Financial Supervisory Authority informs the Fund once a year of the size of the amount per insured person under an occupational accident insurance and an independently underwritten violence damage insurance that the insurance undertakings shall use when calculating contributions to the Fund. The Danish Financial Supervisory Authority informs the Fund no later than six months before the insurance undertakings are to pay the contribution.

Paragraph 2. The insurance undertakings shall pay the contribution to the Fund no later than 1 May, 1 August, 1 November, and 1 February for the occupational accident insurance and independently underwritten violence damage insurance, which the insurance undertaking has newly underwritten or renewed in the 1st, 2nd, 3rd, and 4th quarters, respectively. The insurance undertakings shall pay the first contribution to the Fund on the date, cf. the first sentence, that follows first after the expiry of the six months from when the Danish Financial Supervisory Authority has given notice under Paragraph 1.

Paragraph 3. The insurance undertakings shall annually adjust the quarterly advance payments to the Fund, cf. Section 8, Paragraph 4, second and third sentences. The adjustment shall take place simultaneously with the point in time for the advance payment of contributions for the 1st, 2nd, 3rd, and 4th quarters, respectively, and regardless of whether the insurance undertaking is to pay contributions to the Fund in the quarter in question.

Paragraph 4. The insurance undertakings may charge the amount per insured person under an occupational accident insurance and an independently underwritten violence damage insurance that the insurance undertakings shall pay to the Fund from the policyholders who have underwritten or renewed an occupational accident insurance or an independently underwritten violence damage insurance.

Paragraph 5. Amounts charged pursuant to Paragraph 4 will not be refunded to the policyholder, regardless of whether the insurance terminates early, subject to Section 8, Paragraph 4, second and third sentences, according to which the charged amounts are adjusted for the actual number of insured persons at the time of the termination of the insurance.

Entry into Force

Section 10. This Order enters into force on 1 July 2025.

Paragraph 2. Order No. 511 of 24 May 2024 on contributions to the Guarantee Fund for Property Insurance Undertakings is repealed.

Danish Financial Supervisory Authority, 26 May 2025 Louise Mogensen / Jacob W. L. Sønderaas