Order on Permits for Non-Life Insurance Undertakings and Captive Reinsurance Undertakings

Order on Permits for Non-Life Insurance Undertakings and Captive Reinsurance Undertakings 1)

Pursuant to Section 20, Paragraph 2, of Act No. 718 of 13 June 2023 on Insurance Business, it is hereby prescribed:

Application for Permit, etc.

Section 1. This Order applies to non-life insurance undertakings and captive reinsurance undertakings.

Section 2. The application for a permit must contain information about the business the undertaking intends to conduct, specifying insurance classes, groups of classes, and any accessory risks, cf. Section 4.

Paragraph 2. The application must be accompanied by the following attachments:

1. The deed of incorporation and other documents created in connection with the incorporation, in original or as a copy confirmed by the board of directors.
2. A certified extract of the minutes from the constituting general meeting.
3. A business plan, cf. Section 20, Paragraph 1, of the Act on Insurance Business and the Order on Solvency and Business Plans for Insurance Undertakings.
4. Information about all persons who directly or indirectly own at least 10 percent of the capital or voting rights, or a share of capital that enables the exercise of significant influence over the management of the insurance undertaking, or who otherwise have close links to the insurance undertaking, as well as the size of these shareholders' share of capital.
5. A description of business processes and administrative conditions, cf. Section 19, Paragraph 1, No. 6, of the Act on Insurance Business.
6. Information about the applicant's head office and domicile in Denmark, cf. Section 19, Paragraph 1, No. 8, of the Act on Insurance Business.

Section 3. If the undertaking seeks a permit for insurance class 10 (liability insurance for motor vehicles driven on land), excluding the carrier's liability, the application must be accompanied by information about whom the undertaking will appoint as a claims representative in each of the other countries in the European Union or in countries with which the Community has concluded an agreement.

Paragraph 2. The claims representative must have the authority to collect all necessary information in connection with claims and to represent the undertaking towards injured parties who may make claims, including regarding the payment of such claims, cf. Paragraph 3.

Paragraph 3. Injured parties who must be resident in a country other than Denmark in the European Union or in another country with which the Community has concluded an agreement may make claims when:

1. the claim arose as a result of an accident in a country other than Denmark in the European Union or in a country with which the Community has concluded an agreement, or in a third country adhering to the Green Card scheme, and
2. the damage was caused by vehicles resident in a country other than Denmark in the European Union or in a country with which the Community has concluded an agreement, and which are insured by an undertaking with its statutory seat in Denmark.

Paragraph 4. The claims representative must be resident or established in the country where he is appointed and must be able to handle claims cases in the country's official language.

Content of the Permit

Section 4. A permit is granted separately for each of the following insurance classes:

1. Accidents (including occupational accidents and occupational diseases): sum insurance, compensation for economic loss, combinations thereof, and passenger transport.
2. Illness: sum insurance, compensation for economic loss, and combinations thereof.
3. Motor vehicle comprehensive insurance (excluding rolling stock of railways): all damage to motor-driven land vehicles and non-motor-driven land vehicles.
4. Railway vehicle comprehensive insurance: all damage to railway vehicles.
5. Aircraft comprehensive insurance: all damage to aircraft.
6. Comprehensive insurance for vessels navigating on seas, inland waters, and rivers: all damage to river vessels, inland vessels, and sea vessels.
7. Cargo transport (including goods, luggage, and all other goods): all damage to transported goods or luggage regardless of the type of means of transport.
8. Fire and natural forces: all damage to property (excluding property covered by classes 3, 4, 5, 6, and 7), when caused by fire, explosion, storm, natural forces (excluding storm), nuclear energy, and landslides.
9. Other damage to property: all damage to property (excluding property covered by classes 3, 4, 5, 6, and 7), when these damages are due to hail or frost or causes of any kind, e.g., theft, except those mentioned under No. 8.
10. Liability insurance for motor vehicles driven on land: any liability arising from the use of motor vehicles driven on land (including the driver's liability).
11. Liability insurance for aircraft: any liability arising from the use of aircraft (including the driver's liability).
12. Liability insurance for vessels navigating on seas, inland waters, and rivers: any liability arising from the use of river, inland, and sea vessels (including the driver's liability).
13. General liability insurance: any liability not mentioned under numbers 10, 11, and 12.
14. Credit: general insolvency, export credit, installment sales, mortgage insurance, and agricultural insurance.
15. Suretyship: direct suretyship and indirect suretyship.
16. Various economic losses: unemployment risks, collection losses (general), bad weather, loss of profit, continuing general expenses, unforeseen trading expenses, loss of sales value, rent or income loss, indirect trade loss, excluding the above-mentioned, non-business economic losses, and other economic losses.
17. Legal expenses insurance: legal expenses insurance.
18. Assistance: assistance to persons who come into difficulties during transport or while absent from their residence or permanent place of abode.

Paragraph 2. Risks covered by a class cannot be classified in another class, except in the cases mentioned in Paragraph 5.

Paragraph 3. A permit covers the entire relevant class, unless the applicant only wishes to cover part of the risks belonging to the relevant class.

Paragraph 4. A permit may be granted simultaneously for several classes. When the permit simultaneously covers:

1. classes 1 and 2, it is granted under the name "accident and illness,"
2. classes 1 (however, only passenger transport), 3, 7, and 10, it is granted under the name "motor insurance,"
3. classes 1 (however, only passenger transport), 4, 6, 7, and 12, it is granted under the name "marine and transport insurance,"
4. classes 1 (however, only passenger transport), 5, 7, and 11, it is granted under the name "aviation insurance,"
5. classes 8 and 9, it is granted under the name "fire and other damage to property,"
6. classes 10, 11, 12, and 13, it is granted under the name "liability insurance,"
7. classes 14 and 15, it is granted under the name "credit and suretyship," or
8. all classes, it is granted under the name "insurance business within classes 1-18."

Paragraph 5. The permit granted for an insurance class or for a group of classes also covers as accessory risks the risks belonging to another class, without a permit being required for these risks, provided they are included in the principal risk and concern the object covered by the contract covering the principal risk. Credit insurance, suretyship insurance, and legal expenses insurance, cf. Paragraph 1, classes 14, 15, and 17, may however not be accessory risks to other classes.

Paragraph 6. The risk covered by class 17, legal expenses insurance, may however be regarded as an accessory risk to class 18, assistance, when the conditions in Paragraph 5, first sentence, are met, and when the principal risk only concerns assistance to persons who come into difficulties during travel or while absent from their residence or permanent place of abode. Legal expenses insurance may likewise be regarded as an accessory risk under the conditions mentioned in Paragraph 5, when it is linked to disputes or risks arising from the use of ships, or which can be attributed to such use.

Section 5. A permit may not cover other business than that for which there is authority according to the articles of association's statement of the company's purpose. The permit may cover business that is less extensive than the company's purpose.

Paragraph 2. A permit is granted without time limitation.

Section 6. A permit must contain information about:

1. the company's statutory name,
2. the company's statutory seat,
3. the company's legal form,
4. the company's CVR number, and
5. the insurance classes, groups of classes, and restrictions therein covered by the permit, cf. Section 4.

Entry into Force

Section 7. The Order enters into force on 1 January 2025.

Paragraph 2. Order No. 1233 of 22 October 2007 on permits for non-life insurance undertakings and captive reinsurance undertakings is repealed.

Danish Financial Supervisory Authority, 5 December 2024 Louise Mogensen / Line Bergmann

1. The Order contains provisions implementing parts of the following directives: Council Directive 73/239, Official Journal of the European Communities 1973 L 228, p. 3 (First Non-Life Insurance Directive), Council Directive 84/641, Official Journal of the European Communities 1984 L 339, p. 21 (Tourist Assistance Directive), Council Directive 87/344, Official Journal of the European Communities L 185, p. 77 (Legal Expenses Insurance Directive), Council Directive 88/357, Official Journal of the European Communities 1988 L 172, p. 1 (Second Non-Life Insurance Directive), and Council Directive 92/49, Official Journal of the European Communities 1992 L 228, p. 1 (Third Non-Life Insurance Directive), Directive 98/78/EC of the European Parliament and of the Council, Official Journal of the European Communities 1998 L 330, p. 1 (Insurance Group Directive), and Directive 2000/26/EC of the European Parliament and of the Council, Official Journal of the European Communities 2000 L 181, p. 65ff (Fourth Motor Vehicle Insurance Directive), Council Directive 2005/68/EC of 16 November 2005, Official Journal of the European Union 2005 No. L 323, p. 1 (Reinsurance Directive).

Danish Law Register 2024 Published on 13 December 2024 5 December 2024. No. 1516. Ministry of Industry, Business and Financial Affairs, Danish Financial Supervisory Authority, file no. 24-019423 CQ003069