ORDINANCE No. 67 of 04.07.2019 on the Procedure for Electronic Registration of Insurance Intermediaries

Published: State Gazette, No. 55 of 12.07.2019 Adopted by: Decision No. 845-N of 04.07.2019 of the Commission for Financial Supervision

General Provisions

Art. 1. (1) This Ordinance determines the procedure and manner for submitting documents for entry in the register under Art. 30, para. 1, item 12 of the Law on the Commission for Financial Supervision (LCFS) for insurance intermediaries via electronic means.

(2) An application for entry of an insurance broker may be submitted in accordance with this Ordinance. Attachments and additional information to an application for entry of an insurance broker submitted in accordance with this Ordinance may also be submitted on paper.

(3) An application for entry of an insurance agent under Art. 319, para. 2, first sentence of the Insurance Code (IC) and an application for registration of an intermediary offering insurance products under Art. 321b, para. 3 in conjunction with Art. 319, para. 2, first sentence of the IC, shall be submitted only in accordance with this Ordinance.

(4) An application for entry of an insurance agent under Art. 319, para. 2, second sentence of the IC and of an intermediary offering insurance products under Art. 321b, para. 3 in conjunction with Art. 319, para. 2, second sentence of the IC, may be submitted in accordance with this Ordinance. Attachments and additional information to an application for entry under the first sentence, submitted in accordance with this Ordinance, may also be submitted on paper.

Registration of an Insurance Broker

Art. 2. An application for entry of an insurance broker via email is submitted using Form Annex No. 1.1 (for applicant legal entities) or Annex No. 1.2 (for applicant sole traders) to this Ordinance. The application may also be submitted on the website of the Commission for Financial Supervision by filling out a published form.

Registration of an Insurance Agent

Art. 3. (1) The submission of an application for entry of an insurance agent in the register under Art. 30, para. 1, item 12 of the LCFS, as well as for changes to entered circumstances related to the agent's record, is carried out via the Online Portal - Insurance Agents and Intermediaries Offering Insurance Products as an Additional Activity (Online Portal).

(2) To submit an application for entry of insurance agents and to make changes to entered circumstances in the register under Art. 30, para. 1, item 12 of the LCFS, registration of the insurer and of designated employees of the insurer in the Online Portal under para. 1 is required. The registration and other requirements for using the portal are determined by the User Guide - Annex No. 3 to this Ordinance.

(3) To establish the compliance of the person with whom the insurer intends to conclude an insurance agency contract with the requirements of Chapter Thirty-One of the IC, the insurer checks the relevant documents under Art. 307 of the IC, on the basis of which compliance with Art. 318, para. 1 of the IC is established. When official documents are not provided for establishing certain circumstances, they are established by a declaration from the person.

(4) After carrying out the check under Art. 318, para. 1 of the IC, the insurer submits an application for entry of the insurance agent in the register under Art. 30, para. 1, item 12 of the LCFS via a registered employee under para. 2. The submission of the application for entry is considered verification that the check under Art. 318, para. 1 of the IC has been carried out and that the respective person meets the requirements of Art. 318, para. 1 of the IC.

(5) Applications for entry are submitted using forms according to:

1. Annex No. 4.1. Agents Legal Entities - adding new contracts;
2. Annex No. 4.2. Agents Sole Traders - adding new contracts;
3. Annex No. 4.3. Agents Natural Persons - adding new contracts.

(6) Submission of applications for entry of changes to entered circumstances is carried out using forms according to:

1. Annex No. 4.4. Agents Legal Entities - termination/correction of contracts;
2. Annex No. 4.5. Agents Sole Traders - termination/correction of contracts;
3. Annex No. 4.6. Agents Natural Persons - termination/correction of contracts;
4. Annex No. 4.7. Agents Legal Entities - correction of offered insurance products addition/removal;
5. Annex No. 4.8. Agents Sole Traders - correction of offered insurance products addition/removal;
6. Annex No. 4.9. Agents Natural Persons - correction of offered insurance products addition/removal.

(7) The forms under para. 5 and 6 are filled out in accordance with the Instructions regarding the filling out and submission to the Commission for Financial Supervision of data for insurance agents - Annex No. 5. The nomenclature of insurers is determined by the Commission for Financial Supervision and published on its internet page. The content of "Insurance Classes" is determined according to Annex No. 6.

(8) After attaching the application in the Online Portal, the system performs an automatic check of its content. If irregularities in the filling out of information are detected, the system refuses to validate the application, does not allow its signing, and displays an error message.

(9) If the application is filled out correctly, the system validates its content and allows it to be signed with a qualified electronic signature and submitted.

(10) Upon successful submission of the application, the system registers it with an incoming number and reflects the corresponding changes in the register under Art. 30, para. 1, item 12 of the LCFS.

Registration of an Intermediary Offering Insurance Products as an Additional Activity

Art. 4. (1) The submission of an application for entry of an intermediary offering insurance products as an additional activity in the register under Art. 30, para. 1, item 12 of the LCFS, as well as for changes to entered circumstances, is carried out via the Online Portal under Art. 3, para. 1.

(2) To submit an application for entry of an intermediary offering insurance products as an additional activity and to make changes to entered circumstances in the register under Art. 30, para. 1, item 12 of the LCFS, registration of the insurer and of designated employees of the insurer in the portal under Art. 3, para. 1 is required. The registration and other requirements for using the portal are determined by the User Guide - Annex No. 3 to this Ordinance.

(3) To establish the compliance of the person with whom the insurer intends to conclude an intermediary contract with the requirements of Chapter Thirty-One 'a' in conjunction with Chapter Thirty-One of the IC, the insurer checks the relevant documents under Art. 307 of the IC, on the basis of which compliance with Art. 318, para. 1 of the IC is established. When official documents are not provided for establishing certain circumstances, they are established by a declaration from the person.

(4) After carrying out the check under Art. 321b, para. 3 in conjunction with Art. 318, para. 1 and with Art. 321b, paras. 1 and 2 of the IC, the insurer submits an application for entry of the intermediary offering insurance products as an additional activity in the register under Art. 30, para. 1, item 12 of the LCFS via a registered employee under para. 2. The submission of the application for entry is considered verification that the check under Art. 321b, para. 3 in conjunction with Art. 318, para. 1 of the IC has been carried out and that the respective person meets the requirements of Art. 318, para. 1 in conjunction with Art. 321b, paras. 1 and 2 of the IC.

(5) Applications for entry are submitted using forms according to:

1. Annex No. 7.1. Intermediaries AA Legal Entities - adding new contracts;
2. Annex No. 7.2. Intermediaries AA Sole Traders - adding new contracts;
3. Annex No. 7.3. Intermediaries AA Natural Persons - adding new contracts.

(6) Submission of applications for entry of changes to entered circumstances is carried out using forms according to:

1. Annex No. 7.4. Intermediaries AA Legal Entities - termination/correction of contracts;
2. Annex No. 7.5. Intermediaries AA Sole Traders - termination/correction of contracts;
3. Annex No. 7.6. Intermediaries AA Natural Persons - termination/correction of contracts;
4. Annex No. 7.7. Intermediaries AA Legal Entities - correction of offered insurance products addition/removal;
5. Annex No. 7.8. Intermediaries AA Sole Traders - correction of offered insurance products addition/removal;
6. Annex No. 7.9. Intermediaries AA Natural Persons - correction of offered insurance products addition/removal.

(7) The forms under para. 5 and 6 are filled out in accordance with the Instructions regarding the filling out and submission to the Commission for Financial Supervision of data for intermediaries offering insurance products as an additional activity - Annex No. 8. The nomenclature of insurers is determined by the Commission for Financial Supervision and published on its internet page. The content of "Insurance Classes" is determined according to Annex No. 6.

(8) After attaching the application in the Online Portal, the system performs an automatic check of its content. If irregularities in the filling out of information are detected, the system refuses to validate the application, does not allow its signing, and displays an error message.

(9) If the application is filled out correctly, the system validates its content and allows it to be signed with a qualified electronic signature and submitted.

(10) Upon successful submission of the application, the system registers it with an incoming number and reflects the corresponding changes in the register under Art. 30, para. 1, item 12 of the LCFS.

Supervision

Art. 5. (1) When submitting the applications under Art. 3 and 4, the insurer fills in the required information truthfully, accurately, and comprehensively.

(2) The Commission for Financial Supervision, or its Deputy Chairman, heading the "Insurance Supervision" Department, within its powers, exercises supervision over the compliance of the insurer with its obligations regarding the registration of insurance agents and intermediaries offering insurance products as an additional activity.

Registration of an Insurance Agent or an Intermediary Offering Insurance Products as an Additional Activity, Acting as an Intermediary for Insurers from Other EU Member States, Conducting Business in the Republic of Bulgaria under the Conditions of Freedom to Provide Services

Art. 6. An application for entry of an insurance agent or an intermediary offering insurance products as an additional activity, acting as an intermediary for an insurer from another EU Member State, conducting business in the Republic of Bulgaria under the conditions of freedom to provide services, is submitted via email using Form Annex No. 9.1 (for applicant legal entities) or Annex No. 9.2 (for applicant sole traders), or Annex No. 9.3 (for applicant natural persons) to this Ordinance. The application may also be submitted on the website of the Commission for Financial Supervision by filling out a published form.

Administrative Penalty Provisions

Art. 7. (1) Persons who have committed violations of this Ordinance, as well as persons who have allowed the commission of violations of this Ordinance, shall be punished in accordance with Art. 644 of the IC.

(2) Acts establishing the violations of this Ordinance are drawn up by officials authorized by the Deputy Chairman, and penalty orders are issued by the Deputy Chairman.

(3) The establishment of violations, the issuance, appeal, and execution of penalty orders are carried out in accordance with the Law on Administrative Offences and Penalties.

Additional Provisions

§ 1. (1) All documents in a foreign language submitted in accordance with this Ordinance must meet the requirements of § 3 of the Additional Provisions of the IC.

(2) The forms under this Ordinance are filled out in Bulgarian and signed electronically with a qualified electronic signature in accordance with the Law on Electronic Document and Electronic Attestation Services.

§ 2. When submitting an application for entry of an insurance broker or an insurance agent under Art. 319, para. 2, second sentence of the IC via email, the forms under the Ordinance are used, the procedure under the Law on Electronic Governance is applied, and the email address for submitting applications is announced on the Commission's website. When submitting an application for entry of an insurance broker or an insurance agent under Art. 319, para. 2, second sentence of the IC on paper, the forms under the Ordinance may be used.

Transitional and Final Provisions

§ 3. (1) Within two months from the date of entry into force of this Ordinance, applications under Art. 3 for entry in the Online Portal are submitted in accordance with Order No. 198 of 27.06.2017 of the Deputy Chairman heading the "Insurance Supervision" Department.

(2) Within two months from the date of entry into force of this Ordinance, applications under Art. 4 are submitted via email with a qualified electronic signature using the details in Annex No. 7, complying with the instructions in Annex No. 8.

§ 4. In Ordinance No. 15 of 2004 on the Keeping and Storage of Registers by the Commission for Financial Supervision and on the Circumstances Subject to Entry (published, State Gazette, No. 54 of 2004; amended, No. 15 of 2005; amended and supplemented, No. 12 and 53 of 2006, No. 22 of 2007, No. 63 and 68 of 2008; amended, No. 13 of 2009, No. 49 of 2010; amended and supplemented, No. 68 and 90 of 2014, No. 95 of 2017, No. 101 of 2018), the following amendments and supplements are made:

1. In Art. 2, item 14 is amended as follows:
   "14. insurance brokers, insurance agents, and intermediaries offering insurance products as an additional activity;"

2. In Art. 4, para. 3, after the words "commercial register", the words "and the register of non-profit legal entities" are added.

3. In Art. 14, para. 1, item 26, after the words "commercial register", the words "and the register of non-profit legal entities" are added.

4. In Art. 17, para. 5, after the words "commercial register", the words "and the register of non-profit legal entities" are added.

5. In Art. 25, the following amendments are made:
   a) In para. 1, item 20, the word "type" is replaced with "class"; b) In para. 3, item 3, the word "types" is replaced with "classes"; c) In para. 4, item 1, the word "types" is replaced with "classes".

6. The title of Section X is amended as follows:
   "Circumstances Subject to Entry in the Register of Insurance Brokers, Insurance Agents, and Intermediaries Offering Insurance Products as an Additional Activity Subject to Registration."

7. In Art. 27:
   a) In para. 3:
   aa) In the main text, after the words "legal entities", the words "and intermediaries offering insurance products as an additional activity - legal entities," are added; bb) Items 1 and 2 are amended as follows:
   "1. the name, seat, and management address of the insurer under Art. 315, para. 1 IC, with whom the insurance agent, respectively the intermediary offering insurance products as an additional activity, has concluded a contract (for insurers from the register under Art. 30, para. 1, item 9 LCFS, only the name is entered), the date of conclusion, respectively the date of termination of the contract, as well as the classes of insurance products in which it acts as an intermediary;
   2. the data under item 1 for other insurers with whom the insurance agent, respectively the intermediary offering insurance products as an additional activity, has concluded a contract in accordance with Art. 315, para. 2 IC, the date of conclusion, respectively the date of termination of the contract, as well as the classes of insurance products in which it acts as an intermediary;"
   cc) Item 4 is amended as follows:
   "4. the name of the insurer with whom the insurance agent, respectively the intermediary offering insurance products as an additional activity, is insured in accordance with Art. 316, para. 2 IC, and the term of the insurance, respectively the declaration from the insurer, for whom the insurance agent, respectively the intermediary offering insurance products as an additional activity, acts as an intermediary, for full liability for its actions as an intermediary, the date of its issuance and its term, if the declaration is time-bound;" dd) In item 5, after the words "insurance agent", a comma is placed and the words "respectively the intermediary offering insurance products as an additional activity," are added; ee) In item 6, after the words "insurance agent", a comma is placed and the words "respectively the intermediary offering insurance products as an additional activity," are added; ff) In item 7, after the words "insurance agent", a comma is placed and the words "respectively the intermediary offering insurance products as an additional activity," are added; b) Paragraph 4 is amended as follows:
   "(4) For insurance agents, respectively intermediaries offering insurance products as an additional activity - sole traders, the relevant circumstances under Art. 14, as well as the circumstances under para. 3, are entered in the register." c) In para. 5:
   aa) In the main text, after the words "natural persons", the words "and intermediaries offering insurance products as an additional activity - natural persons," are added; bb) In item 3, after the words "insurance agent", a comma is placed and the words "respectively the intermediary offering insurance products as an additional activity" are added; d) In para. 6:
   aa) The main text is amended as follows:
   "(6) For insurance intermediaries, respectively intermediaries offering insurance products as an additional activity, from another Member State, the following are entered in the register:"; bb) Item 5 is amended as follows:
   "5. the name of the insurer(s), on whose behalf and for whose account the intermediary acts as an intermediary - for insurance intermediaries, respectively intermediaries offering insurance products as an additional activity, which are bound to one or more insurers;" cc) In item 6, the word "insurance" is deleted; e) Paragraph 8 is amended as follows:
   "(8) Art. 14 does not apply to intermediaries under para. 6. Art. 14, para. 1, items 7 - 21 does not apply to insurance agents and intermediaries offering insurance products as an additional activity under paras. 3 - 5."

§ 5. (1) This Ordinance is issued on the basis of Art. 296, para. 8 of the Insurance Code.

(2) On the basis of Art. 5, para. 4 of Ordinance No. 15 of 2004 on the Keeping and Storage of Registers by the Commission for Financial Supervision and on the Circumstances Subject to Entry, this Ordinance determines mandatory electronic registration forms for applications for registration of insurance brokers via the internet. On the basis of Art. 4, para. 4 and Art. 5, para. 4 of Ordinance No. 15 of 2004 on the Keeping and Storage of Registers by the Commission for Financial Supervision and on the Circumstances Subject to Entry, this Ordinance determines that entries in the register of insurance agents and of intermediaries offering insurance products as an additional activity under Art. 319, para. 2, first sentence of the Insurance Code, and changes to these entries, are carried out entirely via electronic means, and determines mandatory electronic registration forms for these entries.

(3) The Ordinance was adopted by Decision No. 845-N of 04.07.2019 of the Commission for Financial Supervision.

Chairman: Boyko Atanasov

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Annex No. 1.1 to Art. 2

Application for Entry of an Insurance Broker - Legal Entity

TO THE COMMISSION FOR FINANCIAL SUPERVISION

APPLICATION FOR ENTRY
OF AN INSURANCE BROKER
UNDER ART. 307, PARA. 1 OF THE
INSURANCE CODE

from ………………………........… ....................................... , (firm of the applicant) (legal-organizational form)
EIK or code by BULSTAT .............................................
................................................................................................ ,
ICPS (LEI code, if available) ....................................
................................................................................................ ,
with seat .................................................. , management address .........................................................................
................................................................................................ ,

represented by ...........................................................
.................................................................................................
................................................................................................ , (names of legal representative or attorney-in-fact of the applicant according to identity document) EGN/LN/LNCH ....................................................................... , correspondence address ............................................. , telephone …………., fax .................. (if available), electronic address (e-mail) ............................................. , internet page (Web-site) (if available).

Notes: Filling out each field is mandatory. When a field is marked as "if available", in the absence of the corresponding information, "none" is entered.

DEAR SIR/MADAM,

I wish the legal entity I represent to conduct business as an insurance broker and I request that it be entered in the register under Art. 30, para. 1, item 12 of the Law on the Commission for Financial Supervision.

I. GENERAL INFORMATION ABOUT THE LEGAL ENTITY FOR THE PURPOSES OF ENTRY:

1. list of seats and office addresses and branches (according to Annex No. 2): ......
2. date of establishment: ....................................................
3. manner of establishment: ..................................................
4. subject of activity: ....................................................
5. term of establishment: ...................... (if any)
6. size of capital: ....................................................
7. number of shares/parts: ........................................
8. nominal value of share/part: .........................
9. type, classes of shares and rights thereto, including special rights and privileges, if provided (for joint-stock companies and limited partnerships with shares):
   .................................................................................................
   .................................................................................................
10. procedure for transfer of shares, respectively parts:
    .................................................................................................
11. manner of representation: .......................................
    .................................................................................................
12. management and control bodies: ..........................
    .................................................................................................
13. names of members of control bodies (for legal entity members: name, EIK, seat, management address):
    .................................................................................................
    .................................................................................................
14. names of natural persons who represent legal entities as members of control bodies:
    .................................................................................................
15. other registers of the CFS in which the entity is kept:
    .................................................................................................

Note. Filling out each field is mandatory. When the information is not applicable to the respective legal entity, "none" is entered.

II. INFORMATION ON THE ASSESSMENT OF CONDITIONS FOR ENTRY

1. Declarations:
   1.1. The legal entity I represent, the members of its management and control bodies, other persons authorized to manage and represent it, and the appointed employees who are immediately intended to be engaged in insurance intermediary activity, do not conduct business as insurance agents;
   1.2. The company I represent (coop...