Regulation on the Content of Applications for Approval to Transfer or Assume Insurance Portfolios by Insurance or Reinsurance Companies (NN, No. 7/16, 91/16)

Unofficial Consolidated Text
(„Narodne novine“ No. 7/16, 91/16)

REGULATION ON THE CONTENT OF APPLICATIONS FOR ISSUING APPROVAL FOR THE TRANSFER OR ASSUMPTION OF INSURANCE PORTFOLIOS BY INSURANCE OR REINSURANCE COMPANIES

Article 1.
(1) By this Regulation, the Croatian Financial Services Supervisory Agency (hereinafter: the Agency) prescribes the conditions for the transfer and assumption of insurance portfolios, namely:
– the content of applications for issuing approval for the transfer or assumption of insurance portfolios, and – the documentation submitted together with the application for issuing approval for the transfer or assumption of insurance portfolios.
(2) An insurance portfolio, within the meaning of this Regulation, consists of insurance contracts concluded by an insurance company that are subject to transfer or assumption.

Transfer and Assumption of Insurance Portfolios between Insurance Companies with Seats in the Republic of Croatia
Article 2.
(1) An insurance company with its seat in the Republic of Croatia may transfer all or part of its insurance contracts (hereinafter: insurance portfolio) to another insurance company with its seat in the Republic of Croatia, provided that the assuming insurance company first obtains approval from the Agency for the assumption of that insurance portfolio. (2) The application by the assuming insurance company for issuing approval to assume an insurance portfolio must contain:
1. the name, seat, and OIB (Personal Identification Number) of the insurance company assuming the portfolio and the insurance company transferring the portfolio,
2. a precise request for which approval is sought, from which it can be determined whether approval is sought for the assumption of the entire or part of the insurance portfolio by specifying what that portfolio covers, such that:
– when the subject of assumption is part of an insurance portfolio, it must be stated whether the portfolio is assumed from a specific group or type of insurance or a specific risk within an insurance type, and whether in that case all or part of the contracts from that group, type, or specific risk are subject to transfer, or whether the entire insurance portfolio is assumed that covers all insurance contracts from a specific insurance group, one or all types of insurance, or specific or all risk types within a specific type of insurance for which the insurance company from which the portfolio is assumed has concluded insurance contracts, and – when the subject of assumption is an insurance portfolio consisting of insurance contracts concluded on the basis of the right of establishment or freedom to provide services, the data from the preceding indent must be stated separately for those insurance contracts,
3. a statement on whether the assets of the transferring insurance company are subject to transfer,
4. a statement on how and within what timeframe the assuming insurance company will fulfill its obligation to notify policyholders and third parties regarding the completed assumption of the insurance portfolio.
(3) Together with the application from paragraph 2 of this Article, the assuming insurance company must submit:
1. the contract for the transfer and assumption of the insurance portfolio concluded with the insurance company from which it assumes the portfolio,
2. a business plan of the assuming insurance company with regard to the assumption of the insurance portfolio,
3. proof that the assuming insurance company has sufficient acceptable own funds to cover the required solvency capital after assuming the insurance portfolio,
4. proof of paid fees and administrative charges prescribed by the Regulation on the Type and Amount of Fees and Administrative Charges of the Agency, which are payable for the submitted application.

Transfer of Insurance Portfolios from an Insurance Company with its Seat in the Republic of Croatia to an Insurance Company in Another Member State
Article 3.
(1) An insurance company with its seat in the Republic of Croatia must have prior approval from the Agency to transfer its entire insurance portfolio or part of it to an assuming insurance company in another member state of the European Union or the European Economic Area. (2) The application by the transferring insurance company for issuing approval to transfer an insurance portfolio must appropriately contain the data prescribed in Article 2, paragraph 2 of this Regulation. (3) Together with the application from paragraph 2 of this Article, the transferring insurance company is obliged to submit:

1. the contract for the transfer and assumption of the insurance portfolio,
2. proof of paid fees and administrative charges prescribed by the Regulation on the Type and Amount of Fees and Administrative Charges of the Agency, which are payable for the submitted application.

Assumption of Insurance Portfolios by an Insurance Company with its Seat in the Republic of Croatia from an Insurance Company in Another Member State
Article 4.
(1) An insurance company with its seat in the Republic of Croatia must have prior approval from the Agency to assume the entire insurance portfolio or part of it from a transferring insurance company in another member state of the European Union or the European Economic Area, or from a company whose seat is in a third country, but through its branch established in the member state. (2) The application by the assuming insurance company for issuing approval to assume an insurance portfolio from paragraph 1 of this Article must contain the data prescribed in Article 2, paragraph 2 of this Regulation. (3) Together with the application from paragraph 2 of this Article, the assuming insurance company is obliged to submit the documentation prescribed in Article 2, paragraph 3 of this Regulation.

Transfer of Insurance Portfolios from a Branch of an Insurance Company from a Third Country Established in the Republic of Croatia
Article 5.
(1) An insurance company from a third country (which is not a member state of the European Union or the European Economic Area) must have prior approval from the Agency to transfer the entire or part of its portfolio of insurance contracts belonging to its branch established in the Republic of Croatia to an insurance company established in the Republic of Croatia, or to an insurance company with its seat in another member state of the European Union or the European Economic Area, or in a third country. (2) The application by the transferring insurance company for issuing approval to transfer the portfolio of its branch established in the Republic of Croatia must appropriately contain the data prescribed in Article 2, paragraph 2 of this Regulation and the name and address of the authorized representative in the Republic of Croatia for receiving correspondence in proceedings regarding this application. (3) Together with the application from paragraph 2 of this Article, the assuming insurance company must submit the documentation prescribed in Article 2, paragraph 3 of this Regulation. (4) A company assuming an insurance portfolio must have a license for conducting insurance business that covers the insurance portfolio it assumes.

Documentation
Article 6.
(1) Documentation submitted together with applications under this Regulation, if in a foreign language, must be submitted translated into Croatian by an authorized court interpreter.
(2) Submitted documentation is not returned.
(3) In addition to the documentation prescribed by this Regulation, the Agency may, when it deems necessary for making a decision on an application, call upon the applicant to submit additional documentation required for deciding on the submitted application.

Article 7.
(1) A company is obliged to submit the documentation prescribed by this Regulation to the Agency in the manner and in accordance with the Technical Instruction for Using the WEB Form Entry Service and Submission of Documentation in Electronic Form, and the Instruction for Filling Out WEB Forms for Insurance or Reinsurance Companies. (2) It is considered that a Company has submitted the documentation prescribed by this Regulation at the moment when the documentation is recorded on the server for sending such documentation. (3) In justified cases of technical inability to submit or improperly executed submission (e.g., system failure, inability to read received documentation, etc.) in the manner prescribed by paragraph 1 of this Article, a Company is obliged to submit the documentation in written form, directly or by post for timely reporting. A Company is obliged to submit the documentation in the manner prescribed by paragraph 1 of this Article as soon as the reasons for such inability cease, and no later than within 8 days from the cessation of circumstances causing the technical inability. (4) In addition to the documentation prescribed by this Regulation, a Company is obliged to submit upon request of the Agency additional documentation or data for supervisory purposes or for performing other tasks within the competence and scope of the Agency regarding the Company's operations, in the manner prescribed by the provisions of this Article and within the timeframe specified in the request. (5) The Agency may, if necessary, request a Company to submit certain documentation prescribed by this Regulation in original or certified copy, regardless of the electronic submission already made.

Entry into Force of the Regulation
Article 8.
This Regulation enters into force on the eighth day from the date of publication in Narodne novine.

REGULATION ON AMENDMENTS AND ADDITIONS TO THE REGULATION ON THE CONTENT OF APPLICATIONS FOR ISSUING APPROVAL FOR THE TRANSFER OR ASSUMPTION OF INSURANCE PORTFOLIOS BY INSURANCE OR REINSURANCE COMPANIES („Narodne novine“ No. 91/16)

Article 2.
This Regulation will be published in Narodne novine and enters into force on November 2, 2016.