State Decree Representative Insurance Companies

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AB 2003 no. 12 CENTRAL LEGISLATION REGISTER 30 August 2007 *

==================================================================== Title: STATE DECREE, containing general measures, for the implementation of Article 31 of the Ordinance on the Supervision of the Insurance Business (AB 2000 no. 82) Short title: State Decree on the Representation of the Insurance Business Reference: AB 2003 no. 12 Amendments: None

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Article 1
In this State Decree, the following definitions apply:
representative: the person appointed by an insurer with its seat abroad to represent him in Aruba in the exercise of his powers and in the compliance with the regulations applicable to him under the Ordinance on the Supervision of the Insurance Business (AB 2000 no. 82); insurer: an insurer as referred to in Article 2, first paragraph; Ordinance: the Ordinance on the Supervision of the Insurance Business.

Article 2

1. If an insurer with its seat abroad intends to carry out its activities in Aruba through a representative, it shall appoint a natural person or legal entity that has its residence or seat in Aruba, respectively. To that end, the insurer shall submit to the Bank the deed of appointment of the representative, as well as, if the representative is a natural person, an extract from the basic administration, and if the representative is a legal entity, an authentic copy of the deed of incorporation of the legal entity and an extract of its registration in the commercial register.
2. If the representative is a legal entity, it shall in turn appoint a natural person who has his residence in Aruba, and who exclusively represents him in the exercise of his powers and in the fulfillment of his obligations arising from the Ordinance. In that case, he shall submit the deed of appointment of the natural person to the Bank. Articles 7, items c and d, and 17 of the Ordinance shall apply mutatis mutandis.
3. The address of the insurer in Aruba shall be deemed to be the address of his representative.

Article 3

1. The deed of appointment referred to in Article 2, first paragraph, shall in any case contain the provision that the representative possesses all powers of the insurer with regard to the exercise of the insurance business from establishments in Aruba. The representative shall make use thereof in cases where the Bank requests it.
2. The representative shall comply on behalf of the insurer with the regulations established by or pursuant to the Ordinance. The absence of a representative or his failure to comply shall not relieve the relevant insurer of the obligation to comply with these regulations.
3. An insurer shall maintain the accounting of the business in Aruba at the address of its representative and shall keep the business documents related to that business there.

Article 4

1. The dismissal of a representative shall not take effect until a successor has been appointed and the deeds of dismissal of the representative and the appointment of the successor have been submitted to the Bank, and the Bank has notified the management of the insurer in writing that it has no objection to the appointment of the successor.
2. The representative who has resigned shall retain that status until the insurer has appointed another representative and the Bank has notified the management of the insurer in writing that it has no objection to the appointment of the successor.

Article 5
A representative that is a legal entity shall submit an authentic copy of any amendment to its articles of association to the Bank within fourteen days after its execution.

Article 6
If an insurer has restricted the disposal powers of its representative with regard to the assets belonging to the insurance business carried out in Aruba, it shall notify the Bank of any change therein within fourteen days after the execution of the change. A same obligation to notify rests on the insurer that restricts the disposal powers of its representative after his appointment.

Article 7

1. This State Decree shall enter into force on the day following its publication in the Official Gazette of Aruba.
2. It may be cited as the State Decree on the Representation of the Insurance Business.