Act No. 295 / 2016 Coll.
Act amending Act No. 38 / 2004 Coll., on Insurance Intermediaries and Separate Insurance Liquidators and on Change of Trade Act (Act on Insurance Intermediaries and Insurance Liquidators), as amended
Valid
Law
Effective from 01.12.2016
Text versions:
01.12.2016
19.09.2016
295
THE LAW
of 24 August 2016
amending Act No. 38 / 2004 Coll., on Insurance Intermediaries and Separate Insurance Liquidators and amending the Commercial Act (Act on Insurance Intermediaries and Insurance Liquidators), as amended
Parliament has decided on this law of the Czech Republic:
Amendment of the Insurance Intermediaries and Insurance Liquidators Act
Act No. 38 / 2004 Coll., on insurance intermediaries and individual liquidators of claims and on the amendment of the Commercial Act (Act on Insurance Intermediaries and Liquidators of Insurance Events), as amended by Act No. 444 / 2005 Coll., Act No. 57 / 2006 Coll., Act No. 296 / 2007 Coll., Act No. 124 / 2008 Coll., Act No. 223 / 2009 Coll., Act No. 227 / 2009 Coll., Act No. 278 / 2009 Coll., Act No. 281 / 2009 Coll., Act No. 420 / 2011 Coll., and Act No. 261 / 2014 Coll., is amended as follows:
1. After Article 21d, the following Sections 21e and 21f are inserted:
Rules on the distribution of remuneration
(1) If insurance covered by the Civil Code which falls within the life insurance sector pursuant to Article 3 (2) (a) of the Insurance Act is cancelled within 5 years of the date of its formation for a reason other than as a result of an insurance event, the insurance intermediary shall be entitled to a maximum proportion of the agreed remuneration for the first 5 years of the insurance period.
(2) For the purposes of this Act, remuneration shall mean commission or remuneration, other payment, including a financial or non-financial advantage, or other incentive offered or provided in relation to the intermediary insurance, for the whole duration of the insurance.
(3) The proportional part referred to in paragraph 1 shall be determined as a proportion of the actual life of the insurance, expressed in months beginning and 60 months. Where an insurance period of less than 5 years has been agreed, the proportional part referred to in paragraph 1 shall be determined as a proportion of the actual life of the insurance, expressed in the beginning months and the agreed insurance period, expressed in months.
(4) Paragraphs 1 to 3 shall not apply if:
(a) a one-off premium is agreed; or
(b) the remuneration of the insurance intermediary shall be agreed on an equal annual basis throughout the life of the insurance.
(5) Where an advance payment has been granted and the insurance referred to in paragraph 1 ceases before the end of the agreed insurance period for a reason other than as a result of an insurance event, the insurance intermediary is obliged to issue part of the advance exceeding the agreed remuneration for the period until the end of the insurance.
Rules on the calculation of the redemption fee
(1) In calculating the purchase fee under Section 2842 of the Civil Code, the insurer may, in the first 5 years from the date on which the insurance is incurred, deduct not more than one sixty of the total cost of the insurer's insurance. If an insurance period of less than 5 years has been agreed, the monthly deductible amount according to the first sentence shall be determined as the proportion of the total cost of the insurer related to the insurance and the agreed insurance period expressed in months. If the right to a repurchase agreement has not been excluded, even if the conditions under Paragraph 2842 (1) of the Civil Code are not met.
(2) The total cost of purchase referred to in paragraph 1 is the costs incurred by the insurer in connection with the creation of insurance or he has undertaken to pay it to a third party, which are linked to:
(a) the creation of insurance, in particular the remuneration provided by the insurer for the conclusion of an insurance contract, for the change of insurance or for the submission of proposals or for the execution of other preparatory work for that purpose and other costs associated with the mediation and offering of insurance;
(b) with the adoption of an application for an insurance contract, including a medical examination;
(c) the valuation of the insurance risk taken over and the initial accounting operations; and
(d) with the creation and supply of insurance products. ';
2. In Paragraph 26, the following paragraph 3 is inserted after paragraph 2:
"(3) The insurance undertaking commits an administrative offence by acting in breach of § 21f as an insurer in the calculation of the redemption fee. '
Paragraph 3 shall become paragraph 4.
3. Paragraph 26 (4) reads as follows:
"(4) An administrative offence referred to in paragraph 1 shall be imposed up to CZK 1 000 000, an administrative offence referred to in paragraph 2 or 3 shall be imposed up to CZK 10 000 000."
Transitional provision
Paragraph 21e and 21f of Act No. 38 / 2004 Coll., as effective from the date of entry into force of this Act, shall apply to insurance contracts concluded from the date of entry into force of this Act.
Efficacy
That law shall take effect on the first day of the third calendar month following its publication.
Hamlet v. r.
Zeman v. r.
Sobotka v. r.
Sign in for notes, favorites and notifications
Regulation Information
| Citation | Act No. 295 / 2016 Coll., amending Act No. 38 / 2004 Coll., on Insurance Intermediaries and Separate Liquidators of Insurance Events and on Change of Trade Act (Act on Insurance Intermediaries and Insurance Events Liquidators), as amended |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 19.09.2016 |
|---|---|
| Effective from | 01.12.2016 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
Comments 0