Act No. 320 / 1993 Coll.
Act amending and supplementing the Act of the Czech National Council No. 185 / 1991 Coll., on Insurance
Valid
Effective from 01.01.1994
320
THE LAW
of 9 December 1993
amending and supplementing the Act of the Czech National Council No. 185 / 1991 Coll., on Insurance
Parliament has decided on this law:
The Act of the Czech National Council No. 185 / 1991 Coll., on Insurance, is amended as follows:
1. Article 14, including the title and footnotes No 7), 12) and 12c) shall read as follows:
Provisions and funds of insurance undertakings
(1) The insurance undertaking shall establish the following technical provisions in accordance with the defined business subject (hereinafter referred to as "reserves"):
(a) non-life insurance provisions
1. provision for other periods of insurance,
2. provision for insurance claims,
3. premium and discount reserve,
4. provision to offset exceptional risks;
(b) life insurance provisions
1. life insurance provision;
2. provision for insurance claims,
3. provision to cover investment liabilities on behalf of insured persons.
(2) The reserves are used to cover insurance liabilities towards insured persons, unless they are satisfied by reinsurance.
(3) The insurance undertaking may also create additional reserves where the liability to the insured cannot be paid by one of the provisions referred to in paragraph 1.
(4) The insurance company creates a hedge fund. The amount of the damage guarantee fund shall be determined by the insurance undertaking. The Damage Guarantee Fund is used to cover the costs of preventing and minimising damage and promoting the measures taken.
(5) The insurance company may create additional funds from profits after tax.
(6) The records of each reserve and fund are kept separately from other liabilities (liabilities) of the insurance undertaking. The insurance undertaking shall keep a list showing in turn the location and amount of the reserves from which it is required to submit an extract to the supervisory authority by 31 March of the following year. The supervisory authority shall be entitled to recommend, in the event of a risk to solvency, a change in the place or the way in which its reserves are placed.
(7) The creation of reserves is not subject to taxation up to the amount laid down by the special regulation. 12) If the taxation of the formation of reserves results in a specific rate of income tax, the tax deducted by the special rate shall be considered as an advance on the tax of the insurance undertaking, which shall be counted as part of the advance under the special rule. 12c)
(8) At least 30% of the average annual reserve assets referred to in paragraph 1 shall be deposited in a bank or branch of a foreign bank authorised to operate as a bank in the Czech Republic. 7)
(9) The creation, use and location of reserves are laid down in the Decree of the Ministry of Finance.
(10) The obligation of an insurance undertaking to establish funds under specific rules is without prejudice to this provision.
7) Act No. 21 / 1992 Coll., on Banks.
12) § 6 (a) and (b) of ČNR Act No. 593 / 1992 Coll., on provisions for determining the income tax base, as amended by Act No. 157 / 1993 Coll.
12c) § 77 of ČNR Act No. 337 / 1992 Coll., on the Administration of Taxes and Fees. '
2. After Paragraph 15, the following Section 15a is inserted:
Solvency of insurance undertakings
(1) The insurance undertaking is required to report to the supervisory authority solvency by 31 March of the following year at the latest.
(2) The method of reporting the solvency of the insurance undertaking shall be determined by the supervisory authority.
(3) The supervisory authority shall evaluate the solvency margin of the individual insurance undertakings and, where deficiencies are identified, shall impose corrective measures on the insurance undertaking. ';
3. Paragraph 16, including the title and footnotes 12a and 12b, reads as follows:
Accounting
(1) The insurance undertaking is required to keep accounts on the status and movement of assets and liabilities, costs and revenues and on the profit and loss according to a special provision. 12a)
(2) The accounts of the insurance undertaking shall be audited by the auditor in accordance with a specific rule. 12b)
(3) The insurance undertaking shall be obliged to allow everyone to examine the accounts and the annual report.
12a) Act No. 563 / 1991 Coll., on Accounting.
12b) Act ČNR No. 524 / 1992 Coll., on auditors and Chamber of Auditors of the Czech Republic. "
4. the word "annual" shall be deleted from Paragraph 18 (2) (a).
5.
(1) The scope and conditions of the statutory insurance of liability for damage caused by the operation of a motor vehicle, including the premium rates, are laid down in a decree by the supervisory authority, which will also designate the insurance undertaking which will operate it.
(2) The supervisory authority shall have the right, at the request of the obliged entity, to designate an insurance undertaking which is obliged to conclude an insurance contract with it. ';
Throughout the law, the words "special-purpose insurance funds' are replaced by" reserves'.
This Law shall take effect on 1 January 1994.
Uhde v. r.
Havel v. r.
Klaus v. r.
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Regulation Information
| Citation | Act No. 320 / 1993 Coll., amending and supplementing Act No. 185 / 1991 Coll., on Insurance |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 30.12.1993 |
|---|---|
| Effective from | 01.01.1994 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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