Common rules to facilitate the actions of insurance firms throughout the EU, be sure that they’ll survive in tough instances, and defend policyholders. Article 34 Insurer have to be notified of the task of the subject matter of insurance and after the consent of the insurer to continue the insurance, the original insurance contract shall be altered in accordance with law, however apart from cargo insurance coverage contracts and those contracts having otherwise specified.
Article 86 An insurance company shall be eradicated in response to law within the event that its insurance coverage license is revoked by the insurance supervision and management authority attributable to its violation of regulation, or administrative guidelines and laws.
Article 114 Where an insurance firm underneath rectification has, subsequent to the rectification, corrected its violations of this Law and has resumed its regular business operations, the rectification shall cease after the report submitted by the rectification job drive is authorized by the insurance supervision and management authority.
A notable example of this is where Zurich Monetary Providers 10 – together with several other insurers – inflated policy costs in an anti-competitive style. Article 29 Reinsurance means the project by an insurer of a part of its accepted enterprise to a different insurer assuming the type of a contractor.
Most, and until 2005 all, frequent law jurisdictions require the insured to have an insurable interest in the subject material of the insurance. The insurer might, with the consent of the insured, take preventive measures to ensure the protection of the subject material of the insurance.