RE-LICENSING OF INSURANCE MARKET PARTICIPANTS IS CONNECTED WITH NEW LAW ‘ON INSURANCE COMPANIES AND INSURANCE ACTIVITIES’

arminfo
2008-01-29 18:36:00

ArmInfo. The board of the Central Bank of Armenia (CBA) adopted
decision at its January 29 session to re-license "Prime Insurance
Brokers" LLC. As ArmInfo was told at the press service of the CBA,
at the same session a decision was adopted to grant "Renessa" CJSC
a license for carrying out broker- dealer activity of currency
purchase-sale.

ArmInfo was told at "Prime Insurance Brokers" that the company’s
re-licensing is connected with the new law "On insurance companies
and insurance activities", adopted in April 2007 which came into
force from October 2007. According to the law, all the companies
engaged in insurance activity must be re-licensed within a definite
period. It is fixed in the new law, that the insurance market segments
are mentioned in the license, in which the insurance company or the
broker works. Moreover, one and the same insurance company cannot be
engaged in life insurance and non-life insurance simultaneously.

They also informed at the press service that a decision was adopted at
the session on suspension of the license of "Astvan" LLC for brokerage
activity, as well as on license invalidation of "First Insurance"
company for non-life insurance.

To note, "First Insurance" company, which had functioned on the
territory of Armenia since 1997 (the license was granted on November
3), dissolved at the end of December 2007. Moreover, part of the
company’s premium portfolio (contracts, valid at the moment the
license was granted) is to be passed to "Ingo-Armenia" insurance
company. Before that, portfolios of "Alliants -Flash" and "Fin
Trust" insurance companies, which came out of market, were passed to
"Ingo-Armenia".