The bill proposes a five-year statute of limitations during which the guarantee Fund may pay indemnities/claims to protect the legitimate interests and rights of creditors.
The bill also regulates the voluntary liquidation of companies operating on the insurance market, including insurance brokers.
The financial recovery and bankruptcy procedures will not apply to local subsidiaries of insurers based in another EU or European Economic Area member state, which received authorization from the insurance regulator in the respective EU or EEA member state.
The bill defines bankruptcy as the insolvency procedure applied to the insurer/reinsurer to redistribute the latter’s assets to cover debts.