Chương 2 Nghị định 18/2005/NĐ-CP: Thành viên

Chapter 2:

MEMBERS

Article 5. Minimum number of members in a reciprocal insurance organization

1. Minimum number of members in a reciprocal insurance organization shall not be less than 10.

2. In case the number of members in a reciprocal insurance organization is less than the minimum number as defined in Clause 1 of this Article, the reciprocal insurance organization must report to the Ministry of Finance immediately on real situations, causes and remedial measures.

In case a reciprocal insurance organization is unable to increase number of members according to the plan approved by the Ministry of Finance, the Ministry of Finance in reliance on specific situations shall decide termination of the operation of the reciprocal insurance organization or convert it into another form of insurance company according to the provisions of law.

Article 6. Founder members of a reciprocal insurance organization

1. Founder members of a reciprocal insurance organization are organizations, individuals that meet the conditions as defined by the law for the formation of a reciprocal insurance organization and are committed to buying insurance from the reciprocal insurance organization right after it is granted the establishment and operation license.

2. Founder members shall not be entitled to any preferential treatment better than other members of a reciprocal insurance organization unless otherwise as regulated by its Statute.

Article 7. Members of a reciprocal insurance organization

Organizations, individuals that qualify for entering an insurance contract according to the provisions of law and already entered an insurance contract with a reciprocal insurance organization shall be referred to as members of a reciprocal insurance organization.

Article 8. Rights of members of a reciprocal insurance organization

Members of a reciprocal insurance organization shall have the following rights:

1. Enjoy benefits under an insurance contract entered with a reciprocal insurance organization by such member.

2. Enjoy outcome of business performance by a reciprocal insurance organization according to the provisions set out in the Statute of a reciprocal insurance organization.

3. Take part or empower others to take part in general membership meeting organized by the reciprocal insurance organization; run, vote for election to the management and other titles in a reciprocal insurance organization according to the provisions set out in the Statute of a reciprocal insurance organization.

4. Other rights

Article 9. Obligations of members of a reciprocal insurance organization

Members of a reciprocal insurance organization shall have the following obligations:

1. Fulfill obligations of an insurance buyer according to the provisions set out in an insurance contract and the Law on Insurance Business.

2. Comply with regulations, rules, and operation regulation of a reciprocal insurance organization and Resolutions ratified in the general membership meeting.

3. Be responsible for payables, losses in a reciprocal insurance organization within insurance premium paid to the reciprocal insurance organization.

4. Founder members of a reciprocal insurance organization must be committed to buying insurance from the reciprocal insurance organization right after it is granted the establishment and operation license.

5. Other obligations

Article 10. Termination of membership status in a reciprocal insurance organization

1. Membership status in a reciprocal insurance organization shall be terminated in one of the following cases:

a) Insurance contract between the member and the reciprocal insurance organization is terminated or transferred according to the provisions of law;

b) Members of a reciprocal insurance organization are deceased individuals; or members of a reciprocal insurance organization are entities that are dissolved, bankrupt, merged or stop operation;

c) Other cases as regulated in the Statute of a reciprocal insurance organization.

2. Unless otherwise as regulated in the Statute of a reciprocal insurance organization, founder members are not allowed to unilaterally terminate membership status for a period of three years since the reciprocal insurance organization is granted the establishment and operation license.

3. Handling of the rights and obligations with respect to the members as defined in the provisions of Clause 1 of this Article shall be done under the Statute of the reciprocal insurance organization and the insurance contract signed with the reciprocal insurance organization.