Chapter III
SOLVENCY AND RESTORATION THEREOF
Article 14.- Solvency
1. Insurance enterprises shall have to maintain their solvency throughout the course of insurance business operation.
2. Insurance enterprises shall be considered solvent when they fully make deductions for setting up insurance operation reserves and have a solvency amplitude not lower than the minimum solvency amplitude prescribed in Article 15 of this Decree.
Article 15.- Minimum solvency amplitude
1. The minimum solvency amplitude of a non-life insurance business enterprise shall be equal to 20% of the total premium amount actually retained at the time of determining its solvency amplitude.
2. The minimum solvency amplitude of a life insurance business enterprise:
a/ For life insurance contracts with a term of 10 years or less, it shall be equal to 4% of the insurance operation reserve plus 0.1% of the insurance sum at risk;
b/ For life insurance contracts with a term of over 10 years, it shall be equal to 4% of the insurance operation reserve plus 0.3% of the insurance sum at risk.
Article 16.- The solvency amplitude of insurance enterprises
1. The solvency amplitude of a non-life insurance enterprise shall be calculated on the basis of capital source for determining solvency amplitude divided by the total insurance premium corresponding to the liability proportion actually retained at the time of determining solvency amplitude.
2. The solvency amplitude of a life insurance enterprise shall be calculated on the basis of capital source for determining solvency amplitude divided by the total insurance operation reserve and the insurance sum at risk at the time of determining the solvency amplitude.
3. The capital source of an insurance enterprise for determining the solvency amplitude is its own capital source minus its capital contributions for establishing other insurance enterprises and irrecoverable debts.
Article 17.- Danger of insolvency
Insurance enterprises shall be considered being in danger of insolvency when the amplitude of their solvency is lower than the minimum solvency amplitude.
Article 18.- Plans for solvency restoration
1. When facing the danger of insolvency, an insurance enterprise shall have to immediately report to the Finance Ministry on its real financial status, cause(s) leading to the danger of insolvency as well as plans for solvency restoration, including the following measures:
a/ Plan for supplement of its own capital source;
b/ Plan for reinsurance; narrowing of operation contents and scope;
c/ Plan for consolidation of organizational structure and expected change of its Managing Board�s Chairman and/or its General Director (Director);
d/ Plan for transfer of insurance contract(s);
e/ Other measures.
2. Within 15 days after receiving the enterprise’s report, the Finance Ministry shall decide on the implementation of the solvency restoration plans.
3. Within 90 days after the Finance Ministry decides on the implementation of the solvency restoration plans, if the insurance enterprise still fails to restore its solvency as prescribed, it shall be put into the state of the special control. The Finance Ministry shall decide to set up the solvency control board to apply solvency restoration measures according to the provisions of Article 80 of the Insurance Business Law.
Tìm kiếm
Nghị định 43/2001/NĐ-CP (Bản Word)