CEIOPS-DOC-09/07 - Annex 2. Knowledge and ability requirements that apply to intermediaries in accordance to Art 4 (1) 1 IMD.

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1 Annex 2 Austria - 2 Categories of IIM (Disclaimer: The descriptions below are 1. Agents ( 43 Insurance Contract law) 2. Brokers ( 26 Broker Act) Concept of tied insurance intermediary as defined in IMD : provided but not existing CEIOPS-DOC-09/07 - Annex 2 Knowledge and ability requirements that apply to intermediaries in accordance to Art 4 (1) 1 IMD. 96/2003; 6.pdf For Brokers: Regulation concerning professional requirements, BGBl II 97/2003: 7.pdf A new regulation is in preparation. 1

2 Belgium Insurance broker: the intermediary who put the policyholders in contact with the insurance companies without being bound to the choice of a particular company. 2. Insurance agent: the intermediary charged by virtue of one or more contracts or powers of attorney to present, to propose and to prepare or to conclude insurance contracts or to help in their management or in their performance, especially in the event of a claim, in the name of and on behalf of one or more insurance companies. 3. Insurance sub-agent: the intermediary who is not an insurance broker or an insurance agent but act on behalf of an insurance broker or an insurance agent. Concept of tied insurance intermediary as defined in IMD : no 1. Theoretical knowledge is furnished by Master diploma or equivalent (at least four years of study), or Bachelor diploma or equivalent, and for with the programme of courses includes at least 275 hours relating to technical knowledge concerning insurance and 75 hours to company management, or Diploma of higher secondary education + certificate of a specialised course in insurance approved by the CBFA or an equivalent course. For sub-agents it is sufficient to follow and succeed a basic course. 2. Practical experience Sub-agents are exempted from the practical experience requirement. Brokers and agents must prove practical experience, depending of their theoretical knowledge, of six months, one year or two years. The practical experience must be acquired in each of the following three activities: tasks relating to production, policy management and settling claims. Cyprus 5 1. Insurance Agents (1) Leaving certificate of a School of Secondary Education or other equivalent certificate + (2) Certificate from professional examinations carried out by the Insurance Institute of Cyprus or an equivalent/superior Certificate approved by the Minister of Finance + 2

3 (3) Training provided by insurance undertaking/s 2. Insurance Advisors (1) Leaving certificate of a School of Secondary Education or other equivalent certificate + (2) Certificate from professional examinations carried out by the Insurance Institute of Cyprus or an equivalent/superior Certificate approved by the Minister of Finance + (3) Training provided by insurance undertaking/s 3. Insurance Sub-agents (1) Leaving certificate of a School of Secondary Education or other equivalent certificate + (2) Certificate from professional examinations carried out by the Insurance Institute of Cyprus or an equivalent/superior Certificate approved by the Minister of Finance + (3) Training provided by insurance undertaking/s 4. Insurance Brokers (1) & (2) above as well as a degree from a recognised University or other title or other equivalent qualification in a related subject 5. Tied-insurance Advisor (1) Leaving certificate of a School of Secondary Education or other equivalent certificate + (2) Certificate from professional examinations carried out by the Insurance Institute of Cyprus or an equivalent/superior Certificate approved by the Minister of Finance + (3) Training provided by insurance undertaking/s yes Czech A natural person or a legal person may 1. a tied insurance intermediary - meet the conditions laid down in the 3

4 Republic 6 carry on insurance mediation activity in the territory of the Czech Republic on the conditions laid down in the Act No. 38/2004 Coll. as 1. a tied insurance intermediary 2. a subordinated insurance intermediary 3. an exclusive insurance agent 4. an insurance agent 5. an insurance broker or 6. an insurance intermediary whose home Member State is not the Czech Republic. A tied insurance intermediary carries on the insurance mediation activity in the name and on the account of one or more insurance undertakings or insurance agents or insurance brokers. Act No. 38/2004 Coll. for the basic qualification level of professional competence 2. a subordinated insurance intermediary - meet the conditions laid down in the Act No. 38/2004 Coll. for the basic qualification level of professional competence 3. an exclusive insurance agent - meet the conditions laid down in the Act No. 38/2004 Coll. for the basic qualification level of professional competence 4. an insurance agent - meet the conditions laid down in the Act No. 38/2004 Coll. for the medium qualification level of professional competence 5. an insurance broker - meet the conditions laid down in the Act No. 38/2004 Coll. for the high qualification level of professional competence Denmark 3 1. Insurance brokers obtain a license as either a life- or a non-life insurance broker or both. Insurance brokers refer to a natural or legal person who pursues insurance mediation on the basis of an agreement concluded with a customer. The insurance broker must be independent of any insurance company. 1. The insurance brokers have to pass a specific theoretical exam provided by a private institution partly supervised by the FSA. Moreover they have to provide documentation proving at least 2 years of experience with an insurance mediation undertaking. 2. The insurance agents and subagents have to possess certain knowledge of the insurance products that they are under a contractual obligation to sell for a certain insurance company. The extend of the 4

5 2. The insurance agents are registered according to the insurance company they have agreements with, but there is no information about which products they sell. Insurance agent corresponds to the concept of "tied insurance intermediary" as defined in the IMD. They act on the basis of an agreement with one or more insurance companies. education of the insurance agent is determined by the insurance company concerned due to the fact that it is the insurance company that is responsible for the behaviour and commitments of the agent connected to the activity of selling the insurance products. The FSA has laid down more detailed rules on the education in a ministerial executive order, no of 14. November 2004, which is available on the website of the FSA (but unfortunately only in Danish) 3. The subagents are registered by the Danish FSA and the registration shows to which insurance company they are linked. They work on the basis of an agreement with an insurance agent under the full responsibility of the insurance agent. We do not use the term tied IIM, but our concept of agents and subagents in many way corresponds to the concept of ties agents in the IMD. Estonia According to Insurance Activities Act, Insurance brokerage means engagement in mediation by a person in the interests of a policyholder or, in the case of reinsurance, in the interests of an 5

6 insurance undertaking with the purpose to offer an insurance contract which corresponds to their insurable interest and demands. 2. The activities of an insurance agent consist of a person s engagement in mediation in the case of which one or several insurance undertakings or reinsurance undertakings are represented on the basis of an authorisation. Representation of several insurance undertakings or reinsurance undertakings is permitted only on the condition that their insurance contracts are not competing. Insurance contracts are not competing if they are entered into regarding different classes or subclasses of insurance. Estonia does not have the term/concept of tied-insurance intermediary in our legislation. But insurance agents in Estonia correspond to the concept of tied insurance intermediaries as defined in the IMD. Finland 2 1. Insurance agent refers to a natural or An agent must have sufficient professional competence with respect to 6

7 France - 4 legal person who pursues insurance mediation for and on the behalf of and under the full responsibility of an insurer. 2. Insurance broker refers to a natural or legal person who pursues insurance mediation on the basis of an assignment agreement concluded with a customer other than an insurer carrying out direct insurance business. We do not have the term tied IIM in our legislation, but our concept of agent corresponds in many respects to the concept of tied agent in the IMD. 1. «courtier d assurance ou de réassurance» 2. «agent général d assurance» 3. «mandataire d assurance» 4. «mandataire d intermédiaire d assurance» (subagents) The concept of tied agents is only used in article L and in relation with some intermediaries belonging to category 3). the nature and extent of the activities. In particular, an agent must be familiar with the insurance products he or she represents, the legislation necessary for pursuing insurance mediation activities, and good insurance practice. He or she must also have command of the practical measures required by said activities. A broker must have the professional competence evidenced by an insurance broker s diploma. In particular, the person holding such a diploma must be familiar with the legislation necessary for pursuing insurance mediation activities and with good brokerage practice. He or she must also have command of the practical measures required in order to handle assignments. 1/ for categories 1) 2) 3) and 4) one the following conditions: - training of a reasonable an sufficient duration, with 150 hours as a minimum, based upon a programme which content is homologated by the Minister for Economy; - previous experience (from 1 to 4 years according to the category) in a function related to distribution, or management of insurance contracts in an insurance firm or an intermediary s company; - diploma mentioned on a list approved by the ministries of Economy and Education The program homologated by the Minister for Economy includes 2 levels: level I for categories 1) and 2), and level II for categories 3 and 4. 7

8 2/ Conditions have been adjusted for categories 3 and 4 when carrying on the activity in addition to the principal activity and when the insurance is complementary to goods or services supplied. In such a case, one the following conditions: - training of a sufficient duration and adapted to the insurance presented or proposed; - previous experience (6 month or one year accordingly) in a function related to distribution or management of insurance contracts in an insurance firm or an intermediary s company - diploma mentioned on a list approved by the ministries of Economy and Education. Germany " Makler" (broker), 34d (1) and (2) Gewerbeordnung 2. "Vertreter" (agent), 34d (1) and (2) Gewerbeordnung 3. "gebundener Vermittler" ( tied insurance intermediary as defined in the IMD), 34d (4) Gewerbeordnung 4. "produktakzessorischer Vermittler" (intermediary whose principal professional activity is other than insurance mediation and the insurance is complementary to the product or service supplied), 34d (3) Gewerbeordnung 1. have to pass a certain test arranged by the IHK or give evidence of equivalent or higher qualification as listed in the VersVermV. 2. have pass a certain test arranged by the IHK or give evidence of equivalent or higher qualification as listed in the VersVermV. 3. are required to have adequate qualification 4. are required to have adequate qualification 8

9 Greece "Versicherungsberater" (insurance advisor, giving advice in insurance matters without receiving any commission from an insurance company), 34e Gewerbeordnung yes (see 2.) According to the Presidential Decree 190/2006,there are three main categories and some subcategories: 1.Insurance intermediary-natural or Legal person (as defined in article 2 par. 5 of the Directive 2.Reinsurance Insurance intermediary-natural or Legal person (as defined in article 2 par. 6 of the Directive 3.Tied Insurance intermediary-natural or Legal person (as defined in article 2 par. 7 of the Directive Insurance Broker: The intermediary whose exclusive task is, on order of the insured, without any commitment as to the choice of the insurance undertaking, against the payment of a commission payable by the insurance undertaking, to 5. pass a certain test arranged by the IHK or give evidence of equivalent or higher qualification as listed in the VersVermV. Presidential Decree 190/ (article 4) introduced requirements for registration varying according to the different categories of intermediaries. In particular: All the categories and subcategories of the intermediaries shall hold professional indemnity insurance covering whole the territory of the Community or some other capable guarantee against liability arising from professional negligence, for at least EUR applying to each claim and in aggregate EUR per year for all claims, unless such insurance or reinsurance guarantee is already provided by an insurance or reinsurance undertaking or other undertaking on whose behalf the intermediary is empowered to act or such undertaking has taken on full responsibility for the intermediary s actions Leaving certification of Secondary Education or other equivalent a) Certificate ( Extract from judicial record) b) Certificate evidencing that the applicant is not under judicial interdict or custody c) Certificate evidencing that the applicant is not in a state of bankruptcy d) Documents certifying that has been employed either for four at least 9

10 bring into contract insureds and insurance undertakings, to proceed to all necessary preparatory activities, for the conclusion of insurance contracts and the insured s administration and performance, particularly on occurrence of the risk Insurance agent: The intermediary, whose exclusive object is to take up by contract in consideration of a commission payable, insurance activities in the name and on behalf of one or more insurance undertakings. The insurance agent introduces, proposes, prepares, countersigns or concludes insurance contracts, himself or through other intermediaries in the name and on behalf of one or more insurance undertakings. He also offers the injured the necessary assistance during the insurance and particularly on occurrence of the risk Insurance consultant: The intermediary who investigates the market presents and proposes solutions for the clients needs with insurance contracts on behalf of insurance undertakings or years as manager of an insurance agent s or insurance broker s office or for three years under the above qualities provided he has a special training of at least one year in insurance matters, or for two years if is a holder of a graduation diploma issued by a greek ori by a recognised as equivalent foreign university, or for two years as a legal representative or as delegate or administrator of a foreign insurance undertaking operating in Greece or as representative of Lloyd s of London Broker or as general manager of an insurance undertaking a) Leaving certification of Secondary Education or other equivalent b) Certificate ( Extract from judicial record) c) Certificate evidencing that the applicant is not under judicial interdict or custody d) Certificate evidencing that the applicant is not in a state of bankruptcy e) Documents certifying that has been employed either for four at least years as manager of an insurance agent s or insurance broker s office or for three years under the above qualities provided he has a special training of at least one year in insurance matters, or for two years if is a holder of a graduation diploma issued by a greek ori by a recognised as equivalent foreign university, or for two years as a legal representative or as delegate or administrator of a foreign insurance undertaking operating in Greece or as representative of Lloyd s of London Broker or as general manager of an insurance undertaking a) Leaving certification of Secondary Education or other equivalent b) Certificate ( Extract from judicial record) c) Certificate evidencing that the applicant is not under judicial interdict or custody d) Certificate evidencing that the applicant is not in a state of bankruptcy 10

11 Hungary insurance agents or insurance brokers, on the basis of an acquisition of business. The insurance consultant is not entitled to sign insurance policies. The relation which ties up the insurance consultant with the insurance undertaking or the insurance agent or the insurance broker is a contract for work. yes There are two main categories and some subcategories: 1. Dependent IIM = agent in general. 1.1.Special category of agent is a principal agent) 2. Independent IIM. This is a comprehensive category, which consist of two subcategories: 2.1. broker 2.2. multiple-insurance agent [The most relevant sections of Insurance Act (Act LX of 2003 on Insurance e) Documents certifying that has been employed either for four at least years as manager of an insurance agent s or insurance broker s office or for three years under the above qualities provided he has a special training of at least one year in insurance matters, or for two years if is a holder of a graduation diploma issued by a greek ori by a recognised as equivalent foreign university, or for two years as a legal representative or as delegate or administrator of a foreign insurance undertaking operating in Greece or as representative of Lloyd s of London Broker or as general manager of an insurance undertaking For the registration of the tied intermediaries in the competent register, the insurance undertaking, in the name and behalf of which the tied intermediary acts, must submit to the competent Chamber documents certify the completeness of the documents provided in the article 3 par. 1 of the Presidential Decree 190/06. All natural persons engaged in insurance mediation shall have no prior criminal record and a college or university degree or professional qualifications as specified in Schedule No. 13 to Insurance Act. Schedule No. 13 of Act LX of The natural persons engaged in dependant insurance intermediary (agency, principal agency) activities must have: a) insurance intermediary professional qualification; or b) dependant insurance intermediary professional qualification; or c) independent insurance intermediary professional qualification; or d) insurance consultant professional qualification. 2. Any dependant insurance intermediary who is engaged solely in the mediation of insurance products for the Legal expenses insurance sector under Point 17 of Part A) of Schedule No. 1 must have: 11

12 Institutions and the Insurance Business), with definitions: Insurance Intermediaries Section 33. (1) Activities for the mediation of insurance and re-insurance (hereinafter referred to as "insurance mediation") shall be construed as regular for-profit activities directed at arranging insurance contracts and re-insurance contracts (hereinafter referred to as "insurance contracts"). These activities cover the preliminaries before the conclusion of insurance contracts, the presentation and offering of insurance products, disclosure of related information or the conclusion of insurance contracts, the organization of sales arrangements for insurance contracts and participation in the administration and performance of insurance contracts. (2) The following shall not be treated as insurance mediation activities: a) the supply of information for other professional reasons, if it is not intended to provide assistance for the client in the administration and performance of the insurance contract, b) participation in the collection of claims, c) damage assessment and appraisal a) insurance intermediary professional qualification; or b) legal expenses insurance intermediary professional qualification; or c) dependant insurance intermediary professional qualification; or d) independent insurance intermediary professional qualification; or e) insurance consultant professional qualification. 3. Any natural person engaged in independent insurance intermediary (brokering or multiple insurance agency) activity must have: a) insurance intermediary professional qualification; or b) dependant insurance intermediary professional qualification; or c) insurance consultant professional qualification. insurance consultant: a professional degree above secondary school and below a college degree. It has a 2 years curriculum and state exam, organized by Ministry of Finance. It has a written and oral part. independent insurance intermediary: it has a 200 hours curriculum and state exam, organized by Ministry of Finance. It has a written and oral part. dependent insurance intermediary: it has a 160 hours curriculum and state exam, organized by Ministry of Finance. It has a written and oral part. 12

13 activities. (3) Dependent and independent insurance intermediaries may engage in insurance mediation activities. (4) A dependent insurance intermediary (hereinafter referred to as "agent") is engaged in the mediation of the insurance products of a single insurance company or the noncompetitive products of several insurance companies. All other insurance intermediaries shall be construed as independent insurance intermediaries with the exceptions laid down in Subsection (5) of this Section and Subsection (1) of Section 35. (5) "Dependent insurance intermediary" shall also mean the insurance intermediary engaged in intermediating products relating to its main activity, as an ancillary activity, provided it does not involve any movement of monies (premium payments received from clients or payments made to clients). (6) Dependent insurance intermediaries are engaged in mediating insurance products as paid employees of insurance companies or in a self-employed capacity. (7) Any person employed by an insurance intermediary - in an employment, agency 13

14 or other work-related legal relation - for mediating insurance products may not enter into any other employment, agency or other legal relation with another insurance company or insurance intermediary for mediating insurance products. Any person employed by an insurance intermediary - in an employment, agency or other workrelated legal relation - for mediating insurance products may not enter into any form of work-related legal relation - which is not treated as employment - with another person for mediating insurance products. (8) An agent or multiple-insurance agent engaged in insurance mediation on behalf of an insurance company shall be entitled to indemnity under Act CXVII of 2000 on the Commercial Representation Contracts of Self-employed Commercial Agents if his work-related legal relation with the insurance company for the mediating of insurance products is fixed in writing. Section 34. Barring the exceptions specified in this Act, only persons registered by the Commission may engage in insurance mediation activities. 14

15 Section 35. (1) Persons engaged solely in insurance mediation activities pertaining to insurance contracts that satisfy all of the conditions specified below may be exempted from the registration requirement: a) the mediated insurance products by the insurance intermediary necessitate knowledge of the terms and conditions applicable to them only; b) the mediated insurance products are not from the life assurance branch; c) the mediated insurance products do not cover liability risks; d) insurance mediation is not the intermediary's main activity; e) the mediated insurance products are related to the main activities of the intermediary; f) the annual premium for the mediated insurance product is 125,000 forints or less, and the full term of the insurance contract is less than five years; g) the period of coverage is 365 days or less; h) the insurance is provided only to complement a product or service supplied by the service provider and it covers the 15

16 following risks: ha) damage to or loss of goods supplied by the service provider, or hb) loss of or damage to luggage occurring during a journey arranged by the service provider and other risks, also if the contract is for life assurance or liability risks, provided that the risk covered is ancillary to the main risk relating to the travel. (2) The rules for registering insurance intermediaries shall not apply where the mediation of the insurance is performed by a) the insurance company itself, b) an employee of the insurance company, or c) a natural person on behalf of an economic operator as a paid employee, provided that such person does not hold a management position with the economic operator and is engaged exclusively in activities auxiliary to insurance mediation, d) a natural person employed by a credit institution specified in Subsection (1) of Section 5 of the CIFE or a universal postal service provider specified in Act CI of 2003 on Postal Services in accordance with the employer s instructions, in the customer area of the employer s premises 16

17 or by way of mobile postal service establishment. e) a natural person who is in a service relationship or other work-related relationship with the Customs and Finance Guard, solely for the sale of a compulsory motor vehicle liability insurance policy, as specified in specific other legislation, to the operator (driver) of a vehicle that is registered in a third country and that does not have liability insurance coverage valid for the territory of the EU. (3) Registration by the Commission is not required for insurance intermediaries registered in other Member States of the European Union to take up and pursue insurance intermediation activities. (4) Natural persons who are authorized to engage in insurance mediation activities but are not listed in the Commission s register of insurance intermediaries are not obliged to satisfy the requirements set out in Subsection (3) of Section 48. (5) Natural persons who are employed by credit institutions or postal service providers that are engaged in insurance mediation activities in accordance with Paragraph d) of Subsection (2) may engage in insurance mediation activities only if they have been properly trained 17

18 with regard to the products they mediate. Compliance with professional requirements shall be enforced by the employer and by the insurance company whose product the natural person mediates. (6) The employers of natural persons engaged in insurance mediation activities in accordance with Paragraph d) of Subsection (2) employed by credit institutions or postal service provides shall maintain a register to contain all natural persons they employ for mediating insurance who satisfies the requirement set out in Subsection (5) with regard to training. Insurance Brokers Section 46. (1) Insurance brokers are engaged in activities preparatory to the conclusion of contracts of insurance. Their activities may include concluding the contract on behalf of the client and participating in enforcing the client's claims. If so authorized by the insurer, the broker is entitled to act on the client's orders to accept payments of insurance premiums and, if agreed upon by the insurance company or instructed by the client, to 18

19 participate in the assessment of risk and in the performance and fulfillment of the contract according to the rights and obligations stipulated therein. (2) Economic operators engaged in insurance brokering may not engage in agency or multiple insurance agency. (3) The activities of insurance brokers preparatory to the conclusion of insurance contracts shall include the analysis of other insurance contracts available on the market to the extent necessary. (4) Prior to conclusion of the insurance contract, the insurance broker shall interview the client so as to ascertain the needs and requirements of the client, as well as the reasons underlying the advice given by the intermediary in connection with the insurance product in question. Multiple-Insurance Agents Section 47. (1) Multiple-insurance agents are engaged in activities preparatory to the conclusion of contracts of insurance. Their activities may include - in addition to concluding the contract - accepting payments of insurance premium if so authorized by the insurance company and participating in the performance of contractual rights and 19

20 obligations and in the administration of the contract. (2) Multiple-insurance agents may not engage in insurance brokering. Principal Agents Section 50. (1) A principal agent is an agent of the insurance company who is fully authorized to perform functions within the insurance company's system of business management, in particular such as contracting, issuing policies and accepting payment of insurance premiums. A principal agent may be engaged in insurance mediation] intermediary as defined in the IMD is missing from the Hungarian Insurance law. The dependent insurance intermediary is very similar to the tiedinsurance intermediary, but there is not forbidden them to collect premiums. However Article Second sentence is practically the same as the Section 33. (5) in the Hungarian Insurance law, so a subcategory of the Hungarian dependent insurance intermediary is the same as than the subcategory of the tied-insurance 20

21 intermediary in the IMD. Iceland Insurance agents: Intermediary acting on behalf of one or more insurance or reinsurance undertakings. 2. Insurance intermediary that gives his advice on the basis of a fair analysis, he is obliged to give that advice on the basis of an analysis of a sufficiently large number of insurance contracts available on the market, to enable him to make a recommendation, in accordance with professional criteria, regarding which insurance contract would be adequate to meet the customer s needs. 3. Insurance intermediary who is under a contractual obligation to conduct insurance mediation business exclusively with one or more insurance undertaking. In that case, he shall, at the customer s request provide the names of those insurance undertakings. Yes Chapter 3 in our Act deals with professional requirements. When an insurance intermediary applies for a licence he has to confirm that he fulfils the requirement of unblemished reputation and has not during the last five years, been declared bankrupt or, in connection with business operations, been convicted of a punishable offence under the Criminal Code or Act on limited-liability companies, private limited-liability companies, accounting, financial statements, bankruptcy or public levies, nor under legislation on insurance activities. The individual also have to show his knowledge and work experience in the insurance field and related fields. The individual also has to pass a test which a special Examination Committee regarding insurance mediation offers. Ireland Insurance intermediary defined as a The Financial Regulator has set out the knowledge and ability 21

22 person who, for remuneration, undertakes or purports to undertake insurance mediation. [When applying for registration, firms are asked if they are insurance intermediaries tied to an insurance undertaking.] Reinsurance intermediary defined as a person who, for remuneration, undertakes or purports to undertake reinsurance mediation. requirements that will apply in Ireland from 1 January 2007 in a document entitled minimum competency requirements. Until then, firms seeking registration must confirm that they have sufficient knowledge and ability to act as an insurance intermediary. The minimum competency requirements document will set out the minimum education required. The minimum competency requirements document is available on the Financial Regulator's website at in the "Publications" section. There is a definition of tied insurance intermediary in the current regulations implementing the IMD in Ireland (i.e. SI no 13 of 2005). That definition reads "Tied Insurance Intermediary means any person (a) who undertakes insurance mediation for and on behalf of one or more insurance undertakings in the case of insurance products that are not in competition; and (b) who acts under the direction of those undertakings" 22

23 Note: The revised regulations will not include any reference to tied insurance intermediaries. Italy - 5 Insurance and reinsurance intermediaries are classified into five categories corresponding to the five sections into which the register is subdivided: 1. insurance agents, in their capacity as intermediaries acting in the name or on behalf of one or more insurance or reinsurance undertakings (Section A); 2. insurance and reinsurance brokers in their capacity as intermediaries acting on behalf of their client without the power to represent insurance or reinsurance undertakings (Section B); 3. direct canvassers who, also as subsidiary activity to the main business, pursue insurance mediation in life business and in accident and sickness insurance on behalf of and under the full responsibility of an insurance undertaking and work Legislative decree n. 209/2005 introduced professional requirements for registration varying according to the different categories of intermediaries. In particular, the registration in sections: 1) A or B is subject to the passing of an ability test, consisting in a written and oral examination on technical, legal and economic subjects specified in ISVAP Regulation n. 5/2006. In particular intermediaries must possess knowledge of the following subjects: insurance law, including the regulations issued by Isvap; insurance technique provisions on supplementary pension plans; provisions relating to the activity of agent and broker; provisions on consumer protection; private law; tax law applying to insurance and supplementary pension plans. For the pursuit of reinsurance mediation the examination is integrated with the following subjects: rules governing reinsurance contracts, types of reinsurance and reinsurance technique; 2) C or E is subject to the attendance, in the twelve months preceding the filing of the application for registration, of training courses of 60 hours, held by specialized teachers with qualified experience in the insurance sector. At the end of these courses candidates must pass a final test to verify the knowledge acquired. The training must include both general knowledge required for the 23

24 without fixed working hours or without obligations as to the result to be achieved exclusively for said undertaking (Section C); 4. banks, financial intermediaries, authorized stock brokerage companies, the company Poste Italiane (Italian Mail) (Section D); 5. any other persons dealing with mediation, such as employees, collaborators, canvassers and the other subjects charged by the intermediaries registered under the Sections A, B and D, for mediation outside the premises where the intermediary conducts business (Section E). carrying out of mediation activity and specific knowledge of the characteristics of the contracts that will be offered; 3) for intermediaries to be registered in section D, the professional requirements established must be met not by the intermediaries themselves (banks, stock brokerage companies, ), which in their capacity as banking and financial operators must already satisfy specific requirements for the pursuit of their main business, but by the natural persons who conduct mediation activity inside the premises of the former (bank and post office tellers, etc ). The requirements are the same as those established for intermediaries registered in sections C or E. Requirements of professional training have been established also for persons who conduct mediation activity inside the premises of the intermediaries registered under sections A and B. In this case too the requirements are the same as those established for intermediaries registered in sections C and E. Finally it has been established that all registered intermediaries as well as any person working inside the premises of said intermediaries are required to follow professional updating courses of at least 30 hours per year. At the end of these courses attendants must pass a final test. Latvia - 3 A concept of "tied insurance intermediary" as defined in the IMD does not fall in any of the above categories of intermediaries. 1. insurance broker a person who pursues insurance and reinsurance mediation on behalf of and in the interests 1. A self-employed person acting as an insurance broker, a responsible person and employee of the legal person of an insurance broker who is directly involved in insurance and reinsurance mediation may be a natural 24

25 of a customer, on the basis of a fair analysis of products, and which has insured its civil liability; 2. insurance agent a person who pursues insurance mediation on behalf of and in the interests of only one insurance company, a branch of an insurer of a non- Member State or insurance company within a group, and a full liability for the professional activity of whom has been undertaken by the insurance company, the branch of the non-member-state insurer or the insurance company within a group, or which has insured its civil liability; 3. tied insurance agent ("tied insurance intermediary" within the meaning of IMD) a person who, without receiving insurance premiums and other payments in accordance with the entered into insurance contract, pursues insurance mediation on behalf of and in the interests of one or more insurance companies or a branch of a non-member- State insurer if the insurance services to be distributed by several insurance companies or the branch of a non- Member-State insurer do not provide for person with a capacity to act, who: 1) has reached the age of twenty-one years, 2) has acquired the appropriate higher education; 3) has acquired the knowledge necessary for the performance of insurance and reinsurance mediation and recognised by a professional association of insurance and reinsurance intermediaries; 4) has acquired work experience of at least three years, recognised by a professional association of insurance and reinsurance intermediaries. 2. A self-employed person acting as an insurance agent, a responsible person and employee of the legal person of an insurance agent who is directly involved in insurance mediation may be a natural person with a capacity to act, who: 1) has reached eighteen years of age; 2) has acquired a secondary education; 3) has acquired the knowledge necessary for the performance of insurance and reinsurance mediation and recognised by a professional association of insurers; 4) has acquired work experience of at least one year, recognised by a professional association of insurers (this requirement is not applicable to an employee of the legal person of an insurance agent directly involved in insurance mediation). 3. A self-employed person acting as an tied insurance agent, a responsible person and employee of a tied insurance agent who is directly involved in insurance mediation may be a natural person with a capacity to act, who: 1) has reached eighteen years of age; 2) has acquired a secondary education; 3) has acquired the knowledge necessary for the activity of a tied insurance agent regarding the insurance service to be distributed. 25

26 the same class of insurance, and a full liability for the professional activity of whom has been undertaken by the insurance company or the branch of a non-member-state insurer in relation to the insurance services that concern them respectively. yes Liechtenstein - 2 The Insurance Mediation Law differs among agents and brokers. 1. Brokers act on behalf of a policyholder; 2. Agents act on behalf of one ore more insurance undertakings. No Insurance intermediaries have to give proof of the professional qualifications in insurance intermediation (Diploma, certificate etc.). Lithuania - 2 The law uses the term insurance intermediary which is defined as a person carrying out an intermediation activity for remuneration. The bill also uses the term reinsurance intermediary which is defined as person carrying out a reinsurance intermediation activity for Under the Law of Insurance at Article 11, there are requirements in respect of good repute, professional qualifications and experience. In terms of the professional qualifications and experience, the ISC s evaluation shall take into account: 1. The person s educational background; 2. The positions held; 3. The length of service; and 26

27 remuneration. The term insurance intermediary comprises different categories of intermediaries, i.e. 1. Dependent insurance intermediary (i.e. a tied agent) any person who carries on the activity of insurance mediation for and on behalf of one or more insurance undertakings and their interests. Any person who carries on the activity of insurance mediation for and on behalf of one or more insurance undertakings and in their interests, in addition to his principal professional activity, is also considered a dependent insurance intermediary if the insurance is complementary to the goods and services supplied within the framework of this professional activity. A dependent insurance intermediary shall be prohibited from concurrently carrying out insurance mediation activities on behalf and in the interests of two or more insurers relating to contracts providing identical or similar insurance coverage. Insurance premium paid to a dependent insurance intermediary shall be considered as paid to the insurance undertaking or a branch of a non-member-country insurance 4. Any other factors which may have influence on the professional qualifications and experience of the person. According to Article 11, the ISC asks for particular forms to be completed by an applicant, giving the above details, in order to the ISC to carry out their evaluation. On 1 February 2005, the insurance supervisor amended Resolution N-10 on brokers qualifying examination procedures. 27

28 undertaking; however, the amounts paid by the insurance undertaking to the dependent insurance intermediary and intended for making payment to the policyholders, insured, beneficiaries or injured party shall be deemed paid to those persons only upon their actual receipt of the said amounts. 2. The insurance broker. A company of insurance brokers shall be an independent intermediary having the right to engage in insurance mediation authorised by an insurer, policyholder, insured, beneficiary or injured party. A company of insurance brokers shall act in the interests of the policyholder, insured, beneficiary or injured party. In a company of insurance brokers, only a broker who is working for this company may fulfill functions related to insurance and reinsurance mediation. No. The dependent insurance intermediary is very similar to the tied-insurance intermediary, but there is not forbidden them to collect premiums. 28

29 Luxembourg Insurance agent: any natural or legal person who carries on the activity of insurance mediation for and on behalf of one or more insurance undertakings in case of insurance products which are not in competition, and who acts under the full responsibility of those insurance undertakings for the products which concern them respectively. 2. Insurance broker: a natural person managing an insurance brokerage company or established in his own right and any legal person, who, without being linked to one or more insurance undertakings act as an intermediary between the policyholders whom they represent and insurance undertakings authorised in Luxembourg or abroad. (reinsurance broker: same definition as above but concerning reinsurance undertakings) 3. Insurance sub-broker: a natural person, who works under the responsibility of an insurance broker and who, without being linked to one or more insurance undertakings, acts as an intermediary between the policyholders, whom the broker represents and Agents: generally the insurance undertakings on behalf of which an agent will hold its license organise courses (approx 150 hours). The applicants will have to pass an exam on life and non-life insurance matters held by the CAA. Sub-brokers: they have to pass the same exam as agents. Brokers: they have to pass an exam on life and non-life insurance matters (more difficult than the one for agents) held by the CAA and they need to prove with documents/diplomas that they have sufficient management skills to lead their own business. 29

30 insurance undertakings authorised in Luxembourg or abroad. The definition of the "agent" coincides mostly with the definition of the tied intermediary from the directive, except that agents may collect premiums or amounts intended for the customer. Malta 4 1.Insurance Brokers: Professional activities of persons who, acting with complete freedom as to their choice of lawful insurers, bring together, with a view to the insurance or reinsurance of risks or commitments, persons seeking insurance or reinsurance and insurers or reinsurers, carry out work preparatory to the conclusion of contracts of insurance or reinsurance and, where appropriate, assist in the administration and performance of such contracts, in particular in the event of a claim In relation to insurance agents, insurance managers and insurance brokers, the qualifications required are a combination of both educational attainment and practical experience. As regards tied insurance intermediaries, these are required to successfully complete a course in tied insurance intermediaries activities organised by a local or foreign institution or by the insurance undertaking which the tied insurance intermediary will be representing. In each case, the course should be recognised by the MFSA for the purpose of such requirement. 2.Insurance Agent: Professional activities of persons who are appointed by an authorised company to be its agent in respect of business of insurance with authority to enter into contracts of 30

31 insurance on behalf of the company under the terms of the appointment. 3.Insurance Manager: Professional activities of persons which consist of accepting an appointment from: (a) an insurer or reinsurer to manage any part of its business, or to exercise managerial functions therein, or to be responsible for maintaining accounts or other records of such insurer or reinsurer and in this context, management includes authority to enter into contracts of insurance on behalf of the insurer or reinsurer under the terms of the appointment; and (b) an insurance broker enrolled under this Act, restricted to contracts of insurance relating to risks situated outside of Malta, to manage any part of its business, or to exercise managerial functions therein, or to be responsible for maintaining accounts or other records for the broker 4. Tied Insurance Intermediary: Activities of persons who carry on insurance intermediaries activities for or on behalf of one or more authorised 31

32 companies in the case of insurance products which are not in competition, acting under the full responsibility of those authorised companies for the products which concern them respectively and who may collect premiums or amounts intended for the policyholder, provided that no insurance commitments towards or on the part of the public are given as part of these activities. yes Netherlands Insurance intermediary intermediary: the party providing mediation services mediation services: all activities carried out in the course of a profession or business focused on concluding as a middleman an insurance between a client and an insurer or on assisting in the administration and performance of such an insurance; 2. Reinsurance intermediary reinsurance intermediary: the party providing reinsurance mediation services; reinsurance mediation services: all (Re)Insurance (sub) intermediary will have to pass an exam. There are two exams: on life and non-life insurance: IIM Life: course (120 hours) and exam IIM non-life: course (120 hours) and exam 32

33 activities carried out in the course of a profession or business focused on concluding as a middleman a contract in which risks from contracts of insurance are ceded or on the assistance of the management and performance of such contracts; 3. Sub-insurance intermediary sub-intermediary: an intermediary providing mediation services for another intermediary All above mentioned categories can apply for a life-licence, a non-life licence or for both. 4. Tied Insurance Intermediary: Yes, see section 2:81 sub 2 Wft: 2. Section 2:80 (1) shall not concern the provision of mediation services by intermediaries that provide mediation services for an offeror, or, where it does not concern mutually competitive financial products, various offerors and that, where it concerns the provision mediation services in insurance, in the name and for the account of the offeror or offerors 33

34 without thereby collecting premiums or amounts meant for the client, if the offerors for which the intermediaries provide mediation services: a. are fully responsible for the intermediaries, in the sense that they ensure that the intermediaries comply with this Act; and b. have reported the intermediaries concerned as an affiliated intermediary to the Netherlands Authority for the Financial Markets. 3. An offeror that is no longer responsible as meant in the second subsection under a for an intermediary shall notify the Netherlands Authority for the Financial Markets and the intermediary concerned of this. Yes, see above Norway Insurance brokering: insurance mediation activities that consist of providing the customer with advice on the basis of an analysis of as large a number of the insurance solutions available on the market as possible, or activities that consist of presenting insurance solutions Insurance and reinsurance brokers shall at all times possess the knowledge and competence necessary in relation to the insurance /reinsurance brokerage firms activities. Insurance agents shall at all times possess the knowledge and competence necessary in relation to the undertaking that is being operated. 34