ROMANIA: ASF has withdraw the operating authorisation of CERTASIG

24 February 2020 — Andrei Victor
The Board of the Financial Supervisory Authority (ASF) has decided, during the meeting on 19.02.2020, to withdraw the operating authorisation of the company CERTASIG Societate de Asigurare si Reasigurare S.A (CERTASIG), due to the fact that the company did not restored the level of eligible own funds covering the minimum capital requirement (MCR) within the term provided by law, wrote Romanian insurance portal

At the same time, the ASF Board has ascertained the insolvency status of CERTASIG and has decided to initiate the legal proceedings to promote the application for opening the winding-up procedures against the insurer.

ASF noted that the insurer has the obligation to notify the insureds, regarding their possibility to cancel the insurance contracts concluded with CERTASIG, as well as regarding their right to recover the insurance premiums, paid under the contracts, according to the period between the time of termination and the expiration of the term of validity of the contracts. The contracts that are not terminated remain in effect until the expiration date.

Any person who invokes a claim against the insurance company, after the occurrence of the risks covered by a valid insurance policy, between the date of withdrawal of the operating authorisation and the cancellation of the insurance contracts, can request the insurance company to open the claim file.

Within 30 days from the date of the final stay of the Court`s decision regarding the opening of the winding-up procedure against the insurance company, CERTASIG has the obligation to provide complete records of the claims files, of the technical - operative and accounting records related to these files to the Insurance Guarantee Fund, in order to publish the list of potential insurance creditors.

According to the legislation in force, the Insurance Guarantee Fund is responsible for the protection of the insurance creditors against the consequences of the insolvency of an insurance company, within the limit of 450,000 lei per insured.
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