The bankruptcy procedure will also apply to companies which offer exclusively re-insurance services, alongside insurance-reinsurance firms, according to a bill approved yesterday by the Government, modifying Law 503/2004 concerning financial recovery and bankruptcy in the case of insurance companies, Mediafax reports. The bill also sets a special prescription term of five years (as opposed to the general term of three years) within which the Guarantee Fund will be able to pay allowances/compensations, in order to safeguard the insurance creditors’ legitimate interests and rights. Other additions to the legislation currently in force include the regulation of the (voluntary) dissolution procedure for companies in the insurance sector, including insurance brokers, called for by situations recently coming up in practice, the explanatory memorandum reads.
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