Law on Insurance and Bonding Institutions
In turn, the revised text has been amended by successive laws. In particular and principally, by Law 5/2005, of April 22, 2005, on the supervision of financial conglomerates and amending other financial sector laws; by Law 13/2007, of July 2, 2007, on the supervision of reinsurance; and by Law 5/2009, of June 29, 2009, on the reform of the regime of significant shareholdings in investment services companies, credit institutions and insurance companies.
The Solvency II Directive articulates a conception of the solvency of insurance and reinsurance companies based on three mutually reinforcing pillars. The first pillar consists of uniform rules on capital requirements determined on the basis of the risks assumed by the institutions, in line with developments in risk management and recent developments in other financial sectors. A risk-based approach is thus adopted for the European insurance industry through the introduction of specific rules on economic capital. The second pillar consists of a new supervisory system aimed at encouraging institutions to improve their internal risk management. The third pillar concerns the requirements of information and transparency towards the market on the key aspects of the risks assumed by the institutions and their management.
Types of insurance in ecuador iess
Non-real assets or fictitious assets: These are assets that do not constitute an effective investment, i.e. they do not have a clear realization value and income-producing capacity. The following should be included among these: sundry debtors, except for products receivable; furniture and equipment, other assets and deferred charges.
Insured: A natural or legal person who, through the payment of a premium, receives protection from the insurance company, which entitles him/her, by virtue of the provisions of the insurance policy, to the collection of the indemnities arising.
Effective Capital: The capital requirement to support the technical risks affecting an institution (solvency), investment risks, credit risks and other risks that may affect it.
Coinsurance: Participation of two or more insurers in the coverage of the same risk, by virtue of direct contracts made by each one of them identifying the others, indicating the percentage of participation in the risk that each one has.
Insurance Law Ecuador 2021
Companies or entities whose purpose is to carry out insurance operations, in any of its branches, and bonds, as well as insurance sales agents, insurance account executives, insurance sales agencies, independent insurance adjusters and breakdown inspectors, administrators of brokerage firms or insurance brokers, and natural or legal persons engaged in the insurance brokerage profession are subject to the control, prior authorization, control, supervision, regulation and oversight of the Superintendence of Insurance and Reinsurance.
The authorization referred to in the preceding paragraph shall be recorded and subscribed by the Superintendent of Insurance and Reinsurance in the document to be notarized, registered and/or authorized.
The Superintendency of Insurance and Reinsurance of Panama, hereinafter referred to as the Superintendency, is hereby recognized as an autonomous agency of the State, with legal personality, its own assets and independence in the exercise of its functions, as the authority for the regulation, regulation, supervision, control and oversight of the companies, entities and persons subject to the scope of application of this Law.
Insurance law ecuador summary
The high demand of workers for the industries and the gradual increase of labor risks led to the formation of insurance companies that assumed the personal or patrimonial risks of the workers, who were exposed to diverse dangers due to their activity. The high demand of workers for the industries and the gradual increase of labor risks made the formation of these companies indispensable.
Insurance transforms the risks to which people or organizations are exposed into bearable probabilities, through a special organization. They constitute a basic piece of the current social structure, and are manifested in two large groups: social security and private insurance.
There are cases in which the policyholder, insured and beneficiary are different, as in the case of a company (policyholder), which insures its employees (insured), but benefits its children (beneficiaries) in the event of a claim.