Changes in the new Insurance Code related to insolvency proceedings

Authors:

Pages: 121-127

Abstract:

Ten years after the entry into force of the first Insurance Code (repealed) the Bulgarian legislator decided that in the light of the dynamics of current European legislation and its compulsory transposing in national legislation, it is legally prudent to adopt a new Insurance Code. It introduces numerous changes in the regime regulating insurance companies’ activities, including liquidation and insolvency proceedings. The new Insurance Code keeps the principle of establishing special grounds, regulating insolvency of insurance companies, and introduces an additional requirement for revoking the license of an insurer without the necessity for proving some of the presumptions for insolvency, effectively reinstating the regime of the old Insurance Code. One of the entirely new concepts is the figure of the administrator. For the first time in history Bulgarian legislation allows the option for appointing an administrator that is a judicial person. Especially considering that such a judicial person administrator may only be the Guarantee Fund – art. 615 (1) of the Insurance Code. There are changes in the regulation of guaranteed insurance claims in cases of insolvency of life insurance companies, which are equalized with the amount of the guaranteed deposits in cases of insolvency of a bank.

Keywords:

Insolvency proceedings, insurance company, administrator, Guarantee Fund, judicial person administrator, amount of guaranteed claims.

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