CSA temporarily forbids UNITA's activity
The Insurance Supervisory Commission's (CSA's) Council decided to forbid UNITA VIENNA Insurance Group insurance and/or reinsurance activities for the moment. This decision was taken as the new shareholders - UNIQA International Beteiligungs-Verwaltungs si UNIQA International Versicherungs Holding - did not request and obtain CSA's approval, according to the present law, the supervision authority has announced.
At the same time, it has been developed that on the 3rd of November 2008, the shareholders named new members at UNITA's Supervision Council and revoked the existent ones, and on the 17th of November, the new Council, unapproved by CSA, named new members at the company's Management Board and revoked the old ones.
"UNITA's modified status and/or constitutive document without CSA's previous notification or approval - regarding the new shareholders' structure, the new Supervision Council and Management Board members - represent a violation of the 32/2000 Law, with its further modifications and additions and also a breach of the Insurance Authorizing Standards, which are brought into force by 6/2007 CSA's Order", it is determined in CSA's handout.
According to the Insurance Authority's decision, the company, as well as its branches, agencies and work-points are temporarily forbidden to operate insurance and/or reinsurance activities, underwriting new risks and caching premiums for those risks, until CSA approves the new shareholders' structure, the new Supervision Council and Management Board members.
Also, the company has the imperative to notify all the insurance intermediaries whom it collaborates with regarding this decision in three days time.
CSA also mentioned that the sanction applied to UNITA has no implications over the already made contracts, being especially stipulated that the company will fulfill all its contractual obligations to the insured people, beneficiaries or injured.
The Austrian group UNIQA's taking over UNITA from VIENNA Insurance Group transaction, announced in June 2008, was finalized at the beginning of November, after they obtained the approval from the insurance supervision authorities and the relevant competition authorities, according to a company's press communicate.
UPDATE: UNITA's representatives: We have not been informed about CSA's decision
"UNITA and its shareholders do not comment about CSA's media handout content, because until now we have not been informed in any way, by any means, about the decision it refers to", an insurer's press statement shows.
"In order to clarify this unpleasant situation, we will contact the authority", UNITA's representatives have stated.
Author: Andreea IONETE
on 26.11.2008
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