As from 10 December 2007 the Law amending and supplementing the Law on Insurance came into force.
The amendments and supplements has been adopted in order to implement the Directive 2005/68/EC of the European Parliament and of the Council on Reinsurance and to harmonize the provisions of the law with the obligations of Lithuania in the World Trade Organization in the area of insurance of maritime and aviation services.
The activities of re-insurance companies are regulated more detailed by establishing the rules on commencement and performance of re-insurance activity and criteria for reinsurance companies which they have to meet before engaging in re-insurance activities (they must have minimal guarantee fund, be controlled by persons of irreproachable reputation, get a licence, etc.)
From now on in order to ensure reliable management of re-insurance company, the Insurance Commission will be able to evaluate eligibility of shareholders before granting a licence. The Insurance Supervisory Commission will also be able to refuse to issue a licence, if there is a close link between the re-insurance company and other natural or legal persons.
The functioning re-insurance companies must rearrange their activity until 10 December 2008.
For further information please contact Rimtis Puišys at email@example.com