Insurance agency activities shall be the activities of initiating, proposing or carrying out the tasks of preparation and conclusion of insurance contracts on behalf and for the account of an insurance undertaking.
Insurance agency activities shall be carried on by a legal person or natural person – entrepreneur based on an insurance agency contract, in accordance with the Insurance Law (RS Official Gazette, No 139/2014 and 44/2021).
The insurance agency contract shall be kept on the business premises of the contracting parties.
Carrying on Insurance Agency Activities
Insurance agency, as an exclusive activity, shall be carried on by:
- An insurance agency undertaking with its head office in the Republic of Serbia, registered with a competent authority based on its license to carry on insurance agency activities issued by the National Bank of Serbia
- A natural person – entrepreneur (hereinafter: insurance agent) with its head office in the Republic of Serbia, registered with a competent authority based on its license to carry on insurance agency activities issued by the National Bank of Serbia.
A bank, with its head office in the Republic of Serbia and established in accordance with the law governing banks (hereinafter: bank), a financial leasing provider with its head office in the Republic of Serbia and established in accordance with the law governing financial leasing and the public postal operator with its head office in the Republic of Serbia and established in accordance with the law governing postal services may, as a supplementary activity, carry on insurance agency business on the basis of prior approval of the National Bank of Serbia for carrying on these activities.
The National Bank of Serbia shall prescribe more closely the requirements for carrying on insurance agency business for persons who as a supplementary activity carry on insurance agency business, as well as the manner of granting, revoking and terminating the approval for performing those activities.
An insurance agency undertaking, an insurance agent and/or the person who as a supplementary activity carry on insurance agency business on the basis of prior approval of the National Bank of Serbia for carrying on these activities, shall not engage in insurance brokerage activities.
Insurance Agency Limitations
An insurance agency undertaking, an insurance agent and legal persons which as a supplementary activity carry on insurance agency business, on the basis of prior approval of the National Bank of Serbia for carrying on these activities may carry on insurance agency activities for one insurance undertaking or several insurance undertakings – with their written approvals.
The listed persons shall display in a prominent place on its business premises the business name of the insurance undertaking it represents.
Business Name
Business name of an insurance agency undertaking, and/or insurance agent shall also include an indication of the class of activity – “insurance agency business”.
Establishment of an Insurance Agency Undertaking
An insurance agency undertaking shall be established in accordance with the law governing companies, unless specific matters are regulated otherwise by this Law.
An insurance agency undertaking shall be established in the form of a joint stock or a limited liability undertaking.
If an insurance agency undertaking is established as a joint stock undertaking, the pecuniary part of the core capital shall not be less than the RSD equivalent of 25,000 EUR calculated at the National Bank of Serbia middle exchange rate on the day of payment.
If an insurance agency undertaking is established as a limited liability undertaking, the pecuniary part of the core capital shall not be less than the RSD equivalent of 12,500 EUR calculated at the National Bank of Serbia middle exchange rate on the day of payment.
An insurance agency undertaking shall be required to ensure in the course of its business that its core capital never falls below the euro amount of 25.000 EUR i.e., 12.500 EUR, and to maintain its liquid assets (cash, short-term securities and other short-term investments and receivables) at minimum 50% of its total core capital.
Application for an Insurance Agency License
The application for a license to carry on insurance agency activities shall be submitted by the founders of the insurance agency undertaking.
In the licensing process the founders of an insurance agency undertaking may be represented by persons authorized by them to do so.
Along with the application, the founders of an insurance agency undertaking shall also submit the following:
- Memorandum of Association of the undertaking
- Draft Articles of Association, where such document is envisaged by the law governing companies
- Evidence that they have the pecuniary part of the core capital prescribed by Article 101 of the Insurance Law (RS Official Gazette, No 139/2014 and 44/2021)
- The undertaking’s business plan and the act on processing of policy register forms
- A list of shareholders, and/or owners of equity interest and data about persons acquiring qualifying holding in the undertaking, on the amount of their holding and on the persons closely linked with those persons
- Information and evidence of fulfilment of the requirements from Article 32, paragraph 1, items 1), 3) and 6) of the Insurance Law (RS Official Gazette, No 139/2014 and 44/2021) which are used to establish the reliability of the person acquiring qualifying holding in the undertaking
- Data about the proposed member of management of the undertaking, who must have the authorization to carry on insurance agency activities, with data and evidence that this person has good business reputation and evidence of fulfilment of requirements from Article 62, paragraph 2 of the Insurance Law (RS Official Gazette, No 139/2014 and 44/2021)
- Evidence of required professional and technical capacity of the undertaking
- Agency contract with an insurance undertaking, which must contain the provision about the insurance undertaking’s liability for activities undertaken by the insurance agency undertaking in the course of its agency business and the insurance undertaking’s right to continuously monitor the execution of that contract
- Evidence of relation by participation in capital or in some other way with insurance undertakings, insurance brokerage undertakings or other insurance agency undertakings.
The National Bank of Serbia shall prescribe more closely the manner of evidencing good business reputation of a member of management of an insurance agency undertaking, what is deemed required professional and technical capacity of that undertaking, as well as the contents of the evidence, documents and data which shall be delivered with the application for a license to carry on insurance agency activities.
Application for an Insurance Agent License
An insurance agent shall be entered in the register with the competent authority upon obtaining insurance agent license, which is issued by the National Bank of Serbia at the applicant’s request.
In the licensing process, the applicant for insurance agent license may be represented by persons authorized to do so by the applicant.
Along with the application for insurance agent license, the following shall also be submitted:
- The insurance agent’s Memorandum of Association
- Proof of identity of the applicant (name, identity card number and unique citizen identification number)
- Proof of residence of the applicant
- Evidence that the applicant holds on the bank account the amount of cash in RSD equivalent of EUR 1,500 calculated at the middle exchange rate of the National Bank of Serbia on the date of payment, originating from the applicant’s own funds, and in the course of the insurance agent’s business must maintain the liquid assets (cash assets, short-term securities and other short-term investments and receivables) at the level of at least 75% of that amount
- Evidence that the applicant has good business reputation
- Evidence that the applicant holds license to carry on insurance agency activities
- The insurance agent’s business plan and act on processing of policy register forms
- Agency contract with an insurance undertaking, which must contain a provision about the insurance undertaking’s liability for activities undertaken by the insurance agent in the course of its agency business and the insurance undertaking’s right to continuously monitor the execution of that contract
- Evidence of required professional and technical capacity of the insurance agent
- Evidence of relation on the basis of capital or in some other way with insurance undertakings, insurance brokerage undertakings or insurance agency undertakings.
The National Bank of Serbia shall specify more closely the manner of evidencing good business reputation of the applicant for insurance agent license, what is deemed required professional and technical capacity of the insurance agent, as well as the contents of the evidence and documentation which shall be delivered with the application for a license to carry on insurance agency activities.
Manager of an Insurance Agent
An insurance agent may confer the management on a professionally capable natural person (hereinafter: manager) under conditions stipulated by the law governing companies.
The manager must meet the following requirements prescribed for an insurance agent:
- to have a good business reputation
- to hold license to carry on insurance agency activities.
The manager must be a full-time employee of the insurance agent.
An insurance agent shall submit the evidence of fulfillment of requirements for manager to the National Bank of Serbia prior to conferring the business on the manager.
Authorization to Carry on Insurance Agency Activities
In an insurance agency undertaking, with an insurance agent and in legal persons which as a supplementary activity carry on insurance agency business on the basis of prior approval of the National Bank of Serbia for carrying on these activities, insurance agency activities shall only be carried on by persons authorized by the National Bank of Serbia to carry on insurance agency (hereinafter: certified agents), on the basis of employment or other work engagement outside employment relationship in accordance with law.
Activities of certified agents may not be carried on by persons sentenced to unconditional imprisonment or effectively convicted of a criminal offence that renders them unfit for pursuing those activities.
The National Bank of Serbia shall issue authorization to carry on insurance agency activities to a person who meets the following requirements:
- Has relevant professional qualifications and experience
- Has passed the certification exam to obtain the title of certified agent in the Serbian language
- Has not been issued effective protective measure prohibiting him from pursuing professional activities that renders him unfit for pursuing insurance agency activities
- Has not had his authorization to carry on insurance agency activities revoked in the prior three years.
The National Bank of Serbia shall prescribe more closely the required professional qualifications and experience for certified agents, the curriculum content and the manner of taking the certification exam to obtain the title of certified agent in the Serbian language, the manner of evidencing the fulfilment of requirements from that paragraph and the manner of further professional education of certified agents.
The National Bank of Serbia may also issue the authorization to carry on insurance agency activities, under the conditions and in the manner prescribed by the National Bank of Serbia, to a person who received the title of a certified agent abroad.
A certified agent shall perform insurance agency activities in accordance with the rules of profession and good business practices.
Provisions from Article 93 of the Insurance Law (RS Official Gazette, No 139/2014 and 44/2021) shall apply accordingly to revocation of authorization to carry on insurance agency activities.
Cash Assets and Payment Instruments
Insurance agency undertakings, insurance agents and legal persons which as a supplementary activity carry on insurance agency business, on the basis of prior approval of the National Bank of Serbia for carrying on these activities shall be required to transfer to the account of the insurance undertaking the money and other payment instruments and collateral collected and/or taken over from the insured and/or policyholders on behalf of the insurance undertaking, no later than on the business day following the date of collecting or taking them, and to submit other payment instruments and collateral within the same deadline.
The person authorized to collect insurance premium shall collect the premium in accordance with regulations and acts of the insurance undertaking.
The money collected as insurance premium and other payment instruments may not be subject to enforced collection, except for settlement of liabilities of the person authorized to collect insurance premium towards the insurance undertaking.
Responsibility for Acting as Insurance Agent
An insurance undertaking shall be liable for actions undertaken as part of insurance agency.
Insurance agency undertakings, insurance agents and legal persons which as a supplementary activity carry on insurance agency business, on the basis of prior approval of the National Bank of Serbia for carrying on these activities shall be liable towards the insured for any damage caused by false representation or negligence of these persons, or caused by the fact that these persons failed to disclose to the insured and/or the policyholder that they are acting as insurance agents.
Person with special authorizations within an insurance undertaking who concluded the agreement on insurance agency shall be liable toward the insurance undertaking for any damage arising from such contract.
Application of the Provisions on a Joint Stock Insurance Undertaking and Insurance Brokerage Undertaking
Provisions of Article 28, Articles 30 to 41, Article 45, Article 47, Articles 61 to 64 and Articles 66, 68, 81, 90 and 91 of this Law shall apply accordingly to an insurance agency undertaking.
Provisions of Articles 45, 47, 66, 90 and 91 of the Insurance Law (RS Official Gazette, No 139/2014 and 44/2021) shall apply accordingly to an insurance agent.
Last update: 24. 08. 2023.
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