Insurance Law

Insurance agency

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, under Insurance Law (RS Official Gazette, No 139/2014).

The insurance agency contract shall be kept on the business premises of the contracting parties.

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 – an entrepreneur (from now on: 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 following the law governing banks (from now on: the Bank), a financial leasing provider with its head office in the Republic of Serbia and established under the law governing financial leasing and the public postal operator with its head office in the Republic of Serbia and established following the law governing postal services may, as a supplementary activity, carry on insurance agency business based on 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 the Banks, financial leasing providers and the public postal operators as well as the manner of granting, revoking and terminating the approval.

An insurance agency undertaking, an insurance agent and/or the Banks, financial leasing providers and the public postal operators shall not engage in insurance brokerage activities.

Insurance Agency Limitations

An insurance agency undertaking, an insurance agent and the Banks, financial leasing providers and the public postal operators may carry on insurance agency activities for one insurance undertaking or several insurance undertakings – with their written approvals.

These 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 following the Law governing companies unless specific matters are regulated otherwise by Insurance Law (RS Official Gazette, No 139/2014).

An insurance agency undertaking shall be found 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 EUR 25,000 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 EUR 12,500 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 EUR 25,000 and/or EUR 12,500 above, 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.

Issuing an Insurance Agency License and an Insurance Agent License

Insurance agency undertaking and insurance agent shall be entered in the register with the competent authority upon obtaining license to carry on insurance agency activities, which is issued by the National Bank of Serbia at the request of the founders of the insurance agency undertaking and at the request of the insurance agent.

The National Bank of Serbia shall prescribe more closely the contents of the evidence, documents and data which shall be submitted with application for insurance agency undertaking license as well as with application for insurance agent license.

Manager of an Insurance Agent

An insurance agent may confer the management on a professionally capable natural person under conditions stipulated by the law governing companies and by Insurance Law (RS Official Gazette, No 139/2014).

Authorisation to Carry on Insurance Agency Activities

In an insurance agency undertaking, with an insurance agent and in the Bank, financial leasing provider and the public postal operator insurance agency activities shall only be carried on by persons authorised by the National Bank of Serbia to carry on insurance agency (from now on: certified agents), based on employment or other work engagement outside employment relationship following the law.

In an insurance agency undertaking, with an insurance agent and in the Bank, financial leasing provider and the public postal operator insurance agency activities 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 an authorisation to carry on insurance agency activities to a person who meets the following requirements:

  1. Has relevant professional qualifications and experience;
  2. Has passed the certification exam to obtain the title of the certified agent in the Serbian language;
  3. Has not been issued effective protective measure prohibiting him from pursuing professional activities that renders him unfit for pursuing insurance agency activities;
  4. Has not had his authorisation to carry on insurance agency activities revoked in the prior three years.

The National Bank of Serbia prescribe more closely the required professional qualifications and experience for the persons to which it shall issue authorisation to carry on insurance agency activities, 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 and the manner of further professional education of certified agents.

The National Bank of Serbia may also issue the authorisation 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 under the rules of the profession and good business practices.

The National Bank of Serbia shall revoke the authorisation to carry on insurance agency activities from the person who:

  1. Has obtained the authorisation on the grounds of false and inaccurate information;
  2. No longer meets at least one of the requirements from Article 92 of Insurance Law (RS Official Gazette, No 139/2014);
  3. Commits a serious breach of the rules of the profession and good business practices.

Cash Assets and Payment Instruments

Insurance agency undertakings, insurance agents and the Bank, financial leasing provider and the public postal operator 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 money collected as insurance premium and other payment instruments may not be subject to enforced collection, except for settlement of liabilities of the person referred to in this paragraph towards the insurance undertaking.

The person who shall be authorised to collect insurance premium shall collect the premium in accordance with regulations and acts of 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 the Bank, financial leasing provider and the public postal operator 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 authorisations 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 Insurance Law (RS Official Gazette, No 139/2014) shall apply accordingly to an insurance agency undertaking.
Provisions of Articles 45, 47, 66, 90 and 91 of Insurance Law (RS Official Gazette, No 139/2014) shall apply accordingly to an insurance agent.

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