Azerbaijan, Baku, 15 March / Trend corr. U.Ismayilova / The President of Azerbaijan Ilham Aliyev ratified the Bill on 'Insurance Activity', which comes to force on 15 March. The Bill was passed by the Azerbaijani Parliament during the autumn session.
Bill specifies the main directions and principles of insurance system development of participants of the market, insurers and re-insurers.
Under the Bill the insurance companies will be divided on Life and Non-life companies within three years. The daughter insurance Life company will render accumulated insurance services with minimum term for two years.
The new Bill cancels prohibition imposed on participation of foreign capital on 49% rate. From now foreign investors may own 100% capital of insurance companies.
Insurance companies will receive unlimited license to carry out insurance activity. License will be issued for five years term during the first appeal.
All insurance companies must change form of their property for opening of joint stock company.
State Insurance Supervision will license insurance agencies and brokers.
State Insurance Supervision will be financed at the expense of the State Budget, as well as 0.3% premiums of insurance companies.
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