KLASSIKA ASIGURARI LICENSE SUSPENDED FOR 6 MONTHS

The National Commission for Financial Market (NCFM) suspended for half a year the license to the insurance company Klassika Asigurari.

The decision was taken after the company shareholders ignored the measures, prescribed by the NCFM. On July 29, the regulator applied temporary procedure of financial recovery in the Klassika Asigurari after thematic check of normative acts on the quality of Klassika Asigurari assets, adopted for covering the insurers’ fund, the level of solvency adequacy and the liquidity rate as of March 31, 2019.

Back then, the NCFM appointed Daniela Guzun as special administrator in Klassika Asigurari, empowered as full-fledged manager, administrator and controller.

Over the period of special administration procedure, the capital market regulator identified several suspicious and dubious transactions, which concern the withdrawing of firm’s financial means by former company heads. The NCFM states that all the materials, connected with control, were transmitted to law enforcement bodies in accordance with the law.

Shareholders of insurance company violated the Law on insurance, when they failed to inform NCFM on the fact that new owners appeared in the company, and ordered the shareholder to alienate the package of shares during three months.

The NCFM says that the decision was adopted for ensuring optimal conditions for preserving the cost of assets, as well as for protecting interests and rights of the insured persons.

The regulator insistently calls on insurance market participants to fulfill liabilities and says that it will keep applying measures, which concern the regulation and supervision over insurance companies for consumer protection.

“The NCFM is also monitoring other companies, which due to under-capitalization do not fully meet the criteria of solvency and reserves. To lower the risks and forecast the insolvency, the NCFM will resort to applying additional financial instruments in some companies: financial recovery or special administration”, the NCFM informs.