What is an application for issuance of establishment and operation license to foreign branch in Vietnam for insurers?
- What is an application for issuance of establishment and operation license to foreign branch in Vietnam for insurers?
- What are the documents on the non-life insurer or foreign reinsurer in Vietnam?
- What is the certification issued by the competent authority of the home country of the foreign non-life insurer or foreign reinsurer in Vietnam?
What is an application for issuance of establishment and operation license to foreign branch in Vietnam for insurers?
Pursuant to the provisions of Article 14 of Decree 46/2023/ND-CP stipulating that the application for issuance of establishment and operation license to foreign branch in Vietnam includes:
- An application form for a License, as specified in Appendix I to Decree 46/2023/ND-CP.
- The draft Regulation on organization and operation of foreign branch in Vietnam which has been approved by the foreign non-life insurer or foreign reinsurer.
- Operation plan for the first 5 years suitable to the business line for which the License is requested. The plan must clearly state the types of insurance to be provided, target market, distribution channel, and method of setting aside the technical reserves, reinsurance program, capital investment, business efficiency, solvency, internal control, internal audit, risk management, information technology of the foreign branch in Vietnam.
- Copies of 9-digit or 12-digit ID cards or passports; police (clearance) certificates or equivalent of foreigners as prescribed by foreign law; curricula vitae, copies of degrees, certificates and other documents proving the eligibility of the person expected to be appointed as Director, Legal Representative, Appointed Actuary of the foreign branch in Vietnam.
- Documents on the non-life insurer or foreign reinsurer:
- Certification of an authorized bank in Vietnam that the charter capital deposited in a blocked account opened at the bank is not lower than the minimum charter capital specified in Article 36 of Decree 46/2023/ND-CP. The certification must clearly state the capital contribution amount, blocked amount, blockade purpose, blockade duration and conditions for lifting blockade.
- A certification issued by the competent authority of the home country of the foreign non-life insurer, or foreign reinsurer:
- The written commitment of the foreign non-life insurer or foreign reinsurer that they meet the eligibility requirements as prescribed in Clause 2 Article 11 of Decree 46/2023/ND-CP and Clause 1, 2 Article 67 of the Law on Insurance Business 2022.
- A document proving that the capital contributors ensure that the difference between owner's equity and the required capital is greater than or equal to their planned contribution as prescribed in Point a, Clause 2, Article 11 of Decree 46/2023/ND-CP.
What is an application for issuance of establishment and operation license to foreign branch in Vietnam?
What are the documents on the non-life insurer or foreign reinsurer in Vietnam?
Pursuant to the provisions of Clause 5, Article 14 of Decree 46/2023/ND-CP regulating documents on the non-life insurer or foreign reinsurer, including:
- A copy of the establishment decision or business registration certificate or other equivalent documentation;
- A copy of the company's charter;
- A decision issued by the competent authority of the foreign non-life insurer or foreign reinsurer on the establishment of a branch in Vietnam;
- A written authorization, a copy of 9-digit or 12-digit ID card or passport of the authorized representative of the foreign non-life insurer or foreign reinsurer;
- A copy of the audited financial statement for the three consecutive fiscal years preceding the year of application;
- A written commitment of the foreign non-life insurer or foreign reinsurer to be responsible for all obligations incurred by the branch in Vietnam;
- Documents proving that the foreign non-life insurer or foreign reinsurer has contributed capital in accordance with Point b, Clause 1, Article 66 of the Law on Insurance Business 2022.
What is the certification issued by the competent authority of the home country of the foreign non-life insurer or foreign reinsurer in Vietnam?
Pursuant to the provisions of Clause 7, Article 14 of Decree 46/2023/ND-CP regulating a certification issued by the competent authority of the home country of the foreign non-life insurer, or foreign reinsurer that:
- The foreign non-life insurer or foreign reinsurer is permitted to establish a branch in Vietnam and has operated in the line of business they intend to conduct operations in Vietnam;
- The foreign non-life insurer or foreign reinsurer has financial soundness and has fully met the management requirements in their home country;
- The foreign non-life insurer or foreign reinsurer has not seriously violated their home country’s regulations on insurance business for 3 consecutive years preceding the year of application.
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