What is the order of debt payment by the insurer in Vietnam before dissolution?
What does the application for dissolution of an insurer in Vietnam include?
Under the provisions of Clause 3, Article 55 of Decree 46/2023/ND-CP as follows:
Requirements, application, and procedures for dissolution of insurers, reinsurers, ceased operation of foreign branches in Vietnam
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3. When all the debts specified in clause 2 hereof have been fully paid, the insurer or reinsurer shall send an application for dissolution, or the foreign branch in Vietnam shall send an application for ceased operation to the Ministry of Finance. The application for dissolution of insurer, reinsurer, application for ceased operation of foreign branch in Vietnam includes:
a) An application form for dissolution or ceased operation signed by the legal representative, which states the reason for dissolution or ceased operation as specified in Appendix XIX issued herewith;
b) A competent authority's decision as prescribed in the company's charter (for insurer or reinsurer) or Regulation on organization and operation (for foreign branch in Vietnam);
c) A written revocation of The establishment and operation license, as for point c, clause 1, Article 115 of the Law on Insurance Business, or a written termination of control measure, as for point d, clause 1, Article 115 of the Law on Insurance Business;
d) Supporting documents on that fact that the insurer, reinsurer, or foreign branch in Vietnam has paid all the debts, property obligations and has committed not to be in the process of settling disputes in court or arbitration as prescribed in clause 4 hereof;
dd) The The establishment and operation license.
According to the above provisions, the application for dissolution of an insurer in Vietnam includes:
- An application form for dissolution or ceased operation signed by the legal representative, which states the reason for dissolution or ceased operation as specified in Appendix XIX issued with Decree 46/2023/ND-CP
- A competent authority's decision as prescribed in the company's charter (for insurer or reinsurer) or Regulation on organization and operation (for foreign branch in Vietnam);
- A written revocation of The establishment and operation license for cases stipulated in Point c, Clause 1, Article 115 of the Law on Insurance Business 2022 or a written termination of control measure for cases stipulated in Point d, Clause 1, Article 115 of the Law on Insurance Business 2022
- Supporting documents on that fact that the insurer, reinsurer, or foreign branch in Vietnam has paid all the debts, property obligations and has committed not to be in the process of settling disputes in court or arbitration as prescribed in clause, Article 55 of Decree 46/2023/ND-CP
- The establishment and operation license.
What is the order of debt payment by the insurer in Vietnam before dissolution?
What is the latest application form for dissolution of the insurer in 2023?
Under the provisions of Appendix XIX issued together with Decree 46/2023/ND-CP, the latest application form for dissolution of the insurer in 2023 is as follows:
Download the lathe latest application form for dissolution of the insurer in 2023: here
What is the order of debt payment by the insurer in Vietnam before dissolution?
Under the provisions of Clause 2, Article 55 of Decree 46/2023/ND-CP, the order of priority for debt payment by the insurer is as follows:
- Unpaid salaries, severance allowances, social insurance premiums, health insurance premiums, unemployment insurance premiums as per the law, and other benefits of employees under collective bargaining agreements and signed employment contracts;
- Insurance indemnities or claim settlement under which the insurer or reinsurer has accepted payment of cash surrender value, account balance of insurance policy or insurance premium refunds;
- Owes in taxes;
- Other debts.
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