CBA RECOGNIZES RENAISSANCE INSURANCE'S LICENCE AS INVALID

Noyan Tapan
Aug 30 2006

YEREVAN, AUGUST 30, NOYAN TAPAN. Taking into account the fact that
Renaissance Insurance company's operating licence was suspended twice
in 2006, the Central Bank of Armenia (CBA) Board on August 29 made
a decision to cancel Renaissance Insurance's licence No. 0045 for
non-life insurance and licence No.0007 for life insurance. According to
the CBA press service, in order to protect the interests of insurees,
Renaissance Insurance must terminate the insurance (reinsurance)
contracts signed by the company or transfer insurance (reinsurance)
risks to another insurer within 45 days after the above mentioned
decision has taken effect. In accordance with Article 17, part 2
of the RA Law on Insurance, the natural and juridical persons that
signed insurance (reinsurance) contracts with Renaissance Insurance,
have the right to teminate these contracts ahead of time, following the
indicated decision, and receive insurance (reinsurance) premiums for
incompleted days. In the event that part of insurance (reinsurance)
premiums cannot be repaid by the company, the insurees may apply to
court with the request to confiscate these sums or recognize the
company as insolvent. In case of accidents, Renaissance Insurance
is obliged, by preliminary consent of the CBA, to pay insurance
compensations envisaged by insurance (reinsurance) contracts, whose
risks have not been transferred to another insurer.