Section 228.
(1) The insurance associations concurrently engaged in insurance and other activities before 1 January 1996 may continue to provide insurance services only under a separate accounting system.
(2) The rules on taxation and social insurance contributions regarding membership contributions paid on behalf of members in consideration for the life assurance services specified in Paragraph a) of Subsection (1) of Section 10 of Act XCVI of 1993 on Voluntary Mutual Insurance Funds (hereinafter referred to as 'VMIFA'), including employers' contributions and sponsors' donations, and provided by insurance associations established before the entry into force of VMIFA shall be the same as the rules relating to pension funds following the entry into force of this Act, provided the provisions of Sections 46-49 of VMIFA are duly applied to such services as evidenced by the Commission.
(3) The provisions contained in Subsection (1) of Section 99 shall not apply to the insurance associations referred to in Subsection (2).
Section 229.
(1) At the time the Commission’s registration system is placed into operation, insurance intermediaries and consultants shall apply for registration - via the insurance company or independent insurance intermediary on whose behalf they mediate insurance - within three months from the date the registration system is placed into operation, and they shall provide proof of satisfying the criteria for registration with the exception of the professional qualifications if they are not yet available. Insurance intermediaries and consultants shall, as a prerequisite for registration, provide the Commission with proof of their professional qualifications within forty-eight months from the date the registration system is placed into operation.
(2) If an insurance intermediary fails to obtain the professional qualifications laid down in specific other legislation within the deadline referred to in Subsection (1), the Commission shall remove such intermediary from the register specified in Section 36.
(3) The persons and organizations authorized to engage in multiple insurance agency at the time this Act enters into force shall be required to satisfy the requirements set out in this Act by 31 December 2004.
(4) Insurance intermediaries who have at least five years of professional experience and are aged fifty-five or older at the time this Act enters into force shall, as a prerequisite for registration, provide the Commission with proof of their professional qualifications within seven years from the date the registration system is placed into operation.
Section 229/A.
(1) The persons authorized to engage in multiple insurance agency at the time this Act enters into force shall be required to notify the Commission by 30 September 2004 as to whether they wish to engage in multiple insurance agency in the capacity of independent insurance intermediaries after 1 January 2005.
(2) The Commission shall withdraw the authorization of persons authorized to engage in multiple insurance agency at the time this Act enters into force if they fail to provide proof of compliance with the relevant requirements by 31 December 2004.
(1) Any insurance company that has already been authorized at the time this Act enters into force and whose solvency margin at that time is below the minimum specified in Schedule No. 8 or the amount of the minimum guarantee funds specified in Section 125 must bring them into compliance by 31 December 2006.
(2) Any insurance company that has already been authorized at the time this Act enters into force and whose solvency margin remains below the required minimum by 31 December 2006 may request the Commission to grant a two-year extension for compliance with the solvency margin requirements on the basis of the recapitalization plan submitted by the insurance company.
(3)
(4) In respect of the life insurance contracts concluded before 1 January 1996 or before 31 December 2000 under a product permit granted before 1 January 1996, insurance companies shall refund to the policyholders at least fifty per cent of the investment profits of the mathematical provisions of the life assurance branch, instead of what is described in Subsection (1) of Section 100, provided the insurance companies have not entered into any other commitment. The refunds, however, shall not be less favorable to the insured parties than what is stipulated in the contract. The refund shall also contain revenue consistent with the technical interest base. The distribution of surplus yield according to Subsection (1) of Section 100 of this Act and the refunds made under this Subsection shall be administered and recorded separately.
Section 231.
(1) The insurance companies already authorized to provide life assurance and non-life insurance services at the time this Act enters into force shall be entitled to engage in both branches concurrently if the solvency margin of the joint-stock insurance company complies with the minimum requirement specified in Sections 121 and 122.
(2) The joint-stock insurance companies authorized to provide life assurance and non-life insurance services at the time this Act enters into force shall, above and beyond the provisions laid down in Subsection (1), be entitled to engage in both branches concurrently under separate internal control and financial management systems. Separate systems shall apply to assets, areas of powers and authorizations, separate accounting records for each branch of insurance and separate profit and loss accounts for each branch.
(3) The rules for separation of insurance branches under Subsection (2) shall be decreed by the Minister of Finance.
(4) The person employed in the capacity of senior legal counsel at the time this Act enters into force must satisfy the requirement set out in Paragraph c) of Subsection (1) of Section 87 as of 1 May 2006.
(5) The person employed in the capacity of chief executive officer at the time this Act enters into force must satisfy the requirement set out in Paragraph c) of Subsection (3) of Section 83 as of 1 May 2006.
(6) Subsection (5) notwithstanding, the persons regarded as chief executive officers at the time this Act enters into force must satisfy the requirements set out in Paragraphs c) and d) of Subsection (3) of Section 83 by 31 December 2006, and they shall provide the Commission with proof of the conditions set out under Paragraphs a), b) and e) of Subsection (3) of Section 83 by 30 September 2004.
(7) The first supplementary report specified under Subsections (5)-(8) of Section 151 shall be prepared for 2005 and sent to the Commission within fifteen days following the annual general meeting of 2006 convened to approve the annual report for 2005.
(8) Independent insurance intermediaries shall comply with the obligation set out in Subsection (1) of Section 39 on or before 1 January 2005. The provisions in force on 30 April 2003 shall be authoritative during the period between the entry of this Act into force and 31 December 2004.
(9) By way of derogation from Paragraph a) of Subsection (3) of Section 207, the supervision fee payable by independent insurance intermediaries for 2004 is
a) the commensurate portion of the annual fee of 60,000 forints up to 30 June 2004,
b) the commensurate portion of two thousandths of the annual premium revenue from 1 July 2004.
(10) The person employed in the capacity of head of internal control (internal controller) at the time this Act enters into force must satisfy the requirements set out in Paragraphs a) and b) of Subsection (2) of Section 89 as of 1 May 2006.
(11) The provisions contained in Points 2 and 3 of Part B) of Schedule No. 10 of this Act shall apply to unit-linked life assurance policies effective as of 1 July 2005.
(12) The persons engaged in principal agency activities at the time this Act enters into force shall apply for the Commission’s authorization by 30 September 2004 and shall provide proof of compliance with the requirements set out in Subsection (3) of Section 50 by 31 December 2004. Under justified circumstances, the Commission may grant an exemption from compliance with the requirements set out in Subsection (3) of Section 50.