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CHAPTER IV
Insurance Companies and State Control
SECTION I
Insurance Companies |
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| Article :
43 |
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Every insurance
company must be registered in the commercial
register and be under the
supervision and control by the Ministry of
Economy and Finance. |
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| Article :
44 |
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An Insurance
company can not delegate power of management
, leading and liquidation
role to any person who is condemned with crime
of theft , confidence abuse , intentionally
issue check without provisions, effecting
the state credit, fraudulent act, hiding things
obtained from illegal acts .
All condemnations for temptations or the complicity
in committing the above mentioned crimes or
all sentences to imprisonment of at least
one year, despite of whatever crime, shall
be the ground of incapacity. |
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| Article :
45 |
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All insurance
companies, whether state-owned, private,
or joint-venture shall be allowed
to operate in the kingdom of Cambodia only
in the form of public liability company
(Anonymous company). |
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| Article :
46 |
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Insurance companies
can carry out following insurance classes:
a- Life insurance company which is required
to have registered capital in riel currency
at
least equivalent to 5,000,000,00 (Five Million)
SDR based on exchange rate on the date of
license granting
b- The general insurance company which
is registered to have registered capital
in riels
currency at least equivalent 5,000,000,00
(Five Million) SDR based on the exchange
rate on the date of license granting.
c- Life insurance and general insurance
Company which is required to have registered
capital in riel currency at least equivalent
to 10,000,000.00 (Ten Million) SDR based
on the exchange rate on the date of license
granting |
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| Article :
47 |
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The insurance
Company as mentioned below will not be allowed
to carry out insurance
business in the kingdom of Cambodia if :
a- Not being authorized by the competent
authority.
b- Not being registered for any classes
of insurance as provided in the article
46 of this law. |
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| Article :
48 |
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Before starting
the insurance business, the licensed insurance
Company shall fulfill the
following formalities as required by the
Ministry of Economy and Finance:
-Provide document or letter being certified
that the deposited of 10 percent of the
registered capital has been put at the National
Treasury of the Kingdom of Cambodia. This
be posit shall be maintained until the Company
cease the business operation in the kingdom
of Cambodia.
-Provide document or letter being certified
that the solvency margin has been maintained
at a recognized bank in the Kingdom of Cambodia.
This solvency margin shall be defined as
per type of each insurance Company, but
the minimum limit of solvency shall not
be lower than 50 percent of the registered
capital. |
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SECTION II
The State Control |
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| Article :
49 |
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The state
control shall be conducted for an advantage
of the insured , the applicant and
the beneficiary and for capitalization as
well.
As for the state owned and joint-venture
company holding at least 51%(fifty one percent)
being the state share, shall have to comply
with the law of the general statute of the
public enterprise.
The private insurance company shall have
comply with the license granted by the
Ministry of Economy and Finance. |
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CHAPTER V
Insurance Agents and Insurance Brokers
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| Article :
50 |
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An insurance
agent is a physical or legal person which
receives insurance commissions
from insurance company and manage to handle
the insurance business on behalf of the
insurance company under the clearly specified
mandate.
An insurance broker is a legal person which
carries out insurance business for the benefit
to the insured , providing the intermediary
services between the insured and the insurance
company to conclude an insurance contract
and legally collect brokerage commission. |
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| Article :
51 |
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The formalities,
terms and conditions for the activities
of the insurance agent and broker
shall be defined by the sub-decree. |
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CHAPTER VI
Legal Penalty |
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| Article :
52 |
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Those who
act against the article 36, article 40 or
Article 42 of this Law shall be fined
from Riel150,000.00 (One hundred fifty thousand
Riel) to Riel 1,500,000 (One million and
five hundred thousand Riel) and imposed
to buy insurance as well.
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| Article :
53 |
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Any country
act to the article 44 or Article 48 of this
Law shall be fined from Riel
10,000,000(Ten million riel) to Riel 50,000,000
(fifty million riel) and the license must
be revoked. |
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| Article :
54 |
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Those who
act against article 47 of this Law shall
be fined from Riel 50,000,000 (Fifty million
riels)In case that these persons still continue
committing this illegal act, they will be
sentenced to imprisonment from 01 year (one
year) to 05 years (five years) |
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CHAPTER VII
Transitional Provision |
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| Article :
55 |
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Any Persons
that carries out business as specified in
article 40 of this law shall be
required to have insurance from an insurance
company, the deadline of which is 30 june,
2001after this law comes into force.
Any Persons that carries out business as
specified in Article 36 and Article 42 of
this Law
shall be required to have insurance from
an insurance company and the deadline of
which is 31 December 2001 after this Law
com into force.
Legal penalty shall be applied as specified
in article 52 of this law if the two deadlines
as
mentioned above are expired. |
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CHAPTER VIII
Final Provision |
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| Article :
56 |
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Any regulation
contradicts this Law shall be deemed null
and void. |
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This
Law was passed by the National
assembly of the Kingdom of Cambodia
on 20 June, 2000 at the 4th
session, 2nd legislation.
Chairman of the National Assembly
(Signed and stamped)
Norodom Ranarith |
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