The work of receivers and liquidators – the conditions for registration in the list

1. 5. 2014 | Source: Point of Single Contact (PSC) Czech Republic

In the document, refer to the conditions for registration in the list of receivers and the details of the application for registration.

  • Conditions for granting a licence
  • Application requirements
  • Requirements connected to the provision of services by a provider from a different Member State
  • Further information on the licensing procedure

Back to document “The activity of receivers – obtaining a permit step by step”

Conditions for granting a licence

Registration:

In order for an independent loss adjuster to be registered, he must meet the following requirements:

  • Trustworthiness:

1. For the purposes of Act No. 38/2004 Coll., on insurance intermediaries and independent loss adjusters, a natural person of full legal capacity is considered a trustworthy natural person,

a) who has not been convicted of an offense against property, for an economic crime or other intentional criminal act 1 ) or whose convictions for these crimes have been expunged or for another reason it looks as if he had not been convicted (condition of good character),
b) in respect of whose assets a decision on bankruptcy was not issued,
c) who in the last 5 years prior to the date of filing the application connected, under this law, to the obligation to prove the trustworthiness of the natural person, has not been a member of a statutory body or other body of a legal person whose assets were declared bankrupt, or if an insolvency petition on the assets of this legal person was rejected because the assets of this legal person were insufficient to cover the costs of the insolvency proceedings, or the bankruptcy was cancelled because the assets of this legal person were totally insufficient,
d) whose license to act as an insurance intermediary or independent loss adjuster was not revoked for breach of the conditions laid down by this law.

2. For the purposes of Act No. 38/2004 Coll., on insurance intermediaries and independent loss adjusters, a natural person of full legal capacity is likewise considered a trustworthy natural person who has been affected by the situations mentioned in paragraph 1 letter b) or c) if

a) the insolvency court cancelled the bankruptcy other than by a resolution to cancel the bankruptcy proceedings after the fulfilment of the resolution or because the debtor’s assets were completely inadequate, or the court dismissed the insolvency petition because the assets were insufficient to cover the costs of the insolvency proceedings,
b) it concerns a person who was elected to a position of an already bankrupt legal entity, or
c) it concerns a person who obtains during the proceedings, pursuant to a special legal regulation 2), the judgment that he performed his prior position with the due diligence of a manager.

3. If situations occur resulting in a loss of trustworthiness, the natural person is required to report this matter without undue delay to Czech National Bank and is not permitted to continue in the activity. This does not affect the rights of third parties that were acquired in good faith if the activity was performed prior to the annulment of registration.

  1. § 4 of Title Two second and ninth of Act No. 140/1961 Coll., Criminal Code, as amended.
  2. § 200e of Act No. 99/1963 Coll., Civil Procedure Rules, as amended.
  • Professional qualifications – professional qualifications means the acquisition of the general and professional knowledge necessary to perform one’s activities.

General knowledge is demonstrated by proof of completing secondary school. Professional knowledge is demonstrated by proof of completing specialized study in secondary school or at university or by passing a professional examination for the basic level of INDEPENDENT LOSS ADJUSTER. Professional studies for the purpose of professional qualifications means secondary or university studies, focusing on insurance, financial services and related areas. A professional examination can be taken at an institution that is authorized to provide educational programs for the purpose of obtaining professional qualifications and is listed in a notice of Czech National Bank, in the manner set out in this notice.

  • Liability insurance

Application and its requirements:

Visit the website of Czech National Bank (ČNB), see “Application forms, electronic submission” and “Required annexes to applications”.

Further information on the licence proceedings

Type of licence

  • Registration in the list

Respective authority

  • Czech National Bank

Control and supervisory bodies

  • Czech National Bank

Procedure for granting a licence

  • The applicant submits the application for registration in the register maintained by Czech National Bank. Czech National Bank shall register the applicant in the register within 60 days of receipt of the application (provided that the conditions set down by Act 38/2004 Coll., are met). Czech National Bank shall issue the entity a certificate of registration in the register.

Application clearing deadline

  • The deadline for registration in the register is within 60 days of receipt of the written application if the conditions set down by Act No. 38/2004 Coll., are met.

Fees

  • 10,000 CZK

Validity period of the licence

  • Registration is not time limited (only the cancellation of registration in the register is possible – upon request or if the requirements set down by law are no longer met)

Combined proceedings (recognising qualifications and granting authorisation)

  • No, even if one of the requirements for registration in the register is the submission of proof of professional qualifications

Authorisation granted by expiration of deadline period 

  • These proceedings are subject to the rule that a licence shall be automatically granted upon expiry of the deadline period.

Legal Regulation

  • Act No. 38/2004 Coll., on insurance intermediaries and independent loss adjusters and amending the Trade Licensing Act (Act on insurance intermediaries and independent loss adjusters)

Professional liability insurance

An independent loss adjuster must be insured throughout the performance of his activities against liability for damage caused by this activity with a limit of indemnity of an equivalent value of at least € 500,000 for each insured claim; in the case of overlapping multiple insurance claims in one year, an equivalent value of at least € 1,000,000.

Related legal regulations

  • Act No. 277/2009 Coll., Insurance
  • Civil Code (the insurance policy is treated in the fourth part of the new Civil Code. The Civil Code must be read, however, as a whole)
  • Act No. 90/2012 Coll., on commercial companies and cooperatives (Act on business corporations)
  • Decree 582/2004 Coll., which implements certain provisions of the Act on insurance intermediaries and loss adjusters.

Discussion

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