ARTICLE 13. Insurance
institutions to which these regulations apply are obliged to maintain statutory
and technical reserves and specifically disclose the application of such
reserves in their accounts. The various types of the statutory and technical
reserves for each of the insurance classes together with the criteria for
calculations and the manner of application of such reserves and the capital of
the institution as well as methods of evaluation of movable and immovable properties
representing financial resources of said institutions should be in accordance
with the guidelines to be approved by the High Council of Insurance.
ARTICLE 14. Insurance
institutions to which these regulations apply are obliged to reinsure with Bimeh
Markazi Iran ten percent (10%)of all their direct insurance businesses. Bimeh
Markazi Iran can accept or reject the said reinsurance.
Note. The commission rate and terms of such
reinsurance shall be in accordance with the guideline to be approved by the
High Council of Insurance.
ARTICLE 15. The
properties of insurance institutions to which these regulations apply and also
reserves referred to in Article 13 are regarded as securities to protect the
rights and interests of the insureds , assureds and their beneficiaries; and in
the event of dissolution or bankruptcy of the institution, priority will be
given to them over other creditors.
Note 1. Among various classes of
insurance, priority is given to life insurance.
Note 2. The institutions referred
to in this article are not allowed to convey the rights of, or mortgage, their
properties and / or place them as a subject of any type of transaction with a
right of refund without prior agreement of Bimeh Markazi Iran;
Note 3. At the time of the
registration of transactions subject of Note 2 of this Article, public notaries
are obliged to ask for the agreement of Bimeh Markazi Iran and to reflect its
contents in the document, on the basis of the latter part of Article 60 of the
Establishment Act of Bimeh Markazi Iran and Insurance Operation.
ARTICLE 16. Insurance
institutions to which these regulations apply, are obliged to publish their
balance sheet and profit and loss account in one of the mass-circulated
newspapers in Tehran and the Zone.
ARTICLE 17.
Insurance institutions to which these regulations apply, are obliged to inform
Bimeh Markazi Iran of any changes in the institution’s major shareholders,
directors and inspectors (auditors) within 2 weeks.
ARTICLE 18. Persons convicted, in Iran or
abroad, for such charges as murder, theft, breach of trust, fraud, drafting
rubber cheque, embezzlement or
complicity in the said crimes and also fraudulent or culpable bankrupts,
cannot be one of the founders or directors of the institutions to which these
regulations apply.
ARTICLE 19. In case of merger, transfer of operations,
dissolution and bankruptcy, insurance institutions to which these regulations
apply are subject to the provisions of these regulations and Articles 51 to 59
of the Establishment Act of Bimeh Markazi Iran and Insurance Operation.