NETHERLANDS
1. Legislation Overview
1.1 Supervision and Control
– Who is the regulator?
– Which other bodies oversee the industry?
1.2 Legislation
– What are the key pieces of legislation governing the industry?
2. Compulsory Insurance
– Is motor third-party liability insurance compulsory?
– Is aviation liability insurance compulsory?
– Is marine liability insurance compulsory?
– Is professional indemnity insurance compulsory?
– Is social security insurance compulsory?
– Is employers’ liability insurance compulsory?
– Is private healthcare insurance compulsory?
– Is business interruption insurance compulsory?
– Is engineering insurance compulsory?
– Is group life insurance compulsory?
– Is individual life insurance compulsory?
– Is liability insurance compulsory?
– Is personal accident insurance compulsory?
– Is property insurance compulsory?
– Is transit insurance compulsory?
– Is clinical trials liability insurance compulsory?
– Is operational energy insurance compulsory?
– Is oil rig energy insurance compulsory?
3. Non-Admitted Insurance Regulations
– Is non-admitted primary insurance permitted?
– Is non-admitted reinsurance permitted?
– What exceptions exist for insurance and reinsurance?
– Can insurance buyers place business with a non-admitted insurer?
– Can intermediaries place business on a non-admitted basis?
– Is a local broker required to be involved when placing a policy in your jurisdiction on a cross-border basis?
– Is fronting permitted in your jurisdiction?
– Are global policies permitted in your jurisdiction?
– Is the use of DIC/DIL for the issue of global policies permitted in your jurisdiction?
– What are the fines for unauthorized non-admitted business?
– What is the term of imprisonment for unauthorized non-admitted business?
4. Company Registration and Operation
4.1 License
– Is a license required?
– What are different forms of corporate organization in which an insurance company can establish and operate?
– What are the different types of licenses issued by the regulatory authority to carry out insurance activities?
– What are the requirements and procedures to establish an insurance entity?
4.2 Foreign Direct Investment / Ownership
– What is the limit on foreign direct investment?
– Are independent operations permitted?
– Do the EEA’s Freedom of Services rights apply to this country?
4.3 Minimum Capital Requirements
– What are the minimum capital requirements?
4.4 Solvency Margins
– What is the current solvency standard?
– What are the applicable solvency margin requirements?
– What happens in the case of insolvency?
4.5 Reserve Requirements
– What are the reserve requirements?
– What is the time period (in months) for which the premium reserves to be withheld?
– What are the statutory investment compliance regulations?
4.6 Statutory Return Requirements
– What are the statutory return requirements?
4.7 Fee Structure
– What other levies are imposed on company registration and/or operation?
– What is the licensing fee?
5. Taxation
5.1 Tax on Insurance Premium
– What rates of direct and indirect taxation are imposed on admitted insurance products?
– What taxes and charges do insurers have to pay?
– What taxes and charges do policyholders have to pay?
– What rates of direct and indirect taxation are imposed on non-admitted insurance products?
5.2 Corporate Income Tax
– What is the corporate income tax rate?
5.3 Corporate Capital Gains Tax
– What is the corporate capital gains tax rate?
5.4 Value Added Tax
– What is the value-added tax rate?
6. Legal System
– What are the applicable penalties on individuals and entities contravening provisions of insurance legislation?
– How is the country’s court system structured?
– What alternative dispute resolution mechanisms exist?
7. Policy Practice
– In what language must policies be written?
– In what currency must policies be issued?
– In what currency must premiums be billed?
– Is the issuance of multiple Invoices permitted?
– Is policy wording regulated?
– Is manuscript policy wording permitted?
– Is policies with multiple named insured permitted in the market?
– What are the standard terms and conditions requirements for insurance policies?
– Is policy filing a regulatory requirement?
– Is endorsem*nt filing a regulatory requirement?
– Is central premium collection permissible in the jurisdiction?
– What are the rules governing premium payment terms?
– Is Cash Before Cover mandatory?
– Is policy backdating permitted?
– What is the applicable client penalties for late premium payments?
– What is the applicable penalty on the insurer for late premium payments by the insured?
– Are KYC documents required?
– Is Tax Identity Number (for individuals) or the VAT number (for companies) a mandatory requirement on the insurance policy?
– Is credit report of the insured a legal requirement for concluding an insurance policy?
– Is collecting an anti-money laundering form a legal requirement?
– Is local insured’s ownership certificate a mandatory requirement in the market?
– Does tacit renewal apply?
– What is the notice period for an insurer to cancel a policy?
– What are the rules governing claims payment terms?
– Which perils do policies cover?
– What cover limits apply?
– What are the sublimits of liability?
– Does the law permit the use of aggregate tie-of limits endorsem*nt in the market?
– What are the policy deductible limits?
– Is rating tariff regulated?
– What is the statutory rating tariff?
– Who regulates intermediary commission rates?
– What are the rates of intermediary remuneration?
– Is local broker commission permitted?
– What are the applicable local broker commission rates?
– Is commission to unlicensed broker permitted?
– Is producing office broker commission permitted?
– Are there any compulsory pools?
– Are there any non-compulsory state-run pools?
– Are there any non-compulsory market-run pools?
– Are there compulsory reinsurance cessions?
– What is the compulsory cession rate?
– What is the compulsory local retention rate?
– What percent of exportable premium to be retained locally?
– What is the rate of fire brigade charges?
– Do policies include terrorism provisions?
– Are there any provisions for inflation adjustments in property insurance policies?
– Is there a penalty if the sum insured is less than the full value in property insurance policies?
– What is the basis of claims for business interruption insurance (loss of profit/loss of earnings)?
– At what rate is a claims inflation escalator provided for business interruption insurance?
– Is contingent business interruption cover available?
– Is machinery breakdown written separately or covered in engineering policies?
– Does breakdown cover in an engineering policy extend to physical damage to machinery?
– Is computer breakdown written separately or covered in engineering policies?
– Is business interruption coverage following breakdown available in engineering policies?
– Is construction property coverage included in engineering policies?
– Is uninsured driver facility coverage included in motor insurance policies?
– What is the rate of no-claims discount offered for motor insurance policies?
– Is clinical trials liability insurance sold as a stand-alone policy or as part of a general liability/medical malpractice cover?
– What are the standard policy inclusions and exclusions under clinical trials liability insurance policy?
– Is medical malpractice a standard extension under clinical trials liability policy?
– Is an insurance certificate a mandatory requirement to conduct clinical trials?
– Who is legally permitted to issue certificates of insurance for clinical trials liability policy?
– Is clinical trials liability coverage offered on a no-fault basis?
– Is multi-year clinical trials liability insurance policy permitted?
– What is the standard/extended reporting period for clinical trials liability claims?
– Is there any (re)insurance pool to cover clinical trials liability risks?
– Can a foreign entity be listed as a named insured on a local clinical trials liability insurance policy?
– What are the standard policy inclusions and exclusions under operational energy insurance?
