On Dec. 16, CZC PRL issued act amending insurance distribution law.
CZC PRL published the text of Act 396/2024 Coll., amending Act 170/2018 coll., on the distribution of insurance and reinsurance, as amended, relation to insurance mediation.
Act Overview
The Act relates to the distribution of insurance or reinsurance by an insurer or an insurance broker, setting out the requirements for the provision of relevant policies.
It also sets out the requirements and liabilities for a misdemeanor, in relation to the provision of insurance products, setting out issues with insurers or third party brokers that might lead to a misdemeanor applying, as well as the remedies and penalties.
These include issues that are created by employees and relations between insurers and all intermediaries in terms of market conduct, as well as compliance requirements.
It also covers the Authorization to conduct professional examinations and organize education, as well as a Certificate of completion of education for insurance brokerage by the policy provider, to confirm the completion of all the relevant required training.
It covers Obligations when brokering insurance by the policyholder, Offences of an insurance intermediary, and the relevant Transitional Provisions that will apply in law.
Effectiveness
This Act shall enter into force on the first day of the seventh calendar month following the date of promulgation, which will mean it will be an effective date of Jul. 1, 2025.
