On Revocation of Insurance Licence
The decision is taken due to the failure to eliminate violations of insurance legislation within the prescribed timeframe, which served as a ground for the suspension of the insurance licence (Bank of Russia Order No. OD-2225, dated 20 August 2015, ‘On Suspending Insurance Licence of Insurance Company Praktika, Limited Liability Company’), namely: noncompliance with the requirements to financial sustainability and solvency with respect to insurance reserves, procedure and conditions of investing own funds and insurance reserves. The decision becomes effective from the day it is published in the Bank of Russia Bulletin.
Due to the revocation of the licence, Insurance Company Praktika, limited liability company, is obliged:
- to take a decision on the termination of insurance activity in accordance with the Russian legislation;
- to meet its liabilities arising from insurance (reinsurance) contracts, including the payment of insurance benefits under insured events;
- to transfer liabilities under insurance (reinsurance) contracts, and/or cancel these contracts.
Insurance Company Praktika, limited liability company, shall inform insured persons on the revocation of its licence, early termination of insurance (reinsurance) contracts and/or transfer of liabilities under insurance contracts to another insurer within a month after the decision on the revocation of the licence becomes effective.