On 31 October 2016, the Romanian Financial Supervisory Authority (the “FSA”) released an Information Notice listing the “general good” legislation that applies to insurance activity performed by EU insurers on the basis of freedom of services/establishment in Romania. This Notice seeks to inform insurance undertakings of the mandatory Romanian legislation that applies to them, following the abrogation of FSA Order 14/2009 (which previously regulated the mandatory legislation applicable to insurance undertakings providing insurance in Romania based on freedom of establishment or freedom to provide services).

The “general good” provisions applicable to insurance activity in Romania fall under the following two categories:

(a) Insurance-specific legislation, which regulates:

  • General aspects related to insurance activities;
  • The conclusion and content of insurance contracts (including pre-contractual disclosure requirements);
  • Complaints involving insurance policies (where the Information Notice clarifies for the first time – after a long period of inconsistent approach by the FSA – that the FSA considers itself competent to receive complaints based on insurance policies underwritten by EU insurers);
  • The conducting of insurance activities based on the right of establishment and the freedom to provide services;
  • Motor third party liability insurance;
  • Provisions regarding insurance intermediaries;
  • The trading of insurance by electronic means; and
  • Anti-money laundering and combating terrorism financing in insurance activity.

(b) Generally applicable legislation, including legislation governing:

  • Consumer protection (including unfair/abusive clauses);
  • General contract law;
  • General provisions regulating the activity of legal entities;
  • Employment regulations;
  • Trade Registry matters;
  • Taxation;
  • Publicity;
  • Copyright.