Poland. 1. Insurance intermediation activities

Poland HOGAN LOVELLS (WARSZAWA) Anna Tarasiuk, Wojciech Łuczka, Karol Ruszkowski and Kamila Mróz [email protected]; wojciech.luczka@hogan...
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Poland HOGAN LOVELLS (WARSZAWA) Anna Tarasiuk, Wojciech Łuczka, Karol Ruszkowski and Kamila Mróz [email protected]; [email protected]; [email protected]; [email protected]

1.

Insurance intermediation activities

1.1. Is the distribution of insurance products (hereinafter referred to as ‘insurance intermediation activities’ or ‘insurance intermediation’) limited to insurance intermediaries in your country?

Yes. According to Article 2, section 2 of the Act of 22 May 2003 on insurance mediation (unified text: Journal of Laws of 2014, item 1450, as amended) (hereinafter referred to as the ‘IMA’) the insurance intermediation can be performed as a main activity exclusively by insurance agents or insurance brokers.

1.2. What does the term ‘insurance intermediation’ include? Is there any definition set forth by statutory or case law? In any case, please indicate which activities/services are included in the above definition, for example, presentation or proposal of insurance products, assistance or consultancy aimed at drafting the agreement. Are collaboration activities that relate to the administration or execution of the contracts drafted, even in the case of accidents, included in the definition? Does the drafting of contracts or insurance agreements in a collective form on behalf of insured individuals also form part of insurance intermediation activities? The definition of insurance intermediation is included in Article 2, section 1 of the IMA. Under this article, insurance intermediation consists of the performance, for remuneration, of factual or legal acts involved in the conclusion and performance of insurance contracts. As regards the activities performed within the insurance intermediation, Article 4 of the IMA provides that an insurance intermediary should perform either: a)

b)

acts in the name and on behalf of the insurance undertaking hereinafter referred to as ‘agency acts’ consisting of: the soliciting of clients, carrying out work preparatory to the conclusion of insurance contracts, conclusion of insurance contracts and assisting in the administration and performance of insurance contracts, also in the event of a claim, as well as in the organisation of and supervision over agency acts (agency activities); or acts in the name and on behalf of an entity seeking insurance coverage, hereinafter referred to as ‘brokerage acts’, consisting of: the conclusion of or leading to the conclusion of insurance contracts, performing work preparatory to the conclusion of insurance contracts and participation in the management and execution of insurance contracts also in the event of a claim (brokerage activities).

Also, the IMA indicates some activities of a nature similar to agency activities, which are not recognised by the IMA as agency activities. According to Article 6 section, 1 of the IMA, the conclusion or performance of insurance contracts by a member of the management board of an insurance company, by a proxy of an insurance company or by a person who is an employee of an insurance company, in the name and of behalf of such insurance company, is not considered as insurance mediation nor as performance of agency within the meaning of the IMA. Additionally, the Article 6,

section 2 of the IMA stipulates that the activity consisting of providing individuals interested in general insurance cover information about the possibility of conclusion of insurance contracts and the conditions and consequences of such contracts, in particular, insurance coverage, if the information is provided by the entity engaged in activities other than insurance mediation, related to these activities and not aiming to bring about a conclusion or contract of insurance is not considered as insurance mediation.

1.3. Are insurance intermediation activities allowed as ancillary activities to other professional activities (eg, travel or rent-a-car services, etc) and to what extent? Furthermore, are there exceptions that allow actors, other than insurance intermediaries, to carry out insurance intermediation activities? Is it a matter related, for example, to the risk covered, the duration or the cost of the policy premium, etc? Yes. As indicated in 1.1. above, the IMA provides for some specific regulations on conduct of insurance intermediation activities being ancillary activities to other types of professional activity. According to Article 3, section 2 of the IMA, the provisions of the IMA shall not apply to insurance mediation activities if the following conditions shall be met: a)

b) c)

d)

the contract of insurance, which relates to the conclusion or performance of insurance mediation activities, only requires knowledge of the offered insurance cover and is not a life insurance contract or civil liability insurance contract; insurance mediation activity is not the core activity of an entrepreneur; the contract of insurance, which relates to the conclusion or performance of insurance mediation activities shall be concluded as a supplement to goods and services provided by the entrepreneur and shall cover the following risk: (i) destruction, loss or damage to these goods; or (ii) damage or loss of baggage and other risks associated with travel services offered by the entrepreneur, covered by the life insurance or civil liability insurance; the amount of the annual insurance premium and in the case of a contract for employee group life insurance, the amount of the premium of the insurer shall not exceed an amount equivalent to €500, calculated at the average rate of exchange published by the National Bank of Poland (NBP) as per rate of exchange table no. 1 of the year, and the duration of the contract shall not exceed five years.

2.

Insurance intermediaries’ requirements

2.1.

In order to act as an insurance intermediary, is there need for an authorisation and/or to be enrolled in a register? If yes, what are the requirements to be authorised/enrolled in the register as an insurance intermediary (individual or legal entities, integrity and/or professional requirements, etc)? Briefly explain how it works. Insurance agents As regards insurance agents, there is no obligation to obtain any authorisation in order to conduct such activity. However, before a particular individual or legal entity begins its operations as an insurance agent, it is required to meet certain requirements and must be enrolled into the Insurance Agents Register kept by the Komisja Nadzoru Finansowego (KNF).

According to Article 9, section 1 of the IMA, agency acts may be performed exclusively by a natural person who meets all the following requirements: a) b)

c) d) e)

has full legal capacity; has not been finally sentenced for the wilful commission of an offence against: (i) life and health; (ii) administration of justice; (iii) protection of information; (iv) credibility of documents; (v) property; (vi) economic trading; (vii) trading in money and securities; (viii) treasury. guarantees the due performance of agency acts; has at least secondary-level education; has passed an examination conducted by the insurances company.

The conditions indicated above, should also be met by: a) b)

c)

insurance agents who are natural persons; in the case of insurance agents who are companies without legal personality: (i) shareholders of these companies, if they are natural persons; (ii) if the shareholders of these companies are legal persons, at least half of their board members. in the case of insurance agents who are legal persons, at least half of their board members.

The entry into the Insurance Agents Register is made by KNF, the Polish Financial Supervision Authority, based on the application for entry. The application should be submitted to the KNF by the relevant insurance company along with the required documentation immediately upon conclusion of the agency contract, not later, however, than within a 14-day period. Insurance brokers Contrary to agency activity, a natural person or legal entity requires a relevant authorisation issued by the KNF to conduct brokerage activity. It is also required that a particular insurance broker is entered into the Insurance Broker Register. Authorisation is issued upon an application of: A natural person: a) b)

c) d) e)

possessing full legal capacity; who has not been finally sentenced for the wilful commission of an offence: (i) against life and health; (ii) against the administration of justice; (iii) against the protection of information; (iv) against the credibility of documents; (v) against property; (vi) against economic trading; (vii) against trading in money and securities; (ix) for a fiscal offence. who guarantees the due performance of brokerage activities; has at least secondary-level education; has passed an examination before the Examination Committee for Insurance and Reinsurance Brokers or was granted an exemption from the examination;

f)

g)

has at least two-years professional experience in the field of insurance gained in the period of five years directly preceding the date of application for the permit to pursue brokerage activities; has concluded a contract for civil liability insurance for the pursuance of brokerage activities; OR

A legal person: (a) whose management board members meet the requirements referred to above in letters a0 – d0, and at least half of the members additionally fulfil the conditions laid down inletters e) and f) indicated in the paragraphs below; (b) who meets the requirement specified in letter q) above. The IMA provides for certain exemptions from the obligation to pass the abovementioned examination, given that specific conditions are fulfilled. Exemption concerns mostly persons with sufficient work experience or with specific education. The entry of the insurance broker into the Insurance Broker Register is made by the KNF ex officio on the date when the permit to pursue brokerage activity is issued.

2.2.

In what form can anyone access and verify the registration/authorisation or verify the fact that the insurance intermediary is a professional (eg, via the web)? The KNF maintains the insurance agents and insurance brokers registers, which may be accessed and which enable interested parties to check whether a certain person or entity is an insurance agent or a broker, at the following websites: Agents: https://au.knf.gov.pl/Au_online/ Brokers: https://snu.knf.gov.pl/SNU_ONLINE/

2.3.

Are insurance intermediaries with a registered office in another country allowed to operate in your country and how (eg, under the right of establishment or freedom to provide services in your country, as in the EU)? If yes under which conditions? In such a case, are they bound by the same obligations as the insurance intermediaries with a registered office in your country? Please describe. Insurance agents Foreign insurance agents and insurance brokers having their seat or a place of residence in another Member State of the European Union may pursue agency activities in the territory of the Republic of Poland provided they are entered in the appropriate register in that state. A foreign insurance agent from another EU Member State, may commence agency activities in the territory of the Republic of Poland, not earlier than 30 days upon receipt by the Polish supervisory body of the information from the competent foreign supervisory body of the intention to undertake insurance intermediation activities in the territory of the Republic of Poland. As regards foreign insurance brokers from EU Member States, it may commence brokerage activities in the territory of the Republic of Poland upon receipt by the Polish supervisory body of information from the competent foreign supervisory body on the entry of the broker into an appropriate register.

Polish regulations do not specify whether the intermediation activity should be conducted under the freedom to provide services or freedom of establishment. For this reason, we assume that such activity may be based either on freedom of establishment (eg, through a branch) or freedom to provide services (eg, provision of cross-border services directly from the home Member State) within the EU, subject to the circumstances and business assumptions of the planned activity. The planned activity should be verified from the perspective of general rules regarding EU crossborder activity (eg, specified in the relevant treaties and European Court of Justice verdicts) in order to determine the possible options concerning providing cross-border activity. The IMA does not provide for any regulations concerning foreign insurance agents or brokers from countries other than EU Member States. For this reason, it should be assumed that such entities may, in principle, operate in Poland through the set up of their subsidiaries acting as domestic insurance agents or brokers.

3. 3.1.

Different types of insurance intermediaries Please list the different types of insurance intermediaries acting in your country such as agents, brokers, banks, financial intermediaries or financial advisers. Generally, according to the IMA there are only two types of insurance intermediaries: agents and brokers. Insurance agents can be also divided into two categories: tied agents and multi-agents. Please note that the IMA also directly indicates a specialised sub-class of insurance broker which is the ‘reinsurance broker’. According to the IMA, the reinsurance broker is an insurance broker licensed to conduct brokerage within reinsurance.

3.2. Do insurance intermediaries need to enter into a written contract with the insurers (or receive a mandate from the insurers)? It seems that the question at hand refers mostly to insurance agents, as insurance brokers may not remain in any permanent contractual relationship with insurance companies. In general, the agency agreement between the insurer and an insurance agent can be concluded in any form. The Civil Code requires a written form for agency contracts only if the parties intend to introduce specific regulations indicated directly in the Civil Code (such as the liability of the agent for the performance of the customer’s obligations). However, in practice, most of the agency agreements are concluded in a written form for evidence purposes. Regardless of the form in which the agency contract is concluded, there is a requirement of a written power of attorney to be granted to the agent. According to the Article 12 of the IMA, the insurance company grants, in a written form under the sanction of nullity, a power of attorney to perform agency acts on behalf of that insurance company to the insurance agent empowered to enter into insurance contracts on its behalf.

3.3. Can an insurance intermediary enter into a contract with the insurers (or receive a mandate from the insurer) and in turn enter into one or more agreements with other insurance intermediaries (the so-called horizontal distribution)? The general answer to this question is ‘no’. In Poland, insurance agents may act either individually (in the case of agents being natural persons) or through the socalled natural persons conducting agency acts, who act on behalf of their insurance

agent. The latter are also entered into the Insurance Agents Register within the entry concerning the insurance agent on whose behalf the particular natural persons acts, but are not regarded as insurance agents. Accordingly, it is not possible for insurance agents to appoint other insurance agents (also known as the sub-agency model) to perform agency activities on their behalf within the sub-agency structure. Generally, Polish statute law does not directly prohibit insurance brokers acting for its clients from contacting the insurance agent and receiving commission from the agent (or the insurance company on behalf of which agent acts) if it concludes an insurance contract with the broker’s client. However, note that in any case the insurance broker is obliged to act in accordance with the interests of its client. Thus, although not prohibited, if obtaining commission by the broker from agent could be detrimental to the interests of the client, or could invoke conflict of interests, it could be questioned by the supervisory authority.

3.4. The insurance intermediaries more in detail: 3.4.1. The agent 3.4.1.1. Does the role of insurance agent exist in your country? If yes, describe the agent’s functions.

According to Article 7 of the IMA, an insurance agent is an entrepreneur performing agency activities under an agency contract concluded with an insurance undertaking and entered in the register of insurance agents. The main role of the insurance agent is to conduct agency activities described in 1.2 above for and on behalf of relevant insurance company.

3.4.1.2. In particular, does an agent act on behalf of the insurer or the insured? Who pays the agent’s remuneration? To what kind of remuneration is the agent entitled?

Insurance agents act on behalf of the insurer. It is also the insurer who pays the insurance agent’s remuneration. In most cases, the insurance agent is entitled to receive remuneration in a form of commission. It is also legally possible for the parties to agree the remuneration for the agent in the form other than commission as the provisions of Polish law do not stipulate any limitations as to the potential form of remuneration for the agent. As an example, it is legally admissible for the insurance company to pay the remuneration of the agent in the form of a lump sum fee.

3.4.1.3. If an agent acts on behalf of the insurer, describe the type of work relationship with the insurer (eg, subordinate, para-subordinate or freelance, self-employed etc). Does the ‘principal-agent model’ exist, that is, is one appointed by the insurer to manage a particular branch or subsidiary? There is no single model of cooperation between the agent and the insurer and it depends on whether the agent is a natural or a legal person. In practice, the agent is independent in its operation, subject to its obligations stemming from the concluded agency agreement. Also, the insurance agent is obliged to comply with the guidelines of the insurer if those are justified within certain circumstances.

The IMA also stipulates that the supervision of the activities of the insurance agent is exercised by the insurance company on behalf of which the insurance agent is acting.

3.4.1.4. What type of organisation does the agent have? Can he have staff working for him (eg, sub-agents)? Please refer to 1.3 above.

3.4.1.5. Is the relationship between the insurer and the agent regulated by a collective bargaining agreement? If yes, what does it mainly cover? Can the relationship be exclusive to a particular area? Is the remuneration established by the collective bargaining agreement? Can the provisions be waived by the parties’ mutual agreement? The collective bargaining agreements do not apply to the activity of insurance agents that tend to operate as entrepreneurs.

3.4.1.6. Does the termination of the work relationship between the agent and insurer provide for the agent’s obligation to return the portfolio of contracts? In such a case, would the agent be entitled to an indemnity? According to the Civil Code, an agent may demand the commission for the contract concluded after the contract of agency had been dissolved, if the principal or the agent received the proposal from a client to conclude a contract before the contract of agency was dissolved. However, the Civil Code provides that in order to demand the said commission, additional requirements must be fulfilled. ‘This concerns a situation where the conclusion of the insurance contract was effected as a result of the agent’s activities or if they were concluded with the clients previously obtained by the agent for contracts of the same type, or when the agent was granted the exclusive right with respect to a designated group of clients or a geographical area and, within the duration of the contract, and a contract with a client from that group or area was concluded.‘ The above rule may be, however, modified by the parties in the insurance contract to some extent. As regards the other forms of compensation for the insurance agent, the Civil Code stipulates that after the termination of the agency agreement, the agent may demand a compensating performance from the principal if the agent, within the duration of the contract of agency, obtained new clients or created a significant increase in turnover with the existing clients and the principal continues to derive considerable benefit from the contracts with those clients. The agent has the right to that claim if, taking into consideration all the circumstances, in particular where the agent loses the commissions for the contracts concluded with those clients by the principal, good reasons support such a claim. The compensating performance cannot exceed the amount of the agent’s remuneration for one year as calculated on the basis of an average annual remuneration obtained within the last five years. If the duration of the contract of agency is less than five years, the average amount for the whole duration of the contract should be taken into consideration when calculating the remuneration. Obtaining a compensating performance does not preclude the agent’s right to seek indemnity on general terms. In the case of the agent’s death, the compensating performance may be claimed by his heirs.

The right to claim a compensating performance is dependent on filing an appropriate demand to the principal by the agent or his heirs, within one year from the date of the dissolution of the contract. The parties cannot agree the terms and conditions which are different from the provisions of the Civil Code on compensating performance until the contract is dissolved.

3.4.2. The broker 3.4.2.1.

Please describe the broker’s services. In general terms, do the services consist of intermediation or are they similar to consultancy/advisory activities? Is the broker an independent actor? Generally, the insurance broker is an entity which acts in the name and on behalf of an entity seeking insurance coverage. The services which are regarded as brokerage activities have been described in 1.2 above. The insurance broker is generally entitled to perform services consisting of insurance intermediation performed for clients as well as consultancy and advisory activities. Also, the insurance broker usually acts as an independent actor.

3.4.2.2.

Who pays for the broker’s remuneration (please specify case by case for the different services, if any)? Is the broker allowed to retrocede a portion of his remuneration to the insurer or to the insured? The provisions of Polish law generally do not provide for specific regulations on insurance broker remuneration. This aspect of brokerage activity was structured by market practice. According to current market practice, insurance brokers are usually remunerated by insurance companies in the form of a brokerage fee, which is usually stipulated in a form of commission. The brokerage fee settlement, which is usually concluded between the insurance broker and the insurer, may also include provisions on other fees paid to the broker by the insurer. Also, it is generally admissible that the remuneration of the insurance broker is paid by its client – the person seeking insurance coverage.

3.4.3. Banks, financial intermediaries, financial advisors and others allowed to act as insurance intermediaries

3.4.3.1. Can banks, financial intermediaries and/or financial advisers act as insurance intermediaries? Yes. Insurance intermediaries in Poland may also perform activities other than insurance intermediation. However, where a bank or financial intermediary intends to conduct insurance intermediation, it is regarded as any other entity and must fulfil specific requirements stipulated in the IMA, such as registration.

3.4.3.2. Please define a financial intermediary. Are there particular requisites for the profession of financial intermediary? Does the financial intermediary have to be enrolled in another register (eg, a register of financial intermediaries)? It is our understanding that this question relates to entities that offer financial products as intermediaries and does not refer to other professionals acting within financial market, such as stockbrokers or investment advisers. Given the above assumption is correct, please note that Polish statute law does not provide specific regulations concerning financial intermediaries. However, if a

financial intermediary intends to offer, among other things, insurance products, he/she/it is regarded as a regular insurance intermediary and must fulfil all conditions and requirements stipulated for such activities.

3.4.3.3. Please define a financial adviser. Are there particular requisites for the profession of financial adviser? Does the financial adviser have to be enrolled in another register (eg, a register of financial advisers)? Polish statute law does not provide for specific regulations concerning financial advisers.

3.4.3.4. Can financial intermediaries and/or financial advisers distribute any insurance and/or financial products? If yes, under what conditions or with what limitations? Refer to 3.4.3.1. above.

3.4.3.5. With reference to insurance intermediaries other than agents, brokers, banks, financial intermediaries and financial advisers, as indicated under question 2.1 above (if any), please describe what kind of products they can distribute and under what conditions. Besides those listed above under 2.1, there are no other insurance intermediaries allowed to distribute insurance products.

4. 4.1.

Rules of conduct and responsibilities Are there rules of conduct that insurance intermediaries should comply with (eg, duties in relation to the obligation of utmost care, correctness, utmost good faith, information, adequacy, transparency, conflict of interests, filing of documentation, separate accounting or other accounting obligations)? Please describe the above duties, specifying if they apply to all the different insurance intermediaries (eg, agents, brokers, banks, financial intermediaries, financial advisers, etc) and whether the content differs – with particular reference to responsibility – according to the type of actor/activity and person (insurer or insured) receiving the activity. According to the IMA, agency activities should be performed with professional due diligence and in compliance with the good practice. As regards insurance brokers, the IMA stipulates that the insurance broker should pursue its brokerage activities respecting the interests of the parties to the insurance contract. Also, the insurance broker is obliged to maintain confidential all information obtained in relation with the performance of brokerage acts; the broker is bound by that obligation even after the termination of a contractual relationship with the customer. We are also aware that at least some organisations representing insurance intermediaries issued non-binding codes of ethics and standards of professional conduct. Those, however, should be deemed as of a soft-law character, which is not binding on its addressees and it is up to insurance intermediaries whether to comply with such codes and standards.

4.2. Does the insurance intermediary represent the insurer? By way of example, is the agent also the insurer’s representative vis-à-vis the customer, and if so, does this also apply during trial before a court? Is there a matter of imputation of knowledge? What happens when a broker has information on matters relevant to the insurer’s decision to insure which the broker fails to disclose to

the insurer? Is the insured deemed to have breached its duty of disclosure in such circumstances? In which cases? Can the insurance intermediary be accountable for the contracts he executed on behalf of the insurer? Insurance brokers act for and on behalf of the entity seeking insurance protection. Insurance agents act for and on behalf of the insurer. Accordingly, agents also represent the insurer vis-à-vis the customer within the scope of the authorisation granted by the insurer. In specific circumstances, it is also possible that the insurance agent represents the insurer in trials before the court. In this respect, a special provision is included in Article 16a of the act dated 22 May 2003 on insurance activity (unified text: Journal of Laws of 2013, item 950, as amended), stating that notices and statements in connection with the concluded insurance contract made to the insurance agent are deemed to have been submitted to the insurance company for or on behalf of the insurance company for whom the agent works. The insurance company cannot exclude or limit this authorisation. As to the imputation of knowledge with respect to the duty of disclosure, please note that according to Article 815 of the Polish Civil Code: The policyholder shall be obliged to provide the insurer with information on any circumstances known to him which the insurer asked for in the offer form or prior to the contract’s conclusion in other letters. If the policyholder concludes the contract by a representative, such a duty shall burden the representative as well and it shall, moreover, comprise the circumstances known to him. (…) In the case of concluding the insurance contract on account of the third party, the duties set out in the preceding paragraphs shall rest both on the policyholder and the insured party, unless the insured party has not known of the conclusion of the contract on his account. As to the question whether the insurance intermediary can be accountable for the contracts he executed on behalf of the insurer, please note the liability rules as described in 4.3. However, with the additional reservation stemming from Article 760(3) of the Polish Civil Code: Where the agent who concludes the contract on behalf of the principal does not have the empowerment to do so or where he exceeds its scope, the contract shall be deemed to have been confirmed if the principal, immediately upon receiving information on the contract’s conclusion, does not declare to the client that he refuses to confirm the contract. This provision will apply where the alleged proxy was granted a power of attorney, but it is invalid, and also when the alleged proxy exceeds the scope of the authorisation granted. To consider a contract concluded by the agent to be invalid (no authorisation or exceeding the scope of the authorisation), active behaviour on the part of the principal (the insurer) is necessary, consisting in the fact that it declares to the customer immediately after receiving information of the conclusion of the contract, that it does not confirm its conclusion. If the principal does not behave in this way, it would mean that the contract will be valid (tacit acknowledgment).

4.3. Is the insurer jointly liable for damages caused by the insurance intermediary, appointed by the same, when executing intermediary activities? Who is liable vis-à-vis the insured person? Is it always the intermediary or the insurer?

As regards the possible liability for the damages caused to the client by the insurance agent, it is generally the insurer who is liable for the damages caused by the agency acts of the insurance agent, who acts on behalf of such insurer. The above rule applies solely to ‘tied agents’ and does not cover the ‘multiagents’. The multiagent is an insurance agent that performs agency acts on behalf of more than one insurance company in the field of the same branch of insurance, in accordance with the annex to the Insurance Activity Act. Such insurance agents are liable for damage caused in connection with the performance of insurance activities. Also, multiagents are obliged to obtain compulsory third-party liability insurance which would cover the liability of the said insurance agents for the damages caused by its agency activities. The insurance broker is liable for its own actions as it does not act for or on behalf of the insurer. Similarly to the multiagent, the insurance broker is also obliged to obtain compulsory third-party liability insurance which would cover the liability of the insurance broker for the damages caused to its clients.

4.4. Are there particular regulations or specific forms of compensation for damages caused to the insured person? No. There are no particular regulations in this respect or specific forms of compensation for damages caused to the insured person.

5. 5.1.

Supervision and sanctions Regardless of the requirement of an authorisation and/or enrolment, are insurance intermediaries subject to the control of supervisory bodies? Does the supervisory body have powers/duties of prudential supervision on the insurance intermediary’s activities, and if so, in what way does it act? Insurance agents As regards the regulatory issues, insurance agents are not directly supervised by the KNF – the supervisory powers towards such agents are exercised by insurers. However, the KNF may at any time carry out the inspection of the activities of an insurance company in respect of the use of insurance agents’ services. In the event that irregularities are discovered, the KNF may undertake further regulatory steps (eg, recommendations, sanctions, etc), however, those are directly addressed to the relevant insurance company (not the insurance agent). Insurance brokers Contrary to insurance agents, the activity of the insurer brokers is supervised directly by the KNF.

5.2. Are there fines for violations of the insurance intermediaries’ obligations? If yes, please describe. Generally, the provisions of Polish law do not provide for specific sanctions, including fines that could be imposed on insurance agents or brokers for violation of their obligations. Please note that provisions of Polish law stipulate potential criminal liability in cases of violation of statutory regulations on insurance intermediation. According to Article 47 of the IMA, a person who:

a) pursues agency activities without authorisation; b) performs acts of an insurance agent without authorisation; c) pursues brokerage activities in the field of insurance or reinsurance without the required permit; or d) performs brokerage acts, without authorisation shall be liable to a fine, penalty of limitation or deprivation of liberty for the period of up to two years. A person who commits the act referred to in letters a) and c) above, acting on behalf of a legal person.

5.3. Do sanctions also apply to foreign intermediaries who operate in your country? As indicated above, there are no specific sanctions that could be imposed on insurance intermediaries. However, the potential criminal sanctions indicated in1.2 above may be applied also to foreign insurance intermediaries.

5.4. Is there a consultation procedure with the insurance intermediary before the fine is applied? Not applicable.

5.5. Could the application of more fines, or the breach of particular regulations, result in the revocation of the authorisation, or in the intermediary being struck off the register (if any), or in the prohibition to act as an insurance intermediary? If yes, what are the most relevant circumstances? Not applicable.

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