Insurance broker

modification date 28 September 2018

Insurance intermediation, pursuant to Article 2 of the Act on Insurance Intermediation, consists in remunerated performance by an intermediary (Insurance Agent or Insurance Broker) of actual activities or legal activities connected with conclusion or performance of insurance contracts.

Insurance Broker, pursuant to Article 20 of the Act on insurance intermediation, is a natural person or a legal person holding an authorisation to undertake brokerage activities issued by a supervisory body and registered as Insurance Broker.

According to Article 23 (1), an Insurance Broker may perform brokerage activities solely through the intermediary of natural persons, who are in compliance with the requirements defined in Article 28 (3) point (1) (a-e) of the Act.

Pursuant to Article 4 (2) brokerage activities are performed for or on the behalf of an entity seeking insurance protection and consisting in: concluding or making conclude an insurance contract, preparatory activities before contract conclusion and participation in management and performance of insurance contracts, including the proceedings for the award of damages, as well as organisation and supervision of brokerage activities.

An Insurance Broker, pursuant to Article 24 (1), may not:
- perform agency activities nor enter into agency transactions;
- be bound by a permanent contractual relation with an insurance company (this restriction does not refer to insurance contract on the basis of which an Insurance Broker is insured or provides insurance, nor to any contract concluded by an insurance broker with an insurance company concerning the mutually binding clearance method on brokerage activities);
- be members of supervisory bodies or management of an insurance company;
- hold shares of an insurance company, excluding publicly traded shares (if an Insurance Broker holds such shares, he/she should notify the supervisory body).

An Insurance Broker, pursuant to Article 33 of the Act, should notify the supervisory body of any change in its factual and legal situation, of his/her own and of his/her activity within the scope of Article 28, within 7 days after such change takes place.

Besides, pursuant to Article 46 (1), as regards any change in the data entered into the Register of Insurance Brokers, an Insurance Broker shall immediately, but not later than within 7 days after such changes take place, shall submit to the supervisory body an application to alter the entry together with necessary supporting documents.

Articles 31 and 32 contain provisions concerning brokerage activity within the scope of freedom to provide insurance intermediation services at the territory of the European Union Member States.