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State Management Over Insurance Business

Chapter VII

STATE MANAGEMENT OVER INSURANCE BUSINESS

Article 120.- Contents of the State management over insurance business

The contents of the State management over insurance business shall include:

1. Promulgating and guiding the implementation of, legal documents on insurance business; elaborating strategies, planning, plans and policies on development of insurance market in Vietnam;

2. Granting and withdrawing licenses for establishment and operation of insurance enterprises or insurance brokerage enterprises; licenses for setting up in Vietnam the representative offices of foreign insurance enterprises or insurance brokerage enterprises;

3. Promulgating, ratifying, guiding the implementation of, insurance regulations, terms, premium and commission rate index;

4. Applying necessary measures so that the insurance enterprises ensure the financial requirements and fulfill their commitments to the insurance buyers;

5. Organizing briefings and forecasting the situation on the insurance market;

6. Conducting international cooperation in the insurance domain;

7. Approving the overseas operations of insurance enterprises or insurance brokerage enterprises;

8. Managing the operation of the Vietnam-based representative offices of foreign insurance enterprises or insurance brokerage enterprises;

9. Organizing the training and building up of the contingent of managerial and professional insurance personnel;

10. Inspecting and examining the insurance business activities; settling complaints and denunciations about, and handling violations of the legislation on, insurance business.

Article 121.- State management bodies

1. The Government shall exercise the uniform State management of insurance business.

2. The Finance Ministry shall take responsibility to the Government for the implementation of State management over the insurance business.

3. The ministries, ministerial-level agencies and agencies attached to the Government shall, within the scope of their respective tasks and powers, exercise the State management over insurance business according to the provisions of law.

4. The People's Committees at all levels shall, within the scope of their respective tasks and powers, exercise the State management over insurance business in the localities according to the provisions of law.

Article 122.- Inspecting the insurance business activities

1. The inspection of activities of insurance enterprises must be carried out in strict accordance with the functions and competence and in compliance with the law provisions.

The financial inspection shall be carried out for not more than once a year for an enterprise. The maximum inspection duration shall not exceed 30 days; for special cases, the inspection duration may be extended under the decisions of the competent superior bodies, but the extension shall not exceed 30 days.

The irregular inspection may be conducted only when there appear grounds of law offenses by enterprises.

2. When conducting inspections there must be the decisions of competent persons; upon the end of an inspection there must be a record concluding the inspection. The head of the inspection team shall take responsibility for the content of the record and the conclusion on inspection.

3. Those who issue decisions on illegal inspections or take advantage of inspection for self-seeking purposes, harass or trouble the activities of enterprises shall, depending on the seriousness of their violations, be disciplined or examined for penal liability; if causing damage, they must pay compensations to the concerned enterprises according to the provisions of law.