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28 November 2017
Article 117 of the Insurance Code provides that premiums paid to intermediaries and monies used to settle claims or due by insurers must be kept in separate accounts, the holder of which can be an intermediary that acts expressly in such a capacity. These monies are independent to those of the intermediary. No seizure or distraint of the separate account can be carried out by creditors other than policyholders and insurers. Statutory and judicial offsetting will not apply to the separate account or the contractual offsetting of the depositary's claims on the intermediary.
Pursuant to Article 117 of the code, intermediaries that can prove via a bank guarantee that their financial capacity is equal to 4% of the premiums collected (€15,000 at a minimum) are exempt from the obligation to set up segregated accounts.
IVASS (the Italian insurance regulator), through IVASS Regulation 5/2006, further developed Article 117 of the Insurance Code by providing that:
On November 6 2017 IVASS clarified the following issues following the outcome of an investigation into the compliance of intermediaries with the above rules:
For further information on this topic please contact David Maria Marino at DLA Piper Italy by telephone (+39 02 80 61 81) or email (firstname.lastname@example.org). The DLA Piper Italy website can be accessed at www.dlapiper.com.
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