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Nicaragua Establishes Rules for Insurance Intermediaries
Managua, May 1st, 2012
In a move to regulate the insurance sector in Nicaragua, the country has established new rules for insurance intermediaries. According to Law 977, the activity of insurance and reinsurance can only be practiced by legal entities constituted and domiciled in the country.
- Insurance companies incorporated abroad can operate in Nicaragua by establishing a branch.
- Foreign companies are required to have a physical presence in the national territory and must comply with all applicable laws and regulations.
- Natural or legal persons domiciled in Nicaragua are prohibited from buying insurance from companies without the proper authorization to operate in the country, except for certain limited circumstances.
- foreigners wishing to engage in insurance brokerage or to be insurance agents in Nicaragua must be residents in the country, have a work permit, and be authorized to exercise the activity under the law.
These new regulations aim to ensure that all insurance activities in Nicaragua are conducted in a transparent and secure manner, and that consumers are protected from fraudulent activities.
Nicaragua Reserves Right to Regulate Financial Institutions
Managua, May 1st, 2012
In related news, Nicaragua has reserved the right to adopt or maintain measures necessary for the incorporation in Nicaragua of financial institutions organized under the laws of foreign countries, excluding those seeking to operate as banks or insurance companies within Nicaragua.
- The country reserves the right to accord benefits to financial institutions or public entities wholly or majority owned by the State that supply financial services and are established with a public interest purpose.
- These benefits may include extension of State guarantees, tax exemptions, exceptions to the usual juridical form requirements, and exceptions to the legal requirements to begin operations.
These measures aim to promote economic development in Nicaragua and ensure that the country’s financial sector is stable and secure.
La Gaceta, Diario Oficial
Nicaragua’s Insurance Sector Regulated by Law 977
Managua, May 1st, 2012
In a recent move to regulate the insurance sector in Nicaragua, the country has established new rules for insurance intermediaries. According to Law 977, the activity of insurance and reinsurance can only be practiced by legal entities constituted and domiciled in the country.
- Insurance companies incorporated abroad can operate in Nicaragua by establishing a branch.
- Foreign companies are required to have a physical presence in the national territory and must comply with all applicable laws and regulations.
- Natural or legal persons domiciled in Nicaragua are prohibited from buying insurance from companies without the proper authorization to operate in the country, except for certain limited circumstances.
- foreigners wishing to engage in insurance brokerage or to be insurance agents in Nicaragua must be residents in the country, have a work permit, and be authorized to exercise the activity under the law.
These new regulations aim to ensure that all insurance activities in Nicaragua are conducted in a transparent and secure manner, and that consumers are protected from fraudulent activities.