I. Dominican Insurance Law Overview

In the Dominican Republic (DR), the insurance sector is regulated under the Insurance and Bails Bond Law, 146-02, enacted on September 9th of 2002.  (Hereinafter, Insurance Law 146-02).

Insurance Law 146-02 regulates and provides provisions for all kind of insurances and bail bonds within the DR, as well as regulating the entrance and operation of foreign companies who undertake the activities related to the insurance business.

In this sense, the authority in charge of supervising and regulating the provisions established by Insurance Law 146-02, is the Superintendence of Insurances.

According to Law 146-02, all activities regarding insurance, reinsurance and bail bond carried out in the DR, except those regulated under special legislation, are governed under Law 146-02.


Insurance Law

II. Types of insurances that Insurer Companies can provide

Pursuant to Insurance Law 146-02, insurer and reinsurer companies can undertake the following insurance lines:

  • Personal Insurances: Includes: individual life, collective life, personal accidents, disability, life annuity, health and other personal insurance;
  • General insurances: Includes: fire and allied insurance lines including natural disasters, explosions, damages made by aircrafts and  land vehicles, smoke damages, thefts and among others;
  • Bail Bonds: Which includes fidelity, compliance bail bonds and any other described by Law.

III. Authorization for Operating a National Insurance or Reinsurance company

In order to operate a national insurance or reinsurance company under Law 146-02, it is mandatory to file a request before the Superintendence of Insurances. In doing so, the company shall comply with the following requirements:

  • Incorporated as a corporation in accordance with the DR’s Company Law;
  • Having as social aim the realization of insurance or reinsurance activities;
  • Having complied with the incorporation capital requirement established by Law 146-02;
  • That the company’s name is not similar to those of other companies already incorporated or established in the DR;
  • That 51% of shareholders are Dominican nationals and its corporate governance is governed by Dominican citizens;
  • Among other requirements established by norms issued by the Superintendence of Insurances.

IV. Authorization for Operating a Foreign Insurance or Reinsurance company in the Dominican Republic

In the case of foreign insurance or reinsurance companies intending to carry out business within the Dominican Republic, it is mandatory to file a request before the Superintendence of Insurances. In doing so, they shall comply with the requirements for filing a request as established by Law.

The insurance companies incorporated under legislations of foreign countries that are intending to undertake insurance business in the DR, shall file a request before the Superintendence of Insurances, in which they shall submit the following documents:

  • Authentic copy of the Company’s Bylaws translated to Spanish;
  • Certification related to the company’s domicile in the DR;
  • Company’s financial statements from the last 5 years approved by the competent authority of the foreign country;
  • Certificates from the administrators or directors regarding their names, domicile and nationality;
  • Authenticated copy of the power of legal representation in the Dominican Republic, translated and duly legalized;
  • Certification from the competent authority regulating the foreign insurance company in its country of origin; and
  • Other requirements established by Law.

V. Subscription and transfer of Shares

Pursuant to Law 146-02, insurers, reinsurers, intermediaries and insurance adjusters authorized in accordance with the Insurance legislation, shall request authorization from the Superintendence of Insurances before subscribing or transferring shares in favor of third parties.

VI. Licenses for Intermediaries and Adjusters

According to Law 146-02, in order for a natural or legal person undertake business as an intermediary or adjuster in any transaction or activity related to the insurance or reinsurance business, it shall be the holder of a license, which will be issued by the Superintendence of Insurances after complying with the requirements established.

As an exception to the above explained, insurer companies can act as intermediaries without requiring a license issued by the Superintendence of Insurances to do so.

Pursuant the provisions established, the Superintendence of Insurers can issue the following licenses:

  • License for General Agent
  • License for Local Agent
  • License for Insurance Broker
  • License for Personal Insurance Agent
  • License for General Insurance Agent
  • License for Reinsurance Broker
  • License for Insurance Adjuster

According to Law 146-02, the licenses issued by the Superintendence of Insurances are valid until December 31st of the second year from the date of their issuance. As Law provisions established, licenses issued can be renewed within the sixty (60) days before their expiration date.

This publication is provided for informational purposes only and not as legal advice. Any transaction related to any of the described aspects shall require advice and be specifically consulted with the firm in advance. © 2024 Arthur & Castillo | Dominican Law. Next

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