II. Insurance Lines

Under Law 146-02, insurers and reinsurers may write the following lines:

• Personal insurance: individual life, group life, personal accidents, disability, annuities, health and other personal lines.
• General (property and casualty) insurance: fire and allied lines including natural disasters, explosion, aircraft and land vehicle damage, smoke damage, theft, and related coverages.
• Bonds (surety): fidelity, performance and other bonds described by the law.

III. Authorization of a Dominican Insurance or Reinsurance Company

To operate a Dominican insurance or reinsurance company, an application must be filed with the Superintendence of Insurance, demonstrating that the applicant:

• Is incorporated as a corporation under Dominican company law.
• Has as its corporate purpose the conduct of insurance or reinsurance activities.
• Meets the minimum capital requirement established by Law 146-02 and its adjustments.
• Uses a corporate name not confusingly similar to that of an existing company in the DR.
• Has at least 51% Dominican shareholding, with corporate governance by Dominican citizens, as required for national insurers.
• Satisfies the other requirements established by the norms of the Superintendence of Insurance.

Because of the majority-Dominican-capital rule for national insurers, foreign groups typically enter the market through the authorized-branch route described below or through joint ventures with Dominican partners; the structure should be settled before capital is committed.

IV. Authorization of a Foreign Insurance or Reinsurance Company

Foreign insurance or reinsurance companies intending to do business in the DR must apply to the Superintendence of Insurance, filing:

• An authentic copy of the company’s bylaws, translated into Spanish.
• Evidence of the company’s domicile in the DR.
• Financial statements for the last five (5) years, approved by the competent authority of the home country.
• Certifications identifying the administrators or directors, their domicile and nationality.
• An authenticated, translated and duly legalized copy of the power of attorney for the legal representative in the DR.
• A certification from the home-country insurance regulator, and the other requirements established by law.

V. Subscription and Transfer of Shares

Insurers, reinsurers, intermediaries and adjusters authorized under the insurance legislation must obtain prior authorization from the Superintendence of Insurance before subscribing or transferring shares to third parties.

This prior-approval rule makes the Superintendence a mandatory stop in any M&A transaction involving a Dominican insurance business (see Mergers & Acquisitions, section II).

VI. Licenses for Intermediaries and Adjusters

Any natural or legal person conducting business as an intermediary or adjuster in insurance or reinsurance transactions must hold a license issued by the Superintendence of Insurance. By exception, insurance companies may act as intermediaries without a separate license.

The Superintendence may issue the following licenses: general agent; local agent; insurance broker; personal insurance agent; general insurance agent; reinsurance broker; and insurance adjuster.

Licenses are valid until December 31 of the second year following their issuance and are renewable within the sixty (60) days before expiration.

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. © Arthur & Castillo. All Rights Reserved. Next