DECREES:

Article 1.- To amend and supplement a number of articles in Decree No. 100-CP of December 18, 1993 of the Government on insurance business as follows:

1. Article 3 is amended as follows:

"Article 3.- This Decree shall apply to insurance enterprises, insurance brokerage organizations and insurance agents, but not to the medical insurance system which was issued together with Decree No. 299-HDBT of August 15, 1992 of the Council of Ministers (now the Government) and the social insurance system issued together with Decree No. 43-CP of June 22, 1993 of the Government".

2. Article 4 is amended as follows:

"Article 4.- The State protects the legitimate rights and interests of the insured as well as the lawful interests of insurance enterprises.

The State encourages the expansion and development of insurance business activities; strictly forbids insurance enterprises to force, through any organizations and individuals, the purchase of insurance in any forms, which thus affects the legitimate interests of the insured.

The Ministry of Finance shall lay down principles of cooperation in the insurance service in order to ensure a healthy development of the market".

3. Article 6 is amended as follows:

"Article 6.- An insurance enterprise may reinsure at other enterprises.

In case of reinsurance at foreign insurance organizations, the insurance enterprise shall have to reinsure part of its liabilities under such reinsurance contract at the Vietnam National Reinsurance Company on the basis of ensuring the equity of interests of both parties and the capability of the Vietnam National Reinsurance Company according to specific guidances of the Ministry of Finance".

4. The following paragraph is added to the end of Article 7:

"The Government shall stipulate the different types of compulsory insurance".

5. Article 10 is amended as follows:

"Article 10.- In the course of implementation, the insurance enterprise must constantly ensure:

1. That its statutory capital is not lower than the prescribed capital specified in Article 22 of this Decree (Decree No. 100-CP of December 18, 1993 of the Government);

2. The financial requirements shall comply with the concrete guidances of the Ministry of Finance so as to fulfill its commitments to the insured".

6. Clause 1, Article 12 is amended as follows:

"1. An insurance enterprise shall be allowed to invest its capital and assets in various businesses in different investment forms and ensure the safety and efficiency of the investment, but it must meet regular payment requirements arising in the process of paying compensation or insurances to the insured".

7. The following point 6 is added to Article 14:

"6. Replacement of the manager";

8. The following is added to Article 18:

"Article 18a.- For the compulsory insurance, an insurance enterprise shall have to abide by all the rules, terms and premium index or bracket issued by the Ministry of Finance.

For the insurance related to human beings, an insurance enterprise shall have to submit to the Ministry of Finance for approval the insurance rules and terms, and register the insurance premium index with the Ministry of Finance before the application thereof.

For other types of insurance, an insurance enterprise shall have to report their rules, terms and insurance premium index to the Ministry of Finance before the application thereof".

9. Article 19 is amended as follows:

"Article 19.- Activities of an insurance agent must be based on an agent contract signed with an insurance enterprise.

1. An individual who wishes to undertake insurance agent activities must fill all the following conditions:

a/ Being a Vietnamese citizen who has full capacity for civil acts and is legally residing in Vietnam;

b/ Possessing a certificate of general or higher education .

c/ Having completed a training course on insurance agency organized by the insurance enterprise or a competent agency;

d/ Having signed an agent contract with the insurance enterprise.

2. The following individuals shall not be allowed to undertake insurance agent activities:

a/ Under examination for penal liability or serving a court sentence.

b/ Being an official or employee or worker of such insurance enterprise or the unit buying insurance or the insured.

3. The insurance enterprise shall be entitled to appoint agents to conduct unprohibited insurance business activities and shall take responsibility for their agents� operations.

Unless provided for in a separate agreement with the insurance enterprise, an insurance agent shall not be allowed to act concurrently as an insurance agent for another insurance enterprise.

The payment of commissions for insurance agents shall have to comply with the regulations of the Ministry of Finance. Insurance enterprises are strictly forbidden to pay commissions to insurance buyers or the insured.

The Ministry of Finance shall issue a regulation on the operation of insurance agents".

10. Article 34 is amended as follows:

"Article 34.-

1. Insurance enterprises, insurance brokerage organizations and insurance agents that violate the provisions in their certificates or the provisions in Decree No. 100-CP and the Decree amending and supplementing a number of articles of Decree No. 100-CP, thereby affecting the interests of the insured, shall, depending on the seriousness of the violation, be subject to administrative sanctions; pay compensation for damage or be examined for penal liability.

2. For violations that seriously affect the interests of the insured, apart from sanctions provided for in Clause 1 this Article, the Ministry of Finance may apply the following measures:

a/ Compelling the offender to increase its assets;

b/ Restricting the offender�s scope and area of operation;

c/ Requesting a competent State agency to block the offender�s assets;

d/ Requesting the insurance organization to replace its manager and/or member(s) of the Managing Board".

Article 2.- This Decree takes effect 15 days after its signing. The earlier provisions which are contrary to this Decree are now annulled.

Article 3.- The Minister of Finance shall have to guide the implementation of this Decree.

Article 4.- The Ministers, the Heads of the ministerial-level agencies, the Heads of the agencies attached to the Government, the Presidents of the People�s Committees of the provinces and cities directly under the Central Government shall have to implement this Decree.

On behalf of the Government

For the Prime Minister

Deputy Prime Minister