Insurance laws Aruba (Netherlands)
Aruba, an autonomous country within the Kingdom of the Netherlands, has a well-defined legal framework for its insurance sector. The primary regulatory body for the financial industry, including insurance, is the Central Bank of Aruba (CBA).
Here's an overview of the key insurance laws and regulations in Aruba:
Regulatory Authority and Legal Framework:
Central Bank of Aruba (CBA): The CBA is the main supervisory body for the Aruban financial sector. It is responsible for overseeing insurance companies, ensuring their solvency, and safeguarding the interests of policyholders.
State Ordinance on the Supervision of the Insurance Business: This law provides the CBA with the legal authority to supervise both life and general insurance companies, including those incorporated in Aruba and branches of foreign companies.
Key Aspects of Insurance Law:
Licensing: All insurance companies operating in or from Aruba, whether local or a branch of a foreign company, must obtain a license from the CBA.
Types of Insurance: The law distinguishes between life insurance and general insurance. A license for general insurance is granted per line of business, such as:
Accident and health
Motor vehicle
Maritime, transport, and aviation
Fire and other property
Other indemnity
Prohibition of Composite Insurance: Insurers are not permitted to offer both life and general insurance under a single license.
Non-Admitted Insurance: The law generally prohibits non-admitted insurance, meaning that risks located in Aruba must be insured by licensed companies in the country.
Compulsory Insurance: Several types of insurance are mandatory in Aruba:
Motor Liability Insurance: Vehicle owners are required to have this insurance.
General Health Insurance (AZV): This is a mandatory social security scheme for all residents registered in Aruba. It covers basic medical services, with contributions from both employers and employees.
Accident Insurance: Employers are mandated to insure each employee for on-the-job accidents.
Sickness Insurance: Employees earning a certain salary are entitled to sickness compensation through a social security plan.
Reinsurance: While non-admitted insurance is prohibited, foreign reinsurance companies are permitted to operate in Aruba without a license, but must be registered with the CBA.
Consumer Protection: The CBA's supervision aims to protect policyholders' interests. Additionally, the Social Insurance Bank (SVb) administers various social security schemes, including sickness and accident insurance, and provides a framework for consumer rights in these areas.
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