LIECHTENSTEIN Law and Practice Contributed by: Alexander Ospelt, Lukas-Florian Gilhofer, Vivianne Auer and Laura Bayer, Ospelt & Partner Attorneys at Law Ltd
Ospelt & Partner Attorneys at Law Ltd Landstrasse 99
P.O. Box 532 9494 Schaan Principality of Liechtenstein Tel: +423 236 1919 Fax: +423 236 19 15 Email: info@ospelt-law.li Web: www.ospelt-law.li
1. Basis of Insurance and Reinsurance Law 1.1 Sources of Insurance and Reinsurance Law The Principality of Liechtenstein is a civil law coun- try. Due to its geographical location in the heart of Europe and its particularly small size, the principality’s legal system is widely influenced by its neighbouring countries, Switzerland and EU member state Austria, and particularly the latter in the area of insurance law. Austrian and European case law therefore play a significant role in insurance law in Liechtenstein. The main sources of insurance and reinsurance law in the Principality are as follows. • National statutory provisions • The Insurance Supervision Act (VersAG) and its corresponding supplemental Insurance Supervision Ordinance (VersAV) govern the legal framework for supervisory activities by state authorities. • The Insurance Contract Act (VersVG) sets out the legal framework for the conclusion of insurance contracts. • The Civil Code (ABGB) establishes the general civil law framework that covers insurance and reinsur- ance contracts. • The Insurance Distribution Act (VersVertG) and its corresponding supplemental Insurance Distribution Ordinance (VersVertV) determine the legal frame- work for the distribution of insurance and reinsur- ance products. • The International Insurance Contract Law Act (IVersVG) sets out which law applies to cross-bor- der insurance contracts.International provisions
• The agreement between the Principality of Liech - tenstein and Switzerland on direct insurance and insurance intermediation – this mutually recognises the supervision system and introduces a passport- ing/notification process comparable to the system within the EEA. As a result, Liechtenstein offers the unique opportunity to insurers and insurance inter- mediaries to provide cross-border services to the EEA and to Switzerland without the need to obtain additional licences. • EU directives and regulations – the Principality of Liechtenstein is not an EU member but is part of the European Economic Area (EEA), together with Iceland and Norway. This means that EU direc- tives and regulations do not apply to Liechtenstein directly. Instead, they follow a special process of incorporation and implementation. However, due to its EEA membership, directives and regulations are an important source of insurance law in Liechten- stein. 2. Regulation of Insurance and Reinsurance 2.1 Insurance and Reinsurance Regulatory Bodies and Legislative Guidance The Insurance Supervision Act (VersAG), with its cor- responding Insurance Supervision Ordinance (VersAV) and the Financial Market Supervision Act (FMAG), make up the core statutory provisions for supervisory activities in Liechtenstein. The VersAG regulates direct insurance and reinsurers, as well as non-life and life insurers, with the conse-
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