Art. 48(1)
An insurance company, a reinsurance company, an independent intermediary shall, adequately to the nature, scope and complexity of its business, establish, maintain and apply
(a) rules for the inspection of the activities of its workers and tied agents and their workers, and, in the case of an insurance or reinsurance company, of independent intermediaries and supplementary insurance intermediaries and their workers as well, with a particular focus on the checks on due compliance with the rules of conduct laid down by this Act, by other legislation in so far as it relates to the distribution of insurance or reinsurance, and by directly applicable EU legislation in the field of insurance distribution, and the checks on the proper conduct of business;
(b) rules of the remuneration of its workers, independent intermediaries, tied agents and their workers, supplementary insurance intermediaries and their workers; such rules must not encourage non-compliance with obligations under this Act, other legislation in so far as it relates to the distribution of insurance or reinsurance, and directly applicable EU legislation in the field of insurance distribution, in particular the rules of conduct, and must not encourage the recommendation of particular insurance products to customers to the detriment of other products which would better meet customer needs;
(c) procedures for preventing, determining and managing conflicts of interest;
(d) a complaint handling system, including general rules for the recording of and dealing with complaints; and
(e) an effective mechanism to report breaches or imminent breaches of this Act, of other legislation in so far as it relates to the distribution of insurance or reinsurance, and of directly applicable EU legislation in the field of insurance distribution, via a separate, independent and autonomous communication channel.
Art. 49.
(1) An insurance company and an insurance intermediary must not require a person who is or is to be involved in the distribution of insurance to make initial or other similar payments as a precondition for the payment of future remunerations for such activities.
(2) An insurance company and an insurance intermediary must not make remuneration for insurance distribution dependent on the acquisition of other persons for this activity by the remunerated person.
Art. 50.
(1) If life insurance ceases to exist within 5 years of the date of its start for any reason other than as a result of an insured event, the insurance intermediary is entitled to no more than a pro-rata part of the agreed remuneration for the first 5 years of the duration of the insurance.
(2) A pro-rata part referred to in Subsection 1 shall be determined as a ratio of the actual duration of insurance expressed in uncompleted months and a period of 60 months. Where the insurance has been agreed for less than 5 years, the pro-rata part referred to in Subsection 1 shall be determined as a ratio of the actual duration of insurance expressed in uncompleted months and the agreed insurance term expressed in months.
(3) Subsections 1 and 2 shall not apply if:
(a) one-off premium has been agreed, or
(b) an insurance intermediary‘s remuneration is agreed at a flat annual rate for the duration of the insurance.
(4) Where an advance on the remuneration has been paid and if the insurance under Subsection 1 ceases to exist before the end of the agreed insurance term for a reason other than as a result of an insured event, the insurance intermediary shall be obliged to release the part of the advance payment exceeding the agreed remuneration for the period until the termination of the insurance.
(5) Section 2507 of the Civil Code, the part of the sentence following the semicolon, shall apply mutatis mutandis to the cases referred to in Subsection 1.
