Permission for reorganization of insurers by merger
1. Insurer can only merge with other legal entities that do insurance business. This merge requires the approval of FIMSA.
2. Newly established legal entity can only become open joint stock company.
3. Insurers decided to merge must apply to FIMSA to get an approval. FIMSA announces the application twice in two state newspapers published within the territory of Azerbaijan Republic with 30 day’s interval which will be paid by the merging insurers.
4. In the first announcement indicated in Article 3, the procedures on the objection methods of insured, reinsured and other stakeholders must be defined, as well as the notification of the FIMSA on those objections must be clarified.
5. Within 15 days of the publishing the last announcement described in Article 3, the parties of contracts must have their head office open in Azerbaijan Republic to all the people during working hours.
6. List of required information, materials and other documents for merging the insurers are identified by FIMSA.
7. If the newly established legal entity as a result of merging do not comply with the requirements of this Law on obtaining licenses, FIMSA will not give permission for this merging.