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Part 2 · Provisions for direct insurance and reinsurance  ›  Division 3 · Other non-life insurance › Section 164

Claims handling in legal expenses insurance

(1) An insurance undertaking that conducts legal expenses insurance together with other classes of insurance must transfer the handling of benefits in legal expenses insurance to another undertaking having a legal form named in section 8(2), or the legal form of another company limited by shares or similar (claims handling undertaking). The transfer is deemed to be an outsourcing.
(2) The claims handling undertaking may not conduct any insurance business other than legal expenses insurance, and may not carry out benefit handling in other classes of insurance.
(3) Section 24(1) applies correspondingly to the managers of the claims handling undertaking. They may not simultaneously act for an insurance undertaking that conducts insurance business other than legal expenses insurance. Employees entrusted with benefit handling may not carry out a comparable activity for such an insurance undertaking.
(4) The members of the management board and the employees of an insurance undertaking falling under subsection (1) may not issue instructions to the claims handling undertaking on the handling of individual insured events. The managers and employees of the claims handling undertaking may not provide such an insurance undertaking with information that could lead to conflicts of interest to the detriment of the insured.
(5) Subsections (1) to (4) do not apply to legal expenses insurance where it relates to disputes or claims arising from, or connected with, the use of ships at sea.

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