Restrictions on Foreign Investments

Date: 2015-10-07; view: 367.

Foreign investors may ……1….(access , adopt , intervene) the Russian market via their Russian subsidiaries. Russian law places….2….(bans , restrictions , conditions ) on insurance companies that are subsidiaries of foreign investors or where more than forty-nine percent (49%) in their charter capital belongs to foreign investors (with an exception discussed below). They cannot ..…3……(preclude , construe , conclude )personal insurance contracts in relation to property interests connected with citizens surviving until a certain age or date, death, or other events in citizens' lives (i.e., life insurance). They cannot provide…..4….( mandatory , additional , non mandatory ) liability insurance, mandatory state insurance or property insurance policies related to the performance or delivery of work under a contract for state needs as well as insurance of the property interests of state and municipal organizations.

There is a ….5…. ( limit , quota , taboo ) on the foreign capital present in the aggregate capital

of insurance companies operating in Russia. At present this quota is

set at twenty-five per cent (25%) and is far from being exceeded.

Should the amount of foreign capital invested into the sector …6…. (equal ,exceed , proceed ) this quota, the regulator must stop issuing licenses to insurance companies that are affiliates of foreign insurers or which are more

than forty-nine percent (49%) foreign-owned.

According to various sources there are legislative initiatives planned

to allow foreign insurance companies to directly open branches in

Russia. Incorporation and operation of such branches would be

supervised by the FSFM, and they would need to be permanent

establishments for….7….( tax allowances , tax exemptions , tax purposes ). However, it is not clear when such legislation may be adopted.

Read the following texts . Use your language instinct and complete the words .
Regulation of the Insurance Market and Products

The Insurance Law contains a general description of the organization

of the Russian insurance market, licensing r…….1……., operation

and liquidation of insurance b…..2……, as well as regulation of other

participants of the Russian insurance market, such as insurance

b…3…. and dealers.

The Civil Code establishes the types of insurance, the concept and

c……4….. terms of insurance contracts, the rights and duties of

parties to such contracts, rules for the change of parties and

b……5…… to insurance contracts, rules for t……6……..of insurance

contracts, as well as other fundamental insurance-related regulation.

In particular, Article 934 of the Civil Code establishes the basis for

personal (life and health) insurance and Article 929 the basis for

property insurance (property insurance, liability insurance and

business r….6….. insurance ).