Unofficial translation REPUBLIC OF LITHUANIA INSURANCE SUPERVISORY COMMISSION RESOLUTION ON INFORMATION PROVIDED BY INSURANCE INTERMEDIARIES TO CUSTOMERS 16 March 2004, No N-30 Vilnius The Insurance Supervisory Commission of the Republic of Lithuania, having regard to Articles 149(4), 170(3), 176(1) and 177(4) of the Law on Insurance of the Republic of Lithuania (Official Gazette Valstybės Žinios, No 94-4246, 2003) and implementing Directive 2002/92/EC of the European Parliament and of the Council of 9 December 2002 on insurance mediation, h a s r e s o l v e d as follows: 1. Prior to the conclusion of any initial insurance contract, and, if necessary, upon amendment (renewal) thereof, an insurance intermediary, an insurance intermediary of other Member States of the European Union, a branch of untied insurance intermediaries of a foreign country (hereinafter in the text where the provisions of this Resolution refer to an insurance intermediary, an insurance intermediary of other Member States of the European Union and to a branch of untied insurance intermediaries of a foreign country the term ‘insurance intermediary’ shall be used to represent the above) shall provide the customer with the following information: 1.1. his identity and address; 1.2. the register of legal persons and/or the list of tied insurance intermediaries in which he has been included and the means for verifying that he has been registered. Insurance broker undertakings shall also make reference to the website of the Insurance Supervisory Commission of the Republic of Lithuania where a list of insurance broker undertakings is published; 1.3. whether he has a holding or other assets, direct or indirect, representing more than 10 % of the voting rights or of the capital in a given insurance undertaking, a given insurance undertaking of other Member States of the European Union or in a given insurance undertaking of a foreign country (hereinafter in the text where the provisions of this Resolution refer to an insurance undertaking, an insurance undertaking of other Member States of the European Union or in an insurance undertaking of a foreign country the term ‘insurance undertaking’ shall be used to represent the above); 1.4. whether a given insurance undertaking or parent undertaking of a given insurance undertaking has a holding or other assets, direct or indirect, representing more than 10 % of the voting rights or of the capital in the insurance intermediary; 1.5. the procedures allowing customers and other interested parties to make complaints about activities of insurance intermediaries and, if appropriate, about the out-of-court complaint and redress procedures. 2. In addition, an untied insurance intermediary shall inform the customer, concerning the insurance contract being proposed, whether: 2.1. he gives advice as an untied insurance intermediary conducting insurance mediation business upon instructions from policyholders, insured persons, beneficiaries or injured third parties; 2.2. he gives advice as an untied insurance intermediary conducting insurance mediation business upon instructions from insurers. In that case, the untied insurance intermediary shall, at the customer’s request provide the names of the insurers with which he may and/or does conduct business. 3. A tied insurance intermediary shall also inform the customer, concerning the insurance contract being proposed, that he is under contractual obligation to conduct insurance mediation business exclusively with one or more insurance undertakings. In that case, the tied insurance intermediary shall, at the customer’s request provide the names of those insurance undertakings. 4. In addition, an insurance intermediary shall inform the customer, concerning the insurance contract being proposed, of the particulars provided in Articles 78 and 99 of the Law on Insurance of the Republic of Lithuania. 5. In those cases where information is to be provided solely at the customer’s request, the customer shall be informed that he has the right to request such information. 6. When the untied insurance intermediary informs the customer that he gives advice as an untied insurance intermediary conducting insurance mediation business upon instructions from policyholders, insured persons, beneficiaries or injured third parties, he is obliged to give that advice on the basis of a sufficiently comprehensive analysis of insurance contracts available on the market, to enable him to make a recommendation, in accordance with professional criteria, regarding which insurance contract would be adequate to meet the customer’s needs. 7. Prior to the conclusion of any specific contract, the insurance intermediary shall specify, in particular on the basis of information provided by the customer, the demands and needs of that customer as well as the underlying reasons for any advice given to the customer on a given insurance contract. These details shall be modulated according to the complexity of the insurance contract being proposed. 8. The information referred to in points 1, 2, 3, 5, 6 and 7 of this Resolution need not be given when the insurance intermediary mediates in the insurance of large risks. 9. All information to be provided to customers in accordance with this Resolution shall be communicated: 9.1. on paper or on any other durable medium available and accessible to the customer; ‘Durable medium’ means any instrument which enables the customer to store information addressed personally to him in a way accessible for future reference for a period of time adequate to the purposes of the information and which allows the unchanged reproduction of the information stored. In particular, durable medium covers floppy disks, CD-ROMs, DVDs and hard drives of personal computers on which electronic mail is stored, but it excludes Internet sites, unless such sites meet the criteria specified in the first sentence of this paragraph; 9.2. in a clear and accurate manner, comprehensible to the customer; 9.3. in an official language of the EU Member State of the commitment or in any other language agreed by parties. 10. The information referred to in this Resolution may be provided orally where the customer requests it, or where immediate cover is necessary. In those cases, the information shall be provided in accordance with point 9 immediately after the conclusion of the insurance contract. 11. In case of insurance mediation services provided by telephone, the prior information given to the customer shall be in accordance with the rules applicable to the distance marketing of consumer financial services. Moreover, information shall be provided to the customer in accordance with point 9 immediately after the conclusion of the insurance contract. 12. This Resolution shall enter into force on 1 October 2004. Edvinas Vasilis – Vasiliauskas Chairman of the Insurance Supervisory Commission of the Republic of Lithuania ______________