Insurance

The insurance industry is also of ample importance to the national economy. To operate an insurance company, you must obtain permission from the Superintendence of Insurance (regulatory body of the sector, but hierarchically located under the Ministry of Finance), responsible for supervising the operations of insurance institutions, reinsurance companies, brokers and adjusters.

In general, the law does not discriminate as to the capital composition of capital of insurance companies, except if the foreign company comes from a country that would not allow the operation of a Dominican insurance company. The law also prohibits cross-border procurement of certain services such as life and health insurance, as well as motor vehicles, boats and aircraft with Dominican registration. Finally, it requires that a foreign insurer that intends to offer its products in the country incorporates a subsidiary and makes the deposits contemplated by law, being unable to operate through branches. As to reinsurance, it may be offered are need for local presence, but the reinsurer must obtain a permit from the Superintendence of Insurance.

Finally, companies are free to set premiums for their products, although they are subject to an evaluation of the Superintendent. The law establishes the necessary requirements to operate as an insurance and reinsurance company in the country, as an intermediary, or as an adjuster, as well as the process for requests to initiate operations. Also, the law governs matters relating to insurance and bond agreements, such as their execution, provisions, payment of premiums and claims, among other things, and establishes the creation of a guarantee fund to guarantee the obligations derived from these contracts.