REGULATORY ASPECTS OF NETHERLANDS ANTILLES INSURANCE BUSINESS
A license is required
The insurance business in the Netherlands Antilles is regulated by the National Ordinance on the supervision of the Insurance Business
Insurance companies (i.e., entities which make it their business to offer insurance products) established in the Netherlands Antilles and insurance companies with a statutory seat outside the Netherlands Antilles which have an establishment in the Netherlands Antilles, are required to obtain a license from the Central Bank (Bank of the Netherlands Antilles).
Provision of insurance services in the Netherlands Antilles without the required license (or registration if it concerns brokers) constitutes an economic offence. In principle, economic offences are punishable with a maximum fine of NAF 50,000 per violation and imprisonment of a legal entity’s managing director for the maximum length of six months.
In addition, violation of these requirements may have civil law consequences: the insurance company may be liable for its counterparty’s damages, either based on breach of contract, or tort. There is lower and appellate court case law indicating that, in relation to an unlicensed securities broker, the brokerage agreement between it and the client is void ab initio for being in breach of the relevant securities legislation. There is no Netherlands Antilles case-law specifically on the issue whether insurance agreements entered into by an unlicensed insurance company are equally void.
Karel Frielink
Attorney (lawyer) / Partner
