The legal framework for the reasons for positioning the insurance companies under the temporary management (A comparative study)

دراسة مقارنة

Abstract

The insurance sector is going through remarkable developments worldwide, which is represented by technological advances in the practice of its activity and renewed new methods of managing insurance companies and their activities. Despite this positive progress, insurance companies face financial and administrative decline during their practice or insurance companies may disobey in the course of performing their legal rules during its activity, which are enacted to preserve the company's entity, the probity of its transactions, and protect the rights of its customers, and when, for one reason or another, insurance companies are impotent to address their financial difficulties or administrative problems that intimidate their survival, the company control department intervenes to correct the course of the company with the aim of remaining as a legal entity and to conserve the rights of its customers.

One of the most important forms of this intervention is the abolishing of the board of directors of the company and the assignment of an interim director or Temporary Committee of the company in certain cases that can be referred to as reasons for positioning the company under temporary management, and these reasons may be financial or might be related to the company's activity, or the reasons might be associated to the committing of a legal violation. Accordingly, this research was classified into four sections, according to the type of those reasons, and was based on the comparative method by comparing the position of the Iraqi legal with the (UAE law). In conclusion, the reasons taking the decision to place the insurance company under interim management by the proficient authority have been determined exclusively and the decision to take interim management on the insurance company is not an imperative decision for the competent authority, as the treatment of emerging cases in the insurance company either resorts to the imposing of interim management or takes other corrective actions belongs to the discretionary of that competent party. One of the most prominent recommendations that have been concluded was to amend the legal provisions regulating the reasons for placing the insurance company under temporary management in the Iraqi Insurance Business Regulation Act in decreasing the scope of those reasons to diminish the cases of recourse to the interim management as much as possible.