Legislative tweaks to resolve Hild controversyРубрика: Property news Източник: Dnevnik
The Bulgarian parliament is scheduled to review Thursday urgent amendments to the insurance code needed to bring the operation of Hild Bulgaria, the local provider of property-backed life annuity programs for pensioners, within the regulatory purview of the nation's insurance supervisor.
The MPs will legislate that the transfer of title shall be treated as insurance premium in cases when real property rights are transacted in exchange for the payment of life-long or otherwise pension or annuity.
Another legislative change will require that the value of the transacted property is appraised by an official pursuant to the Judiciary Act.
The enactment of the legislative changes will put to rest the raging controversy over whether or not Hild is conducting an insurance business and whether or not it can be regulated by the local financial watchdog.
The amendments are sponsored by the Financial Supervision Commission which has argued that Hild is engaging in what is basically the marketing of life insurance products.
Hild has since responded that there are substantial differences between a Hild contract and an insurance policy.
FSC chairman Ralitsa Again said that the passage of the legislative proposals will force Hild to make some changes to its business model. The company will have to register as an insurer and certify a capital of 6.4 mln levs required for this purpose.
Hild said that if faced with new legislative requirements it will duly comply and align its operations to national law.
Hild clients exchange ownership of property for one-off payment and subsequent monthly annuity for the rest of their life.(Dnevnik)