Document Type : Article
Authors
1 Ph.D student in the field of Oil and Gas Law, Department of Public Law, Faculty of Law and Political Sciences, Tehran University, Tehran, Iran.
2 Assistant Prof, Department of Public Law, Faculty of Law and Political Sciences, Tehran University, Tehran, Iran
3 Ph.D student in the field of Public Law, Department of Public Law, Faculty of Law and Political Sciences, Tehran University, Tehran, Iran
Abstract
Regulation of the insurance industry is of great importance due to the significant role of public interests in this sector. One of the areas in insurance where there is a serious need for regulation is the bankruptcy of insurance companies. The reason for this is that the bankruptcy of insurance companies can have severe social and economic repercussions and lead to the infringement of public interests. In this paper, the concept and rationale of regulating the insurance industry in the interest of the public id examined using library research methods, and a descriptive-analytical approach. The aim of this research is to clarify the regulatory tools regarding the bankruptcy of insurance companies in order to protect public interests. The findings indicate that financial reporting and accounting, along with investment restrictions on insurance companies, are preventive regulatory tools that are specifically relevant to the financial solvency of insurance companies. The government’s guarantee for fulfilling the financial obligations of a bankrupt insurer is another regulatory tool that pertains to the post-bankruptcy phase. The provisions under articles 44 and 52 of the Act on the Establishment of the Central Insurance of Iran are examples of these recent regulatory tools.
Keywords
- bankruptcy risk
- bankruptcy of the insurer
- public interest
- financial opulence
- priori regulatory tool
- posterior regulatory tool.
Main Subjects
English
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