European Insurance Overview

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Questions and Answers

What is the primary goal of the EU regarding the single market?

To create a common, single market that allows the free movement of goods, persons, services, and capital.

What are the three pillars of Solvency II?

Pillar 1 focuses on quantitative requirements, Pillar 2 on governance and risk management, and Pillar 3 on disclosure and transparency.

Why is civil liability insurance important for domestic vehicles in the EU?

It ensures that drivers have coverage for damages they may cause, encouraging them to travel or do business across member states.

What does ORSA stand for in the context of Solvency II?

Own Risk and Solvency Assessment. Signup and view all the answers

What does Pillar 1 of Solvency II primarily focus on?

Quantitative requirements, including minimum capital needed by insurance companies. Signup and view all the answers

How does the EU aim to achieve the goal of a single market gradually?

By harmonizing member states' rules, particularly concerning insurance requirements. Signup and view all the answers

What happens if a driver is unsure about mandatory insurance in another member state?

The driver may refrain from traveling or conducting business there. Signup and view all the answers

What was the purpose of the five directives adopted by the EU regarding motor insurance?

To ensure that domestic vehicles have civil liability insurance recognized across all member states. Signup and view all the answers

What is the primary function of the European Council?

To define the general political direction and priorities of the EU. Signup and view all the answers

Who are the current key leaders of the European Council and the European Commission?

Donald Tusk is the president of the European Council, and Jean-Claude Juncker is the president of the European Commission. Signup and view all the answers

How is the president of the European Commission appointed?

The president is chosen by the Council and must be approved by the European Parliament. Signup and view all the answers

What distinguishes the European Parliament from the European Commission?

The European Parliament represents the EU's citizens and is directly elected, while the European Commission represents the interests of the Union as a whole. Signup and view all the answers

What is the composition of the Council of Ministers?

It consists of national ministers from each member state, with the composition depending on the topic being discussed. Signup and view all the answers

What legislative function does the European Parliament serve?

It has a legislative and controlling function within the EU, increasing its importance in governance. Signup and view all the answers

Describe the term 'Moving circus' as it relates to the European Parliament.

It refers to the Parliament's practice of meeting in both Brussels and Strasbourg, which incurs significant costs. Signup and view all the answers

What is one impact of the European Parliament's movements between Brussels and Strasbourg?

It has a financial impact, estimated at 200 million euros a year. Signup and view all the answers

What is the primary function of the European Insurance Court of Justice?

To uphold the rule of European law and interpret European law. Signup and view all the answers

How many judges does the European Insurance Court of Justice have?

28 judges. Signup and view all the answers

What significant change regarding gender discrimination occurred after 2012?

There is no discrimination allowed based on gender in the context of insurance. Signup and view all the answers

What role does the European Central Bank (ECB) play in financial stability?

It controls inflation and provides loans to banks. Signup and view all the answers

What distinguishes supranational from intergovernmental arrangements?

Supranational arrangements involve member states ceding authority, while intergovernmental arrangements maintain member state control with cooperative agreements. Signup and view all the answers

What is the purpose of the Court of Auditors in the EU?

To check the financing of the EU's activities. Signup and view all the answers

What example illustrates the need to sometimes distinguish people by age in insurance?

Young people often pay significantly more for insurance. Signup and view all the answers

What is meant by the term 'state bond'?

A state bond is a loan to a state, often considered a safe investment. Signup and view all the answers

Study Notes

European Insurance Summary

The document is a summary of European insurance, covering its history, institutions, and key regulations.
The summary discusses the European Union's goal of establishing a common market for insurance across member states, aiming to harmonize regulations.
It highlights the challenges in achieving this goal due to differing regulatory approaches among member states.
The document details the four freedoms (movement of people, capital, goods, and services) within the EU, essential elements for a functioning common market.
It describes the Schengen Agreements, a borderless travel zone within Europe, impacting cross-border movement and the insurance sector.
The document explains the various European institutions involved in overseeing and regulating insurance, including the European Council, European Commission, Council of Ministers, European Parliament, Court of Justice, and the European Central Bank (ECB).
It touches on the concept of "acquis communautaire," crucial for the EU's functioning and the adoption of its laws by member states.
The summary emphasizes the evolution and significance of European insurance regulations, including how they have developed over time.
It covers several directives and landmark rulings (e.g., Francovich versus Italy), clarifying how their provisions address issues regarding insurance and compensation.
The document mentions the importance of harmonizing the rules governing insurance companies to fulfill the EU's goal of a common market.
The document provides an overview of recent developments, especially in cases where the application of EU Directives was challenged in court.

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Description

This summary provides an overview of European insurance, discussing its history, institutions, and key regulations. It outlines the European Union's initiatives towards creating a common insurance market while facing challenges from diverse regulatory environments among member states. Additionally, it covers the importance of the four freedoms and the Schengen Agreements in enhancing cross-border insurance activities.