The term of validity of insurance policies concluded by insurance/reinsurance companies, in respect of which a decision has been made to open the bankruptcy procedure, will be increased from 90 days to 150 days, according to the draft adopted on Wednesday at the plenary session of the Chamber. Deputies.

Deputies adopted the draft law on the approval of GEO No. 62/2022 on amendments to Article 262 paragraph (32) of Law No. 85/2014 on the prevention of bankruptcy and bankruptcy procedures and GEO No. 19/2022 on certain measures related to guarantees of due performance, established in public procurement contracts and industry contracts.

The project aims to regulate the introduction of amendments to Article 262 para. (32) of Law No. 85/2014 on the Prevention of Insolvency and Bankruptcy Procedures, as amended to extend the validity period from 90 days to 150 days of insurance policies concluded by insurance/reinsurance companies against which a decision to open proceedings has been issued on bankruptcy regarding insurance contracts included in insurance class 15, guarantees provided for in Annex No. 1, Section A of Law No. 237/2015.

Also, the project is aimed at the legal termination of reinsurance contracts, motivated by the fact that these reinsurance contracts, concluded before the opening of bankruptcy proceedings, by the insurer in the process of bankruptcy, may cause (regarding the contractual provisions) consequences even after the termination of the insurance contracts.

At the same time, GEO No. 19/2022 regarding some measures related to performance guarantees established in public procurement contracts and industry contracts has also been amended regarding the renewal period of the performance guarantee, which also increases from 90 days to 150 days.

According to the amendment, business entities in the preventive agreement procedure opened until July 17, 2022, have the right to request an extension of the deadline for meeting the requirements established by the agreement for another 24 months. The provisions apply to business entities that have benefited from the extension of the preventive agreement. The total maximum duration of the agreement, including extensions, will be 60 months from the date of approval.

A request for an extension of the debt repayment period established by the agreement may be formulated by the administrator of the agreement at any time, until an order is issued to close the procedure, in accordance with the provisions of this law, another change provides. The request will be accompanied by a decision of the meeting of concordat creditors to approve the extension.

Creditors of the concordat, who voted against the extension of the preventive concordat under the terms of Art. 253 may collect their arrears by any other means provided by law under another amendment.

The Chamber of Deputies is the decision-making body in the case of this draft law.