THE ENTITY

The Consorcio de Compensación de Seguros (Insurance Compensation Consortium) is an instrument of the Spanish insurance sector, and is fully integrated in same, that has extensive experience in the range of activities that it carries out.

In legal terms, the Consorcio de Compensación de Seguros is a public corporate entity attached to the Ministry of Economy and Competitiveness through the Directorate General of Insurance and Pension Funds, but is a legal entity in its own right with full operational capabilities. In its activities the entity is subject to private legal regulations, which means that, like other private insurance entities, the Consorcio has to submit itself in its activities to the Law of Supervision and Regulation of Private Insurance and to the Insurance Contract Law.

Its Legal Statutes were approved by Law 21/1990 dated 19th December and, following successive modifications, have been included in the redrafted text approved by Legislative Royal Decree 7/2004 of 29th October, with modifications introduced by Law 12/2006 dated 16th May.

The Consorcio's activities fall within the framework of the insurance and non-insurance functions with which it has been entrusted. With regard to the former, mention must be made of its subsidiary nature, its activities in general being those of a direct insurer in the absence of any participation by the private market, as well as those activities pertaining to a guarantee fund that comes into play under certain circumstances where there is a lack of insurance, the insolvency of an insurer, etc.