Hungarian Parliament has passed Act LX of 2003 on Insurers and Insurance Activities (the "2003 Insurance Act"). The 2003 Insurance Act will come into force upon Hungary's accession to the European Union (which is expected to occur on 1 May 2004) and will replace the old Act XCVI of 1995 on Insurance Institutions and Insurance Business. The aim of the 2003 Insurance Act is to harmonize Hungarian insurance law with EU law, thus increasing the efficiency of the insurance market; introducing guarantees to protect the interests of market participants (especially the clients); and strengthening regulatory control, without imposing any limits on the participation of insurers in the market.
The 2003 Insurance Act defines some new concepts, such as a branch office, a third country, a Member State in which obligations have been undertaken, and a Member State in which services have been provided. It also introduces some new institutions, established by way of the fourth Directive on car
