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BREXIT: Impact on Insurance Contracts entered into with UK Insurers and Covering Risks Located in Portugal
Decree-Law n. 106/2020 of 23 December (DL 106/2020), establishes the rules applicable to the financial services upon the end of the Brexit Transition Period, which occurs on December 31st, 2020.
DL 106/2020 entered into force on December 24th, 2020 and produces its effects as from January 1st, 2021 if, in that date, no agreement has been reached between the UK and EU ruling on the same matters, DL 106/2020 shall remain in force until December 31st, 2021.
Further to the Brexit, UK insurance companies can no longer benefit from the “EU Passport” and can no longer carry out their activity under the freedom of establishment and the freedom to provide services regime. UK insurance companies willing to carry out their activity in Portugal will have to register a branch in Portugal fully compliant with the rules set forth under Law 147/2015, of 9 September 2015 which establishes the Legal Regime of the Insurance and Reinsurance activity in Portugal.
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