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During the last years, Panama has adopted important laws for the development of the insurance and reinsurance business and the facilities to establish captive insurance companies, counting with a streamlined system in those fields to continue being a top-rank international financial center. By means of Law 59 of July 29, 1996, the Insurance and Reinsurance Superintendency is created, which is the regulatory and controlling entity in charge of inspecting all insurance businesses in the Republic of Panama. In the insurance field, the authorization to operate is granted separately for life insurance, general insurance and bond insurance. Domestic as well as foreign companies must have a minimum paid-in capital of US$2,000,000. For reinsurance companies, they must have in cash a minimum paid-in capital of US$1,000,000. Four categories of licenses are issued in the reinsurance business: General Reinsurance License, International Reinsurance License, Reinsurance Administrator License, Reinsurance Broker License. In fiscal matter, the same premiums from reinsurance activities having foreign risks shall not create taxes, whereby, the location of the risk insured shall determine its classification as national or foreign.
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