The General Directorate of Insurance and Pension Funds has decided to adopt special control measures over the General Sports Social Security Mutual Society when circumstances are detected that may jeopardize the adequate protection of the assets of the mutualists. These circumstances are that the net assets are negative by 853,000 euros, an amount less than half of the mutual fund. Furthermore, the deficit in technical provisions to be covered is more than 10% and the solvency margin is insufficient.
These data, recorded in the third quarter of 2011, allow the General Directorate of Insurance and Pension Funds to adopt special control measures in accordance with current legislation. Special control consists of prohibiting the entity from disposing of real estate, transferable securities, current accounts or deposits, financial assets, insurance policies or any other asset of which it is the owner. Likewise, it is prohibited to carry out, without prior authorization, management acts consisting of assuming debts, concluding contracts, granting loans, endorsements or guarantees, etc.
The entity has a period of one month to formulate the allegations it deems appropriate against the special control measures adopted. In addition, when the Mutual Society is in the process of dissolution due to its equity ratio, deficit of provisions and insolvency, Insurance recalls that the administrators have a period of two months to summon the mutualists in order to make decisions about their viability. In case of not doing so, the administrative dissolution will proceed.
Mutualidad General Deportiva has a premium volume of 9.5 million euros and 1.2 million policyholders. It covers risks of sports accidents for both affiliates and schoolchildren from autonomous communities and high-level athletes. It was established in 1960.