English translation of article 32 of the Swiss Insurance Supervision Act

Legal protection insurance

Chapter 3: Conduct of insurance activities
Section 6: Special provisions for individual insurance lines
> Art. 31a Agreement between insurance companies

This page contains an English translation of the below Article of the Swiss Insurance Supervision Act (ISA) and is part of a web based Swiss ISA commentary in German language. Should you require qualified written legal advice on the ISA from a Swiss lawyer please do not hesitate to contact: Melissa Gautschi

Article 32 of the Swiss Insurance Supervision Act 

Legal protection insurance

1 An insurance company seeking to operate legal protection insurance simultaneously with other insurance lines must:

a. assign the settlement of claims arising from its legal protection insurance line to a legally independent company (claims settlement company); or

b. grant the insured, as soon as they are entitled to require the intervention of the insurance company under the terms of the insurance contract, the right to assign the defense of their interests to an independent lawyer of their choice or, if permissible under the applicable procedural law, to another person fulfilling the criteria as set out in the aforementioned law.

2 The Federal Council shall regulate the relationship between the insurance company and the claims settlement company. It shall furthermore issue regulations with respect to form and content of the legal protection insurance contract, in particular the procedure to follow if the insurance company or claims settlement company cannot reach an agreement with the insured on the measures to be taken to settle the claim.