English translation of article 51 of the Swiss Insurance Supervision Act

Protective measures

Chapter 5: Supervision
Section 2: Protective measures, liquidation and bankruptcy
> Art. 50 Repealed
< Art. 52 Liquidation

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 51 of the Swiss Insurance Supervision Act 

Protective measures

1 If an insurance company or intermediary fails to comply with the provisions of this Act or with regulations or orders issued by FINMA, or if the interests of the insured appear otherwise endangered, FINMA shall take the measures it deems appropriate to protect the interests of the insured.

2 In particular, it may:

a. prohibit the free disposal of assets of the insurance company;

b. order the deposit or freezing of the assets;

c. assign, in full or in part, competences allocated to an executive body of an insurance company to a third party;

d. transfer the insurance portfolio and the associated tied assets to another insurance company, subject to the latter's consent;

e. order the realisation of the tied assets;

f. demand the dismissal of the persons entrusted with the overall direction, supervision, control or management or that of the general representative as well as the responsible actuary, and ban them from exercising any further insurance activity for a maximum of five years;

g. strike an insurance intermediary from the register specified in article 42;

h. assign assets of the insurance company to the tied assets up to the target amount pursuant to article 18;

i. order a deferment and payment extension in case of insolvency risk;

3 FINMA shall ensure that the measures are adequately published if this is necessary for their enforcement or the protection of third parties.