English translation of article 55 of the Swiss Insurance Supervision Act

Bankruptcy of the insurance company

Chapter 5: Supervision
Section 3: Additional provisions regarding the bankruptcy of life insurance companies
> Art. 54e Appeals

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 55 of the Swiss Insurance Supervision Act 

Bankruptcy of the insurance company

1 Contrary to the provision of article 37 paragraph 1 of the Insurance Contract Act of 2 April 1908, the opening of bankruptcy proceedings shall not trigger the termination of life insurance policies secured by tied assets.

2 With respect to insurance policies pursuant to paragraph 1, FINMA may:

a. prohibit surrenders and pledging as well as advance payments and, in the case of article 36 of the Insurance Contract Act of 2 April 1908, the disbursement of the mathematical reserve; or

b. grant deferment to the insurance company in respect of its obligations and to the insured in respect of their premium payments.

3 During the deferment of premium payments, insurance contracts may only be terminated or converted into paid-up insurance upon written request of the policyholders.
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