English translation of article 60 of the Swiss Insurance Supervision Act

Relinquishment

Chapter 5: Supervision
Section 5: Termination of insurance activity
> Art. 59 Restrictions on disposal

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 60 of the Swiss Insurance Supervision Act 

Relinquishment

1 An insurance company that relinquishes its authorisation must submit a run-off plan for approval to FINMA.

2 The run-off plan must include information about:

a. the settlement of the financial obligations arising from the insurance contracts;

b. the resources allocated to this effect; and

c. the person responsible for this task.

3 Should the insurance company fail to comply with the approved run-off plan, article 61 paragraph 2 shall apply by analogy.

4 The insurance company having relinquished its authorisation may not enter into any new insurance contracts in the concerned insurance lines; existing insurance contracts may not be renewed nor may their scope of insurance be extended.

5 The insurance company that has complied with its obligations under supervisory law shall be released from supervision and the security deposit shall be returned to it.
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