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Basic "mechanisms"

Management of life portfolio

Starting on the date upon which the license of an insurance company is revoked all activities related to premiums collection, claims/ benefit payments, and policy terminations/ repurchases are suspended. The suspension period extents to the date another insurance company assume the life portfolio or the policy holder compensation process commences.

In case another company becomes the new “owner” of the life portfolio then it also assumes the right and the obligation to process all pending (previously suspended) activities related to premium collection and claims/ benefit payment.

Portfolio Transfer

A decision by the relevant supervising authorities to revoke the license of a life insurance company automatically triggers the involvement of the Fund.

The first steps of the Fund include taking stock of all life contracts; administering the valuation of the obligations rising from the life portfolio; evaluating the relevant assets, and initiating the portfolio transfer process.

Following an official invitation insurance companies can declare their interest to participate and are granted access to relevant data. Interested parties submit binding proposals which are evaluated by the Fund. The final selection is taken by the Fund and approved by Bank of Greece.

Compensation Process

In case the Fund does not succeed in transferring the life portfolio the compensation process is initiated. The compensation amount (contract value, claim, and benefit) is calculated based on contractual terms within legal boundaries with reference date the date the license of the company was revoked. In cases of contracts whose technical notes violate the terms of existing insurance law or oppose to the public interest, the Fund, following a decision by Bank of Greece published in the Official Gazette, makes all necessary adjustments.

In case policy holders refuse the proposed compensation, processing of their claim falls under the terms defined in the law of insurance settlement and more specifically under Article 10 paragraph 3 of Law 400/1970.