Introduction

The "Private Life Insurance Guarantee Fund” ("Fund") is a private entity established for the protection of life insurance policyholders in the event of bankruptcy or license revocation of their life insurance company. The Fund is based in Athens under the supervision and control of Bank of Greece.

Its main objective is to transfer all or part of the life portfolio of an insurance Company in liquidation to another insurance company. If this is not successful, the Fund compensates policyholders, against the value of their contracts as well as outstanding claims and benefits payable (excluding additional coverage of hospital care), within the limits defined by Law (Article 7, Law 3867/2010).

The required, for its purposes, capital is collected through a regular contributions scheme. The contribution is defined as percentage (cannot exceed 1.5%) on total annual production of life gross written premiums. The contribution is equally shared between the insurance companies and the policy holders. The contribution appears in the insurance contract and is exempted from any tax or other levies.