13.

For life insurance policies pledged to the lending credit institution to be recognised the following conditions shall be met: the company providing the life insurance may be recognised as an eligible unfunded credit protection provider under Part 1, point 26; the life insurance policy is openly pledged or assigned to the lending credit institution; the company providing the life insurance is notified of the pledge or assignment and as a result may not pay amounts payable under the contract without the consent of the lending credit institution; the declared surrender value of the policy is non-reducible; the lending credit institution must have the right to cancel the policy and receive the surrender value in a timely way in the event of the default of the borrower; the lending credit institution is informed of any non-payments under the policy by the policy-holder; the credit protection must be provided for the maturity of the loan. Where this is not possible because the insurance relationship ends before the loan relationship expires, the credit institution must ensure that the amount deriving from the insurance contract serves the credit institution as security until the end of the duration of the credit agreement; and the pledge or assignment must be legally effective and enforceable in all jurisdictions which are relevant at the time of the conclusion of the credit agreement.

← 1.8.2. Life insurance policies pledged to the lending credit institution. · All articles · anx_VIII__cpt_2__cpt_1__cpt_8__cpt_2__point_13__text_1 →

Source: EUR-Lex (Cellar) · retrieved 2026-10-09 · Text as adopted (Official Journal); later amendments are not incorporated in this text.