The cover funds refers to special funds held by an insurance undertaking that must be managed separately from the undertaking’s other assets, to ensure that claims by policyholders can be covered. The cover funds must amount to the cover requirement for life assurance, as well as health and accident insurance on the technical basis of life assurance. The cover requirement is equal to the total of the technical provisions. The insurance undertakings must ensure that the cover requirement is always fully met by assets that are dedicated to the cover funds. In the case of bankruptcy, the cover funds forms a special fund, from which the claims of the insured persons are to be satisfied preferentially. The financial market authority shall appoint a trustee and a deputy for supervising the cover funds The insurance undertaking may only dispose of assets that have been dedicated to the cover funds with the approval of the trustee.
Term-Nr.: 218
German: Deckungsstock (237)
Source: FMA AT m. e. E., 30.10.2018
Leave a Reply
Want to join the discussion?Feel free to contribute!