Section IV "Life" and "Accident" Insurances

"Life" and "accident" insurance contracts shall be concluded against events relevant to the life, health or bodily integrity of the assured or of a third party.

(1)

Upon the occurrence of an insurance event or of certain conditions specified in the contract, the insurer shall be obliged to pay to the assured the sum insured, to an amount specified in the insurance contract.

(2)

The assured or the third party beneficiary shall be entitled to a sum insured also in cases where the person who has caused the damages is obliged to indemnify the assured or has already indemnified him, as well as where the assured has received payment under another insurance contract.

(3)

In the case of "life" or "accident" insurances an insurer who has paid the sum insured may not subrogate to the rights of the assured against the person who has caused the event.

(1)

A "life" or "accident" insurance contract on the life of a third party shall have effect only where concluded with the consent of such party provided in writing. This rule shall not apply to a spouse, a relative of descending or ascending line.

(2)

The third party under paragraph 1 may object at any time in writing before the insurer, who shall be obliged to terminate the contract.

(3)

In the case of death of the third party under the age of forty years, as well as of an incapacitated person, the insurance shall be invalid. The insurer shall be obliged to return the premiums received on the basis of such contracts.

(4)

Should the assured die before the third party, the contract shall be terminated, unless otherwise agreed.

(5)

In the case under paragraph (4), if the "life" insurance has been maintained for at least two years, the insurer shall be obliged to pay to the heirs of the assured or to the third party beneficiary the premium reserve under the insurance.

(1)

A contract for mutual insurance may be concluded by spouses, persons of kinship and partners to a partnership pursuant to Article 357 of the Law on Obligations and Contracts, as well as by partners to a general partnership company.

(2)

In the event of divorce the mutual insurances shall be split. This rule shall not apply if the contract has been concluded in favour of a child of the dissolved marriage.

(1)

The assured may determine the third party beneficiary at any time upon the conclusion of a "life" or "accident" insurance contract, as well as at any time of its duration.

(2)

Where the insurance is taken on the life of a third party, the beneficiary must provide his consent in writing.

(3)

Where the insurance contract has been concluded in favour of the children of the assured, beneficiaries shall also be the children born after the conclusion of the contract, unless otherwise provided.

(4)

Where the insurance contract has been concluded in favour of a spouse of the assured, the right shall belong to the person married to the assured as of the date of occurrence of the event, unless otherwise agreed.

(5)

Where there are several beneficiaries, they shall have equal rights, unless otherwise agreed.

(6)

Should the third party die before the assured, the sum insured shall be paid to the assured.

(7)

The third party-beneficiary shall forfeit his rights under the contract if he has intentionally caused the insurance event.

(8)

If the creditors of the assured cancel the insurance contract, the third party-beneficiary shall be liable to the amount received, but not more than the premiums paid.

(1)

The sum insured shall not be included in the estate of the assured, even where his heirs have been specified as beneficiaries.

(2)

Where the beneficiary is a heir, he shall be entitled to the sum insured, even if he refuses the inheritance.

(1)

The insurer shall be relieved of his obligations under the contract, if:

1.

the assured commits suicide intentionally before the expiration of one year after conclusion of the contract;

2.

the bodily injury, the damage to the bodily integrity, the loss of working capacity or the death occur upon commitment by the assured of a crime of a general nature;

3.

the death has occurred upon execution of capital punishment;

4.

the death occurred in the course of war or military activities, unless otherwise agreed.

(2)

Provided the premiums have been paid for at least two full years in the case of "life" insurance, the insurer shall pay to the heirs of the assured or the third party-beneficiary the premium reserve under the insurance.

(1)

Should the assured under "life" insurance fail to pay a due premium, the insurer may not seek payment thereof by court procedure.

(2)

The insurer shall be obliged to invite the assured in writing to pay the premium within a period of time which may not be less than one month following the receipt of the request.

(3)

Where the premium is not paid, the insurer may reduce the sum insured to the amount of the buy-off sum, provided the premium has been paid for at least two years. Otherwise the insurer may cancel the contract.

(4)

Should an insurance event occur before the reduction of the sum insured or the cancellation of the contract pursuant to paragraph 3, it shall be assumed that the sum insured has been reduced or that the contract has been cancelled.

(1)

In the case of "life" insurance, upon request of the assured the insurer shall be obliged to pay the buy-off value of the policy, provided at least two years have expired from the commencement of the insurance and the premiums have been regularly paid.

(2)

The policy should indicate the conditions under which the assured may request payment of the buy-off value, as well as the manner of calculation of such an amount.

(3)

Where the insurance has been taken out in favour of a third party and he has declared that he accepts the arrangement in his favour, the right to the buy-off value shall belong to the third party.

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