Financial Services Supervision Law (Insurance), 5741-1981

In this Law –

"means of control", in a corporation – any of the following:

"yield-dependent insurance" – an insurance plan under which the insurance benefits to which the beneficiary is entitled depend on the yield generated by certain investments of the insurer;

"institutional body" – an insurer and a managing company;

"supervised body" – a body whose activity requires a licence under the supervision laws;

"late payment charges" and "shekel interest" – as defined in the Interest and Linkage Adjudication Law;

"holding" or "acquisition" – whether alone or together with others, whether directly or indirectly, including through an agent, trustee or controlled corporation;

"the Inspector" – (deleted)

"the Committee" – the Advisory Committee established under section 4;

"the Commissioner" – the Commissioner of Capital Markets, Insurance and Savings appointed under section 2(a);

"the Council" – (deleted)

"yield-dependent liability" – a liability of the insurer under yield-dependent insurance, under which the insurance benefits to which the beneficiary is entitled depend on the yield generated by certain investments of the insurer;

"managing company", "insurance fund", "provident fund", "pension provident fund", "savings provident fund", "central provident fund for sick pay", "central provident fund for severance pay" and "new comprehensive fund" – as defined in the Provident Funds Supervision Law;

"Retirement Age Law" – Retirement Age Law, 5764-2004;

"Companies Law" – Companies Law, 5759-1999;

"Pension Advice and Marketing Law" – Financial Services Supervision Law (Pension Advice, Marketing and Central Clearing System), 5765-2005;

"Provident Funds Supervision Law" – Financial Services Supervision Law (Provident Funds), 5765-2005;

"Penal Law" – Penal Law, 5737-1977;

"Law for the Promotion of Competition and Reduction of Concentration" – Law for the Promotion of Competition and Reduction of Concentration, 5774-2013;

"supervision laws" – this Law, the Pension Advice and Marketing Law and the Provident Funds Supervision Law;

"Securities Law" – Securities Law, 5728-1968;

"Interest and Linkage Adjudication Law" – Interest and Linkage Adjudication Law, 5721-1961;

"together with others" – together with others in ongoing cooperation; without derogating from the generality of the foregoing, the following shall be regarded as cooperating on an ongoing basis: for the purposes of an individual – that individual, his relative and a corporation controlled by either of them; for the purposes of a corporation – that corporation, a person who controls it and a person controlled by either of them;

"investment adviser" – as defined in the Investment Advice, Investment Marketing and Investment Portfolio Management Law, 5755-1995;

"pension adviser", "pension advice", "central pension clearing system" and "pension marketing" – as defined in the Pension Advice and Marketing Law;

"insurer" – a person who has received an Israeli insurer's licence under section 15(a)(1) or a person who has received a foreign insurer's licence under section 15(a)(2);

"insurer without a controlling shareholder" – an insurer all of whose holders of means of control are not required to hold a permit under the provisions of section 32(b);

"the Index" – the consumer price index published by the Central Bureau of Statistics;

"office holder" – as defined in the Companies Law, and any employee directly subordinate to that office holder, as well as a member of a yield-dependent investment committee and a non-yield-dependent investment committee, as referred to in section 41e;

"insurance agent" or "agent" – a person who has received an individual agent's licence under section 25 or a person who has received a corporate agent's licence under section 26;

"engaging in insurance" – entering into, in the course of business, insurance contracts, except for the provision of a warranty for a product or service ancillary to another principal occupation of the warrantor; for this purpose, "entering into" – includes an offer to enter into a contract, and includes entering into a contract not for the purpose of making a profit;

"relative" – spouse, sibling, parent, descendant, descendant of a spouse, or the spouse of any of these.

"veteran fund" – a pension provident fund that is not an insurance fund and that was first approved under the provident fund regulations before the twenty-ninth day of Tevet 5755 (1 January 1995);

"veteran fund in arrangement" – a veteran fund for which a special administrator has been appointed under section 78d;

"veteran fund not in arrangement" – a veteran fund that is not a veteran fund in arrangement;

"control" – the ability, whether alone or together with others, to direct the activity of a corporation, other than an ability deriving solely from holding the position of a director or another office holder in a corporation; without derogating from the generality of the foregoing, a person shall be regarded as controlling a corporation if any of the following applies:

"banking corporation" – as defined in the Banking (Licensing) Law, 5741-1981;

"provident fund regulations" – Income Tax Regulations (Rules for the Approval and Management of Provident Funds), 5724-1964.

The Capital Market, Insurance and Savings Authority (hereinafter – the Authority) is hereby established.

The Authority shall be independent in the exercise of its powers for the purpose of carrying out its functions, in accordance with the provisions of this Law.

The budget of the Authority shall be determined in the annual budget law under a separate budget item, and the Commissioner shall be the person responsible for that budget item; for this purpose –

"annual budget law" and "person responsible for a budget item" – as defined in the Budget Foundations Law, 5745-1985;

"budget item" – as defined in the annual budget law.

For the purpose of implementing the provisions of this Law, the Commissioner is authorised, together with the Comptroller of the Authority, to represent the Government in transactions as referred to in sections 4 and 5 of the State Assets Law, 5711-1951, except for transactions in real property, and to sign on behalf of the State documents relating to such transactions.

The Commissioner shall report to the Finance Committee of the Knesset, once a year, on the activities of the Authority within its areas of competence.

The Minister of Finance may, if the Commissioner sees a need for it, appoint a Deputy Commissioner from among State employees; the Minister of Finance may, on the recommendation of the Commissioner, confer upon the Deputy Commissioner a power vested in the Commissioner under this Law; notice of the conferral of a power under this section shall be published in Reshumot (Official Gazette).

"personal interest", of a member of the Committee – includes a personal interest of his relative or an interest of a body in which he or his relative is an interested party, a manager or a responsible employee;

"interested party" – as defined in the Securities Law;

"relative", of a member of the Committee – spouse, parent, grandparent, son or daughter and their spouses, brother or sister and their children, brother-in-law, sister-in-law, uncle or aunt and their children, father-in-law, mother-in-law, father-in-law (husband's father), mother-in-law (husband's mother), son-in-law, daughter-in-law, grandson or granddaughter, including step-relations, as well as any person who is dependent on that member.

The existence of the Committee, its powers and the validity of its decisions shall not be affected by reason of a vacancy in the position of a member thereof or by reason of a defect in the appointment of a member or in the continuation of his tenure.

No person shall disclose anything from the deliberations of the Committee, or from any material submitted to it, unless the Minister of Finance or the Chairperson of the Committee has authorised him to do so; this provision shall not apply to a deliberation which the Committee has decided shall be open to the public.