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Financial Services Supervision Law (Insurance), 5741-1981

חוק הפיקוח על שירותים פיננסיים (ביטוח), תשמ"א-1981

Published: 1981-04-23Consolidated Hebrew text as of 2026-07-26 · Last amended 2026-07-22✓ Amendment status checked against the Knesset legislation record on 2026-09-29
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Unofficial English translation — for reference only. It may contain errors or omissions and cannot be relied on as a legal text. Only the Hebrew text published in Reshumot is legally binding.More

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Despite these checks, it may contain errors, omissions, or imprecise renderings of legal terminology and cross-references, and it may not yet reflect the latest amendments. It cannot be relied upon as a legal text.

The Hebrew text as published in Reshumot (ספר החוקים) and on the Knesset website is the sole authoritative and legally binding version. In any discrepancy, the Hebrew text prevails.

This translation is provided for informational purposes only and does not constitute legal advice. For use in legal proceedings, request a certified Expert Legal Opinion.

Section A-2: Committee for the Appointment of Directors in Insurers without a Controlling Shareholder

The committee for the appointment of directors in insurers without a controlling shareholder§
41m.
(a)The Minister of Finance shall appoint a committee for the appointment of directors in insurers without a controlling shareholder (in this Section – the Committee).
(b)The Committee shall consist of five members, as follows:
(1)a retired judge of the Supreme Court or of a District Court, to be proposed by the Minister of Justice in consultation with the President of the Supreme Court, who shall serve as chairperson;
(2)two members, to be proposed by the chairperson of the Committee appointed under paragraph (1) in consultation with the chairperson of the Israel Securities Authority, who are persons active in commerce and economics and who satisfy the requirements of section 16a of the Government Companies Law, 5735-1975, or who are senior academic staff members at institutions of higher education in relevant fields, or who were such staff members;
(3)two directors serving as external directors or as independent directors in the insurer whose affairs the Committee is considering, to be proposed by the chairperson of the Committee and the members of the Committee appointed under paragraphs (1) and (2), in consultation with the Commissioner; for this purpose, "independent director" and "external director" – as defined in the Companies Law or in Regulations under section 41f.
(c)The Committee and its members shall not be regarded as holding means of control in an insurer whose affairs the Committee is considering, or as controlling such an insurer.
(d)The Committee is an audited body within the meaning of section 9(6) of the State Comptroller Law, 5718-1958 [Consolidated Version].
Disqualifications from membership and post-tenure restrictions§
41n.
(a)In this section –

"affiliated body" – a person who controls an insurer or a corporation controlled by an insurer or controlled by a person who controls an insurer;

"affiliation" – the existence of an employment relationship, the existence of business or professional connections on a regular basis, other than negligible connections, and also service as an office holder; however, retail business connections between a corporation and a customer shall not be regarded as affiliation;

"material holder" – a person holding more than two and a half per cent of a particular class of means of control in an insurer whose affairs the Committee is considering or is to consider, a person who controls such a holder, a person controlled by either of them, a member of a holder group within the meaning of section 41k(a)(3)(c), a person who controls a member of such a holder group, and a person controlled by either of them;

"close connection" – a relationship between a person and his relative, partner, employer, a person to whom he is directly or indirectly subordinate, and also a corporation in which he is the controlling shareholder.

(b)A person shall not be appointed or serve as a member of the Committee if any of the following applies to him:
(1)he or his relative holds means of control of any class whatsoever in the insurer, in an affiliated body or in a material holder, except for the holding of traded shares at a rate not exceeding one quarter of one per cent of the issued and paid-up capital of any of them;
(2)a person who, in the two years preceding the date of appointment or from the date of appointment onwards, has or whose close connection has an affiliation with the insurer, with an affiliated body, with an office holder in the insurer or with a material holder, and also a person who from the date of appointment onwards has an affiliation with a relative of an office holder in the insurer whose affairs the Committee is considering or is to consider, or with a relative or partner of a material holder; for this purpose, service as an external director or as an independent director by a member of the Committee appointed under section 41m(b)(3) shall not be regarded as affiliation;
(3)he is a Minister, Deputy Minister or member of the Knesset, or has a personal, business or political affiliation with a Minister or Deputy Minister, or he is a State employee or an employee of a corporation established by law;
(4)in the opinion of the Minister of Finance, he is not suitable to serve as a member of the Committee.
(c)Without derogating from the provisions of subsection (b)(2), a person shall not serve as a member of the Committee if he or his close connection has business or professional connections with an insurer, with an affiliated body, with an office holder in the insurer or with a material holder, even if such connections are not on a regular basis, other than negligible connections.
(d)A person who has served as a member of the Committee shall not be appointed as a director in an insurer whose affairs the Committee considered during his tenure, or in a body affiliated with such an insurer, shall not be employed as an employee by any of them and shall not provide professional services to any of them, whether directly or indirectly, including through a corporation under his control, unless a year has elapsed since the end of his service as a member of the Committee as aforesaid; the provisions of this subsection shall not apply to a member of the Committee appointed under section 41m(b)(3), in respect of service as an external director or as an independent director, in the insurer, as the case may be.
Term of office§
41o.
(a)A member of the Committee referred to in section 41m(b)(1) and (2) shall be appointed for a term not exceeding three years, and may be reappointed for one additional term of office.
(b)A member of the Committee referred to in section 41m(b)(3) shall be appointed shortly after an annual meeting and shall serve until after the next annual meeting, and shall serve as a member of the Committee for as long as he serves as an external director or as an independent director, in the insurer, as referred to in that section, and may be reappointed for additional terms of office.
Termination of office§
41p.

A member of the Committee shall cease to serve before the end of his term of office in any of the following circumstances:

(1)he resigned by delivering a letter of resignation to the Minister of Finance;
(2)the Minister of Finance decided to terminate his tenure on any of the following grounds:
(a)he is unable to perform his duties or is not performing his duties properly;
(b)one of the grounds under section 41n that disqualify him from eligibility for service has arisen in his case.
Procedure§
41q.
(a)A majority of the members of the Committee shall constitute a quorum at its meetings, provided that such a majority of members does not include a majority of members appointed under section 41m(b)(3).
(b)Decisions of the Committee shall be adopted by a majority of votes of its members participating in the vote; where the votes are equal, the chairperson of the Committee shall have a casting vote.
(c)The Committee shall determine its own rules of procedure, including the manner of selecting the director it is to appoint as referred to in section 41b1(b) and the manner of selecting the candidate for the office of director it is to propose to the general meeting as referred to in section 41k; the rules of procedure of the Committee shall be approved by the Commissioner and shall be published on the website of the Ministry of Finance.
Validity of actions§
41r.

The powers of the Committee and the validity of its actions shall not be affected by reason of a vacancy in the position of a member, or by reason of a defect in the appointment of a member, or by reason of a defect in the continuation of a member's tenure.

Remuneration§
41s.

Members of the Committee shall be entitled to remuneration for participation in meetings of the Committee at a rate to be prescribed by the Minister of Finance, and shall not be entitled to any other remuneration or reimbursement of expenses; the said remuneration shall be paid by the State Treasury.

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Section B: Reports

Reports and notices§
42.
(a)An insurer and a corporate agent shall submit to the Commissioner reports and notices as set out below:
(1)financial reports as the Commissioner shall direct, after consultation with the Committee, at such times and for such periods as he shall prescribe, or upon the occurrence of an event that he shall prescribe;
(2)immediate reports and notices as the Commissioner shall direct, after consultation with the Committee, upon the occurrence of an event that he shall prescribe;
(3)additional reports and notices as the Commissioner shall direct.
(b)The Commissioner shall prescribe provisions regarding the manner of submission of a report or notice under this section, including their publication to the public, their format, content, level of detail and accounting rules for the preparation of a financial report, including the declarations and notes to be attached thereto.
(c)The Commissioner may, for reasons that shall be recorded, exempt an insurer or a corporate agent from submitting a report or notice under this section, or extend the time for their submission.
Misleading particulars in a report or notice§
42a.
(a)A report or notice submitted under section 42 shall not contain a misleading particular; the provisions of Chapter V of the Securities Law shall apply, with the necessary modifications, to the publication of a misleading particular in a report or notice as aforesaid.
(b)In this section, "misleading particular" – includes anything likely to mislead a reasonable person and any omission whose absence is likely to mislead a reasonable person.
43.§

(Repealed — תשס״ה־4)

44.§

(Repealed — תשס״ה־4)

45.§

(Repealed — תשס״ה־4)

46.§

(Repealed — תשס״ה־4)

47.§

(Repealed — תשס״ה־4)

48.§

(Repealed — תשס״ה־4)

Information from shareholders§
48a.
(a)The minutes of the general meeting of an insurer recording its decisions on the matters listed below shall specify the names of those present at the meeting, the names of those who voted, the proportion of holdings in voting rights by virtue of which they voted and the manner of their voting:
(1)amendment of the memorandum or articles of association;
(2)appointment or termination of tenure of a director;
(3)approval of actions or transactions requiring the approval of the general meeting under the provisions of sections 255 and 268 to 275 of the Companies Law;
(4)distribution under Chapter II of Part 7 of the Companies Law;
(5)approval of a merger under section 320 of the Companies Law.
(b)The Commissioner may require from a person who was present or who voted at a particular general meeting of an insurer, particulars as to his identity, particulars as to the identity of the person on whose behalf he is acting as agent or trustee, and, if he is a corporation, particulars as to those who control it.
Winding up or bankruptcy§
49.

An insurer or insurance agent against whom winding-up or bankruptcy proceedings have been opened shall notify the Commissioner thereof without delay.

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Section B-1: Supervision Powers and Administrative Inquiry

Definitions§
49a.

In this Section –

"computer material", "computer" – as defined in the Computers Law, 5755-1995;

"Computers Law" – Computers Law, 5755-1995;

"object" – as defined in the Arrest and Search Ordinance;

"document" – including output as defined in the Computers Law, 5755-1995;

"Arrest and Search Ordinance" – Criminal Procedure Ordinance (Arrest and Search) [New Version], 5729-1969.

Supervision officers§
49b.
(a)The Commissioner shall authorise employees of the Authority for the purpose of exercising the powers referred to in sections 49c and 49d (in this Law – a supervision officer).
(b)A person shall not be authorised under the provisions of subsection (a) unless all of the following conditions are met:
(1)the Israel Police has notified, within three months of the Commissioner's approach to it, that it does not object to his authorisation on grounds of public safety, including by reason of his criminal record;
(2)he has received appropriate training in the field of the powers to be conferred on him under sections 49c and 49d, as directed by the Commissioner with the approval of the Minister for Public Security, and, with respect to the exercise of powers of accessing or copying computer material as referred to in section 49d(a)(3) – he is proficient in carrying out operations of accessing and copying computer material;
(3)he meets additional eligibility conditions, as the Commissioner may direct.
Supervision powers§
49c.

For the purpose of supervising compliance with the provisions under this Law, the Commissioner or a supervision officer, after having identified himself pursuant to section 49e, may –

(1)require any person concerned to deliver to him any information or document relating to the business of a person to whom this Law applies or relating to a contravention under this Law;
(2)enter any premises not used solely as a dwelling that he has grounds to believe is being used by an insurer or an insurance agent, and require that any information or document relating to its activity as aforesaid be delivered to him; however, a document shall not be seized under this paragraph if it suffices to make a copy thereof; a document that has been seized shall be returned to the person from whose possession it was taken within six months from the date on which it was seized.
Administrative inquiry powers§
49d.
(a)Where the Commissioner has reasonable grounds to believe that a person has committed a contravention of a provision under this Law applicable to him, as detailed in the Third Schedule or in section 104, other than a contravention listed in items (1) and (3) to (11) of Part 1 of the Third Schedule (in this section – a contravener and a contravention, respectively), the Commissioner may, for reasons that shall be recorded, permit a supervision officer, in addition to the powers referred to in section 49c –
(1)to apply to a judge of a Magistrate's Court for an Order requiring a person in whose possession or control an object or document required for the purpose of inquiring into the contravention is presumed to be found, to produce to the supervision officer the object or document or to furnish it, at the time, place and in the manner specified in the Order;
(2)to summon any person whom the Commissioner considers likely to have information relevant to the contravention or to facts that may lead to the identification of the contravener, and to question him in connection with that matter; a summons under this paragraph of a person who is not the contravener shall be for a reasonable time and to a place to be coordinated with him;
(3)to apply to a judge of a Magistrate's Court for an Order permitting him to enter any premises not used solely as a dwelling, to conduct a search therein and to seize any object required for the purpose of inquiring into the contravention, and also to access and copy computer material, all subject to the conditions and restrictions to be prescribed in the Order.
(b)A supervision officer shall notify a person summoned under subsection (a)(2), before the commencement of the questioning, of the acts in connection with the contravention of which he is to be questioned; the person summoned shall answer the questions put to him, and his answers shall not serve as evidence in criminal proceedings or civil proceedings against him.
(c)Where a person summoned under subsection (a)(2) has not appeared, the court may, at the request of a supervision officer, order that he be brought before a supervision officer or impose on him a penalty for non-compliance, as referred to in section 73 of the Courts Law [Consolidated Version], 5744-1984, as if the person had been summoned to give evidence before a court and had not appeared.
(d)An Order under subsection (a)(1) or (3) shall not be issued unless one of the following has occurred:
(1)a person was required by a supervision officer to produce an object or document to him, and failed to do so;
(2)a requirement as referred to in paragraph (1) is likely to prejudice the inquiry into the contravention owing to concern that evidence may be concealed or harmed.
(e)Accessing computer material and copying it pursuant to an Order under subsection (a)(3) shall be carried out by a person holding a position who is proficient in performing these operations.
(f)The provisions of sections 23a, 24(a)(1) and (b), 26 to 28, 31 and 45 and the provisions of Chapter IV of the Criminal Procedure Ordinance (Arrest and Search) [New Version], 5729-1969 shall apply, with such modifications as are required by the circumstances, to a search, seizure of an object and accessing or copying computer material under this section.
Duty of identification§
49e.

A supervision officer shall not make use of the powers conferred on him under sections 49c or 49d except in the course of performing his duties and when both of the following conditions are met:

(1)he is visibly wearing a badge identifying him and his position;
(2)he holds a certificate signed by the Commissioner attesting to his position and his powers, which he shall present upon request.
Order for the Cessation or Prevention of Carrying on Business without a Licence§
49f.
(a)Where the Commissioner has reasonable grounds to believe that a person who does not hold a licence under this Law is engaged, or is about to engage, in insurance or in brokerage in connection with insurance, the Commissioner may, in writing and after obtaining the approval of a Magistrate's Court therefor, order that person to cease such activity or to refrain therefrom, as the case may be.
(b)An order under subsection (a) shall not be made unless one of the following conditions is met:
(1)the person was required by the Commissioner to cease the activity or to refrain therefrom and failed to do so;
(2)the public interest requires that an order be made for the cessation of the activity or for refraining therefrom, without delay.
(c)The Commissioner shall publish, in any manner the Commissioner sees fit, the text of the order, shortly after the approval of the court is obtained; if an appeal is filed against the court's decision as aforesaid, the Commissioner shall likewise publish notice of the appeal.
Delivery of Information and Documents§
50.
(a)The Commissioner, or a person authorised by the Commissioner for that purpose, may require any insurer and insurance agent, and any office holder therein, to deliver to the Commissioner any information and documents relating to the insurance business handled by them, including statistical and actuarial reports, and to show the Commissioner or the Commissioner's representatives any ledger, account, certificate or other document in their possession relating to their insurance business.
(b)(Repealed)
Confidentiality§
50a.

The Commissioner, an employee subordinate to the Commissioner, or a person acting on the Commissioner's behalf, shall not disclose any information or show any document delivered to them by virtue of their office or powers under this Law, except for the purpose of criminal proceedings, or if the Commissioner considered it necessary for the purpose of deliberation before the Committee.

Disclosure of Information to a Supervisory Authority in Israel§
50b.
(a)Notwithstanding the provisions of section 50a, the Commissioner may disclose information or show a document to the Securities Authority as defined in section 2 of the Securities Law, 5728-1968, to the Supervisor of Financial Service Providers appointed under the Financial Services Supervision Law (Regulated Financial Services), 5776-2016, to the Bank of Israel, to the Financial Stability Committee as defined in the Bank of Israel Law, 5770-2010, and to the Supervisor of Banks appointed under the provisions of section 5 of the Banking Ordinance, 1941 (in this section – the transferee body), provided that the Commissioner is satisfied that the information or document is required for the purpose of the fulfilment of the functions of the transferee body.
(b)A person to whom information or a document has been delivered under the provisions of this section shall not disclose that information or show that document.
Disclosure of Information to a Supervisory Authority in a Foreign State§
50c.
(a)Notwithstanding the provisions of section 50a, the Commissioner may transmit information or a document in the Commissioner's possession to a competent authority in a foreign state whose function is to supervise persons engaged in insurance or in brokerage in connection with insurance in that state.
(b)The Commissioner shall not transmit information or a document under the provisions of subsection (a) unless the Commissioner is satisfied that both of the following conditions are met:
(1)the information or document is required for the purpose of the fulfilment of the functions of the competent authority in supervising bodies as referred to in subsection (a);
(2)the competent authority has confirmed that it is subject to a duty of confidentiality similar to the provisions of section 50a, or has undertaken not to transfer the information or document to another.
(c)The Commissioner shall not transmit information or a document as aforesaid if it has been determined that their transmission is liable to prejudice a pending investigation or the security of the State.
51.§

(Repealed — תשס״ה־4)

52.§

(Repealed — תשס״ה־4)

53.§

(Repealed — תשס״ה־4)

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