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.
Chapter V-A: Class Action
62a.§
(Repealed — תשס״ו־2)
62b.§
(Repealed — תשס״ו־2)
62c.§
(Repealed — תשס״ו־2)
62d.§
(Repealed — תשס״ו־2)
62e.§
(Repealed — תשס״ו־2)
62f.§
(Repealed — תשס״ו־2)
62g.§
(Repealed — תשס״ו־2)
62h.§
(Repealed — תשס״ו־2)
62i.§
(Repealed — תשס״ו־2)
62j.§
(Repealed — תשס״ו־2)
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Contact Us →Chapter VI: Winding Up of Insurance Business
Voluntary Winding Up§
63.
(a)An insurer that has resolved to wind itself up or to wind up its insurance business, generally or in a particular class of insurance, shall notify the Commissioner thereof without delay.
(b)The Commissioner may, if the Commissioner considers it necessary in order to protect the interests of the insured –
(1)direct the insurer to act in a particular manner in winding up the business;
(2)apply to the court with a request for the making of an order that the winding up be carried out by the court or under its supervision.
Winding up following cancellation of licence§
64.
(a)An insurer whose licence has been cancelled shall wind up its insurance business in Israel in the branch in respect of which the licence was cancelled.
(b)The Commissioner may, if the Commissioner considers it necessary to do so in order to safeguard the interests of the insured, direct an insurer whose licence has been cancelled to act in a specified manner in the winding up of the business.
(c)If an insurer whose licence has been cancelled has not wound up its business within a reasonable time, a court may, on the application of the Commissioner, appoint a receiver over its property, in whole or in part, or order its winding up.
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Contact Us →Chapter VII: Preservation of Ability to Meet Obligations and of Sound Management
Notice to insurer of defects§
65.
(a)If the Commissioner is of the opinion that a particular insurer has conducted its business in a manner liable to impair its ability to meet its obligations or the sound management of its business, the Commissioner shall send the insurer a written notice setting out the defects, demanding their rectification or the prevention of their harm within a period specified in the notice, and shall afford the insurer an opportunity to submit, within that period or within a shorter period as specified in the notice, its comments and objections regarding the defects or the demands for their rectification.
(b)If an insurer has submitted comments and objections as referred to in subsection (a), the Commissioner shall decide upon them as soon as practicable after receiving them and shall notify the insurer of the decision, and if the Commissioner demanded rectification of the defects or prevention of their harm, shall fix the period within which the insurer is to act accordingly.
Commissioner's authority to determine bad debts§
66.
(a)If the Commissioner is of the opinion that a particular debt, in whole or in part, owed to an insurer is a bad debt, or that an asset of an insurer is recorded in its books at an amount exceeding its value at that time in a sale between a willing seller and a willing buyer, the Commissioner may direct the insurer to set aside in an appropriate fund such amount as is required for that purpose.
(b)A direction referred to in subsection (a) shall have the same effect as a notice under section 65.
Measures to prevent harm§
67.
If the Commissioner is of the opinion, after the expiry of the period specified in a notice under section 65, that an insurer has not rectified the defects of which it was notified under section 65 or has not prevented their harm, or is of the opinion, after affording the insurer an opportunity to present or submit its comments and objections, that it is necessary to take measures to prevent an insurer from being unable to meet its obligations or from causing harm to those insured with it or to holders of means of control in it, the Commissioner may, after consultation with the Committee –
(1)direct the insurer to refrain from types of acts specified in that direction, except for the performance of an obligation;
(2)prohibit the distribution of dividends or profits or the granting of benefits to directors, business managers, other employees of the insurer or insurance agents.
Powers for preserving the stability of an insurer§
68.
(a)If the Commissioner is of the opinion, after consultation with the Committee, that a particular insurer is unable to meet its obligations or that an office holder in it has acted in a manner liable to impair the sound management of its business, the Commissioner may, after the insurer has been afforded a reasonable opportunity to present or submit its arguments before the Committee, give the insurer any direction of the directions set out in section 67, and may, with the approval of the Minister of Finance –
(1)suspend or restrict the authority of an office holder or other employee of the insurer;
(2)suspend an office holder in the insurer for a period to be determined, or remove the office holder from office, after the office holder has been afforded an opportunity to present arguments;
(3)appoint an authorised manager to manage the business of the insurer as provided in section 70 and appoint a management committee for the insurer to advise the authorised manager; the management committee shall consist of three members, at least one of whom is a retired judge;
(4)appoint a special inspector for the insurer to supervise its management as provided in section 71.
(b)If the Commissioner considers that in the circumstances of the matter the public interest requires that action be taken under subsection (a) without delay, the Commissioner may, with the approval of the Minister of Finance, act immediately, provided that the Commissioner brings the matter before the Committee as soon as practicable after the action, and the Committee shall afford the insurer a reasonable opportunity to present or submit its arguments.
Preservation of validity of acts§
69.
An act performed by an insurer, or by a person whose authority to perform the act was suspended or restricted, or by a person who was suspended or removed from office pursuant to a direction given under section 68, in relation to another party in contravention of a direction given under section 68, shall not be void by reason of that alone.
Powers of authorised manager§
70.
(a)An authorised manager appointed under section 68(a)(3) shall manage the business of the insurer in accordance with directions received from the Commissioner.
(b)Without derogating from the provisions of subsection (a), the authorised manager shall have all the powers and functions vested in a business manager of the insurer, in its board of directors, in the committees of its board of directors and in its directors under the insurer's incorporation documents and decisions lawfully adopted; for as long as an authorised manager is carrying out the authorised manager's functions, the board of directors, its committees and its members shall not carry out their functions or exercise their powers.
(c)The authorised manager is empowered, after consultation with the management committee and with the approval of the Commissioner, after consultation with the Committee, to transfer the assets and liabilities of the insurer, in whole or in part, to another insurer that has agreed thereto.
(d)The Commissioner may direct the insurer to pay the authorised manager remuneration and expenses as determined by the Inspector, and if the authorised manager is a State employee, the Commissioner may direct that the remuneration be paid to the State Treasury.
Arrangement plan§
70a.
(a)An authorised manager appointed under section 68(a)(3) may prepare a plan (hereinafter – arrangement plan) for the discharge of the insurer's liabilities to insured persons, beneficiaries and third parties under insurance contracts, and to other creditors of the insurer (hereinafter – the entitled persons); an arrangement plan may include different payment rates and due dates according to orders of priority.
(b)An arrangement plan shall define categories of entitled persons and shall prescribe uniform payment rates and due dates for entitled persons in each category; in determining the categories of entitled persons and the orders of precedence among them, it is permissible to prefer entitled persons whose claim is in respect of bodily injury over entitled persons whose claim is in respect of property damage, and individual entitled persons over entitled persons that are corporations, and it is also permissible to prefer entitled persons according to the extent of the harm and their ability to bear it, all in accordance with criteria to be specified in the arrangement plan.
(c)An arrangement plan may include additional classification and preference rules beyond those prescribed in subsection (b), if it is just to do so in the circumstances of the matter.
(d)An arrangement plan requires the approval of the District Court; in coming to approve an arrangement plan the court shall consider, inter alia, whether it is likely to benefit the entitled persons as a whole more than any other course and whether it is just and appropriate in the circumstances of the matter; the court may approve the arrangement plan as submitted to it or with such modifications as seem fit to it.
(e)A proposed arrangement plan submitted to the court and an arrangement plan that has been approved shall be published to the public in such manner and form as the court shall direct; any person who considers himself aggrieved by a proposed plan or by the manner of its implementation may apply to that court.
(f)Within the framework of an arrangement plan, the court may, on the application of the authorised manager, order a stay of proceedings pending against the insurer or against its assets, including execution proceedings, attachment, realisation of a security and receivership, and prohibit the commencement of such proceedings, and may give directions on any other matter relating to the implementation of the arrangement plan.
(g)If the authorised manager has notified the court that an arrangement plan being prepared is not yet capable of being submitted to the court for reasons stated, and that the authorised manager intends to submit it for the court's approval by a date stated, or if the authorised manager has submitted an arrangement plan to the court and the court has not yet decided on the application for its approval, the court may, on the application of the authorised manager, order a temporary stay of proceedings and prohibit the commencement of proceedings, or give directions on any other matter, all as referred to in subsection (f), until its decision on the application or until a date to be determined.
Special inspector§
71.
(a)A special inspector appointed under section 68(a)(4) shall supervise the acts of the board of directors of the insurer and the management of its business in accordance with directions received from the Commissioner.
(b)The Commissioner may permit the special inspector to employ other persons for the purpose of carrying out the special inspector's functions.
(c)The Commissioner may direct the insurer to pay the special inspector and the persons employed by the special inspector remuneration and expenses as directed by the Inspector, and if the special inspector or the persons employed by the special inspector are State employees, the Commissioner may direct that the remuneration be paid to the State Treasury.
Management committee§
72.
(a)A management committee appointed under section 68(a)(3) shall advise the authorised manager in carrying out the authorised manager's functions under section 70.
(b)The authorised manager shall be the chairperson of the management committee.
(c)The Commissioner may direct the insurer to pay the members of the management committee remuneration and expenses as determined by the Commissioner, and if the members are State employees, the Commissioner may direct that the remuneration be paid to the State Treasury.
(d)Where a management committee has been appointed, it shall approve the insurer's balance sheet and appoint an auditor for the insurer, as if it were a general meeting.
Provision of information§
73.
Where a direction has been given under section 68, every office holder in the insurer, whether or not a direction suspending or restricting authority or a direction of suspension or removal from office was given in relation to that office holder, and every other person employed by the insurer, shall be required, upon demand by the authorised manager, the special inspector or any person authorised by them for that purpose, to deliver to them or their agents such information, registers, documents or other records as the person making the demand considers likely to ensure or facilitate the implementation of a direction under section 68.
Suspension of performance of obligations§
74.
(a)The authorised manager may, with the approval of the Commissioner, direct that within a period not exceeding ten days from the date of appointment under section 68(a)(3), the insurer shall not perform obligations whose due date falls within that period or prior thereto.
(b)The Commissioner may extend the period referred to in subsection (a) by a further ten days if notice has been given as referred to in section 75 of the intention to cancel the insurer's licence, and the period within which the board of directors is entitled to submit its arguments has not yet elapsed, or a court has not yet made an order for the winding up of the insurer or for the appointment of a receiver over its assets.
(b1)The Commissioner may extend the period referred to in subsection (b) by a further sixty days, if this is required for the purpose of preparing an arrangement plan, provided that the court has not made an order for the winding up of the insurer or for the appointment of a receiver over its assets.
(c)The authorised manager shall publish, in at least two daily newspapers published in Israel, a direction given under subsections (a) or (b) as soon as practicable after it is given.
(d)The insurer, the authorised manager or the Commissioner shall not bear any liability by reason of giving a direction under this section or by reason of non-performance of an obligation pursuant thereto.
Notice of intention to cancel a licence§
75.
If the Commissioner wishes to cancel the licence of an insurer over whom an authorised manager has been appointed, the Commissioner shall afford the board of directors of the insurer a reasonable opportunity to submit or present its arguments before the Committee.
Power to guarantee§
76.
(a)The Minister of Finance may, with the approval of the Government, announce in Reshumot (Official Gazette) that an insurer that has agreed thereto and that the Minister of Finance has authorised for this purpose, or the Government (hereinafter – the guaranteeing insurer), shall be guarantors –
(1)for obligations towards insured persons of an insurer in respect of whom a direction has been given under section 68, whether for the full amount of the obligations or up to a certain amount in respect of each obligation of the types of obligations specified in the announcement;
(2)for obligations of other types of an insurer as referred to in paragraph (1), in whole or in part, provided –
(a)that the Minister considered that the public interest requires it to be done;
(b)that a guarantee shall not thereby be given for all the obligations of an insurer unless, in the opinion of the Minister of Finance, there is a reasonable prospect that the giving of such a guarantee will enable the insurer to continue to manage its business in an orderly manner.
(b)A guarantee by the Government under subsection (a) requires the approval of the Finance Committee of the Knesset.
(c)A guarantee under subsection (a) may be for a limited or unlimited period, and may be conditional or unconditional, all as specified in the announcement.
(d)Once an announcement has been published as aforesaid, the guarantee shall be valid in accordance with the announcement even if the guaranteed insurer did not consent to the giving of the guarantee, and the guaranteeing insurer shall be entitled at any time to recover from the guaranteed insurer any amount paid by virtue of the guarantee.
(e)The guaranteed insurer shall be entitled, notwithstanding any contrary condition in an agreement into which it has entered, to undertake obligations towards the guaranteeing insurer in connection with the giving of the guarantee provided under subsection (a) and its conditions.
(f)If the Minister of Finance decides, with the approval of the Government, to cancel a guarantee given under subsection (a), the Minister shall announce in Reshumot (Official Gazette) and in at least two daily newspapers the cancellation and its effective date, which shall be not less than ninety days from the date of publication of the announcement, and from that date onwards no person shall be entitled to claim from the guaranteeing insurer the discharge of the obligation; however, a person entitled to the performance of an obligation of the guaranteed insurer on a date later than the date of cancellation, where that obligation existed at the time the guarantee was in force, shall be entitled to recover from the guaranteeing insurer or to bring a claim against it within thirty days from the date fixed for the performance of that obligation, and if the guaranteeing insurer has paid, the provisions of subsection (d) shall apply.
(g)A guarantee under this section shall have the same effect as a guarantee under the Guarantee Law, 5727-1967.
Restriction on winding up, appointment of receiver and execution§
77.
(a)Where the authorised manager has given a direction under section 74, a court shall not make an order for the winding up or receivership of the insurer in respect of whom the direction was given, and neither the insurer nor any meeting of its shareholders or other rights holders shall adopt a resolution for voluntary winding up, and a receiver shall not be appointed over it whether on behalf of bondholders or on behalf of any other person, and no attachment shall be imposed on its assets or on rights held by it by another person, and no other execution proceedings shall be commenced or continued against it, for as long as the direction under section 74 is in force, except on an application submitted by or with the written consent of the Attorney General.
(b)Where an authorised manager has been appointed, a court shall not, for as long as the appointment of the authorised manager is in force, make an order for the winding up or receivership of the insurer on the application of one of the holders of means of control in it, and neither the insurer nor any meeting of holders of means of control in it shall adopt a resolution for its voluntary winding up.
Restriction on resolutions of a meeting§
78.
A resolution adopted at a meeting of holders of means of control of the insurer that is inconsistent with the provisions of sections 67 to 77 or with an act done or a direction given pursuant thereto shall have no effect.
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