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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First Schedule (Section 78b(a))

Part 1: Deficit Funds

(1)Mevtahim – Social Insurance Institution for Workers Ltd.;

(2)Makefet – Centre for Pensions and Severance Pay, Cooperative Society Ltd.;

(3)Nativ – Pension Fund of Workers and Employees of the Histadrut's Economic Enterprises Ltd.;

(4)Insurance and Pension Fund for Agricultural and Unskilled Workers in Israel – Cooperative Society Ltd.;

(5)Insurance and Pension Fund of Building and Public Works Workers, R.A. Ltd.;

(6)Central Pension Fund of Histadrut Employees Ltd.

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Part 2: Enterprise Funds

(1)Pension Fund of Members of "Egged" Ltd.;

(2)Pension Fund of Members of "Dan" Ltd.;

(3)Pension Fund for Hadassah Employees Ltd.;

(4)Provident Fund for Severance Pay and Pension of Employees of the Jewish Agency for the Land of Israel Ltd.

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First Schedule A (Section 78v(a)(1))

First Schedule A (Section 78v(a)(1)) — table
Month of birth	Age of entitlement to receipt of old-age pension (in years)
Until December 1948	65
January to May 1949	65 and 4 months
June 1949 to January 1950	65 and 8 months
February to September 1950	66
October 1950 to May 1951	66 and 4 months
June 1951 to January 1952	66 and 8 months
February 1952 onwards	The retirement age for a man, as stated in section 3 of the Retirement Age Law

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Part 1

Schedule: Entitlement Age for Receipt of Old-Age Pension for a Man

Schedule: Entitlement Age for Receipt of Old-Age Pension for a Man — table
Month of Birth	Entitlement Age for Receipt of Old-Age Pension (in years)
Up to December 1953	60
January to May 1954	60 and 4 months
June 1954 to January 1955	60 and 8 months
February to September 1955	61
October 1955 to May 1956	61 and 4 months
June 1956 to January 1957	61 and 8 months
February to September 1957	62
October 1957 to May 1958	The retirement age for a woman born in the months January to August 1955, as stated in Part B of the Schedule to the Retirement Age Law
June 1958 to January 1959	The retirement age for a woman born in the months September 1955 to April 1956, as stated in Part B of the Schedule to the Retirement Age Law
February to September 1959	The retirement age for a woman born in the months May to December 1956, as stated in Part B of the Schedule to the Retirement Age Law
October 1959 to May 1960	The retirement age for a woman born in the months January to August 1957, as stated in Part B of the Schedule to the Retirement Age Law
June 1960 to January 1961	The retirement age for a woman born in the months September 1957 to April 1958, as stated in Part B of the Schedule to the Retirement Age Law
February 1961 onwards	The retirement age for a woman as stated in Section 3 of the Retirement Age Law

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Part 2

Schedule: Entitlement Age for Receipt of Old-Age Pension for a Woman

First Schedule B (Section 78u, Section 78v(e)(1)(a))

First Schedule B (Section 78u, Section 78v(e)(1)(a)) — table
Name of Fund	Safety Net Ceiling (in millions of New Israeli Shekels)
Gilad Retirement Fund for Religious Employees	520
Yozma Pension Fund for the Self-Employed	119
Magen Old Pension Fund	28
Karem Pension Yesod "Amit"	87
Ateedit Pension Fund	68
Provident and Pension Fund of Jewish Agency for the Land of Israel Employees	144
Retirement Fund of "Dan" Members	95
Retirement Fund of Lawyers in Israel	45
H.A.L. Pension Fund	821
Atudot Old Pension Fund	573

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Second Schedule (Section 89)

The conditions that must be fulfilled by a society entitled to a permit under section 89 –

(1)under its rules, all its income is used for the furtherance of the purposes for which it was established;

(2)its rules prohibit it from paying members a dividend on share capital or from distributing profits among them;

(3)its business is conducted solely with its members or it operates only among its members;

(4)its rules prohibit it from engaging in life insurance or annuity insurance;

(5)it is not an authorised insurer within the meaning of the Motor Vehicle Insurance Ordinance [New Version], 5730-1970;

(6)the number of its members does not exceed 500, or, if the Commissioner has consented thereto – 1,000.

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Third Schedule (Sections 92a(a) and 92o)

Part 1

(1)failed to deliver a policy to the insured, in contravention of the provisions of section 2(a) of the Insurance Contract Law, 5741-1981;

(2)violated a provision of the Commissioner's directives issued pursuant to section 2(b) or pursuant to Section A-1 of Chapter IV;

(3)failed to report the holding of means of control, in contravention of the provisions issued pursuant to section 34a;

(4)failed to participate in a general meeting of a corporation, in contravention of the provisions of subsection (a) of section 31 of the Provident Funds Supervision Law, as applied by section 36a of this Law, or failed to comply with the directions given pursuant to subsection (b) of that section 31;

(5)failed to comply with the provisions pursuant to section 33(b) of the Provident Funds Supervision Law, as applied by section 36a, regarding the manner of calculating the value of assets to cover yield-dependent liabilities;

(6)failed to send to insured persons under yield-dependent insurance periodic reports and additional reports, in accordance with the provisions pursuant to section 35 of the Provident Funds Supervision Law, as applied by section 36a;

(7)failed to comply with the provisions pursuant to section 36(a) of the Provident Funds Supervision Law, as applied by section 36a, regarding the publication of yield-dependent insurance policies;

(7a)introduced an insurance plan or a service endorsement, or an amendment to an insurance plan or service endorsement, without having given notice thereof to the Commissioner, in contravention of the provisions pursuant to section 40(c)(1) or (h);

(7b)introduced an insurance plan or a service endorsement, or an amendment to an insurance plan or service endorsement, in contravention of the provisions regarding insurance terms or service endorsement terms, insurance premiums or service endorsement premiums given by the Commissioner pursuant to section 40(f) or (h);

(8)failed to submit to the Commissioner reports and notices, in contravention of the provisions pursuant to section 42;

(9)failed to include in the minutes of a general meeting of an insurer the particulars required under the provisions of section 48a(a);

(10)was present at or voted in a general meeting of an insurer and failed to provide the Commissioner with particulars, as required, in contravention of the provisions of section 48a(b);

(11)failed to comply with a requirement given pursuant to sections 32a(e), 50 or 73.

(11a)an insurer that failed to transmit to a health fund, via the online interface, the particulars that the health fund is required to verify pursuant to section 78aa(a), in contravention of the provisions of section 78z(c);

(11b)an insurer that violated a provision of the implementation rules prescribed by the Commissioner pursuant to section 78z(b) regarding the operation of the online interface and the transmission of information as referred to in section 78aa(a);

(11c)an insurer that disclosed to another person information received pursuant to the provisions of Chapter VII-C otherwise than in accordance with the provisions of that Chapter, in contravention of the provisions of section 78ad;

(11d)an insurer that used information received via the online interface for a purpose other than the transfer of an insured person from a "first shekel" surgical insurance policy to a "supplementary Sharap" surgical insurance policy pursuant to the provisions of section 78af, in contravention of the provisions of section 78ae(b)(1);

(11e)an insurer that used information included in a payment notice sent to it by a health fund for a purpose other than making the payment, filing an objection or applying to the additional insurers, in contravention of the provisions of section 78ae(b)(2);

(11f)an insurer that failed to give advance notice to an insured person regarding the transfer to a "supplementary Sharap" surgical insurance policy, in contravention of the provisions of section 78af(d);

(11g)an insurer that violated a provision of the Commissioner's directives issued pursuant to section 78af(j);

(12)refused to insure a person with a disability, in contravention of the provisions of section 19ai of the Equal Rights for Persons with Disabilities Law, 5758-1998;

(12)failed to provide a consumer with a professional human response in accordance with the provisions pursuant to section 59b;

(13)refused to sell a life insurance policy to a person with a life-shortening disability on account of that disability, in contravention of the provisions of section 19br of the Equal Rights for Persons with Disabilities Law, 5758-1998.

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Part 2

(1)failed to fulfil a condition prescribed in an insurer's licence, contrary to the provisions of section 14;

(2)contravened a condition in a permit granted to it under section 32, contrary to the provisions of that section;

(3)failed to hold the minimum share capital and the minimum surplus of assets over liabilities, contrary to provisions prescribed by the Minister of Finance under section 35;

(4)acted contrary to directives concerning business management prescribed or issued under section 36;

(4a)held means of control in a significant real corporation, contrary to the provisions of section 36(d);

(5)failed to appoint an organ, office holder or other position holder in an insurer, in accordance with directives issued under Section A-1 of Chapter IV, and with respect to a yield-dependent investment committee – including in accordance with directives issued under section 11 of the Provident Funds Supervision Law, as applied by the said Section, or appointed an organ, office holder or other position holder as aforesaid otherwise than in accordance with the said directives;

(6)served as an office holder or other position holder in an insurer, or acted in the framework of such a role, contrary to directives issued under Section A-1 of Chapter IV, and with respect to a member of a yield-dependent investment committee – including contrary to directives issued under section 11 of the Provident Funds Supervision Law, as applied by the said Section;

(7)calculated the value of assets to cover yield-dependent liabilities contrary to the directives of the Minister of Finance under section 33(a) of the Provident Funds Supervision Law, as applied by section 36a;

(8)failed to calculate the yield achieved by an insurer in yield-dependent insurance, or failed to credit profits and losses to the insured, in the manner and at the times prescribed by the Minister of Finance under section 34 of the Provident Funds Supervision Law, as applied by section 36a, or failed to comply with the conditions prescribed by the Minister under the said section 34 with respect to new monies deposited by the insured.

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Part 3

(1)paid a commission or any other consideration, contrary to directives issued under section 32(e) of the Provident Funds Supervision Law, as applied by section 36a;

(2)provided a misleading description in relation to yield-dependent insurance or published or caused the publication of a description containing a misleading description as aforesaid, contrary to directives issued under section 36(b) of the Provident Funds Supervision Law, as applied by section 36a;

(3)acted contrary to directives concerning the conditions of an insurance contract and their formulation prescribed under section 38;

(4)paid brokerage fees, contrary to directives issued under section 41;

(4a)collected a commission for handling a housing loan application, contrary to the provisions of section 59a3;

(5)failed to publish notice of the imposition of the financial sanction, in accordance with the Commissioner's directives issued under section 92v(d);

(6)insured a person against a financial sanction under Chapter IX-A, paid a financial sanction imposed under that Chapter in place of an individual or indemnified an individual in respect of a financial sanction as aforesaid, contrary to the provisions of section 92n.

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Fourth Schedule (Sections 92a(a) and 92o)

In this Schedule, "volume of managed assets" – the total assets held by an insurer against all of its liabilities, including yield-dependent liabilities, non-yield-dependent liabilities and equity.

(1)With respect to an insurer –

Table
Volume of managed assets held by the insurer (in millions of new shekels)	Amount of the financial sanction (in new shekels)
Breach of a provision listed in Part 1 of the Third Schedule	Breach of a provision listed in Part 2 of the Third Schedule	Breach of a provision listed in Part 3 of the Third Schedule
Up to 1,000	207,630	553,680	692,100
Over 1,000 up to 10,000	276,840	622,890	1,038,150
Over 10,000	346,050	692,100	1,384,200

(2)With respect to a corporation that is neither an insurer nor a corporate agent –

Table
Amount of the financial sanction (in new shekels)
Breach of a provision listed in Part 1 of the Third Schedule	Breach of a provision listed in Part 2 of the Third Schedule	Breach of a provision listed in Part 3 of the Third Schedule
276,840	622,890	1,038,150

(3)With respect to a corporate agent –

Table
Brokerage fees per annum (in millions of new shekels)	Amount of the financial sanction (in new shekels)
Breach of a provision listed in Part 1 of the Third Schedule	Breach of a provision listed in Part 2 of the Third Schedule	Breach of a provision listed in Part 3 of the Third Schedule
Up to 10	69,210	155,720	259,540
Over 10	276,840	622,890	1,038,150

(4)With respect to an individual who is an office holder or holder of means of control in an insurer or in a corporate agent, or a person who acts without a licence –

Table
Amount of the financial sanction (in new shekels)
Breach of a provision listed in Part 1 of the Third Schedule	Breach of a provision listed in Part 2 of the Third Schedule	Breach of a provision listed in Part 3 of the Third Schedule
34,610	83,050	103,820

(5)With respect to an individual who is a sole agent or licence holder, who is not a salaried employee of a corporation –

Table
Amount of the financial sanction (in new shekels)
Breach of a provision listed in Part 1 of the Third Schedule	Breach of a provision listed in Part 2 of the Third Schedule	Breach of a provision listed in Part 3 of the Third Schedule
6,230	12,460	18,690

(6)With respect to an individual who is a salaried employee of a corporation listed in items (1) to (3) and is not an office holder or partner therein –

Table
Amount of the financial sanction (in new shekels)
Breach of a provision listed in Part 1 of the Third Schedule	Breach of a provision listed in Part 2 of the Third Schedule	Breach of a provision listed in Part 3 of the Third Schedule
4,150	8,310	12,460

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Fifth Schedule (Sections 92p and 92s)

The Commissioner may reduce from the amount of the financial sanction the amount specified alongside each circumstance, and where several circumstances obtain – by the cumulative rate of the rates listed alongside them:

(1)in the three years preceding the date of commission of the breach, the Commissioner did not find that the violator committed the same breach – by up to 40%; however, if the Commissioner found that the violator breached provisions under this Law, the Provident Funds Supervision Law, or the Pension Advice and Marketing Law in the three years preceding the breach, the amount of the reduction under this paragraph shall be – up to 20%;

(2)the violator ceased the breach on its own initiative and reported it to the Commissioner before an approach was made on behalf of the Commissioner – by up to 50%;

(3)the violator took measures to prevent the recurrence of the breach and to minimise the harm, to the satisfaction of the Commissioner – by up to 10%;

(4)the effect of the imposition of the financial sanction on the continued activity of the violator or on the violator's insureds, including in view of the ratio between the amount of the financial sanction and the annual turnover of activity or the equity of a violator who is a corporation, and in the case of a violator who is an individual – the ratio between the amount of the financial sanction and his income from the corporation in which he is employed, his annual income or his equity – by up to 50%;

(5)the violator has an internal procedures system designed to detect and prevent the commission of the breach, and the breach evidences a localised failure rather than a systemic failure – by up to 25%, and in the case of a violator who is an individual who acted in accordance with the internal procedures system of the corporation in which he is employed – by up to 50%;

(6)in the case of a violator who is an individual, where the breach was caused by personal circumstances that justify a reduction of the financial sanction or where difficult personal circumstances existed that justify not imposing the full extent of the law upon him – by up to 50%; the Commissioner shall submit once a year to the Attorney General or to whomever he directs a report on the use of the authority under this paragraph and the reasons for which the reduction thereunder was granted;

(7)the facts constituting the breach are of negligible significance having regard to the profit that could have been generated from the breach, the loss that could have been avoided thereby, the harm that could have been caused thereby or the role of the violator – by up to 30%.

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