General good conditions for life insurance

As of 1 July 2023 it is mandatory for all life insurance undertakings that offer occupational accident insurance (reinsurance undertakings excluded) who has their head office in the EU/EEA that carry out insurance business either by establishment of a branch or by freedom to provide services in Denmark to join the “Danish Guarantee Fund for Non-life Insurers” by paying an entrance fee to the Fund. Information about the Fund and membership can be found on the Fund’s website.

 

With regard to the provisions in article 33 of the Directive concerning Life Assurance (2002/83/EEC) your attention is drawn to the fact that in Denmark in the interest of the general good the conclusion of some life assurance contracts is prohibited.

Section 55 (1) of the Danish Financial Business Act stipulates that:


"The following insurance contracts shall not be valid when entered into by or regarding persons domiciled in Denmark:

  • Life assurance under which on the death of the insured party the company is committed to paying an amount greater than the premium paid with interest, provided the policyholder is a different person from the insured party and does not have the consent of the insured party.
  • Life assurance under which the company is committed to paying an amount greater than the premium paid with interest, which takes effect on the death of the insured party before the insured party reaches 8 years of age. "


The companies doing business by way of freedom to provide services or cross-border activities in Denmark have to observe the rules of Annex III to the Directive concerning Life Assurance (2002/83/EEC) concerning the information for policyholders before the contract is concluded and during the term of the contract.