Bank Insurance - Litigation Linked To The Stability Reserves

Credit institutions subscribe to insurance companies contracts, the purpose of which is to offer guarantees against death, invalidity or work incapacity which might affect their subscribers before their debt is entirely reimbursed.

This type of contracts usually provides for a system of the guarantee remuneration at a fixed rate requiring, subject to keeping the contract well-balanced as a whole and in order to avoid an increase in the contribution rates applying to new loans, the setting-up of a general stability device.

This device is based on the setting-up of a reserve for lack of services or on a stability reserve when the contract allows to show a profit which will be used to cover possible losses.