1. Background And Current Legislation
In parallel with the rapid growth in the Turkish insurance
sector, there have been major changes to the Turkish insurance
legislation in the last few years. The Insurance Supervision Law
which regulated insurance activities for 47 years has been replaced
with Insurance Law No. 5684 (the Insurance Law) in
3 June 2007. In addition to the Insurance Law, there are specific
pieces of legislation regulating the activities of individual
professions in insurance industry (e.g. brokers, loss adjusters,
etc.) and different types of insurance (e.g. life insurance,
reinsurance, etc.).
The principal piece of legislation regulating insurance
contracts in Turkey is the Turkish Commercial Code (the
TCC). Article 1263 of the TCC defines an insurance
contract as follows:
