In the event the Federal Financial Supervisory Authority issues the order to transfer a portfolio to the Guarantee Fund, the insurance contracts generally remain in force unchanged. All rights agreed upon in the life insurance contract, e.g. index-linking and contract adjustments, are maintained and fulfilled by the Guarantee Fund. Retirement benefits and term coverage are guaranteed to their full extent as well as bonus shares already allocated.
The Act provides for exceptions only in case the financial means of the Guarantee Fund are insufficient to put the insurance portfolio back on an even keel. In this case the Federal Financial Supervisory Authority reduces the commitments from the contracts by up to 5% of the benefits guaranteed in the contracts (Art. 125(5) of the Insurance Supervision Law).