Regulatory Alerts2025-01-09
Regulation on Insurance of Borrower’s Life Against Death and Loss of Capacity for Work Under Loan Agreements
The Central Bank of the Republic of Azerbaijan issued this regulation to establish rules for voluntary life and disability insurance covering individual borrowers under loan agreements. It defines eligible policyholders, specifies covered risks such as death and loss of capacity for work while excluding events like military operations or pre-existing chronic conditions, and mandates insurers to issue certificates and process claims within seven business days. The framework further standardizes contract formation, amendment procedures, early termination rights, and premium refund calculations to protect borrowers and lenders.
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