Settlement of Insurance Cover Costs from the Foreign-Currency Loans Repayment Insurance against the Background of the Swiss Franc Dilemma

The article focuses on the issue of settlement of insurance cover costs related to foreign-currency-indexed and/or denominated loans, which gained popularity in Poland at the beginning of the 21stcentury and currently constitute the axis of tens of thousands of cases pending before common courts. Insurance was often distributed with these types of loans, particularly long-term home loans, and was also used to secure the repayment of such loans. The consequences of ineffectiveness or invalidity declaration of a loan agreement in its entirety or only of its individual terms for the legal existence and the settlement of insurance costs of its repayment remain an important issue. The analysis of the current case law leads to the conclusion that it is necessary to delve into the mechanisms related to the functioning of loan repayment insurance, also in the context of the specifi c nature of foreign-currency-indexed loans and of the differences in respect of sanctions for defective legal transactions. This problem is exacerbated by the need to implement the interpretative directives of the Court of Justice of the EU, which, in its rulings issued in recent years, has been laying down the nature of the sanctions provided for by Directive 93/13/EEC in an increasingly detailed manner. In addition to that, loan agreements were concluded by non-consumers, who are also increasingly challenging their validity. The aim of this article is to put these relations in order and to answer the question of how to settle the costs of insurance cover correctly, both in the event of the invalidity of a loan agreement and of the invalidity or ineffectiveness of some of its terms, while taking into account the differences in the products that are used in practice in the bancassurance channel (individual insurance, group insurance, the bank’s own insurance).