Validity of Unit-Linked Insurance Contract that Coexists with an Invalid Loan Agreement

The authors of the article discuss the questions of validity of a unit-link insurance contract that co-exists with a mortgage loan agreement denominated in or indexed to foreign currency which is invalid due to abusive terms contained therein. Given the diversity of insurance contracts, this article analyses the effects of declaring the loan contract invalid only with respect to the unit-linked insurance. The authors indicate the type of circumstances in which the validity of insurance contract should not be effectively contested, as well point to situations where such contract may be inevitably declared invalid. The subject of analysis is insurance contracts both for one’s own benefi t and for the benefi t of a third party (group insurance contracts). The authors also address the validity of the assignment contract concluded between the insuring party and the bank to secure the loan agreement. While advocating in principle that the declaration of invalidity of a loan agreement should not affect the validity of the unit-linked life insurance contract, the authors describe the effects of the performance by the insurer for the benefi t of the assignee bank, as well as some doubts related thereto.