NBS places the Rapid Life insurance company into receivership

Národná banka Slovenska (NBS) has today, 15 June 2017, placed the insurance company Rapid Life into receivership. The decision was served on the company this morning. NBS has appointed as the receiver JUDr. Irena Sopková.

The receivership order was made after Rapid Life had been repeatedly found to have seriously infringed the rights of its clients. The company was also found to have failed to act in good faith and with due care in meeting clients’ claims arising under insurance contracts. Rapid Life has itself announced that it faces acute liquidity difficulties.

Immediately following her appointment, the receiver decided to transfer Rapid Life’s documents and computer equipment to NBS’s branch in Košice, where a special area has been assigned for the conduct of the receivership.

The main task of the receiver, who has replaced the management board and supervisory board of Rapid Life, is to ascertain as soon as possible the actual state of the company’s liabilities and claims and to swiftly secure its assets. The receiver must also carry out an urgent investigation of suspicious transfers of Rapid Life assets to third parties and, if necessary, take steps to ensure that such assets are returned to the company.

Rapid Life entered into a three-year voluntary winding down process on 1 January 2016 and undertook to complete the process by the end of 2018, stating that its primary objective was to settle its outstanding liabilities to clients. NBS is not satisfied with the company’s progress towards that end. The company has failed to reply to clients’ demands for the settlement of claims arising under insurance contracts, and has failed to settle such claims.

NBS will keep the public and clients of Rapid Life regularly informed about the company’s situation as ascertained by the receiver and to the extent permitted by her duty of confidentiality.

It is important for clients of Rapid Life to know that the receiver has assumed control of the company, and is required to conduct the receivership in accordance with the instructions of NBS. The receiver is not allowed to dispose of any assets of Rapid Life without the prior consent of NBS. By the steps announced today, NBS seeks to prevent any unauthorised attempts to transfer Rapid Life’s assets to third parties or to tamper with its documents.

Národná banka Slovenska