OLG Cologne: Double acquisition costs in life insurance not permissible

The Higher Regional Court of Cologne (OLG Köln, judgement of 02.09.2016, file no. 20 U 201/15) forbade a life insurer to charge Riester customers double acquisition costs – once costs with a maximum rate of 2.5 percent (previously 4.0 percent) of the premium volume spread over five years, and in addition further costs over the […]

Deferred compensation with insurance solutions: Employers have double wage costs due to company pension scheme?

The case: Employee loses approx. 90% of his company pension scheme: Anna M. (name changed) had asked her employer to invest part of her salary in a company pension scheme for her (deferred compensation). After € 6,230 had been transferred by the employer to a “company pension scheme” over three years, the employment relationship ended. […]

Employer liable for Zillmerung and must pay double wage costs for the bAV

from the law firm of Dr. Johannes Fiala A recent ruling by the Regional Labor Court (LAG) in Munich confirms that the offsetting of acquisition costs in the first few years – in particular by zillmerization – is not permissible in occupational pension schemes (bAV) with deferred compensation. Such agreements are null and void – […]

What are acquisition brokerage, investment advice, financial portfolio management, financial planning, investment brokerage and prospectus liability?

Investment brokerage: Investment brokerage (also called acquisition brokerage, especially in the insurance sector) is the pure brokering of a third party’s investment (no products created by the client). What is owed is the provision of information and the execution of the mediation, but no advice. The investor has a limited expectation here, because he only […]

Federal Ministry of Finance: Insurance intermediaries secure zero return on life insurance policies

– Why the days of effortless money-making via life insurance are long gone –   Agents’ commissions fall The Life Insurance Reform Act (LVRG) not only lowers the guaranteed interest rate for life insurance policies from 1.75% to only 1.25% from 2015, but also the permitted inclusion of acquisition costs through zillmerisation from 4% to […]

Massive investor losses due to overly safe investments

– Why the Small Investor Protection Act does not protect against investment losses due to low interest rates –   Obligation to provide investor-friendly advice According to the BGH Bond ruling (Federal Court of Justice ruling of 14.06.2007, Ref. XI ZR 12/93), all investment advice must be appropriate to the investor and the property. Investor-oriented […]

European Court of Justice (ECJ): Perpetual right of withdrawal for policyholders

– Redemption risks for insurers, agents and insurance brokers –   The perpetual right to rescind or cancel insurance contracts By judgment of 19.12.2013 (Case C-209/12), the ECJ ruled that a right to withdraw from a life insurance contract is perpetual if the policyholder has not been properly and timely informed of this right. Contrary […]

Liability risks for employers when changing jobs and taking over company pension schemes (bAV)

– Pension capital transfer or change of policyholder – decision between plague and cholera –   In purely statistical terms, the length of service of an employee is just under five years. If the employee has a pension plan, he or she will be able to take it with him or her to the new […]

Reversal of insurance policies for capital & financial investment

Why you should cancel an insurance policy After taking out an insurance policy, there are Insured persons have two options contractual relationship with your insurer to terminate the contract: On the one hand, the contract can be terminated – like any contract- under Compliance with the legal deadlines informal and on the other hand, it […]