Is it permissible for a broker to alternatively offer advice for a fee and for commission – and to do so by form?

From the series of newsletters of the DHBW (Baden-Wuerttemberg Cooperative State University) Heidenheim on the topic “Mediation Law in Practice”: At this point, lawyer Dr. Johannes Fiala, https://www.fiala.de, lecturer for insurance law at the DHBW Heidenheim, will answer your questions, Your questions. Questions can be asked by emailing ott@dhbw-heidenheim.de. There is a duty to advise […]

Illegal personnel consulting: Expert fee-based consulting with hidden commission

– BGH ruling: Liability of management consultants in occupational pension schemes – – OLG Munich judgment: Financial firms liable for kick-backs to tax advisors – Remuneration issue: fee at the front – commission at the back A current letter from the Federal Ministry of Justice points out to the state judicial administrations that a license […]

Goodbye brokerage fees and commissions

On 27 April 2007, the Federal Ministry of Justice presented the draft of the “Ordinance on Information Duties in Insurance Contracts”. For the intermediary, this means that he must disclose his remuneration. Insurance intermediaries will soon have to show their success fee in euros and cents before the contract is concluded – initially for life, […]

Federal Supreme Court prohibits insurance consultants from charging contingency fees for changing tariffs in private health insurance

– How the insurance consultant with a second job may do exactly this and more nevertheless –   Insurance brokers as well as insurance consultants are allowed to offer policyholders (VN) in private health insurance (PKV) at the change of tariff according to the new tariff. § Section 204 of the German Insurance Contract Act […]

When the passing on of commission, material and services are prohibited special benefits

The Administrative Court of Frankfurt/Main (VG Ffm, Az. 7 L 3307/18.F) decided in its decision of 28.09.2018 – completely in line with the Federal Financial Supervisory Authority (BaFin) – that even regular payments by an intermediary (VM) to the policyholder (VN) declared as a reduction in premiums are prohibited as a commission fee, § 48b […]

Commission-free net policies: The additional remuneration agreement can be revoked

The German Federal Supreme Court (BGH, ruling of 12 December 2013, file no. III ZR 124/13) decided that not only a broker but also an insurance agent can be promised a remuneration by his customer for brokering a life insurance policy with a net policy. Capital investors and medium-sized companies are increasingly taking advantage of […]

IDD: Feeding prohibited – Discounts according to landlord type

The IDD change in the law enables the granting of discounts for insurance and sales control according to the type of landlord. Dr. Johannes Fiala and Dipl.-Math. Peter A. Schramm explain why brokers must obviously be controlled by insurers.   According to the “Draft Law on the Implementation of Directive (EU) 2016/97 of the European […]

Lawyer explains IDD law: Commission discounts are still possible

The draft for the IDD Implementation Act is causing a great stir in the insurance industry due to the still existing ban on commissions. Lawyer Johannes Fiala and actuary Peter Schramm have examined the draft and show that the ban is not dead. The legislator would like to strengthen fee-based advice as part of the […]

Expert advice: Do brokers risk their commission through fringe benefits?

In the third part of their exclusive article for FONDS professionell ONLINE on additional services provided by brokers, attorney Johannes Fiala and actuary Peter Schramm deal with the question of what consequences additional services can have for the brokerage fee. There is more than just a legal question mark behind various additional services that brokers […]