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 […]

Unlimited right of withdrawal for life insurance policies – what now?

Current BGH ruling: Insurance customers are entitled to repayment   A hitherto largely unnoticed, recent acknowledgement ruling by the Federal Court of Justice (BGH) of 29.07.2009 (Ref. I ZR 22/07) surprisingly confirms that a life insurance policy with payment of the annual premium during the year in return for an instalment surcharge constitutes a consumer […]

When revocation and/or amendment of a subscription right can fail

The Federal Court of Justice (BGH, ruling of 25.09.2019, ref. IV ZR 99/18) had to deal with the life insurance of a policyholder (VN) who had fallen into a coma in 1993 after an accident. The wife, who was divorced in 1994, was entitled to withdraw her claim. The father of the UN informed the […]

Unlimited right of cancellation for bank loans with legal debt insurance

BGH: Bank. And insurance customers are due billions in reversals   Because of high commissions banks like to sell to loans equal to a residual debt insurance. Until recently, banks believed that loans and insurance were each separate contracts with separate cancellation rights – which was the only way they supposedly properly instructed customers. However, […]

Rights of the consumer vis-à-vis the bank

With the doorstep-selling revocation law, those affected can still part with unprofitable investments years later – and invest in more sensible forms of investment. To invoke the law, investors must prove that they were taken by surprise in what is known as a doorstep situation. This is understood by lawyers to mean an unarranged visit […]

Reversal of dangerous combined transactions: Revocation of credit-financed capital investments

– New ruling of the Federal Court of Justice facilitates the discharge of loan debts – It is part of everyday life at credit institutions to make even larger capital investments possible for the customer by making a large part of the necessary money for an investment available to him as a loan. As a […]

Lawyer for banking law in Munich

Banking law: errors in advice, credit traps and more As a lawyer for banking law, I know that a bank has been part of our daily life since our earliest childhood. Just remember your first savings book, which you probably got at primary school from the nice savings bank advisor next door. We withdraw money, […]

Legal restriction to the surrender value in the event of revocation of life insurance policies is contrary to EU law

– Current ECJ ruling opens up reversal with perpetual cancellation right also for new life insurance policies since 2008 –   The bang of the European Court of Justice (ECJ) The European Court of Justice ruled (ruling of 19 December 2019, ref. C355/18, C-357/18, C-479/18) that a provision in insurance contract law according to which […]

No insurer offers cover for foreseeable burning houses

In its ruling of 4 July 2018, the Federal Court of Justice (BGH, Ref. IV ZR 200/16) ruled „The so-called pre-enforcement clause in § 4 (4) (a) of the German Commercial Code 3 letter a) of the General Conditions for Legal Expenses Insurance (ARB 2008) is not transparent.“, and therefore invalid, § 307 I 2 […]

How direct insurance policies can be seized by creditors and insolvency administrators

The Federal Court of Justice (BGH, ruling of 24.06.2015, file no. IV ZR 411/13) has already decided that the direct insurance policy of a shareholder-managing director can be seized despite an irrevocable subscription right with reservation of revocation until the so-called vesting with the GmbH, even in the event of his termination due to insolvency. […]