Intermediary law in practice – What are the pitfalls for brokers who terminate insurance contracts?

At this point, attorney-at-law Dr.
Johannes Fiala,https://www.fiala.de, your questions.
You can ask questions by sending an e-mail toott@dhbw-heidenheim.de.

The first pitfall is that the content of the power of attorney is not sufficiently clear, i.e. it does not expressly include the power to terminate the contract. If a missed deadline occurs, the broker may be liable for the (unnecessary)
additional premium or the still incomplete scope of cover.

A second pitfall is to seek contingent cover or terms and conditions differential cover for (old) policies that cannot be terminated in time. The broker must also be aware that contracts that cannot be terminated by contract can nevertheless be terminated by law (without notice), for example if the insurer’s financial position deteriorates significantly:

This then requires, for example, a balance sheet analysis by the insurer.
A third pitfall is not having secured connection coverage prior to termination. The insurance or coverage amount of the customer is occasionally higher than the own VSH. Incidentally, your own VSH will probably not pay a cent if it turns out that the broker had reinsured without a client order. In addition, the insurer can immediately reject the cancellation by the broker if the broker cancels by fax or e-mail, for example, i.e. does not or cannot present an original power of attorney.

Immediately often means (only) within one day.

Link to article:http://www.dhbw-heidenheim.de/uploads/media/nl-1108.pdf

Our office in Munich

You will find our office at Fasolt-Strasse 7 in Munich, very close to Schloss Nymphenburg. Our team consists of highly motivated attorneys who are available for all the needs of our clients. In special cases, our law firm cooperates with selected experts to represent your interests in the best possible way.


About the author

Dr. Johannes Fiala Dr. Johannes Fiala

Dr. Johannes Fiala has been working for more than 25 years as a lawyer and attorney with his own law firm in Munich. He is intensively involved in real estate, financial law, tax and insurance law. The numerous stages of his professional career enable him to provide his clients with comprehensive advice and to act as a lawyer in the event of disputes.
»More about Dr. Johannes Fiala

On these pages, Dr. Fiala provides information on current legal and economic topics as well as on current political changes that are of social and/or corporate relevance.

Arrange your personal appointment with us.

Make an appointment / call back service

You are already receiving legal advice and would like a second opinion? In this case please contact Dr. Fiala directly via the following link.

Obtain a second legal opinion

The first telephone call about your request is free of charge.