What are the pitfalls for brokers who cancel insurance contracts?

From the series of newsletters of the DHBW (Baden-Wuerttemberg Cooperative State University) Heidenheim on the topic “Mediation Law in Practice”:

At this point, attorney-at-law Dr. Johannes Fiala, https://www.fiala.de, lecturer for insurance law at the

DHBW Heidenheim, your questions. Questions can be asked by emailing ott@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 there is a missed deadline, the broker may be liable for the (unnecessary) additional premium or the continued incomplete coverage.

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 sum of the customer is occasionally higher, as 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 all other respects the insurer may
Immediately reject notice of termination by the broker if the broker gives notice 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.


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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.
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