If an agent gives up his business to his son because of age, can he pass on his stock to him without further ado?

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. Questions can be asked by emailing ott@dhbw-heidenheim.de.

An agent’s insurance portfolio has always been owned by the insurer.

It would therefore be inadmissible for the son or daughter to act as a broker to “steal the portfolios from the father” (actually the insurer). Such a thing happens again and again, also by son or daughter (with or without assistance of the father) already times with the customers a broker power of attorney “on stock and to the caution” collects.

However, the agent has a claim to compensation for the newly acquired customers (§ 89b HGB) – there is no corresponding regulation for the insurance broker. The transfer of portfolios by agents to a successor, for example the children, can therefore only take place with the agreement of the insurer. Similarly, if an agent wants to change their status to broker. It is always advisable to coordinate this with the insurer so that the cooperation can be continued amicably and constructively – despite the change of status.

Dr. Johannes Fiala

(DHBW Newsletter 05/2009)

Courtesy of www.dhbw-heidenheim.de.

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 phone call is a free get-to-know-you conversation; without consulting. You will learn what we can do for you & what we need from you in terms of information, documents for a qualified consultation.)