“How can you transfer inventory as an insurance agent?”
In principle, the stocks of an agency belong to the insurer. Agents would also violate the criminal law protected privacy if they disclose data without prior explicit permission from the data subject. The broker also requires a customer permit in accordance with the Federal Data Protection Act. It is not uncommon for disputes to arise afterwards with the insurer as to who is entitled to the brokerage fee – an assignment can help here. In practice, it is an elegant way to split off or spin off the portfolio of an individual broker in accordance with the German Reorganisation Act (Umwandlungsgesetz) and incorporate it into a limited liability company (GmbH). The GmbH is then the legal successor. The GmbH shares, in turn, can be sold without any problems (share deal instead of asset deal). This arrangement is also often recommended at an earlier stage, for example to regulate succession or to reduce personal liability. It is much more time-consuming and often associated with more liability risks to take over a portfolio and then reassign customers with a new brokerage contract. A good contact with the broker advisor or insurer can make the transfer much easier for the new policyholder.
Dr. Johannes Fiala
(DHBW Newsletter 02/2011, 2)
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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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