The new VVG also contains many traps for the broker.

It is typical for intermediaries to use a rating and/or a software to compare products and conditions and to rely on the results presented therein.

At the same time, the majority of the results obtained in this way are likely to be deceptive:

The 2007 subprime crisis, for example, shows that bankers mistakenly relied on ratings that they did not understand – resulting in triple-digit billions in losses worldwide.

Another example:

An insurance broker recommends with the help of a renowned software a BUZ, with which the insurer waives cancellation according to § 19 VVG (2008), if there is a breach of the duty of disclosure without fault. However, the software (of a rating agency) thus only shows a “half-truth”: The insurer can still – to name just one trap – contest: Thus, the BUZ ceases to apply, without termination.

This is why it is important for intermediaries to read and compare laws and sets of conditions so that they can give correct advice and document to reduce liability. Our recommendation: attend our lecture series (see point 4 below) and follow the advice of those present there.

Dr. Johannes Fiala
Peter A. Schramm

(DHBW Newsletter 02/2008)

Courtesy of www.dhbw-heidenheim.de.