Portfolio guarantee for intermediaries in the event of sales and pool insolvency: A self-dealing exercise?

What insurance agents and brokers should look out for in terms of self-protection   Service commissions and follow-up commissions may be forfeited upon separation of the agent from the pool or distributor if the distributor is sold or liquidates its holdings, including the insolvency of a broker pool. Insurance agents and brokers are therefore readily […]

Subscription rights of life insurances – special features in the event of death, separation, divorce and insolvency

Many a policyholder decides too late on the possible change in the subscription right of his life insurance policy(ies). It is therefore important to think about the possible consequences at an early stage. The authors pointed out seven specific pitfalls. Red.   If the policyholder instructs his broker to change the subscription right, it is […]

Insolvency application: no obligation

The legislator has restricted the obligation to file for insolvency for all companies in Germany without exception. An alternative to “continuing to operate until insolvency” can be restructuring by means of “structured insolvency”. German companies would be allowed to continue operating over-indebted, without going bankrupt. The relevant statutory provision is § 19 II of the […]

New task for finance departments

Credit risks due to changes in the insolvency code The Financial Market Stabilisation Act (Finanzmarktstabilisierungsgesetz – FMSTG) eliminated the equity capital requirements for companies that had previously been customary: At its core, this relates to the amendment of the provision of section 19 II of the Insolvency Code (InsO), according to which over-indebtedness now only […]