German Federal Supreme Court

30.08.16 / News / Author: Martin
Tags: law, law & taxes

AWT lawyers inform about updates BGH judgment to the surrender value of insurance policies Munich, November 2013: a police prematurely terminated, the insurer can keep half of the savings contributions plus interest, inform the awt lawyers about a current Federal Supreme Court ruling. Upon early termination of insurance may still charge the contract cost and must pay out only about half of the savings and interest. The German Federal Supreme Court decided that (AZ.: IV ZR 17 / 13 and IV ZR 114/13). The awt lawyers that provide more information about the current judgment on their topic page insurance law, know the final costs particularly in the first years especially in the weight. For this reason, a new law was passed as of January 1, 2008 which foresees a distribution for the first five years for the calculation of the buy-back value.

However this applies according to the awt lawyers only for gross policies, where the contract costs in the Insurance premiums are included. The situation is different with net policies where the agreements of the contract costs have been taken separately. Here you can not use lawyers five-year scheme according to the awt. Completion date is decisive for the repurchase value calculation also for contracts concluded by the end of 2007, the new rules will not apply. Yet the old case-law applies here, so the BGH. Two insurance customers on a higher payout according to the new scale of assessment had charged in the case. However, were their insurance from 2004 and were cancelled in 2009. The responsible for the insurance law IV.

civil Senate rejected the lawsuit on the grounds that the law introduced in 2008 was not retrospectively valid and this also could be intended by the legislator. What insurance companies are affected? The decision affects pension and life insurance, between late 2001 and 2007 completed and subsequently terminated or contributions were made, explain that awt attorneys at law of the BGH judgment. The BGH had met previously the same rule for contracts until 2001, which is now the last gap closed. Since commissions average acquisition costs with up to five percent with 20 percent of the amount of contributions for beech, the awt advise lawyers at conclusion of contract necessarily to take a look on the closing costs. Because, as the present case shows, not the guarantee rate is alone decisive. The awt lawyers here provide a summary of the judgment. About the law firm awt lawyers specializing in areas of focus and the development of core competencies in certain disciplines are indispensable in the legal services sector. AWT attorneys at law is a law-oriented law firm and represents several German insurance companies. It has its headquarters in Munich.