German Federal Supreme Court Confirms

The German Federal Supreme Court (BGH) has confirmed year separate payment arrangements this in Karlsruhe on 6 November concluded with the customer for insurance products. The AFA AG welcomes this decision. Therefore, it is allowed that insurance agents conclude a separate agreement to equalize costs with customers. The AFA AG from Cottbus had brought this decision to obtain legal certainty on the issue of separate payment arrangements, such as, for example, the cost equalization agreement (KAV). The Supreme Court gave law the OLG Naumburg with its decision in favor of such separate payment arrangements in its rejection of the revision, that 2012 fundamentally had taken a position on this issue. The Naumburg judges had at that time already ruled that the conclusion of so-called “net policies” with an independently regulated remuneration between the representative and customer are allowed instead of traditional policies with an internal compensation claim (“gross policies”). By AFA Separate agreements represent AG mediated cost offsets (KAV). In particular the judges of the Oberlandesgericht now confirmed by the Federal Court of Justice pointed out that this net policies model from customer point of view even above all with regard to the cost structure is more transparent.

Also the closing costs for the buyer could be a total lower, because this model of separate agreement the compensation can be calculated lower and risk premiums does not need to be done differently for the case of a premature termination of the insurance as at a gross police. The German Federal Supreme Court follows as a result of the reasoning of the Court and established the groundbreaking ruling also so that a separate remuneration does not exceed the scope of the permission as Versicherungsvertreterin .den “and it indeed in principle is acceptable to make consulting activities of the intermediary to the subject of contractual paid arrangements. The verdict is in particular the customers of AFA AG look forward and confirm in their decision which have elected a market once recognized costs transparent and beneficial model with the separate cost equalization agreement of protection and prevention. About AFA AG General financial and Assekuranzvermittlung (AFA AG), an independent financial sales based in Berlin and Cottbus, and over 20 years of experience successfully on the market is established. The insurance professionals and system business of AFA AG have a Chamber of Commerce degree and are registered in the EU register of brokers. They work in accordance with the EU directive for financial services. Every year the AFA AG provides nationwide 750 free training places available and promotes 250 young entrepreneurs. New office locations are planned in all Germany.