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Returning a life insurance policy in the event of an objection: What policyholders need to know
According to a report from www.haufe.de, the Cologne Higher Regional Court has decided that a life insurance company must repay the premiums paid due to unjust enrichment in the event of a successful objection to the contract. This concerns a specific lawsuit brought by a woman who had taken out a unit-linked life insurance policy and declared her objection after making a few payments. The court ruled that a policyholder can claim back the premiums paid after a successful objection, but a reasonable balance and a fair distribution of risk must be established between the parties. The insurance company may make deductions for risk protection provided, but may not deduct acquisition and administration costs. From the perspective of an economic expert, this...
Returning a life insurance policy in the event of an objection: What policyholders need to know
According to a report by www.haufe.de, the Cologne Higher Regional Court has decided that a life insurance company must repay the premiums paid due to unjust enrichment in the event of a successful objection to the contract. This concerns a specific lawsuit brought by a woman who had taken out a unit-linked life insurance policy and declared her objection after making a few payments.
The court ruled that a policyholder can claim back the premiums paid after a successful objection, but a reasonable balance and a fair distribution of risk must be established between the parties. The insurance company may make deductions for risk protection provided, but may not deduct acquisition and administration costs.
From an economist's perspective, this decision has potentially far-reaching implications for the insurance industry. On the one hand, this could lead to policyholders increasingly making use of their right to object in order to demand refunds of premiums. This could lead to financial burdens for insurance companies. In addition, a tense situation could arise between insurance companies and customers when it comes to the specific calculation of the repayment amounts.
It could also lead to increased awareness among policyholders regarding their contractual terms and conditions, as a good knowledge of their rights and obligations in the event of a contradiction is essential.
Overall, the decision of the Cologne Higher Regional Court could lead to increased uncertainty and increased legal awareness with regard to life insurance contracts. This could pose new challenges for both customers and insurance companies.
Read the source article at www.haufe.de