Accelerated Brokerage Contract Approaching Rapidly
In a recent court ruling, an insurance broker was found liable for not providing comprehensive advice and failing to disclose important information regarding private health insurance for a trainee civil servant.
The case began when the trainee, who had a pre-existing condition known as Wolff-Parkinson-White syndrome, contacted an insurance broker via the broker's website to inquire about private health insurance. The broker informed the trainee that private health insurance was not possible, a statement that later proved to be incorrect.
Legal expert Kosch, from a Hamburg law firm, stated that the broker's assumption of a brokerage contract and the accompanying comprehensive advisory obligations can be shifted forward if an individual customer consultation with the potential aim of concluding an insurance contract begins. In this case, the court argued that the discussion of the insurance need and inquiries made with insurers about conditions were sufficient to consider it an insurance mediation activity.
The court's ruling also suggests that insurance brokers have a duty to be aware of regulations specific to certain groups, such as civil servants, in the field of private health insurance. Kosch believes that a regulation regarding opening hours for civil servants should be part of the basic knowledge for all insurance intermediaries active in private health insurance.
The trainee accused the insurance broker of not informing about a more favorable option, known as an "opening action," which could have allowed the trainee to take out private health insurance with a surcharge. The broker did not mention this option, and the trainee was able to be taken on by a private provider at a higher premium than through the "opening action."
Kosch stated that the omission of necessary information is equivalent to a materially incorrect statement and advice. The insurance broker was found liable for not providing comprehensive advice in accordance with §§ 60 and 61 VVG (Insurance Contract Act), and for not mentioning the possible opening action.
Interestingly, the insurance broker's information was not legally binding without a written broker mandate. However, the OLG Dresden and the Leipzig Regional Court agreed that there was a legally binding insurance broker agreement based on the telephone contact, request for data, and questions about the applicant's personal situation.
The insurance broker argued that no broker agreement was concluded between them. However, the court's ruling contradicts this claim, stating that the broker's actions and advice during the consultation were sufficient to establish a brokerage contract.
The name of the lawyer from the Hamburg law firm Michaelis who dealt with the insurance broker's case is not explicitly mentioned in the available search results. Regardless, this case serves as a reminder for insurance brokers to provide comprehensive advice and disclose all necessary information to their clients to avoid potential legal consequences.
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