Trustee (insurance)

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There are three special trustees in the insurance industry in Germany :

  • Trustee for the security assets (Section 70 as amended on December 31, 2007 or 128 VAG ub as amended on January 1, 2016)
  • Trustee for condition adjustments (§ 172 or § 178g VVG in the version of December 31, 2007)
  • Trustee for changes to premiums in life or health insurance (Section 172 (1) VVG in the version dated December 31, 2007 or Section 155 VAG in the version dated January 1, 2016)

Trustee for the security assets

To monitor the collateral assets have insurance companies who operate life insurance, substitutive health insurance or private nursing care, according to § 128 of the Insurance Supervision Act (ISA) appoint a trustee and a deputy. For a smaller association according to § 53 VAG this only applies by order of the supervisory authority. The trustee confirms under the balance sheet that the security assets are correctly invested and stored.

The trustee is appointed by the supervisory board . The supervisory authority can request the appointment of another trustee or, if necessary, appoint one itself.

The security assets may only be used with the consent of the trustee. For this purpose, the stocks of the guarantee assets are to be kept under the joint management of the insurance company and the trustee.

Trustee for condition adjustments

Under certain conditions, the contractual conditions in life insurance and private health insurance can be adjusted with the consent of a trustee (“legal trustee”) by way of the so-called trustee procedure.

Life insurance

If a provision of the insurance conditions is ineffective, the insurance company can, with the consent of the trustee in accordance with Section 172 (2) VVG, replace it if an addition is required to continue the contract.

In 2006, the Federal Court of Justice established more detailed requirements on the possibility of changing conditions. In particular, due to a lack of transparency, ineffective conditions of existing contracts may not be replaced by conditions of the same content (despite the fact that the wording is now transparent), since with existing contracts the policyholders can no longer make a conclusion on the possibly now transparent basis.

Health insurance

According to Section 203 (3) VVG, the insurer can, with the consent of a trustee, adapt the insurance conditions and tariff provisions to the changed circumstances in the event of a change in the health care system if this is necessary to safeguard the interests of the insured. This also applies if a provision of the insurance conditions is ineffective and an addition is required to continue the contract.

The trustee must be reliable, independent from the insurance company and have sufficient legal knowledge. The supervisory authority can request the appointment of another trustee or, if necessary, appoint one itself.

Trustee for premium changes

Changes to premiums ( premium adjustments ) in (private) health insurance require the approval of a trustee ("mathematical trustee") in accordance with Section 12b VAG. The trustee checks whether the contribution calculation is in accordance with the existing legal provisions. The use of funds from the provision for premium refunds (RfB) also requires the approval of the trustee. This always applies to the success-dependent RfB, and to the non-success-related RfB, provided that the funds are used in accordance with Section 12a (3) (contribution limit in old age).

The trustee must be reliable and independent of the insurance company and have sufficient knowledge of premium calculation. The supervisory authority can request the appointment of another trustee or, if necessary, appoint one itself.

Any changes in premiums in life insurance are regulated in Section 172 (1) VVG. In accordance with Section 172 (1) of the Insurance Contract Act (VVG), life insurance companies can redefine the contributions with the consent of an independent trustee in the event of an unforeseeable and not only temporary change in the benefit requirement in order to ensure that the insurance benefits can be continuously met. This also applies to provisions on profit sharing . If the changes require the approval of the supervisory authority ( old stock ), the trustee is not involved.