Contraction obligation is a technical term particularly relevant within the insurance range. It means that in the context of certain defaults an insurance or an achievement offerer cannot exclude anybody from the conclusion of a contract. Examples of contraction obligation within the insurance range of the German Federal Republic are

• The legal health insurance

Of age, sex or Vorerkrankung is independent a legal health insurance obligates an applicant in accordance with the basic conditions to accept.

• The motor vehicle insurance

A Kfz liability insurance must be issued in principle each applicant after calculation of the risk according to objektivierbaren criteria such as car model, residence etc.

The contraction obligation is from economical view strictly speaking a foreign body in the free-market economy, since it sits down the free play of the forces and the equilibrium of supply and demand, manufacturing in the market, repealed. Contraction obligation is therefore an exception, which steps only in special cases to the place of the normally dominant freedom of contract. Such special cases concern regularly superordinate social or national goals (in the example of the health insurance the goal a sufficient medical supply of the entire population is independent, of the financial efficiency of the particular), which arrange the state to intervene adjusting in the economic system.

See also: Obligation to contract

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