The repurchase value is the legal name ("§ 176 of the insurance contract law (VVG) Germany and Austria, kind 91 VVG Switzerland) for the amount, which a life insurer pays with premature notice, resignation or contestation (buy-back) of a contract over a life insurance to the insurant.

Meaning of the term

With buy-back the insurer "“buys"” those the insurant to contractually promised right "“back"” (see kind 90 VVG Switzerland). Therefore the repurchase value is to correspond to the value of these rights, less in the future still contributions which can be paid from the insurant to the receipt of these rights. Thus legally a notice remuneration is to be carried out during premature contract completion, which refers exclusively to the future mutual requirements from the contract. The repurchase value is not based on in the past the paid contributions. Therefore the repurchase value, depending upon value of the future rights from the contract in relation to that in the future for it contributions still which can be paid, is in particular initially clearly under the sum of the contributions paid up to the notice. This is justified in the fact that the contributions are not only a price for the actual achievement to the insurant, but like each price otherwise also margins for profit and above all operating expenditures contain (prescribed for the price calculation of life insurers after "§ 11 exp. 1 VAG legally). Therefore the value that is in the future smaller to furnishing achievements from each contract initially, than the price raised for it. With each business the sales of the acquiring leads briefly after transacting the business to clear losses, e.g. if one sells a new vehicle briefly after purchase again. Therefore the premature notice of a life insurance contract taking place after legal default with payment of a repurchase value is unfavorable, since the repurchase value is initially lower according to the legal definition than the sum of the contributions paid so far. However the insurer carried out up to then also for insurance protection, i.e. for all deceased very high achievements insured furnished compared with the contributions, for which he uses parts of the contributions of all according to the insurance principle.

Initially increased repurchase values

With contracts after the AVmG and after the accumulation of assets law, as well as contracts were locked 1994 ago, are and/or were in Germany initially higher repurchase values to be agreed upon. Such increased repurchase values may be legally prescribed since the introduction of the European Union domestic market for insurance in the year 1994 however only for the achievement of a special promotion. The German legislator may make defaults due to the European Union guidelines only limited for the arrangement insurance contracts. In this sense the EFTA Court of Justice forbade 2005 Norway the legal default of initially increased repurchase values. Initially increased repurchase values can be achieved in the future in the European Union only by free agreement in the contract or obligating only after a change of the European Union regulations.

Although initially increased repurchase values increase the flexibility of the insurants clearly, they have a substantial disadvantage due to the today's legal situation for all insurants. As far as a contract plans one contractually or legally determined repurchase value, which lies over the covering resetting determined according to according to commercial law defaults, the covering resetting is on this amount to raise ("§ 25 exp. 2 RechVersV in conversion of an obligatory European Union-legal default).

This regulation has in connection with "§ 66 of the law of supervision of insurance (VAG) as a consequence that an insurer must reproach at any time so many investments that it can satisfy all requirements thereby in the very unrealistic scenario of the notice of all insurants. Therefore insurers are very to agree upon repurchase values which lie over the covering resetting otherwise which can be set. Although those have relatively few promptly notices altogether only a small advantage of these increased repurchase values, the obligation means to form the additional resetting for the entire existence and place for it investments, substantial financing expenses, which stand in no relation to the advantage promptly of the notices. These financing expenses go debited to the achievements altogether all insurant, since they are put down naturally on the prices. Expressly for this reason the BGH in its judgement planned of repurchase values in the year 2005 despite missing contractual regulation of the repurchase value a judicial contract addition only to the extent of a division of the amount of difference between a reimbursement and the originally planned repurchase value. Insurers hesitate thus not therefore to pay increased repurchase values because they do not the notice the amounts, to protect but because it forces these increased repurchase values punishing law situation it to it, in order the interests of all insurants.

Reimbursement in contrast to the repurchase value

Notice remuneration, which are based on in the past the paid contributions, are called "“reimbursement"”. Legally however the payment of a repurchase value, a reimbursement is not intended. Thus the competent citizens not legally from the responsibility, which they took with their conclusion of a contract dismiss, but are economically exactly the same placed with notice, as they would have confessed themselves with fulfilment of the contract.

Agreement of the repurchase value

The repurchase value is normally agreed upon by explicit agreement of each buy-back value to each last date for giving notice in the contract (repurchase value table, warrented value table). The contractually agreed upon repurchase value may not be lower than the legal minimum repurchase value ("§ 91 exp. of 3 "“appropriate"” repurchase values under the supervision of the supervisory authority require 176 exp. 3 VVG Germany and Austria, the VVG Switzerland in kind). In rare cases not for each year a concrete repurchase value is agreed upon, but directly the legal minimum repurchase value. The legal minimum repurchase value, which is based on the current value of the contract, is to be determined then at each last date for giving notice according to the of the contract existing then. After law the current value may be decreased for the determination of the legal minimum repurchase value still by an appropriate departure, if this is agreed upon. Over the legal minimum repurchase value lying concretely agreed upon repurchase values can be agreed upon freely; to that extent it whether still another departure is here insignificant is agreed upon here or not, as long as the arising repurchase value is not under the legal minimum repurchase value.

Zillmerung and repurchase value

Because of the agreement of the repurchase values in form of a table or as current value the repurchase value is not today in Germany agreed upon as a value determining by Zillmerung. Until 1994 it was legally prescribed that the repurchase values had to correspond to the covering resetting given in the business plan after according to commercial law principles. The covering resetting was usually determined due to according to commercial law obligations by Zillmerung. Since change of the VVG and the VAG in the year 1994 however repurchase values have nothing more with the according to commercial law procedures, also not with the Zillmerung to do but are contractually independently agreed upon. Falsely however still of "“gezillmerten repurchase values"” one speaks. In particular becomes the legal minimum repurchase value, which determines current value, not by Zillmerung. It is however the principle of the repurchase value (in contrast to the reimbursement) that this than the sum of the contributions is initially smaller.

Accounting of conclusion expenditures

Since repurchase values excluding future rights and obligations from the contract to consider and with conclusion of a contract finally are besides mostly specified, actually resulted conclusion expenditures cannot become "“taken into account"” with the repurchase values considered or. The repurchase value is like that, as it is agreed upon between insurers and insurants, without it comes here to any "“charges"” or "“accountings"”. The relevant misunderstanding in the public discussion been based on it that the principle of the buy-back is confounded with that the reimbursement, with which if necessary from that sum of the contributions still initial conclusion expenditures made which can be paid back so far it could be taken off.

Articles in category "Repurchase value"

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