Pass-through requirement

(1) As soon as the insurance adviser informs the insurance undertaking, under section 34d(2), sixth sentence, of the Trade Regulation Act, that he or she has mediated to the policyholder an insurance policy containing benefits that do not accrue to the insurance contract (gross tariff), the insurance undertaking is obliged to pay out that benefit to the policyholder without delay. The pay-out must be made by way of a credit to a premium account maintained for the policyholder for the contract. The credit amounts to no more than 80 percent of the relevant benefit, up to the equivalent of 80 percent of the premiums payable in the first five years after conclusion of the contract. The balance of the premium account must be used exclusively to satisfy the policyholder's obligation to pay premiums, and 80 percent of it must be offset against the premium payable for the respective insurance period. Departing from the second to fourth sentences, the pay-out may also be made by way of a reduction of the premium under the intermediated contract, in accordance with section 48b(4). The first to fifth sentences apply correspondingly where, in the case of advice within the meaning of section 34d(2), second sentence, point 1, of the Trade Regulation Act, the policyholder presents to the insurance undertaking, before conclusion of the contract, a certificate of advice on the insurance to be issued by the insurance adviser. The certificate must state the date of the advice. No more than six months may have elapsed between the date of the advice and the date of the application to conclude the insurance contract.
(2) The insurance undertaking must document the pay-out of the benefit in an appropriate manner and inform the policyholder of the pay-out, in the case of subsection (1), second sentence, by transmitting a statement of the premium account at least annually until its balance has been extinguished in accordance with subsection (1), fourth sentence.
(3) Benefits within the meaning of this provision are the costs of insurance mediation, in particular commissions, fees, or other monetary payments, as well as all benefits with a monetary value, irrespective of when they fall due. The benefits are to be estimated with the diligence of a prudent businessperson. Insofar as statutory provisions contain calculation requirements for taking into account distribution costs within an insurance product, these may be used as the basis, departing from the first and second sentences.