(1) If the insurer is wholly or partially released from liability to the policyholder, his or her liability towards the third party nevertheless remains.
(2) A circumstance which results in the non-existence or the termination of the insurance agreement is only effective in consideration of the third party one month after the insurer has notified the competent agency of this circumstance. This also applies if the insurance agreement ends on account of time lapsed. The time limit does not commence before the insurance agreement has ended. A circumstance as described in sentences 1 and 2 may also be cited against the third party if, prior to the point in time at which the loss arose, the competent agency had received confirmation of a new insurance taken out based on a relevant law. The above provisions of the present division do not apply if no competent agency has been appointed to receive the notification in accordance with sentence 1.
(3) In the cases described in subsections (1) and (2), the insurer is only liable within the framework of the prescribed minimum sum insured and the risk assumed by him or her. He or she is not obliged to effect payment insofar as the third party may receive compensation for his or her loss from another indemnity insurer, or from a social insurance agency.
(4) If the insurer’s obligation to effect payment in accordance with subsection (1) or (2) coincides with a liability to pay compensation on the basis of a negligent breach of official duty, the liability to pay compensation in accordance with section 839 (1) of the Civil Code is not ruled out in the relationship with the insurer on account of the fact that the preconditions for the insurer’s liability are met. Sentence 1 does not apply if the public official is personally liable in accordance with section 839 of the Civil Code.
(5) Insofar as the insurer satisfies the third party in accordance with subsections (1) to (4), and no case as described in section 116 exists, the third party’s claim against the policyholder is assigned to him or her. The assignment may not be asserted to the detriment of the third party.
(6) Where insolvency proceedings are opened against the assets of the insurer, the insurance agreement does not end, in derogation from section 16, until one month after the insolvency administrator has notified the competent agency of this circumstance; it remains effective against the insolvency estate up until such time. If no competent agency has been appointed to take receipt of the notification in accordance with sentence 1, the insurance agreement ends one month after the policyholder has been notified of the opening of insolvency proceedings; the notification must be made in writing.