Insurance, Austria updates

Court considers insurer's awareness of substantial risk
  • Austria
  • 02 October 2012

In a recent decision the Supreme Court found that an insurer's awareness of a substantial risk - and its omission to enlighten the insured about this issue - might be taken into account not only in the context of damages claims, but also when interpreting the contractual provision in question. The court ruled that all knowledge of an insurance agent must be directly attributed to the insurer.

Second-hand insurance policies: investment advisers' duty to inform applies
  • Austria
  • 26 June 2012

The good conduct rules that apply to investment advisers in Austria also apply to brokers selling insurance policies which are similar to investment products. A recent Supreme Court decision dealt with the brokerage of second-hand life insurance policies – the investors had complained that the insurance broker had failed to notify them adequately of all the risks involved.

Impact of new insolvency law on the insurance industry
  • Austria
  • 20 March 2012

Following the recent economic crisis, the need arose to make it easier for insolvent companies to continue their business through restructuring. This objective was achieved through a reform to the Insolvency Law 2010. It has been market standard to include 'insolvency clauses' in financial lines insurance policies in particular. From the point of view of the act, such insolvency clauses are now ineffective.

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