“Text format” in objection information and improper exercise of a right

After a policyholder had paid insurance premiums for two life insurance policies for three and a half years, she terminated the contracts and demanded reimbursement of the premiums, citing the reason that the contracts had not become effective due to an improper instruction and due to the incompatibility of the policy model with the life insurance guidelines of the European Union. The allegation of improper information, which the claimant said was due to the expression “in text format” not being explained, was dismissed by the Federal Court of Justice. The court said that the expression “in text format“ can be understood by everyone without further explanation and objection information that did not explain this expression in further detail was proper.

Also, according to the Federal Court of Justice the policyholder cannot invoke the fact that the policy model is incompatible with the life assurance guidelines of the European Union. After all, after many years of contract execution, the policyholder cannot in good faith plead the invalidity of the contract due to contradictory exercise of a right and derive from this claims based on unjust enrichment. In particular, the execution of the contract without any objection and the termination notice submitted after three and a half years initially only for the future established confidence in the continuation of the contracts for the past on the part of the insurer, which was evident to the policyholder and worthy of protection. Thus the court held that the question of the compatibility of the policy model with the stated guidelines is not relevant to the judgment.

Moreover, the application of good faith according to the Federal Court of Justice is part of German civil law and can therefore also be taken into account in the case of improper conduct, in harmony with the ECJ case law.