Austria: Late Withdrawal from Cash Value Life Insurances

March 2022 – Austria – TAIYO Legal

When cash value life insurance policies are taken out, the insurer has a duty to provide information. In the event of violations, policyholders could still demand a refund years later – usually when the insurance performed poorly. To stop this practice, the law was amended in 2018. Under the new rule, one only got the surrender value after five years from conclusion of the contract. The Supreme Court recently recognized the illegality of the new regulation. This is because the same legal consequences are provided for a withdrawal after five years as for a termination (sec 176 para 1 VersVG). Accordingly, the previous case law remains applicable. The life insurance policy must be rescinded under the law on enrichment. (7Ob185/21p)

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This article is based on publicly available information and given for informational purposes only. It is not intended as legal advice or as a comprehensive analysis of the matters referred to herein.

TAIYO Legal – Dr. Alexander T. Scheuwimmer Rechtsanwalts GmbH

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