The version of the Future Financing Act dated December 11, 2023 has become even stricter. While the majority of the Act is already applicable law, the provisions of Articles 2 No. 2, 32 and 33 do not come into force until January 01, 2025. And this transitional period is necessary, as Article 2 No. 2 and Article 32 No. 2 prohibit the currently common practice of the simultaneous conclusion of a general consumer loan agreement and a residual debt insurance contract.

Section 7a (5) VVG and Section 492a BGB are revised for this purpose.

The insurer may only conclude a residual debt insurance contract that relates to a general consumer loan agreement if the policyholder has submitted the contractual declaration no earlier than one week after the conclusion of the general consumer loan agreement. In the event of a breach of this obligation, the insurance contract shall be null and void.

Even if the legal conformity of this seven-day “cooling-off phase” is a matter of dispute among experts, insurers, banks, loan and insurance brokers will not be able to avoid adapting their contracts and processes in preparation.

The BKR team at WR Legal will be happy to assist you.