Current cases where we are representing insurance companies

Is a short options position speculative trading? – Warding off a coverage claim for the legal protection insurer

In the insurer's General Terms of Legal Protection Insurance, betting, gambling and other speculative trading is forbidden. In literature and legislation, there is more or less a consensus that disputes related to buying shares are covered by legal protection insurance, but not those related to subscription warrants.

The insurance holder traded short options, thus formed the counterpart of the options buyer. He was of the opinion that he could be regarded as an equity trader. The insurer is of the opinion (also held by us) that it involves speculative trading, which is related to option trading.

The coverage claim is still pending at court.

Obligation to co-ordinate: measures triggering costs under legal protection insurance

A lawyer obtained an out-of-court confirmation of cover for his client from the legal protection insurance company. They pointed out to the lawyer and the insurance holder that measures, which could trigger further costs, especially a claim was to be agreed upon with them in advance. Yet, the lawyer lodged a claim for the client without consulting them. He then lost.

By means of a legal assessment for the insurer, it was to be clarified whether the client/insuree can assert a claim for damages against the lawyer or whether the insurer is obliged to pay in spite of the breach of obligation.

Warding off unjustified coverage claims in the field of closed-end real estate funds.

Due to the so-called "junk property cases", rising costs are steamrolling legal protection insurers. In many cases, the insurer is obliged to pay and recognizes this without any further ado.

Besides that, there are cases of doubt, for example, when funds were raised in a closed-end real estate funds to finance a new building project. For this purpose, the Federal Court of Justice decided that under certain circumstances, no cover is to be granted (compare: Federal Court of Justice (BGH IV ZR 170/03). We were able to ward off many unjustified coverage claims in this context.

Repayment of a premium loan

It happens time and again that financially weak insurees borrow on their life insurance. Normally, this is unproblematic and possible until the financial difficulties become so great that the premium can no longer be paid. That is when the "race against the creditors" starts, during which we are happy to represent the insurer and have successfully done so up to now.

And what case can we handle for you?

Contact ALEGOS
now and describe your legal problem.