Provisional coverage

As a rule policyholders are interested in receiving insurance coverage at the time of making their application. This interest can be addressed by agreement to provide provisional coverage. Provisional coverage can be understood as being a declaration by the insurance undertaking for the provision of insurance coverage for a limited period of time by means of a legally independent but provisional insurance contract. This provisional contract exists independently of whether a definite contract is concluded as independently of the payment of an initial contribution. Provisional coverage is usually provided if the parties to the contract have reached a basic agreement on the conclusion of the contract, but where individual details regarding the terms of the contract still need to be negotiated. It should be mentioned in this context that the insurer is legally obliged to point out to the policyholder that prior to the conclusion of the contract that no insurance coverage exists unless provisional insurance coverage shall be provided until that point (as a rule when the policyholder receives the certificate contained in the insurance policy). In the event that the insurer fails to comply with the obligation to warn the policyholder, then the sanction for doing so will be the immediate commencement of the risk-taking duty. The statutory risk-taking duty corresponds in form to the contract that has been applied for and begins with the commencement of insurance coverage intended in the application, however, at the earliest with the receipt of the application by the insurer.