B-6 Premium adjustment and right of cancellation after a premium adjustment, Watercraft Liability Insurance, Basis

6.1 The insurance premiums are subject to premium adjustment. It takes effect from the beginning of the insurance year that begins on or after 1 July. So far as premiums are calculated by payroll, construction or turnover totals, no premium adjustment takes place. Minimum premiums are subject to premium adjustment irrespective of the method of premium calculation.

6.2 An independent trustee determines annually, with effect for the premiums of the insurance years beginning on 1 July, the percentage by which the average of the claims payments of all insurers licensed to write general liability insurance rose or fell in the past calendar year compared with the year before that. The trustee rounds the percentage determined down to the next lower whole number divisible by five. Claims payments also include the expenditure occasioned specifically by the individual claim for determining the basis and amount of the insurance benefits. The average of the claims payments of a calendar year is the total of the claims payments made in that year divided by the number of claims newly notified in the same period. German law applies to the contract. The German wording of the conditions alone is binding; this translation is provided for understanding only.

6.3 In the case of an increase we are entitled, and in the case of a reduction we are obliged, to change the subsequent premiums by the percentage resulting from B-6.2 (premium adjustment). The changed subsequent premium is notified to you with the premium invoice. Where the average of our claims payments has risen in each of the last five calendar years by a lower percentage than the one determined by the trustee for those years under B-6.2, we may increase the subsequent premiums only by the percentage by which the average of our claims payments rose according to our own company figures in the last calendar year. That increase may not exceed the one that would result under the preceding paragraph.

6.4 If the change under B-6.2 or B-6.3 is below five per cent, no premium adjustment takes place. That change is, however, to be taken into account in the following years.

6.5 If the premium increases as a result of the premium adjustment under B-6.3 without the scope of cover changing, you may cancel the insurance contract within one month of receiving our notification with immediate effect, but at the earliest as at the point at which the premium increase was to take effect. We must draw your attention to the right of cancellation in the notification. The notification must reach you at the latest one month before the premium increase takes effect. An increase in insurance tax does not give rise to a right of cancellation.

6.6 Provisions B-6.1 to B-6.5 do not apply to financial loss liability insurance.