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

In order to ensure that the obligations under the insurance contracts can be met permanently and that rating is risk appropriate, we are entitled annually, and obliged every three years, to review by way of a new calculation of the premiums for existing contracts whether the premiums can be maintained or whether an adjustment (increase or reduction) must be made. We may choose the beginning of the three year period freely. The following rules apply to the review of the premiums:  It is always to be carried out on the basis of a sufficiently large number of separable risks. We also apply the recognised principles of actuarial mathematics and insurance technique.  Insurance contracts that (according to actuarial principles) can be expected to have a similar risk development are grouped into risk groups for the review. German law applies to the contract. The German wording of the conditions alone is binding; this translation is provided for understanding only.  In the review we compare whether the technical bases of calculation for determining the expected claims expenditure have changed: the number of claims observed in the risk groups compared with the number calculated in the technical bases of calculation, and the average claims expenditure per claim. Only changes that have arisen since the last calculation of the premiums may be taken into account here. The allowance for profit may be taken into account; individual premium loadings or discounts are left out of account.  We are in principle entitled to apply an inflation adjustment using a generally recognised index.  A premium adjustment is not made where the change in the insurance benefits is to be regarded as only temporary.  Company internal and cross company data come into consideration as the data basis for the calculation; cross company data are provided among others by the German Actuarial Association (DAV) and the German Insurance Association (GDV). If the review shows a change of at least 5 per cent (the de minimis threshold), we are entitled in the case of an increase, and obliged in the case of a reduction, to adjust the premiums for the existing insurance contracts. If the review establishes a change of less than 5 per cent, no premium adjustment takes place. If the premiums determined for existing insurance contracts are higher than the premiums for contracts to be newly concluded, and the tariffs for existing and for newly concluded contracts contain the same calculation features and the same scope of cover, we may charge for the existing contracts at most the premiums for contracts to be newly concluded. The new premium takes effect at the beginning of the next insurance year. For a premium increase, however, this applies only if we have, in text form (for example email, fax or letter), 1 notified you of the premium increase, pointing out the difference between the old and the new premium, one month before it takes effect, and 2 informed you of your right of cancellation. Where the premium increases, 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 increase takes effect. Otherwise the contract continues with the changed premium.