QUESTIONS AND ANSWERS

This page contains a list of frequently asked questions from intermediaries and policyholders, together with our replies.

  1. Is the SOVAG company undergoing liquidation?
  2. No, SOVAG is not undergoing liquidation.
    The company has, however, decided to terminate its existing insurance business and is currently examining a number of strategic alternatives.
    That is why SOVAG is currently in the process of terminating its existing contracts. Any contracts that expire will no longer be extended. To a limited degree, insurance cover will be taken over by other insurance companies.
    Obligations arising from existing and ongoing contracts will be fulfilled. The company itself will continue to exist.
  3. Will SOVAG pay out in the event of losses or damage that may arise and will it pay broker's commission?
  4. Yes, all justified claims will be met.
  5. Will my commission agreement be terminated?
  6. Yes, all commission agreements will be terminated or have already been terminated.
  7. What effects will these measures have upon the underwriting authorities granted to underwriting agents?
  8. All underwriting authorities have been withdrawn.
  9. Is SOVAG currently involved in negotiations regarding the sale of its business in force?
  10. SOVAG is in discussion with other insurance companies, in order to transfer its full, outgoing contractual business in force, including any outstanding claims and agreements, to another insurer. Once such a transfer were to take place, all of the rights and duties arising from agreements concluded with SOVAG would be transferred to the receiving insurance company.
  11. Why were my insurance contracts terminated?
  12. All contracts were terminated, without exceptions, as SOVAG intends to discontinue its current business in its entirety.
  13. Can any contractual changes still take place?
  14. Contractual changes that are obligatory by virtue of contractual or statutory requirements will be accepted until the contract expires. Changes not based either on a contractual or a statutory obligation will no longer be accepted. Refusal will be accompanied by an assurance of immediate release.
  15. Will terminations be declared following the occurrence of an insured event?
  16. Yes. SOVAG’s aim is to bring its current business to an end promptly. Contractually agreed termination rights will therefore be utilised.
  17. Why is SOVAG invoking my responsibility towards the customer, in order to bring about a premature termination of the contract? (Intermediary)
  18. At the present time, it has yet to be determined how and with what objective SOVAG will continue to operate. That is why we recommend and support alternative cover being sought with a different insurer prior to termination. That way, the intermediary will continue to be able to provide certainty to the customer.
  19. Will SOVAG support me in obtaining alternative cover prematurely?
  20. Yes, please feel free to approach us if you require support in obtaining alternative cover for your business in force. We will be pleased to provide you with extensive lists of contracts and claims histories for your SOVAG business in force.
  21. If a contract is terminated or alternative cover is found, will the premium be repaid?
  22. Yes, the premium will be repaid on a pro rata basis.
  23. What effect will the measures have on the processing of claims by SOVAG until such time as the cover is transferred to a different insurer?
  24. SOVAG will continue to process claims in an orderly fashion, taking into account all contractual and statutory requirements.