Fit-and-Proper Test
The fit-and-proper test (reliability check) is a precondition for granting a trade licence to independent insurance intermediaries and is carried out by the competent chamber of commerce or by the insurance company itself.
Legal basis
Under section 34d(2) nos. 1 and 2 of the German Trade Regulation Act (GewO), reliability is a precondition for the trade licence of independent insurance intermediaries. The competent local chamber of commerce is responsible; for intermediaries not requiring their own licence, the appointing insurance company carries out the check on its own responsibility.
Grounds for refusal
An applicant generally lacks the required reliability if convicted within the last five years of a serious crime, certain property offences or an insolvency-related offence, or if living in disorderly financial circumstances. Where unreliability is established, the licence must be refused, and even tied agents may not be offered cooperation.
Practical relevance
The fit-and-proper test is a core building block of consumer protection in insurance distribution and complements the registration and competence requirements for intermediaries set at EU level by the Insurance Distribution Directive.
Legal basis
- EU: Insurance Distribution Directive