THE RIGHT TO WITHDRAW FROM A LIFE INSURANCE CONTRACT

Abstract

In the last few decades the consumer acquis has had a significant impact on all branches of law, including insurance law. Certain autonomous solutions to the directives in the field of consumer law have also moved into contractual insurance law, such as duty to inform, counsel and the right of withdrawal. The right of withdrawal is a mechanism to protect consumers from hasty and reckless decisions because it allows informed choice after the contract has been concluded. For this purpose it has been accepted for the first time in the Second Life Insurance Directive, and is also contained in the Solvency II Directive. Life insurance contracts are legally complex financial products and can involve significant long-term financial obligations, therefore the right to withdraw is justified by the position of the life insurance policyholder as a weaker party. This paper presents the right of withdrawal in the Solvency II Directive and the judgments of the Court of Justice of the EU. Finally, the authors critically analyze the right of withdrawal in Croatian and Bosnian insurance law.