Recourse In Insurance Agency Agreements
RECOURSE IN INSURANCE AGENCY AGREEMENTS ACCORDING TO LATEST CASE LAW
The recourse in insurance agency agreements has often been matter of examination by doctrine and case law. In fact, Italian case law has defined the recourse as "the agreement by which the succeeding insurance agent engages himself to pay a compensation to the substituted agent as goodwill. Thus, Judges have ratified definitively the recourse's legitimacy, picking out the element of legality as the goodwill itself.
In a recent decision (Judgement n.16193/2007) the Italian High Court (Corte di Cassazione) pointed out the most difficult problem for the parties, that is to quantify in monetary terms the "recourse", however, without finding any solution.
In its decision the Court explained that when calculating the amount (quantum) it is necessary to take into consideration, as a predominant but not exclusive criterion, the economic value of portfolio management-criterion of the succeeding agent.
Since the Court preferred using general parameters rather than pointing out specific criterions to use for the exact indication of the amount due to the suspended agent, the problem should be resolved by the legislator.
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