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An Insurance Letter of Intent serves as a crucial preliminary document in complex insurance negotiations under German law. It is typically used when parties need to establish a formal framework for negotiating significant insurance coverage, particularly in cases involving substantial risks or complex insurance arrangements. The document outlines the parties' intentions regarding coverage terms, premiums, and conditions, while maintaining its primarily non-binding nature. Used in accordance with German legal requirements, particularly the Insurance Contract Act (VVG) and Civil Code (BGB), it provides a structured approach to the pre-contractual phase of insurance arrangements. The document typically precedes comprehensive due diligence and helps establish clear expectations regarding the negotiation process, timelines, and key terms to be included in the final insurance contract.

1. Date and Parties: Identification of all parties including full legal names, addresses, and registration details of both the insurer and the potential insured party

2. Purpose Statement: Clear statement that this is a non-binding Letter of Intent regarding potential insurance coverage

3. Subject Matter: Description of the proposed insurance coverage, risks to be covered, and basic terms being considered

4. Key Terms: Outline of principal terms including proposed coverage limits, general premium range, and key conditions

5. Due Diligence: Overview of the information exchange and assessment process required before finalizing any insurance agreement

6. Timeline: Proposed schedule for negotiations, due diligence, and target date for final insurance contract

7. Confidentiality: Basic confidentiality provisions regarding shared information during negotiations

8. Non-Binding Nature: Express statement that the LOI is non-binding except for specific provisions (like confidentiality)

9. Signing Block: Signature lines for authorized representatives of all parties