Book I: Contracts

In the event of the alienation of a terrestrial motor vehicle or its trailers or semi-trailers, and only in respect of the vehicle alienated, the insurance contract shall be suspended ipso jure from midnight on the day following the date of alienation; it may be terminated by either party giving ten days’ notice. If the contract is not reinstated by agreement of the parties or terminated by one of them,…

The insurer who has paid the insurance indemnity is subrogated, up to the amount of that indemnity, to the rights and actions of the insured against third parties who, by their act, have caused the loss giving rise to the insurer’s liability. The insurer may be discharged, in whole or in part, from its liability to the insured, when subrogation can no longer be effected in favour of the insurer…

Indemnities due as a result of insurance against fire, hail, livestock mortality or other risks are allocated, without the need for express delegation, to preferential or mortgage creditors, according to their rank. Nevertheless, payments made in good faith prior to opposition are valid. The same applies to compensation due in the event of a claim by the tenant or neighbour, in application of articles 1733 and 1240 of the Civil…

The insured may not surrender the insured items, unless otherwise agreed.

The insurance is void if, at the time of the contract, the insured object has already perished or can no longer be exposed to the risks. The premiums paid must be returned to the insured, after deduction of the costs incurred by the insurer, other than commissions, where the latter have been recovered from the agent or broker. In the case referred to in the first paragraph of this article,…

Any clause in insurance contracts which makes the payment of compensation for damage caused by a natural disaster within the meaning of article L. 125-1 to a built property conditional upon its reconstruction in situ is deemed to be unwritten where the area is subject to a plan for the prevention of foreseeable natural risks.

Except in the case referred to in article L. 121-16, compensation paid in respect of damage caused to an existing building must be used for the actual restoration of that building or the land on which it stands, in a manner compatible with the environment of that building. Any clause to the contrary in insurance contracts is null and void as a matter of public policy. The mayor will issue…