Book III: Companies.

The movable assets allocated to represent the mathematical provisions within the meaning of Title IV of Book III relating to insurance operations against accidents at work are allocated by lien to the payment of the corresponding annuities. This lien takes precedence over the general lien instituted in the first paragraph of article L. 327-2.

The movable assets of French companies subject to State control by virtue of article L. 310-1 are allocated by a general lien to the settlement of their commitments to policyholders and beneficiaries and to the reimbursement by preference of premiums paid by persons who have exercised their right to surrender pursuant to article L. 132-5-1. This lien ranks after 4° of article 2331 of the Civil Code. The same applies…

When the assets of an insurance undertaking are insufficient to meet its regulated commitments, or when the financial situation of the undertaking is such that the interests of policyholders and beneficiaries are likely to be compromised in the near future, the real estate forming part of the undertaking’s assets may be mortgaged at the request of the Autorité de contrôle prudentiel et de résolution. If the company’s authorisation is withdrawn,…

For undertakings carrying out the operations referred to in 1° and the last paragraph of Article L. 310-1, the claim guaranteed by the legal lien or mortgage is set at the amount of the premiums to be reimbursed by preference in the event of surrender of the contract and the mathematical provision referred to in Article L. 343-1 and reduced, where applicable, by policy loans, including interest, and increased, where…

Where a French company has set up guarantees in a foreign country for the benefit of creditors whose rights derive from insurance contracts performed in that country, the preferential right instituted in the first paragraph of article L. 327-2 may not have the effect of placing these creditors in a more favourable situation than that of creditors whose rights derive from contracts performed on the territory of the French Republic.