Book III: Companies

Unions of mutual insurance companies may only distribute surplus income in accordance with the provisions of Articles R. 322-73 and R. 322-74 and, in addition, only after reimbursing the contribution paid, where applicable, by the companies which form part of the union, with a view to constituting the union’s establishment fund.

The reinsurance treaty entered into by a mutual insurance company with a union constituted under the terms of article L. 322-26-3 must specify that the union is jointly and severally liable, vis-à-vis policyholders and third parties, for all the commitments of the mutual insurance company; it must extend to all the operations carried on by the said company and may not be limited to one of the classes of business…

Without prejudice to the nullities provided for in Article R. 322-90, any association of mutual insurance companies formed contrary to the provisions of Article R. 322-109 is null and void. However, neither the association nor the mutual insurance companies may rely on the aforementioned nullities vis-à-vis third parties acting in good faith.

Mutual insurance companies other than those referred to in Sections VI and VII of this Chapter are not required to obtain the administrative authorisation provided for in Article L. 321-1 if the following conditions are met: 1° Before commencing their operations, they have entered into a reinsurance treaty with a mutual insurance association under the conditions defined in Articles R. 322-107 to R. 322-117 ; 2° This treaty fully substitutes…

The articles of association of companies reinsured under the conditions defined in Article R. 322-117-1 must contain a clause providing for the substitution of the mutual union for the reinsured companies and the name of this union. They may provide that rates are set by the union which is substituted for the reinsured companies under the conditions defined in Article R. 322-117-1.

The mutual union which is substituted for the reinsured companies under the conditions defined in Article R. 322-117-1 must inform the Autorité de contrôle prudentiel et de résolution of the conclusion, expiry, termination or amendment of such a treaty no later than two months before the treaty takes effect, its termination, expiry or the planned amendments. The reinsured companies referred to in the first paragraph of Article R. 322-117-1 must,…

Insurance contracts taken out by the reinsured companies referred to in the first paragraph of Article R. 322-117-1 must indicate, in very conspicuous characters, the name and address of the mutual insurance association which is substituted for the reinsured companies in accordance with the provisions of the same article, and mention the formal undertaking by this company to take the place of the reinsured companies. Compliance with the provisions of…

The portfolio transfers referred to in Article L. 324-1 of the Code, relating to companies reinsured under the conditions defined in Article R. 322-117-1, are carried out by the mutual insurance association substituted for the reinsured companies in accordance with the provisions of the same Article, which acts on behalf of the companies for which it is substituted. The portfolio transfer notice and order referred to in Article L. 324-1…

Where a company referred to in this section, previously authorised in accordance with the provisions of Article R. 321-1, enters into a reinsurance treaty and obtains the agreement of the Autorité de contrôle prudentiel et de résolution under the conditions set out in Article R. 322-117-1, the latter shall declare, by decision published in the Journal officiel, that all the authorisations have lapsed.