Title II: The guarantee fund

All income and expenses relating to the intervention of the guarantee fund, in the event of the withdrawal of authorisation of an insurance undertaking covering, on the territory of the French Republic, risks covered by compulsory insurance of land motor vehicles and their trailers and semi-trailers, are recorded in a specific section of its accounts entitled “Operations of the guarantee fund resulting from the withdrawal of authorisation of motor insurance…

The operations of the guarantee fund relating to the assumption of responsibility for the losses referred to in article L. 211-1, in the event of the withdrawal of authorisation from an insurance undertaking, are shown on the liabilities side of the balance sheet by the special reserve referred to in II of article L. 421-10 and the technical provisions relating to compensation for these losses. The assets side of the…

The special reserve relating to operations resulting from the withdrawal of authorisation of an insurance undertaking providing compulsory insurance cover for motor land vehicles and their trailers and semi-trailers in the territory of the French Republic, referred to in II of Article L. 421-10, is called the “special reserve relating to the withdrawal of authorisation of motor insurance undertakings”. An initial allocation of 80 million euros is made to this…

The percentage of the contribution to the guarantee fund, provided for in I of article L. 421-10, is set at 1% of the total expenses for the last financial year of the “Guarantee fund operations resulting from the withdrawal of authorisation for motor insurance companies” section. The proceeds of this contribution are allocated in full to the profit and loss account of the same section, together with dividends to be…