Title II: Guarantee funds

The liquidator shall apply to the policyholders’ guarantee fund for the payment provided for in the second paragraph of article L. 423-3, which it shall calculate on the basis of the commitments as at the date of cessation of the effects of the contracts, determined in accordance with the conditions set out in articles L. 326-12 and L. 326-13. Within two months of the date of receipt of this request,…

All provisions representing rights arising from insurance contracts, bonds or capitalisation contracts, relating to the same policyholder, subscriber or beneficiary of insurance and capitalisation contracts, are reconstituted: 1° In full for benefits due and matured on the date of notification referred to in I of article L. 423-2 ; 2° In full for benefits under class 1 and 2 contracts referred to in article R. 321-1 due and matured between…

As soon as it has been notified in accordance with I of article L. 423-2, the defaulting company shall inform each policyholder, subscriber or beneficiary of benefits of the proceedings in progress. The formalities to be completed by the company transferring the portfolio of contracts in order to benefit from the payment by the guarantee fund of the guarantee provided for in the first paragraph of article L. 423-3 are…

An insured person, a policyholder, a member, a beneficiary of benefits or a transferee company who contests a decision of the guarantee fund for insured persons shall bring the matter before the competent court in the place where he/she is domiciled or has his/her registered office.

For the election of the members of the supervisory board of the policyholders’ guarantee fund, each member company has a number of votes proportional to the share of its contributions in the total amount provided for in the first paragraph of article R. 423-13. At least one third of the members of the Supervisory Board represent public limited insurance companies and at least one third represent mutual insurance companies. The…

The articles of association of the policyholders’ guarantee fund determine the composition of the management board, the term of office of its members, the conditions for their replacement and the procedures for convening and holding meetings of the members of the fund’s governing bodies. Its internal regulations set the conditions for the operation of the fund, for the payment of sums due to policyholders, subscribers or beneficiaries of benefits, or…

The decisions of the policyholders’ guarantee fund are communicated to the Minister for the Economy.

Subject to the provisions of article R. 423-15, the fund must have at its disposal at all times a total amount of resources equal to 0.05% of the total mathematical provisions recorded at 31 December of the previous year for all the undertakings referred to in article L. 423-1. The overall amount is made up by the member companies, after deduction of the fund’s own resources, which include financial income,…

If the policyholders’ guarantee fund intervenes under the conditions provided for in article L. 423-3, it shall first use its available resources, before calling, as necessary, on the guarantee fund reserves provided for in article R. 423-13. If the Fund’s guarantee is called in excess of the total amount provided for in the first paragraph of article R. 423-13, the Fund borrows the sums necessary to protect the rights of…

In the event of intervention by the policyholders’ guarantee fund under the conditions set out in article L. 423-3, companies shall, over the following three years, replenish the sums paid by the fund by an additional payment to the fund equal, for each of these three years, to one third of the available resources used by the fund and, where applicable, by an additional allocation to their guarantee fund reserve…