Chapter III: The guarantee fund for policyholders against the failure of life and health insurance companies.

Undertakings authorised in France and subject to State supervision pursuant to article L. 310-1, with the exception of those authorised for the operations referred to in 3° of the same article, as well as supplementary professional pension funds, are members of a guarantee fund designed to protect the rights of their policyholders, and of the subscribers and beneficiaries of their life insurance and capitalisation contracts covering personal injury, or those…

I.-When the Autorité de contrôle prudentiel et de résolution takes the protective measure provided for in 14° of I of Article L. 612-33 of the Monetary and Financial Code in respect of a person referred to in the first paragraph of Article L. 423-1 of this Code, it shall have recourse to the guarantee fund governed by this chapter, after consulting the chairman of the management board of this fund…

In the event of a portfolio transfer, any part of the rights of policyholders, contract holders, members and beneficiaries of benefits not covered by the transferee is guaranteed within the limits set by decree by the Conseil d’Etat by a payment from the guarantee fund to the transferee. If the portfolio transfer procedure is unsuccessful or if the Autorité de contrôle prudentiel et de résolution has taken a decision leading…

The guarantee fund is a legal entity under private law. It is managed by a Management Board acting under the supervision of a Supervisory Board. The members of the Management Board and the Supervisory Board must meet the conditions set out in article L. 322-2. The Supervisory Board exercises ongoing control over the management of the guarantee fund. It draws up the articles of association and internal regulations of the…

The guarantee fund is subrogated to the rights of policyholders, subscribers and beneficiaries of benefits, up to the amount of the sums it has paid. The guarantee fund is also subrogated, within the same limits, to the rights of the defaulting company or the defaulting supplementary occupational pension fund, up to the amount of sums due by virtue of the execution of current reinsurance treaties. The guarantee fund may bring…

The members of the Management Board and the Supervisory Board of the guarantee fund, as well as any person who by virtue of their duties has access to documents and information held by the guarantee fund, are bound by professional secrecy under the conditions and subject to the penalties set out in article 226-13 of the French Criminal Code. This secrecy may not be invoked against the judicial authorities acting…

The members of the guarantee fund provide it with the financial resources it needs to carry out its tasks, in accordance with the conditions laid down by decree in the Conseil d’Etat. The guarantee fund may also issue non-negotiable certificates of association in the name of the members, which they subscribe to when they join. When the losses incurred by the guarantee fund cannot be covered by the contributions already…

A decree in the Conseil d’Etat will specify : – the conditions and ceilings for compensation per policyholder, subscriber, member or beneficiary, the procedures and deadlines for compensation as well as the rules relating to customer information ; – the procedures for defining reduction rates in the event of a portfolio transfer from the defaulting company or the defaulting supplementary occupational pension fund; – the characteristics of the certificates of…