Chapter II: Constitution and operating rules

The mutual insurance companies defined in Article L. 322-26-1 and the companies referred to in Article L. 322-26-4 shall operate under the conditions set out in this Section subject to the specific provisions of Sections V, VI and VII of this Chapter.

The surplus income of mutual insurance companies operating in one or more of the classes mentioned in 1 to 18 of Article R. 321-1 is distributed among the members in accordance with the conditions laid down in the articles of association, subject to the provisions of the first paragraph of Article R. 322-73.

Subject to the provisions of articles R. 322-99 and R. 322-158, mutual insurance companies must have a formation fund of at least : -400,000 euros for the operations referred to in Articles 10 to 15, 20, 21, 22, 24 and 25 of Article R. 321-1 and for reinsurance operations; -240,000 for operations in classes other than those listed above.

Mutual insurance companies governed by this section must include in their articles of association and in all contractual or advertising documents relating to insurance or capitalisation the following words printed in uniform characters: “Société d’assurance mutuelle”, or, for the bodies referred to in Article L. 771-1 du code rural et de la pêche maritime: “Caisse d’assurance mutuelle agricole” or “Caisse de réassurance mutuelle agricole” supplemented, where appropriate, by the words:…

The companies referred to in this section may be formed either by a public deed or by a private deed drawn up in duplicate, irrespective of the number of signatories to the deed.

Draft articles of association must 1° state the object, duration, registered office and name of the company and the territorial scope of its operations, determine the method and general conditions under which the commitments between the company and its members are entered into, and specify the classes of insurance covered directly or accepted as reinsurance; 2° Set the minimum number of members, which may not be less than 500; this…

No special benefits may be stipulated for founders in the draft Articles of Association.

The draft Articles of Association may provide for the creation of an additional corporate fund intended to provide the company with the solvency it needs to comply with current regulations. This fund is funded by loans taken out to finance a business improvement plan or a medium or long-term development plan. Member-policyholders may be required to subscribe to loans under the conditions set out in article R. 322-80-1.

The full text of the draft Articles of Association must be reproduced on any document intended to receive memberships.