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

The policyholders’ guarantee fund instituted by article L. 423-1 may not refuse membership to an insurance undertaking referred to in the same article, authorised under the conditions provided for in articles L. 321-1, L. 321-7 or L. 329-1, or to a supplementary occupational pension fund authorised under the conditions provided for in article L. 382-1. Membership of the fund is terminated only in the event of the withdrawal, cessation or…

Insured persons, subscribers to contracts, members and beneficiaries of benefits relating to insurance classes 1, 2, 20 to 26 defined in Article R. 321-1 subscribed with companies that are members of the policyholders’ guarantee fund benefit from this fund. Policyholders, contract subscribers, members and beneficiaries of benefits relating to supplementary professional retirement activities subscribed with supplementary professional retirement funds which are members of the policyholders’ guarantee fund benefit from this…

The college set up under article L. 423-2 is made up of the Director General of the Treasury or his representative, the Chairman of the Autorité de contrôle prudentiel et de résolution and the Chairman of the Supervisory Board of the policyholders’ guarantee fund, or their representatives.

The Autorité de contrôle prudentiel et de résolution may set a different reduction rate for each set of contracts with the same characteristics. All contracts in the same group have the same reduction rate. If the Autorité de contrôle prudentiel et de résolution decides to transfer all or part of the contracts to one or more undertakings, it shall arrange, at the expense of the defaulting undertaking, for the assets…

The transferee company submits to the policyholders’ guarantee fund the request for payment provided for in the first paragraph of article L. 423-3, the amount of which it calculates on the basis of the commitments as at the date of publication in the Journal officiel of the portfolio transfer and the assets accompanying this transfer. Within two months of the date of receipt of this request, the fund, after verifying…

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…