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

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…

The guarantee fund reserves are accepted as components of the solvency margin of member undertakings and supplementary occupational pension funds under the conditions provided for in Articles R. 334-3, R. 334-11, R. 334-17 and R. 385-1, up to the amount of the contribution paid by the undertaking or supplementary occupational pension fund and not used by the guarantee fund. Any association certificates issued under the conditions provided for in Article…

The internal regulations of the policyholders’ guarantee fund determine the conditions under which the fund borrows from its members. Each loan must be repaid within a maximum period of six years from the date on which it was taken out. Each member company’s share of the fund’s borrowings is deducted from its solvency margin.

A provision is set aside in the accounts of the policyholders’ guarantee fund to record the contributions paid by member companies, the financial income generated by these contributions, and all other resources of the fund, after deduction of its management costs. The amount of this provision is invested in : 1° Securities listed on a regulated market for financial instruments in a Member State of the European Union, excluding securities…