Subsection 8: Mutual insurance companies.

The mutual insurance companies referred to in article L. 322-26-4 are associations which : 1° Guarantee to their members, in return for payment of a variable premium, full settlement of their commitments in the event of realisation of the risks they have assumed; 2° Are regional or professional in nature; 3° Do not remunerate any intermediary for the acquisition of contracts; 4° Do not pay any remuneration to their managers…

Mutual insurance companies are governed by the provisions of Section IV of this Chapter, subject to the exceptions provided for in Articles R. 322-95 to R. 322-106-1.

Mutual insurance companies may not undertake insurance operations other than those mentioned in 1 to 18 of Article R. 321-1, subject to the provisions of Article R. 322-96.

Mutual insurance companies may provide in their articles of association for the possibility of accepting as reinsurance risks of the same nature as those which are the subject of their direct cover, provided that the amount of contributions accepted as reinsurance is limited to one quarter of their direct insurance contributions.

Regional mutual insurance companies must limit their territorial scope to the region of their registered office and to the departments of other regions if they border on the department of the registered office. These companies may only insure risks located in the said area. Professional mutual insurance companies may only group members exercising the same profession or related professions, which must be determined by their articles of association; they may…

Mutual insurance companies must include in their articles of association and in all contractual or advertising documents relating to insurance or capitalisation the following wording, printed in uniform characters: “variable-contribution mutual insurance company”.

The start-up capital of mutual insurance companies, the amount of which is set by the articles of association with no minimum amount required, is made up solely of payments made by members to enable the company to be definitively incorporated.

The sums representing the mutual’s contribution to the establishment of the “unions” provided for in article L. 322-26-3 may be deducted from this fund.

Mutual insurance companies may only be validly constituted if they have at least three hundred members. Exceptions to this rule may be granted by the Autorité de contrôle prudentiel et de résolution to mutual companies whose sole object is marine insurance.

The General Meeting of mutual insurance companies is made up of all members who are up to date with their subscriptions. The Articles of Association may limit the number of proxies that may be entrusted to a single representative. The insertions provided for in articles R. 322-59 and R. 322-86 may be made in a corporate journal by professional companies.