Paragraph 3: Organisations exempt from administrative approval.

Undertakings which, by virtue of the provisions of this section, are subject to the regulations governing insurance undertakings, are not required to obtain the administrative authorisation provided for in Article L. 321-1 and are exempted from observing the management rules which would normally be applicable to them where, before commencing their operations, they have entered into a reinsurance treaty with a company or fund subject to the provisions of this…

The reinsurer is required to inform the Autorité de contrôle prudentiel et de résolution of the conclusion or termination of such a treaty or of any amendment relating to the clause providing for the substitution of the reinsurer for the reinsured undertaking, two months before the treaty takes effect, or its termination, or the proposed amendments. The reinsured entity must, within the two months preceding the effective date of the…

The subscription of a reinsurance treaty, under the conditions provided for in Article R. 322-132, by an undertaking which has obtained administrative authorisation, has the effect of suspending the validity of that authorisation. In the event of termination of the said treaty or amendment of the clause providing for the substitution of the reinsurer for the reinsured undertaking, the authorisation will not be reinstated and the undertaking concerned may only…

Operations carried out in application of the treaty concluded by the company or fund which replaces the organisation exempted from administrative authorisation are considered to be direct insurance operations for the purposes of the provisions of this code.

Authorised reinsurance undertakings may, on the assets side of the balance sheet, allocate to the representation of the provision for outstanding claims corresponding to the transactions referred to in Article R. 322-135, cash at bank or in hand at the head office, as well as their net receivables from the companies or funds having carried out the cessions giving rise to the said transactions. The amount of these allocations may…

Compliance with the provisions of Article L. 310-8 is the responsibility of the approved reinsurer. Insurance contracts underwritten by organisations exempted from administrative approval must indicate, in very conspicuous characters, the name and address of the approved reinsurer and mention the latter’s formal undertaking to take the place of the direct insurer.

The portfolio transfers referred to in Article L. 324-1 of the Code, relating to the undertakings referred to in Article R. 322-132, are carried out by the company or fund referred to in Article R. 322-132, which acts on behalf of the undertakings for which it is substituted under the conditions set out in Articles R. 322-132 to R. 322-137. In this case, the portfolio transfer notice and order referred…