Section 2: Insurance and bonding of sworn commodity brokers

The guarantee provided for in 3° of Article L. 131-15 may only be granted by one of the credit institutions or finance companies authorised for this purpose or one of the institutions or establishments mentioned in Article L. 518-1 of the Monetary and Financial Code, an insurance company or a mutual guarantee company, authorised to give guarantees. The guarantee is the result of a written agreement which, in addition to…

The guarantor or insurer, as the case may be, shall issue the sworn goods broker with a guarantee or insurance certificate specifying the name of the credit institution with which the account provided for in 1° of article L. 131-15 as well as the number of this account, the amount and duration of the guarantee granted and any restrictions placed on it.

The surety bond or insurance, as the case may be, applies only on proof that the claim is certain, liquid and due and that the guaranteed sworn goods broker is in default. The guarantor or insurer may not assert the benefit of discussion against the creditor. For the guarantor, the default of the guaranteed sworn goods broker results from a summons to pay or to make restitution, followed by a…

The amount of the guarantee granted to a sworn goods broker may not be less than the higher of the following two sums: 1° The average monthly sales figure, including taxes and net of fees, achieved by the sworn goods broker during the previous financial year; 2° Half of the maximum amount of funds held by the sworn goods broker on behalf of third parties at any time during the…

All sworn freight brokers adjust the amount of cover they have taken out each year. They also revise this amount when particular circumstances are likely to modify the extent of the risk.

The insurance of the legal entity covers the civil liability of a director, partner or employee of a sworn goods broker, legal entity, meeting the conditions set out in Articles 1°, 2°, 4° and 5° of Article L. 131-13.

Insurance policies must not provide for an excess payable by the insured of more than 10% of the compensation due, subject to a limit of €8,000 per creditor. The excess is not enforceable against the creditors of a sworn goods broker.