Chapter VII: Legal expenses insurance.

A legal expenses insurance transaction is any transaction consisting, in return for the payment of a pre-agreed premium or contribution, of covering the costs of proceedings or providing services arising from the insurance cover, in the event of a dispute or litigation between the insured and a third party, in particular with a view to defending or representing the insured in civil, criminal, administrative or other proceedings or against a…

Legal expenses insurance is the subject of a separate contract from that drawn up for the other branches or of a separate section of a single policy indicating the contents of the legal expenses insurance and the corresponding premium.

For the purposes of this chapter, a claim is deemed to be a refusal to accept a claim made or received by the insured.

Consultations or procedural acts carried out prior to the declaration of the claim shall not justify forfeiture of cover. Any clause to the contrary is deemed unwritten. However, the insurer will not pay for such consultations or procedures unless the insured can prove that they were requested as a matter of urgency.

The insured must be assisted or represented by a lawyer when he or his insurer is informed that the opposing party is being defended under the same conditions.

All legal expenses insurance contracts explicitly stipulate that the insured is free to choose a lawyer or any other person qualified by the laws or regulations in force to defend, represent or serve the interests of the insured in the circumstances set out in article L. 127-1. The contract also stipulates that the insured is free to choose a lawyer or, if he prefers, a qualified person to assist him,…

The contract stipulates that in the event of disagreement between the insurer and the insured regarding the measures to be taken to settle a dispute, this difficulty may be submitted to the assessment of a third party designated by mutual agreement by the parties or, failing this, by the president of the court ruling on the merits of the case under the accelerated procedure. The costs incurred in exercising this…

In the event of a conflict of interest between the insurer and the insured or of disagreement as to the settlement of the dispute, the legal expenses insurer shall inform the insured of the right referred to in Article L. 127-3 and of the possibility of resorting to the procedure referred to in Article L. 127-4.

The lawyer’s fees are determined between the lawyer and the client, and cannot be agreed with the legal expenses insurer.

The provisions of this chapter do not apply to : 1° to legal expenses insurance when it relates to disputes or risks arising out of or in connection with the use of seagoing ships ; 2° To the activity of a civil liability insurer for the defence or representation of its insured in any judicial or administrative proceedings, when it is carried out at the same time in the interest…