Chapter III: Obligations of the insurer and the insured.

Loss and damage caused by fortuitous events or by the fault of the insured shall be borne by the insurer, unless expressly excluded to a limited extent in the policy. However, the insurer is not liable for loss or damage caused by the intentional or wilful misconduct of the insured.

The insured is obliged : 1° To pay the premium or contribution at the agreed times ; 2° To answer accurately the questions asked by the insurer, in particular in the risk declaration form used by the insurer when the contract is concluded, on the circumstances that are likely to lead the insurer to assess the risks it is taking on; 3° To declare, during the term of the contract,…

By way of exception to 2° of article L. 113-2, when the purpose of the insurance contract is to guarantee, in the event of the occurrence of one of the risks defined in the contract, either the total or partial repayment of the amount outstanding under a credit agreement referred to in 1° of article L. 313-1 of the French Consumer Code, or the payment of all or part of…

The premium is payable in cash at the domicile of the insurer or the agent appointed by the insurer for this purpose. However, the premium may be payable at the insured’s domicile or at any other agreed place in the cases and under the conditions set out exhaustively by decree of the Conseil d’Etat. In the event of non-payment of a premium, or a fraction thereof, within ten days of…

In the event of a worsening of the risk during the term of the contract, such that, if the new circumstances had been declared when the contract was taken out or renewed, the insurer would not have taken out the contract or would have done so only at a higher premium, the insurer may either cancel the contract or propose a new premium. In the first case, the cancellation cannot…

A credit insurer who waives cover for receivables held by its insured against one of the latter’s customers, where the customer is located in France, must explain its decision to the insured at the latter’s request.

When the risk materialises or when the contract expires, the insurer must provide the service specified in the contract within the agreed period and cannot be held liable beyond that period.

In the event of the compulsory liquidation of an undertaking referred to in article L. 310-1, the contracts it holds in its portfolio are subject to the provisions of articles L. 326-12 and L. 326-13, from the date of the order or decision withdrawing administrative authorisation.

Independently of the ordinary grounds for nullity, and subject to the provisions of article L. 132-26, the insurance contract is null and void in the event of concealment or intentional misrepresentation on the part of the insured, when this concealment or misrepresentation changes the subject of the risk or reduces the insurer’s opinion of it, even though the risk omitted or misrepresented by the insured had no influence on the…

An omission or misrepresentation on the part of an insured who has not acted in bad faith shall not render the insurance null and void. If it is established before any claim, the insurer has the right either to maintain the contract, subject to an increase in the premium accepted by the insured, or to cancel the contract ten days after notification to the insured by registered letter, refunding the…