French Insurance Code

The associations of mutual insurance companies referred to in Article L. 322-26-3 are governed by the provisions of Section IV of this Chapter, with the exception of Articles R. 322-93 to R. 322-106-1, and by this Section.

Associations of mutual insurance companies are only validly constituted if they have at least four member companies.

The articles of association of the association must provide that : 1° The members of the board of directors or the supervisory board of the association must be chosen from among the managers, directors or members of the supervisory board of the companies belonging to the association; 2° General meetings are composed of all the companies belonging to the association, each represented exclusively by one of its managers, directors or…

The association is responsible, on behalf of and in the place of the reinsured mutual insurance company, for making the various disclosures to the Autorité de contrôle prudentiel et de résolution required by Articles L. 310-8 and R. 310-6-1, to keep at its head office the accounting books, registers or files provided for in Title IV of this Book, to make available to the supervisory authorities all documents required for…

The application for authorisation of a mutual insurance company may be drawn up and filed by the association with which the founders of the company intend to enter into a reinsurance treaty under the conditions laid down in Article R. 322-116.

Insurance policies issued by mutual insurance companies reinsured with a union must contain, in clearly visible characters, the name and address of the union and reproduce the clause in the reinsurance treaty by which the union declares that it will in all cases jointly and severally guarantee the commitments of the mutual insurance company. The general terms and conditions of these policies must be submitted by the association to the…

Unions of mutual insurance companies may only distribute surplus income in accordance with the provisions of Articles R. 322-73 and R. 322-74 and, in addition, only after reimbursing the contribution paid, where applicable, by the companies which form part of the union, with a view to constituting the union’s establishment fund.

The reinsurance treaty entered into by a mutual insurance company with a union constituted under the terms of article L. 322-26-3 must specify that the union is jointly and severally liable, vis-à-vis policyholders and third parties, for all the commitments of the mutual insurance company; it must extend to all the operations carried on by the said company and may not be limited to one of the classes of business…

Without prejudice to the nullities provided for in Article R. 322-90, any association of mutual insurance companies formed contrary to the provisions of Article R. 322-109 is null and void. However, neither the association nor the mutual insurance companies may rely on the aforementioned nullities vis-à-vis third parties acting in good faith.

Mutual insurance companies other than those referred to in Sections VI and VII of this Chapter are not required to obtain the administrative authorisation provided for in Article L. 321-1 if the following conditions are met: 1° Before commencing their operations, they have entered into a reinsurance treaty with a mutual insurance association under the conditions defined in Articles R. 322-107 to R. 322-117 ; 2° This treaty fully substitutes…