French Insurance Code

All income and expenses relating to the intervention of the guarantee fund, in the event of the withdrawal of authorisation of an insurance undertaking covering, on the territory of the French Republic, risks covered by compulsory insurance pursuant to Article L. 242-1, are recorded in a specific section of its accounts entitled “Operations of the guarantee fund resulting from the withdrawal of authorisation from construction insurance companies”. For this accounting…

The operations of the guarantee fund relating to the assumption of responsibility for the losses referred to in article L. 242-1, in the event of the withdrawal of authorisation from an insurance undertaking, are shown on the liabilities side of the balance sheet by the special reserve referred to in II of article L. 421-10-1 and the technical provisions relating to compensation for these losses. The assets side of the…

The special reserve relating to operations resulting from the withdrawal of authorisation of an insurance undertaking covering, on the territory of the French Republic, risks covered by compulsory insurance under Article L. 242-1, referred to in II of Article L. 421-10-1, is called the “special reserve relating to the withdrawal of authorisation of construction insurance undertakings”. An initial allocation of 40 million euros is made to this special reserve. The…

The amount of the contribution to the guarantee fund, provided for in I of article L. 421-10-1, is determined in accordance with the following formula, for an accounting year i : CFi = max [0; T% x (Mi –Pi)] + max [0; (P%xCi) x CAi/CA] Where: 1° For the first part, which is based on the difference between the premiums for the last ten financial years and the technical provisions…

The rates of the contribution to the guarantee fund provided for in I of Article L. 421-10-1 are set as follows: 1° The rate applicable to the difference between the premiums for the last ten financial years and the technical provisions for the last financial year, referred to in 1° of I of Article L. 421-10-1, is set at 5%; 2° The percentage, referred to in 2° of I of…