French Insurance Code

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…

In insurances where the premium is deducted either on the basis of salaries or on the basis of the number of persons or things covered by the contract, it may be stipulated that, for any error or omission in the declarations used as a basis for fixing the premium, the insured must pay, in addition to the amount of the premium, compensation which may in no case exceed 50% of…

The following are null and void 1° All general clauses forfeiting the right of the insured to claim in the event of a breach of laws or regulations, unless such breach constitutes a crime or an intentional offence; 2° All clauses forfeiting the right of the insured to claim compensation for any delay in notifying the authorities of the claim or in producing documents, without prejudice to the insurer’s right…

The duration of the contract and the conditions of cancellation, in particular the right of the insurer and the insured to cancel the contract every year, are set out in the policy. However, the insured has the right to terminate the contract at the end of a one-year period, by notifying the insurer in accordance with the conditions set out in article L. 113-14 at least two months before the…

Unilateral cancellation by the insurer of an insurance contract covering a natural person outside their professional activity, in the cases provided for in this book or pursuant to the first paragraph of article L. 113-12, must be justified.

Notwithstanding article L. 113-12, where 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 Consumer Code, or the payment of all or part of the instalments on the said loan, the…