(Act n°. 94-679 of 8 August 1994, Article 4, I,
Official Journal of 10 August 1994 in force on 1 January 1995)
(Act n°. 98-261 of 6 April 1998, Article 8, I,
Official Journal of 7 April 1998)
(Act n°. 2001-420 of
(Order n°. 2001-766 of
The firms referred to in Article L310-1 must at all times respect the solvency
margin in accordance with the terms defined by decree in Conseil d’Etat.
Article L334-2
(inserted by Order n°. 2001-766 of
For application of the law and regulations applicable to the solvency of firms:
1 The expression “parent firm” means a firm that exclusively controls a firm
within the meaning of paragraph II of Article L233-16 of the Commercial Code or
that exercises a dominant influence over a firm by reason of the existence of
substantial long term solidarity links as a result of financial undertakings,
corporate directors or common services. Said second firm is referred to as the
“subsidiary firm”. Any subsidiary firm of a subsidiary firm shall be deemed to
be a subsidiary of the parent firm.
2 The expression “holding” means the act of directly or indirectly owning 20%
or more of the voting rights or capital of a firm.
3 The expression “holding firm” means a parent firm or a firm that owns a
holding in a firm.
4 The expression “subsidiary firm” means any affiliated or holding firm or a
firm affiliated to holding firms of the insurance firm.
5 The expression “related firm” means any affiliated
or holding firm or a firm affiliated to holding firm of the insurance firm.
6 The expression “insurance group” means a group
formed of:
a) at least two firms subject to State control pursuant to Article L310-1 and
having its registered office in
b) or, on the other hand, at last one firm subject to
State control pursuant to Article L310-1 and having its registered office in
France and, on the other hand, a group insurance company, a firm subject to
State control pursuant to Article L310-1-1, a provident institution or a union
governed by title III of chapter IX of the French Social Security Code, a
mutual or union governed by chapter II of the French Mutual Insurance Code or
an insurance or reinsurance firm whose registered office is located outside
France.
The entities referred to in a and b must be connected by one of the links
defined in paragraph 1 to 5 above.
Article L334-3
(inserted by Order n°. 2001-766 of
The financial situation of firms subject to State control pursuant to Article
L310-1, having their registered office in
Firms subject to State control pursuant to Article L310-1, having their
registered office in
The additional supervision shall take account of firms related to the aforementioned
firms. The insurance regulatory commission may decide not to subject a related
firm to additional supervision if it considers that said firm’s interest is
negligible or contrary to the objectives of said supervision.
A decree in Conseil d’Etat defines the terms of application of this Article.
Title IV
Accounting and statistics provisions
Article L341-1
(Act n°. 89-1014 of 31 December 1989, Article
46, Official Journal of 3 January 1990 in force on 1 July 1990)
(inserted by Act n°. 94-5 of
A decree in Conseil d’Etat defines the terms in which the provisions of this
chapter shall apply to firms underwriting the transactions referred to in
paragraphs 1 and 2 of Article L310-1 of the Insurance Code in order to provide
separate management to protect the interests of the insured of each of said two
categories of transactions.
Chapter II : Accounting of insurance and
capitalisation firms
Article L342-1
(inserted by Act n°. 94-679 of
Firms subject to State control pursuant to Article L310-1-1 shall assess their
assets and undertakings, keep their accounts, present and publish their
accounts in accordance with the same terms as firms subject to State control
pursuant to Article L310-1 and having their registered office in
Chapter IV : Insurance categories and statements to be
produced
Article L344-1
(inserted by Act n°. 89-1014 of
Firms underwriting life insurance or capitalisation transactions shall draw up
at each year end a statement which shall be attached to their accounts. Said
statement shall record the book value and the realisation value of all
investments listed as assets.
Moreover, said statement shall show the share of investments that corresponds
to undertakings made to the insured and beneficiaries of the contracts, such as
such share would be recorded in the event of the transfer of the portfolio of
contracts.
A decree in Conseil d’Etat defines the rules for application of the two
previous paragraphs.
Chapter V : Consolidated accounts
Article L345-1-1
(Act n°. 99-532 of 25 June 1999, Article 53, IV,
Official Journal of 29 June 1999)
(Order n°. 2001-766 of
The headquarters of group insurance companies defined in Article L322-1-2 must
be located in
Article L345-2
(Act n°. 94-679 of 8 August 1994, Article 4, IV,
Official Journal of 10 August 1994 in force on 1 January 1995)
(Act n°. 98-261 of 6 April 1998, Article 8, II,
III, Official Journal of 7 April 1998)
(Act n°. 99-532 of 25 June 1999, Article 52, II,
Official Journal of 29 June 1999)
(Order n°. 2001-350 of
(Order n°. 2001-766 of
Firms subject to State control pursuant to Article L310-1 and having their
registered office in France, firms referred to in Article L310-1 and group
insurance companies defined in Article L322-1-2 must draw up and publish
consolidated accounts in accordance with the terms defined by rule of the
accounting regulation committee. Firms included by global integration in the
consolidated accounts of a firm that is itself subject to an obligation to
consolidate its accounts pursuant to this paragraph shall not however be
subject to said obligation.
When the insurance regulatory commission considers that the consolidated
accounts of a group insurance company does not enable it to pertinently judge
compliance with the additional supervision rules laid down in Article L334-3,
said commission shall exempt said group insurance company from the obligation
defined in previous paragraph.
When two or more firms subject to State control pursuant to Article L310-1 or
Article L310-1-1, group insurance companies defined in Article L322-1-2,
provident institutions or unions governed by title III of Book IX of French
Social Security Code or mutuals, pension bodies or unions governed by Book II
of the French Mutual Insurance Code form a group whose cohesion does not ensue
from capital links, one of them shall draw up and publish combined accounts. A
decree determines the institution referred to in the previous paragraph bound
by said obligation. Combined accounts are formed by grouping all of the
accounts of the concerned institutions drawn up, where applicable, on a
consolidated basis, in accordance with the terms defined by a rule of the
accounting regulatory commission.
Title V
Freedom of services and coinsurance relating to
States, non members of the EU, parties to the European Economic Space agreement
Chapter I: Provisions relating to the freedom of
services in assurance against damage
Section
I : General provisions
Article L351-1
(Act n°. 89-1014 of 31 December 1989, Article 1,
Official Journal of 3 January 1990 in force on 1 July 1990)
(Act n°. 92-665 of 16 July 1992, Article 14, Official
Journal of 17 July 1992 in force on 20 May 1993)
(Act n°. 94-5 of 4 January 1994, Article 30, I,
II, Official Journal of 5 January 1994 in force on 1 July 1994)
In this title:
1 the word “State” means the State party to the European Economic Space
agreement non member of the European Communities,
2 the expression “freedom of services” means the rules applicable to
transactions carried out within the framework of freedom of services defined in
paragraph 4 of Article L310-3 when the following circumstances or any one of
them occurs:
a)
the transaction is carried out from a State that is not a member of the
European Communities,
b)
the State of origin of the firm that carries out the transaction is not a
member of the European Communities,
c)
the State where the risk covered or undertaking made is located is not a member
of the European Communities.
Article L351-2
(Act n°. 89-1014 of 31 December 1989, Article 1,
Official Journal of 3 January 1990 in force on 1 July 1990)
(Act n°. 91-716 of 26 July 1991, Article 1, VII,
Official Journal of 27 July 1991 in force on 20 November 1992)
(Act n°. 92-665 of 16 July 1992, Article 32,
III, Official Journal of 17 July 1992 in force on 20 May 1993)
(Act n°. 94-5 of 4 January 1994, Article 30, I,
Official Journal of 5 January 1994 in force on 1 July 1994)
This title shall not apply to insurance transactions related to:
-
work-related accidents and occupational diseases,
-
public liability of motor vehicles, apart from the carrier’s liability,
Moreover, this chapter shall not apply to risks related to building work which
is covered by compulsory insurance.
Section II : Conditions of exercice
Article L351-4
(Act n°. 89-1014 of 31 December 1989, Article 1,
Official Journal of 3 January 1990 in force on 1 July 1990)
(Act n°. 91-716 of 26 July 1991, Article 1,
VIII, Official Journal of 27 July 1991 in force on 20 November 1992)
(Act n°. 92-665 of 16 July 1992, Article 14,
Official Journal of 17 July 1992 in force on 20 May 1993)
(Act n°. 94-5 of 4 January 1994, Article 6, I,
II, Article 30, I, Official Journal of 5 January 1994 in force on 1 July 1994)
Any insurance firm may cover major risks as defined in Article L111-6 in
Article L351-5
(Act n°. 89-1014 of 31 December 1989, Article 1,
Official Journal of 3 January 1990 in force on 1 July 1990)
(Act n°. 92-665 of 16 July 1992, Article 14,
Official Journal of 17 July 1992 in force on 20 May 1993)
(Act n°. 94-5 of 4 January 1994, Article 30, I,
IV, Official Journal of 5 January 1994 in force on 1 July 1994)
Any insurance firm may cover risks other than those referred to in Article L351-4
in
However, such firm may operate in
Article L351-6
(Act n°. 89-1014 of 31 December 1989, Article 1,
Official Journal of 3 January 1990 in force on 1 July 1990)
(Act n°. 92-665 of 16 July 1992, Article 14,
Official Journal of 17 July 1992 in force on 20 May 1993)
(Act n°. 94-5 of 4 January 1994, Article 30, I,
Official Journal of 5 January 1994 in force on 1 July 1994)
Any insurance firm that covers a risk other than those referred in Article
L351-4 in
Any insurance firm that covers major risks in France in the framework of
freedom of services must submit the standard and special terms of insurance
policies, manuals of rates, forms and other printed matter that the firm
intends using to the Minister in charge of the Economy and Finance when
it is requested to do so in order to check compliance with the law and
regulations applicable to such risks.
Article L351-6-1
(Act n°. 91-716 of 26 July 1991, Article 1, IX,
Official Journal of 27 July 1991 in force on 20 November 1992)
(Act n°. 92-665 of 16 July 1992, Article 14,
Official Journal of 17 July 1992 in force on 20 May 1993)
(Act n°. 94-5 of 4 January 1994, Article 30, I,
Official Journal of 5 January 1994 in force on 1 July 1994)
Any firm that covers the risks of public liability ensuing from use of motor
vehicles in the framework of freedom to provide service shall appoint a representative
in
Section III : Administrative penalties
Article L351-7
(Act n°. 89-1014 of 31 December 1989, Article 1,
Official Journal of 3 January 1990 in force on 1 July 1990)
(Act n°. 92-665 of 16 July 1992, Article 14, Official
Journal of 17 July 1992 in force on 20 May 1993)
(Act n°. 94-5 of 4 January 1994, Article 30, I,
Official Journal of 5 January 1994 in force on 1 July 1994)
When an insurance firm that operates in
If the firm disregards the order given pursuant to the previous paragraph, the
insurance regulatory commission shall inform the regulatory authorities of the
member State of the establishment of said firm and, where applicable, the State
of its registered office thereof and request them to take all appropriate
measures to ensure that the firm complies with the rules.
Article L351-8
(Act n°. 89-1014 of 31 December 1989, Article 1,
Official Journal of 3 January 1990 in force on 1 July 1990)
(Act n°. 92-665 of 16 July 1992, Article 14,
Official Journal of 17 July 1992 in force on 20 May 1993)
(Act n°. 94-5 of 4 January 1994, Article 30, I,
Official Journal of 5 January 1994 in force on 1 July 1994)
If the firm persists in violating the rules applicable to it in France, the
insurance regulatory commission may take appropriate measures to prevent
further violation and if, the circumstances so require, prohibit the firm from
continuing to conclude insurance contracts in the framework of freedom of
services in France and impose, in accordance with the terms of Article L310-18,
the penalties listed in said same Article, apart from those provided for in the
fifth (4) and seventh (6) paragraphs of said Article. The insurance regulatory
commission shall publish the measures that it ordered in newspapers and
publications of its choice and display them at the places and for the time that
it specifies at the firm’s expense.
Article L351-9
(Act n°. 89-1014 of 31 December 1989, Article 1,
Official Journal of 3 January 1990 in force on 1 July 1990)
(Act n°. 92-665 of 16 July 1992, Article 14,
Official Journal of 17 July 1992 in force on 20 May 1993)
(Act n°. 94-5 of 4 January 1994, Article 30, I,
V, Official Journal of 5 January 1994 in force on 1 July 1994)
When the proper regulatory authority informs the insurance regulatory
commission that a firm operating in France in the framework of freedom of
services is concerned by a recovery plan or a short term financing plan or a
measure that restricts or prohibits the free disposal of its assets, it shall
take restriction or prohibition measures in respect of the assets of said firm
located in France in order to safeguard the interests of the insured and
beneficiaries of the contracts.
Article L351-10
(Act n°. 89-1014 of 31 December 1989, Article 1,
Official Journal of 3 January 1990 in force on 1 July 1990)
(Act n°. 92-665 of 16 July 1992, Article 14,
Official Journal of 17 July 1992 in force on 20 May 1993)
(Act n°. 94-5 of 4 January 1994, Article 30, I,
Article 32, II, III, Official Journal of 5 January 1994 in force on 1 July
1994)
When the proper regulatory authority informs the insurance regulatory
commission of the withdrawal of the licence of a firm operating in
Chapter II: Provisions relating to coinsurance
Article L352-1
(Act n°. 89-1014 of 31 December 1989, Article 1,
Official Journal of 3 January 1990 in force on 1 July 1990)
(Act n°. 92-665 of 16 July 1992, Article 14,
Official Journal of 17 July 1992 in force on 20 May 1993)
(Act n°. 94-5 of 4 January 1994, Article 30, I,
Article 31, Official Journal of 5 January 1994 in force on 1 July 1994)
Any insurance firm whose registered office is located on the territory of a
State party to the European Economic Space agreement non member of the European
Communities and which complies with the law of the country where it is established
shall be exempted from the obligations provided for in Articles L321-7 and
L351-4 in order to participate, without being a leading underwriter, in
covering a major risk as defined in Article L111-6 located in France as part of
a coinsurance transactions carried out in the framework of freedom of services
and at least one of whose participants is not established in the same member
State as the leading underwriter.
Chapter III: Provisions relating to the freedom of
services in life insurance and capitalisation
Section
I : General provisions
Article L353-2
(Act n°. 92-665 of 16 July 1992, Article 15,
Official Journal of 17 July 1992 in force on 20 May 1993)
(Act n°. 94-5 of 4 January 1994, Article 30, I,
Official Journal of 5 January 1994 in force on 1 July 1994)
This chapter shall not apply to:
1 transactions that consist of managing the investments of firms other than
those referred to in Article L310-1 that provide benefits on survival to a
stipulated age, death or cessation or reduction of activity,
2 transactions defined in Article 1 of chapter I of title IV of Book IV.
Section
II : Conditions of exercice
Article L353-4
(Act n°. 92-665 of 16 July 1992, Article 15,
Official Journal of 17 July 1992 in force on 20 May 1993)
(Act n°. 94-5 of 4 January 1994, Article 30, I,
Official Journal of 5 January 1994 in force on 1 July 1994)
The policyholder shall be deemed to have taken the initiative when at least one
of the following two situation arises:
1 The contract has been underwritten without the policyholder being canvassed
in
2 The policyholder contacted an insurance intermediary established in
II. - Insurance firms shall benefit from the provisions of the first paragraph
of this Article only if the policyholder, before underwriting the contract, has
signed a statement whereby he acknowledges that he knows that the insurance
firm in question is subject to the control of the State where it is
established. Where applicable, it shall also sign a similar statement before
taking knowledge of the information referred to in the last paragraph (2°) of
I.
III - Any insurance firm, that makes undertakings in France within the
framework of freedom of services and in accordance with the terms of this
article, is bound to submit to the Minister in charge of Economy and Finance
the standard and special terms of insurance terms of insurance policies,
manuals or rates, forms and other printed materials that the firm uses, when it
is requested to do so in order to check compliance with the legislative and
regulatory provisions applicable to said undertakings.
Article L353-5
(Act n°. 92-665 of 16 July 1992, Article 15,
Official Journal of 17 July 1992 in force on 20 May 1993)
(Act n°. 94-5 of 4 January 1994, Article 30, I,
IV, Official Journal of 5 January 1994 in force on 1 July 1994)
Any insurance firm may make undertakings in
However, such firm may operate in
Article L353-6
(Act n°. 92-665 of 16 July 1992, Article 15,
Official Journal of 17 July 1992 in force on 20 May 1993)
(Act n°. 94-5 of 4 January 1994, Article 30, I,
Official Journal of 5 January 1994 in force on 1 July 1994)
Any insurance firm that makes undertakings in
Section
III : Administrative penalties
Article L353-7
(Act n°. 92-665 of 16 July 1992, Article 15,
Official Journal of 17 July 1992 in force on 20 May 1993)
(Act n°. 94-5 of 4 January 1994, Article 30, I,
Official Journal of 5 January 1994 in force on 1 July 1994)
Insurance firms referred to in Articles L353-4 and L353-5 shall be subject to
the administrative penalties provided for under Articles L351-7 to L351-9 as
well as to disqualification from carrying on business provided for in Article
L351-14.
Chapter
IV : Portfolio transfers
Article L354-1
(inserted by Act n°. 94-5 of
French insurance firms and their branches referred to in paragraph 1 of Article
L310-2 as well as the French branches of insurance firms referred to in
paragraph 3 of the same Article may be authorised, in accordance with the terms
defined in the second, third, fourth and seventh paragraphs of Article L324-1,
to transfer all or part of their portfolios of contracts executed in the
framework of freedom of services within the meaning of Article L351-1 to one or
more firms whose registered office(s) is or are located in a State party to the
European Economic Space agreement or [to] their branches established in States
parties to the European Economic Space agreement or to one or more insurance
firms established and authorised in the State of the risk or of the undertaking
party to the European Economic Space agreement. The Minister in charge of the
Economy and Finance shall approve the transfer only if it has been
approved by the regulatory authorities of the State where transactions are to
be carried out within the framework of freedom of services.
Moreover, when the assignee firm is established in a State party to the
European Economic Space agreement other than the State where transactions are
to be carried out within the framework of freedom of services, the Minister in
charge of the Economy and Finance shall approve the transfer only if it has
been approved by the regulatory authorities of the State of establishment of
the assignee firm. However, when the assignee firm is a branch established in a
member State of the European Communities of which the State of origin is also a
member, the approval referred to in this paragraph shall be granted by the
regulatory authorities of the State of origin of the assignee firm.
Article L354-1-1
(inserted by Act n°. 94-5 of
Firms and branches referred to in the first paragraph of Article L354-1 as well
as the French branches of insurance firms referred to in paragraph 4 of Article
L310-2 may be authorised in accordance with the terms of Article L354-1 to
transfer all or part of their portfolios of contracts covering risks or
undertakings located on the territory of a State member of the European
Communities to one or more assignee firms operating within the framework of
freedom of services within the meaning of Article L351-1 in the State of the
risk or the undertaking.
Article L354-2
(inserted by Act n°. 94-5 of
The lawfully approved transfer by the proper authorities of the concerned
Stated of all or part of a portfolio of contracts executed within the framework
of freedom of services within the meaning of Article L351-1 in France by a firm
established in a State party to the European Economic Space agreement other
than France to an assignee established in one of the States party to the
European Economic Space agreement shall be binding on insured persons,
policyholders, beneficiaries of the contracts and creditors insofar as the
provisions of first sentence of the second paragraph of Article L324-1 have
been complied with and the Minister in charge of the Economy and Finance has
not objected to the planned transfer.
The transfer shall be binding as from the date of the decision by the proper
authorities of the concerned States authorising the transfer has been made
public by a notice published in the Official Journal. However, the insured
shall be entitled to terminate the contract within a period of one month
following the date of said publication.
The provisions of the first two paragraphs of this Article shall also apply to
transfers of portfolios of contracts covering risks or undertakings located in
France by firms established in a member State of the European Communities, of
which the State of origin is a member State of the European Communities other
than France, to one or more assignee firms operating within the framework of
freedom to provide services within the meaning of Article L351-1 in France.
Title VI
Freedom of establishment and freedom of services
within the EU
Article L361-1
(inserted by Act n°. 94-5 of
In this title:
a)
the expression “
b)
the expression “Community insurance firm” means an insurance firm whose State
of origin is a
c)
Chapter
II : Conditions
of exercice
Article L362-1
(inserted by Act n°. 94-5 of
Any community insurance firm may establish in
Article L362-2
(inserted by Act n°. 94-5 of
Any community insurance firm established in a member State other than
France may cover risks or make undertakings in France within the framework of
freedom of services from said establishment in accordance with the licences
granted by the regulatory authorities of the State of origin, provided that the
latter have first forwarded the required information to the Minister for
Economy and Finance. An order defines the provisions for application of this
Article as stated in the previous Article.
Article L362-3
(inserted by Act n°. 94-5 of
Any community insurance firm that covers in
Article L362-4
(inserted by Act n°. 94-5 of
The provisions of titles II to V of this Book shall not apply to transactions
carried out in accordance with the provisions of Articles L362-1 and L362-2.
As required, a decree in Conseil d’Etat specifies the obligations imposed on
the firms referred to in Articles L362-1 and L362-2 by reasons of public
interest.
Chapter III : Control and penalties
Article L363-1
(inserted by Act n°. 94-5 of
In order to exercise control over community insurance firms and notwithstanding
the provisions of Article 1 a of Act n°. 68-678 of
The regulatory authorities of the State of origin of the firms may directly or
through the intermediary of persons they authorise for this purpose perform
audits on the spot of branches of community insurance firms established in
Article L363-2
(inserted by Act n°. 94-5 of
Based on a reasoned request by the regulatory authority of the State of origin
of the firms, the insurance regulatory commission shall restrict or prohibit
the free disposal of all or part of those assets of community insurance firms
located in
When the commission has been informed that the authorisation of a community
insurance firm operating in France within the framework of freedom of services
or freedom of establishment has been withdrawn or that it is in liquidation, it
shall assist the regulatory authority of the State of origin and, upon its
request, take the necessary measures to protect the interests of the insured in
accordance with the terms of Article L323-1-1.
Article L363-3
(inserted by Act n°. 94-5 of
Any community insurance firm that operates in
Article L363-4
(inserted by Act n°. 94-5 of
When a community insurance firm breaches legislative or regulatory provisions
applicable to it, the insurance regulatory commission may implement the
procedure defined in Article L351-7.
If the firm persists in violating the rules applicable to it, the insurance
regulatory commission may take appropriate measures, if the circumstances so
require, to prevent further violations: it may impose the penalties provided
for in the second, third and fourth paragraphs as well as the eighth paragraph
of this Article, in accordance with the terms of the ninth, tenth and eleventh
paragraphs of Article L310-18. In accordance with the same terms, it may also
suspend the general agent and prohibit the firm from entering into insurance
contracts in
In the event of emergency, the measures provided for in the previous paragraph
may be taken prior to implementation of the procedure defined in Article
L351-7.
As required, a decree in Conseil d’Etat specifies the terms of application of
this Article.
Chapter
IV : Portfolio
transfers
Article L364-1
(inserted by Act n°. 94-5 of
The transfer of all or part of a portfolio of contracts entered into in France within the framework of freedom of establishment or freedom of services by a community insurance firm to an assignee established in a member State of the European Communities whose State of origin is also a member of the European Communities or to an assignee authorised in accordance with the provisions of Article L321-7 and L321-9 shall be binding on the insured, policyholders, beneficiaries of the contracts and creditors insofar as the provisions of the first sentence of the second paragraph of Article L324-1 have been complied with and the Minister in charge of the Economy and Finance has not objected to the planned transfer.