Chapter III: The guarantee fund for policyholders against the failure of life and health insurance companies.

Articles in this section · 8

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Article L423-2

French Insurance CodeIn force
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Updated 8 Nov 2023

I.-When the Autorité de contrôle prudentiel et de résolution takes the protective measure provided for in 14° of I of Article L. 612-33 of the Monetary and Financial Code in respect of a person referred to in the first paragraph of Article L. 423-1 of this Code, it shall have recourse to the guarantee fund governed by this chapter, after consulting the chairman of the management board of this fund in writing. When the AMF's collège de résolution takes the resolution measure provided for in 4° of I of Article L. 311-30 in respect of an undertaking referred to in Article L. 311-1, it shall have recourse to the guarantee fund referred to in Article L. 423-1 under the same conditions.

If it does not agree with the AMF's decision, the Chairman of the Management Board may refer the matter to the Minister for the Economy within fifteen days of the AMF's decision. The Minister may then, in the interests of policyholders and the subscribers and beneficiaries of the contracts, and within a period of fifteen days, ask the Autorité to reconsider its decision after obtaining the written opinion of an arbitration board, the composition of which is set by decree in the Conseil d'Etat.

The decision of the Autorité de contrôle prudentiel et de résolution to call on the guarantee fund is immediately notified to the company or supplementary occupational pension fund concerned. If the procedure described in the previous paragraph is implemented, only the new decision of the Autorité is notified to the company.

II - As soon as the company has been notified, the AMF shall inform the guarantee fund of the invitation to tender it is issuing to implement the precautionary measure referred to in 14° of I of Article L. 612-33 of the Monetary and Financial Code.

III - When the portfolio transfer procedure is unsuccessful, the AMF shall inform the guarantee fund.

IV -The commitments and assets transferred are accounted for separately in accordance with II of Article L. 612-33-2 of the Monetary and Financial Code. Any profits due to an underestimation of assets or an overestimation of liabilities in the transfer balance sheet shall revert to the policyholders, contract holders, members and beneficiaries of benefits, whose contracts have been transferred.

V.-As part of the procedure provided for in 14° of I of Article L. 612-33 of the Monetary and Financial Code, the transfer of all or part of the portfolio or the declaration that the transfer procedure has failed shall result in the withdrawal by the AMF of all administrative authorisations of the defaulting company or the defaulting supplementary occupational pension fund. Until the liquidator is appointed, the guarantee fund shall perform the acts necessary for the management of the part of the portfolio of contracts that has not been transferred. The provisional administrator appointed, where applicable, by the Authority may carry out these acts of management on behalf of the guarantee fund.

Mariela Petrova

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Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

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15+ Years In Corporate Practice

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