The combined interpretation of Article L. 310-2 I 2° of the Insurance Code and its references to Articles L. 310-1 and L. 310-10, allows an insurer with a European passport to operate on French territory, whether it operates in personal or damage insurance.
Since January 1, 2021, British insurers no longer fall within this framework.
But what about current insurance contracts?
The ordinance of last December 16 modifies article L. 310-2-3 of the same Code, which governs the situation where a company having validly carried out insurance operations is no longer in the situation described in article L. 310-2 I 2°.
The rule is as follows: the insurance and reinsurance contracts of British companies cannot be renewed, extended or rolled over.
Non-compliance with these provisions is sanctioned by the nullity of the contract, it being specified that this nullity is not opposable to subscribers (or members) and beneficiaries.
The unenforceability of this nullity with regard to subscribers and beneficiaries was formerly conditional on their good faith, this requirement has disappeared in the new version of article L. 310-2-3 of the Insurance Code .
British insurers disregarding these provisions could therefore be simultaneously obliged to cover the guaranteed risks and to return the related premiums, including in the presence of a subscriber of notorious bad faith.
The new article A. 310-1 of the Insurance Code details the terms and content of the information to be provided to subscribers (or members).
The contract remains valid for its remaining term, but it will not be possible to carry out new operations involving the issuance of premiums.
Exceptions made in cases where common sense requires allowing payments to continue (split premium, deferred premium, adjustment of the amount initially paid when permitted, etc.).
