Chapter I: General provisions.

Art. 1At each annual due date of the contract, the premium payable by the insured is determined by multiplying the amount of the reference premium, as defined in Article 2, by a coefficient known as the reduction/increase coefficient, set in accordance with Articles 4 and 5 below.
The original coefficient is 1.
Art. 2 - The reference premium is the premium established by the insurer for the risk with the same technical characteristics as those presented by the insured and appearing in the tariff communicated by the insurer to the Minister for the Economy and Finance under the conditions set out in article R. 310-6.
The technical characteristics relate to the vehicle, the geographical area in which it is driven or garaged, its social and professional use or the mileage covered, and possibly the fact that the vehicle is driven exclusively, as well as any discounts listed in the insurance companies' tariffs.
This reference premium does not include any increases that may apply for the aggravating circumstances listed in article A. 121-1-2 of the Insurance Code. On the other hand, for the application of the provisions of the clause, this reference premium includes any additional premium for novice drivers provided for in Article A. 121-1-1 of the Insurance Code, as well as any reductions mentioned in Article A. 335-9-3.
Art. 3.The premium to which the reduction/increase coefficient is applied is the reference premium defined in the previous article, for cover against the risks of civil liability, damage to the vehicle, theft, fire, glass breakage and natural disasters.
Art. 4.After each annual period of insurance without a claim, the applicable coefficient is that used at the previous expiry date, reduced by 5%, stopped at the second decimal place and rounded off by default; however, when the contract covers a vehicle used for Touring or All-Terrain use, the reduction is equal to 7%.
The reduction/increase coefficient may not be less than 0.50. No increase is applied for the first claim occurring after an initial period of at least three years during which the reduction/increase coefficient was equal to 0.50.

Art. 5 - A claim made during the annual period of insurance increases the coefficient by 25%; a second claim increases the coefficient by 25%, and the same applies to each additional claim.
The coefficient obtained is rounded off to the second decimal place.
If the insured vehicle is used for touring or all-purpose travel, the increase is equal to 20% per claim.
The increase is, however, reduced by half when the driver is only partially at fault, in particular in the event of an accident involving a pedestrian or cyclist.
In no case may the reduction/increase coefficient exceed 3.50.
After two consecutive years without a claim, the applicable coefficient may not exceed 1.
Art. 6.-Losses which may or may not give rise to compensation shall not be taken into consideration for the application of an increase if :
1 ^{o the} person responsible for the accident drives the vehicle without the knowledge of the owner or one of the designated drivers, unless he/she usually lives in the household of one of them;
2 ^{o the} cause of the accident is an event, not attributable to the insured, having the characteristics of force majeure;
3 ^{o the} cause of the accident is entirely attributable to the victim or a third party.

Art. 7 -A claim involving a parked vehicle caused by an unidentified third party for which the insured is not liable in any way, or where the claim involves only one of the following types of cover: theft, fire, glass breakage, does not result in the application of the increase provided for in Article 5 and does not preclude the reduction referred to in Article 4.
Art. 8 - Where it is established that a claim does not correspond to the description initially given, the premium may be adjusted either by means of a supplementary receipt or at the annual premium due date following the establishment of the claim.
No premium adjustment will be made, however, if the observation is made more than two years after the annual due date following this claim.
Art. 9 - The annual period taken into account for the application of the provisions of this clause is the period of twelve consecutive months preceding the annual due date of the contract by two months.
If the contract is interrupted or suspended for any reason whatsoever, the rate of reduction or increase applied on the previous expiry date will be retained by the insured, but no further reduction will be applied, unless the interruption or suspension is for a maximum of three months.
As an exception to the above provisions, the first insurance period taken into account may be between nine and twelve months.
Art. 10.The reduction-majoration coefficient acquired in respect of the vehicle named in the contract is automatically transferred in the event of the replacement of this vehicle or in the event of the acquisition of one or more additional vehicles.
However, the transfer of the reduction is only applicable if the usual driver or drivers of the vehicle or vehicles named in the special terms and conditions of the contract remain the same, except in the event of a reduction in the number of drivers.
Art. 11 - If the contract concerns a vehicle previously insured by another insurer, the reduction/increase coefficient applicable to the first premium is calculated by taking into account the information contained in the statement of information referred to in Article 12 below, and any additional declarations made by the insured.
Art. 12.-The insurer provides the policyholder with a statement of information when the contract is cancelled by one of the parties and within fifteen days of an express request by the policyholder.
This statement includes the following information:
date the contract was taken out;
vehicle registration number;
surname, first name, date of birth, number and date of issue of the driving licence of the policyholder and of each of the drivers named in the contract;
the number, nature, date of occurrence and driver responsible for claims made during the five annual periods prior to the issue of the statement of information, as well as the proportion of responsibility retained;
-the reduction/increase coefficient applied to the last annual premium due;
-the date on which the above information was established.

Art. 13 -A driver who wishes to be insured by a new insurer undertakes to provide the new insurer with the statement of information issued by the insurer of the contract which previously covered him, to the subscriber of this contract.
Art. 14 -The insurer must indicate on the premium due notice or receipt issued to the insured:
-the amount of the reference premium;
-the reduction/increase coefficient provided for in article A. 121-1 of the Insurance Code;
-the net premium after application of this coefficient;
-any increase(s) applied in accordance with article A335-9-2 of the Insurance Code;
-any reduction(s) applied in accordance with article A. 335-9-3 of the Insurance Code.