Chapter III: Obligations of the insurer and the insured.

For insurance contracts covering natural persons outside their professional activities and falling within the branches or categories of contracts defined by decree of the Conseil d'Etat, the insured may, after a period of one year from the date of first subscription, cancel tacitly renewable contracts and memberships without cost or penalty. Cancellation takes effect one month after the insurer has been notified by the insured.

The right of cancellation provided for in the first paragraph is mentioned in each insurance contract. It is also indicated on each premium or contribution due date.

The right of cancellation provided for in the first paragraph is not available to the member when the relationship between the member and the employer makes membership of the contract compulsory.

When the contract is cancelled under the conditions provided for in the first paragraph, the insured is liable only for that part of the premium or contribution corresponding to the period during which the risk is covered, this period being calculated up to the effective date of cancellation. The insurer is obliged to reimburse the balance to the insured within thirty days of the date of cancellation. If the balance is not reimbursed within this period, the sums due to the insured will automatically accrue interest at the legal rate.

For personal insurance contracts taken out by an employer or a legal entity for the benefit of its employees or members and falling within the categories of contracts defined by decree in the Conseil d'Etat, the right of cancellation provided for in the same first paragraph is open to the policyholder.

For motor third party liability insurance defined in article L. 211-1 and for the insurance mentioned in g of article 7 of law no. 89-462 of 6 July 1989 aimed at improving rental relations and amending law no. 86-1290 of 23 December 1986, the new insurer carries out the formalities necessary for the policyholder wishing to join it to exercise the right of cancellation under the conditions set out in the first paragraph of this article. In particular, the new insurer will ensure that the policyholder continues to be covered during the procedure.

In the event that an insured person wishes to terminate a contract concluded for the reimbursement and compensation of expenses incurred as a result of illness, maternity or accident in order to take out a new contract with a new organisation, the latter will carry out the necessary formalities on behalf of the insured person wishing to join it, in order to exercise the right of termination under the conditions set out in the first paragraph of this article. The organisations concerned will ensure that the policyholder's cover is not interrupted during the procedure.

A decree of the Conseil d'Etat will specify the terms and conditions for the application of this article.