Chapter V: Insurance against natural disasters.

In areas classified as non-constructible by a plan for the prevention of foreseeable natural risks approved under the conditions laid down by the provisions of Chapter II of Title VI of Book V of the Environmental Code, the obligation laid down in the first paragraph of article L. 125-2 does not apply to insurance undertakings in respect of the property and activities mentioned in article L. 125-1, with the exception, however, of property and activities existing prior to the publication of this plan.

Nor is this obligation imposed on insurance undertakings in respect of property built and activities carried out in breach of the administrative rules in force at the time of their establishment and designed to prevent damage caused by a natural disaster.

However, insurance undertakings may only evade this obligation at the time of the initial conclusion or renewal of the contract.

With regard to property and activities located on land covered by a risk prevention plan, insurance undertakings may exceptionally waive the provisions of the second paragraph of article L. 125-2 by decision of a central pricing office, the constitution and operating rules of which are set by decree in the Conseil d'Etat, when the owner or operator has not complied with the measures referred to in 4° of II of article L. 562-1 of the Environment Code within five years.

The central pricing office sets special reductions, the maximum amounts of which are determined by decree, for each category of contract.

If a policyholder is refused a policy mentioned in article L. 125-1 of this code by an insurance company because of the extent of the risk of natural catastrophes to which he or she is subject, the policyholder may refer the matter to the central pricing office, which will require the insurance company concerned to take out the policy requested, including cover against the effects of natural catastrophes. Where the risk is significant or has special characteristics, the central pricing office may ask the insured to present it, under the same conditions, with one or more other insurers in order to spread the risk between them.

Any insurance undertaking which continues to refuse to underwrite an insured under the conditions laid down by the central underwriting office is deemed no longer to be operating in accordance with the regulations in force and is liable to have the administrative authorisation provided for in articles L. 321-1 or L. 321-7 to L. 321-9 withdrawn.

Any clause in reinsurance treaties that excludes the risk of a natural catastrophe from the reinsurance guarantee due to the insurance conditions set by the central pricing office is null and void.

The Prefect or the President of the Caisse Centrale de Réassurance may refer the matter to the Bureau Central de Tarification if the conditions under which a property or activity benefits from the guarantee provided for in article L. 125-1 appear to them to be unjustified in view of the behaviour of the insured or the absence of any precautionary measures likely to reduce the vulnerability of this property or activity. The bureau central de tarification sets special reductions under the conditions set out in the fifth paragraph.