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

Undertakings authorised in France and subject to State supervision pursuant to article L. 310-1, with the exception of those authorised for the operations referred to in 3° of the same article, as well as supplementary professional pension funds, are members of a guarantee fund designed to protect the rights of their policyholders, and of the subscribers and beneficiaries of their life insurance and capitalisation contracts covering personal injury, or those provided for in articles L. 143-1 and L. 441-1.

Insurance contracts, capitalisation bonds or contracts and contracts referred to in article L. 441-1, taken out by the following persons, are excluded from any compensation by the guarantee fund:

a) Directors, managers, personally liable partners holding, directly or indirectly, at least 5% of the capital of the company or of the supplementary occupational pension fund, statutory auditors and insured persons having the same capacity in other companies of the group;

b) Third parties acting on behalf of policyholders, contract subscribers and beneficiaries of benefits, as referred to in a) above;

c) Insurance companies, supplementary professional retirement funds, mutual insurance companies and unions governed by the Mutual Insurance Code, including the mutual insurance companies and supplementary professional retirement unions mentioned in article L. 214-1 of this code, provident institutions and unions governed by Title III of Book IX of the Social Security Code and by II of article L. 727-2 du code rural et de la pêche maritime et institutions de retraite professionnelle supplémentaire mentionnées à l'article L. 942-1 du code de la sécurité sociale, sauf lorsqu'il s'agit de contrats souscrits au profit de leurs salariés ou de leurs clients ;

d) Companies included in the scope of consolidation defined in Article L. 233-16 of the Commercial Code to which the insurance company or supplementary occupational pension fund belongs, except in the case of contracts taken out for the benefit of their employees or customers;

e) Credit institutions, finance companies and the persons referred to in article L. 518-1 of the Monetary and Financial Code, except for policies taken out on behalf of a borrower, a customer or their employees;

f) Undertakings for collective investment ;

g) Pension funds, except in the case of policies taken out on behalf of their members' employees or pensioners.