French Insurance Code
In forceI.-Prior to the conclusion of an insurance contract, insurance intermediaries shall provide prospective policyholders or members with information relating to their identity, address, registration, complaints procedures and recourse to a mediation process, as well as, where applicable, the existence of financial links with one or more insurance undertakings. It shall also inform the client whether it provides a recommendation service for the insurance contracts it distributes.
II. -Before concluding an insurance contract, the insurance intermediary must:
1° Provide information concerning the supply of the contract:
a) If he is subject to a contractual obligation to work exclusively with one or more insurance undertakings, the intermediary shall indicate this to the prospective policyholder and inform him of the names of these insurance undertakings;
b) If the intermediary is not under a contractual obligation to work exclusively with one or more insurance undertakings, but is unable to base his analysis on a sufficient number of insurance contracts available on the market, the intermediary shall inform the prospective policyholder or the prospective member of the names of the insurance undertakings with which he can and does work; c) If the intermediary is not under a contractual obligation to work exclusively with one or more insurance undertakings, the intermediary shall inform the prospective policyholder or the prospective member of the names of the insurance undertakings with which he can and does work;
c) If he is not under a contractual obligation to work exclusively with one or more insurance undertakings, where he avails himself of a recommendation service based on an impartial and personalised analysis, he is required to analyse a sufficient number of insurance contracts offered on the market, so as to be able to recommend, on the basis of professional criteria, the contract or contracts that would be best suited to the needs of the prospective policyholder or the prospective member;
2° Indicate whether, in relation to this contract, he works :
a) On a fee basis, i.e. in the form of remuneration paid directly by the policyholder or member;
b) On a commission basis, i.e. remuneration included in the insurance premium;
c) On the basis of any other type of remuneration, including any economic benefit, offered or provided in connection with the insurance contract; or
d) On the basis of a combination of the types of remuneration mentioned in a, b and c;
3° Where the policyholder or member is required to pay a fee, the insurance intermediary shall inform the policyholder or member of the amount of the fee or, where this is not possible, the method of calculation.
III.The policyholder is informed of changes affecting any of the information mentioned in II if, after the insurance contract has been concluded, he makes payments under the contract other than the current premiums and the scheduled payments.
IV - Prior to the conclusion of an insurance contract, the insurance intermediary on an ancillary basis provides the prospective policyholder or member with information relating to his identity, address, registration, complaints procedures and use of a mediation process, as well as the nature of the remuneration received for the distribution of the contract.
