Warranty insured by a life insurance company

In any life insurance company, it is legitimate to the subscription of a contract, the insured asked about its guarantees to recover its investment with the interest owed. Indeed what would happen if the insurance company were to cease operations? Would there be a loss to the insured?

For any contract taken out with a life insurance company under French law, contracts are covered by the guarantee mechanism French health insurance and are regulated by the Insurance Code. The guarantee facility is managed by the Guarantee Fund and Health Insurance (FGAP) which is based 51 rue Saint-Georges 75009 Paris.

The guarantee mechanism is triggered and implemented by and under the control of the CAMA (Regulatory body for Insurance Activities), including administrative authority that is responsible for ensuring that each life insurance company compliance with laws and regulations and the commitments that bind them to their policyholders or members.

The French system provides for the intervention of the CMAA when the survival of the life insurance company seems compromised to avoid the consequences of a liquidation of the company accompanied by a termination of contracts prejudicial to policyholders. A tender is then initiated to organize the transfer of contracts to one or more other life insurance companies. The criteria in the tender are the rights of policyholders and the financial strength of candidate companies.