Informed Insurance

The home of thought leadership by

Informed Insurance

Predictions
Or
Or

Prediction: France: Foreign insurers must take note of rigorous French policy wording requirements

LinkedIn Email Share this prediction
Prediction

When foreign insurers cover risks that are likely to give rise to litigation in France, they must be particularly attentive to the rigour imposed by the Cour de cassation (Supreme Court) on the drafting of policies. For example, in June 2023, the Cour de cassation ruled that the provisions of articles L. 112-4 and L. 113-1 of the French Insurance Code constituted overriding mandatory provisions binding on the French courts, regardless of the law designated by the policy. These articles stipulate that exclusion clauses must be written in highly visible terms and must be formal and limited (i.e. they must not empty coverage of its substance and it must be possible to determine by simply reading the clause what is covered and what is not). In the absence of such compliance, exclusion clauses will not be enforceable.