The conclusion of insurance contracts very frequently involves brokers and insurance agents, who obey common rules.
Conditions for exercising the profession of intermediary
- Professional ability. All persons engaged in a remunerated insurance distribution business are required to have a certain level of professional competence. This capability needs to be maintained through training and continuing professional development to maintain a level of performance corresponding to the functions occupied and the market concerned.
- good repute. The requisite of good repute of insurance intermediaries is in line with that required of directors, managers or directors of an insurance company.
- Registration obligation. Intermediaries are required to be registered in a special register accessible to the public.
- Professional liability insurance obligation. Article L. 512-6 of the Insurance Code specifies that ” any intermediary must stipulate an insurance contract which covers him against the pecuniary consequences of his professional civil liability “. This insurance obligation is aimed at protecting the insured who are victims of faults committed by the intermediary in the exercise of his profession.
- Financial guarantee. Article L. 512-7 establishes that “ the intermediary who, even occasionally, collects funds intended to be paid either to an insurance company or to policyholders, must sign a financial guarantee specifically intended for the reimbursement of such funds to the policyholders ».
Obligation to inform and advise
Jurisprudence has always charged insurance intermediaries an advisory duty. This requires both the broker and the agent to specify in writing, before the conclusion of any insurance contract and on the basis of the information obtained from the potential subscriber or potential subscriber, the requirements and needs of the same and to provide objective information on the insurance product offered in an understandable, accurate and non-misleading form in order to enable you to make an informed decision.
