During the process of selling a contract, insurers are required to adhere to strict advice and information obligations aimed at ensuring consumer protection. The regulatory requirements imposed on insurance distributors are further reinforced in the context of distance marketing following canvassing.
To comply with the various legislations, it is the responsibility of insurers and insurance intermediaries to issue a certain number of pre-contractual and contractual documents intended to satisfy the perfect information of the customer during the operations of signing a contract. Thanks to this formalized, objective and comprehensible documentation, the insured must be able to make an informed decision that meets their real needs.
We develop here the detailed summary of the information and documents that a contracting party must be given in the context of the subscription of his car insurance. However, equivalent legal guidelines apply to all insurance products.
Before subscription
Upon entering into a commercial relationship with a potential client, the insurance professional is subject to a duty to inform and advise him in order to offer him, it’s clearthem the most suitable guarantees to his requirements.
Pre-contractual information and documents
In accordance with the various regulations applicable in pre-contractual phasethe distributor undertakes to provide the prospect, without obligation of either party:
→ One needs study. Following specific questions asked by the seller, it identifies the data specific to the situation of the potential subscriber (dates of birth and license, bonus and insurance history, etc.) and his requests for insurance coverage (use of the vehicle, warranties desired…). The answers obtained must allow the insurer, through a good knowledge of his client, to assess his insurance needs. This information is precisely transcribed in writing in a compendium serving as the basis for a personalized and reasoned draft contract (article L521-4 of the Insurance Code).
→ One information sheet taking the place of draft contract. In connection with the needs and requirements identified, this estimate lists the guarantees offered and those declined, the deductibles provided for, the obligations of the insured and the contribution amount. This insurance proposal must also mention the contact details of the insurer and specify the applicable law as well as the procedures for examining complaints and the processes of mediation (article L112-2 of the Insurance Code).
→ One insurance product information document (DIPA or IPID). Standardized in its form and content, this notice presents in a clear and concise manner the essential characteristics of the contract presented by the insurance company that designed it. The DIPA thus summarizes the main guarantees, compulsory or optional, with the exclusions and restrictions of cover, the conditions of application of the contract, its duration, its conditions of termination and payment (article L112-2 of the Insurance Code).
→ The terms and conditions. They detail in a complete and exhaustive manner the content and extent of the guarantees offered by the insurance company in its standard contract. They specify the conditions of their application and the general exclusions, describe the operation of compensation in the event of a claim and explain all the steps relating to the life of the contract. This comprehensive document also includes the information sheet relating to the operation of civil liability cover over time, made mandatory for all contracts covering this type of cover.
Regulatory notices
Other legal and regulatory notices must be brought to the attention of the future client before signing the contract. They can be the subject of an annexed document or be inserted in the information document serving as a draft contract, or even in the general conditions:
→ Presentation, probity and independence insurance distributors (articles L521-2 to L521-3 of the Insurance Code). The insurer is required to indicate its identity and full contact details and, in the case of an intermediary, its exact status (agent, broker or representative) and its registration number in the Orias register. For the sake of transparency, he declares the nature of his remuneration in connection with the marketed product (commission, fees or other economic benefit). He must also specify whether he is subject to an obligation of exclusivity with one or more insurance companies.
→ Protection of personal data : the recipient of the subscription documents must be informed of the processing of his personal data, in particular of its purpose, as well as the contact details of the data protection officer with whom he can exercise all his rights, in accordance with the provisions of the Regulations General on Data Protection (RGPD) and the Data Protection Act.
Supplements in the event of distance selling
In addition to the regulations applicable to their sector of activity, insurance distributors are subject to compliance with legal provisions specific to the Distance Selling when the commercial relationship takes place outside of any simultaneous physical presence of the two parties. In such a situation, article L112-2-1 of the Insurance Code makes it mandatory to communicate additional information in the pre-contractual documents:
- the coordinates of the Prudential Control and Resolution Authority (ACPR) responsible for supervising insurance companies and protecting their customers;
- the period of validity of the proposal, the minimum duration of the contract, the terms of its conclusion and payment of the contribution with, if applicable, an indication of the additional cost linked to distance marketing;
- the existence of a right to waiver and its conditions of exercise, accompanied by a model waiver letter.
Procedures for submitting documentation
The law requires that information and advice documents be provided to the client before contracting and in writing. Article L521-6 of the Insurance Code authorizes the use of a durable medium other than paper when the dematerialization of the documentation is adapted to the commercial relationship and the subscriber has given his agreement for this mode of communication.
In practice, sending documents in the form of files in PDF format to an e-mail address or a secure personal space satisfies the legal obligation by allowing the future insured to store the information, reproduce it and consult it. for an appropriate period.
After subscription
Provisional contract documents
After the signing for agreement by the customer of the insurance proposal, the car insurer must verify the accuracy of the declarations provided before drafting the final contractual documents. Pending receipt of the supporting documents (copies of driving license and car registration document, statement of information) and their verification, he confirms to the insured the taking effect of the guarantees by sending provisional documents :
- Cover Note. It constitutes proof of the insurer’s immediate commitment to cover the risk for a temporary period. Although it is not subject to any formal condition, the cover note nevertheless sets out the essential elements of the guarantee granted and its precise duration, limited to one month.
- Certificate and provisional insurance certificate. Issuance of a provisional green card establishes the presumption of insurance for the duration of the cover note.
Final contract documents
After the study of the supporting documents has made it possible to validate the declarations, the insurer issues the final contract documents to send them to the subscriber:
- Special conditions. This personalized document, bearing the number of the insurance policy, supplements the general conditions to finalize the contract. According to article L112-4 of the Insurance Code, these provisions specify the effective date of the insurance cover, the names and addresses of the contracting parties and the identification of the insured vehicle. They mention the guarantees, options and deductibles chosen as well as the amount of the contribution, in total conformity with the insurance plan signed by the subscriber. The special conditions may include any specific clauses intended to adapt the contract to the personal situation of the insured.
- Insurance certificate (article R211-15 of the Insurance Code) and insurance certificate (article R211-21-2 of the Insurance Code), both bearing the policy number, the vehicle registration and the period of validity running until the next expiry date of the contract.
Conclusion
The car insurer is obligated to provide advice and information to policyholders that will help them understand their insurance coverage and rights. This includes providing information about accidents, claims, and policy provisions. The car insurer is also obligated to provide updates about changes to policy provisions and the rates associated with them.