VALIDITY OF THE CREDIT INSURANCE CONTRACT REGARDING THE “FULL DISCLOSURE” OBLIGATION AND THE PAYMENT OF THE PREMIUM Comparison between French and “Common Law” 18 May 2010 HMN & Partners Law firm

2 TABLE OF CONTENTS I.I. The full disclosure obligation of the elements of risk: –- in French law –- in Common law II.II. Questions related to the payment of the premium

3 INTRODUCTION

4 Our presentation as part of the workgroup on credit insurance, is about: Firstly, the full disclosure obligation at the signature of the contract and, - Secondly, the questions about the payment of the premium. -

5 Full disclosure obligation in French law: -Provisions of Article L of the Code des Assurances -Disclosure obligation and hypothesis of avoidance -Relevancy of the writing of contractual documents I. The full disclosure obligation of the elements of risk

6 Full disclosure obligation in Common Law : -Reinsurance and political risk in English law -Definition in English law of Insurance contract -Requirement of an Utmost Good Faith -Requirement of a Warranty system I. The full disclosure obligation of the elements of risk

7 In French law: -The framework of the payment of the premium by Insurance law -Conventional provisions in Insurance -Conventional provisions in Credit Insurance II. Questions related to the payment of the premium

8 In Common Law : -The "Premium Warranty Clause" (PWC) -Application of the PWC before English courts

9 Conclusion -The analogy between French and English credit insurance law -Dispute resolution before a state judge -The arbitration solution