Both forms of insurance companies

Both forms of insurance companies

Insurance companies Insurance companies, as we recalled, are governed by the Insurance Code. In general, they are allowed to sell as well as property and liability insurance and people's insurance (for more information, see "different branches of insurance").

However, companies commercializing both non-life insurance and life insurance, are required to dissociate and entrust life insurance to a separate company (except for mutual insurance companies (SMAs) to which the regulation prohibits the practice "Life" activity).

However, although both governed by the Insurance Code, insurance companies are not homogeneous in their form, because French legislation distinguishes two main types, which have very different rules of operation:

- Anonymous insurance companies
- Mutual insurance companies (SAM) or mutual insurance companies (SMA)
Nature of an anonymous insurance company

Anonymous Assurance company Anonymous insurance company is characterized by the fact that it is a commercial company with a vocation to make profits and distribute them to its shareholders. It is therefore consistent with a share capital (a minimum amount is established, as financial guarantees) and can be financed by proceeding by increasing capital or public offering. On the other hand, the insurance products it sells can be distributed by intermediaries (general agents and brokers) paid to the Commission.

Anonymous insurance companies are also allowed to operate in all branches of the insurance listed in Article R 321-1 of the Insurance Code (for more details, see page "The Branches of Insurance" ) Thus, and in fact, they usually offer a very wide range of insurance products, aimed at covering all or almost all types of risks. These commercial companies generally offer and most often, benefits to ensure property, responsibilities and persons (and even though, as we mentioned above, life insurance must be the subject of a separate management within a company separate from that offering non-life insurance, this legal imperative justifying by the fact that the mode of premium management is totally different in "life insurance" and "non-life insurance" )
 
Unlike mutuals, anonymous insurance companies manage the risk and tariffs by customizing them. Indeed, these insurers will very often take into account a set of personal parameters (readings through responses to a questionnaire submitted by the insurer to the candidate for subscription to an insurance contract) before establishing their pricing and 'Evaluate the amount of the premium requested from the insured.

Finally, the leaders of the insurance companies are appointed by the shareholders and paid for the exercise of their functions and responsibilities.
Nature of a mutual insurance company (SAM) and a mutual insurance company (SMA)

Mutual insurance companies (SAM) and mutual insurance companies (SMAs) are companies they also governed by the Insurance Code and therefore, as such, also subject to the prudential rules set out in this Code (see infra).

Not having, unlike anonymous, social capital, SAM and SMAs have a settlement fund, which means that they do not have shareholders to remunerate. These establishments are therefore non-profit companies.

In addition, their insuredies have the quality of members, so that members of an insurance mutual insurer have both the status of insurer and insured. As insurers, the members of a SAM or an ADM are invited, according to the organization of the mutual, to attend the general meetings or to be represented by the delegates they elected, in order to to participate in the management decisions of the company.

Finally, mutual insurance companies (SAM) and mutual insurance companies (SMAs) are managed by volunteer (unpaid), elected officials, either directly by the members or by delegates themselves elected by the members .

• Mutual insurance companies (SAM):

Mutuelle insurance company Mutual insurance companies (SAM) can only be constituted by gathering a minimum of 500 members. Membership contributions may be fixed or variable in IARDT (= non-life insurance), but are necessarily fixed in life insurance. These companies are allowed by legislation to remunerate intermediaries to market their insurance products.

Mutual insurance companies (SAM) are grouped together