Insurance law

Insurance law is mainly governed by Law No. 129 of 22 January 1930 on the duration of insurance contracts; Law No. 609 of 11 April 1956 codifying the legislation on taxes due ​​by insurance companies; Ordinance No. 3.041 of 19 August 1963 giving effect in Monaco to the Convention signed in Paris on 18 May 1963 on the regulation of insurance; Ordinance No. 4.178 of 12 December 1968 instituting State supervision on insurance undertakings of all types and on capitalization undertakings, and organizing the insurance industry.

The law of the Principality shares a common basis with the French law. It presents however some fundamental differences.

There are a number of specific rules governing, among other things, taxes levied on insurance policies, cover, contractualisation of work-related risks and rates for supplementary health insurance policies.

It should be also noted that insurance contracts covering risks relating to maritime operations are governed by the Code de la mer ("Code of the Sea").

Furthermore, as Monaco is not a member of the European Union, the free provision of services does not apply. Insurance activities are subject to prior authorisation and approval by the Minister of State, as well as to supervision by the Monegasque State. Are concerned the companies:

• which enter into commitments whose fulfilment depends on the duration of human life (with the exception of mutual aid societies and public or private provident institutions governed by special laws) ;
• of any kind which undertake to pay a capital sum in the event of marriage or the birth of children;
• which call on savings with a view to capitalisation and, in exchange for direct or indirect single or periodic payments, enter into specific commitments;
  whose purpose is the acquisition of real estate by means of life annuities;
• insurance and reinsurance companies of all kinds (with the exception of companies whose sole purpose is reinsurance);
• which call for savings in order to collect sums paid in by their members, either with a view to allocating them to interest-bearing deposit accounts, or with a view to joint capitalisation, by making them share in the profits of other companies which they manage or administer directly or indirectly.

French insurance regulations relating to the guarantees to be presented, the reserves to be constituted, the operating conditions and the exercise of State control are considered to be an integral part of Monegasque regulations and apply to insurance activities in Monaco insofar as these issues are not governed by Monegasque law.

Great vigilance is required in practice due to the duality of the law applicable in Monaco. Added to this is the fact that insurance law is at the crossroads of other areas of law, such as tort law, employment law and construction law.

In this particular framework, a good knowledge of the case law and our experience in litigation enable us to support our clients in the most efficient ways when such issues arise.

• Law No. 1.503 of 23 December 2020 reinforcing the system for combating money laundering, terrorist financing and corruption established consolidated supervision of banking and insurance groups.
  
• Law no. 1.541 on nosocomial infections provides a framework for the fault-based liability of public and private healthcare establishments.
  
• Law no. 1.560 of 2 July 2024 relating to the regulation of the activity of property dealers requires that a professional indemnity insurance policy be taken out with a general insurance agent or insurance broker approved to practice in the Principality of Monaco.
• Law no. 1.561 of 2 July 2024 created a right to be forgotten (loan insurance) and other measures facilitating access to credit for certain business loans and property loans for people with an aggravated health risk, based on the model of the French AERAS Convention.
• Law no. 1.562 of 2 July 2024 introduced subsidiary medical cover open to Monegasques and foreign residents for at least 5 years if they are unable to take out an individual health insurance policy with private insurers.

• In addition, the legislator is considering introducing a ten-year guarantee insurance requirement for the main players in the construction industry (draft law no. 268).