Law L/95/022/CTRN of June 12, 1995 Enacting the Insurance Code

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Loi L/95/022/CTRN du 12 juin 1995, portant Code des Assurances V0Loi Loi L/95/022/CTRN du 12 juin 1995, portant Code des Assurances The Transitory Council for National Recovery, Under the provisions of the Fundamental Law, particularly Articles 93 and 94, The President of the Republic promulgates the law whose text follows:

BOOK 1: THE INSURANCE CONTRACT

Article 1: This Code only concerns terrestrial insurance. It does not apply to marine insurance, inland waterway insurance, or reinsurance concluded between insurers and reinsurers.

Article 2: The provisions of this Code cannot be modified by agreement, except those granting the parties a mere option, which are contained in Articles 6, 10, 11 paragraph 2, 23, 30, 31, 32, 33, 34, 36, 39, 40, 41, 43, 48, 132, 134, and 135.

TITLE 1: GENERAL PROVISIONS ON THE INSURANCE CONTRACT

CHAPTER 1: CONCLUSION AND PROOF OF THE INSURANCE CONTRACT, FORM AND TRANSMISSION OF POLICIES, JURISDICTION AND LIMITATION PERIOD.

Article 3: The insurance contract is the agreement by which an insurance company or insurer undertakes, upon the occurrence of the risk or at the term fixed in the contract, to provide a monetary benefit to a person called the "insured" in exchange for remuneration called a premium or contribution.
The insurance contract must be in writing in the official language of the Republic of Guinea, in clear characters.
It may be executed before a notary or under private signature. Any addition or modification to the original insurance contract must be recorded by an endorsement signed by the parties.
These provisions do not prevent the insurer or insured from being bound to each other by the delivery of a cover note, even before the issuance of the policy or endorsement.

Article 4: The insurance contract is dated the day it is subscribed. It indicates:
. the names and domiciles of the contracting parties; . the thing or person insured; . the nature of the guaranteed risks; . the time from which the risk is covered and the duration of this coverage; . the premium or contribution; . the conditions for automatic renewal, if stipulated; . the cases or conditions for extension, termination, or cessation of the contract's effects; . the insured's obligations at the time of subscription and potentially during the contract, regarding risk declaration and declaration of other insurances covering the same risks; . the conditions and modalities for declaration during a claim; . the deadline within which indemnities are paid; . the limitation period for actions arising from the insurance contract.

Policies of mutual insurance companies must confirm delivery to the member of the full text of the company's statutes; . the coverage amount.

Clauses in policies stipulating nullities or forfeitures are only valid if mentioned in very clear characters.

Article 5: The insurance policy may be to a named person, to order, or to bearer.
Order policies are transferred by endorsement, even in blank.
This article shall only apply to life insurance contracts under the conditions provided in Article 123 below.

Article 6: The insurer may raise against the policyholder or third party invoking its benefit, exceptions opposable to the original subscriber.

Article 7: The duration of the contract is fixed in the policy.
The contract's duration must be mentioned in very clear characters in the policy.
The policy must also state that the duration of automatic renewal cannot, under any circumstances and notwithstanding any contrary clause, exceed one year.

Article 8: Insurance may be contracted under a general or special mandate or even without a mandate, for the account of a determined person. In the latter case, the insurance benefits the person for whose account it was concluded, even if ratification occurs only after the claim.
Insurance may also be contracted for whom it may concern.
This declaration shall count both as insurance for the benefit of the policy subscriber and as a stipulation for a third-party beneficiary, known or potential, of said clause.
The subscriber of an insurance contracted for whom it may concern shall be solely liable for premium payment to the insurer, and any exceptions the insurer could have raised against the subscriber shall also be opposable to the policy beneficiary, whoever they may be.

Article 9: The insurance proposal binds neither the insured nor the insurer; only the policy or cover note confirms their mutual engagement.
The insurer is required, before concluding the contract, to provide an information sheet on the premium amount, coverage, and exclusions.
The proposal made by letter with acknowledgment of receipt to extend or reactivate a suspended contract is considered accepted if the insurer does not refuse this proposal within ten days after it reaches them. The provisions of this article do not apply to life insurance.

Article 10: In all instances regarding the fixing and settlement of due indemnities, the defendant (insurer or insured) shall be summoned before the court of the insured's domicile; regardless of the type of insurance, except in matters of real estate or natural movables, in which case the defendant shall be summoned before the court of the location of the insured objects.
However, if the case involves insurance against accidents of any nature, the insured may summon the insurer before the court of the place where the damaging event occurred.

Article 11: In all cases where the insurer reinsures against the risk they have insured, they remain solely liable towards the insured.
Several different risks, notably by their nature or rate, may be insured by a single policy.
Several insurers operating in Guinea may also engage via a single policy.

Article 12: All actions arising from an insurance contract are prescribed by two years from the event giving rise to them.
However, this period does not run:
1°) In case of concealment, omission, false or inaccurate declaration regarding the risk undertaken, from the day the insurer gained knowledge.
2°) In case of a claim, from the day the interested parties gained knowledge, if they prove they were unaware until then.
When the insured's action against the insurer was caused by a third-party recourse, the limitation period runs only from the day this third party exercised a legal action against the insured or was indemnified by them. The limitation period is extended to five years in life insurance contracts when the beneficiary is a person distinct from the subscriber, and in accident insurance contracts affecting persons when the beneficiaries are the heirs of the deceased insured.

Article 13: The duration of the limitation period cannot be shortened by a policy clause.

Article 14: The two-year limitation period runs even against minors, interdicted persons, and all incapacitated individuals.
It is interrupted by any of the ordinary causes of interruption of limitation and by the designation of experts following a claim.
The interruption of the limitation period for the action to pay the premium may, additionally, result from the sending of a registered letter by the insurer to the insured.

CHAPTER 2: OBLIGATIONS OF THE INSURER AND THE INSURED, NULLITIES AND TERMINATIONS

Article 15: Losses and damages occasioned by fortuitous events or caused by the insured's fault are the responsibility of the insurer, unless a formal and limited exclusion is contained in the policy.
The burden of proving intentional fault lies with the insurer.
However, the insurer is not liable, notwithstanding any contrary agreement, for losses and damages resulting from the insured's intentional or fraudulent fault.

Article 16: The insurer is liable for losses and damages caused by persons for whom the insured is civilly liable under Article 1099 of the Civil Code, regardless of the nature and severity of these persons' faults.

Article 17: Upon termination of the risk or at the contract's maturity, the insurer is required to pay within the agreed deadline the indemnity or determined sum based on the contract.
The insurer cannot be held liable beyond the insured sum.

Article 18: The insured is obliged to:
1°) Pay the premium or contribution at the agreed times; 2°) Declare exactly at the conclusion of the contract all known circumstances capable of enabling the insurer to assess the risks they undertake; 3°) Declare to the insurer the circumstances specified in the policy that result in aggravating the risks; 4°) Notify the insurer as soon as they become aware, and at the latest within five days, of any claim capable of triggering the insurer's coverage.

The declaration deadlines above cannot be reduced by contrary agreement; they may be extended by mutual consent between the contracting parties.
Forfeiture resulting from a contract clause cannot be opposed to an insured who proves they were placed, due to a fortuitous event or force majeure, in the impossibility of making their declaration within the allotted time. The provisions of paragraphs 1, 3, and 4 above do not apply to life insurance. The deadline provided in paragraph 4 does not apply to livestock mortality and theft insurance. In case of theft or livestock mortality, this deadline is set at forty-eight hours. The deadlines above may be extended by mutual consent between the contracting parties.

Article 19: The premium is payable at the insurer's domicile or the agent designated for this purpose, or at any other agreed location.
The coverage's effective date is subject to the insured's payment of the premium.
In the event of non-payment at the maturity of one of the premiums or premium fractions, coverage can only be suspended thirty days after formal notice to the insured. If the annual premium has been split, the suspension of coverage resulting from the payment of one of the premium fractions takes effect until the contract's term without needing renewal. The formal notice results from the sending of a registered letter with acknowledgment of receipt addressed to the insured's last known domicile. This letter must expressly indicate that it is sent as a formal notice, recall the premium or premium fraction maturity date, and reproduce the provisions of this article. The insurer has the right, ten days from the expiration of the deadline set in the second paragraph of this article, to terminate the policy. Termination may be made via a declaration by the insurer contained in the same formal notice letter, or in a new registered letter with acknowledgment of receipt addressed to the insured. The non-terminated contract resumes its effects for the future, at noon the day after the arrears or, in case of annual premium splitting, all due premium fractions including during the suspension period, as well as any applicable pursuit and recovery costs, have been paid to the insurer. The deadlines set by this article do not include the day of sending the registered letter with acknowledgment of receipt. When the last day of any of these deadlines is a holiday, the deadline is extended until the following day. Any clause reducing the deadlines set by the preceding provisions or dispensing the insurer from formal notice is null.

Article 20: When, through their own actions, the insured aggravates the risks such that, if the new state of affairs had existed at contract subscription, the insurer would not have contracted or would have done so only at a higher premium, the insured must declare this to the insurer beforehand by registered letter.
When risks are aggravated without the insured's fault, they must declare this by registered letter with acknowledgment of receipt within a maximum deadline of eight days from when they gained knowledge of the aggravation. In both cases, the insurer has the option to either terminate the contract or propose a new premium rate. If the insured does not accept this new rate, the policy is terminated, and the insurer, in the case of the first paragraph above, retains the right to claim damages before the courts. However, the insurer can no longer invoke risk aggravation when, after being informed in any manner, they have manifested consent to maintaining the insurance, specifically by continuing to receive premiums or by paying an indemnity after a claim. Upon risk realization or contract maturity, the insurer must perform the determined benefit within the agreed deadlines and cannot be held liable beyond. The insurer does not cover claims occurring after expiration or during the contract's suspension period.

Article 21: In the event of judicial reorganization or liquidation of the insured's assets, the insurance subsists and constitutes a provisional administration claim as referred to in Article 1322 of the Economic Activities Code.

Article 22: In the event of the insured's death or alienation of the insured thing, the insurance continues by operation of law for the benefit of the heir or purchaser, provided they fulfill all obligations the insured was bound to towards the insurer under the contract.
However, either the insurer, the heir, or the purchaser may terminate the contract. The insurer may terminate the policy within a three-month period from the day the definitive recipient of the insured objects requests the transfer of the thing in their name. In case of alienation of the insured thing, the alienator is liable to the insurer for payment of due premiums, but is released, even as guarantor, from future premiums from the moment they inform the insurer of the alienation by registered letter. The provisions of this article do not apply to the alienation of a motor land vehicle, ship, or pleasure boat. When there are multiple heirs or multiple purchasers, if the insurance continues, they are jointly and severally liable for premium payment. Any clause stipulating, for the insurer's benefit, as damages, a sum exceeding one year's premium in the event of the insured's death or alienation of the insured thing, if the heir or purchaser opts for contract termination, is null.

Article 22 bis: In the event of alienation of a motor land vehicle or its trailers or semi-trailers, and only concerning the alienated vehicle, the insurance contract is automatically suspended from the fifth day at 24:00 from the alienation.
The insurer is required to refund the prorated premium corresponding to the period from the date of this termination to the maturity date.
In the absence of contract reinstatement by mutual agreement or termination by one of the parties, termination occurs automatically upon expiration of a six-month period from the alienation.
The insured must inform the insurer by registered letter with acknowledgment of receipt or any method provided in the policy of the alienation date.
No indemnity may be stipulated for payment to the insurer in the aforementioned termination cases.
The provisions of this article apply to the alienation of ships or pleasure boats regardless of the propulsion mode used.
The insurer is required to refund the prorated premiums corresponding to the period from the date of this termination to the maturity date.

Article 23: If, for premium calculation, special circumstances mentioned in the policy aggravating the risks were taken into account, and if these circumstances disappear during the insurance, the insured has the right, notwithstanding any contrary agreement, to terminate the contract without indemnity if the insurer does not agree to a corresponding premium reduction according to the tariff applicable at contract subscription.

Article 24: Independent of ordinary causes of nullity, and subject to Article 141 of the Insurance Code, the insurance contract is null in case of concealment or intentional false declaration by the insured, when this concealment or false declaration changes the risk's object or diminishes its assessment for the insurer, even if the omitted or distorted risks had no influence on the claim.
The paid premiums then remain acquired to the insurer, who has the right to payment of all due premiums as damages.
This provision does not apply to life insurance.

Article 25: Omission or inaccurate declaration by the insured, whose bad faith is not established, does not lead to insurance nullity.
If established before any claim, the insurer has the right to either maintain the contract with an increased premium accepted by the insured, or to terminate the contract ten days after notice sent to the insured by registered letter, refunding the portion of the premium paid for the period where insurance no longer runs. In the case where establishment occurs only after a claim, the indemnity is reduced proportionally to the premium rate that would have been due if the risks had been completely and accurately declared.

Article 26: In insurances where the premium is calculated based on salaries or according to the number of persons or things subject to the contract, it may be stipulated that, for any error or omission in declarations serving as the basis for premium calculation, an indemnity not exceeding fifty percent of the omitted premium may be claimed.
It may also be stipulated that when errors or omissions, by their nature, importance, or repetition, have a fraudulent character, the insurer shall be entitled to repeat paid claims, independently of the payment of the aforementioned indemnity.

Article 27: The following are null:
1°) All general clauses subjecting the insured to forfeiture in case of violation of laws or regulations, unless this violation constitutes an intentional crime or misdemeanor.
2°) All clauses subjecting the insured to forfeiture due to simple delay in declaring the claim to authorities or submitting documents, without prejudice to the insurer's right to claim indemnity proportional to the damage caused by this delay. 3°) When provided for by a contract clause, forfeiture for late declaration regarding the deadlines set in 3° and 4° of Article 18 cannot be opposed to the insured unless the insurer proves the declaration delay caused them prejudice. It also cannot be opposed in all cases where the delay is due to a fortuitous event or force majeure.

TITLE 2: RULES RELATIVE TO NON-MARITIME PROPERTY INSURANCE.

CHAPTER 1: GENERAL PROVISIONS

Article 28: Insurance relating to goods is an indemnity contract; the indemnity due by the insurer to the insured cannot exceed the amount of the insured thing's value at the time of the claim.
It may be stipulated that the insured remains obligatorily their own insurer for a determined sum or quotient, or that they bear a deduction fixed in advance on the claim indemnity.

Article 29: When an insurance contract has been entered into for a sum exceeding the insured thing's value, if there is fraud or deceit by one of the parties, the other party may demand nullity and claim, additionally, damages.
If there was no fraud or deceit, the contract is valid, but only up to the real value of the insured objects, and the insurer shall have no right to premiums for the excess. However, due premiums shall remain definitively acquired to them, as well as the current year's premium when it is due.

Article 30: One who insures for the same interest, against the same risk, with several insurers, must, unless otherwise stipulated, immediately inform each insurer of the other insurance.
The insured must, during this communication, disclose the name of the insurer with whom another insurance was contracted and indicate the insured sum.
When several insurances are contracted without fraud, either on the same date or different dates for a total sum exceeding the insured thing's value, they are all valid and each produces its effects proportionally to the sum to which it applies up to the full value of the insured thing. This provision may be waived by a policy clause adopting the date order rule or stipulating solidarity between insurers.

Article 31: If valuations show that the thing's value exceeds the guaranteed sum on the day of the claim, the insured is considered to remain their own insurer for the excess, and consequently bears a proportional share of the damage, unless otherwise agreed.

Article 32: Any person having an interest in the conservation of a thing may insure it.
Any direct or indirect interest in the non-realization of a risk may be the subject of insurance.

Article 33: Waste, diminutions, and losses suffered by the insured thing that originate from its own vice are not the insurer's responsibility, unless otherwise agreed.

Article 34: The insurer is not liable, unless otherwise agreed, for losses and damages occasioned either by foreign war, civil war, riots, or popular movements.
When these risks are not covered by the contract, the insured must prove that the claim results from a fact other than foreign war; it is for the insurer to prove that the claim results from civil war, riots, or popular movements.

Article 35: In the event of total loss of the insured thing resulting from...