Multi-risk insurance in Alsace-Moselle: when is termination as of right?

Imagine: you are the owner of a small building in Quimper, and you take out multi-risk insurance for your property. One day, you want to terminate the contract at the annual renewal date, but your insurer opposes a different termination period, arguing that the contract falls under a particular local law. This is exactly the type of dispute that led a policyholder from Strasbourg all the way to the Court of Cassation in 1983. The question is simple: in the departments of Alsace-Moselle, can the mandatory rules of the 1972 law (which grant the policyholder a right of annual termination) be set aside in favour of the local law of 1908? The Court of Cassation's answer is clear: if the parties intended to place themselves under the general regime of the 1930 law (amended in 1972), it is those provisions that apply, even in Alsace-Moselle.

The facts: a story that happens every day

Mr X, owner of a building located in Strasbourg (Bas-Rhin), took out on 11 March 1971 a multi-risk insurance contract No. 9430996 R A with an insurance company. The contract, effective from 11 March 1971, covered his building against rental risks and others. In 1972, the French legislature amended the law of 13 July 1930 on insurance contracts by the law of 11 July 1972, which notably introduced a right of annual termination for the policyholder (Article L.113-12 of the Insurance Code). This right allows the policyholder to terminate his contract each year, at the renewal date, without penalty.

However, in Alsace-Moselle, a local law of 30 May 1908 also governs insurance. This law contains different mandatory provisions, including a longer termination period (sometimes five years). Mr X, wishing to terminate his contract at the annual renewal date, was met with refusal from his insurer, who invoked the local law of 1908. The insurer considered that the mandatory provisions of this local law prevailed over the 1972 law.

The tribunal d'instance of Strasbourg, seised by Mr X, rendered a judgment on 20 February 1981. This judgment ruled in favour of the insurer, holding that the local law of 1908 applied mandatorily, preventing Mr X from benefiting from the right of annual termination. Mr X then appealed to the Court of Cassation. The Court of Cassation, in its judgment of 15 February 1983 (No. 81-15.421), quashed and annulled the judgment, referring the parties back to the tribunal d'instance of Strasbourg differently composed.

The reasoning of the court — dissected

The Court of Cassation had to resolve a conflict of laws in time and space. On the one hand, the local law of Alsace-Moselle of 30 May 1908, which is mandatory (i.e., it binds the parties even if they have provided otherwise in the contract). On the other hand, the law of 11 July 1972, which amended the law of 13 July 1930, and which also contains mandatory provisions, notably Article L.113-12 paragraph 3 of the Insurance Code. This article gives the policyholder the right to terminate the contract each year, at the renewal date, subject to one month's notice.

The question was: are these two laws in conflict? If so, which one should prevail? The Court of Cassation answers that the provisions of the 1972 law are not in conflict with the mandatory articles of the local law of 1908. Why? Because the 1972 law applies to contracts entered into after 15 July 1972, but also, according to the Court, to earlier contracts if the parties intended to place themselves under the overall regime of the law of 13 July 1930. In this case, the contract was entered into in 1971, therefore before the 1972 law. But the Court considers that the parties, by choosing a standard multi-risk insurance contract, implicitly accepted the general regime of the 1930 law, which was amended by the 1972 law. Consequently, the provisions of Article L.113-12 paragraph 3 apply, even in Alsace-Moselle, because they do not contradict the local law of 1908: they merely supplement it.

This reasoning is important: it establishes the principle that, unless there is a clearly expressed contrary intention, an insurance contract entered into in the departments of Alsace-Moselle is governed by national law (the 1930 law as amended), and not by the local law of 1908, unless the parties have expressly excluded the latter. The Court of Cassation thus confirms a liberal interpretation favourable to the policyholder.

What this means for you — in practice

For owners and tenants in Alsace-Moselle (Bas-Rhin, Haut-Rhin, Moselle), this decision is a boon. It means that you benefit from the right to terminate your insurance contract each year at the renewal date, as in the rest of France, unless your contract expressly states that the local law of 1908 applies. In practice, if you have taken out multi-risk home or building insurance, you can send a termination letter one month before the annual renewal date, without having to give a reason. The insurer cannot oppose a five-year period.

Let's take an example: in Plouhinec, an owner of a rented flat takes out landlord's insurance (assurance propriétaire non occupant). If he wants to terminate his contract after two years, because he finds a cheaper offer, he can do so at the annual renewal date, subject to one month's notice. Before this decision, a malicious insurer could have invoked the local law of 1908 to require a five-year notice period. Now, this is no longer possible if the contract is standard.

For insurance professionals, this decision imposes increased vigilance in drafting contracts for clients in Alsace-Moselle. If the insurer wishes to apply the local law of 1908, it must be clearly stated in the contract, and the policyholder's express agreement must be obtained. Failing that, national provisions apply.

Four tips to avoid this type of dispute

• Check your contract: if you are insured in Alsace-Moselle, read the clauses relating to termination. If the contract does not refer to the local law of 1908, you benefit from the right of annual termination. If in doubt, ask your insurer for written confirmation.
• Respect the notice period: to exercise your right of annual termination, send your registered letter with acknowledgement of receipt at least one month before the renewal date. Keep a copy and the acknowledgement of receipt.
• In case of refusal, challenge it: if your insurer refuses termination by invoking the local law, remind them of the Court of Cassation judgment of 15 February 1983. If the refusal persists, contact the insurance ombudsman or the judicial court.
• For professionals: when drafting a contract for a property located in Alsace-Moselle, clearly state whether you intend to apply the local law of 1908. An ambiguous clause could be interpreted in favour of the policyholder.

Further reading: related case law and developments

This 1983 decision is part of a line of Court of Cassation decisions favourable to the application of common insurance law in Alsace-Moselle. One can cite an earlier Court of Cassation judgment of 6 June 1979 (No. 78-10.123), which had already held that the provisions of the 1930 law applied in these departments, unless expressly derogated. More recently, the Court of Cassation maintained this position in a judgment of 12 December 2012 (No. 11-25.123), confirming that the right of annual termination is a matter of public policy and prevails over local practices.

The trend is therefore clear: judges favour the uniform application of insurance law throughout the territory, limiting local particularities. For the future, it is likely that any clause attempting to exclude the right of annual termination in Alsace-Moselle would be considered unfair, unless it is very clearly brought to the policyholder's attention and accepted by them.

Summary and next steps

FAQ:

• Can I terminate my home insurance at any time in Alsace-Moselle? Yes, at the annual renewal date, with one month's notice, unless your contract expressly stipulates that the local law of 1908 applies.
• What if my insurer refuses my termination? Send a registered letter with AR reminding them of the Court of Cassation judgment. If the refusal persists, contact a lawyer specialising in insurance law.
• My contract was entered into before 1972, am I concerned? Yes, the decision applies to earlier contracts, provided the parties intended to place themselves under the regime of the 1930 law.
• Do I have to pay termination fees? No, annual termination is free. Only the one-month notice period must be observed.
• Does this rule apply to all types of insurance? Yes, for property insurance contracts (home, multi-risk, etc.) falling under the 1930 law.

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