Not considered insurance intermediaries

Application pratique:

The Court of Cassation rules that a property manager who simply takes out insurance on behalf of co-owners without canvassing or advising is not an insurance intermediary. Therefore, unless the syndic’s contract specifically prohibits retaining such fees, the co-ownership cannot reclaim them. The syndicat must check its management contract for transparency clauses and, if absent, may propose a resolution for the next general meeting to regulate future commissions.

Application pratique:

The decision confirms that merely executing co-owners' decisions to purchase insurance, without any canvassing or preparatory work, does not make the manager an intermediary under French law. To stay compliant, he should meticulously minute all general assembly resolutions authorising the insurance contracts and avoid providing any comparative advice on policies. This documentation will serve as proof if ever challenged by regulators or insurers.

Application pratique:

Applying this case law, sums paid by an insurer to property managers for distinct services are not deductible from the agent’s legal indemnity upon cessation of duties. The agent should formally challenge the deduction by registered letter, citing that these payments were for the property managers' administrative tasks, not a substitute for his own earned commissions, and threaten legal action for the full indemnity plus interest.