French Insurance Code
In forceThe information document provided for in IV of Article 3 of Order no. 2014-696 of 26 June 2014 contains the information set out in the attached model.
Annex to article A. 132-4-4 of the French Insurance Code
1° Commercial name of the contract affected by the conversion of commitments;
2° Characteristics of commitments giving rise to the constitution of a diversification provision:
a) Contractual definition of commitments giving rise to the constitution of a diversification provision, specifying in particular the minimum value of the diversification provision and the percentage of sums paid in net of charges, guaranteed at maturity. Where this percentage is zero, the absence of a guarantee in euros is clearly explained. Guarantees relating to periodic or additional premiums paid are specified;
b) Duration of the commitments giving rise to the constitution of a diversification reserve with, where applicable, a reference to the minimum and maximum duration of the proposed maturities;
c) Indication in clear lettering that the amounts invested in respect of commitments giving rise to the constitution of a diversification reserve are subject to fluctuations upwards or downwards depending on the performance of the financial markets;
d) Time limit and conditions for exercising the option to reverse the conversion decision provided for in I of Article 3 of Order no. 2014-696 of 26 June 2014 ;
e) Methods of paying premiums on commitments giving rise to the establishment of a diversification reserve;
f) Terms and conditions for extending or bringing forward the maturity of the commitment or the date on which annuity rights are settled;
g) Method of distributing underwriting and financial results;
h) Information on the operation of the collective deferred diversification reserve, if the insurance undertaking uses it;
i) Terms and conditions for converting diversification reserve units into a mathematical reserve if the contract so provides;
j) Investment policy for commitments for which the guaranteed capital is less than 100%;
k) Charges levied by the insurance undertaking in respect of commitments giving rise to the establishment of a diversification reserve;
l) Information on premiums relating to additional guarantees, where these exist;
m) General information on the collection of social security contributions when the guarantee is reached, where applicable.
3° Details of the surrender or transfer value:
a) Indication of the surrender or transfer values associated with commitments giving rise to a diversification provision as provided for in article A. 132-5-2 and article A. 132-5-1;
b) Indication in clearly visible characters that the insurance undertaking is committed only to the number of units in the diversification reserve, but not to their value;
c) Indication that the value of these units in the diversification reserve, which reflects the value of the underlying assets, is not guaranteed but is subject to fluctuations upwards or downwards depending in particular on developments on the financial markets;
d) If the contract so provides: indication in very conspicuous characters of the period during which the commitments cannot be surrendered;
e) Settlement period;
4° Procedures for converting existing commitments into commitments giving rise to the establishment of a diversification reserve: details of the possibility of partial or total conversion of existing commitments;
5° Changes made to the existing contract as a result of the purchase of commitments giving rise to a diversification reserve, in particular, if applicable:
a) Impact on management options;
b) Arbitration procedures;
c) Frequency and value date of transactions carried out on the contract or membership;
d) Use of a holding medium;
e) Floor guarantee or additional guarantee.
6° Mention of the possibility for the policyholder or subscriber to receive information about the contract in force on the date of conversion, in accordance with the conditions set out in article A. 132-4-5.
