French Insurance Code
In forceI. - For the purposes of the seventh paragraph of article L. 132-22, the following information is provided to the policyholder:
- the interest rate guaranteed by the contract and the interest rate corresponding to the amount allocated to the mathematical provisions of the contract from the profit-sharing reserve or the reversal of the profit-sharing reserve ;
- the rate of charges levied by the company;
- the rate of taxes and social security contributions;
- the rate of interest paid to the policyholder, net of charges and, where applicable, taxes and social security contributions deducted when the interest is credited to the contract.
II. - For the purposes of the tenth paragraph of article L. 132-22, the information provided to the policyholder is as follows:
1° For contracts to which assets are allocated by virtue of legislative provisions, the rate of return on these assets;
2° For group contracts under which the commitments are represented by separately identified assets in order to comply with contractual stipulations, the rate of return on these assets;
3° In other cases, the rate of return on investments defined in 1 of article A. 132-14 and the average rate of the amounts, including those from profit sharing, allocated to the mathematical provisions relating to the category of operations mentioned in article A. 344-2, to which the contract belongs.
III. - For the purposes of the eleventh paragraph of article L. 132-22, the annual information provided to the policyholder or, in the case of a group contract, to the member includes :
- the value of the units of account selected ;
- the charges levied by the insurance company in respect of each unit of account;
- the total charges borne by the unit of account during the last known financial year;
- for units of account which include a benchmark, the values of the benchmark indicators;
- where applicable, the proceeds of the rights attached to the holding of the unit of account retained by the insurance company.
For each unit of account selected, information relating to performance gross of charges, performance net of charges, charges levied and commission retrocessions received in respect of the financial management of assets representing commitments expressed in units of account is presented in the form of a table listed in the appendix to article A. 522-1.
The significant changes affecting each selected unit of account, constituted in the form of a unit or share in a collective investment undertaking, are those affecting its main characteristics, as defined in article A. 132-6.
IV. - 1° For the application of the sixteenth paragraph of article L. 132-22, the estimate of the amount of the life annuity which would be paid to the member in respect of rights expressed in euros may be presented separately from the estimate established on the basis of rights expressed in units of account, which may itself be presented separately from that established on the basis of rights expressed in units of the diversification provision. The estimate of the amount of the life annuity and those made in a less favourable scenario are presented separately, clearly specifying the assumptions on which they are based. These assumptions are determined on the basis of the risks likely to affect the final result of the valuation.
2° Each estimate referred to in 1° is based on the mathematical provision established at the end of the financial year in question and the mortality tables and technical interest rate applicable to the contract. Each estimate is communicated net of the exit charges mentioned in the fourth paragraph of 5° of article A. 132-8 .
For members who have not reached the age mentioned in the first paragraph of article L. 161-17-2 of the Social Security Code by the end of the financial year in question, at least two estimates are provided, the first using the assumed retirement age mentioned in the first paragraph of article L. 161-17-2 of the Social Security Code and the second using this age plus five years.
For members who are over the age mentioned in the first paragraph of Article L. 161-17-2 of the Social Security Code at the end of the financial year in question, at least one estimate is drawn up, assuming a retirement age equal to the age mentioned in the first paragraph of Article L. 161-17-2 of the Social Security Code plus five years, and assuming a higher retirement age for members who are over this age at the end of the financial year in question.
3° The presentation of the estimates referred to in 1° is supplemented by the following statement: "These estimates are provided for information only and are not contractual in nature as they are based on parameters that may vary or be modified during the term of the contract, in particular the mortality table and the technical rate. Charges or indemnities are levied by the insurance company and are detailed in your contract. These estimates are based on assumptions as to the age at which the annuity will be paid, which may differ from the exact age at which your pension entitlement begins and from the age at which you can pay your compulsory full-rate pension. "
4° The presentation of the estimates referred to in 1° is supplemented by information on the terms and conditions of each of the assessments. This information specifies:
a) The technical rate used;
b) The annual nominal rate of return on investments, the annual inflation rate and future salary trends;
c) Data concerning the member, including an indication of the age mentioned in the first paragraph of Article L. 161-17-2 of the Social Security Code at the end of the financial year in question;
d) The average number of arrears for the age cohort to which the member belongs according to the mortality table applicable on the date of the information, specifying whether this table is likely to change before the member's annuity payment phase. This information is accompanied by a statement to the effect that this information is statistical in nature and does not constitute an assessment of the member's actual life expectancy.
