French Insurance Code
In forceI.-Before 1 January 2023, insurance undertakings may be authorised, under the conditions set out in this article, to transfer all or part of their portfolio of commitments corresponding to :
the contracts mentioned in 1°, 2°, 5° and 7° of article L. 224-40 of the French Monetary and Financial Code;
-defined-benefit contracts whose performance is linked to the cessation of professional activity, in particular those mentioned in articles L. 137-11 and L. 137-11-2 of the French Social Security Code and those mentioned in 3° of article 998 of the French General Tax Code;
defined-contribution contracts aimed at the constitution of a benefit paid in the form of a life annuity and corresponding to the benefits mentioned in article 82 of the General Tax Code.
The conditions of application of this article to commitments expressed in units of the diversification provision are specified by decree.
The transfer of commitments corresponding to popular retirement savings plans mentioned in article L. 144-2 must be authorised by the general meeting of the association mentioned in the same article. The rules applicable to this transfer are set by decree.
The commitments referred to in Article L. 441-1 of this Code, as well as the commitments covered by the group insurance agreement known as the "complementary pension scheme for hospital employees" referred to in Article L. 132-23, are not affected by this Article.
II - The Autorité de contrôle prudentiel et de résolution approves the transfer referred to in I if it is satisfied that the transfer does not prejudice the interests of the creditors and policyholders whose commitments are transferred.
In particular, it verifies that the assets transferred ensure a fair allocation of the investments assessed at realisable value, the distributable profit-sharing and the capitalisation reserve with regard to the valuation of the commitments using the method referred to in 2° of Article L. 351-1. Where the horizon of the commitments transferred allows for a longer-term investment than that of the portfolio that is not transferred, the AMF shall ensure that the amounts transferred of unrealised capital gains, distributable profit sharing and the capitalisation reserve reflect the difference between the investment horizon of the portfolio transferred and that of the portfolio that is not transferred.
Approval makes the transfer enforceable against policyholders, contract subscribers and beneficiaries, as well as creditors. The transfer is enforceable from the date of publication in the Official Journal of the approval decision referred to in the first paragraph of this II.
