French Insurance Code
In forceI. - For plans not covered by articles L. 134-1 or L. 441-1 of this Code, or byarticle L. 222-1 of the Mutual Code :
1° The capitalisation reserve is constituted for each portfolio of securities and investments which is subject to auxiliary allocation accounting. For the undertakings referred to in Article L. 310-3-2, it is taken into account for the constitution of the solvency margin referred to in Article L. 334-1 only up to the amount of the minimum regulatory margin requirements generated by the commitments relating to these plans as determined in application of Article R. 334-11. When the provisions of the first and third paragraphs of VII of Article L. 144-2 are applied collectively to plans managed by the same insurance undertaking, the capitalisation reserve is distributed uniformly between these plans in proportion to the provisions for profit sharing and the mathematical provisions relating to the commitments expressed in euros of each plan;
2° The provision for payment risks is calculated for each portfolio of securities and investments that is subject to sub-ledger accounting. When the provisions of the first and third paragraphs of VII of Article L. 144-2 are applied collectively to plans managed by the same insurance undertaking, this provision is distributed uniformly between these plans in proportion to the provisions for profit sharing and the mathematical provisions relating to the commitments expressed in euros of each plan.
II - The provisions of the first and third paragraphs of VII of article L. 144-2 may be applied individually to each popular retirement savings plan as soon as it is set up.
These provisions are applied individually to each popular retirement savings plan as soon as the number of members and the amount of the technical provisions of this plan, recorded at the end of a financial year, exceed the thresholds of 2,000 members and 10 million euros respectively.
In other cases, these provisions are applied collectively to all plans of the same type managed by the same insurance company.
When a popular retirement savings plan changes from collective to individual application of the provisions of the first and third paragraphs of VII of Article L. 144-2, the insurance undertaking submits a proposed list of assets allocated to the plan to the supervisory committees of the plans concerned by this operation. This proposed allocation of assets is enforceable ipso jure after agreement by the parties. This operation does not give rise to a revaluation of the assets.
III - Section 6 of Chapter II of Title IV of Book III applies to each plan or group of plans in the cases provided for in II of this article proposed by an insurance undertaking governed by the Insurance Code.
When the provisions of the first and third paragraphs of VII of Article L. 144-2 are applied collectively to plans managed by the same insurance undertaking, the assets held to represent commitments expressed in euros relating to these plans are, in particular for each closing of the accounts of the plans, deemed to be distributed uniformly between these plans in proportion to the technical provisions relating to commitments expressed in euros, valued at the same date.
IV - When the commitments of an insurance undertaking in respect of a popular retirement savings plan are no longer represented in at least an equivalent manner by the assets of the plan, the insurance undertaking and the supervisory committee of the plan draw up an agreement for the representation of the commitments by applying the provisions of article R. 342-3.
The commitment representation agreement determines in particular the amount and nature of the assets subject to these changes of allocation. This agreement also determines any charges levied by the insurance undertaking in return for the allocation of assets to the plan, as well as the conditions under which the insurance undertaking may, when the level of representation of its commitments under the plan so permits, reallocate to represent provisions or reserves other than those relating to popular retirement savings plans, plan assets chosen from the categories of assets defined in the previous paragraph, by changing the allocation of these assets.
The collective transfer of a popular retirement savings plan subject to a recovery plan does not affect the obligation of the original insurance company to allocate the planned assets to the plan, nor the company's right to recover them under the conditions provided for in this agreement.
