French Insurance Code
In forceI. - Where, for an insurance undertaking which does not belong to a group within the meaning of Article L. 356-1, the commitments constituted in respect of the operations governed by this chapter represent, as at 31 December 2017, more than 80% of all the technical provisions within the meaning of Title IV of Book III, constituted at the level of the insurance undertaking, Article R. 441-7-1 and the last paragraph of Article R. 441-21 do not apply.
II. - For agreements entered into on or after 1 September 2017 with an insurance undertaking which does not belong to a group within the meaning of Article L. 356-1 and which has been authorised to carry out the operations governed by this chapter for less than one financial year, this undertaking may not apply Article R. 441-7-1 and the last paragraph of Article R. 441-21 if, one year after the commencement of the operations provided for in the agreement, the commitments constituted in respect of the operations governed by this chapter represent more than 80% of all the technical provisions within the meaning of Title IV of Book III, constituted at the level of the insurance undertaking.
III. - Insurance undertakings satisfying the conditions of I or II inform the policyholders of all the agreements governed by this chapter that Article R. 441-7-1 and the last paragraph of Article R. 441-21 do not apply and the reasons for their non-application.
The underwriters of each agreement inform all members thereof as part of the annual information provided for in article L. 441-3-1.
IV. - When, for a policy insured by an insurance undertaking satisfying the conditions of I or II, the sum of the amount of the special technical provision set aside for the policy and the net unrealised gains and losses on the assets allocated to the special technical provision is less than the amount of the theoretical mathematical provision, the insurance undertaking may decide to allocate assets to this policy under the conditions set out in I of article R. 441-7-1.
It informs the policyholder of its choice, explaining the reasons. The subscriber to the agreement shall inform all members of this choice as part of the annual information provided for in article L. 441-3-1.
V.-When a supplementary occupational pension fund covers risks under an agreement which satisfies the conditions mentioned in I or II and the sum of the amount of the special technical provision set up under this agreement and the net unrealised gains and losses on the assets allocated to this provision is less than the amount of the theoretical mathematical provision, within six months of this situation being identified, the fund draws up a recovery plan with a timetable to enable a return to a situation in which the sum of the special technical provision and the net unrealised gains and losses on the assets allocated to the special technical provision is greater than the theoretical mathematical provision. This plan is transmitted to the Autorité de contrôle prudentiel et de résolution within thirty days of its adoption.
The plan referred to in the first paragraph shall take into account the specific situation of the fund, in particular the structure of its assets and liabilities, its risk profile, its liquidity situation, the age distribution of members entitled to retirement benefits and the specific nature of the commitments it has undertaken.
If the fund does not plan to collect new premiums and finds itself in the situation mentioned in the first paragraph, the recovery plan provides for requesting the transfer of the fund's commitments to another supplementary occupational pension fund or to an insurance undertaking.
Where a supplementary occupational pension fund finds itself in the situation referred to in the first paragraph and provides occupational pension services on the territory of another Member State of the European Union or of a State party to the Agreement on the European Economic Area, in accordance with Article L. 382-4, the recovery plan will be drawn up within one month of this situation being identified and will provide for this situation to be resolved within one year. If the situation has not been rectified by the end of this period, the Autorité de contrôle prudentiel et de résolution will take all necessary measures to put an end to the situation, taking care to protect the interests of policyholders and beneficiaries.
