French Insurance Code
In forceThe rates charged by the companies carrying out the operations referred to in 1° of
article L. 310-1,including those referred to in article
L. 143-1, and by the supplementary occupational pension funds referred to in article
L. 381-1must be based on a rate no higher than 75% of the average rate on French government bonds calculated on a half-yearly basis, without being able to exceed, beyond eight years, the lower of the following two rates: 3.5% or 60% of the average rate indicated above. For contracts with periodic premiums or variable capital, whatever their duration, this rate may not exceed the lower of the two following rates: 3.5% or 60% of the average rate indicated above.
For contracts denominated in foreign currencies, the technical interest rate shall not exceed 75% of the average long-term government bond rate for the country of the currency concerned calculated on a half-yearly basis or, failing that, the relevant long-term rate reference for the currency concerned and equivalent to the reference used for the euro.
For contracts of more than eight years, the tariff rate may not exceed the ceiling established by the regulations in force in the country of each currency concerned, for guarantees of the same duration, without exceeding 60% of the average rate referred to in the previous paragraph. The same applies to contracts with periodic premiums.
The average rate for government bonds is the higher of the two following rates: the issue rate and the yield on the secondary market.
The rules defined in this article are to be applied on the basis of the rates in force at the time of subscription and are not applicable to group provident operations covered by Chapter I of Title IV of Book IV of the Insurance Code. In the case of payments not scheduled under the terms of the contract, these rules are to be assessed at the time of each payment.
