French Insurance Code
In forceInformation on surrender or transfer values that cannot be established in euros or foreign currencies when the draft contract, insurance application or notice is submitted.
I.-Principle :
The information provided for in the fifth paragraph of
article L. 132-5-2and in the first paragraph of
article L. 132-5-3on surrender or transfer values that cannot be established in euros or foreign currencies when the insurance application, draft contract or notice is submitted is as follows. The following are indicated
1° In the table mentioned in article L. 132-5-2, the minimum surrender or transfer values. If these cannot be established when the draft contract, insurance proposal or information sheet is submitted, it is indicated that there is no minimum surrender or transfer value expressed in euros or foreign currencies.
2° In the table referred to in article L. 132-5-2, the surrender or transfer values, depending on the case, based on a generic number of units of account, a generic number of units of the diversification provision, or a calculation formula where applicable; the indication of these values is supplemented by a literary explanation below the said table.
II -Application to unit-linked policies :
For contracts covered by the second paragraph of
article L. 131-1, the provisions of 1° and 2° of I are applied as follows:
a) Surrender or transfer values may validly be indicated on the basis of an initial generic number of one hundred units of account, and may not take into account any scheduled arbitrages or surrenders that the contract may provide for. However, where the insurance application or the draft contract provides for an arbitration to be carried out at the end of the period referred to in article L. 132-5-1, the surrender or transfer values calculated on the basis of a generic number are stated assuming that the arbitration has been carried out. The surrender or transfer value calculated on the basis of a generic number takes into account any deductions made from the policy's mathematical reserve, where these can be determined when the insurance application or draft policy is submitted. Where certain deductions cannot be determined at the time the application is submitted, it is clearly indicated immediately after the table referred to in article L. 132-5-2 that the surrender or transfer value does not take account of the said deductions, specifying where this is the case, also clearly, that the deductions are not capped in terms of the number of units of account. The written explanation referred to in 2° of I includes the statement referred to in
article A. 132-5. It is completed by an indication of the method used to calculate the surrender value in euros.
b) Where some or all of the charges levied on the units of account cannot be determined when the insurance application or the draft contract is submitted in a generic number of units of account, simulations of surrender or transfer values for at least the first eight years, including the charges levied, are provided by way of example. The simulations relate to the entire surrender or transfer value and are based on three explicit assumptions, including the case where the value of the units of account is stable, an increase in the value of the units of account and, symmetrically, a decrease of the same magnitude in the value of the units of account.
c) For contracts where only part of the rights are expressed in units of account, the proportion of the surrender or transfer value in respect of the mathematical provision relating to commitments expressed in euros or foreign currencies and that in respect of the mathematical provision relating to units of account are indicated separately. Where applicable, it is indicated that the minimum values mentioned in 1° of I correspond to the share of the surrender or transfer value in respect of the mathematical provision relating solely to commitments expressed in euros or foreign currencies.
