French Insurance Code
In forceI.-The box referred to in article L. 132-5-2 is placed at the top of the insurance proposal, draft contract or notice. It must not exceed one page in size and must contain the following information, in the order specified below:
1° It indicates whether the contract is an individual or group life insurance contract, or a capitalisation contract. For contracts mentioned in article L. 132-5-3, this information is supplemented by the following statement: "the rights and obligations of the member may be modified by riders to the contract, concluded between (name of the insurance company) and (name of the policyholder). The member is informed of these changes in advance".
2° The benefits offered, including non-optional additional benefits, are indicated, with reference to the clauses defining them; in particular, it is specified whether the contract provides for the payment of a lump sum or an annuity:
a) For contracts whose rights are expressed in euros or foreign currencies, it is indicated whether or not the contract includes a capital guarantee at least equal to the sums paid in, net of charges.
b) For unit-linked policies, it is clearly stated that the amounts invested in unit-linked products are not guaranteed but are subject to fluctuations upwards or downwards, depending in particular on the performance of the financial markets.
c) For contracts where part of the rights are expressed in units of account, the information on the guarantees offered, carried out in accordance with the provisions of present a and b, distinguishes between rights expressed in units of account and those which are not.
3° The existence or otherwise of contractual profit-sharing and, where applicable, the percentages thereof are indicated; the reference to the clause containing the provisions set out in the second paragraph of article L. 132-5 is also indicated.
4° It is indicated that the contract includes a surrender or transfer option. This indication is completed by the words "the sums are paid by the insurer within a period of... (payment period)"; references to the surrender and transfer clause and to the table referred to in article L. 132-5-2 are also given.
5° The charges and indemnities of any kind mentioned in article R. 132-3 and, where applicable, the existence of charges that may be borne by the unit of account are indicated under the same heading. For details of the latter charges, reference is made to a clause in the contract or to the document or memorandum mentioned in f of 2° of the appendix to article A. 132-4 , and the box specifies this. For the charges and indemnities mentioned in article R. 132-3, the section distinguishes between :
front-end and payment charges": maximum amount or percentage of charges deducted on subscription and on payment of premiums;
-charges during the life of the contract": maximum amount or percentage, on an annual basis, of charges levied which are not linked to the payment of guarantees or premiums;
-exit charges": maximum amount or percentage of charges on arrears receipts, indemnities mentioned in article R. 132-5-3;
-other charges": maximum amount or percentage of charges and indemnities not mentioned in the previous three paragraphs.
6° The following is added: "The recommended duration of the contract depends in particular on the financial situation of the policyholder (or subscriber), his/her attitude to risk, the tax regime in force and the characteristics of the contract chosen. The policyholder should seek advice from his insurer. "
7° The procedures for designating beneficiaries, as set out in 1° of article A. 132-9, are indicated. The reference to the clause containing the information mentioned in the same article is also indicated.
8° The following statement is inserted immediately after the box:
"The purpose of this box is to draw the attention of the policyholder (or subscriber) to certain essential provisions of the insurance application (or draft contract, or notice). It is important that the policyholder (or subscriber) reads the entire insurance application (or the draft contract, or the notice), and asks any questions he/she deems necessary before signing the contract (or the application form). "
