French Insurance Code
In forceI.-Where the contract expressly states that the option referred to in 2° of article L. 131-1 does not apply to the beneficiary, the notice sent by the contracting party to the beneficiary informing him of his right to irrevocably opt for the delivery of securities, units or shares under the conditions set out in article R. 132-5-7 includes the following information:
a) The name and address of the contracting party ;
b) The contract reference number;
c) An indicative list of the categories of securities, units or shares that will be remitted in the form of securities, units or shares if the beneficiary clause is exercised pursuant to 2° of article L. 131-1 of this code;
d) An indication of the main characteristics of the units of account selected, which may be validly done by providing the key information document or the specific information document provided for in Regulation (EU) No 1286/2014 of the European Parliament and of the Council of 26 November 2014 and Commission Delegated Regulation (EU) No 2017/653 of 8 March 2017 ;
e) The existence, where applicable, of a suspensive clause in the contract making payment into a unit of account constituted in the form of securities or units not traded on a regulated market, or units or shares in alternative investment funds conditional on the contracting party and the beneficiary exercising the option to surrender these securities, units or shares ;
f) The existence, where applicable, of a clause providing for the compulsory redemption by the subscriber of the securities, units or shares referred to in c) of this article in the event of a change of beneficiary.
g) The existence, where applicable, of units of account that may be converted into securities, units or shares associated with the existence of debts or obligations that may be charged to the beneficiary or give rise to liability beyond the value of these units of account.
The following information must be included in the notice:
I hereby inform you of the option you have, as the potential beneficiary of a life insurance contract of which I am the subscriber, to irrevocably opt for the delivery of securities, units or shares not traded on a regulated market or units or shares in alternative investment funds, instead of a cash settlement, in accordance with the provisions of article L. 131-1 of the Insurance Code.
If you opt to receive such securities, units or shares, you irrevocably waive the right to cash payment of the capital or guaranteed annuity expressed in units of account when the policy is terminated, in the event that the beneficiary clause is exercised.
I would like to point out that these securities, units or shares, the characteristics of which are attached to this notice, may change before the contract is settled and I would like to inform you that the value of these securities, units or shares may fluctuate, both upwards and downwards, and that there is a liquidity risk associated with holding these securities, units or shares; there is no guarantee that you will receive a cash equivalent for these securities, units or shares at a later date. In addition, certain units of account that may be converted into securities, units or shares may be associated with debts or obligations for which you may be liable or for which you may incur liability in excess of the value of these units of account. When the contract is unwound, you may ask the insurer to inform you not only of the equivalent value in euros of these units of account but also of any associated debts or obligations, before accepting the benefit.
Exercising this option to surrender securities, units or shares does not imply acceptance of the contract's beneficiary clause, in accordance with the terms of the second paragraph of 2° of article L. 131-1 of the Insurance Code.
If you decide to exercise this option, you must use the attached notification form. The insurer will be notified of the exercise of the option by registered letter or electronic registered mail. To exercise this option to surrender securities, units or shares, you have a period of between the tenth and sixtieth day following the date of receipt of this notice. If you fail to notify the insurer, you will be deemed to have refused to exercise this option. The option is deemed to have been exercised on the date of receipt of the notification form by the insurer.
II - In the absence of any express mention in the contract that the option mentioned in 2° of article L. 131-1 does not apply to the beneficiary, the notice mentioned in the last paragraph of article R. 132-5-7 includes the information provided for in a to d and g of I. The following information is also included in the notice:
The subscriber of the life insurance policy of which you are the beneficiary has irrevocably opted to receive securities, units or shares not traded on a regulated market or units or shares in alternative investment funds, in accordance with the provisions of article L. 131-1 of the Insurance Code. This option will also apply to you if you accept the beneficiary clause.
If you accept the beneficiary clause, you will not be able to request cash payment of the capital or guaranteed annuity expressed in these units of account when the contract is settled.
Certain units of account that may be converted into securities, units or shares may be associated with the existence of debts or obligations for which you may be liable or for which you may incur liability in excess of the value of these units of account. When the contract is unwound, before accepting the benefits, you may ask the insurer to inform you not only of the equivalent value in euros of the units of account but also of any associated debts or obligations.
