French Insurance Code
In forceFor the application of Article R. 134-2, notwithstanding Article 142-3 of Regulation No. 2015-11 of 26 November 2015 of the Autorité des normes comptables relating to the accounting framework for insurance undertakings, mathematical provisions are calculated using a rate that may be higher than that used for the tariff and at most equal to an amount calculated using either of the methods shown below:
1° For each commitment, 90% of the latest TECn index published by the Banque de France, where n corresponds to the maturity of the policyholder's guarantee. Where the maturity of the policyholder's or member's guarantee does not correspond to an available TECn index, a linear interpolation is made between the two available TECn indices most directly surrounding the maturity ;
2° 90% of the latest TECn index published by the Banque de France, where n corresponds to the duration of all the commitments covered by 1° of article L. 134-1 in the auxiliary allocation accounts. Where this duration does not correspond to an available TECn index, a linear interpolation is performed between the two available TECn indices that most directly correspond to the duration.
For a maturity or duration greater than the maximum term available for the TECn, the rate used may not exceed the TEC for the maximum term.
The choice of method under 1° or 2° applies to all the commitments in the same allocation sub-account. This choice cannot be reversed.
The rate chosen by the insurance undertaking may not be negative. If the ceiling resulting from the application of the method it has chosen is negative, the company uses the rate of 0%.
