French Insurance Code
In forceIn life insurance and personal accident insurance, the sums insured are fixed by the contract.
In the case of life insurance or capitalisation operations, the guaranteed capital or annuity may be expressed in units of account made up of transferable securities or assets offering sufficient protection for the savings invested and appearing on a list drawn up by decree by the Conseil d'Etat. The policyholder or beneficiary receives payment in cash. Securities or shares may be delivered, in compliance with the assets eligible to represent unit-linked commitments, subject to the following conditions:
1° The contracting party or beneficiary may opt to receive securities or units when these are traded on a regulated market, with the exception of securities or units which directly confer the right to vote at the general meeting of shareholders of a company listed on the official stock exchange. Where an undertaking for collective investment in transferable securities or a collective investment scheme covered by paragraphs 1 and 2, sub-paragraph 2 of paragraph 5 and paragraph 6 of sub-section 2, paragraph 2 or sub-paragraph 1 of paragraph 1 of sub-section 3 of Section 2 of Chapter IV of Title I of Book II of the Monetary and Financial Code has been split pursuant to Articles L. 214-7-4, L. 214-24-33, L. 214-8-7 or L. 214-24-41 of the same code, the insurer shall offer the policyholder or beneficiary the settlement corresponding to the shares or units of the undertaking resulting from the split-up and which has received the assets whose transfer would not have been in the interests of the shareholders or unit-holders, in the form of a remittance of the shares or units of that undertaking;
2° The contracting party may irrevocably opt at any time, with the agreement of the insurer, for the delivery of securities or units not traded on a regulated market, in particular units in risk or non-tradable mutual funds, at the time of surrender of the commitments expressed in units of account of a contract. In this case, this option is also deemed to apply to the beneficiary, unless expressly stated otherwise.
A beneficiary designated by the contract may also, under conditions defined by decree by the Conseil d'Etat, irrevocably opt for the delivery of such securities or shares in the event of the exercise of the beneficiary clause. The exercise of this option by the beneficiary does not imply acceptance of the benefit of the contract, within the meaning of article L. 132-9 of this code.
This payment in securities or shares which are not negotiable or traded on a regulated market may only be made in securities or shares which do not confer voting rights and on condition that the contracting party, his spouse or partner linked by a civil solidarity pact, their ascendants, their descendants or the contracting party's brothers and sisters have not held together or separately, directly or indirectly, over the five years preceding the payment, more than 10% of the securities or shares of the same entity as those remitted by the insurer;
3° The contracting party or a beneficiary designated by the contract may also irrevocably opt to receive the units or shares of alternative investment funds mentioned in 1° under the conditions set out in 2°.
