French Insurance Code
In forceTemporary insurance policies in the event of death, as well as immediate life annuities or annuities in payment, may not be reduced or surrendered. Survivor's capital and survivor's annuity insurance, insurance in the event of life without counter-insurance and deferred life annuities without counter-insurance may not include surrender.
Life insurance contracts whose benefits are linked to the cessation of professional activity, including contracts covered by the supplementary pension scheme set up by the Caisse nationale de prévoyance de la fonction publique, do not include the possibility of surrender. Contracts covered by the supplementary pension scheme set up by the Caisse Nationale de Prévoyance de la Fonction Publique may, on the date of liquidation of the individual rights arising from the date of cessation of professional activity, provide for the possibility of surrender up to a limit of 20% of the value of the individual rights resulting from these contracts. The group insurance agreement known as the "complémentaire retraite des hospitaliers" (supplementary pension for hospital employees) may also provide, on the date of liquidation of individual rights occurring from the date of cessation of professional activity, a possibility of surrender up to a limit of 20% of the value of the individual rights guaranteed by the agreement on the date of liquidation. If a surrender option is available, the member receives, when he requests the settlement of his rights, information detailing the options available to him, the content of which is set by order of the Minister responsible for the economy. However, these contracts must provide for a surrender option in the event of one or more of the following events:
expiry of the policyholder's entitlement to unemployment benefit following involuntary loss of employment, or the fact that a policyholder who has been a director, member of the management board or member of the supervisory board, and has not settled his or her pension under a compulsory old-age insurance scheme, has not held an employment contract or a corporate office for at least two years from the date of non-renewal of his or her corporate office or his or her dismissal;
the insured ceases to be self-employed following a court-ordered liquidation in accordance with the provisions of Book VI of the Commercial Code, or any situation that justifies such a buy-out according to the president of the commercial court where a conciliation procedure as referred to inarticle L. 611-4 of the Commercial Code has been set up, who makes the request with the insured's agreement;
-disability of the insured person corresponding to classification in the second or third categories provided for inarticle L. 341-4 of the Social Security Code;
-death of the insured's spouse or partner in a civil solidarity pact;
the insured's over-indebtedness as defined inarticle L. 330-1 of the French Consumer Code, at the insurer's request, either by the chairman of the commission for the over-indebtedness of private individuals, or by the judge when the release of the individual rights resulting from these contracts appears necessary to pay off the insured's debts.
Individual rights arising from group life insurance contracts whose benefits are linked to the cessation of professional activity, including contracts covered by the supplementary pension scheme set up by the Caisse nationale de prévoyance de la fonction publique, are transferable under conditions set by decree.
When the group life assurance contract is opened in the form of a retirement savings plan mentioned in article L. 224-1 of the Monetary and Financial Code, the provisions of this article apply subject to those of Chapter IV of Title II of Book II of the Monetary and Financial Code.
Where the group life assurance contract is opened in the form of a French sub-account of the pan-European individual retirement savings product mentioned in Article L. 225-1 of the same Code, this Article applies subject to Chapter V of Title II of Book II of the Monetary and Financial Code.
For other life insurance policies and capitalisation operations, the insurer may not refuse the reduction or surrender. However, the contract may stipulate that the commitments covered by Chapter IV may not be surrendered during a period which may not exceed a period set by decree in the Conseil d'Etat, except when one or more of the events mentioned in the third to seventh paragraphs occur.
The insurer may automatically substitute surrender for reduction if the surrender value is less than an amount set by decree.
