Book III: Companies

For a single tontine company, there must be a single association in the event of death. However, a second “counter-insurance” association, which must be separate from the first, may be set up for the sole purpose of offsetting the loss that may result from the death of members for subscribers to survival associations set up by the company.

The contributions due to the associations in the event of death are calculated taking into account the age of the members at the time they fall due and according to a rate based on a mortality table specified in the Articles of Association. They are proportional to the amount, determined by means of the said tariff, of the probable sum to be obtained at the time of distribution.

At the end of each association, a resolution of the company’s Board of Directors determines the distribution among the beneficiaries. A copy of this resolution, certified by the company director and by two members of the Board of Directors specially appointed for this purpose by the Board, is sent to the Autorité de contrôle prudentiel et de résolution (ACPR) together with a statement of the distribution in duplicate.

In the case of associations in the event of survival, the distribution concerns the entire assets of the association. It is made between the beneficiaries in proportion to the amount of their subscription. However, beneficiaries whose rights have been reduced as a result of the cessation of payment of the annual instalments due by the subscribers only participate in the distribution on the basis specified by the company’s articles of…

At the end of each year, the total assets of each association in the event of death are distributed among the beneficiaries of members who died during the year, subject only to the deductions which may be specified by the articles of association in accordance with 9° of article R. 322-155. The distribution is made in proportion to the sums corresponding to each contribution, in accordance with article R. 322-149….

Each survivorship association must be wound up within one year of its expiry. Associations in the event of death must be wound up at the end of each year.

The purpose of tontines is not to guarantee their members that the liquidation of an association will provide them with a predetermined sum.

Subject to the provisions of this Book, the articles of tontines must specify: 1° The conditions governing the formation and duration of associations in the event of survival and of associations in the event of death ; 2° The cessation, in the event of the death of the member, of the payment of annuities which the subscriber would still have to make to the associations in the event of survival;…

Participation in General Meetings is subject to the conditions set out in Article R. 322-58. However, for the election of delegates, member-policyholder groups are formed on the basis of associations.

Tontine companies must have start-up capital of at least €160,000.