Title IV: Accounting and statistical provisions

The mathematical provisions of life assurance, capitalisation and nuptial-natality insurance contracts with periodic premiums must be calculated taking into account the charges for acquisition costs in the premium payer’s commitment. The provision resulting from the above calculation may not be negative, lower than the surrender value of the contract or lower than the provision corresponding to the reduced capital.

For the purposes of this article, the duration of the liabilities of an insurance undertaking is a prudent estimate of the weighted average maturity of future payments relating to regulated commitments. This estimate must be a whole number and may not exceed 8. This duration is calculated annually for the purposes of Article A. 343-1-3.

When the company decides to apply the provisions of article R. 343-6, it shall open an account, the balance of which may not at any time be in credit or exceed the total unrealised loss referred to in article R. 343-5, as follows: a) This account is debited with a sum equal to the amount of the allocation to the provision for credit risk for the financial year; b) The…