Chapter IV: Commitments giving rise to a diversification provision

Life insurance undertakings are authorised to enter into commitments in the event of life or death, with the exception of temporary insurance commitments in the event of death, under the conditions set out in this chapter. These commitments may include the guarantee of an annuity or a capital sum at maturity under conditions specified by a decree in the Conseil d’Etat. They give rise to the constitution of a diversification…

By way of derogation from the provisions of the Commercial Code relating to company accounts, the insurance undertaking shall establish one or more allocation sub-accounts for the commitments covered by this chapter. The commitments referred to in 1° and 2° of Article L. 134-1 may be grouped together in the same sub-accounting system.

In the event of insufficient representation of the commitments referred to in 1° of Article L. 134-1, the insurance undertaking shall perfect such representation by contributing assets representing its reserves or provisions other than those representing its regulated commitments. Where the level of representation of the diversification provision for the commitments referred to in 1° above so permits, the insurance undertaking shall reallocate assets from the diversification provision to the…

Without prejudice to the rights of holders of claims arising from the management of these operations, no creditor of the insurance undertaking other than the policyholders, members, insured persons or beneficiaries under the operations covered by this chapter may claim any right whatsoever over the assets and rights resulting from the accounting records established pursuant to article L. 134-2, even on the basis of Book VI of the Commercial Code,…

A decree in the Conseil d’Etat shall specify the conditions of application of this chapter.