French Insurance Code

Funds raised from subscriptions must be paid in full to the associations, subject only to the deduction of statutory management and acquisition costs. The funds of each association must be managed separately and must not be confused in any way with those of other associations.

Association funds must be invested within one month of the date of collection at the latest. The date of purchase and the price of the securities must be evidenced by means of a slip issued by the authorised intermediary, which must also mention the associations for whose benefit the securities were acquired. Proceeds, income and repayments must be invested under the same conditions.

For tontines falling within the scope of Article L. 310-3-2 whose solvency margin does not reach the regulatory minimum, and for tontines falling within the scope of Article L. 310-3-1 whose eligible own funds are insufficient to cover one of the two requirements mentioned in Articles L. 352-1 and L. 352-5, the Autorité de contrôle prudentiel et de résolution may require that the securities belonging to the associations formed by…

Associations in the event of survival or death created by tontines may only be validly constituted if they have at least two hundred members.

No survivorship association may have a duration of less than ten years or more than twenty-five years, counted from 1 January of the year in which it was opened. The period during which a survivorship association remains open must be at least five years less than its total duration.

The opening and constitution of each association in the event of survival, as well as the closing of the registration lists for the said association, must be recorded by deliberation of the company’s Board of Directors.

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…