Instruction No. 2017-I-15 of July 24, 2017 on the submission of the mandatory annual report regarding life insurance contracts with benefits linked to the cessation of professional activity

PRUDENTIAL CONTROL AND RESOLUTION AUTHORITY

Instruction No. 2017-I-15 on the submission of the mandatory annual report regarding life insurance contracts whose benefits are linked to the cessation of professional activity

The Prudential Control and Resolution Authority, Having regard to Article 115 of Law No. 2016-1691 of December 9, 2016, codified in Articles L. 132-9-5 of the Insurance Code and L. 223-10-4 of the Mutual Code; Having regard to Article L. 612-24 of the Monetary and Financial Code; Having regard to the opinion of the Prudential Affairs Consultative Committee of July 20, 2017, DECIDES

Article 1 The following are hereinafter referred to as "subject entities":

• Companies carrying out direct insurance activities mentioned in Article L. 310-1 of the Insurance Code and companies mentioned in the last paragraph of the same article;
• Mutual societies and unions that carry out operations falling under item 1°) of I of Article L. 111-1 of the Mutual Code;
• Welfare institutions and unions that carry out operations falling under Article L. 931-1 of the Social Security Code;
• Persons mentioned in Article L. 612-2 III of the Monetary and Financial Code exercising in France under the freedom of establishment.

Subject entities are exempt from responding if they have never carried out activity involving life insurance contracts whose benefits are linked to the cessation of professional activity.

Professional supplementary pension funds defined by Article L. 381-1 of the Insurance Code and assimilated to life insurance companies by Article L. 381-4 of the same code are, with regard to the contracts they subscribe to, subject to this instruction. The reference to life insurance contracts is understood as the reference to the contracts subscribed to by these funds.

Article 2 Subject entities shall annually prepare the report defined, as the case may be, in Article L. 132-9-5 of the Insurance Code or in Article L. 223-10-4 of the Mutual Code, which specifies the number and outstanding value of unsettled contracts for which the member has exceeded the retirement age, as well as the measures implemented to inform them of their rights.

Regarding information concerning the number and outstanding value of unsettled contracts for which the member has exceeded the retirement age, the information shall be communicated to the Prudential Control and Resolution Authority via the submission of the mandatory annual report regarding abandoned life insurance contracts, under the conditions provided for by Instruction No. 2016-I-26, issued for the application of Articles 3 and 4 of Law No. 2014-617 of June 13, 2014.

Regarding the description of the measures implemented by subject entities to ensure information on the rights associated with life insurance contracts whose benefits are linked to the cessation of professional activity, the information shall be communicated to the Prudential Control and Resolution Authority via the dedicated spaces of the "OneGate" electronic portal of the Bank of France. The elements must be submitted exclusively in the electronic form thus provided.

This description includes the following information: (i) The categories of contracts in the portfolio concerned by the entity's declarations (for example: contracts of type art.83, Madelin, PERP, etc.); (ii) The measures adopted to ensure the possibility of contacting the member and raising their awareness of their rights with a view to their settlement; (iii) The member information device put in place subsequent to the end of the contract or subsequent to the settlement date of the pension in a mandatory old-age insurance scheme (or failing that, the date mentioned in Article L. 161-17-2 of the Social Security Code): methods of transmitting the information, content of the information, dates of sending the information, periodicity, etc.; (iv) Specific diligence implemented when contact with the member could not be established (processing of undelivered mail, actions to identify deceased members and search for beneficiaries, etc.), as well as actions carried out to prevent these situations of abandonment (e.g.: device for monitoring the situation of members over time, mechanism for formalized and regular exchanges between subscribing companies and the insurer, etc.); (v) Difficulties encountered in achieving the effective settlement of contracts past the end of the contract or the settlement date of the pension in a mandatory old-age insurance scheme (or failing that, the date mentioned in Article L. 161-17-2 of the Social Security Code) and action plans implemented to remedy them. The entity provides details on the categories of contracts concerned by these difficulties and their representative share (in % of the outstanding value and the number of contracts whose benefits are linked to the cessation of professional activity); (vi) The internal control device for the proper execution of obligations and procedures put in place; (vii) Other information to be declared to the Prudential Control and Resolution Authority, if any.

This information must be submitted each year to the Prudential Control and Resolution Authority by April 15 at the latest, after validation by a senior manager of the subject entity or by the person they have authorized for this purpose.

Article 3 This instruction is published in the official register of the Prudential Control and Resolution Authority and enters into application the day following its publication.

Paris, July 24, 2017

For the Sectoral Sub-College of Insurance The President, Bernard DELAS