Regulatory Alerts2011-05-06
Recommendation 2011-R-03 of May 6, 2011, on the marketing of life insurance contracts in units of account consisting of debt securities issued by an entity financially linked to the insurance company, modified on December 6, 2019
The ACPR issues this recommendation to manage potential conflicts of interest arising from the marketing of life insurance unit-linked contracts composed of debt securities issued by entities financially linked to the insurer. It requires insurers and intermediaries to obtain independent objective evaluations of interest rates at issuance and to ensure the objective valuation of units of account, particularly regarding redemption values. The document mandates specific disclosures regarding potential conflicts of interest and the implementation of internal controls to safeguard policyholders' interests.
Share