Die Rechnungslegungsvorschriften für die Lebensversicherungsgesellschaften in Frankreich

Abstract

The rendering of accounts of all French insurance companies, with the exception of reinsurance companies, is governed by the „Decret-Loi“ (Executive Order) of June 14, 1938, and subsequent Government ordinances. By this fundamental document Government control was extended to the entire insurance industry in France, the essential provisions thereof being embodied in the Ordinance of December 30, 1938. The Accounts Procedure for insurance undertakings itself was defined by the Ordinance of July 29, 1939, providing for the use of specific forms for Annual Statements, Balance Sheets, General Profit and Loss Accounts and for all other reports and annexes. It was based directly on the general principles of the Executive Order of June 14, 1938 which aimed at the clear disclosure of each company’s total liabilities without deduction of reinsurance and which determined the admitted assets to cover the liabilities for technical reserves. This legal framework has proved expedient for more than 20 years and has produced a clear and uniform analysis of the results and reports of all companies operating in France. Certain forms, for instance, show immediately whether or not the company’s liabilities are covered by assets exactly as specified by law. French subsidiaries of foreign companies are subject to the same regulations.