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The recent strengthening of the framework for life insurance

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  1. Corporate Overview
    1. Background
    2. Sectors of activity
    3. The key figures
    4. The organization of the group
  2. The operations of the IKEA Group
    1. The leader's personality and the "IKEA spirit"
    2. The IKEA concept
    3. Analysis of the group's strategy
    4. The competition
  3. The internationalization strategy of the IKEA Group
    1. Why internationalize?
    2. The phases of internationalization of the IKEA Group

A third of household financial wealth is now invested in life insurance. Originally it was used to insure the life of the crew of the ship as they routinely encountered great hazards. Life insurance has now become commonplace and is purchased outside of any risk, and is considered to be a mere investment. Its history and genesis had been affected particularly by the Christian dogma (prohibition of speculation about death of oneself and others).

It was affected by the establishment by law of March 1951 by the first tax benefits for holders of life insurance. Its successive developments have made it the preferred placement of the French, who are often unaware of the mechanism. It can be defined as a contract signed with the insurer by which the latter obligates himself to a person (the purchaser), upon payment of a premium to be paid as a lump sum or an annuity to the insured and in case of death of the latter, to a designated third party (the beneficiary).

If it appears to involve four people, in most cases, an identification between the subscriber, insured and beneficiary in the event of death, limits the number of actors to three: the policyholder, the insurer and the beneficiary (in case of death). It involves two mechanisms that make it a complex contract. On the one hand, as regards its effects in case of death, it is regarded as a stipulation for another.

The mechanism is known to the Civil Code which incorporates the same in its Article 1121. This is the beneficiary clause, governed by special provisions of the Insurance Code. Under Article L 132-8 of the Insurance Code, "The capital or annuity insured may be payable upon the death of the insured to one or more specified beneficiaries" (paragraph 1). Paragraph 2 states that it is sufficient that the person is sufficiently defined to be identifiable at the date of payment is cash or capital because the beneficiary clause.

On the other hand, as regards its effects in cases of life it is a simple matter of capitalization, consisting of a remittance to the insurer within a certain period against payment.
A free acceptance by the beneficiary of the contract (1) follows the legal framework of the mechanism, a frame protector of the interests of the subscriber (2).

A dangerous device: Before the Act of December 17, 2007, the acceptance by the beneficiary of life insurance policy was not regulated in its way as dangerous in its effects.

Thus, the beneficiary of the policy was free to accept the benefit. To do this, it was enough to send to the insurer or the bank holding the contract letter with acknowledgment of receipt indicating acceptance.
This could therefore be accepted without the knowledge of the contractor, who was not automatically notified. The consequences of this acceptance were high, since they resulted in ?locking" of the contract: the subscriber could not change the beneficiary without his consent.

Tags: Household financial wealth, life insurance, Christian dogma, successive developments, Civil Code, Insurance Code, beneficiary

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