Are Group Insurance Contracts Taxable?

(C.A.A. Paris dated February 2, 1995, nø 94-160, Min. du Budget c/ Societe Generale: cmtel 4917, with the conclusions of the "Commissaire du Gouvernement" Micheline Martel)

Summary:

The stability reserve created by mutual agreement between the subscribers to a group insurance and the insurer, especially in order to avoid premium increases during the period of execution of the agreement, represents an accrued receivable for the subscriber who is therefore taxable on it.

Comments:

The group insurance contracts are subscribed by companies in order to induce certain people to adhere to the agreement: the most important group insurance contracts are retirement insurance for employees and life and disability insurance of the borrower.