Statutory Instrument 1994 No. 1981

      The Friendly Societies (Insurance Business) Regulations 1994


      © Crown Copyright 1994

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STATUTORY INSTRUMENTS

1994 No. 1981

FRIENDLY SOCIETIES

The Friendly Societies (Insurance Business) Regulations 1994

Made 20th July 1994
Laid before Parliament 1st August 1994
Coming into force 1st September 1994


ARRANGEMENT OF REGULATIONS

PART I
PRELIMINARY
Regulation
1.  Citation and commencement
2.  Interpretation: general
PART II
MARGINS OF SOLVENCY
3.  Application: Part II
4.  Required margin of solvency
5.  Guarantee fund and minimum guarantee fund
6.  Minimum guarantee fund: long term business
7.  Minimum guarantee fund: general business
8.  Valuation of solvency margins
9.  Implicit items: future surpluses
10.  Implicit items: zillmerising
11.  Implicit items: hidden reserves
PART III
MATCHING AND LOCALISATION
12.  Application: Part III
13.  Matching: general requirement
14.  Matching: property linked benefits
15.  Matching: currency of general business liabilities
16.  Matching: exception for certain liabilities
17.  Localisation
18.  Exclusions from regulations 13 to 17
PART IV
VALUATION OF ASSETS
19.  Interpretation: Part IV
20.  Application: Part IV
21.  Shares in and debts due or to become due from dependants
22.  Valuation of assets and liabilities of dependants for the purposes of regulation 21
23.  Debts and other rights
24.  Land
25.  Equipment
26.  Unlisted securities
27.  Unit trusts
28.  Listed investments
29.  Reversionary interests etc.
30.  Derivative contracts
31.  Other assets
32.  Assets to be taken into account only to a specified extent
PART V
DETERMINATION OF LIABILITIES
33.  Interpretation: Part V
34.  Application: Part V
35.  Long term and general business
36.  Provision for adverse changes
37.  General business liabilities
38.  Method of calculation
39.  Long term liabilities
40.  Avoidance of future valuation strain
41.  Valuation of future premiums
42.  Acquisition expenses
43.  Rates of interest
44.  Rates of mortality and disability
45.  Expenses
46.  Options
47.  Contracts not to be treated as assets
48.  No credit for profits from voluntary discontinuance
49.  Nature and term of assets
PART VI
CONDUCT OF LONG TERM BUSINESS
50.  Application: Part VI
51.  Linked long term contracts
52.  Statutory notice: long term business
PART VII
STATISTICAL INFORMATION
53.  Interpretation: Part VII
54.  Application: Part VII
55.  Insurance statistics: EFTA States
56.  Insurance statistics: member States
57.  Regulations 55 and 56: supplementary provisions
58.  Notification of non-provision of insurance or non-carrying on of business
59.  Default in complying with regulations 55 to 58
PART VIII
MISCELLANEOUS
60.  Annual actuarial investigation: prescribed societies
61.  Annual investigations: signature of copy of abstract
62.  Transitional provision
63.  Revocations

SCHEDULES

  Schedule 1—  Long term business margin of solvency

  Schedule 2—  General business solvency margin: first method of calculation (premium basis)

  Schedule 3—  General business solvency margin: second method of calculation (claims basis)

  Schedule 4—  Value of dependants

  Schedule 5—  Assets to be taken into account only to a specified extent

  Schedule 6—  Permitted links

  Schedule 7—  Statutory notice

  Schedule 8—  Notice of cancellation

 

Explanatory Note


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Prepared 20th September 2000