17Actuarial investigation of long term business
(1)Section 14 of the 1974 Act shall be amended as follows.
(2)In subsection (1)(a) (which requires an actuarial investigation of a company's long term business at least once in every three years) for the words from " three years " to " byelaws " there shall be substituted the words " period of twelve months " , and the words from " including " to " thereof " shall be omitted.
(3)After subsection (1) there shall be inserted—
“(1A)An investigation to which subsection (1)(b) above relates shall include—
(a)a valuation of the liabilities of the company attributable to its long term business ; and
(b)a determination of any excess over those liabilities of the assets representing the fund or funds maintained by the company in respect of that business and, where any rights of any long term policy holders to participate in profits relate to particular parts of such a fund, a determination of any excess of assets over liabilities in respect of each of those parts.”.
(4)For subsection (2) there shall be substituted—
“(2)At least once in every period of five years an insurance company to which subsection (1) above applies shall prepare a statement of its long term business at the date to which the accounts of the company are made up for the purposes of an investigation in pursuance of paragraph (a) of that subsection.”.