The Friendly Societies (Long Term Insurance Business) Regulations 1987

1. Introductory Text

2. PART I Preliminary

   1. 1. Citation and commencement

   2. 2. Interpretation: general

   3. 3. Application

3. PART II Authorisation

   1. 4. Restrictions on carrying on business

   2. 5. Authorisation of existing societies

   3. 6. Authorisation of new societies

   4. 7. Time for decision on application under Regulation 6

   5. 8. Scope of authorisation

   6. 9. Extension of authorisation

   7. 10. Refusal of authorisation

4. PART III Regulation of Authorised Societies

   1. Solvency Provisions

      1. 11. Annual actuarial investigation

      2. 12. Required margin of solvency

      3. 13. Long term classes I and II

      4. 14. Long term classes III and VII

      5. 15. Long term classes IV and VI

      6. 16. Long term class V

      7. 17. Supplementary business

      8. 18. Aggregation where more than one margin of solvency

      9. 19. Guarantee fund and minimum guarantee fund

      10. 20. Minimum guarantee fund

      11. 21. Valuation of solvency margins

      12. 22. Implicit items: future surpluses

      13. 23. Implicit items: zillmerising

      14. 24. Implicit items: hidden reserves

   2. Matching and localisation of assets

      1. 25. Matching

      2. 26. Localisation

      3. 27. Exclusion

   3. Partial transfer

      1. 28. Transfer of part of long term business

   4. Investment

      1. 29. Investments of authorised societies

5. PART IV Safeguard Measures

   1. 30. Restoration plan

   2. 31. Short-term financial scheme

6. PART V Withdrawal of Authorisation

   1. 32. Withdrawal of authorisation in respect of new business

   2. 33. Procedure on withdrawal

7. PART VI Valuation of Assets

   1. 34. Interpretation: Part VI

   2. 35. Application: Part VI

   3. 36. Debts and other rights

   4. 37. Land

   5. 38. Equipment

   6. 39. Unlisted securities

   7. 40. Unit trusts

   8. 41. Listed investments

   9. 42. Life interests, reversionary interests etc.

   10. 43. Other assets

   11. 44. Assets to be taken into account only to a specified extent

8. PART VII Determination of Liabilities

   1. 45. Interpretation: Part VII

   2. 46. Application: Part VII

   3. 47. General

   4. 48. Long term liabilities

   5. 49. Nature and term of assets

   6. 50. Avoidance of future valuation strain

   7. 51. Valuation of future premiums

   8. 52. Acquisition expenses

   9. 53. Rates of interest

   10. 54. Rates of mortality and disability

   11. 55. Expenses

   12. 56. Options

   13. 57. Contracts not to be treated as assets

   14. 58. No credit for profits from voluntary discontinuance

9. PART VIII Miscellaneous and General

   1. 59. Information

   2. 60. Valuations, returns and fees

   3. 61. Penalties

   4. 62. Power to modify requirements in relation to particular societies

   5. 63. Deposits

   6. 64. Exercise of the Chief Registrar’s functions

   7. 65. Amendment of rules

10. Signature

11. SCHEDULES

    1. Schedule 1

       —Classes of long term business and supplementary business

    2. Schedule 2

       —Information required with application for authorisation

    3. Schedule 3

       —Supplementary business—solvency margin: Premium basis of calculation

    4. Schedule 4

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

12. Explanatory Note