PART 3

Friendly societies carrying on long-term business

Exempt BLAGAB or eligible PHI business

Societies with no provision for assuring gross sums exceeding £2,000 etc
156
1
This section applies to a friendly society if its rules make no provision for it to carry on BLAGAB or eligible PHI business, or other long-term business, consisting of—
a
the assurance of gross sums exceeding £2,000, or
b
the granting of annuities of annual amounts exceeding £416.
2
The table in section 155 applies in relation to a friendly society to which this section applies as if, in the final row of that table—
a
the reference to £500 were a reference to £2,000, and
b
the reference to £104 were a reference to £416.
3
If at any time a friendly society to which this section applies amends its rules so as to cease to be such a friendly society, any part of its BLAGAB or eligible PHI business which—
a
relates to contracts made before that time, and
b
immediately before that time was exempt BLAGAB or eligible PHI business,
continues to be exempt BLAGAB or eligible PHI business for the purposes of this Part.
4
If at any time a friendly society to which this section does not apply amends its rules so as to become a friendly society to which this section applies, any part of its BLAGAB or eligible PHI business which—
a
relates to contracts made before that time, and
b
immediately before that time was not exempt BLAGAB or eligible PHI business,
continues not to be exempt BLAGAB or eligible PHI business for the purposes of this Part.
5
If at any time a friendly society to which this section does not apply acquires by way of transfer of engagements or amalgamation from another friendly society any BLAGAB or eligible PHI business which—
a
relates to contracts made before that time, and
b
immediately before that time was exempt BLAGAB or eligible PHI business,
that business continues to be exempt BLAGAB or eligible PHI business for the purposes of this Part.
6
If at any time a friendly society to which this section applies acquires by way of transfer of engagements or amalgamation from another friendly society any BLAGAB or eligible PHI business which—
a
relates to contracts made before that time, and
b
immediately before that time was not exempt BLAGAB or eligible PHI business,
that business continues not to be exempt BLAGAB or eligible PHI business for the purposes of this Part.