4.—(1) Regulation 3 above shall not apply to a company carrying on credit insurance business where the premiums or contributions receivable in any financial year in respect of its credit insurance business in the United Kingdom are less than 4 per cent of the total premiums or contributions receivable by it in the United Kingdom in that financial year and less than 2,500,000 units of account.
(2) For the purposes of paragraph (1) above “premiums or contributions receivable” means the premiums or contributions recorded in the company’s books in respect of a financial year as due to it in respect of contracts relating to credit insurance business commencing in that year or commencing in earlier financial years but not accounted for in the company’s revenue account prior to that financial year, whether or not received by the company during that financial year, after deducting discounts, refunds and rebates of premiums as recorded in respect of the same period and after deducting premiums for reinsurance ceded in respect of that period; and for the purpose of determining whether a premium is due no account shall be taken of any credit arrangements made in respect thereof.