(This note is not part of the Regulations)
These Regulations amend Part IX of the Insurance Companies Regulations 1994 (“the 1994 Regulations”), which is concerned with the determination of an insurance company’s liabilities, this being relevant to the margin of solvency required to be maintained by an insurance company in accordance with section 32(1) of the Insurance Companies Act 1982.
Regulation 3 amends the 1994 Regulations. Paragraph (1) makes a clarificatory amendment to regulation 64(3). Paragraph (2) makes changes to regulation 67, to permit the use of a gross premium method of valuation where the insured is not eligible to participate in surplus, and to offer alternative methods of valuing premiums where the terms of an insurance contract are changed. Paragraph (3) amends regulation 69(9), with respect to assumptions to be made about the yields of assets, and adjusts a reference to take account of changes to the compilation of the indices referred to. Paragraph (4) amends regulation 72 so as to reflect the change made by paragraph (1) to regulation 64.
Regulation 4 makes a consequential amendment to Schedule 4 to the Insurance Companies (Accounts and Statements) Regulations 1996 (abstract of valuation report prepared by the appointed actuary).