2.—(1) Regulation 1(2) of the principal Regulations is amended as follows.
(2) In the definitions of “buy”, “sell” etc., for “contract of general insurance”(1) substitute “qualifying contract of insurance”.
(3) Immediately before the definition of “other counterparties”, insert—
““contract of long-term care insurance” means a contract of insurance in respect of which the following conditions are met—
the purpose (or one of the purposes) of the policy is to protect the policyholder against the risk of becoming unable to live independently without assistance in consequence of a deterioration of mental or physical health, injury, sickness or other infirmity;
benefits under the contract are payable in respect of—
services,
accommodation, or
goods,
which are (or which is) necessary or desirable due to a deterioration of mental or physical health, injury, sickness or other infirmity;
the contract is expressed to be in effect until the death of the policyholder (except that the contract may give the policyholder the option to surrender the policy); and
the benefits under the contract are capable of being paid throughout the life of the policyholder;”.
The words “contract of general insurance” were inserted by S.I. 2003/1476, art. 14(2).