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The Friendly Societies (Insurance Business) Regulations 1994

S.I. 1994/1981 · Made 20 July 1994

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

FRIENDLY SOCIETIES

Made 20th July 1994

Laid before Parliament 1st August 1994

Coming into force 1st September 1994

The Friendly Societies Commission, being a Department designated for the purposes of section 2(2) of the European Communities Act 1972f1 in relation to the authorisation of the carrying on by friendly societies of insurance business and the regulation of such business and its conduct and in relation to anything supplemental or incidental to such mattersf2, in exercise of the powers conferred by that section and, with the consent of Treasury, in exercise of the powers conferred upon it by section 45(1) and (2), 46(1), (3), and (8), 48(1), (2), (6), and (7), 49(1), 56(1), (2) and (5) and 121(3) of the Friendly Societies Act 1992f3 and of all other powers enabling it in that behalf, hereby makes the following Regulations:

Annotations to the whole text

Footnotes

f1

1972 c. 68.

f2

The European Communities (Designation) (No. 5) Order 1992 (S.I. 1992/3197).

f3

1992 c. 40; section 119(1) contains a definition of "the Commission".

Contents

  1. Part I: PRELIMINARY
  2. 1Citation and commencement
  3. 2Interpretation: general
  4. Part II: MARGINS OF SOLVENCY
  5. 3Application: Part II
  6. 4Required margin of solvency
  7. 5Guarantee fund and minimum guarantee fund
  8. 6Minimum guarantee fund: long term business
  9. 7Minimum guarantee fund: general business
  10. 8Valuation of solvency margins
  11. 9Implicit items: future surpluses
  12. 10Implicit items: zillmerising
  13. 11Implicit items: hidden reserves
  14. Part III: MATCHING AND LOCALISATION
  15. 12Application: Part III
  16. 13Matching: general requirement
  17. 14Matching: property linked benefits
  18. 15Matching: currency of general business liabilities
  19. 16Matching: exception for certain liabilities
  20. 17Localisation
  21. 18Exclusions from regulations 13 to 17
  22. Part IV: VALUATION OF ASSETS
  23. 19Interpretation: Part IV
  24. 20Application: Part IV
  25. 21Shares in and debts due or to become due from dependants
  26. 22Valuation of assets and liabilities of dependants for the purposes of regulation 21
  27. 23Debts and other rights
  28. 24Land
  29. 25Equipment
  30. 26Unlisted securities
  31. 27Unit trusts
  32. 28Listed Investments
  33. 29Reversionary interests etc
  34. 30Derivative contracts
  35. 31Other assets
  36. 32Assets to be taken into account only to a specified extent
  37. Part V: DETERMINATION OF LIABILITIES
  38. 33Interpretation: Part V
  39. 34Application: Part V
  40. 35Long term and general business
  41. 36Provision for adverse changes
  42. 37General business liabilities
  43. 38Long term liabilities
  44. 39Method of calculation
  45. 40Avoidance of future valuation strain
  46. 41Valuation of future premiums
  47. 42Acquisition expenses
  48. 43Rates of interest
  49. 44Rates of mortality and disability
  50. 45Expenses
  51. 46Options
  52. 47Contracts not to be treated as assets
  53. 48No credit for profits from voluntary discontinuance
  54. 49Nature and term of assets
  55. Part VI: CONDUCT OF LONG TERM BUSINESS
  56. 50Application: Part VI
  57. 51Linked long term contracts
  58. 52Statutory notice: long term business
  59. Part VII: STATISTICAL INFORMATION
  60. 53Interpretation: Part VII
  61. 54Application: Part VII
  62. 55Insurance statistics: EFTA States
  63. 56Insurance statistics: member States
  64. 57Regulations 55 and 56: supplementary provisions
  65. 58Notification of non-provision of insurance or non-carrying on of business
  66. 59Default in complying with regulations 55 to 58
  67. Part VIII: MISCELLANEOUS
  68. 60Annual actuarial investigation: prescribed societies
  69. 61Annual investigation: signature of copy of abstract
  70. 62Transitional provision
  71. 63Revocations
  72. Signature
  73. Schedule 1: LONG TERM BUSINESS MARGIN OF SOLVENCY
  74. 1Long term classes I and II
  75. 2Long term classes III and VII
  76. 3Long term classes IV and VI
  77. 4Long term class V
  78. Schedule 2: GENERAL BUSINESS SOLVENCY MARGIN: FIRST METHOD OF CALCULATION (PREMIUM BASIS)
  79. 1Paragraph 1
  80. 2Paragraph 2
  81. 3Paragraph 3
  82. 4Paragraph 4
  83. 5Paragraph 5
  84. 6Paragraph 6
  85. 7Paragraph 7
  86. 8Paragraph 8
  87. 9Paragraph 9
  88. 10Paragraph 10
  89. 11Paragraph 11
  90. 12Paragraph 12
  91. 13Paragraph 13
  92. 14Paragraph 14
  93. 15Paragraph 15
  94. Schedule 3: GENERAL BUSINESS SOLVENCY MARGIN: SECOND METHOD OF CALCULATION (CLAIMS BASIS)
  95. 1Paragraph 1
  96. 2Paragraph 2
  97. 3Paragraph 3
  98. 4Paragraph 4
  99. 5Paragraph 5
  100. 6Paragraph 6
  101. 7Paragraph 7
  102. 8Paragraph 8
  103. 9Paragraph 9
  104. 10Paragraph 10
  105. Schedule 4: VALUE OF DEPENDANTS
  106. Part I: THE SUPPLEMENTARY AMOUNT
  107. 1Paragraph 1
  108. 2Paragraph 2
  109. Part II: FURTHER PROVISIONS AND MODIFICATIONS OF THE REGULATIONS APPLICABLE WITH RESPECT TO THE DETERMINATION OF THE VALUE OF DEPENDANTS
  110. 3Paragraph 3
  111. 4Paragraph 4
  112. 5Paragraph 5
  113. Schedule 5: ASSETS TO BE TAKEN INTO ACCOUNT ONLY TO A SPECIFIED EXTENT
  114. IPart I
  115. Part II
  116. 18Paragraph 18
  117. 19Paragraph 19
  118. Schedule 6: PERMITTED LINKS
  119. Part I: DESCRIPTIONS OF PROPERTY BY REFERENCE TO WHICH BENEFITS MAY BE DETERMINED
  120. 1Paragraph 1
  121. 2Paragraph 2
  122. 3Paragraph 3
  123. 4Paragraph 4
  124. 5Paragraph 5
  125. 6Paragraph 6
  126. 7Paragraph 7
  127. 8Paragraph 8
  128. 9Paragraph 9
  129. 10Paragraph 10
  130. 11Paragraph 11
  131. Part II: INDICES BY REFERENCE TO WHICH BENEFITS MAY BE DETERMINED
  132. 12Paragraph 12
  133. Part III
  134. 13Paragraph 13
  135. 14Paragraph 14
  136. 15Paragraph 15
  137. 16Paragraph 16
  138. Schedule 7STATUTORY NOTICE
  139. Schedule 8NOTICE OF CANCELLATION
  140. Explanatory note