{
  "url": "https://openlegislation.uk/friendly-societies-insurance-business-regulations-1994/schedule-1/paragraph-2",
  "json_url": "https://openlegislation.uk/friendly-societies-insurance-business-regulations-1994/schedule-1/paragraph-2.json",
  "legislation": "uksi/1994/1981",
  "legislation_title": "The Friendly Societies (Insurance Business) Regulations 1994",
  "legislation_url": "https://openlegislation.uk/friendly-societies-insurance-business-regulations-1994",
  "path": "schedule/1/paragraph/2",
  "kind": "paragraph",
  "number": "2",
  "heading": "Long term classes III and VII",
  "text": "(1) For long term business of class III or VII the required margin of solvency shall be determined in accordance with subparagraphs (2) to (5) below.\n(2) In so far as a society bears an investment risk, the first calculation shall be applied.\n(3) In so far as—\n(a) a society bears no investment risk; and\n(b) the total expired and unexpired term of the relevant contract exceeds five years; and\n(c) the allocation to cover management expenses in the relevant contract has a fixed upper limit which is effective as a limit for a period exceeding five years,\nthe first calculation shall be applied, but as if paragraph 1(2)(a) above contained a reference to 1 per cent. instead of 4 per cent.\n(4) If neither subparagraph (2) nor subparagraph (3) above applies, then, subject to subparagraph (5) below, the required margin of solvency is zero.\n(5) Where a society covers a death risk, a sum arrived at by applying the second calculation disregarding paragraph 1(4) and (5) shall be added to any required margin of solvency, including a required margin of solvency of zero, arrived at under subparagraph (2), (3) or (4) above.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1994/1981/schedule/1/paragraph/2",
    "retrieved_at": "2026-10-29T13:28:42.756083+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}