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The Friendly Societies (Long Term Insurance Business) Regulations 1987

S.I. 1987/2132 · Made 10 December 1987

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FRIENDLY SOCIETIES

Made 10th December 1987

Laid before Parliament 10th December 1987

Coming into force 1st January 1988

The Registry of Friendly Societies, being a Department designatedf1 for the purposes of section 2(2) of the European Communities Act 1972f2 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 thereto, in exercise of the powers conferred by that section, hereby makes the following Regulations:

Annotations to the whole text

Footnotes

f1

The European Communities (Designation) Order 1984 (S.I. 1984/353).

f2

1972 c. 68.

Contents

  1. Part I: PRELIMINARY
  2. 1Citation and commencement
  3. 2Interpretation—general
  4. 3Application
  5. Part II: AUTHORISATION
  6. 4Restrictions on carrying on business
  7. 5Authorisation of existing societies
  8. 6Authorisation of new societies
  9. 7Time for decision on application under regulation 6
  10. 8Scope of authorisation
  11. 9Extension of authorisation
  12. 10Refusal of authorisation
  13. Part III: REGULATION OF AUTHORISED SOCIETIES
  14. Solvency Provisions
  15. 11Annual actuarial investigation
  16. 12Required margin of solvency
  17. 13Long term classes I and II
  18. 14Long term classes III and VII
  19. 15Long term classes IV and VI
  20. 16Long term class V
  21. 17Supplementary business
  22. 18Aggregation where more than one margin of solvency
  23. 19Guarantee fund and minimum guarantee fund
  24. 20Minimum guarantee fund
  25. 21Valuation of solvency margins
  26. 22Implicit items: future surpluses
  27. 23Implicit items: zillmerising
  28. 24Implicit items: hidden reserves
  29. Matching and localisation
  30. 25Matching
  31. 26Localisation
  32. 27Exclusion
  33. Partial transfers
  34. 28Transfer of part of long term business
  35. Investment
  36. 29Investments of authorised societies
  37. Part IV: SAFEGUARD MEASURES
  38. 30Restoration plan
  39. 31Short-term Financial Scheme
  40. Part V: WITHDRAWAL OF AUTHORISATION
  41. 32Withdrawal of authorisation in respect of new business
  42. 33Procedure on Withdrawal
  43. Part VI: VALUATION OF ASSETS
  44. 34Interpretation: Part VI
  45. 35Application: Part VI
  46. 36Debts and other rights
  47. 37Land
  48. 38Equipment
  49. 39Unlisted securities
  50. 40Unit trusts
  51. 41Listed Investments
  52. 42Life interests, reversionary interests etc
  53. 43Other assets
  54. 44Assets to be taken into account only to a specified extent
  55. Part VII: DETERMINATION OF LIABILITIES
  56. 45Interpretation: Part VII
  57. 46Application: Part VII
  58. 47General
  59. 48Long term liabilities
  60. 49Nature and determination of assets
  61. 50Avoidance of future valuation strain
  62. 51Valuation of future premiums
  63. 52Acquisition expenses
  64. 53Rates of interest
  65. 54Rates of mortality and disability
  66. 55Expenses
  67. 56Options
  68. 57Contracts not to be treated as assets
  69. 58No credit for profits from voluntary discontinuance
  70. Part VIII: MISCELLANEOUS AND GENERAL
  71. 59Information
  72. 60Valuations, returns and fees
  73. 61Penalties
  74. 62Power to modify requirements in relation to particular societies
  75. 63Deposits
  76. 64Exercise of the Chief Registrar’s functions
  77. 65Amendment of rules
  78. Signature
  79. Schedule 1
  80. ICLASSES OF LONG TERM BUSINESS
  81. IICLASSES OF SUPPLEMENTARY BUSINESS
  82. Schedule 2: INFORMATION REQUIRED WITH APPLICATION FOR AUTHORISATION
  83. 1Solvency
  84. 2Classification of business
  85. 3Scheme of operations
  86. 4Scheme of operations
  87. 5Scheme of operations
  88. 6Scheme of operations
  89. 7Scheme of operations
  90. 8Scheme of operations
  91. 9Projections
  92. 10Other information
  93. 11Other information
  94. 12Other information
  95. 13Other information
  96. 14Other information
  97. Schedule 3: SUPPLEMENTARY BUSINESS—SOLVENCY MARGIN: PREMIUM BASIS OF CALCULATION
  98. 1Paragraph 1
  99. 2Paragraph 2
  100. 3Paragraph 3
  101. 4Paragraph 4
  102. 5Paragraph 5
  103. 6Paragraph 6
  104. 7Paragraph 7
  105. 8Paragraph 8
  106. 9Paragraph 9
  107. 10Paragraph 10
  108. 11Paragraph 11
  109. 12Paragraph 12
  110. Schedule 4: ASSETS TO BE TAKEN INTO ACCOUNT ONLY TO A SPECIFIED EXTENT
  111. IPart I
  112. IIPart II
  113. Explanatory note