# The Friendly Societies (Long Term Insurance Business) Regulations 1987, Regulation 44: Assets to be taken into account only to a specified extent


(1) Assets of a society of any of the descriptions specified in Schedule 4 shall be taken into account only to the extent that the value of those assets does not exceed–
(a) for all assets of a description specified in Part I of Schedule 4 an amount equal to the percentage of the long term business amount specified in Schedule 4 for assets of that description;
(b) for all assets of the description specified in Part II of Schedule 4, an amount equal to the percentage so specified of the net premium income of the society in respect of long term business for the twelve months preceding the relevant date.
(2) In this regulation–
“long term business amount” means the aggregate of the society’s long term business liabilities and whichever is the greater of–
(a) one-sixth of the margin of solvency which the society is required to maintain and
(b) 600,000 units of account
less the amount of the deduction specified in paragraph (3) below;
“the net premium income” of a society for any specified period means the gross amounts first recorded in the society’s books during that period as paid or due to the society by way of premiums, less any rebates, refunds and commission so recorded during that period as allowed or paid on those gross amounts or any such gross amounts so recorded in any previous period.
(3) The deduction to be made in determining the long term business amount in accordance with paragraph (2) above shall be the aggregate of the following–
(a) the value of the debts due or to become due to and other rights of the society under contracts of reinsurance ceded by it (but excluding any rights of recovery in respect of insurance liabilities already discharged by the society) which are long term business assets of the society, and
(b) the amount of any liabilities of the society in respect of property linked benefits.
(4) For the purposes of this regulation, the amount of the liabilities of a society shall be determined in accordance with Part VII of these Regulations.
(5) This regulation shall not apply to any approved securities or to any interest accrued thereon.

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Source: https://www.legislation.gov.uk/uksi/1987/2132/regulation/44 (the official version)
Page: https://openlegislation.uk/friendly-societies-long-term-insurance-business-regulations-1987/regulation-44
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.