Paragraph 24 Underwriting year accounting

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

Sch.2, para.11 amended by Insurance Companies (Accounts and Statements) 1997 reg.6(1)
Sch.2, para.13(4) amended by Insurance Companies (Accounts and Statements) 1997 reg.6(2)
Sch.2, para.17(1)(b) amended by Insurance Companies (Accounts and Statements) 1997 reg.6(3)
Sch.2, para.19(1) rev.in pt. by Insurance Companies (Accounts and Statements) 1997 reg.7(2)
Sch.2, para.19(2) amended by Insurance Companies (Accounts and Statements) 1997 reg.7(3)
Sch.2, para.20 amended by Insurance Companies (Accounts and Statements) 1997 reg.8
Sch.2, para.24(3)(b) substituted by Insurance Companies (Accounts and Statements) 1997 reg.9
Sch.2, para.3(4)(b) amended by Insurance Companies 1998 reg.6(2)
Sch.2, para.3(6) added by Insurance Companies 1998 reg.6(3)
Sch.2, para.5(1)(a) amended by Insurance Companies 1998 reg.7

(1)

With reference to the financial year in question and in respect of each accounting class, the following information shall be stated by way of supplementary note to Form 24—

(a)

the reason for accounting for such business on an underwriting year basis;

(b)

the basis for distinguishing between such business and any other business falling within the same accounting class accounted for on an accident year basis;

(c)

the accounting policy adopted for determining the provision for claims outstanding; and

(d)

if the information provided in sub-paragraphs (a) to (c) above differs in respect of risks incepted in the financial year in question from risks of a similar description incepted in previous financial years, the reason for that difference.

(2)

Where the provision for claims outstanding is set in respect of any business using the non-annual method, the note required by sub-paragraph (1)(a) above shall include the following information—

(a)

the reason for using the non-annual method;

(b)

the basis for distinguishing between such business and other business accounted for on an underwriting year basis falling within the same accounting class;

(c)

the normal period for which an underwriting year is left open or, if that period differs for different types of business within an accounting class—

(i)

the basis for distinguishing between the types of business; and

(ii)

the normal period for each type; and

(d)

where an underwriting year is left open for longer than the normal period, the reason for not closing the year.

(3)

For the purposes of this Schedule—

(a)

“non-annual method” refers to the method described by paragraph 52 of the shareholder accounts rules; and

(b)

“closed year” refers to a year in respect of which the provision for claims outstanding previously set under the non-annual method has been replaced in accordance with the requirements of paragraph 52(4) of the shareholder accounts rules, and “year left open” and “closing a year” shall be construed accordingly.