Paragraph 27 Discounting

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)

Sheet 2 of Form 30 need only be completed if the provision for claims outstanding being discounted (before deduction for discounting) exceeds 25 per cent. of the total provision for claims outstanding (before deduction for discounting).

(2)

Where in accordance with sub-paragraph (1) above no Sheet 2 is prepared—

(a)

lines 21 and 29 of Sheet 1 need not be completed; and

(b)

lines 11 to 20 need only be completed in respect of those currencies for which the provision for claims outstanding being discounted (before deduction for discounting) exceeds 25 per cent. of the total provision for that currency for claims outstanding (before deduction for discounting).

(3)

For the purposes of Form 30 a major currency is a currency in respect of which the provision for claims outstanding (before deduction for discounting) is not less than 10 per cent. of the total provision for claims outstanding (before deduction for discounting).

(4)

In Form 30 the value of an asset or liability which would be treated as an asset or liability in a particular currency for the purposes of regulation 27 of the Insurance Companies Regulations (disregarding regulation 32(1)) shall be shown in that currency.

(5)

The following shall be stated by way of supplementary note to Form 30—

(a)

the risk groups and business categories where adjustments for discounting have been made; and

(b)

in respect of each such risk group or business category—

(i)

the methods used in calculating the deduction for discounting;

(ii)

the rate of interest used for the calculation of present values;

(iii)

the expected average interval between the date for settlement of claims being discounted and the end of the financial year in question; and

(iv)

the criteria adopted for estimating the period that will elapse before claims are settled.