Paragraph 14

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

Sch.4, para.7(6) amended by Insurance Companies (Accounts and Statements) 1997 reg.12
Sch.4, para.15 renumbered (as para.15(1)) by Insurance Companies (Accounts and Statements) 1997 reg.13
Sch.4, para.15(2) added by Insurance Companies (Accounts and Statements) 1997 reg.13
Sch.4, para.19(1)(2) amended by Insurance Companies (Accounts and Statements) 1997 reg.14(1)
Sch.4, para.20 renumbered (as para.20(1)) by Insurance Companies (Accounts and Statements) 1997 reg.15
Sch.4, para.20(2)(3) added by Insurance Companies (Accounts and Statements) 1997 reg.15
Sch.4, para.21(1)(d) added by Insurance Companies (Accounts and Statements) 1997 reg.16
Sch.4, para.20(3) amended by Insurance Companies 1998 reg.9
Sch.4, Form 60 amended by Insurance Companies 1998 reg.10
Sch.4 amended by Insurance Companies 2000 reg.3

(1)

The principles on which the distribution of profits among policy holders and shareholders is based as described in any of the following documents—

(a)

the constitution of the company;

(b)

board resolutions of the company;

(c)

any policy issued by the company;

(d)

any advertisement issued by or on behalf of the company;

(e)

any document required to be issued by any regulatory body authorised under the Financial Services Act 1986^f1; and

(f)

any other relevant document.

(2)

A broad statement of the company’s aims in relation to the distribution of profits among policy holders, including its aims in relation to—

(a)

policies which mature or are surrendered and claims arising by death;

(b)

the appropriate and equitable treatment of groups of participating policies; and

(c)

smoothing.

(3)

A description of the methods used in order to ensure that the aims described in sub-paragraph (2) above are achieved.

(4)

Subject to sub-paragraph (5) below, if different principles or bonus policies apply to different categories of with-profits policies issued by the company, the information in sub-paragraphs (1) to (3) above shall be given in respect of each category.

(5)

Categories of with-profits policies which, apart from this sub-paragraph, would require separate information in accordance with sub-paragraph (4) above need only be listed under this sub-paragraph, and the information in sub-paragraphs (1) to (3) need not be supplied, provided that—

(a)

the aggregate amount of established surplus allocated to policy holders in all such categories is less than 10 per cent. of the aggregate amount of established surplus allocated to all policy holders (as reported at line 46 of Form 58);

(b)

the amount of established surplus allocated to policy holders in any one such category is less than 5 per cent. of the aggregate amount of established surplus allocated to all policy holders (as reported at line 46 of Form 58); and

(c)

none of the categories was introduced during the report period.

Annotations

Footnotes

f1: 1986 c. 60.