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Paragraph 4

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

(1)

Subject to sub-paragraph (2) below, for each category of non-linked contract which—

(a)

comprises accumulating with-profits policies, a full description of the benefits, including—

(i)

the circumstances in which, and the method by which, an adjustment to the identifiable current benefit attributable to a policy might be made on the payment of any claim, including by full or partial surrender, or in determining the amount of any charges deducted from the policy;

(ii)

where the discounted value of the liability in respect of current benefits including vested bonuses shown in column 12 of Form 52 is less than the full amount of the current benefit shown in column 11 and the discounted value assumes the exercise of any discretionary adjustments of the type referred to in sub-paragraph (a)(i) above, a general description of such adjustments made during the report period;

(iii)

any guaranteed investment returns or bonus rates;

(iv)

any guaranteed surrender values; and

(v)

any material options;

(b)

comprises policies (other than those included in sub-paragraph (a) above) which provide for benefits to be determined on the basis of interest accrued (at a rate to be determined from time to time) in respect of premiums paid, a full description of the benefits, including—

(i)

the method used to calculate surrender values;

(ii)

any guaranteed investment returns;

(iii)

rates of interest applied during the report period;

(iv)

any guaranteed surrender values; and

(v)

any material options;

(c)

does not fall within sub-paragraph (a) or (b) above, and which is not sufficiently described by the entry in column 1 of Form 51, a full description of the benefits, including any premium rate guarantees and material options.

(2)

Information required under sub-paragraph (1) above need not be provided for any category of contract—

(a)

where no contracts were effected by the company during the report period; and

(b)

which has been included in Form 51 or Form 52 under the miscellaneous headings specified in instruction 8 (vi) or 8 (x) to Forms 51, 52, 53 and 54.