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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)

For each business category or risk group, or part thereof, in respect of which separate non-facultative reinsurance cover has been obtained, the company shall prepare a statement of the maximum net probable loss to the company from any one contract of insurance effected by it and from all such contracts taken together.

(2)

For the purposes of sub-paragraph (1) above, the maximum net probable loss is the maximum loss (net of reinsurance) arising from any one incident, or any one series of incidents from the same originating cause, which—

(a)

the directors, at the time they decided upon the reinsurance cover to be obtained in respect of the financial year in question, reasonably contemplated to be of a type which might take place during that financial year; or

(b)

has actually occurred during the financial year in question.