# The Insurance Companies (Amendment) Regulations 1995, Regulation 3: Interpretation: Part VIII


For paragraph (3) of regulation 44, substitute—
“(3) For the purposes of these Regulations, a debt owed to (or an obligation to be fulfilled for the benefit of) an insurance company shall be regarded as being secured only to the extent that it is—
(a) secured by—
(i) a letter of credit established with an approved credit institution; or
(ii) a guarantee provided by an approved credit institution,
and the lower of the amount of the letter of credit or guarantee and the amount of the debt (or the value of the obligation) when added to any other exposure of the insurance company to the approved credit institution does not exceed the permitted counterparty exposure limit (as determined by regulation 57 of, and Schedule 12 to, these Regulations); or—
(b) secured by assets for the valuation of which provision is made in this Part of these Regulations and—
(i) the value of such assets (after deducting reasonable expenses of sale and the amount of any other debt or obligation secured thereon having priority to or ranking equally with the debt or obligation) is sufficient to enable the debt or obligation to be discharged in full; and
(ii) the value of the assets when aggregated with the insurance company’s exposure to assets of the same description does not exceed the permitted exposure limit for assets of that description (as defined in regulation 57 of, and Schedule 12, to these Regulations).”

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Source: https://www.legislation.gov.uk/uksi/1995/3248/regulation/3 (the official version)
Page: https://openlegislation.uk/insurance-companies-amendment-regulations-1995/regulation-3
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.