Regulation 6 Debts and other rights

Regulation 48 of the 1994 Regulations (debts and other rights) shall be amended as follows.

For paragraph (5), substitute—

“(5)

Subject to paragraph 5A below, the value of any rights of the company under a contract of reinsurance to which it is a party shall be the amount which can reasonably be expected to be recovered in respect of those rights.”

After that paragraph insert—

“(5A)

Paragraph (5) above shall not apply to—

(a)

rights under a contract of reinsurance in respect of long term business except to the extent that debts are due under such contracts; or

(b)

debts to which regulation 46(4) applies which are due or to become due.”

In paragraph (6)(d), omit the words “or (8) below”.

For paragraph (8), substitute—

“(8)

In the case of general business carried on by a company, the value of any subrogation rights of the company shall be the amount which can reasonably be expected to be recovered by virtue of the exercise of those rights.”

For paragraph (10), substitute—

“(10)

This regulation shall not apply to—

(a)

any rights arising in respect of a derivative contract or a contract or asset having the effect of a derivative contract; or

(b)

rights in respect of investments falling within regulation 47 above or 51 or 52 below

save for an unconditional right to receive a specified amount.”

Omit paragraph (11).