Regulation 48 Debts and other rights

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

reg.48(10) substituted by Insurance Companies 1996 reg.5(2)
reg.48(11) added by Insurance Companies 1994 reg.9(5)
reg.48(5) substituted by Insurance Companies 1995 reg.6(2)
reg.48(5A) added by Insurance Companies 1995 reg.6(3)
reg.48(6)(d) rev. in pt. by Insurance Companies 1995 reg.6(4)
reg.48(8) substituted by Insurance Companies 1995 reg.6(5)
reg.48(10) substituted by Insurance Companies 1995 reg.6(6)
reg.48(11) revoked by Insurance Companies 1995 reg.6(7)
reg.48(11)(12) added by Insurance Companies 1996 reg.5(3)
reg.48(1) substituted by Insurance Companies 1994 reg.9(2)
reg.48(6)(c) substituted by Insurance Companies 1994 reg.9(3)
reg.48(8) amended by Insurance Companies 1994 reg.9(4)

(1)

The value of any secured debt due, or to become due, to an insurance company, other than a debt to which regulation 46(4) above or paragraph (2), (3) or (6) of this regulation applies, shall be the amount which can reasonably be expected to be recovered in respect of that debt (due account being taken of the nature and quality of the security).

(2)

Any debt due, or to become due, to an insurance company under a letter of credit shall be left out of account for the purposes of this Part of these Regulations.

(3)

In the case of long term business carried on by a company, the value of any debt due, or to become due, to the company which is secured on a policy of insurance issued by the company and which (together with any other debt secured on that policy) does not exceed the amount payable on a surrender of that policy at the relevant date shall be the amount of that debt.

(4)

The value of any unsecured debt due, or to become due, to an insurance company, other than a debt to which regulation 46(4) above, paragraph (5) or (6) of this regulation or regulation 53 or 56 applies, shall be—

(a)

in the case of any such debt which is due, or will become due, within twelve months of the relevant date (including any debt which would become due within that period if the company were to exercise any right to which it is entitled to require payment of the same), the amount which can reasonably be expected to be recovered in respect of that debt (due account being taken of the terms and conditions for payment thereof); and

(b)

in the case of any other such debt, the amount which would reasonably be paid by way of consideration for an immediate assignment of the debt (due account being taken of the terms and conditions for payment thereof).

(5)

The value of any debt due to, or other rights of, the company under any contract of reinsurance to which the company is a party (other than a debt to which regulation 46(4) above applies) shall be the amount which can reasonably be expected to be recovered in respect of that debt or right.

(6)

Any debt due, or to become due, to the company—

(a)

from an intermediary in respect of money advanced on account of commission to which that intermediary is not absolutely entitled at the relevant date, or

(b)

in respect of unpaid share capital of the company, or

(c)

from its holding company where such debt is regulated subordinated debt, or

(d)

which is a debt to which paragraph (7) or (8) below applies,

shall be left out of account for the purposes for which this Part of these Regulations applies.

(7)

This paragraph shall apply to a debt which is a debt owed in respect of premiums (due account being taken of rebates, refunds and commissions payable) which is recorded in the company’s accounting records as due and payable and has been outstanding for more than three months.

(8)

This paragraph shall apply to a debt arising under a contract which, wholly or in part, has the equivalent effect to a derivative contract to which regulation 55(3) does not apply.

(9)

In the case of general business carried on by a company, the value of any salvage right of the company shall be the amount which can reasonably be expected to be recovered by virtue of the exercise of that right.

(10)

The value of any right of an insurance company to have identical securities transferred to it under to a stock lending transaction shall be calculated as if the right was a debt owed to the insurance company in respect of the value of the securities to be transferred to it.