Regulation 64 Long term liabilities

(1)

The determination of the amount of long term liabilities (other than liabilities which have fallen due for payment before the valuation date) shall be made on actuarial principles which have due regard to the reasonable expectations of policy holders and shall make proper provision for all liabilities on prudent assumptions that shall include appropriate margins for adverse deviation of the relevant factors.

(2)

The determination shall take account of all prospective liabilities as determined by the policy conditions for each existing contract, taking credit for premiums payable after the valuation date.

(3)

Without prejudice to the generality of paragraph (1) above, the amount of the long term liabilities shall be determined in compliance with each of regulations 65 to 75 below and shall take into account, inter alia, the following factors:

(a)

all guaranteed benefits, including guaranteed surrender values;

(b)

vested, declared or allotted bonuses to which policy holders are already either collectively or individually contractually entitled;

(c)

all options available to the policy holder under the terms of the contract;

(d)

expenses, including commissions.