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Regulation 76 Credit insurance business: equalisation reserve

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

(1)

Subject to regulation 77 below—

(a)

every UK company which carries on credit insurance business; and

(b)

every non-EC company which carries on credit insurance business in the United Kingdom,

shall maintain a reserve (in these Regulations referred to as an “equalisation reserve”) in respect of that business, determined (at the option of the company) in accordance with one of the four methods set out in Schedule 14.

(2)

In applying section 32(5) of the Actf1 the value of the company’s liabilities shall be treated as being increased by the amount of the equalisation reserve.

Annotations

Footnotes

f1

Section 32(5) was amended by S.I. 1994/1696, reg. 14(2).