Statutory Instrument 1987 No. 2132

      The Friendly Societies (Long Term Insurance Business) Regulations 1987


      © Crown Copyright 1987

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STATUTORY INSTRUMENTS

1987 No. 2132

FRIENDLY SOCIETIES

The Friendly Societies (Long Term Insurance Business) Regulations 1987

Made 10th December 1987
Laid before Parliament 10th December 1987
Coming into force 1st January 1988


ARRANGEMENT OF REGULATIONS

PART I
Preliminary
Regulation
1.  Citation and commencement
2.  Interpretation: general
3.  Application
PART II
Authorisation
4.  Restrictions on carrying on business
5.  Authorisation of existing societies
6.  Authorisation of new societies
7.  Time for decision on application under Regulation 6
8.  Scope of authorisation
9.  Extension of authorisation
10.  Refusal of authorisation
PART III
Regulation of Authorised Societies
Solvency Provisions
11.  Annual actuarial investigation
12.  Required margin of solvency
13.  Long term classes I and II
14.  Long term classes III and VII
15.  Long term classes IV and VI
16.  Long term class V
17.  Supplementary business
18.  Aggregation where more than one margin of solvency
19.  Guarantee fund and minimum guarantee fund
20.  Minimum guarantee fund
21.  Valuation of solvency margins
22.  Implicit items: future surpluses
23.  Implicit items: zillmerising
24.  Implicit items: hidden reserves
Matching and localisation of assets
25.  Matching
26.  Localisation
27.  Exclusion
Partial transfer
28.  Transfer of part of long term business
Investment
29.  Investments of authorised societies
PART IV
Safeguard Measures
30.  Restoration plan
31.  Short-term financial scheme
PART V
Withdrawal of Authorisation
32.  Withdrawal of authorisation in respect of new business
33.  Procedure on withdrawal
PART VI
Valuation of Assets
34.  Interpretation: Part VI
35.  Application: Part VI
36.  Debts and other rights
37.  Land
38.  Equipment
39.  Unlisted securities
40.  Unit trusts
41.  Listed investments
42.  Life interests, reversionary interests etc.
43.  Other assets
44.  Assets to be taken into account only to a specified extent
PART VII
Determination of Liabilities
45.  Interpretation: Part VII
46.  Application: Part VII
47.  General
48.  Long term liabilities
49.  Nature and term of assets
50.  Avoidance of future valuation strain
51.  Valuation of future premiums
52.  Acquisition expenses
53.  Rates of interest
54.  Rates of mortality and disability
55.  Expenses
56.  Options
57.  Contracts not to be treated as assets
58.  No credit for profits from voluntary discontinuance
PART VIII
Miscellaneous and General
59.  Information
60.  Valuations, returns and fees
61.  Penalties
62.  Power to modify requirements in relation to particular societies
63.  Deposits
64.  Exercise of the Chief Registrar's functions
65.  Amendment of rules

SCHEDULES

  Schedule 1  —Classes of long term business and supplementary business

  Schedule 2  —Information required with application for authorisation

  Schedule 3  —Supplementary business—solvency margin: Premium basis of calculation

  Schedule 4  —Assets to be taken into account only to a specified extent

 

Explanatory Note


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Prepared 20th September 2000