http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources/1994-01-05Insurance Companies Act 1982 (repealed)An Act to consolidate the Insurance Companies Acts 1974 and 1981.1982-11-01texttext/xmlenStatute Law Database2011-05-271994-01-05 Part II Regulation of Insurance Companies Financial resources Margins of solvency.321Every insurance company to which this Part of this Act applies—awhose head office is in the United Kingdom, orbwhose business in the United Kingdom is restricted to reinsurance,shall maintain a margin of solvency of such amount as may be prescribed by or determined in accordance with regulations made for the purposes of this section.2Subject to subsection (3) below, every insurance company to which this Part of this Act applies whose head office is not in a member State shall maintain—aa margin of solvency, andba United Kingdom margin of solvency,of such amounts as may be prescribed by or determined in accordance with regulations made for the purposes of this section.3Subsection (2) above shall not apply to an insurance company if its business in the United Kingdom is restricted to re-insurance or if it is a Swiss general insurance companyor if section 9(2) above applies to it; but an insurance company that has made a deposit in the United Kingdom in accordance with section 9(2)(b) above shall maintain—aa margin of solvency, andba Community margin of solvency,of such amounts as may be prescribed by or determined in accordance with regulations made for the purposes of this section.4An insurance company that fails to comply with subsection (1), (2) or (3) above—ashall at the request of the Secretary of State submit to him a plan for the restoration of a sound financial position;bshall propose modifications to the plan (or the plan as previously modified) if the Secretary of State considers it inadequate;cshall give effect to any plan accepted by the Secretary of State as adequate.5For the purposes of this Act—athe margin of solvency of an insurance company is the excess of the value of its assets over the amount of its liabilities, that value and amount being determined in accordance with any applicable valuation regulations;bthe United Kingdom margin of solvency of an insurance company is its margin of solvency computed by reference to the assets and liabilities of the business carried on by the company in the United Kingdom;cthe Community margin of solvency of an insurance company is its margin of solvency computed by reference to the assets and liabilities of the business carried on by the company in member States (taken together).6In the case of an insurance company that carries on both long term and general business, subsections (1), (2) and (3) above shall have effect as if—athe requirements to maintain a margin of solvency, andbwhere the company carries on both kinds of business in the United Kingdom, the requirement to maintain a United Kingdom margin of solvency, andcwhere the company carries on both kinds of business in member States (taken together), the requirement to maintain a Community margin of solvency,were requirements to maintain separate margins in respect of the two kinds of business (and accordingly as if the references in subsection (5) to assets and liabilities were references to assets and liabilities relating to the kind of business in question). Failure to maintain minimum margin.331If—athe margin of solvency of an insurance company to which section 32(1) above applies, orbthe margin of solvency or United Kingdom margin of solvency of an insurance company to which section 32(2) above applies, orcthe margin of solvency or Community margin of solvency of an insurance company to which section 32(3) above applies,falls below such amount as may be prescribed by or determined in accordance with regulations made for the purposes of this section, the company shall at the request of the Secretary of State submit to him a short-term financial scheme.2An insurance company that has submitted a scheme to the Secretary of State under subsection (1) above shall propose modifications to the scheme (or the scheme as previously modified) if the Secretary of State considers it inadequate, and shall give effect to any scheme accepted by him as adequate.3Where a company is required by virtue of section 32(6) above to maintain separate margins in respect of long term and general business, subsection (1) above shall have effect as if any reference to the margin of solvency, the United Kingdom margin of solvency or the Community margin of solvency of the company were a reference to the margin in respect of either of the two kinds of business. Companies supervised in other member States.341An insurance company to which this Part of this Act applies—awhose head office is in a member State other than the United Kingdom, orbwhich has in accordance with section 9(2) above made a deposit in such a member State,orcwhich is a Swiss general insurance company,shall secure that the value of the assets of the business carried on by it in the United Kingdom does not fall below the amount of the liabilities of that business, that value and amount being determined in accordance with any applicable valuation regulations.2In the case of a company that carries on in the United Kingdom both long term and general business subsection (1) above shall have effect separately in relation to the assets and liabilities of the two kinds of business.<Addition ChangeId="d30p11529" CommentaryRef="c1482071"> General business: equalisation reserve.</Addition>34A1Every insurance company to which this section applies which carries on general business of a prescribed description shall maintain, in accordance with regulations made for the purposes of this section, a reserve (in this section referred to as an “equalisation reserve") in respect of its general business of that description.2Subject to subsection (3) below, this section applies to any insurance company to which this Part of this Act applies—awhose head office is in the United Kingdom;bwhose business in the United Kingdom is restricted to reinsurance; orcwhose head office is not in a member State.3This section does not apply to an insurance company of a description prescribed for the purposes of this subsection.4Without prejudice to the generality of subsection (1) above, regulations made for the purposes of this section may make provision—aas to the circumstances in which, and times at which, amounts are to be placed to, or taken from, an equalisation reserve;bas to the determination of the amounts to be so placed or taken; andcas to such other matters incidental to the maintenance of an equalisation reserve as the Secretary of State considers expedient. Form and situation of assets.351Regulations may make provision for securing that, in such circumstances and to such extent as may be prescribed, the assets of an insurance company to which this Part of this Act applies are maintained in such places as may be prescribed and the nature of the assets is appropriate in relation to the currency in which the liabilities of the company are or may be required to be met.2Regulations made for the purposes specified in subsection (1) above shall not have effect in relation to the assets of an insurance company whose head office is in a member State or which is a Swiss general insurance companyso far as their value exceeds the amount of the liabilities of the business carried on by the company in the United Kingdom, that value and amount being determined in accordance with any applicable valuation regulations.<Addition ChangeId="d30p11307"><CommentaryRef Ref="c1482080"/> Adequacy of assets.</Addition>35A1A UK company shall secure—athat its liabilities under contracts of insurance entered into by it, other than liabilities in respect of linked benefits, are covered by assets of appropriate safety, yield and marketability having regard to the classes of business carried on; andbwithout prejudice to the generality of paragraph (a) above, that its investments are appropriately diversified and adequately spread and that excessive reliance is not placed on investments of any particular category or description.2A UK company which has entered into a linked long term contract shall secure that, as far as practicable, its liabilities under the contract in respect of linked benefits are covered as follows—aif those benefits are linked to the value of units in an undertaking for collective investments in transferable securities or to the value of assets contained in an internal fund, by those units or assets;bif those benefits are linked to a share index or other reference value not mentioned in paragraph (a) above, by units which represent that reference value, or by assets of appropriate safety and marketability which correspond, as nearly as may be, to the assets on which that reference value is based.3A UK company which has entered into a linked long term contract shall also secure that its liabilities under the contract in respect of linked benefitsunder the contract in respect of linked benefits as are not covered by contracts of reinsurance are covered by assets of a description prescribed by regulations under section 78 below.4In this section—'linked benefits’, in relation to a contract of insurance, means benefits payable to the policy holder which are determined by reference to the value of or the income from property of any description (whether or not specified in the contract) or by reference to fluctuations in, or in an index of, the value of property of any description (whether or not so specified);'linked long term contract’ means a contract ofinsurance —athe effecting of which constitutes the carrying on of long term business; andbunder which linked benefits are payable to the policy holder.<Addition ChangeId="d30p11480" CommentaryRef="c1482085"> Adequacy of premiums: long term business.</Addition>35B1Before entering into a contract of insurance the effecting of which constitutes the carrying on of long term business, a UK company shall satisfy itself that the aggregate of—athe premiums payable under the contract and the income which will be derived from them; andbany other resources of the company which will be available for the purpose,will be sufficient, on reasonable actuarial assumptions, to meet all commitments arising under or in connection with the contract.2A UK company shall not rely on other resources for the purposes of subsection (1) above in such a way as to jeopardise the solvency of the company in the long term.Pt. II (ss. 15-71) restricted (1.1.1993) by S.I. 1992/3218, reg65Pt. II (ss. 15-71) extended (24.12.1996) by S.I. 1996/3011, reg. 3(1)(b), 10(1)S. 32 modified by S.I. 1983/224, reg. 3(1)Words in s. 32(3) inserted (5.1.1994) by S.I. 1993/3127, reg. 3(3)S. 32(5) modified by S.I. 1990/1181, regs. 3(2), 4S. 33 modified by S.I. 1983/224, reg. 3(1)S. 34(1)(c) and the preceding word “or” inserted ((5.1.1994) by S.I. 1993/3127, reg. 3(4)S. 35 modified by S.I. 1983/224, reg. 3(3) Words in s. 35(2) inserted (5.1.1994) by S.I. 1993/3127, reg. 3(5)S. 35A inserted (1.7.1994) by S.I. 1994/1696, reg. 17S. 35B inserted (1.7.1994) by S.I. 1994/1696, reg. 18S. 34A inserted (30.4.1996) by 1995 c. 29, s. 1(1); S.I. 1996/945, art. 2
This XML file does not appear to have any style information associated with it. The document tree is shown below.
<Legislation xmlns="http://www.legislation.gov.uk/namespaces/legislation" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50" NumberOfProvisions="307" xsi:schemaLocation="http://www.legislation.gov.uk/namespaces/legislation http://www.legislation.gov.uk/schema/legislation.xsd" SchemaVersion="1.0" RestrictExtent="E+W+S+N.I." RestrictStartDate="2001-12-01">
<ukm:Metadata xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:dct="http://purl.org/dc/terms/" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:ukm="http://www.legislation.gov.uk/namespaces/metadata">
<dc:identifier>http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources/1994-01-05</dc:identifier>
<dc:title>Insurance Companies Act 1982 (repealed)</dc:title>
<dc:description>An Act to consolidate the Insurance Companies Acts 1974 and 1981.</dc:description>
<dc:date>1982-11-01</dc:date>
<dc:type>text</dc:type>
<dc:format>text/xml</dc:format>
<dc:language>en</dc:language>
<dc:publisher>Statute Law Database</dc:publisher>
<dc:modified>2011-05-27</dc:modified>
<dct:valid>1994-01-05</dct:valid>
<atom:link rel="self" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources/1994-01-05/data.xml" type="application/xml"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/resources" href="http://www.legislation.gov.uk/ukpga/1982/50/resources" title="More Resources"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/act" href="http://www.legislation.gov.uk/ukpga/1982/50/1994-01-05" title="whole act"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/introduction" href="http://www.legislation.gov.uk/ukpga/1982/50/introduction/1994-01-05" title="introduction"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/body" href="http://www.legislation.gov.uk/ukpga/1982/50/body/1994-01-05" title="body"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/schedules" href="http://www.legislation.gov.uk/ukpga/1982/50/schedules/1994-01-05" title="schedules"/>
<atom:link rel="alternate" type="application/rdf+xml" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources/1994-01-05/data.rdf" title="RDF/XML"/>
<atom:link rel="alternate" type="application/akn+xml" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources/1994-01-05/data.akn" title="AKN"/>
<atom:link rel="alternate" type="application/xhtml+xml" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources/1994-01-05/data.xht" title="HTML snippet"/>
<atom:link rel="alternate" type="text/html" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources/1994-01-05/data.htm" title="Website (XHTML) Default View"/>
<atom:link rel="alternate" type="text/csv" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources/1994-01-05/data.csv" title="CSV"/>
<atom:link rel="alternate" type="application/pdf" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources/1994-01-05/data.pdf" title="PDF"/>
<atom:link rel="alternate" type="application/akn+xhtml" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources/1994-01-05/data.html" title="HTML5 snippet"/>
<atom:link rel="http://purl.org/dc/terms/tableOfContents" hreflang="en" href="http://www.legislation.gov.uk/ukpga/1982/50/contents/1994-01-05" title="Table of Contents"/>
<atom:link rel="http://purl.org/dc/terms/replaces" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources/1991-02-01" title="1991-02-01"/>
<atom:link rel="http://purl.org/dc/terms/isReplacedBy" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources/1994-07-01" title="1994-07-01"/>
<atom:link rel="http://purl.org/dc/terms/hasVersion" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources/enacted" title="enacted"/>
<atom:link rel="http://purl.org/dc/terms/hasVersion" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources/1991-02-01" title="1991-02-01"/>
<atom:link rel="http://purl.org/dc/terms/hasVersion" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources/1994-07-01" title="1994-07-01"/>
<atom:link rel="http://purl.org/dc/terms/hasVersion" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources/1994-12-30" title="1994-12-30"/>
<atom:link rel="http://purl.org/dc/terms/hasVersion" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources/1996-04-30" title="1996-04-30"/>
<atom:link rel="http://purl.org/dc/terms/hasVersion" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources/1998-01-05" title="1998-01-05"/>
<atom:link rel="http://purl.org/dc/terms/hasVersion" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources/2001-12-01" title="2001-12-01"/>
<atom:link rel="http://purl.org/dc/terms/hasVersion" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources" title="current"/>
<atom:link rel="up" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/1994-01-05" title="Part II"/>
<atom:link rel="prev" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/assets-and-liabilities-attributable-to-long-term-business/1994-01-05" title="Crossheading; Part II Crossheading; Assets and liabilities attributable to long term business"/>
<atom:link rel="prevInForce" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/assets-and-liabilities-attributable-to-long-term-business/1994-01-05" title="Crossheading; Part II Crossheading; Assets and liabilities attributable to long term business"/>
<atom:link rel="next" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/liabilities-of-unlimited-amount/1994-01-05" title="Crossheading; Part II Crossheading; Liabilities of unlimited amount"/>
<atom:link rel="nextInForce" href="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/liabilities-of-unlimited-amount/1994-01-05" title="Crossheading; Part II Crossheading; Liabilities of unlimited amount"/>
<ukm:PrimaryMetadata>
<ukm:DocumentClassification>
<ukm:DocumentCategory Value="primary"/>
<ukm:DocumentMainType Value="UnitedKingdomPublicGeneralAct"/>
<ukm:DocumentStatus Value="revised"/>
</ukm:DocumentClassification>
<ukm:Year Value="1982"/>
<ukm:Number Value="50"/>
<ukm:EnactmentDate Date="1982-10-28"/>
<ukm:UnappliedEffects>
<ukm:UnappliedEffect AffectingYear="2003" AffectedClass="UnitedKingdomPublicGeneralAct" Notes="commencement order for 2001 c. 16" Type="Commencement Order" Modified="2014-03-14T15:51:33.106Z" AffectingURI="http://www.legislation.gov.uk/id/uksi/2003/708" AffectedNumber="50" AffectingClass="UnitedKingdomStatutoryInstrument" Created="2014-03-14T15:51:33.106Z" RequiresApplied="true" AffectingNumber="708" AffectedProvisions="specified amended provision(s)" AffectingProvisions="art. 2" AffectedYear="1982" AffectedURI="http://www.legislation.gov.uk/id/ukpga/1982/50" URI="http://www.legislation.gov.uk/id/effect/uksi-2003-708-adw9qsb1-32" EffectId="key-07f0034f21e952eda390cf2fde002094">
<ukm:AffectedTitle>Insurance Companies Act 1982 (repealed)</ukm:AffectedTitle>
<ukm:AffectedTitle>Insurance Companies Act 1982(repealed)</ukm:AffectedTitle>
<ukm:AffectedProvisions>specified amended provision(s)</ukm:AffectedProvisions>
<ukm:AffectingTitle>The Criminal Justice and Police Act 2001 (Commencement No. 9) Order 2003</ukm:AffectingTitle>
<ukm:AffectingProvisions>
<ukm:Section Ref="article-2" URI="http://www.legislation.gov.uk/id/uksi/2003/708/article/2">art. 2</ukm:Section>
</ukm:AffectingProvisions>
<ukm:Commenced>
commencement order for
<ukm:Citation Class="UnitedKingdomPublicGeneralAct" URI="http://www.legislation.gov.uk/id/ukpga/2001/16" Year="2001" Number="16" Title="Criminal Justice and Police Act 2001">2001 c. 16</ukm:Citation>
</ukm:Commenced>
</ukm:UnappliedEffect>
</ukm:UnappliedEffects>
</ukm:PrimaryMetadata>
<ukm:Alternatives>
<ukm:Alternative Date="2008-10-27" URI="http://www.legislation.gov.uk/ukpga/1982/50/pdfs/ukpga_19820050_en.pdf" Title="Print Version"/>
</ukm:Alternatives>
<ukm:Statistics>
<ukm:TotalParagraphs Value="284"/>
<ukm:BodyParagraphs Value="140"/>
<ukm:ScheduleParagraphs Value="144"/>
<ukm:AttachmentParagraphs Value="0"/>
<ukm:TotalImages Value="1"/>
</ukm:Statistics>
</ukm:Metadata>
<Primary>
<Body DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/body/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/body" NumberOfProvisions="140" RestrictExtent="E+W+S+N.I." RestrictStartDate="1991-01-02" RestrictEndDate="2001-12-01">
<Part DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/part/II/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/part/II" NumberOfProvisions="74" RestrictExtent="E+W+S+N.I." RestrictEndDate="2001-12-01" id="part-II">
<Number>
<CommentaryRef Ref="c1481891"/>
Part II
</Number>
<Title> Regulation of Insurance Companies</Title>
<Pblock DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/part/II/crossheading/financial-resources/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/part/II/crossheading/financial-resources" NumberOfProvisions="7" RestrictExtent="E+W+S+N.I." RestrictEndDate="2001-12-01" id="part-II-crossheading-financial-resources">
<Title> Financial resources</Title>
<P1group RestrictExtent="E+W+S+N.I." RestrictStartDate="1994-01-05" RestrictEndDate="1994-07-01" ConfersPower="true">
<Title> Margins of solvency.</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32" id="section-32">
<Pnumber>
<CommentaryRef Ref="c1482021"/>
32
</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/1/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/1" id="section-32-1">
<Pnumber>1</Pnumber>
<P2para>
<Text>Every insurance company to which this Part of this Act applies—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/1/a/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/1/a" id="section-32-1-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>whose head office is in the United Kingdom, or</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/1/b/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/1/b" id="section-32-1-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>whose business in the United Kingdom is restricted to reinsurance,</Text>
</P3para>
</P3>
<Text>shall maintain a margin of solvency of such amount as may be prescribed by or determined in accordance with regulations made for the purposes of this section.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/2/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/2" id="section-32-2">
<Pnumber>2</Pnumber>
<P2para>
<Text>Subject to subsection (3) below, every insurance company to which this Part of this Act applies whose head office is not in a member State shall maintain—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/2/a/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/2/a" id="section-32-2-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>a margin of solvency, and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/2/b/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/2/b" id="section-32-2-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>a United Kingdom margin of solvency,</Text>
</P3para>
</P3>
<Text>of such amounts as may be prescribed by or determined in accordance with regulations made for the purposes of this section.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/3/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/3" id="section-32-3">
<Pnumber>3</Pnumber>
<P2para>
<Text>
Subsection (2) above shall not apply to an insurance company if its business in the United Kingdom is restricted to re-insurance
<Addition ChangeId="d30p10258" CommentaryRef="c1482022">or if it is a Swiss general insurance company</Addition>
or if section 9(2) above applies to it; but an insurance company that has made a deposit in the United Kingdom in accordance with section 9(2)(b) above shall maintain—
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/3/a/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/3/a" id="section-32-3-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>a margin of solvency, and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/3/b/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/3/b" id="section-32-3-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>a Community margin of solvency,</Text>
</P3para>
</P3>
<Text>of such amounts as may be prescribed by or determined in accordance with regulations made for the purposes of this section.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/4/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/4" id="section-32-4">
<Pnumber>4</Pnumber>
<P2para>
<Text>An insurance company that fails to comply with subsection (1), (2) or (3) above—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/4/a/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/4/a" id="section-32-4-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>shall at the request of the Secretary of State submit to him a plan for the restoration of a sound financial position;</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/4/b/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/4/b" id="section-32-4-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>shall propose modifications to the plan (or the plan as previously modified) if the Secretary of State considers it inadequate;</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/4/c/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/4/c" id="section-32-4-c">
<Pnumber>c</Pnumber>
<P3para>
<Text>shall give effect to any plan accepted by the Secretary of State as adequate.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/5/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/5" id="section-32-5">
<Pnumber>
<CommentaryRef Ref="c1482023"/>
5
</Pnumber>
<P2para>
<Text>For the purposes of this Act—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/5/a/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/5/a" id="section-32-5-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the margin of solvency of an insurance company is the excess of the value of its assets over the amount of its liabilities, that value and amount being determined in accordance with any applicable valuation regulations;</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/5/b/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/5/b" id="section-32-5-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>the United Kingdom margin of solvency of an insurance company is its margin of solvency computed by reference to the assets and liabilities of the business carried on by the company in the United Kingdom;</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/5/c/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/5/c" id="section-32-5-c">
<Pnumber>c</Pnumber>
<P3para>
<Text>the Community margin of solvency of an insurance company is its margin of solvency computed by reference to the assets and liabilities of the business carried on by the company in member States (taken together).</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/6/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/6" id="section-32-6">
<Pnumber>6</Pnumber>
<P2para>
<Text>In the case of an insurance company that carries on both long term and general business, subsections (1), (2) and (3) above shall have effect as if—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/6/a/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/6/a" id="section-32-6-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the requirements to maintain a margin of solvency, and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/6/b/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/6/b" id="section-32-6-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>where the company carries on both kinds of business in the United Kingdom, the requirement to maintain a United Kingdom margin of solvency, and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/32/6/c/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/6/c" id="section-32-6-c">
<Pnumber>c</Pnumber>
<P3para>
<Text>where the company carries on both kinds of business in member States (taken together), the requirement to maintain a Community margin of solvency,</Text>
</P3para>
</P3>
<Text>were requirements to maintain separate margins in respect of the two kinds of business (and accordingly as if the references in subsection (5) to assets and liabilities were references to assets and liabilities relating to the kind of business in question).</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group RestrictExtent="E+W+S+N.I." RestrictEndDate="1994-07-01" ConfersPower="true">
<Title> Failure to maintain minimum margin.</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/33/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/33" id="section-33">
<Pnumber>
<CommentaryRef Ref="c1482053"/>
33
</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/33/1/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/33/1" id="section-33-1">
<Pnumber>1</Pnumber>
<P2para>
<Text>If—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/33/1/a/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/33/1/a" id="section-33-1-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the margin of solvency of an insurance company to which section 32(1) above applies, or</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/33/1/b/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/33/1/b" id="section-33-1-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>the margin of solvency or United Kingdom margin of solvency of an insurance company to which section 32(2) above applies, or</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/33/1/c/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/33/1/c" id="section-33-1-c">
<Pnumber>c</Pnumber>
<P3para>
<Text>the margin of solvency or Community margin of solvency of an insurance company to which section 32(3) above applies,</Text>
</P3para>
</P3>
<Text>falls below such amount as may be prescribed by or determined in accordance with regulations made for the purposes of this section, the company shall at the request of the Secretary of State submit to him a short-term financial scheme.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/33/2/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/33/2" id="section-33-2">
<Pnumber>2</Pnumber>
<P2para>
<Text>An insurance company that has submitted a scheme to the Secretary of State under subsection (1) above shall propose modifications to the scheme (or the scheme as previously modified) if the Secretary of State considers it inadequate, and shall give effect to any scheme accepted by him as adequate.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/33/3/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/33/3" id="section-33-3">
<Pnumber>3</Pnumber>
<P2para>
<Text>Where a company is required by virtue of section 32(6) above to maintain separate margins in respect of long term and general business, subsection (1) above shall have effect as if any reference to the margin of solvency, the United Kingdom margin of solvency or the Community margin of solvency of the company were a reference to the margin in respect of either of the two kinds of business.</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group RestrictExtent="E+W+S+N.I." RestrictStartDate="1994-01-05" RestrictEndDate="1994-07-01">
<Title> Companies supervised in other member States.</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/34/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/34" id="section-34">
<Pnumber>34</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/34/1/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/34/1" id="section-34-1">
<Pnumber>1</Pnumber>
<P2para>
<Text>An insurance company to which this Part of this Act applies—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/34/1/a/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/34/1/a" id="section-34-1-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>whose head office is in a member State other than the United Kingdom, or</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/34/1/b/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/34/1/b" id="section-34-1-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>which has in accordance with section 9(2) above made a deposit in such a member State,</Text>
</P3para>
</P3>
</P2para>
<P2para>
<Text>
<Addition ChangeId="d30p11143" CommentaryRef="c1482068">or</Addition>
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/34/1/c/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/34/1/c" id="section-34-1-c">
<Pnumber>
<Addition ChangeId="d30p11143" CommentaryRef="c1482068">c</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d30p11143" CommentaryRef="c1482068">which is a Swiss general insurance company,</Addition>
</Text>
</P3para>
</P3>
</P2para>
<P2para>
<Text>shall secure that the value of the assets of the business carried on by it in the United Kingdom does not fall below the amount of the liabilities of that business, that value and amount being determined in accordance with any applicable valuation regulations.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/34/2/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/34/2" id="section-34-2">
<Pnumber>2</Pnumber>
<P2para>
<Text>In the case of a company that carries on in the United Kingdom both long term and general business subsection (1) above shall have effect separately in relation to the assets and liabilities of the two kinds of business.</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group RestrictExtent="E+W+S+N.I." RestrictStartDate="1996-04-30" RestrictEndDate="1998-01-05" ConfersPower="true" Match="false">
<Title>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071"> General business: equalisation reserve.</Addition>
</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/34A/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/34A" id="section-34A">
<Pnumber>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">34A</Addition>
</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/34A/1/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/34A/1" id="section-34A-1">
<Pnumber>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">1</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">Every insurance company to which this section applies which carries on general business of a prescribed description shall maintain, in accordance with regulations made for the purposes of this section, a reserve (in this section referred to as an “equalisation reserve") in respect of its general business of that description.</Addition>
</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/34A/2/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/34A/2" id="section-34A-2">
<Pnumber>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">2</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">Subject to subsection (3) below, this section applies to any insurance company to which this Part of this Act applies—</Addition>
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/34A/2/a/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/34A/2/a" id="section-34A-2-a">
<Pnumber>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">a</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">whose head office is in the United Kingdom;</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/34A/2/b/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/34A/2/b" id="section-34A-2-b">
<Pnumber>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">b</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">whose business in the United Kingdom is restricted to reinsurance; or</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/34A/2/c/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/34A/2/c" id="section-34A-2-c">
<Pnumber>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">c</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">whose head office is not in a member State.</Addition>
</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/34A/3/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/34A/3" id="section-34A-3">
<Pnumber>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">3</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">This section does not apply to an insurance company of a description prescribed for the purposes of this subsection.</Addition>
</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/34A/4/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/34A/4" id="section-34A-4">
<Pnumber>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">4</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">Without prejudice to the generality of subsection (1) above, regulations made for the purposes of this section may make provision—</Addition>
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/34A/4/a/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/34A/4/a" id="section-34A-4-a">
<Pnumber>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">a</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">as to the circumstances in which, and times at which, amounts are to be placed to, or taken from, an equalisation reserve;</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/34A/4/b/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/34A/4/b" id="section-34A-4-b">
<Pnumber>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">b</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">as to the determination of the amounts to be so placed or taken; and</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/34A/4/c/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/34A/4/c" id="section-34A-4-c">
<Pnumber>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">c</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d30p11529" CommentaryRef="c1482071">as to such other matters incidental to the maintenance of an equalisation reserve as the Secretary of State considers expedient.</Addition>
</Text>
</P3para>
</P3>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group RestrictExtent="E+W+S+N.I." RestrictStartDate="1994-01-05" RestrictEndDate="1994-07-01" ConfersPower="true">
<Title> Form and situation of assets.</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/35/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35" id="section-35">
<Pnumber>
<CommentaryRef Ref="c1482075"/>
35
</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/35/1/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35/1" id="section-35-1">
<Pnumber>1</Pnumber>
<P2para>
<Text>Regulations may make provision for securing that, in such circumstances and to such extent as may be prescribed, the assets of an insurance company to which this Part of this Act applies are maintained in such places as may be prescribed and the nature of the assets is appropriate in relation to the currency in which the liabilities of the company are or may be required to be met.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/35/2/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35/2" id="section-35-2">
<Pnumber>2</Pnumber>
<P2para>
<Text>
Regulations made for the purposes specified in subsection (1) above shall not have effect in relation to the assets of an insurance company whose head office is in a member State
<Addition ChangeId="d30p11257" CommentaryRef="c1482076">or which is a Swiss general insurance company</Addition>
so far as their value exceeds the amount of the liabilities of the business carried on by the company in the United Kingdom, that value and amount being determined in accordance with any applicable valuation regulations.
</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group RestrictExtent="E+W+S+N.I." RestrictStartDate="1994-07-01" RestrictEndDate="1994-12-30" Match="false">
<Title>
<Addition ChangeId="d30p11307">
<CommentaryRef Ref="c1482080"/>
Adequacy of assets.
</Addition>
</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/35A/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35A" id="section-35A">
<Pnumber>
<Addition ChangeId="d30p11307">35A</Addition>
</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/35A/1/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35A/1" id="section-35A-1">
<Pnumber>
<Addition ChangeId="d30p11307">1</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d30p11307">
A
<Acronym Expansion="United Kingdom">UK</Acronym>
company shall secure—
</Addition>
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/35A/1/a/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35A/1/a" id="section-35A-1-a">
<Pnumber>
<Addition ChangeId="d30p11307">a</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d30p11307">that its liabilities under contracts of insurance entered into by it, other than liabilities in respect of linked benefits, are covered by assets of appropriate safety, yield and marketability having regard to the classes of business carried on; and</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/35A/1/b/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35A/1/b" id="section-35A-1-b">
<Pnumber>
<Addition ChangeId="d30p11307">b</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d30p11307">without prejudice to the generality of paragraph (a) above, that its investments are appropriately diversified and adequately spread and that excessive reliance is not placed on investments of any particular category or description.</Addition>
</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/35A/2/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35A/2" id="section-35A-2">
<Pnumber>
<Addition ChangeId="d30p11307">2</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d30p11307">A UK company which has entered into a linked long term contract shall secure that, as far as practicable, its liabilities under the contract in respect of linked benefits are covered as follows—</Addition>
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/35A/2/a/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35A/2/a" id="section-35A-2-a">
<Pnumber>
<Addition ChangeId="d30p11307">a</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d30p11307">if those benefits are linked to the value of units in an undertaking for collective investments in transferable securities or to the value of assets contained in an internal fund, by those units or assets;</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/35A/2/b/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35A/2/b" id="section-35A-2-b">
<Pnumber>
<Addition ChangeId="d30p11307">b</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d30p11307">if those benefits are linked to a share index or other reference value not mentioned in paragraph (a) above, by units which represent that reference value, or by assets of appropriate safety and marketability which correspond, as nearly as may be, to the assets on which that reference value is based.</Addition>
</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/35A/3/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35A/3" id="section-35A-3">
<Pnumber>
<Addition ChangeId="d30p11307">3</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d30p11307">A UK company which has entered into a linked long term contract shall also secure that </Addition>
<Addition ChangeId="d30p11307">
<Addition ChangeId="d30p11355"> its liabilities under the contract in respect of linked benefitsunder the contract in respect of linked benefits as are not covered by contracts of reinsurance</Addition>
</Addition>
<Addition ChangeId="d30p11307"> are covered by assets of a description prescribed by regulations under section 78 below.</Addition>
</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/35A/4/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35A/4" id="section-35A-4">
<Pnumber>
<Addition ChangeId="d30p11307">4</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d30p11307">In this section—</Addition>
</Text>
</P2para>
<P2para>
<Text>
<Addition ChangeId="d30p11307">'linked benefits’, in relation to a contract of insurance, means benefits payable to the policy holder which are determined by reference to the value of or the income from property of any description (whether or not specified in the contract) or by reference to fluctuations in, or in an index of, the value of property of any description (whether or not so specified);</Addition>
</Text>
</P2para>
<P2para>
<Text>
<Addition ChangeId="d30p11307">'linked long term contract’ means a contract ofinsurance —</Addition>
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/35A/4/a/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35A/4/a" id="section-35A-4-a">
<Pnumber>
<Addition ChangeId="d30p11307">a</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d30p11307">the effecting of which constitutes the carrying on of long term business; and</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/35A/4/b/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35A/4/b" id="section-35A-4-b">
<Pnumber>
<Addition ChangeId="d30p11307">b</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d30p11307">under which linked benefits are payable to the policy holder.</Addition>
</Text>
</P3para>
</P3>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
<P1group RestrictExtent="E+W+S+N.I." RestrictStartDate="1994-07-01" RestrictEndDate="2001-12-01" Match="false">
<Title>
<Addition ChangeId="d30p11480" CommentaryRef="c1482085"> Adequacy of premiums: long term business.</Addition>
</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/35B/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35B" id="section-35B">
<Pnumber>
<Addition ChangeId="d30p11480" CommentaryRef="c1482085">35B</Addition>
</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/35B/1/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35B/1" id="section-35B-1">
<Pnumber>
<Addition ChangeId="d30p11480" CommentaryRef="c1482085">1</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d30p11480" CommentaryRef="c1482085">Before entering into a contract of insurance the effecting of which constitutes the carrying on of long term business, a UK company shall satisfy itself that the aggregate of—</Addition>
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/35B/1/a/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35B/1/a" id="section-35B-1-a">
<Pnumber>
<Addition ChangeId="d30p11480" CommentaryRef="c1482085">a</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d30p11480" CommentaryRef="c1482085">the premiums payable under the contract and the income which will be derived from them; and</Addition>
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/35B/1/b/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35B/1/b" id="section-35B-1-b">
<Pnumber>
<Addition ChangeId="d30p11480" CommentaryRef="c1482085">b</Addition>
</Pnumber>
<P3para>
<Text>
<Addition ChangeId="d30p11480" CommentaryRef="c1482085">any other resources of the company which will be available for the purpose,</Addition>
</Text>
</P3para>
</P3>
<Text>
<Addition ChangeId="d30p11480" CommentaryRef="c1482085">will be sufficient, on reasonable actuarial assumptions, to meet all commitments arising under or in connection with the contract.</Addition>
</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/ukpga/1982/50/section/35B/2/1994-01-05" IdURI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35B/2" id="section-35B-2">
<Pnumber>
<Addition ChangeId="d30p11480" CommentaryRef="c1482085">2</Addition>
</Pnumber>
<P2para>
<Text>
<Addition ChangeId="d30p11480" CommentaryRef="c1482085">A UK company shall not rely on other resources for the purposes of subsection (1) above in such a way as to jeopardise the solvency of the company in the long term.</Addition>
</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
</Pblock>
</Part>
</Body>
</Primary>
<Commentaries>
<Commentary id="c1481891" Type="C">
<Para>
<Text>
<CitationSubRef id="c00886" URI="http://www.legislation.gov.uk/id/ukpga/1982/50/part/II" SectionRef="part-II">Pt. II</CitationSubRef>
(ss. 15-71) restricted (1.1.1993) by
<Citation URI="http://www.legislation.gov.uk/id/uksi/1992/3218" id="c00887" Class="UnitedKingdomStatutoryInstrument" Year="1992" Number="3218">S.I. 1992/3218</Citation>
,
<CitationSubRef id="c00888" URI="http://www.legislation.gov.uk/id/uksi/1992/3218/regulation/65" Operative="true" CitationRef="c00887" SectionRef="regulation-65">reg65</CitationSubRef>
</Text>
</Para>
<Para>
<Text>
<CitationSubRef id="c00889" URI="http://www.legislation.gov.uk/id/ukpga/1982/50/part/II" SectionRef="part-II">Pt. II</CitationSubRef>
(ss. 15-71) extended (24.12.1996) by
<Citation URI="http://www.legislation.gov.uk/id/uksi/1996/3011" id="c00890" Class="UnitedKingdomStatutoryInstrument" Year="1996" Number="3011">S.I. 1996/3011</Citation>
,
<CitationSubRef id="c00891" URI="http://www.legislation.gov.uk/id/uksi/1996/3011/regulation/3/1/b" Operative="true" CitationRef="c00890" SectionRef="regulation-3-1-b">reg. 3(1)(b)</CitationSubRef>
,
<CitationSubRef id="c00892" URI="http://www.legislation.gov.uk/id/uksi/1996/3011/regulation/10/1" CitationRef="c00890" SectionRef="regulation-10-1">10(1)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c1482021" Type="C">
<Para>
<Text>
<CitationSubRef id="c01227" URI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32" SectionRef="section-32">S. 32</CitationSubRef>
modified by
<Citation URI="http://www.legislation.gov.uk/id/uksi/1983/224" id="c01228" Class="UnitedKingdomStatutoryInstrument" Year="1983" Number="224">S.I. 1983/224</Citation>
,
<CitationSubRef id="c01229" URI="http://www.legislation.gov.uk/id/uksi/1983/224/regulation/3/1" Operative="true" CitationRef="c01228" SectionRef="regulation-3-1">reg. 3(1)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c1482022" Type="F">
<Para>
<Text>
Words in
<CitationSubRef id="c01230" URI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/3" SectionRef="section-32-3">s. 32(3)</CitationSubRef>
inserted (5.1.1994) by
<Citation URI="http://www.legislation.gov.uk/id/uksi/1993/3127" id="c01231" Class="UnitedKingdomStatutoryInstrument" Year="1993" Number="3127">S.I. 1993/3127</Citation>
,
<CitationSubRef id="c01232" URI="http://www.legislation.gov.uk/id/uksi/1993/3127/regulation/3/3" Operative="true" CitationRef="c01231" SectionRef="regulation-3-3">reg. 3(3)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c1482023" Type="C">
<Para>
<Text>
<CitationSubRef id="c01233" URI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/32/5" SectionRef="section-32-5">S. 32(5)</CitationSubRef>
modified by
<Citation URI="http://www.legislation.gov.uk/id/uksi/1990/1181" id="c01234" Class="UnitedKingdomStatutoryInstrument" Year="1990" Number="1181">S.I. 1990/1181</Citation>
,
<CitationSubRef id="c01235" URI="http://www.legislation.gov.uk/id/uksi/1990/1181/regulation/3/2" Operative="true" CitationRef="c01234" SectionRef="regulation-3-2">regs. 3(2)</CitationSubRef>
,
<CitationSubRef id="c01236" URI="http://www.legislation.gov.uk/id/uksi/1990/1181/regulation/4" CitationRef="c01234" SectionRef="regulation-4">4</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c1482053" Type="C">
<Para>
<Text>
<CitationSubRef id="c01322" URI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/33" SectionRef="section-33">S. 33</CitationSubRef>
modified by
<Citation URI="http://www.legislation.gov.uk/id/uksi/1983/224" id="c01323" Class="UnitedKingdomStatutoryInstrument" Year="1983" Number="224">S.I. 1983/224</Citation>
,
<CitationSubRef id="c01324" URI="http://www.legislation.gov.uk/id/uksi/1983/224/regulation/3/1" Operative="true" CitationRef="c01323" SectionRef="regulation-3-1">reg. 3(1)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c1482068" Type="F">
<Para>
<Text>
<CitationSubRef id="c01362" URI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/34/1/c" SectionRef="section-34-1-c">S. 34(1)(c)</CitationSubRef>
and the preceding word “or” inserted ((5.1.1994) by
<Citation URI="http://www.legislation.gov.uk/id/uksi/1993/3127" id="c01363" Class="UnitedKingdomStatutoryInstrument" Year="1993" Number="3127">S.I. 1993/3127</Citation>
,
<CitationSubRef id="c01364" URI="http://www.legislation.gov.uk/id/uksi/1993/3127/regulation/3/4" Operative="true" CitationRef="c01363" SectionRef="regulation-3-4">reg. 3(4)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c1482075" Type="C">
<Para>
<Text>
<CitationSubRef id="c01374" URI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35" SectionRef="section-35">S. 35</CitationSubRef>
modified by
<Citation URI="http://www.legislation.gov.uk/id/uksi/1983/224" id="c01375" Class="UnitedKingdomStatutoryInstrument" Year="1983" Number="224">S.I. 1983/224</Citation>
,
<CitationSubRef id="c01376" URI="http://www.legislation.gov.uk/id/uksi/1983/224/regulation/3/3" Operative="true" CitationRef="c01375" SectionRef="regulation-3-3">reg. 3(3)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c1482076" Type="F">
<Para>
<Text>
Words in s. 35(2) inserted (5.1.1994) by
<Citation URI="http://www.legislation.gov.uk/id/uksi/1993/3127" id="c01377" Class="UnitedKingdomStatutoryInstrument" Year="1993" Number="3127">S.I. 1993/3127</Citation>
,
<CitationSubRef id="c01378" URI="http://www.legislation.gov.uk/id/uksi/1993/3127/regulation/3/5" Operative="true" CitationRef="c01377" SectionRef="regulation-3-5">reg. 3(5)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c1482080" Type="F">
<Para>
<Text>
<CitationSubRef id="c01388" URI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35A" SectionRef="section-35A">S. 35A</CitationSubRef>
inserted (1.7.1994) by
<Citation URI="http://www.legislation.gov.uk/id/uksi/1994/1696" id="c01389" Class="UnitedKingdomStatutoryInstrument" Year="1994" Number="1696">S.I. 1994/1696</Citation>
,
<CitationSubRef id="c01390" URI="http://www.legislation.gov.uk/id/uksi/1994/1696/regulation/17" Operative="true" CitationRef="c01389" SectionRef="regulation-17">reg. 17</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c1482085" Type="F">
<Para>
<Text>
<CitationSubRef id="c01403" URI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/35B" SectionRef="section-35B">S. 35B</CitationSubRef>
inserted (1.7.1994) by
<Citation URI="http://www.legislation.gov.uk/id/uksi/1994/1696" id="c01404" Class="UnitedKingdomStatutoryInstrument" Year="1994" Number="1696">S.I. 1994/1696</Citation>
,
<CitationSubRef id="c01405" URI="http://www.legislation.gov.uk/id/uksi/1994/1696/regulation/18" Operative="true" CitationRef="c01404" SectionRef="regulation-18">reg. 18</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="c1482071" Type="F">
<Para>
<Text>
<CitationSubRef id="c01406" URI="http://www.legislation.gov.uk/id/ukpga/1982/50/section/34A" SectionRef="section-34A">S. 34A</CitationSubRef>
inserted (30.4.1996) by
<Citation URI="http://www.legislation.gov.uk/id/ukpga/1995/29" id="c01407" Year="1995" Class="UnitedKingdomPublicGeneralAct" Number="29">1995 c. 29</Citation>
,
<CitationSubRef id="c01408" URI="http://www.legislation.gov.uk/id/ukpga/1995/29/section/1/1" Operative="true" CitationRef="c01407" SectionRef="section-1-1">s. 1(1)</CitationSubRef>
;
<Citation URI="http://www.legislation.gov.uk/id/uksi/1996/945" id="c01409" Class="UnitedKingdomStatutoryInstrument" Year="1996" Number="945">S.I. 1996/945</Citation>
,
<CitationSubRef id="c01410" URI="http://www.legislation.gov.uk/id/uksi/1996/945/article/2" Operative="true" CitationRef="c01409" SectionRef="article-2">art. 2</CitationSubRef>
</Text>
</Para>
</Commentary>
</Commentaries>
</Legislation>