The Friendly Societies (Long Term Insurance Business) Regulations 1987

Interpretation—general

2.—(1) In these Regulations, unless the context otherwise requires–

“the 1923 Act” means the Industrial Assurance Act 1923(1);

“the 1974 Act” means the Friendly Societies Act 1974(2);

“annual contribution income” means the income of a society from long term business in any year of account without any deduction for reinsurance cessions;

“authorised society” means a society authorised to carry on insurance business under Regulation 5 or 6 below;

“the Central Office” means the Central Office of the Registry of Friendly Societies;

“the Chief Registrar” means the Chief Registrar of Friendly Societies;

“collecting society” has the meaning given in section 1(1A) (Industrial assurance business) of the 1923 Act;

“deposit back arrangement”, in relation to any contract of reinsurance, means an arrangement whereby an amount is deposited by the reinsurer with the cedant;

“direct insurance business” means insurance business that is not reinsurance;

“the guarantee fund” has the meaning given in Regulation 19 below;

“the Industrial Assurance Commissioner” has the meaning given in section 2 (Industrial Assurance Commissioner) of the 1923 Act;

“mathematical reserves” means the provision made by a society to cover liabilities (excluding liabilities which have fallen due and liabilities arising from deposit back arrangements) arising under or in connection with contracts for long term business;

“the minimum guarantee fund” has the meaning given in Regulation 19 below;

“premium” includes a contribution in respect of an insurance benefit and the consideration for the granting of an annuity;

“public file” means the file of documents open to inspection by members of the public which is kept in respect of a society by the Central Office or the Assistant Registrar for Scotland;

“Schedule” means Schedule to these Regulations;

“society” means a society which is a friendly society within the meaning of section 7(1)(a) (Societies which may be registered) of the 1974 Act and is registered within the meaning given in section 111(1) (Interpretation) thereof and in the case of a society with branches means the central body and the branches of the society;

“year of account” has the meaning given in section 111(4) of the 1974 Act.

(2) In these Regulations, unless the context otherwise requires–

(a) “long term business” means direct insurance business of any of the classes specified in Part I of Schedule 1, and supplementary business, and “class” means a class specified in Part I of Schedule 1;

(b) “supplementary business” means the effecting and carrying out, by a society authorised to carry on long term business of class I, of that part of a contract whose principal object is within any class of long term business, which contains related and subsidiary provisions for insurance business of one or both of the classes specified in Part II of Schedule 1, and supplementary business shall be taken to constitute the carrying on of long term business;

(c) “ordinary long term business” means long term business other than industrial assurance business;

(d) “industrial assurance business” has the meaning given in section 1(2) of the 1923 Act.

(3) For the purposes of these Regulations–

(a) a unit of account is the unit of account known as the ECU and defined in Council Regulation (EEC) No. 3180/78(3) (which changed the value of the unit of account used by the European Monetary Co-operation Fund), and

(b) the rate of conversion from the ECU to pounds sterling shall as from 31st December of each year be the rate published in the Official Journal of the Communities on the last day of the preceding October for which ECU conversion rates were so published for the currencies of all states that were then Member States.

(1)

1923 c. 8.

(2)

1974 c. 46.

(3)

OJ No. L379, 30.12.78, p. l.