Market level indicators10

1

In these Regulations “market level indicator”, “monthly market level indicator” and “average market level indicator” shall be construed in accordance with the provisions of this regulation.

2

“Market level indicator” means—

a

for the purpose of determining the amount of a premium in a case to which regulation 3, 4, 5 or 7(a) of these Regulations applies, the sum of—

i

312 divided by x, where x per cent. is the gross dividend yield, and

ii

the 20-year index number; and

b

for the purpose of determining the amount of a premium in a case to which regulation 6 or 7(b), (c) or (d) of these Regulations applies, the 15-year index number.

3

“Monthly market level indicator”, in relation to any month, means the average of the market level indicators derived from the 15-year index numbers or (as the case maybe) the 20-year index numbers and the gross dividend yields, appropriate to the first 5 days on which the London Stock Exchange was open in that month, rounded, if that average is not a whole number, to the nearest whole number, or to the nearest lower whole number where the decimal part of that average is 0.5.

4

“Average market level indicator” means the average, rounded, if it is not a whole number, in the manner described in paragraph (3) of this regulation, of the monthly market level indicators relating to all of the months in the 5-year period preceding the month in which the event giving rise to the liability for the premium occurred.