SCHEDULE 2 GENERAL BUSINESS SOLVENCY MARGIN: FIRST METHOD OF CALCULATION (PREMIUM BASIS)

1.  In this Schedule—

• “gross premiums”, in relation to a society and a financial year—

  (a)

  means premiums after deduction of discounts, refunds and rebates of premium but before deduction of premiums for reinsurance ceded and before deduction of commission payable by the society, and

  (b)

  includes premiums receivable by the society under reinsurance contracts accepted by the society;

• “receivable”, in relation to a society, a financial year and a premium, means recorded in the society’s books as due to the society in respect of—

  (a)

  a contract commencing in that year, or

  (b)

  a contract not accounted for in an annual revenue account of the society prior to that year, even though the contract commenced in an earlier financial year,

  whether or not the society has received the premium;

• “recoverable”, in relation to a society and a financial year, means recorded in the society’s books as due in that year, whether or not the society has received any payment.