Schedule 2
25.—(1) Paragraph 1 of Schedule 2 to the 1994 Regulations (general business solvency margin: first method of calculation (premium basis)) shall be amended as follows.
(2) After the definition of “gross premiums” insert—
““incepted” refers to the time when the liability to risk of a society under a contract of insurance commenced and, for this purpose, a contract providing continuous cover shall be deemed to commence on each anniversary date of the contract;”.
(3) For the definition of “receivable” substitute—
““receivable” in relation to a society, a financial year and a premium means due to the society in respect of contracts of insurance incepted during that financial year, whether or not the premium is received during that financial year.”.