S.I. No. 360/1994 - European Communities (Life Assurance) Framework Regulations, 1994

Non-linked contracts the nature of which or the method of valuation of which makes it impossible or inappropriate to give the information required in columns 7 to 11 of Form 25 shall be shown separately and the reason for the impossibility or the inappropriateness stated.

Linked contracts the nature of which or the method of valuation of which makes it impossible or inappropriate to give the information in the exact form required by Form 26 shall be shown on a separate valuation summary with appropriately modified column headings and the reason for the modification stated.

Contracts of any description may be grouped together under a "miscellaneous" heading provided that mathematical reserves for business shown under all such headings in any one valuation summary do not exceed 5 per cent. of the total mathematical reserves for all business shown in that valuation summary.

Contracts with deferred participation in profits and contracts with an option to convert to another category of contract shall be included in the category in which they fall at the date to which the investigation relates.

Contracts on more than one life may be included with single life contracts.

Contracts subject to limited premiums may be included with contracts under which premiums are payable throughout.

Life annuities guaranteed for a term certain or which provide for a refund of the balance of the purchase money on early death may be included with other life annuities.

In the case of contracts with variable benefits the benefits shall be taken as at the date to which the investigation relates and, where such benefits are included as approximate amounts only, that fact shall be stated.

In relation to group deferred annuity contracts under which premiums have not ceased, a statement of how the amount of annual office premiums has been arrived at shall be given.

Where for group life and pension schemes the mathematical reserves at the valuation date are based on those in respect of the business in force at the last scheme revision date, any adjustment on account of changes after that date shall be shown separately.

In relation to each category of contract, where it is appropriate, it shall be stated whether the amount of the sum assured or deferred annuity shown in the valuation summary is the full sum assured or annuity which would come into payment on the maturity date or the amount accrued or actually purchased at the date to which the investigation relates and, where it is the amount accrued or actually purchased at the date, an estimate of the full prospective sum assured or annuity for that category shall be given.

Reinsurance ceded should be shown in negative form (i.e. in brackets) in each sheet for each business type described in paragraph 2 above.

The total of column 4 shall equal the total of column 11 on Form 26.

A separate line shall be used for each recognised unit trust and each different type of unit of each internal linked fund.

The entry at line 1 shall be equal to the entry at line 16 in the revenue account for the relevant fund/part of fund.

Where interim, mortuary or terminal bonuses are determined in advance of a valuation and are paid in anticipation of surplus arising at the valuation, the amounts of such bonus actually paid in the period up to the valuation date shall be entered in lines 2 and 17. To the extent that it is the practice to make specific provision for the cost of such bonuses payable on future claims out of surplus arising at a valuation, such amounts shall be treated as amounts allocated to policyholders at the valuation in question and included in line 20, and the actual amounts paid shall not appear at lines 2 and 17 at future valuations. An appropriate note shall be attached identifying the various items where necessary.

Where policies have been transferred from one fund/part of fund to another, the associated transfer of reserves shall not be included as a "transfer" in this Form. Where any other transfer has been made, only one positive figure shall be inserted in either line 5 or 14 (depending on the direction of the net transfer) leaving the other line blank. Corresponding entries shall be made in either line 3 or line 4 or line 12 or line 13, as appropriate.

Where the entry in line 4 or line 13 represents more than one transaction, each transfer shall be separately identified in the form or in a note.

In the case of an undertaking which makes allocations to eligible policyholders generally at intervals of more than one year, bonus payments made to policyholders in anticipation of a surplus, transfers to or from other income and expenditure or to or from other funds or parts of funds shall include the amounts of all such bonus payments and transfers made since the date of the last general allocation. In that case the word "valuation" in lines 11 and 15 shall be replaced by "general allocation", and line 11 shall show the balance of the surplus brought forward unappropriated from the date of the last general allocation and line 15 shall show the total amount of the surplus arising since that date. When the bonus payments or transfers relate to a period of more than one year that fact shall be stated in a note.

Line 27 is line 22 expressed as a percentage of line 24.

After distribution of surplus.

Line 8 equals line 7 x [5 (a) x 0.1% + 5 (b) x 0.15% - 5 (c) x 0.3%] for Classes I and II, or the 7 x 5 (d) x 0.3% for Class III and Class VII.

Any additional mathematical reserves referred to in the note to Form 16 shall be included on this Form.

The appropriate factor specified in Article 18 of the Regulations of 1984.

The date at which the valuation is made shall be stated.

(1) A statement for each category of non-linked contract which is separately distinguished in Form 25 is to be given in such one of the forms set out in forms 31 to 36 as is appropriate to that category of contract, or, in the case of a category of contract to which none of these forms is appropriate, in such form and containing such particulars as are sufficient to enable an independent assessment of the liabilities of the undertaking's life assurance business to be made. As far as possible, the order in which the statements appear in this Schedule shall follow the order in which the categories of contract appear in Form 25.

(1) In the case of a category of linked contract being a single premium whole life assurance where the death benefit is a function of the age at death and has been calculated to be equivalent to the valuation mortality rate, so as to make the value of the death benefit liability independent of age, it is sufficient for that factor to be stated and for the information to be given for all ages combined rather than analysed by age groups as required by paragraph 2 (2).

In the case of those categories of contract which are shown in Forms 25 and 26 under a heading of "miscellaneous", statements may be prepared in the form set out in Forms 37 and 44 respectively, and, if this is done, no statement need be prepared in pursuance of paragraph 2 for those categories of contract.

(1) For all contracts other than those included under the description "miscellaneous" in Forms 25 and 26 particulars are to be given of the methods and bases employed in calculating any minimum surrender values and paid-up amounts guaranteed in the contracts with examples of the application of the method to contracts which have been in force for 1, 2, 3, 4, 5, 10, 15 and 20 years taken out at each of the ages 25, 40 and 55 or for original terms of 10, 20 and 30 years maturing at age 60, as appropriate.

The information may be given for 5-year age groups.

The basis on which the age has been assessed shall be stated.

An explanation shall be given of the criteria adopted for deciding whether to value the cash option or the deferred annuity payments under such contracts.

For any contracts which have been valued by discounting the deferred annuity payments instead of the cash option, a separate table shall be given in the form of Form 34.

The information may be given for 5-year groups of year of commencement of annuity for annuities due to commence more than 10 years after the valuation date.

For deferred annuities secured under group or master contracts, under which premiums have not ceased but which have been valued on the basis that no future premiums will be payable, the cash options and annuity shown shall be those secured by the premiums already paid and no office premiums shall be given.

Separate tables shall be given in respect of business with a return of premiums on death before payment of the annuity is due to commence and in respect of business with no such benefit provided that one table only need be given for both these categories if that table contains sufficient additional information to enable the actuarial value of the death benefit to be estimated.

When the date on which the annuity was due to commence has passed but the annuity has not commenced and the cash option hs not been taken, the basis on which the cash option and annuity have been included shall be stated.

The information may be given for 5-year groups of year of commencement of annuity due to commence more than 10 years after the valuation date.

For deferred annuities secured under group or master contracts under which premiums have not ceased but which have been valued on the basis that no future premiums will be payable, the annuity shown shall be that secured by the premiums already paid and no office annual premiums shall be given.

Separate tables shall be given in respect of business with a return of premiums on death before payment of the annuity is due to commence and in respect of business with no such benefit, provided that one table only need be given for both these categories if that table contains sufficient additional information to enable the actuarial value of the death benefit to be estimated.

Where separate tables are not given for each age at which annuities are due to commence, the average age of commencement shall be stated, for each sex separately.

Where the date on which the annuity was due to commence has passed but the annuity has not commenced, the basis on which the annuity has been included (and the value of it, if shown) shall be stated.

For ages under 60, the information may be given for 5-year age groups.

The basis on which the age has been assessed shall be stated.

Deferred annuities where the date on which the annuity was due to commence has passed but the annuity has not commenced, and any cash option has not been taken, shall be included in Forms 33 and 34 as appropriate.

The information may be given for 5-year age groups.

The basis on which the age has been assessed shall be stated.

A separate column 4 shall be provided for each different unit link to which a category of contract is linked.

If there are any monetary guarantees on surrender, the contracts shall be classified by term to the next guarantee date rather than by age and an additional column showing the mean age shall be given.

The information may be given for 5-year age groups.

The basis on which the age has been assessed shall be stated.

A separate column 4 shall be provided for each different unit link to which a category of contract is linked.

Where the annual amount invested in units in future is not constant, this shall be stated and additional information given.

The information may be given for 5-year groups of year of maturity for contracts maturing more than 10 years after the valuation date.

A separate column 5 shall be provided for each different unit link to which a category of contract is linked.

Where the annual amount invested in units in future is not constant, this shall be stated and additional information given.

For contracts with monetary guarantees on surrender rather than on maturity, the year shown in column 1 shall be the year of the next such guarantee.

The information may be given for 5-year groups of year of maturity for contracts maturing more than 10 years after the valuation date.

A separate column 5 shall be provided for each different unit link to which a category of contract is linked.

Where the annual amount invested in units in future is not constant, it shall be stated and additional information given.

The information may be given for 5-year groups of year of commencement of annuity for annuities due to commence more than 10 years after the valuation date.

A separate column 2 shall be provided for each different unit link to which a category of contract is linked.

Separate tables shall be given in respect of business with a return of premiums on death before payment of the annuity is due to commence and in respect of business with no such benefit, provided that one table only need be given for both these categories if that table contains sufficient additional information to enable the actuarial value of the death benefit to be estimated.

For ages under 60 the information may be given for 5-year age groups.

The basis on which the age has been assessed shall be stated.

Columns 2 and 4 shall be completed only for those categories of contract where the company bears the mortality risk. Columns 3 and 5 shall be completed for those categories of contract where the policyholders bear the mortality risks.

A separate form shall be provided for each different unit link to which a category of contract is linked.

Subject to paragraph 2 (1), the supplementary amount in relation to assets of a relevant description held by a dependant of the insurance undertaking shall be determined in accordance with the following formula—

(1) Where for the purpose of determining any supplementary amount in accordance with paragraph 1 the insurance undertaking cannot reasonably ascertain—

(1) This paragraph applies where, for the purpose of ascertaining the value of the assets of the subject company under Article 40, any determination falls to be made in accordance with the said Article 40 of the value of the assets of a dependant of the insurance undertaking, a share in which, or a debt due or to become due from which, is an asset of the subject company; and references herein to a determination of the value of assets of a dependant to which this paragraph applies are references to any such determination.

The modifications of these Regulations applicable (in addition to that specified in paragraph 3 (2), with respect to the determination of the value of the assets of the subject company where it is not an insurance undertaking are as follows—

In this Schedule—

In this Schedule, a company is connected with another company if it is—

In this Schedule, a debt is fully secured on land if the amount that would be realised on the sale of that land at a price equal to the most recent proper valuation of that land would (after deducting the reasonable expenses of sale) be sufficient to enable that debt (and any other obligation secured on that land which has priority to or ranks equally with that debt) to be discharged in full.