Prudential Regulation Authority Rulebook

1.1

Unless otherwise stated, this Part applies to all firms for the purposes of determining whether they are subject to any of the provisions of the Solvency II Firms Sector of the PRA Rulebook.

1.2

In this Part, the following definitions shall apply:

ancillary risk

1. (1) subject to (2), means (in relation to an insurer with Part 4A permission to insure a principal risk belonging to one class of general insurance business) a risk included in another such class which is:
1. (a) connected with the principal risk,
2. (b) concerned with the object which is covered against the principal risk, and
3. (c) the subject of the same contract insuring the principal risk.
2. (2) the risks included in classes 14, 15 and 17 may not be treated as risks ancillary to other classes, except that the risk included in class 17 may be regarded as an ancillary risk of class 18 where:
1. (a) the conditions laid down in (1)(a) to (1)(c) are fulfilled, and
2. (b) the principal risk relates solely to assistance provided for persons who fall into difficulties while travelling, while away from home or while away from their permanent residence or where it concerns disputes or risks arising out of, or in connection with, the use of sea going vessels.

[Note: Art. 16 of the Solvency II Directive]

assistance

means the class of contract of general insurance, specified in paragraph 18 of Part I of Schedule 1 to the Regulated Activities Order.

requirement

means a requirement or limitation included in a firm's Part 4A permission under section 55F(4) of FSMA (Giving permission: the PRA), section 55L(3) of FSMA (Imposition of requirements by the FCA), section 55M(3) of FSMA (Imposition of Requirements by the PRA) or section 55O of FSMA (Imposition of requirements on acquisition of control).

Solvency II excluded operations

means:

1. (1) a mutual whose insurance business is restricted to the provision of benefits which vary according to the resources available and in which the contributions of the members are determined on a flat- rate basis; or
2. (2) a mutual whose liabilities in respect of contracts of general insurance must be fully reinsured with or guaranteed by other mutuals (including friendly societies) and the mutuals providing the reinsurance or the guarantees are Solvency II undertakings.

syndicate liabilities

means liabilities managed by a managing agent in respect of insurance business carried on through a syndicate.