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Application provision

1.1 Unless otherwise stated, this Part applies to:

1.1

01/01/2016

Unless otherwise stated, this Part applies to:

  1. (1) a UK Solvency II firm; and
  2. (2) in accordance with 5, third country branch undertakings except Swiss general insurers.

1.2

01/01/2016

In this Part, the following definitions shall apply:

material transaction

means a transaction (when aggregated with any similar transactions) in which:

    1. (1) the price actually paid or received for the transfer of assets or liabilities or the performance of services; or
    2. (2) the price which would have been paid or received had that transaction been negotiated at arm's length between unconnected parties; 
      1. exceeds:
      2. (a) in the case of a firm which carries on long-term insurance business, but not general insurance business, the sum of €20,000 and 5% of the firm's liabilities arising from its long-term insurance business, excluding linked long-term liabilities and net of reinsurance ceded; or
      3. (b) in the case of a firm which carries on general insurance business, but not long-term insurance business, the sum of €20,000 and 5% of the firm's liabilities arising from its general insurance business, net of reinsurance ceded; or
      4. (c) in the case of a firm which carries on both long-term insurance business and general insurance business:
        1. (i) where the transaction is in connection with the firm's long-term insurance business, the sum of €20,000 and 5% of the firm's liabilities arising from its long-term insurance business, excluding linked long-term liabilities and net of reinsurance ceded; and
        2. (ii) in all other cases, the sum of €20,000 and 5% of the firm's liabilities arising from its general insurance business, net of reinsurance ceded.
        3. and
      5. (d) in the case of third country branch undertakings, a reference to the “firm’s liabilities” is to be interpreted as a reference only to the liabilities relevant to the operations effected by the third country branch.

scheme of operations

means a scheme which:

    1. (1) describes the nature of the risks which the insurer is underwriting, or intends to underwrite, and the guiding principles which it intends to follow in reinsuring or covering those risks; and
    2. (2) contains the information required under 3.1.