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Application provision

1.1 Unless otherwise stated, this Part applies to:

7.1

01/01/2016

A firm must not enter into a contract of long-term insurance unless it is satisfied on reasonable actuarial assumptions that:

  1. (1) the premiums receivable and the investment income expected to be earned from those premiums; and
  2. (2) the reinsurance arrangements made in respect of the risk or risks covered by that new contract;

are sufficient to enable it, when taken together with the firm's other resources, to meet the requirements in 7.2.

7.2

01/01/2016

The requirements referred to in 7.1 are, to:

  1. (1) establish adequate technical provisions as required by 2.2;
  2. (2) hold admissible assets of a value at least equal to the amount of the technical provisions and other long-term insurance liabilities as required by 4; and
  3. (3) maintain adequate overall financial resources as required by Insurance Company - Overall Resources and Valuation 2.3.