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Application provision

1.1 Unless otherwise stated, this Part applies to a non-directive insurer which carries on long-term insurance business, other than a non-directive friendly society.

7.1

01/01/2016

In a prospective valuation, a firm must:

  1. (1) include in the cash flows to be valued, the following:
    1. (a) future premiums;
    2. (b) expenses, including commissions;
    3. (c) benefits payable; and
    4. (d) subject to (2), amounts to be received or paid in respect of contracts of long-term insurance under contracts of reinsurance or analogous non-reinsurance financing agreements; but
  2. (2) exclude from those cash flows amounts recoverable from an ISPV.