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Term Definition Legal instruments

provision for claims outstanding

01/01/2016

THIS DEFINITION ONLY APPLIES TO THE FRIENDLY SOCIETY – REQUIRED MARGIN PART

means, in respect of a financial year, the amount set aside by the firm as at the beginning or end of the financial year as being an amount likely to be sufficient to meet:

(1) claims in respect of incidents occurring:

(a) in the case of an amount set aside as at the beginning of the financial year, before the beginning of that year; and

(b) in the case of an amount set aside as at the end of a financial year, before the end of that year,

being claims which have not been treated as claims paid and including claims relating to business accounted for over a longer period than a financial year, claims the amounts of which have not been determined and claims arising out of incidents that have not been notified to the firm; and

(2) expenses (such as, for example, legal or medical costs) which are likely to be incurred by the firm, whether through the employment of its own staff or otherwise and are directly attributable to the settlement of individual claims, whether or not the individual claims in question are those mentioned in (1),

less any recoverable amounts estimated by the firm to be recoverable by it in respect of the claims mentioned in (1), including amounts recoverable from third parties and amounts recoverable from other insurance undertakings but excluding amounts recoverable in respect of reinsurance ceded by the firm.