Acquisition Expenses


In order to take account of acquisition expenses, the maximum annual premium to be valued under 9 may, subject to 10.2, be increased by an amount not greater than the equivalent, taken over the whole period of premium payments and calculated according to the rates of interest and rates of mortality or disability employed in valuing the contract, of 3.5% (or the defined percentage, if it is lower than 3.5%) of the relevant capital sum under the contract.


The increase permitted by 10.1 must be subject to the limitation that the amount of a future premium valued must not in any event be greater than the amount of the premium actually payable by the policyholder.