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Application provision

1.1 Unless otherwise stated, this Part applies to:

  1. (1) a UK Solvency II firm;
  2. (2) in accordance with Insurance General Application 3, the Society, as modified by 12; and
  3. (3) in accordance with Insurance General Application 3, managing agents, as modified by 12.

10.1

01/01/2016

A firm must not enter into a contract of long-term insurance unless it is satisfied, on reasonable actuarial assumptions, that the premiums receivable shall be sufficient:

  1. (1) to enable the firm to meet all of its commitments; and
  2. (2) in particular, to establish adequate technical provisions as required in the Technical Provisions Part of the PRA Rulebook.

Additional Notes


[Note: Art. 209 of the Solvency II Directive]

10.2

01/01/2016

For the purposes of 10.1, all aspects of the financial situation of the firm may be taken into account, provided that input from resources other than premiums and investment income expected to be earned from premiums is not systematic and permanent in a way that may jeopardise the long-term solvency of the firm.

Additional Notes


[Note: Art. 209 of the Solvency II Directive]