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Run-off Operations Ceasing to Effect Contracts of Insurance

Application provision

1.1 The changes to this rule are effective from 23:00 on 31/12/2020.

Unless otherwise stated, this Part applies to:

  1. (1) a UK Solvency II firm; and
  2. (2) in accordance with 5, third country branch undertakings except:
    1. (a) Swiss general insurers; and
    2. (b) SRO insurers.

2.1

01/01/2016

If a firm decides to cease to effect new contracts of insurance in respect of the whole of its insurance business, it must, within 28 days of that decision, submit a run-off plan to the PRA including:

  1. (1) a scheme of operations, in accordance with 3; and
  2. (2) an explanation of how, or to what extent, all liabilities to policyholders will be met in full as they fall due.

2.2

01/01/2016

For the purposes of 2.1, a new contract of insurance excludes contracts effected under a term in a subsisting contract of insurance.

2.3

01/01/2016

A third country branch undertaking must apply the requirements in 2.1 and 2.2 taking account only of the operations effected by the third country branch.