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Insurance Company – Capital Resources Requirements Insurance Health Risk and Life Protection Reinsurance Capital Component

Application provision

1.1 Unless otherwise stated, this Part applies to a non-directive insurer other than a non-directive friendly society.

16.1

01/01/2016

Subject to 16.2 the insurance health risk and life protection reinsurance capital component is the highest of:

  1. (1) the premiums amount;
  2. (2) the claims amount; and
  3. (3) the brought forward amount.

16.2

01/01/2016

16.1 only applies in respect of:

  1. (1) contracts of insurance falling in long-term insurance business class IV (and subject to the conditions set out in 13.1 as modified by 16.3);
  2. (2) risks falling in general insurance business classes 1 or 2 that are written as part of a contract of long-term insurance; and
  3. (3) in the case of a pure reinsurer or a mixed insurer, life protection reinsurance business.

16.3

01/01/2016

For the purposes of 16.2, 13.1(3) is replaced with: "either the reserves include a provision for increasing age, or the business is conducted on a group basis."