Application provision

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



Subject to 2.3, a firm (other than a flat rate benefits business friendly society) must maintain a margin of solvency equal to or greater than the required margin of solvency.



Where a firm carries on both long-term insurance business and general insurance business, 2.1 has effect as if the requirement to maintain a margin of solvency were a requirement to maintain separate margins in respect of the two kinds of business.



2.1 does not apply to a firm which does not have Part 4A permission to effect contracts of insurance and is only carrying out contracts of insurance which were effected before 13 September 1993 (or effected pursuant to the terms of such a contract), provided that the firm maintains an excess of the value of its assets over the amount of its liabilities.