Friendly Society - Overall Resources and Guarantee Fund Calculating the Guarantee Fund
Application provision
1.1 Unless otherwise stated, this Part applies to a non-directive friendly society.
5.1
01/01/2016
The guarantee fund is an amount equal to the greater of:
- (1) one-third of the required margin of solvency; and
- (2) the minimum guarantee fund.
5.2
01/01/2016
In the case of long-term insurance business, a firm must maintain a margin of solvency (excluding implicit items), that are sufficient to cover the greater of:
- (1) the minimum guarantee fund; and
- (2) 50% of the guarantee fund.
5.3
01/01/2016
In the case of general insurance business, the unpaid initial fund of a firm and, in the case of a firm with variable contributions, any claim which the firm has against its members by way of a call for supplementary contributions for a financial year may not be taken into account in complying with 4.2.
5.4
01/01/2016
In the case of long-term insurance business, the unpaid initial fund of a firm and implicit items which relate to future profits and zillmerising may not be taken into account in complying with 4.2.