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The Rulebook Glossary contains defined terms used in more than one Part across the PRA Rulebook.

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Term Definition Legal instruments for this definition

large firm



(1) a firm with a Part 4A permission to:

(a) effect contracts of insurance; or

(b) carry out contracts of insurance;

(2) the Society; or

(3) a managing agent

in respect of which: 

(a) the amount of the firm’s gross written premiums exceeds £1 billion in each annual report and accounts prepared by the firm for each of the previous three financial years; or

(b) the amount of the firm’s assets relating to all regulated activities carried on by the firm exceeds £10 billion in each annual report and accounts prepared by the firm for each of the previous three financial years


(i) where the firm has not produced annual report and accounts for three financial years, the amounts in (a) and (b) are the amounts reported by the firm in those annual report and accounts that have been published by the firm; and 

(ii) where the firm is a third country branch undertaking, the amounts in (a) and (b) are only those amounts relating to the operations effected by the third country branch.

large non-directive insurer


means a non-directive insurer in respect of which the value of assets relating to all regulated activities carried on by the firm as included in its two most recent reported annual accounts is more than £25,000,000.

leading insurer


means (in relation to a Community co-insurance operation) a co-insurer that assumes the leader’s role in co-insurance practice and in particular determines the terms and conditions of insurance and rating.

liabilities to policyholders


means (in relation to a firm carrying out contracts of insurance) any liability or obligations of that firm  to, or in respect of, a policyholder.

liability of ships


means the class of contract of insurance, specified in paragraph 12 of Part I of Schedule 1 to the Regulated Activities Order.

linked benefit


means a benefit payable under a linked long-term contract of insurance or a regulated collective investment scheme the amount of which is determined by reference to:

(1) the value of the property of any description (whether specified or not);

(2) fluctuations in the value of any such property;

(3) income from such property; or

(4) fluctuations in an index of the value of such property.

linked long-term


means (in relation to a contract of insurance) a contract of long-term insurance where the benefits are wholly or partly to be determined by reference to the value of, or the income from, property of any description (whether or not specified in the contract) or by reference to fluctuations in, or in an index of, the value of property of any description (whether or not so specified).

linked long-term liabilities


means the insurance obligations in respect of linked benefits under a linked long-term contract of insurance.




(1) included in an official list; or

(2) in respect of which facilities for dealing on a regulated market have been granted.

Lloyd's trust deed


means a trust deed in the form prescribed by the Society and notified to the PRA, for execution by a member in respect of his insurance business.

Lloyd's trust fund


means a fund held on the terms of a Lloyd's trust deed.

long-term care insurance contract


a long-term insurance contract:

(a) which provides, would provide at the policyholder's option, or is sold or held out as providing, benefits that are payable or provided if the policyholder's health deteriorates to the extent that he cannot live independently without assistance and that is not expected to change; and

(b) under which the benefits are capable of being paid for periodically for all or part of the period that the policyholder cannot live without assistance;

where 'benefits' are services, accommodation or goods necessary or desirable for the continuing care of the policyholder because he cannot live independently without assistance.

long-term insurance assets


has the meaning set out in Insurance Company – Internal Contagion Risk 4.2.

long-term insurance business


the business of effecting contracts of insurance or carrying out contracts of insurance in each case in relation to contracts of long-term insurance only.

long-term insurance business asset


in relation to a friendly society, means the assets of a firm which are, for the time being, identified as representing the long-term insurance business fund or funds maintained by that firm in respect of its long-term insurance business.

long-term insurance capital requirement


means the amount determined in accordance with Insurance Company – Capital Resources Requirement 14.1, being the sum of the insurance death risk capital component, the insurance health risk and life protection reinsurance capital component, the insurance expense risk capital component, the insurance market risk capital component and the resilience capital requirement.

long-term insurance contract


means a “contract of long-term insurance” as defined in Article 3(1) of the Regulated Activities Order.

long-term insurance fund


has the meaning set out in Insurance Company – Internal Contagion Risk 4.3.

long-term insurance liabilities


means liabilities arising from long-term insurance business.

long-term insurer


means an insurer with permission to effect contracts of insurance or carry out contracts of insurance that are contracts of long-term insurance.