Exposure Draft of Additional Guidance Notes for Appointed Actuaries

Extract

1.1. Part VI of The Insurance Companies Regulations 1981 comprises regulations governing the valuation of liabilities of insurance companies for various purposes under the Insurance Companies Acts 1974 and 1981. In particular these regulations govern the valuations of long-term liabilities for the purposes of an investigation to which Section 14 or Section 34 of the 1974 Act applies. Such an investigation would normally be for determining:

(a) whether the statutory certificate in respect of long-term business required by Regulation 18 of The Insurance Companies (Accounts and Statements) Regulations 1980 could be given;

(b) the extent to which assets could be transferred out of the fund in accordance with Section 24(2) of the 1974 Act, having regard to Section 25, as amended by Section 20 of the 1981 Act; or

(c) whether a dividend may be declared by the company or a parent, having regard to Section 24(6) of the 1974 Act.