Insurance Companies (Valuation of Assets) Regulations 1974
| Jurisdiction | UK Non-devolved |
| Citation | SI 1974/2203 |
1974 No. 2203
INSURANCE
The Insurance Companies (Valuation of Assets) Regulations 197430thDecember 1974
10thJanuary 1975
1stFebruary 1975
The Secretary of State, in exercise of his powers under sections 78 and 86 of the Insurance Companies Act 1974(a), hereby makes the following Regulations:
Citation and commencement
1. These Regulations may be cited as the Insurance Companies (Valuation of Assets) Regulations 1974 and shall come into operation on 1st February 1975.
Interpretation
2.—(1) In these Regulations, unless the context otherwise requires—
"the Act" means the Insurance Companies Act 1974;
"asset" includes part of an asset;
"Building Society" means a building society within the meaning of the Building Societies Act 1962(b) or the Building Societies Act (Northern Ireland) 1967(c);
"computer equipment" means the electro-mechanical and electronic units which make up a computer configuration;
"debenture" includes debenture stock and bonds, whether constituting a charge on assets or not, and loan stock or notes;
"debenture option" means a right exercisable within a specified period, at the option of the holder of the right, to acquire or dispose of any debenture at a specified price;
"debt" includes an obligation to pay a sum of money under a negotiable instrument;
"dependent company" means, in relation to an insurance company, any body corporate of which (if that body corporate were also an insurance company) the insurance company would be a controller within the meaning of section 7 of the Act;
(a) 1974 c. 49.
(b) 1962 c. 37.
(c) 1967 c. 31 (N.I.).
"equity share capital" has the same meaning as in section 154(5) of the Companies Act 1948(a) and "equity share" shall be construed accordingly;
"general business assets" and "general business liabilities" mean respectively assets and liabilities of an insurance company which are not long term business assets or long term business liabilities;
"Industrial and Provident Society" means any society registered (or deemed to be registered) under the Industrial and Provident Societies Act 1965(b) or the Industrial and Provident Societies Act (Northern Ireland) 1969(c);
"insurance company" includes, in relation to the application of these Regulations for the purposes of section 4 of the Act, a body proposing to carry on insurance business;
"intermediary" means a person who in the course of any business or profession invites other persons to make offers or proposals or to take other steps with a view to entering into contracts of insurance with an insurance company, other than a person who only publishes such invitations on behalf of, or to the order of, some other person;
"land" includes any interest in land;
"liability" includes part of a liability;
"linked assets" means, in relation to an insurance company, long term business assets of the company which are, for the time being, identified in the records of the company as being assets by reference to the value of which property linked benefits are to be determined;
"long term business assets" and "long term business liabilities" mean respectively assets of an insurance company which are for the time being identified as representing the long term fund or funds maintained by the company in respect of its long term business and liabilities of the company which are attributable to its long term business;
"middle market price" means—
(a) in relation to an investment for which two prices are quoted in the official list published for the relevant market, the average of the two prices so quoted for the day on which the investment falls to be valued or, if no official list has been published for that day, for the most recent day prior to that day for which the official list has been published;
(b) in relation to an investment for which one price is quoted in the official list for the relevant market, the price so quoted for the day on which the investment falls to be valued or, if no official list has been published for that day, for the most recent day prior to that day for which the official list has been published; and
(c) in any other case, the nearest equivalent to the average referred to in paragraph (a) above which is published or can be reasonably ascertained from information which is published;
(a) 1948 c. 38.
(b) 1965 c. 12.
(c) 1969 c. 24 (N.I.).
"price earnings ratio" means the Financial Times-Actuaries estimated price earnings ratio (net) relating to the Industrial Group;
"property linked benefits" means benefits provided for under any contracts of the kind mentioned in section 83(2) of the Act, the amount of which is to be determined by reference to the value of property of any description (whether specified in the contracts or not);
"quoted" means, in relation to an investment—
(a) that there has been granted a quotation or permission to deal in respect of that investment on a stock exchange which is a recognised stock exchange within the meaning of the Companies Act 1948(a);
(b) that there has been granted such a quotation or permission on any stock exchange of repute outside Great Britain; or
(c) that dealings in that investment are effected in a securities market of repute outside Great Britain being a market in which prices of all securities of which there are dealings are publicly quoted and which is supervised by a public authority;
and "unquoted" shall be construed accordingly;
"salvage right" means any right of an insurance company under a contract of insurance to take possession of and to dispose of property by virtue of the fact that the company has made a payment or has become...
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