LLD 12.1 Application and purpose
Application
This chapter applies to the Society.
A contravention of the rules in this chapter does not give rise to a right of action by a private person under section 150 of the Act (Actions for damages) and each of those rules is specified under section 150(2) of the Act as a provision giving rise to no such right of action.
Purpose
These requirements provide safeguards against the risk that insurance liabilities will be underestimated (see also LLD 9.1.4 G).
Under LLD 9.4.1 R, subject to LLD 9 to LLD 15, the insurance accounts rules and generally accepted accounting practice apply to the valuation of assets and the determination of liabilities.