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Status: You are viewing the version of the handbook as on 2005-06-30.

LLD 24.5 Equalisation provisions

Application of PRU 7.5

LLD 24.5.1R

PRU 7.5 applies to the Society in accordance with LLD 16.3.1 R:

  1. (1)

    with the modification set out in LLD 24.5.2 R; and

  2. (2)

    except PRU 7.5.11 R to PRU 7.5.37 G.

LLD 24.5.2R

The Society must calculate a credit equalisation provision for the aggregate insurance business of all members; it is not required to calculate a credit equalisation provision separately for the business of each member.

LLD 24.5.3R

The Society must allocate the result of LLD 24.5.2 R between itself and each of the members on a fair and reasonable basis.