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SUP App 2.2 Interpretation

SUP App 2.2.1R

For the purpose of SUP App 2.1 to 2.141:

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  1. (1)

    "capital resources":

    1. (a)

      in relation to a non-directive friendly society, has the meaning given to "margin of solvency" in rule 4.1(4) of IPRU(FSOC);

    2. (b)

      in relation to a participating insurance undertaking, means P+T, where P and T have the meanings given by INSPRU 6.1.45R (3)(a) 1and (e) respectively, as calculated in accordance with INSPRU 6.1.43 R1; and

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    3. (c)

      in relation to any other firm, means the firm's capital resources as calculated in accordance with GENPRU 2.2.17 R1;

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  2. (2)

    "guarantee fund":

    1. (a)

      in relation to a non-directive friendly society, has the meaning given to that term in IPRU(FSOC);

    2. (b)

      in relation to a participating insurance undertaking, means the amount of capital resources which that firm must hold to comply with INSPRU 6.1.45R (2)1;

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    3. (c)

      in relation to a firm which is not covered by (a) or (b), carrying on general insurance business, means the amount of capital resources which that firm must hold to comply with GENPRU 2.2.34 R1; and

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    4. (d)

      in relation to a firm which is not covered by (a) or (b), carrying on long-term insurance business, means the amount of capital resources which that firm must hold to comply with GENPRU 2.2.33 R1;

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  3. (3)

    "material transaction" means a transaction (when aggregated with any similar transactions) in which:

    1. (a)

      the price actually paid or received for the transfer of assets or liabilities or the performance of services; or

    2. (b)

      the price which would have been paid or received had that transaction been negotiated at arm's length between unconnected parties;

    exceeds:

    1. (c)

      in the case of a firm which carries on long-term insurance business, but not general insurance business, the sum of €20,000 and 5% of the firm's liabilities arising from its long-term insurance business, excluding property-linked liabilities and net of reinsurance ceded; or

    2. (d)

      in the case of a firm which carries on general insurance business, but not long-term insurance business, the sum of €20,000 and 5% of the firm's liabilities arising from its general insurance business, net of reinsurance ceded; or

    3. (e)

      in the case of a firm which carries on both long-term insurance business and general insurance business:

      1. (i)

        where the transaction is in connection with the firm's long-term insurance business, the sum of €20,000 and 5% of the firm's liabilities arising from its long-term insurance business, excluding property-linked liabilities and net of reinsurance ceded; and

      2. (ii)

        in all other cases, the sum of €20,000 and 5% of the firm's liabilities arising from its general insurance business, net of reinsurance ceded; and

  4. (4)

    "required margin of solvency":

    1. (a)

      in relation to a non-directive friendly society, has the meaning given to that term in IPRU(FSOC);

    2. (b)

      in relation to a participating insurance undertaking, means R-S-U, where R, S and U have the meanings given by INSPRU 6.1.45R (3)(c), (d) and (f)1 respectively;

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    3. (c)

      in relation to a firm which is not covered by (a) or (b), carrying on general insurance business, means the general insurance capital requirement applicable to that firm; and

    4. (d)

      in relation to a firm which is not covered by (a) or (b), carrying on long-term insurance business, means the long-term insurance capital requirement applicable to that firm.

SUP App 2.2.2G

The calculation of each of the base capital resources requirement, the long-term insurance capital requirement and the general insurance capital requirement is set out in GENPRU 2.11. The calculation of each of the "guarantee fund" and "required margin of solvency" for non-directive friendly societies is set out in chapter 4 of IPRU(FSOC).

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