SUP App 2.2 Interpretation

For the purpose of SUP App 2:

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 PRU 8.3.45R(3)(a) and (e) respectively, as calculated in accordance with PRU 8.3.43R; and

   3. (c)

      in relation to any other firm, means the firm's capital resources as calculated in accordance with PRU 2.2.12R;

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 PRU 8.3.45R(2);

   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 PRU 2.2.18R; and

   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 PRU 2.2.17R;

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 PRU 8.3.45R(3)(c), (d) and (f) respectively;

   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.