4

Long-Term Insurance Business Margin of Solvency: Class IV

4.1

A firm must calculate the required margin of solvency in respect of class IV by applying the calculation in 2.2 plus the sum arrived at by applying Friendly Society – Overall Resources and Guarantee Fund 3.1(2) as though it were general insurance business class 2.

4.2

If both 4.1 and Friendly Society – Overall Resources and Guarantee Fund 3.2(2) apply, a single combined required margin of solvency must be calculated under Friendly Society – Overall Resources and Guarantee Fund 3.2(2) in respect of the class IV business and subsidiary provisions in classes 1 and 2.