Prudential Regulation Authority Rulebook

13.1

The conditions referred to in 8.2(2) and 9.2(2) are that:

1. (1) the health insurance is underwritten on a similar technical basis to that of life insurance;
2. (2) the premiums paid are calculated on the basis of sickness tables according to the mathematical method applied in insurance;
3. (3) a provision is set up for increasing age;
4. (4) an additional premium is collected in order to set up a safety margin of an appropriate amount;
5. (5) it is not possible for the firm to cancel the contract after the end of the third year of insurance; and
6. (6) the contract provides for the possibility of increasing premiums or reducing payments even for current contracts.