Section 740 | Conditions to be met where policies are linked

(1)The conditions in this section only apply if—

(a)the insured is or has been the insured under one or more other policies (“connected policies”), and

(b)each of the connected policies has been in force either—

(i)at a time when the policy in question was in force, or

(ii)at the time immediately before it was entered into.

(2)The conditions are that so far as the terms of the policy relate to the health or employment risk—

(a)they do not differ significantly from what they would have been if no connected policies had been entered into, and

(b)the way in which they are given effect does not differ significantly from the way in which they would have been given effect in that case.

(3)A difference relating only to the reduction of benefits payable to or in respect of a person under the policy because of benefits being payable to or in respect of the person under any of the connected policies is to be ignored.

(4)For the purposes of this section, all the persons for whose benefit the policy provides insurance against the health or employment risk are to be considered.