Section 154 | Meaning of “BLAGAB or eligible PHI business”

(1)In this Part “BLAGAB or eligible PHI business” means—

(a)basic life assurance and general annuity business, and

(b)any PHI business so far as consisting of the effecting or carrying out of qualifying contracts,

but see subsections (3) and (4) for some qualifications.

(2)A contract is a “qualifying” contract if—

(a)it is made before 1 September 1996, or

(b)it is made on or after that date and it also falls within paragraph I, II or III of Part 2 of Schedule 1 to the FISMA (Regulated Activities) Order 2001.

(3)A contract made before 1 September 1996 which effects a policy affording provision for injury, sickness or other infirmity is to be regarded for the purposes of this Part as forming part of “BLAGAB or eligible PHI business” only if—

(a)the policy also affords assurance for a gross sum independent of injury, sickness or other infirmity,

(b)at least 60% of the total premiums are attributable to the provision afforded during injury, sickness or other infirmity, and

(c)there is no bonus or addition which may be declared or accrue upon the assurance of the gross sum.

(4)Business is not to be regarded as “BLAGAB or eligible PHI business” of a friendly society for the purposes of this Part so far as it consists of the assurance of any annuity the consideration for which consists of sums obtainable—

(a)on the maturity, or

(b)on the surrender,

of any other policy of assurance issued by the society which forms part of its exempt BLAGAB or eligible PHI business.