Browse Books

Index to Housemans Law of Life Assurance, 14th Edition

Resource type: Chapter

Status: Law stated as at 01-Sep-2011

Jurisdictions: England, Wales

This is the index to the Bloomsbury Professional book Houseman's Law of Life Assurance, 14th edition. Chapter 9 and the table of contents are FREE to view, as a sample of the book's contents. To view the other chapters, please subscribe to Books online.

Robert Surridge, Brian Murphy and Noleen John

Index to Houseman's Law of Life Assurance, 14th edition

[all references are to paragraph number]

A

'A man and his own life'
insurable interest, and, 2.9
ABI
statement of long-term insurance practice, Appendix 3
Acceptance
e-commerce contracts, and, 1.39
formation of contracts, and, 1.5–1.9
Accumulation and maintenance trusts
introduction, 14.63
post-21 March 2006, 14.64
pre-22 March 2006, 14.65
Accumulations
generally, 11.100
reform proposals, 11.101
Actuaries
with-profits funds, and, 6.49
Administration
corporate insolvency, and, 12.32
Administrative receivership
corporate insolvency, and, 12.31
Administrators
distribution of estate
England and Wales, in, 9.58–9.61
introduction, 9.57
Northern Ireland, in, 9.66
Scotland, in, 9.62–9.65
generally, 9.39
Adoption
distribution of estate, and, 9.68
Advancement
care of children trusts, and, 11.28
Advertising Standards Authority (ASA)
financial promotion, and, 5.30–5.31
Advising and selling
commission disclosure, 4.64
demands and needs, 4.66
fees disclosure, 4.65
PPI cases, 4.68
status disclosure, 4.65
suitability, 4.67
Agents
acting for whom, 4.74
authority, 4.72
duties, 4.71
general principles, 4.70–4.77
introduction, 4.69
knowledge, 4.75–4.76
Law Commission proposals, 4.78
nature, 4.70
notice of assignment, and, 10.22
overview, 4.2
payment, 4.73
Aggregation
reassurance, and, 8.12
Agreement
discharge of contract, and, 9.2
Agricultural property relief
inheritance tax, and, 14.34–14.36
Aliens
capacity to contract, and, 1.18
Alternative risk transfer
reassurance, and
generally, 8.27
introduction, 8.6
Alternatively secured pensions
(see and see Registered pension schemes)
generally, 14.86–14.87
Annual allowance
registered pension schemes, and, 16.7
Annual exemption
inheritance tax, and, 14.26
Annual report
with-profits funds, and
generally, 6.50
introduction, 6.36
Annuities
capital element, with, 13.71
capital gains tax, and, 13.74
income tax, and
capital element, with, 13.71
deduction of tax, 13.66
foreign residents, 13.70
payment without deduction, 13.67–13.70
purchased life annuities, 13.71
UK residents, 13.68–13.69
inheritance tax, and
joint lives, 14.75
single life, 14.74
long-term care, and, 17.59
payment with deduction of tax, 13.66
payment without deduction of tax
foreign residents, 13.70
introduction, 13.67
UK residents, 13.68–13.69
proposal form, and, 1.29
purchased life annuities, 13.71
Anti-money laundering
introduction, 5.91
JMLSG Guidance Notes, 5.95
Money Laundering Sourcebook, 5.94
obligations, 5.93
relevant legislation, 5.92
SYSC Handbook, 5.94
Appeals
FSMA, and, 3.13
Appointed Representatives
Approved Person status, 4.30
continuing requirements, 4.32
exempt status, 4.26–4.27
Introducer ARs, 4.31
introduction, 4.25
prescribed activities, 4.28–4.29
terminology, 4.27
Appointment powers
fraud on the power, 11.24
generally, 11.23
specimen, Appendix 4
Appropriation
generally, 9.74
Approved persons
FSMA, and, 3.11
Arbitration
reassurance, and, 8.16
Assent
generally, 9.73
Assignment of policy
abroad, made, 10.14–10.16
constructive notice
generally, 10.28
production of deed, 10.30
production of policy, 10.29
deed, Appendix 8
enjoyment of benefit, 10.18
equitable assignment
form, 10.9
general, 10.4–10.5
Scotland, in, 10.6
equitable interests, 10.19
examination of title, 10.16
form
assignment made abroad, 10.14–10.16
equitable assignment, 10.9
gift, 10.13
legal assignment, 10.7–10.8
nominal consideration, 10.12
sale, 10.10–10.11
generally, 10.1
gift, by, 10.13
insurable interest, and, 2.7
joint tenancy, and, 10.8
legal assignment
form, 10.7–10.8
generally, 10.2–10.3
joint tenancy, 10.8
mortgages, and
discharge, 10.70–10.75
mortgagee's remedies, 10.64–10.69
mortgagor's remedies, 10.62–10.63
mortgagor's rights, 10.61
nature, 10.42–10.60
nominal consideration, for, 10.12
notice
agents, to, 10.22
constructive, 10.28–10.30
effect on priorities, 10.34–10.40
Law of Property Act 1925, under, 10.25–10.27
purpose, 10.21
Policies of Assurance Act 1867, under, 10.23–10.24
recording receipt, 10.32–10.33
specimen form, Appendix 9
withdrawal, 10.31
notice under Law of Property Act 1925
content, 10.26
debts and choses in action, 10.25
effect on priorities of equitable interests, 10.36
generally, 10.27
notice under Policies of Assurance Act 1867
effect, 10.23
effect on priorities of equitable interests, 10.35
generally, 10.24
payment to nominee, 10.17
priority
equitable encumbrances, 10.37–10.39
equitable interests, 10.35–10.36
introduction, 10.34
summary, 10.40
prohibition or restriction, 10.20
sale, by, 10.10
specimen deed, Appendix 8
stamp duty, 10.41
trusts, and, 11.74
void assignment, 10.11
voidable assignment, 10.11
Associated operations
inheritance tax, and, 14.7
Attestation
deeds, and, 1.83
Authorisation
advice, 4.20
agreeing to carry on, 4.22
Appointed Representatives, 4.25
arranging, 4.18
assisting in administration or performance, 4.21
FSMA, and
financial promotion, 3.32
general prohibition, 3.31
introduction, 3.9
procedure, 3.33
implementation of IMD, 4.17–4.25
introducing, 4.19
other exclusions, 4.23
overview, 4.16
territorial scope, 4.24
Automatic accrual
(see and see Business assurance)
agreement, and, 17.22
own life policies, 17.6
Avoidance of transactions
bankruptcy
introduction, 12.14
preferences, 12.16
transactions at an undervalue, 12.15
transactions defrauding creditors, 12.17
liquidation, 12.37

B

'Back-to-back' arrangements
estate planning, and, 15.19
inheritance tax, and, 14.72
reassurance, and, 8.29
Bankruptcy
appointment of trustee in bankruptcy, 12.12
avoidance of transactions
introduction, 12.14
preferences, 12.16
transactions at an undervalue, 12.15
transactions defrauding creditors, 12.17
bankrupt's estate, 12.13
death of bankrupt, 12.21
discharge, 12.20
excluded property, 12.18
forfeiture, 12.19
interim receiver, 12.10
introduction, 12.6
non-payment of premiums, 12.2
obtaining order, 12.7–12.11
Official Receiver, 12.10
partners, and, 12.22
post-bankruptcy debts, 12.23
preferences, 12.16
premiums, and
knowledge of trustee, 12.4
non-payment by trustees, 12.2
reassignment, 12.5
undisclosed policy, 12.3
provable debts, 12.11
searches, 12.24
secured debts, 12.8
set-off, 12.9
subsequent debts, 12.23
transactions at an undervalue, 12.15
transactions defrauding creditors, 12.17
Basel 'Three Pillars'
prudential regulation, and, 7.2
Beneficiaries
MWPA 1982 trusts, and
children, 12.50
class of, 12.46
divorce, 12.53
limited interests, 12.49
named, 12.47
named wife, 12.48
unmarried person, 12.52
unnamed, 12.47
"Blue pencil" test
unfair contract terms, and, 1.53
Bonds
meaning, 1.69–1.70
Bonus calculation
with-profits funds, and, 6.26
Borrowing
school fees, and, 17.40
Breach
discharge of contract, and, 9.4
Business assets
estate planning, and, 15.6
Business assurance
agreement
automatic accrual, 17.22
buy and sell agreement, 17.23
double option agreement, 17.24
introduction, 17.21
automatic accrual
agreement, and, 17.22
own life policies, 17.6
buy and sell agreement, 17.23
double option agreement
generally, 17.24
text, Appendix 10
first death policies, 17.5
individual trust policies for other partners or directors
additional trustees, 17.13
commerciality of premiums, 17.11–17.12
commerciality of trust arrangement, 17.10
declaring, 17.14–17.16
generally, 17.7–17.9
types of assurance, 17.17
introduction, 17.1
joint lives policies, 17.5
life of another policies
company effected, 17.19–17.20
generally, 17.4
methods of effecting policies, 17.2
own life policies
automatic accrual, 17.6
cross-assigned, 17.3
pension term assurance written in trust, 17.18
premiums paid by organisation, 17.25
trust policies for other partners or directors, 17.7–17.17
Business property relief
inheritance tax, and, 14.37–14.38
Business risk
with-profits funds, and, 6.28
'Buy and sell' agreements
business assurance, and, 17.23
inheritance tax, and, 14.107

C

Cancellation of policy
background, 5.85
effect, 5.88
exercise of right, 5.87
formation of contracts, and, 1.29
general right, 5.85
introduction, 1.29
notice of right, 5.86
premiums, and, 1.73
record-keeping, 5.90
shortfall, 5.89
trusts, and, 11.78
Capacity to borrow
(see and see Mortgage of life policy)
companies, 10.58
minors, 10.57
trustees, 10.59
Capacity to contract
aliens, 1.18
children, 1.13–1.16
corporations, 1.20
enemy aliens, 1.18
introduction, 1.12
married women, 1.17
mentally disordered persons, 1.19
minors, 1.13–1.16
partners, 1.22
unincorporated associations, 1.21
Capacity to release security
(see and see Mortgage of life policy)
generally, 10.60
Capital
(see and see Prudential regulation)
innovative tier 1 capital, 7.21
other capital, 7.23
requirements, 7.17–7.18
tier 1 capital, 7.20
tier 2 capital, 7.22
tiers, 7.19–7.23
Capital add-on
Solvency II, and, 7.59
Capital instruments and assets
Solvency II, and, 7.73
Capital gains tax
annuities, 13.74
calculation, 13.73
introduction, 13.72
pensions, 13.74
Capital redemption policies
chargeable events, 13.50
proposal form, 1.30
Care of children
(see also see also Trusts)
advancement, 11.28
maintenance, education and benefit, 11.26
s 31 Trustee Act 1925, and, 11.27
'Carve out' schemes
estate planning, and, 15.10
Caveat emptor
utmost good faith, and, 2.26
Cessate grant
grants of representation, and, 9.45
Charges
with-profits funds, and
general principles, 6.29
Treating Customers Fairly, 6.20–6.21
Charging provision
introduction, 14.50
liability, 14.54
primary beneficiaries, 14.52
quick succession relief, 14.55
rate of tax, 14.54
remaindermen, 14.53
settlor, 14.51
Charitable gifts
inheritance tax, and, 14.31
Child trust funds
school fees, and, 17.33
Children
(see also see also Children's policies)
adoption, 9.68
capacity to borrow, and, 10.57
capacity to contract, and, 1.13–1.16
illegitimacy, 9.67
MWPA 1982 trusts, and
interests, 12.50
maintenance, education and advancement, 12.51
personal representatives' position, 9.69
school fees, and
borrowing, 17.40
child trust funds, 17.33
deferred annuities, 17.38–17.40
endowment assurance, 17.32
individual savings accounts, 17.34
introduction, 17.31
investment trust savings schemes, 17.37
junior ISAs, 17.35
single premium bonds, 17.36
unit trust savings schemes, 17.37
trustees' position, 9.69
Children's policies
contractual capacity, 17.42
friendly societies, and, 17.46–17.46
industrial provident societies, and, 17.45
insurable interest, 17.42
parental settlements, 17.44
taxation, 17.43
Churning
generally, 5.82
Civil partners
insurable interest, and, 2.10
Claims and title to life policies
appropriation, 9.74
assent, 9.73
children
adoption, 9.68
illegitimacy, 9.67
personal representatives' position, 9.69
trustees' position, 9.69
discharge
agreement, by, 9.2
breach, by, 9.4
introduction, 9.1
novation, by, 9.3
payment, and, 9.6–9.16
performance, by, 9.5
surrender, on, 9.2
devolution of property on death
administrators, 9.39
children,. 9.67–9.69
distribution, 9.57–9.66
executors, 9.39
family provision, 9.70–9.71
grants of representation, 9.42–9.56
introduction, 9.38
vesting in trustees, 9.41
wills, 9.40
distribution
England and Wales, in, 9.58–9.61
introduction, 9.57
Northern Ireland, in, 9.66
Scotland, in, 9.62–9.65
donatio motis causa, 9.76
family provision, 9.70–9.71
grants in England
cessate grant, 9.45
death of executors, 9.50
executor de son tort, 9.48
introduction, 9.42
letters of administration, 9.44
payment without a grant, 9.49
probate, 9.43
receipt by single personal representative, 9.47
solemn form probate, 9.46
grants outside the UK
domicile, 9.55
resealing, 9.56
s 19 Revenue Act 1889, and, 9.53–9.54
grants in Scotland
confirmation dative, 9.51
confirmation nominate, 9.51
introduction, 9.51
resealing, 9.52
income support, 9.72
legacy of policy subject to loan, 9.75
limitation periods, 9.17
loss of policy documents, 9.31–9.32
mentally disordered persons, 9.77–9.81
mortgage of life policy, and
equitable interests, 10.75
general, 10.73
simple receipt, 10.74
payment
generally, 9.6–9.9
ICOBS, and, 9.11–9.12
mistake, under, 9.13–9.16
Treating Customers Fairly, 9.10
payments into court, 9.18–9.19
proof
age and name, 1.28
death, 9.20–9.26
loss of policy documents, and, 9.31–9.32
survival, 9.27
title, 9.28–9.30
repudiation of claims 9.37
state benefits, 9.72
suicide
generally, 9.33–9.34
repudiation of claims, 9.37
trustees, and, 11.75
unlawful killing
generally, 9.35–9.36
repudiation of claims, 9.37
Claims management
prudential regulation, and, 7.14
Claw-back of income tax
collection procedure, 13.44
introduction, 13.41
surrender after four years, 13.43
surrender within four years, 13.42
Client classification
eligible counterparty, 4.36
introduction, 4.34
professional customer, 4.36
reclassification, 4.37
retail client, and 4.35
'Clog on the equity'
mortgage of life policy, and, 10.45
Closure
with-profits funds, and, 6.46–6.48
COBS requirements
client classification
eligible counterparty, 4.36
introduction, 4.34
professional customer, 4.36
reclassification, 4.37
retail client, and 4.35
depolarisation
background, 4.2
independent financial advice, 4.46
overview, 4.44
scope and range of products, 4.45
telephone sales, 4.47
eligible counterparty, 4.36
firm information, 4.54
GPP disclosure, 4.43
know your customer, 4.48
overview, 4.33
professional customer, 4.36
reclassification, 4.37
retail client, and 4.35
stakeholder products, 4.53
status disclosure
cost, 4.39
custody of client money, 4.43A
distance marketing requirements, 4.40–4.41
e-commerce directive requirements, 4.40–4.41
generally, 4.39
GPP disclosure, 4.43
IMD requirements, 4.42
successive operation, 4.41
summary of requirements, 4.39
voice telephony, 4.41
suitability of advice
content of reports, 4.51
overview, 4.49
records, 4.52
requirement for report, 4.50
stakeholder products, 4.53
suitability report, 4.50–4.51
terms of business, 4.38
Co-directors
insurable interest, and, 2.16
Cohabitees
insurable interest, and, 2.19
Commission
calculation, 5.78–5.79
COBS, and
amount, 4.61
terms, 4.60
generally, 5.77
ICOBS, and, 4.64
Retail Distribution Review, 5.80
Commorientes
inheritance tax, and, 14.18
'Communicate'
financial promotion, and, 5.10
Commutation
reassurance, and, 8.14
Companies Acts
financial promotion, and, 5.33
Company director
insurable interest, and, 2.14
Company voluntary arrangements
generally, 12.33
Compensation
with-profits funds, and
general principles, 6.29
Treating Customers Fairly, 6.20–6.21
Compensation scheme (FSMA)
circumstances in which person in default, 3.50
eligible claims, 3.49
introduction, 3.15
structure, 3.47–3.48
Compulsory reassurance
(see and see Reassurance)
generally, 8.3
Conduct of Business Sourcebook (COBS)
generally, 3.20
insurance, 3.21
Reinsurance Directive, and, 8.23a
Connected contracts
intermediation and distribution, and, 4.13
Connected third party loans and guarantees
with-profits funds, and, 6.19
Consideration
formation of contracts, and, 1.10–1.11
Consideration of marriage
inheritance tax, and, 14.29
Constructive notice
assignment, and
generally, 10.28
production of deed, 10.30
production of policy, 10.29
Constructive trusts
(see also see also Trusts)
generally, 11.14
Consultation
FSMA, and, 3.4
Consumer Credit Acts
financial promotion, and, 5.32
Consumer pressure
financial promotion, and, 5.38
Contemplation of marriage
trusts, and 11.18
Contract law
contracts of life assurance, and, 1.56
Contract of insurance
meaning, 1.1
Contracts of life assurance
(see and see under individual headings)
cancellation, 1.29
contract law, and, 1.56
cooling-off, 1.29
custody of documents, 1.98
deeds
alterations, 1.85
attestation, 1.83
date, 1.80
delivery, 1.84
execution, 1.80–1.85
introduction, 1.78
discharge
agreement, by, 9.2
breach, by, 9.4
introduction, 9.1
novation, by, 9.3
payment, and, 9.6–9.16
performance, by, 9.5
e-commerce
acceptance clicking, 1.39
digital signatures, 1.33–1.38
Distance Selling of Financial Services Directive, 1.40
formation, 1.31
introduction, 1.30
place of formation, 1.32
enduring powers of attorney
benefits and gifts, 1.89
generally, 1.86–1.87
formation
acceptance, 1.5–1.9
capacity to contract, 1.12–1.22
consideration, 1.10–1.11
intention, 1.4
introduction, 1.3
legality of object, 1.23
offer, 1.5–1.9
proposal, and, 1.24–1.28
group policies, 1.60
master policies, 1.60
nature, 1.1–1.2
ordinary powers of attorney
benefits and gifts, 1.88
generally, 1.86–1.87
policy
extrinsic evidence, and, 1.62–1.64
form, 1.58
master policies, 1.60
residence and occupation, 1.65
schedule, 1.58
segments, 1.59
stamps, 1.66
terminology, 1.67–1.70
terms and conditions, 1.61
writing, in, 1.57
powers of attorney
benefits and gifts, 1.88–1.89
types, 1.86–1.87
premium
days of grace, 1.74
early cancellation, 1.73
first premium, 1.72
gender based factors, 1.71
renewal premium, 1.74–1.77
proof of age and name, 1.28
proposal form
generally, 1.24
joint life policies, 1.25–1.27
proof of age and name, 1.28
unfair contract terms
"blue pencil" test, 1.53
clear disclosure, 1.48
EC Directive, 1.41
examples of understandings, 1.52
exclusions, 1.42
fair treatment of customers, 1.54
potentially unfair terms, 1.46–1.47
relevance to life contracts, 1.49–1.50
representative actions, 1.51
statutory provisions, and, 1.55
unfair terms, 1.43–1.45
Contributions
(see and see Registered pension schemes)
generally, 16.6
payment by individual, 14.78
Cooling-off
formation of contracts, and, 1.29
Corporate insolvency
administration, 12.32
administrative receivership, 12.31
avoidance of transactions, 12.37
company voluntary arrangements, 12.33
company voluntary arrangements, 12.33
introduction, 12.30
floating charges, 12.37
liquidation
avoidance of prior transactions, 12.37
directors' powers, 12.36
generally, 12.34
liquidator's powers, 12.36
provisional liquidator, 12.35
preferences, 12.37
schemes of arrangement, 12.33
transactions at an undervalue, 12.37
voluntary arrangements, 12.33
Corporation tax
key man policies, and
policy proceeds, 17.28
premium payments, 17.27
Corporations
capacity to contract, and, 1.20
County court administration orders
individual insolvency, and, 12.27
Custody of documents
contracts of life assurance, and, 1.98
Customer classification
eligible counterparty, 4.36
introduction, 4.34
professional customer, 4.36
reclassification, 4.37
retail client, and 4.35

D

Damages actions
FSMA, and, 3.25
Data protection
data to which principles apply, 5.103
'data controller', 5.101
'data processor', 5.101
'data subject', 5.101
definitions, 5.101
introduction, 5.101
life offices' dealings with data processors
introduction, 5.104
notification, 5.107
security, 5.105
subject access requests, 5.106
life offices' dealings with policyholders
consent, 5.108
data protection notice, 5.110
fair processing, 5.109
manual data, 5.103
'personal data', 5.101
principles, 5.102
relevant filing system, 5.103
'sensitive personal data', 5.101
Days of grace
premiums, and, 1.74
Dealings with life policies
beneficial interest in trust policies, 11.74
life policies in trust
authority in trust instrument, under, 11.55
borrowing, 11.62
compounding liabilities, 11.67
court power, under, 11.70
direction of beneficiaries, at, 11.68
exercise of contractual rights, 11.66
exercise of options, 11.65
extent of trust property, 11.72
introduction, 11.54
liens on premiums. 11.63
maintenance of policy, 11.68
mortgage, 11.56
protection for purchasers and mortgagees, 11.61
raising loan on security of policy, 11.64
raising money by sale, etc., 11.58
raising tax, 11.60
revocation by settlor, 11.71
sale, 11.56
sale by implication in order to invest, 11.59
summary, 11.73
surrender, 11.57
Death
bankrupts, and, 12.21
dependant whilst in receipt of pension, of
occupational pension schemes, 14.101
personal pension schemes, 14.97
stakeholder pension schemes, 14.97
devolution of property, and
administrators, 9.39
distribution, 9.57–9.66
executors, 9.39
grants of representation, 9.42–9.56
introduction, 9.38
vesting in trustees, 9.41
wills, 9.40
distribution of restate, and
England and Wales, in, 9.58–9.61
introduction, 9.57
Northern Ireland, in, 9.66
Scotland, in, 9.62–9.65
executors, and, 9.50
inheritance tax, and
chargeable transfers, 14.9
commorientes, 14.18
estate, 14.10
family provision, 14.16
gifts with reservation of benefit, 14.11
pre-owned assets tax, 14.13
quick succession relief, 14.20
redirection of severable share of joint property, 14.15
surviving spouse election, 14.17
survivorship clause, 14.19
variation of dispositions, 14.14
member of pension scheme, of
annuity guaranteed period, in, 14.91, 14.95, 14.104
before drawing benefits, 14.90, 14.93–14.94, 14.98, 14.103
introduction, 14.77
lump sums payable, 14.79–14.81, 14.90
pension guaranteed period, in, 14.99
taking income on drawdown pension basis, whilst, 14.96, 14.100
whilst in receipt of alternatively secured pension, 14.86–14.87
whilst in receipt of drawdown pension, 14.83
whilst in receipt of pension, 14.97
whilst in receipt of secured pension, 14.82
whilst in receipt of unsecured pension, 14.84–14.85
proof, and, 9.20–9.26
Death benefits
(see and see Registered pension schemes)
dependant's death before 6 April 2011 where benefits not finalised until after that date, 16.20
dependant's death whilst drawing pension, 16.19
introduction, 16.16
member's death before drawing benefits, 16.17
member's death whilst drawing pension, 16.18
Debt relief orders
individual insolvency, and, 12.29
Debtor and creditor
insurable interest, and, 2.12
Deeds
(see and see Contracts of life assurance)
alterations, 1.85
attestation, 1.83
date, 1.80
delivery, 1.84
execution
alterations, 1.85
attestation, 1.83
attorneys, 1.82
companies, 1.81
delivery, 1.84
generally, 1.80
introduction, 1.78
Deeds of arrangement
individual insolvency, and, 12.28
Deeds of variation
inheritance tax, and, 14.14
Deferred annuities
capital gains tax, and, 13.72
income tax, and, 17.39
inheritance tax, and, 17.40
school fees, and, 17.38–17.40
Deferred assurances
insurable interest, and, 2.23
Defined benefit schemes
(see and see Registered pension schemes)
generally, 14.98–14.101
Delivery
deeds, and, 1.84
Delivery of documents of title
mortgage of life policy, and, 10.72
Demands and needs
ICOBS, and, 4.66
Dependant's pension
(see and see Registered pension schemes)
occupational pension schemes, 14.101
personal pension schemes, 14.97
stakeholder pension schemes, 14.97
Depolarisation
background, 4.2
independent financial advice, 4.46
overview, 4.44
scope and range of products, 4.45
telephone sales, 4.47
Detriment
unfair contract terms, and, 1.44
Devolution of property on death
administrators, 9.39
children
adoption, 9.68
illegitimacy, 9.67
personal representatives' position, 9.69
trustees' position, 9.69
distribution
England and Wales, in, 9.58–9.61
introduction, 9.57
Northern Ireland, in, 9.66
Scotland, in, 9.62–9.65
executors, 9.39
family provision, 9.70–9.71
grants in England
cessate grant, 9.45
death of executors, 9.50
executor de son tort, 9.48
introduction, 9.42
letters of administration, 9.44
payment without a grant, 9.49
probate, 9.43
receipt by single personal representative, 9.47
solemn form probate, 9.46
grants outside the UK
domicile, 9.55
resealing, 9.56
s 19 Revenue Act 1889, and, 9.53–9.54
grants in Scotland
confirmation dative, 9.51
confirmation nominate, 9.51
introduction, 9.51
resealing, 9.52
introduction, 9.38
vesting in trustees, 9.41
wills, 9.40
Digital signatures
EU Directive, 1.37
functions, 1.34
introduction, 1.33
UK Regulations, 1.38
underlying technology, 1.35
verification of identity, 1.36
Director of company
insurable interest, and, 2.14
Direct offer financial promotions
financial promotion, and, 5.27–5.28
Discharge of contract
agreement, by, 9.2
breach, by, 9.4
introduction, 9.1
novation, by, 9.3
payment, and
generally, 9.6–9.9
ICOBS, and, 9.11–9.12
mistake, under, 9.13–9.16
Treating Customers Fairly, 9.10
performance, by, 9.5
surrender, on, 9.2
Discharge of mortgage of life policy
delivery of documents of title, 10.72
reassignment, 10.70
repayment, 10.70
statutory receipt, 10.71
Disclosure
good faith, and, 2.27–2.32
inducements, and, 4.55
unfair contract terms, and, 1.48
Discounted gift plans
'carve out' schemes, 15.10
HMRC attitude, 15.11
introduction, 15.10
joint settlors, 15.15
settlors aged 90 and over, 15.14
summary, 15.16
underwriting approach, 15.12
valuation issues, 15.13
Discretionary will trusts
estate planning, and, 15.3–15.4
Dispute resolution
FSMA, and, 3.16
Distance contracts
Distance Selling of Financial Services Directive, 1.40
retail customers, 5.99–5.100
Distance Marketing Directive
financial promotion, and, 5.43
Distribution of estate
children
adoption, 9.68
illegitimacy, 9.67
personal representatives' position, 9.69
trustees' position, 9.69
England and Wales, in
generally, 9.58–9.60
statutory trusts, 9.61
introduction, 9.57
Northern Ireland, in, 9.66
Scotland, in
legal rights, 9.62–9.63
prior rights, 9.62–9.63
statutory prior tights, 9.64–9.65
Distributions
with-profits funds, and, 6.14
Divorce
MWPA 1982 trusts, and, 12.536
trusts, and, 11.18
Divorcees
insurable interest, and, 2.20
Domicile
inheritance tax, and
generally, 14.109
policies under seal, 14.110
Donatio motis causa
generally, 9.76
Double option agreement
(see and see Business assurance)
generally, 17.24
text, Appendix 10
Drawdown pensions
(see and see Registered pension schemes)
'left scheme' policies, 14.105
occupational pensions, 14.100
retirement annuities, 14.92
stakeholder pension schemes, 14.96

E

E-commerce
acceptance clicking, 1.39
digital signatures
EU Directive, 1.37
functions, 1.34
introduction, 1.33
UK Regulations, 1.38
underlying technology, 1.35
verification of identity, 1.36
Distance Selling of Financial Services Directive, 1.40
formation, 1.31
introduction, 1.30
place of formation, 1.32
EFRB schemes
inheritance tax, and, 14.106
Employees
insurable interest, and
employers, 2.13
pension scheme trustees, 2.15
Employer and employee
insurable interest, and, 2.13
Employer-financed retirement benefit schemes
(see and see Registered pension schemes)
generally, 14.106
Endorsement
variation of contract, and, 9.2
Endowment assurance
mortgage of life policy, and, 10.55
school fees, and, 17.32
Enduring powers of attorney
benefits and gifts, 1.89
generally, 1.86–1.87
Enemy aliens
capacity to contract, and, 1.18
Enforcement powers
FSMA, and, 3.44–3.45
Engaged couples
insurable interest, and, 2.19
Equitable assignment
(see and see Assignment of policy)
form, 10.9
general, 10.4–10.5
Scotland, in, 10.6
Equitable distribution
with-profits funds, and, 6.32
Equitable interests
assignment, and
generally, 10.19
priority, 10.35–10.36
Equitable Life decision
with-profits funds, and, 6.4–6.5
Equitable mortgages
(see and see Mortgage of life policy)
distinction from legal mortgage, 10.48
generally, 10.47
mortgagor's remedies, 10.63
Equity of redemption
mortgage of life policy, and, 10.44–10.45
Estate planning
back to back arrangements, 15.19
business assets, 15.6
'carve out' schemes, 15.10
death, on, 15.3–15.4
discounted gift plans
'carve out' schemes, 15.10
HMRC attitude, 15.11
introduction, 15.10
joint settlors, 15.15
settlors aged 90 and over, 15.14
summary, 15.16
underwriting approach, 15.12
valuation issues, 15.13
discretionary will trusts, 15.3–15.4
family home, 15.5
generally, 15.2
gift and loan schemes, 15.8–15.9
inheritance trusts, 15.8–15.9
introduction, 15.1
life policies
importance of use, 15.1
trustee investments, as, 15.21–15.23
trusts, 15.25–15.43
lifetime transfers
back to back arrangements, 15.19
'carve out' schemes, 15.10
discounted gift plans, 15.10–15.16
gift and loan schemes, 15.8–15.9
inheritance trusts, 15.8–15.9
introduction, 15.7
loan schemes, 15.8–15.9
PETA plans, 15.20
retained interest trusts, 15.17
reverter to settlor trusts, 15.18
loan schemes, 15.8–15.9
PETA plans, 15.20
retained interest trusts, 15.17
reverter to settlor trusts, 15.18
trustee investments, 15.21–15.23
trusts of life policies
declaration, 15.25
interests of children, 15.30
interests of civil partner, 15.31
interests of spouse, 15.31
joint lives first death policy, 15.41
named person absolutely, for, 15.33
named person if living at death of grantee before maturity failing which grantee, 15.38
named person should he survive grantee failing which grantee, 15.37
named persons in equal shares absolutely, 15.34
per stirpes clause, 15.32
post-21 March 2006 position, 15.42
power of appointment interest in possession trust, 15.27–15.29
Scotland, in, 15.43
specimen forms, 15.26–15.31
such of grantee's children as survive him, 15.35
such of named persons as grantee appoint failing which one absolutely, 15.39–15.40
survivor of husband and wife failing which children, 15.41
trust for A failing which B, 15.36
wordings, 15.32–15.43
EU Single Passport Directive
intermediation, and, 4.1
Ex turpi causa
unlawful killing, and, 9.35
Examination of title
assignment of policy, and, 10.16
trusts, and
(see also see also Trusts)
introduction, 11.75
notice of breach of trust, 11.76
payment method, 11.77
Excess surplus
with-profits funds, and, 6.15
Execution of deeds
alterations, 1.85
attestation, 1.83
attorneys, 1.82
companies, 1.81
delivery, 1.84
generally, 1.80
Executor de son tort
grants of representation, and, 9.48
Executors
de son tort, 9.48
death, 9.50
distribution of estate
England and Wales, in, 9.58–9.61
introduction, 9.57
Northern Ireland, in, 9.66
Scotland, in, 9.62–9.65
generally, 9.39
Exemption of appointed representatives
FSMA, and, 3.9
Express trusts
(see also see also Trusts)
generally, 11.12
Extrinsic evidence
general rules of construction, 1.62
parol evidence, 1.63
rectification, 1.64

F

Facultative (fac/ob) reassurance
(see and see Reassurance)
generally, 8.3
Family home
estate planning, and, 15.5
Family income policies
generally, 17.60
Family provision
generally, 9.70–9.71
inheritance tax, and, 14.16
Fee disclosure
ICOBS, and, 4.65
Financial conglomerates
prudential regulation, and
capital requirements, 7.52
introduction, 7.49
meaning, 7.50
third country groups, 7.51
Financial promotion
additional guidance (COBS 3 Annex 4)
'guaranted or protected products', 5.25
'High income' products, 5.21
'hybrid bonds', 5.23
introduction, 5.20
'stock market products', 5.24
with-profits bonds, 5.22
Advertising Standards Authority (ASA), and, 5.30–5.31
'communicate', 5.10
communicating with retail clients, 5.16–5.18
Companies Acts, and, 5.33
consistency between policy document and marketing literature, 5.39
Consumer Credit Acts, and, 5.32
consumer pressure, and, 5.38
direct offer financial promotions, 5.27–5.28
Distance Marketing Directive, and, 5.43
exemptions, 5.11
'fair, clear and not misleading communications', 5.14
'Financial Promotion and other Communications (Oct 2006), 5.61
'Financial Promotions: Progress Update and Future Direction (Aug 2006), 5.60
'Financial Promotions: Taking Stock and Moving Forward' (Feb 2005)
effect of non-compliance, 5.55
general concerns, 5.57
introduction, 5.54
MiFID, 5.59
systems and controls, 5.56
thematic work, 5.58
firms subject to rules, 5.4
Forgery and Counterfeiting Act 1981, and, 5.34
FPO 2005, and, 5.42
FSA, and
COBS 4 post-implementation work, 5.62–5.64
reports, 5.65
FSMA, and
generally, 3.32
introduction, 3.8
Gambling Act 2005, and, 5.37
identifiable as such, to be, 5.15
'in the course of business', 5.9
intellectual property rights, and, 5.35
introduction, 5.1–5.3
'invitation or inducement', 5.8
libel, and, 5.36
Markets in Financial Instruments Directive (MiFID), and
'Financial Promotions: Taking Stock and Moving Forward', and, 5.59
generally, 5.45
meaning
'communicate', 5.10
'in the course of business', 5.9
introduction, 5.7
'invitation or inducement', 5.8
medium, 5.12
obligations of firms, 5.13
'off the page' advertisements, 5.27–5.28
overseas insurers' advertisements, 5.26
'past, simulated and future performance information', 5.19
real time communications
introduction, 5.40
miscellaneous obligations, 5.41
s 21 restrictions, 5.6
systems and controls, 5.44
Treating Customers Fairly (TCF)
consequences of breach, 5.49
criticisms of regime, 5.53
enforcement, 5.52
FSA cluster reports and case studies, 5.50
implementation, 5.51
introduction, 5.46
meaning, 5.48
origins, 5.47
risk mitigation, 5.52
strategy, 5.51
unlawful communications, and, 5.5
'Financial Promotion and other Communications (Oct 2006)
generally, 5.61
Financial Promotion Order 2005
generally, 5.42
'Financial Promotions: Progress Update and Future Direction (Aug 2006)
generally, 5.60
'Financial Promotions: Taking Stock and Moving Forward' (Feb 2005)
effect of non-compliance, 5.55
general concerns, 5.57
introduction, 5.54
MiFID, 5.59
systems and controls, 5.56
thematic work, 5.58
Financial reassurance
(see and see Reassurance)
generally, 8.6
Financial sanctions
enemy aliens, and, 1.18
Financial Services and Markets Act 2000 (FSMA)
appeals, 3.13
approved persons, 3.11
authorisation and exemption
financial promotion, 3.32
general prohibition, 3.31
introduction, 3.9
procedure, 3.33
background, 3.2
compensation scheme, 3.15
Conduct of Business Sourcebook
generally, 3.20
insurance, 3.21
consultation, 3.4
damages actions, 3.25
dispute resolution, 3.16
enforcement powers, 3.44–3.45
exemption of appointed representatives, 3.9
financial promotion, and
COBS 4 post-implementation work, 5.62–5.64
generally, 3.32
introduction, 3.8
reports, 5.65
Financial Services and Markets Compensation Scheme
circumstances in which person in default, 3.50
eligible claims, 3.49
introduction, 3.15
structure, 3.47–3.48
Financial Services and Markets Tribunal, 3.13
Financial Services Ombudsman, 3.16
FSA Handbook
Conduct of Business Sourcebook, 3.20–3.21
content, 3.18
interpretation, 3.18
other relevant parts, 3.22
outsourcing, 3.23
principles, 3.19
FSA Outsourcing Rules, 3.23
FSA Principles for Business, 3.19
general prohibition
generally, 3.31
introduction, 3.6
guidance, 3.14
Insurance: Conduct of Business Sourcebook, 3.21
introduction, 3.1
life assurance business
ambit of investment business, 3.30
treatment of life policies, 3.27–3.29
linked contracts, 3.26
misleading statements and practices 3.24
other obligations, 3.4
own initiative powers, 3.43
'passporting'
background, 3.34
branch for insurance activities, 3.39
EC Directives, 3.35–3.36
establishment-services distinction, 3.38
EU providers, 3.41
insurance services, 3.40
introduction, 3.9
use, 3.37–3.41
permissions
introduction, 3.10
variation, 3.44
permitted links, 3.26
portfolio transfers
insurance business, 3.51
introduction, 3.12
issues, 3.53
process, 3.54
Scheme Report, 3.52
professional firms, 3.17
regulated activities, 3.7
rules, 3.14
sanctions, 3.46
statutory objectives, 3.3
supervision, 3.42
transfers
insurance business, 3.51
introduction, 3.12
issues, 3.53
process, 3.54
Scheme Report, 3.52
variation of permissions, 3.44
Financial Services and Markets Compensation Scheme
circumstances in which person in default, 3.50
eligible claims, 3.49
introduction, 3.15
structure, 3.47–3.48
Financial Services and Markets Tribunal
generally, 3.13
Financial Services Authority (FSA)
background, 3.2
consultation, 3.5
other obligations, 3.4
statutory objectives, 3.3
Financial Services Ombudsman
generally, 3.16
Firm, information about
generally, 4.54
product disclosure, and, 5.81
First death policies
business assurance, and, 17.5
Floating charges
corporate insolvency, and, 12.37
'Follow the settlements' clause
reassurance, and, 8.13
Foreign judgments
reassurance, and, 8.15
Forfeiture
bankruptcy, and, 12.19
unlawful killing, and, 9.35–9.36
Forgery and Counterfeiting Act 1981
financial promotion, and, 5.34
Formation of contracts
(see and see Contracts of life assurance)
acceptance, 1.5–1.9
cancellation, 1.29
capacity to contract
aliens, 1.18
children, 1.13–1.16
corporations, 1.20
enemy aliens, 1.18
introduction, 1.12
married women, 1.17
mentally disordered persons, 1.19
minors, 1.13–1.16
partners, 1.22
unincorporated associations, 1.21
consideration, 1.10–1.11
cooling-off, 1.29
intention, 1.4
introduction, 1.3
legality of object, 1.23
offer, 1.5–1.9
proposal, and
form, 1.24
joint life policies, 1.25–1.27
proof of age and name, 1.28
FPO 2005
financial promotion, and, 5.42
Fraud on the power
trusts, and, 11.24
Free-standing additional voluntary contributions
(see and see Registered pension schemes)
generally, 14.102
Friendly societies
children's policies, and, 17.46–17.46
Fronting
reassurance, and, 8.5
FSA Handbook
Conduct of Business Sourcebook, 3.20–3.21
content, 3.18
interpretation, 3.18
other relevant parts, 3.22
outsourcing, 3.23
principles, 3.19
FSA Outsourcing Rules
generally, 3.23
FSA Principles for Business
generally, 3.19

G

Gains on policies chargeable to tax
assessment to tax
certificates of chargeable events, 13.57–13.58
charging method, 13.54–13.55
non-resident policies, 13.59
offshore capital redemption policies, 13.59
personal portfolio bonds, 13.60
top-slicing, 13.56
assignment of jointly owned policies, 13.53
capital redemption policies, 13.50
certificates of chargeable events, 13.57–13.58
chargeable events
assignment of jointly owned policies, 13.53
certificates, 13.57–13.58
capital redemption policies, 13.50
life annuity contracts, 13.49
life policies, 13.46–13.48
loan of policies, 13.51
partial surrenders, 13.52
sinking fund policies, 13.50
companies effecting policies
before 14 March 1989, 13.62
FA 2008 changes, 13.64
introduction, 13.61
on or after 14 March 1989, 13.63
group life policies, 13.65
introduction, 13.45
life annuity contracts, 13.49
life policies, 13.46–13.48
loan of policies, 13.51
method of charging tax, 13.54–13.55
non-resident policies, 13.59
offshore capital redemption policies, 13.59
partial surrenders, 13.52
personal portfolio bonds, 13.60
sinking fund policies, 13.50
top-slicing, 13.56
Gambling Act 2005
financial promotion, and, 5.37
Gender
premiums, and, 1.71
General prohibition
generally, 3.31
introduction, 3.6
Gift and loan schemes
estate planning, and, 15.8–15.9
Gifts
assignment of policy, and, 10.13
inheritance tax, and
consideration of marriage, 14.29
maintenance of family, 14.30
political parties, 14.31
reservation of benefit, 14.11
Good faith
'caveat emptor', and, 2.26
criminal sanctions, 2.42
disclosure duty, 2.27–2.32
generally, 2.26
indisputable policies, 2.35
inducement by non-disclosure, 2.33–2.34
misrepresentation
action on discovery, 2.41
effect, 2.40
generally, 2.39
non-disclosure
action on discovery, 2.41
effect, 2.40
indisputable policies, 2.35
inducement, 2.33–2.34
introduction, 2.26
reform proposals
insurable interest, 2.47
Law Commission, 2.45–2.46
misrepresentation, 2.48–2.49
non-disclosure, 2.48–2.49
other issues, 2.50–2.53
Statement of Long-Term Insurance Practice, 2.44
unfair contract terms
generally, 2.43
introduction, 1.44
warranty
generally, 2.36–2.37
waiver of breach, 2.38
Governance
Solvency II, and, 7.64–7.68
with-profits funds, and
actuaries, 6.49
annual report, 6.50
FSA proposals, 6.51–6.52
with-profits committees, 6.50
GPP disclosure
generally, 4.43
Grants (of representation)
England, in
cessate grant, 9.45
death of executors, 9.50
executor de son tort, 9.48
introduction, 9.42
letters of administration, 9.44
payment without a grant, 9.49
probate, 9.43
receipt by single personal representative, 9.47
solemn form probate, 9.46
outside the UK
domicile, 9.55
resealing, 9.56
s 19 Revenue Act 1889, and, 9.53–9.54
Scotland, in
confirmation dative, 9.51
confirmation nominate, 9.51
introduction, 9.51
resealing, 9.52
Grossing up
inheritance tax, and, 14.42
Group policies
contracts of life assurance, and, 1.60
gains on policies chargeable to tax, and, 13.65
Group risk
adjusted solo calculation, 7.48
application of PRU 8.3, 7.44
capital adequacy calculation
adjusted solo calculation, 7.48
Group Capital Resources, 7.46–7.47
Group Capital Resources Requirement, 7.45
concentration, 7.53
financial conglomerates
capital requirements, 7.52
introduction, 7.49
meaning, 7.50
third country groups, 7.51
Group Capital Resources
generally, 7.46
introduction, 7.43
limits, 7.47
Group Capital Resources Requirement
generally, 7.45
introduction, 7.43
insurance groups, 7.43
intra-group transactions, 7.53
introduction, 7.41
systems and controls, 7.42
third country groups, 7.51
Guidance
FSMA, and, 3.14

H

Home income plans
generally, 17.61
Hotchpot clause
trusts, and, 11.25
Husband and wife
insurable interest, and, 2.10

I

ICOBS
advising and selling
commission, 4.64
demands and needs, 4.66
fees disclosure, 4.65
PPI cases, 4.68
status disclosure, 4.65
suitability, 4.67
commission, 4.64
demands and needs, 4.66
fees disclosure, 4.65
generally, 3.21
overview, 4.62
PPI cases, 4.68
status disclosure, 4.65
suitability, 4.67
unfair inducements, 4.63
Illegitimacy
distribution of estate, and, 9.67
Immediate needs annuities
long-term care, and, 17.59
Implied trusts
(see also see also Trusts)
generally, 11.13
Intention to create, 11.6–11.8
'In the course of business'
financial promotion, and, 5.9
Income tax
annuities
capital element, with, 13.71
deduction of tax, 13.66
foreign residents, 13.70
payment without deduction, 13.67–13.70
purchased life annuities, 13.71
UK residents, 13.68–13.69
claw-back of relief
collection procedure, 13.44
introduction, 13.41
surrender after four years, 13.43
surrender within four years, 13.42
deferred annuities, and, 17.39
gains on policies chargeable to tax
assessment to tax, 13.54–13.60
assignment of jointly owned policies, 13.53
capital redemption policies, 13.50
certificates of chargeable events, 13.57–13.58
chargeable events, 13.46–13.53
companies effecting policies, 13.61–13.64
group life policies, 13.65
introduction, 13.45
life annuity contracts, 13.49
life policies, 13.46–13.48
loan of policies, 13.51
method of charging tax, 13.54–13.55
non-resident policies, 13.59
offshore capital redemption policies, 13.59
partial surrenders, 13.52
personal portfolio bonds, 13.60
sinking fund policies, 13.50
top-slicing, 13.56
life assurance premium relief
future of, 13.13
husband and wife, 13.9
industrial assurance policies, 13.11
introduction, 13.7
limits, 13.8
residence, 13.10
temporary assurances, 13.12
qualifying policies
additional requirements for post-31 March 1976 policies, 13.30–13.40
certification, 13.29
dating back, 13.21
eligibility conditions, 13.15–13.20
introduction, 13.14
variations and substitutions, 13.22–13.28
qualifying policies (post-31 March 1976 policies)
certification, 13.35
combination of policies, 13.38
endowment policies, 13.32
free gifts, 13.40
industrial assurance policies, 13.36
introduction, 13.30
maturity value as first premium, 13.34
options, 13.33
reinstatement, 13.37
restructuring, 13.39
surrender value as first premium, 13.34
term assurance policies, 13.31
whole life policies, 13.31
relief on premiums
claw-back of relief, 13.41–13.44
conditions, 13.3
extent, 13.4
introduction, 13.2
limits, 13.5
qualifying policies, 13.14–13.40
title, 13.6
Income support
generally, 9.72
Incorporation by reference
reassurance, and, 8.29
Indemnity
insurable interest, and, 2.3
Indirect benefits
inducements, and, 4.58
Individual Capital Assessment
prudential regulation, and, 7.2
Individual Capital Guidance
prudential regulation, and, 7.2
Individual savings accounts (ISAs)
school fees, and, 17.34
Individual voluntary arrangements (IVAs)
interim orders, 12.26
introduction, 12.25
Inducements
COBS, 4.56–4.57
disclosure, 4.55
generally, 4.55
indirect benefits, 4.58
ICOBS, and, 4.63
IT support, 4.59
overview, 4.54
Industrial provident societies
children's policies, and, 17.45
Information about firm
generally, 4.54
product disclosure, and, 5.81
Inheritance tax
agricultural property relief, 14.34–14.36
annuities
joint lives, 14.75
single life, 14.74
associated operations, 14.7
business property relief, 14.37–14.38
'buy and sell' agreements, 14.107
calculation
grossing up, 14.42
introduction, 14.40–14.41
liability, 14.43
limitation of liability, 14.44
chargeable transfers
death, on, 14.9
lifetime, during, 14.4
charitable gifts, 14.31
commorientes, 14.18
death transfers
chargeable transfers, 14.9
commorientes, 14.18
estate, 14.10
family provision, 14.16
gifts with reservation of benefit, 14.11
pre-owned assets tax, 14.13
quick succession relief, 14.20
redirection of severable share of joint property, 14.15
surviving spouse election, 14.17
survivorship clause, 14.19
variation of dispositions, 14.14
deeds of variation, 14.14
deferred annuities, and, 17.40
domicile
generally, 14.109
policies under seal, 14.110
EFRB schemes, 14.106
estate
death, on, 14.10
lifetime, during, 14.8
estate planning, and
(see and see Estate planning)
discretionary will trusts, 15.3–15.4
family home, 15.5
generally, 15.2
lifetime transfers, 15.7–15.20
trustee investments, 15.21–15.23
trusts of life policies, 15.25–15.43
excluded property, 14.22
exempt transfers
annual exemption, 14.26
charitable gifts, 14.31
gifts for maintenance of family, 14.30
gifts in consideration of marriage, 14.29
gifts to political parties, 14.31
introduction, 14.23
miscellaneous, 14.31
normal expenditure out of income, 14.28
small gifts, 14.27
spouse exemption, 14.24
surviving spouse exemption, 14.25
exemptions
excluded property, 14.22
exempt transfers, 14.23–14.31
introduction, 14.21
potentially exempt transfers, 14.32
family provision, 14.16
features, 14.2
general principle, 14.2
gifts for maintenance of family, 14.30
gifts in consideration of marriage, 14.29
gifts to political parties, 14.31
gifts with reservation of benefit, 14.11
grossing up, 14.42
introduction, 14.1
key man policies, and, 17.29
liability
generally, 14.43
limitation, 14.44
life assurance
'back-to-back' arrangements, 14.72
death transfers, 14.70
introduction, 14.66
lifetime transfers, 14.67–14.69
Lloyd's underwriting interest, 14.73
premiums, 14.67
transfer of existing policy into trust, 14.68
transfer of interest, 14.69
valuations, 14.71
lifetime transfers
associated operations, 14.7
chargeable transfers, 14.4
disposition, 14.6
estate, 14.8
excluded transfers, 14.5
reduction of value of estate, 14.8
limitation of liability, 14.44
miscellaneous, 14.107–14.111
nature, 14.2–14.3
normal expenditure out of income, 14.28
payment, 14.111
potentially exempt transfers (PETs), 14.32
pre-owned assets tax, 14.13
quick succession relief, 14.20
rates, 14.40–14.41
redirection of severable share of joint property, 14.15
registered pension schemes, and
(see and see Registered pension schemes)
EFRBS, 14.106
FSAVCs, 14.102
introduction, 14.76
'left scheme' policies, 14.103–14.105
legislative impact, 14.77–14.89
occupational pension schemes, 14.98–14.101
personal pension schemes, 14.93–14.97
retirement annuities, 14.90–14.92
stakeholder pension schemes, 14.93–14.97
tax framework, 16.1–16.26
reliefs
agricultural property relief, 14.34–14.36
business property relief, 14.37–14.38
introduction, 14.33
voidable transfers, 14.39
woodlands relief, 14.39
residence
generally, 14.109
policies under seal, 14.110
settlements
(see and see Settlements)
accumulation and maintenance trusts, 14.63–14.65
definition, 14.46
interest in possession, with, 14.47–14.55
introduction, 14.45
no interest in possession, with, 14.56–14.62
small gifts, 14.27
spouse exemption, 14.24
surviving spouse election, 14.17
surviving spouse exemption, 14.25
survivorship clause, 14.19
transfers on death, 14.9–14.20
valuation, 14.108
voidable transfers, 14.39
woodlands relief, 14.39
Inheritance trusts
estate planning, and, 15.8–15.9
Inherited estate
generally, 6.30
reattribution
actuarial expert, 6.41
background, 6.37–6.39
further developments, 6.7
Policyholder Advocate, 6.40
process, 6.42–6.45
reattribution expert, 6.41
Insolvency
administration, 12.32
administrative receivership, 12.31
avoidance of transactions
introduction, 12.14
preferences, 12.16
transactions at an undervalue, 12.15
transactions defrauding creditors, 12.17
bankruptcy
appointment of trustee in bankruptcy, 12.12
avoidance of transactions, 12.14–12.17
bankrupt's estate, 12.13
death of bankrupt, 12.21
discharge, 12.20
excluded property, 12.18
forfeiture, 12.19
interim receiver, 12.10
introduction, 12.6
non-payment of premiums, 12.2
obtaining order, 12.7–12.11
Official Receiver, 12.10
partners, and, 12.22
post-bankruptcy debts, 12.23
preferences, 12.16
provable debts, 12.11
searches, 12.24
secured debts, 12.8
set-off, 12.9
subsequent debts, 12.23
transactions at an undervalue, 12.15
transactions defrauding creditors, 12.17
company voluntary arrangements, 12.33
corporate arrangements
administration, 12.32
administrative receivership, 12.31
company voluntary arrangements, 12.33
introduction, 12.30
liquidation, 12.34–12.37
schemes of arrangement, 12.33
county court administration orders, 12.27
debt relief orders, 12.29
deeds of arrangement, 12.28
floating charges, 12.37
individual voluntary arrangements
interim orders, 12.26
introduction, 12.25
introduction, 12.1
liquidation
avoidance of prior transactions, 12.37
directors' powers, 12.36
generally, 12.34
liquidator's powers, 12.36
provisional liquidator, 12.35
preferences
bankruptcy, 12.16
corporate insolvency, 12.37
premiums, and
knowledge of trustee, 12.4
non-payment by trustees, 12.2
reassignment, 12.5
undisclosed policy, 12.3
schemes of arrangement, 12.33
set-off, 12.9
transactions at an undervalue
bankruptcy, 12.15
corporate insolvency, 12.37
transactions defrauding creditors, 12.17
voluntary arrangements
companies, 12.33
individuals, 12.25–12.26
Insurable interest
admission of, 2.22
amount, 2.5
assignment of policy immediately after issue, 2.7
children's policies, and, 17.42
deferred assurances, 2.23
general, 2.1
indemnity, and, 2.3
lack of interest
consequences, 2.24
deferred assurances, 2.23
effect, 2.21
endorsement of admission, 2.22
modern practice, 2.25
nature, 2.4
particular cases
a man and his own life, 2.9
civil partners, 2.10
cohabitees, 2.19
debtor and creditor, 2.12
director or manager, 2.14
divorcees, 2.20
employer and employee, 2.13
engaged couples, 2.19
husband and wife, 2.10
key man, 2.14
mortgagees, 2.18
parent and child, 2.11
partners and co-directors, 2.16
pension scheme trustees and employee, 2.15
trustees, 2.17
persons interested, 2.6
reassurance, and, 8.10
spes successionis, 2.8
statutory basis, 2.2
Insurance: Conduct of Business Sourcebook (ICOBS)
advising and selling
commission disclosure, 4.64
demands and needs, 4.66
fees disclosure, 4.65
PPI cases, 4.68
status disclosure, 4.65
suitability, 4.67
commission, 4.64
Conduct of Business Rules, and, 5.98
demands and needs, 4.66
distant contracts for retail customers, 5.99–5.100
fees disclosure, 4.65
general approach, 5.97
generally, 3.21
intermediation and distribution, and
advising and selling, 4.64–4.68
overview, 4.62
unfair inducements, 4.63
introduction, 5.96
overview, 4.62
payment, and, 9.11–9.12
PPI cases, 4.68
product disclosure
Conduct of Business Rules, and, 5.98
distant contracts for retail customers, 5.99–5.100
general approach, 5.97
introduction, 5.96
status disclosure, 4.65
suitability, 4.67
unfair inducements, 4.63
Insurance Mediation Directive (IMD)
adoption, 4.12
exclusions, 4.13
generally, 4.12
implementation, 4.13
overview, 4.1
review, 4.14
Intention
formation of contracts, and, 1.4
Interest in possession
settlements, and
charging provisions, 14.50–14.53
introduction, 14.47–14.48
liability, 14.54
quick succession relief, 14.55
rate of tax, 14.54
Scotland, in, 14.49
Interim receiver
bankruptcy, and, 12.10
Intermediation and distribution
agents
acting for whom, 4.74
authority, 4.72
duties, 4.71
general principles, 4.70–4.77
introduction, 4.69
knowledge, 4.75–4.76
Law Commission proposals, 4.78
nature, 4.70
overview, 4.2
payment, 4.73
Appointed Representatives
Approved Person status, 4.30
continuing requirements, 4.32
exempt status, 4.26–4.27
Introducer ARs, 4.31
introduction, 4.25
prescribed activities, 4.28–4.29
terminology, 4.27
authorisation
advice, 4.20
agreeing to carry on, 4.22
Appointed Representatives, 4.25
arranging, 4.18
assisting in administration or performance, 4.21
implementation of IMD, 4.17–4.25
introducing, 4.19
other exclusions, 4.23
overview, 4.16
territorial scope, 4.24
client classification
eligible counterparty, 4.36
introduction, 4.34
professional customer, 4.36
reclassification, 4.37
retail client, and 4.35
COBS requirements
client classification, 4.34–4.37
depolarisation, 4.44–4.47
firm information, 4.54
GPP disclosure, 4.43
know your customer, 4.48
overview, 4.33
stakeholder products, 4.53
status disclosure, 4.39–42.43a
suitability of advice, 4.49–4.52
terms of business, 4.38
commission
amount, 4.61
terms, 4.60
connected contracts, 4.13
depolarisation
background, 4.2
independent financial advice, 4.46
overview, 4.44
scope and range of products, 4.45
telephone sales, 4.47
EU Single Passport Directive, 4.1
firm information, 4.54
GPP disclosure, 4.43
ICOBS requirements
advising and selling, 4.64–4.68
commission, 4.64
demands and needs, 4.66
fees disclosure, 4.65
overview, 4.62
PPI cases, 4.68
status disclosure, 4.65
suitability, 4.67
unfair inducements, 4.63
indirect benefits, 4.58
inducements
COBS guidance, 4.56–4.57
disclosure, 4.55
generally, 4.55
indirect benefits, 4.58
IT support, 4.59
overview, 4.54
Insurance Mediation Directive (IMD)
adoption, 4.12
exclusions, 4.13
generally, 4.12
implementation, 4.13
overview, 4.1
review, 4.14
IT support, 4.59
know your customer, 4.48
overview, 4.1
polarisation, and, 4.2
PRIPS, 4.15
remuneration
amount of commission, 4.61
commission terms, 4.60
inducements, 4.55–4.59
overview, 4.54
Retail Distribution Review
advice, 4.8
advisers, 4.10
background, 4.3
charging, 4.5
FSA consultations, 4.4
independence, 4.6
issues, 4.3
overview, 4.1
platforms, 4.11
product bias, 4.3
quality of advisers, 4.3
restricted advice, 4.7
summary, 4.5
switching, 4.3
transparency of remuneration, 4.3
stakeholder products, 4.53
status disclosure
cost, 4.39
custody of client money, 4.43A
distance marketing requirements, 4.40–4.41
e-commerce directive requirements, 4.40–4.41
generally, 4.39
GPP disclosure, 4.43
IMD requirements, 4.42
successive operation, 4.41
summary of requirements, 4.39
voice telephony, 4.41
suitability of advice
content of reports, 4.51
overview, 4.49
records, 4.52
requirement for a report, 4.50
stakeholder products, 4.53
suitability reports, 4.50–4.51
suitability reports
content, 4.51
general requirement, 4.50
terms of business, 4.38
Intellectual property rights
financial promotion, and, 5.35
Internal contagion risk
adequate premiums, 7.38
appropriate assets, 7.38
established surplus, 7.37
fairness, 7.38
general restriction, 7.35
introduction, 7.34
reinsurance, 7.40
separation of life funds, 7.36
surplus, 7.37
unit-linked contracts, 7.39
use of life funds, 7.36
Intestate distribution/succession
England and Wales, in
generally, 9.58–9.60
statutory trusts, 9.61
introduction, 9.57
Northern Ireland, in, 9.66
Scotland, in
legal rights, 9.62–9.63
prior rights, 9.62–9.63
statutory prior tights, 9.64–9.65
Investment
life policies, as, 3.27–3.29
registered pension schemes, and
general, 16.23
investment regulated pension schemes, 16.25–16.26
tax exemptions, 16.24
with-profits funds, and
general principles, 6.27
strategy, 6.16
Investment advertising
(see and see Financial promotion)
generally, 5.1
Investment business
ambit, 3.30
categories, 3.28–3.29
generally, 3.27
Investment trust savings schemes
school fees, and, 17.37
'Invitation or inducement'
financial promotion, and, 5.8
IT support
inducements, and, 4.59

J

JMLSG Guidance Notes
money laundering, and, 5.95
Joint life policies
business assurance, and, 17.5
proposal form, and, 1.25–1.27
Joint tenancy
assignment of policy, and, 10.8
Junior ISAs
school fees, and, 17.35
Jurisdiction
reassurance, and, 8.15

K

Key features
Consolidated Life Directive, 5.76
content, 5.68
further information, 5.73
general requirement, 5.67
illustration, 5.70–5.71
overview, 5.66
packaged products, 5.69–5.74
post sale confirmation, and, 5.75
PPFM, 5.74
reduction in yield, 5.72
Key man policies
corporation tax
policy proceeds, 17.28
premium payments, 17.27
inheritance tax, 17.29
insurable interest, and, 2.14
introduction, 17.26
taxation
corporation tax, 17.27–17.28
inheritance tax, 17.29
type, 17.30
Know your customer
COBS, and, 4.48
product disclosure, and, 5.83

L

Lamfalussy process
Solvency II, and, 7.56
'Left scheme' policies
(see and see Registered pension schemes)
death before drawing benefits, 14.103
death in annuity guaranteed period, 14.104
'drawdown pension', 14.105
Legacy of policy subject to loan
generally, 9.77
Legal assignment
(see and see Assignment of policy)
form, 10.7–10.8
generally, 10.2–10.3
joint tenancy, 10.8
Legal mortgages
(see and see Mortgage of life policy)
distinction from equitable mortgage, 10.48
generally, 10.46
mortgagor's remedies, 10.62
Legal risk
claims management, 7.14
definition, 7.9
delegation to third parties, 7.15
documenting reinsurance, 7.13
litigation management, 7.14
other legal matters, 7.11
policy, 7.9–7.10
review of policy documentation, 7.12
systems and controls, 7.9
Legality of object
formation of contracts, and, 1.23
Letters of administration
grants of representation, and, 9.44
Libel
financial promotion, and, 5.36
Liens
mortgage of life policy, and, 10.49–10.50
Life annuity contracts
gains on policies chargeable to tax, and, 13.49
Life Assurance Act 1774
text, Appendix 1
Life assurance business
ambit of investment business, 3.30
treatment of life policies, 3.27–3.29
Life assurance contracts
(see and see under individual headings)
cancellation, 1.29
contract law, and, 1.56
cooling-off, 1.29
custody of documents, 1.98
deeds
alterations, 1.85
attestation, 1.83
date, 1.80
delivery, 1.84
execution, 1.80–1.85
introduction, 1.78
discharge
agreement, by, 9.2
breach, by, 9.4
introduction, 9.1
novation, by, 9.3
payment, and, 9.6–9.16
performance, by, 9.5
e-commerce
acceptance clicking, 1.39
digital signatures, 1.33–1.38
Distance Selling of Financial Services Directive, 1.40
formation, 1.31
introduction, 1.30
place of formation, 1.32
enduring powers of attorney
benefits and gifts, 1.89
generally, 1.86–1.87
formation
acceptance, 1.5–1.9
capacity to contract, 1.12–1.22
consideration, 1.10–1.11
intention, 1.4
introduction, 1.3
legality of object, 1.23
offer, 1.5–1.9
proposal, and, 1.24–1.28
group policies, 1.60
master policies, 1.60
nature, 1.1–1.2
ordinary powers of attorney
benefits and gifts, 1.88
generally, 1.86–1.87
policy
extrinsic evidence, and, 1.62–1.64
form, 1.58
master policies, 1.60
residence and occupation, 1.65
schedule, 1.58
segments, 1.59
stamps, 1.66
terminology, 1.67–1.70
terms and conditions, 1.61
writing, in, 1.57
powers of attorney
benefits and gifts, 1.88–1.89
types, 1.86–1.87
premium
days of grace, 1.74
early cancellation, 1.73
first premium, 1.72
gender based factors, 1.71
renewal premium, 1.74–1.77
proof of age and name, 1.28
proposal form
generally, 1.24
joint life policies, 1.25–1.27
proof of age and name, 1.28
unfair contract terms
"blue pencil" test, 1.53
clear disclosure, 1.48
EC Directive, 1.41
examples of understandings, 1.52
exclusions, 1.42
fair treatment of customers, 1.54
potentially unfair terms, 1.46–1.47
relevance to life contracts, 1.49–1.50
representative actions, 1.51
statutory provisions, and, 1.55
unfair terms, 1.43–1.45
Life assurance premium relief (LAPR)
future of, 13.13
husband and wife, 13.9
industrial assurance policies, 13.11
introduction, 13.7
limits, 13.8
residence, 13.10
temporary assurances, 13.12
Life interests
trusts, and, 11.20
Life of another policies
business assurance, and
company effected, 17.19–17.20
generally, 17.4
Life office loan
mortgage of life policy, and, 10.54
Life reassurance
aggregation, 8.12
alternative risk transfer
generally, 8.27
introduction, 8.6
arbitration, 8.16
'back-to-back' cover, 8.29
commutation, 8.14
compulsory reassurance, 8.3
event, 8.12
facultative (fac/ob) reassurance, 8.3
financial reassurance
generally, 8.27
introduction, 8.6
'follow the settlements' clause, 8.13
foreign judgments, 8.15
fronting, 8.5
General Terms and Conditions, 8.28
governing law, 8.15
incorporation by reference, 8.29
insurable interest, 8.10
issues, 8.8–8.15
jurisdiction, 8.15
legal definition, 8.2
longevity risk, 8.26
meaning, 8.1
nature of contracts, 8.2
obligatory reassurance, 8.3
occurrence, 8.12
optional reassurance, 8.3
permissions, 8.12
prudential regulation
financial reassurance, 8.6
generally, 8.22
recent developments, 8.7
regulatory permissions, 8.12
Reinsurance Directive (RID)
COBS, and, 8.23a
implementation in UK, 8.20
introduction, 8.17
prudential requirements, 8.22
restriction of business, 8.21
Solvency II, 8.23
special purpose vehicles, 8.18–8.19
Schedule, 8.28
Special Conditions, 8.28
structure, 8.28–8.29
termination, 8.14
Treaty reinsurance
further issues, 8.4
generally, 8.3
types, 8.3
unit-linked funds, 8.24–8.25
uses, 8.24–8.27
utmost good faith, 8.9
Lifetime allowance
registered pension schemes, and, 16.8–16.11
Lifetime transfers
(see and see Inheritance tax)
associated operations, 14.7
chargeable transfers, 14.4
disposition, 14.6
estate, 14.8
estate planning, and
back to back arrangements, 15.19
'carve out' schemes, 15.10
discounted gift plans, 15.10–15.16
gift and loan schemes, 15.8–15.9
inheritance trusts, 15.8–15.9
introduction, 15.7
gift and loan schemes, 15.8–15.9
PETA plans, 15.20
retained interest trusts, 15.17
reverter to settlor trusts, 15.18
excluded transfers, 14.5
reduction of value of estate, 14.8
Limitation periods
claims, and, 9.17
Limited interests
MWPA 1982 trusts, and, 12.49
Linked contracts
FSMA, and, 3.26
Liquidation
avoidance of prior transactions, 12.37
directors' powers, 12.36
generally, 12.34
liquidator's powers, 12.36
provisional liquidator, 12.35
Liquidity premium
Solvency II, and, 7.63
Litigation management
prudential regulation, and, 7.14
Lloyd's underwriting interest
inheritance tax, and, 14.73
Loan of policies
gains on policies chargeable to tax, and, 13.51
Loan schemes
estate planning, and, 15.8–15.9
Loans and guarantees
legacy of policy, and, 9.77
with-profits funds, and, 6.19
Longevity risk
reassurance, and, 8.26
Long-term care
assessment of applicant's resources
capital, 17.53–17.54
deprivation of assets, and, 17.56
family home, 17.55
income, 17.52
introduction, 17.51
deliberate deprivation of assets, 17.56
home, at, 17.50
immediate needs annuities, 17.59
insurance products
immediate needs annuities, 17.59
introduction 17.57
pre-funded plans, 17.58
introduction, 17.47
local authority-funded care, 17.49
NHS-funded care, 17.48
pension credit, 17.50a
pre-funded plans, 17.58
state, and, 17.48
Loss of policy documents
approach of life company, 9.31–9.32
deed of indemnity, Appendix 6
statutory declaration, Appendix 5
Lump sum on death
registered pension schemes, and, 14.79–14.81

M

Maintenance, education and benefit
care of children trusts, and, 11.26
Maintenance of family
inheritance tax, and, 14.30
Manager of company
insurable interest, and, 2.14
Markets in Financial Instruments Directive (MiFID)
(see and see Financial promotion)
'Financial Promotions: Taking Stock and Moving Forward', and, 5.59
generally, 5.45
Married women
capacity to contract, and, 1.17
Master policies
contracts of life assurance, and, 1.60
Material transactions
with-profits funds, and, 6.18
Matrimonial home
overriding interests, and, 10.67
Maturity values
with-profits funds, and, 6.11–6.13
Mentally disordered persons
capacity to contract, and, 1.19
generally, 9.77–9.81
Minimum capital requirements (MCR)
Solvency II, and), 7.58
Minors
(see also see also Children)
capacity to contract, and, 1.13–1.16
Misleading statements and practices
FSMA, and, 3.24
Misrepresentations
(see also see also Utmost good faith)
action on discovery, 2.41
effect, 2.40
generally, 2.39
Mistake
payment of life policy, and, 9.13–9.16
Money laundering
introduction, 5.91
JMLSG Guidance Notes, 5.95
Money Laundering Sourcebook, 5.94
obligations, 5.93
relevant legislation, 5.92
SYSC Handbook, 5.94
Money purchase schemes
(see and see Registered pension schemes)
generally, 14.98–14.101
Mortgagees
insurable interest, and, 2.18
Mortgage of life policy
absolute in form, 10.56
background, 10.43
capacity to borrow
companies, 10.58
minors, 10.57
trustees, 10.59
capacity to release security, 10.60
claims, and
equitable interests, 10.75
general, 10.73
simple receipt, 10.74
'clog on the equity', and, 10.45
creation
introduction, 10.51
specific provisions, 10.53
usual provisions, 10.52
delivery of documents of title, 10.72
discharge
delivery of documents of title, 10.72
reassignment, 10.70
repayment, 10.70
statutory receipt, 10.71
endowment mortgages, and, 10.55
equitable mortgages
distinction from legal mortgage, 10.48
generally, 10.47
mortgagor's remedies, 10.63
equity of redemption, 10.44–10.45
form
introduction, 10.51
specific provisions, 10.53
usual provisions, 10.52
general principles, 10.42
jointly mortgaged policies, 10.69
legal mortgages
distinction from equitable mortgage, 10.48
generally, 10.46
mortgagor's remedies, 10.62
liens, 10.49–10.50
life office loan, 10.54
mortgagee's remedies
conditions affecting, 10.67
general, 10.64
jointly mortgaged policies, 10.69
overriding interests in matrimonial home, 10.67
statutory power of sale, under, 10.65–10.66
undue influence, 10.68
mortgagor's remedies
equitable mortgage, 10.63
legal mortgage, 10.62
mortgagor's rights, 10.61
nature, 10.42–10.60
overriding interests in matrimonial home, 10.67
pension mortgages, and, 10.55
reassignment, 10.70
repayment, 10.70
repayment mortgages, and, 10.55
statutory power of sale, 10.65–10.66
statutory receipt, 10.71
undue influence, 10.68
Murder
generally, 9.35–9.36
repudiation of claims, 9.37
MWPA 1982 trusts
appointment of trustees, 12.42
beneficiaries
children, 12.50
class of, 12.46
divorce, 12.53
limited interests, 12.49
named, 12.47
named wife, 12.48
unmarried person, 12.52
unnamed, 12.47
children
interests, 12.50
maintenance, education and advancement, 12.51
class of beneficiaries, 12.46
conditions, 12.41
construction of policies by courts, 12.54
divorce, 12.53
limited interests, 12.49
named beneficiaries, 12.47
named wife, 12.48
objects, 12.45
protection against creditors, 12.40
requirements, 12.43–12.44
Scotland, in, 12.55
trustees of policies, 12.42
unmarried person, 12.52
unnamed beneficiaries, 12.47

N

Named beneficiaries
MWPA 1982 trusts, and, 12.47
Nominal consideration
assignment of policy, and, 10.12
Non-disclosure
(see also see also Utmost good faith)
action on discovery, 2.41
effect, 2.40
indisputable policies, 2.35
inducement, 2.33–2.34
introduction, 2.26
Non-resident policies
gains on policies chargeable to tax, and, 13.59
Normal expenditure out of income
inheritance tax, and, 14.28
Notice of assignment
agents, to, 10.22
constructive notice
generally, 10.28
production of deed, 10.30
production of policy, 10.29
effect on priorities
equitable encumbrances, 10.37–10.39
equitable interests, 10.35–10.36
introduction, 10.34
summary, 10.40
Law of Property Act 1925, under
content, 10.26
debts and choses in action, 10.25
generally, 10.27
purpose, 10.21
Policies of Assurance Act 1867, under
effect, 10.23
generally, 10.24
recording receipt, 10.32–10.33
specimen form, Appendix 9
withdrawal, 10.31
Novation
discharge of contract, and, 9.3

O

Obligatory reassurance
(see and see Reassurance)
generally, 8.3
Occupational pension schemes
(see and see Registered pension schemes)
death before drawing benefits, 14.98
death in pension guaranteed period, 14.99
death whilst taking income on drawdown pension basis, 14.100
dependant's death whilst in receipt of pension, 14.101
'Off the page' advertisements
financial promotion, and, 5.27–5.28
Offer
formation of contracts, and, 1.5–1.9
Official Receiver
bankruptcy, and, 12.10
Offshore capital redemption policies
gains on policies chargeable to tax, and, 13.59
Online trusts
generally, 11.17
Optional reassurance
(see and see Reassurance)
generally, 8.3
Ordinary powers of attorney
benefits and gifts, 1.88
generally, 1.86–1.87
Orphan assets
actuarial expert, 6.41
background, 6.37–6.39
further developments, 6.7
Policyholder Advocate, 6.40
process of reattribution, 6.42–6.45
reattribution expert, 6.41
Overall Financial Adequacy Rule
prudential regulation, and, 7.3
Overriding interests in matrimonial home
mortgage of life policy, and, 10.67
Overseas insurers' advertisements
financial promotion, and, 5.26
Own initiative powers
FSMA, and, 3.43
Own life policies
business assurance, and
automatic accrual, 17.6
cross-assigned, 17.3
Own Risk and Solvency Assessment (ORSA)
Solvency II, and, 7.59

P

Packaged Retail Investment Products (PRIPS)
generally, 4.15
introduction, 4.4
Parent and child
insurable interest, and, 2.11
Parental settlements
children's policies, and, 17.44
Parol evidence
policy document, and, 1.63
Partial surrenders
gains on policies chargeable to tax, and, 13.52
Partners
bankruptcy, and, 12.22
capacity to contract, and, 1.22
insurable interest, and, 2.16
'Passporting'
background, 3.34
branch for insurance activities, 3.39
EC Directives, 3.35–3.36
establishment-services distinction, 3.38
EU providers, 3.41
insurance services, 3.40
introduction, 3.9
use, 3.37–3.41
'Past, simulated and future performance information'
financial promotions, and, 5.19
Payment into court
generally, 9.18–9.19
procedure, Appendix 7
Payment of life policy
generally, 9.6–9.9
ICOBS, and, 9.11–9.12
mistake, under, 9.13–9.16
Treating Customers Fairly, 9.10
Payment without a grant
grants of representation, and, 9.49
Pension mortgages
mortgage of life policy, and, 10.55
Pension scheme trustees and employee
insurable interest, and, 2.15
Pension schemes
alternatively secured pension, 14.86–14.87
annual allowance, 16.7
contributions
generally, 16.6
payment by individual, 14.78
death benefits
dependant's death before 6 April 2011 where benefits not finalised until after that date, 16.20
dependant's death whilst drawing pension, 16.19
introduction, 16.16
member's death before drawing benefits, 16.17
member's death whilst drawing pension, 16.18
death of dependant whilst in receipt of pension
occupational pension schemes, 14.101
personal pension schemes, 14.97
stakeholder pension schemes, 14.97
death of individual
annuity guaranteed period, in, 14.91, 14.95, 14.104
before drawing benefits, 14.90, 14.93–14.94, 14.98, 14.103
introduction, 14.77
lump sums payable, 14.79–14.81
pension guaranteed period, in, 14.99
taking income on drawdown pension, whilst, 14.96, 14.100
whilst in receipt of alternatively secured pension, 14.86–14.87
whilst in receipt of drawdown pension, 14.83
whilst in receipt of secured pension, 14.82
whilst in receipt of unsecured pension, 14.84–14.85
defined benefit schemes, 14.98–14.101
'drawdown pension'
'left scheme' policies, 14.105
occupational pensions, 14.100
retirement annuities, 14.92
stakeholder pension schemes, 14.96
employer-financed retirement benefit schemes, 14.106
failure to exercise option, 14.88
free-standing additional voluntary contributions, 14.102
inheritance tax, and
(see and see Registered pension schemes)
EFRBS, 14.106
FSAVCs, 14.102
introduction, 14.76
'left scheme' policies, 14.103–14.105
legislative impact, 14.77–14.89
occupational pension schemes, 14.98–14.101
personal pension schemes, 14.93–14.97
retirement annuities, 14.90–14.92
stakeholder pension schemes, 14.93–14.97
tax framework, 16.1–16.26
introduction, 14.76
investments
general, 16.23
investment regulated pension schemes, 16.25–16.26
tax exemptions, 16.24
'left scheme' policies
death before drawing benefits, 14.103
death in annuity guaranteed period, 14.104
'drawdown pension', 14.105
legislative impact, 14.77–14.89
lifetime allowance, 16.8–16.11
lump sum on death, 14.79–14.81
money purchase schemes, 14.98–14.101
occupational pension schemes
death before drawing benefits, 14.98
death in pension guaranteed period, 14.99
death whilst taking income on drawdown pension basis, 14.100
dependant's death whilst in receipt of pension, 14.101
omission to exercise pension rights, 14.88
personal pension schemes
death before drawing benefits, 14.93–14.94
death in annuity guaranteed period, 14.95
death whilst taking income on alternatively secured pension, 14.96
dependant's death whilst in receipt of pension, 14.97
recycling tax-free lump sums, 16.22
retirement annuities
death before drawing benefits, 14.90
death in annuity guaranteed period, 14.91
'drawdown pension', 14.92
retirement benefits
introduction, 16.12
pension income, 16.15
'retirement', 16.13
tax-free lump sum, 16.14
stakeholder pension schemes
death before drawing benefits, 14.93–14.94
death in annuity guaranteed period, 14.95
death whilst taking income on drawdown pension, 14.96
dependant's death whilst in receipt of pension, 14.97
tax framework
annual allowance, 16.7
contributions, 16.6
death benefits, 16.16–16.20
introduction, 16.1
investments, 16.23–16.26
legislative framework, 16.2
lifetime allowance, 16.8–16.11
recycling tax-free lump sums, 16.22
retirement benefits, 16.12
structure, 16.3
summary, 16.4–16.5
unauthorised payments, 16.21
tax-free lump sum, 16.14
tax relief, 16.5–16.6
transfer of value in connection with pension rights, 14.89
unauthorised payments, 16.21
unsecured pension, 14.84–14.85
Pension term assurance written in trust
business assurance, and, 17.18
Pensions
capital gains tax, and, 13.74
Performance
discharge of contract, and, 9.5
Periodic payments for personal injuries
generally, 17.62–17.64
Permissions
FSMA, and
introduction, 3.10
variation, 3.44
Perpetuities
(see also see also Trusts)
80-year period, 11.97
common law rule, 11.95
introduction, 11.94
pension schemes, 11.99
reform proposals, 11.98
'wait and see' rule, 11.96
Personal pension schemes
(see and see Registered pension schemes)
death before drawing benefits, 14.93–14.94
death in annuity guaranteed period, 14.95
death whilst taking income on drawdown pension, 14.96
dependant's death whilst in receipt of pension, 14.97
Personal portfolio bonds
gains on policies chargeable to tax, and, 13.60
PETA plans
estate planning, and, 15.20
Polarisation
background, 4.2
independent financial advice, 4.46
overview, 4.44
scope and range of products, 4.45
telephone sales, 4.47
Policies of Assurance Act 1867
notices of assignment, and
effect, 10.23
effect on priorities of equitable interests, 10.35
generally, 10.24
text, Appendix 2
Policy
(see and see Contracts of life assurance)
extrinsic evidence, and
general rules of construction, 1.62
parol evidence, 1.63
rectification, 1.64
form, 1.58
master policies, 1.60
parol evidence, 1.63
rectification, 1.64
residence and occupation, 1.65
schedule, 1.58
segments, 1.59
stamps, 1.66
terminology
bonds, 1.69–1.70
glossary, 1.67
with-profits, 1.68
terms and conditions, 1.61
writing, in, 1.57
Policyholder Advocate
reattribution of inherited estates, and, 6.40
Political parties
inheritance tax, and, 14.31
Portfolio transfers
insurance business, 3.51
introduction, 3.12
issues, 3.53
process, 3.54
Scheme Report, 3.52
Potentially exempt transfers (PETs)
inheritance tax, and, 14.32
Powers of appointment
(see also see also Trusts)
fraud on the power, 11.24
generally, 11.23
specimen, Appendix 4
Powers of attorney
benefits and gifts, 1.88–1.89
types, 1.86–1.87
Precatory words
trusts, and, 11.6
Preferences
bankruptcy, and, 12.16
corporate insolvency, and, 12.37
Pre-funded plans
long-term care, and, 17.58
Premium relief by deduction
future of, 13.13
husband and wife, 13.9
industrial assurance policies, 13.11
introduction, 13.7
limits, 13.8
residence, 13.10
temporary assurances, 13.12
Premiums
business assurance, and, 17.25
corporation tax, and, 17.27
days of grace, 1.74
early cancellation, 1.73
first premium, 1.72
gender based factors, 1.71
inheritance tax, and, 14.67
insolvency, and
knowledge of trustee, 12.4
non-payment by trustees, 12.2
reassignment, 12.5
undisclosed policy, 12.3
income tax relief
claw-back of relief, 13.41–13.44
conditions, 13.3
extent, 13.4
introduction, 13.2
limits, 13.5
qualifying policies, 13.14–13.40
title, 13.6
key man policies, and, 17.27
relief by deduction
future of, 13.13
husband and wife, 13.9
industrial assurance policies, 13.11
introduction, 13.7
limits, 13.8
residence, 13.10
temporary assurances, 13.12
renewal premium
generally, 1.74–1.75
non-forfeiture provisions, 1.76
reinstatement, 1.77
tender without acceptance, 1.75
Pre-owned assets tax
inheritance tax, and, 14.13
Principles and Practices of Financial Management (PPFM)
(see and see With-profits funds)
annual report
generally, 6.50
introduction, 6.36
bonus calculation, 6.26
business risk, 6.28
changes to, 6.33
charges and expenses, 6.29
customer-friendly version, 6.35
EEA insurers, and, 6.34
equitable distribution, 6.32
generally, 6.3
inherited estate, 6.30
introduction, 6.25
investment strategy, 6.27
new business, 6.31
overview, 5.74
smoothing, 6.26
Priority
notices of assignment, and
equitable encumbrances, 10.37–10.39
equitable interests, 10.35–10.36
introduction, 10.34
summary, 10.40
PRIPS
generally, 4.15
introduction, 4.4
Probate
grants of representation, and, 9.43
Product disclosure
churning, 5.82
COBS, and, 5.84
commission
calculation, 5.78–5.79
generally, 5.77
Retail Distribution Review, 5.80
Consolidated Life Directive, 5.76
general, 5.66
ICOBS, and
Conduct of Business Rules, 5.98
distant contracts for retail customers, 5.99–5.100
general approach, 5.97
introduction, 5.96
information about firm, 5.81
key features
Consolidated Life Directive, 5.76
content, 5.68
further information, 5.73
general requirement, 5.67
illustration, 5.70–5.71
overview, 5.66
packaged products, 5.69–5.74
post sale confirmation, and, 5.75
PPFM, 5.74
reduction in yield, 5.72
know your customer, 5.83
post sale confirmation, and, 5.75
Principles and Practices of Financial Management (PPFM), 5.74
remuneration, 5.77
Retail Distribution Review, 5.80
switching, 5.82
Professional firms
FSMA, and, 3.17
Proof
age and name, 1.28
death, 9.20–9.26
loss of policy documents, and, 9.31–9.32
survival, 9.27
title, 9.28–9.30
Property adjustment orders
trusts, and, 11.18
Proposal form
(see also see also Formation of contracts)
form, 1.24
joint life policies, 1.25–1.27
proof of age and name, 1.28
Protected life interest
trusts, and, 11.21
Protective trusts
(see also see also Trusts)
conditions causing forfeiture, 12.39
generally, 12.38
introduction, 11.22
Prudent person principle
Solvency II, and, 7.58
Prudential regulation (PRU)
admissible assets, 7.26
application of rules, 7.1
Basel 'Three Pillars', and, 7.2
capital
requirements, 7.17–7.18
tiers, 7.19–7.23
claims management, 7.14
concentration risk, 7.27
counterparty risk, 7.27–7.28
cover, 7.31
credit risk, 7.3
derivatives, 7.29
development of rules, 7.1
efficient portfolio management, 7.30
financial conglomerates
capital requirements, 7.52
introduction, 7.49
meaning, 7.50
third country groups, 7.51
Group Capital Resources
generally, 7.46
introduction, 7.43
limits, 7.47
Group Capital Resources Requirement
generally, 7.45
introduction, 7.43
group risk
adjusted solo calculation, 7.48
application of PRU 8.3, 7.44
capital adequacy calculation, 7.45–7.48
concentration, 7.53
financial conglomerates, 7.49–7.50
insurance groups, 7.43
intra-group transactions, 7.53
introduction, 7.41
systems and controls, 7.42
third country groups, 7.51
Individual Capital Assessment
generally 7.6–7.7
overview, 7.2
Individual Capital Guidance, 7.2
insurance risk, 7.3
internal contagion risk
adequate premiums, 7.38
appropriate assets, 7.38
established surplus, 7.37
fairness, 7.38
general restriction, 7.35
introduction, 7.34
reinsurance, 7.40
separation of life funds, 7.36
surplus, 7.37
unit-linked contracts, 7.39
use of life funds, 7.36
introduction, 7.1
legal risk
claims management, 7.14
definition, 7.9
delegation to third parties, 7.15
documenting reinsurance, 7.13
litigation management, 7.14
other legal matters, 7.11
policy, 7.9–7.10
review of policy documentation, 7.12
systems and controls, 7.9
liquidity risk, 7.3
litigation management, 7.14
market risk, 7.3
objective, 7.1
operational risk, 7.3
over the counter transactions, 7.32
Overall Financial Adequacy Rule, 7.3
overview, 7.2
quasi-derivatives, 7.29
reassurance, and
financial reassurance, 8.6
generally, 8.22
records, 7.16
reduction of investment risk, 7.30
risk management
adequate records, 7.16
capital requirements, 7.3–7.5
Individual Capital Assessment, 7.6–7.7
legal risk, 7.9–7.15
Overall Financial Adequacy Rule, and, 7.3
reporting to the FSA, 7.6–7.7
systems and controls, 7.8
Solvency II
audit, 7.75
background, 7.55
capital add-on, 7.59
capital instruments and assets, 7.73
disclosure, 7.60
generally, 7.2
governance, 7.64–7.68
groups, 7.69–7.72
internal model, 7.58
introduction, 7.1
Lamfalussy process, 7.56
liquidity premium, 7.63
minimum capital requirements (MCR), 7.58
non-profit life business, 7.76
overview, 7.54
Own Risk and Solvency Assessment (ORSA), 7.59
Pillar 1, 7.58
Pillar 2, 7.59
Pillar 3, 7.60
prudent person principle, 7.58
public disclosure, 7.60
reinsurance, 7.74
Solvency Capital Requirement (SCR), 7.58
special purpose vehicles, 7.74
standard formula, 7.58
structure, 7.57–7.1
supervision of risk, 7.59
technical provisions, 7.63
timeline, 7.61
unit-linked business, 7.76
stock lending, 7.33
tiers of capital
generally, 7.19
innovative tier 1 capital, 7.21
other capital, 7.23
tier 1 capital, 7.20
tier 2 capital, 7.22
valuation of assets, 7.24–7.25
Purchased life annuities
(see and see Annuities)
taxation, 13.71

Q

Qualifying policies
additional requirements for post-31 March 1976 policies
certification, 13.35
combination of policies, 13.38
endowment policies, 13.32
free gifts, 13.40
industrial assurance policies, 13.36
introduction, 13.30
maturity value as first premium, 13.34
options, 13.33
reinstatement, 13.37
restructuring, 13.39
surrender value as first premium, 13.34
term assurance policies, 13.31
whole life policies, 13.31
certification, 13.29
dating back, 13.21
eligibility conditions
children's policies, 13.20
contingent policies, 13.20
endowment policies, 13.19
family income policies, 13.20
increasing premium policies, 13.20
industrial assurance policies, 13.20
introduction, 13.15
last survivor policies, 13.20
mortgage protection policies, 13.20
pure endowments, 13.20
term assurance–term exceeding ten years, 13.17
term assurance–term ten years or less, 13.18
whole life policies, 13.16
introduction, 13.14
variations and substitutions
introduction, 13.22
post-19 March 1968 policies, 13.23–13.24
post-17 November 1983 offshore policies, 13.26
pre-20 March 1968 policies, 13.27
pre-18 November 1983 offshore policies, 13.25
term assurance policies, 13.28
Quick succession relief
charging provisions, 14.55
generally, 14.20
interest in possession, 14.55

R

Real time communications
(see and see Financial promotion)
introduction, 5.40
miscellaneous obligations, 5.41
systems and controls, 5.44
Reassignment
mortgage of life policy, and, 10.70
Reassurance
aggregation, 8.12
alternative risk transfer
generally, 8.27
introduction, 8.6
arbitration, 8.16
'back-to-back' cover, 8.29
commutation, 8.14
compulsory reassurance, 8.3
event, 8.12
facultative (fac/ob) reassurance, 8.3
financial reassurance
generally, 8.27
introduction, 8.6
'follow the settlements' clause, 8.13
foreign judgments, 8.15
fronting, 8.5
General Terms and Conditions, 8.28
governing law, 8.15
incorporation by reference, 8.29
insurable interest, 8.10
issues, 8.8–8.15
jurisdiction, 8.15
legal definition, 8.2
longevity risk, 8.26
meaning, 8.1
nature of contracts, 8.2
obligatory reassurance, 8.3
occurrence, 8.12
optional reassurance, 8.3
permissions, 8.12
prudential regulation
financial reassurance, 8.6
generally, 8.22
recent developments, 8.7
regulatory permissions, 8.12
Reinsurance Directive (RID)
COBS, and, 8.23a
implementation in UK, 8.20
introduction, 8.17
prudential requirements, 8.22
restriction of business, 8.21
Solvency II, 8.23
special purpose vehicles, 8.18–8.19
Schedule, 8.28
Special Conditions, 8.28
structure, 8.28–8.29
termination, 8.14
Treaty reinsurance
further issues, 8.4
generally, 8.3
types, 8.3
unit-linked funds, 8.24–8.25
uses, 8.24–8.27
utmost good faith, 8.9
Reattribution of inherited estates
(see and see With-profits funds)
actuarial expert, 6.41
background, 6.37–6.39
further developments, 6.7
Policyholder Advocate, 6.40
process, 6.42–6.45
reattribution expert, 6.41
Receipt by single personal representative
grants of representation, and, 9.47
Record-keeping
cancellation, and, 5.90
risk management, and, 7.16
Rectification
policy document, and, 1.64
Recycling tax-free lump sums
registered pension schemes, and, 16.22
Redirection of severable share of joint property
inheritance tax, and, 14.15
Registered pension schemes
alternatively secured pension, 14.86–14.87
annual allowance, 16.7
contributions
generally, 16.6
payment by individual, 14.78
death benefits
dependant's death before 6 April 2011 where benefits not finalised until after that date, 16.20
dependant's death whilst drawing pension, 16.19
introduction, 16.16
member's death before drawing benefits, 16.17
member's death whilst drawing pension, 16.18
death of dependant whilst in receipt of pension
occupational pension schemes, 14.101
personal pension schemes, 14.97
stakeholder pension schemes, 14.97
death of individual
annuity guaranteed period, in, 14.91, 14.95, 14.104
before drawing benefits, 14.90, 14.93–14.94, 14.98, 14.103
introduction, 14.77
lump sums payable, 14.79–14.81
pension guaranteed period, in, 14.99
taking income on drawdown pension, whilst, 14.96, 14.100
whilst in receipt of alternatively secured pension, 14.86–14.87
whilst in receipt of drawdown pension, 14.83
whilst in receipt of secured pension, 14.82
whilst in receipt of unsecured pension, 14.84–14.85
defined benefit schemes, 14.98–14.101
'drawdown pension'
'left scheme' policies, 14.105
occupational pensions, 14.100
retirement annuities, 14.92
stakeholder pension schemes, 14.96
employer-financed retirement benefit schemes, 14.106
failure to exercise option, 14.88
free-standing additional voluntary contributions, 14.102
inheritance tax, and
(see and see Registered pension schemes)
EFRBS, 14.106
FSAVCs, 14.102
introduction, 14.76
'left scheme' policies, 14.103–14.105
legislative impact, 14.77–14.89
occupational pension schemes, 14.98–14.101
personal pension schemes, 14.93–14.97
retirement annuities, 14.90–14.92
stakeholder pension schemes, 14.93–14.97
tax framework, 16.1–16.26
introduction, 14.76
investments
general, 16.23
investment regulated pension schemes, 16.25–16.26
tax exemptions, 16.24
'left scheme' policies
death before drawing benefits, 14.103
death in annuity guaranteed period, 14.104
'drawdown pension', 14.105
legislative impact, 14.77–14.89
lifetime allowance, 16.8–16.11
lump sum on death, 14.79–14.81
money purchase schemes, 14.98–14.101
occupational pension schemes
death before drawing benefits, 14.98
death in pension guaranteed period, 14.99
death whilst taking income on drawdown pension basis, 14.100
dependant's death whilst in receipt of pension, 14.101
omission to exercise pension rights, 14.88
personal pension schemes
death before drawing benefits, 14.93–14.94
death in annuity guaranteed period, 14.95
death whilst taking income on drawdown pension, 14.96
dependant's death whilst in receipt of pension, 14.97
recycling tax-free lump sums, 16.22
retirement annuities
death before drawing benefits, 14.90
death in annuity guaranteed period, 14.91
'drawdown pension', 14.92
retirement benefits
introduction, 16.12
pension income, 16.15
'retirement', 16.13
tax-free lump sum, 16.14
secured pension, 14.82
stakeholder pension schemes
death before drawing benefits, 14.93–14.94
death in annuity guaranteed period, 14.95
death whilst taking income on drawdown pension, 14.96
dependant's death whilst in receipt of pension, 14.97
tax framework
annual allowance, 16.7
contributions, 16.6
death benefits, 16.16–16.20
introduction, 16.1
investments, 16.23–16.26
legislative framework, 16.2
lifetime allowance, 16.8–16.11
recycling tax-free lump sums, 16.22
retirement benefits, 16.12
structure, 16.3
summary, 16.4–16.5
unauthorised payments, 16.21
tax-free lump sum, 16.14
tax relief, 16.5–16.6
transfer of value in connection with pension rights, 14.89
unauthorised payments, 16.21
unsecured pension, 14.84–14.85
Regulated activities
FSMA, and, 3.7
Reinsurance
Solvency II, and, 7.74
Reinsurance Directive (RID)
(see and see Reassurance)
COBS, and, 8.23a
implementation in UK, 8.20
introduction, 8.17
prudential requirements, 8.22
restriction of business, 8.21
Solvency II, 8.23
special purpose vehicles, 8.18–8.19
Relief on premiums
claw-back of relief
collection procedure, 13.44
introduction, 13.41
surrender after four years, 13.43
surrender within four years, 13.42
conditions
generally, 13.3
limits, and, 13.5
extent, 13.4
introduction, 13.2
limits, 13.5
qualifying policies
additional requirements for post-31 March 1976 policies, 13.30–13.40
certification, 13.29
dating back, 13.21
eligibility conditions, 13.15–13.20
introduction, 13.14
variations and substitutions, 13.22–13.28
qualifying policies (post-31 March 1976 policies)
certification, 13.35
combination of policies, 13.38
endowment policies, 13.32
free gifts, 13.40
industrial assurance policies, 13.36
introduction, 13.30
maturity value as first premium, 13.34
options, 13.33
reinstatement, 13.37
restructuring, 13.39
surrender value as first premium, 13.34
term assurance policies, 13.31
whole life policies, 13.31
title, 13.6
Remuneration
COBS, and
amount of commission, 4.61
commission terms, 4.60
inducements, 4.55–4.59
overview, 4.54
ICOBS, and, 4.64
product disclosure, and, 5.77
Renewal premium
generally, 1.74–1.75
non-forfeiture provisions, 1.76
reinstatement, 1.77
tender without acceptance, 1.75
Repayment
mortgage of life policy, and, 10.70
Repayment mortgages
mortgage of life policy, and, 10.55
Representative actions
unfair contract terms, and, 1.51
Repudiation of claims
unlawful killing, and, 9.37
Reservation of benefit
inheritance tax, and, 14.11
Residence
(see and see Inheritance tax)
generally, 14.109
policies under seal, 14.110
policy document, and, 1.65
Retail Distribution Review
advice, 4.8
advisers, 4.10
background, 4.3
charging, 4.5
commission, and, 5.80
FSA consultations, 4.4
independence, 4.6
issues, 4.3
overview, 4.1
platforms, 4.11
product bias, 4.3
product disclosure, and, 5.80
quality of advisers, 4.3
restricted advice, 4.7
summary, 4.5
switching, 4.3
transparency of remuneration, 4.3
Retained interest trusts
estate planning, and, 15.17
Retirement annuities
(see and see Registered pension schemes)
death before drawing benefits, 14.90
death in annuity guaranteed period, 14.91
'drawdown pension', 14.92
Retirement benefits
introduction, 16.12
pension income, 16.15
'retirement', 16.13
tax-free lump sum, 16.14
Reverter to settlor trusts
estate planning, and, 15.18
Risk management
adequate records, 7.16
introduction, 7.3–7.5
legal issues, 7.9–7.15
systems and controls, 7.8
Rules
FSMA, and, 3.14

S

Sale
assignment of policy, and, 10.10
Sanctions
FSMA, and, 3.46
Schedule
policy document, and, 1.58
Schemes of arrangement
corporate insolvency, and, 12.33
School fees
borrowing, 17.40
deferred annuities
income tax, 17.39
inheritance tax, 17.40
introduction, 17.38
endowment assurance, 17.32
individual savings accounts, 17.34
introduction, 17.31
investment trust savings schemes, 17.37
junior ISAs, 17.35
single premium bonds, 17.36
unit trust savings schemes, 17.37
Scotland
distribution of estate, and, 9.62–9.65
equitable assignment, and, 10.6
grants of probate, and
confirmation dative, 9.51
confirmation nominate, 9.51
introduction, 9.51
resealing, 9.52
interest in possession settlements, with, 14.49
MWPA 1982 trusts, and, 12.55
trusts, and, 11.16
trusts of life policies, and, 15.43
Secured debts
bankruptcy, and, 12.8
Segments
policy document, and, 1.59
Set-off
bankruptcy, and, 12.9
Settlements
accumulation and maintenance trusts
introduction, 14.63
post-21 March 2006, 14.64
pre-22 March 2006, 14.65
charging provisions
introduction, 14.50
liability, 14.54
primary beneficiaries, 14.52
quick succession relief, 14.55
rate of tax, 14.54
remaindermen, 14.53
settlor, 14.51
definition, 14.46
interest in possession, with
charging provisions, 14.50–14.53
introduction, 14.47–14.48
liability, 14.54
quick succession relief, 14.55
rate of tax, 14.54
Scotland, in, 14.49
introduction, 14.45
no introduction interest in possession, with
creation, 14.57
exit charge, 14.59–14.62
introduction, 14.56
principal charge, 14.58
ten-yearly charge, 14.60
pre-27 March 1974, and, 14.61
Shortfall
cancellation, and, 5.89
Single event
reassurance, and, 8.12
Single-premium bonds
school fees, and, 17.36
Sinking fund policies
gains on policies chargeable to tax, and, 13.50
Small gifts
inheritance tax, and, 14.27
Smoothing
with-profits funds, and, 6.26
Social security benefits
generally, 9.72
Solemn form probate
grants of representation, and, 9.46
Solvency II
audit, 7.75
background, 7.55
capital add-on, 7.59
capital instruments and assets, 7.73
disclosure, 7.60
generally, 7.2
governance, 7.64–7.68
groups, 7.69–7.72
internal model, 7.58
introduction, 7.1
Lamfalussy process, 7.56
liquidity premium, 7.63
minimum capital requirements (MCR), 7.58
non-profit life business, 7.76
overview, 7.54
Own Risk and Solvency Assessment (ORSA), 7.59
Pillar 1, 7.58
Pillar 2, 7.59
Pillar 3, 7.60
prudent person principle, 7.58
public disclosure, 7.60
reinsurance, 7.74
Reinsurance Directive, and, 8.23
Solvency Capital Requirement (SCR), 7.58
special purpose vehicles, 7.74
standard formula, 7.58
structure, 7.57–7.1
supervision of risk, 7.59
technical provisions, 7.63
timeline, 7.61
unit-linked business, 7.76
Solvency Capital Requirement (SCR)
Solvency II, and, 7.58
Special Conditions
reassurance, and, 8.28
Special purpose vehicles
Reinsurance Directive, and, 8.18–8.19
Solvency II, and, 7.74
Spes successionis
insurable interest, and, 2.8
Spouse exemption
inheritance tax, and, 14.24
Stakeholder pension schemes
(see and see Registered pension schemes)
death before drawing benefits, 14.93–14.94
death in annuity guaranteed period, 14.95
death whilst taking income on drawdown pension, 14.96
dependant's death whilst in receipt of pension, 14.97
Stakeholder products
COBS, and, 4.53
Stamp duty
assignment of policy, and, 10.41, 11.104
background, 11.102
life policies, on, 11.103
policy document, and, 1.66
trusts of life policies, on, 11.105
State benefits
generally, 9.72
Statement of long-term insurance practice
text, Appendix 3
Status disclosure
COBS, and
cost, 4.39
custody of client money, 4.43A
distance marketing requirements, 4.40–4.41
e-commerce directive requirements, 4.40–4.41
generally, 4.39
GPP disclosure, 4.43
IMD requirements, 4.42
successive operation, 4.41
summary of requirements, 4.39
voice telephony, 4.41
ICOBS, and, 4.65
Statutory power of sale
mortgage of life policy, and, 10.65–10.66
Statutory receipt
mortgage of life policy, and, 10.71
Statutory trusts
(see also see also Trusts)
generally, 11.11
STEP standard provisions
(see also see also Trusts)
generally, 11.30
Strategic assets
with-profits funds, and, 6.18
Structured settlements
generally, 17.62–17.64
Suicide
generally, 9.33–9.34
repudiation of claims, 9.37
Suitability of advice
content of reports, 4.51
overview, 4.49
records, 4.52
requirement for report, 4.50
stakeholder products, 4.53
suitability report, 4.50–4.51
Supervision
FSMA, and, 3.42
Surrender
discharge of contract, and, 9.2
Surrender values
discharge of contract, and, 9.2
with-profits funds, and, 6.11–6.13
Survival
proof, and, 9.27
Surviving spouse election
inheritance tax, and, 14.17
Surviving spouse exemption
inheritance tax, and, 14.25
Survivorship clause
inheritance tax, and, 14.19
Switching
product disclosure, and, 5.82
SYSC Handbook
money laundering, and, 5.94

T

Target values
with-profits funds, and, 6.11–6.13
Tax-free lump sum
registered pension schemes, and, 16.14
Taxation
capital gains tax
(see and see Capital gains tax)
annuities, 13.74
calculation, 13.73
introduction, 13.72
pensions, 13.74
children's policies, and, 17.43
income tax
(see and see Income tax)
annuities, 13.66–13.71
claw-back of relief, 13.41–13.44
gains on policies, 13.45–13.66
premium relief by deduction, 13.7–13.12
qualifying policies, 13.14–13.40
relief on premiums, 13.2–13.6
inheritance tax
(see and see Inheritance tax)
annuities, 14.74–14.75
calculation, 14.40–14.44
EFRB schemes, 14.106
exemptions and reliefs, 14.21–14.39
introduction, 14.1
life assurance, 14.66–14.73
lifetime transfers, 14.4–14.8
miscellaneous, 14.107–14.111
nature, 14.2–14.3
rates, 14.40
registered pension schemes, 14.76–14.105
settlements, 14.45–14.65
transfers on death, 14.9–14.20
introduction, 13.1
key man policies, and
corporation tax, 17.27–17.28
inheritance tax, 17.29
type, 17.30
registered pension schemes, and
annual allowance, 16.7
contributions, 16.6
death benefits, 16.16–16.20
introduction, 16.1
investments, 16.23–16.26
legislative framework, 16.2
lifetime allowance, 16.8–16.11
recycling tax-free lump sums, 16.22
retirement benefits, 16.12
structure, 16.3
summary, 16.4–16.5
unauthorised payments, 16.21
Tender
discharge of contract, and, 9.5
Terms and conditions
policy document, and, 1.61
Terms of business
COBS, and, 4.38
'Three certainties'
(see also see also Trusts)
intention, 11.6–11.8
introduction, 11.6
objects, 11.10
subject-matter, 11.9
Tiers of capital
generally, 7.19
innovative tier 1 capital, 7.21
other capital, 7.23
tier 1 capital, 7.20
tier 2 capital, 7.22
Title
proof, and, 9.28–9.30
Top-slicing
gains on policies chargeable to tax, and, 13.56
Transactions at an undervalue
bankruptcy, and, 12.15
corporate insolvency, and, 12.37
MWPA 1982 trusts, and, 12.40
Transactions defrauding creditors
bankruptcy, and, 12.17
Transfers
FSMA, and
insurance business, 3.51
introduction, 3.12
issues, 3.53
process, 3.54
Scheme Report, 3.52
inheritance tax, and, 14.9–14.20
Treating Customers Fairly (TCF)
consequences of breach, 5.49
criticisms of regime, 5.53
enforcement, 5.52
FSA cluster reports and case studies, 5.50
implementation, 5.51
introduction, 5.46
meaning, 5.48
origins, 5.47
payment of life policy, and, 9.10
risk mitigation, 5.52
strategy, 5.51
unfair contract terms, and, 1.54
with-profits funds, and
charges, 6.20–6.21
compensation, 6.20–6.21
connected third party loans and guarantees, 6.19
distributions, 6.14
excess surplus, 6.15
investment strategy, 6.16
loans and guarantees, 6.19
material transactions, 6.18
maturity values, 6.11–6.13
other issues in CP11/5, 6.23–6.24
overview, 6.9–6.10
plans for new business, 6.17
shareholder tax, 6.22
strategic assets, 6.18
surrender values, 6.11–6.13
target values, 6.11–6.13
Treaty reinsurance
(see and see Reassurance)
further issues, 8.4
generally, 8.3
Trust of life policy
(see also see also Trusts)
business assurance for other partners or directors, and
additional trustees, 17.13
commerciality of premiums, 17.11–17.12
commerciality of trust arrangement, 17.10
declaring, 17.14–17.16
generally, 17.7–17.9
types of assurance, 17.17
declaration, 15.25
inheritance tax, and, 14.68
interests of children, 15.30
interests of civil partner, 15.31
interests of spouse, 15.31
joint lives first death policy, 15.41
named person absolutely, for, 15.33
named person if living at death of grantee before maturity failing which grantee, 15.38
named person should he survive grantee failing which grantee, 15.37
named persons in equal shares absolutely, 15.34
per stirpes clause, 15.32
post-21 March 2006 position, 15.42
power of appointment interest in possession trust, 15.27–15.29
Scotland, in, 15.43
specimen forms, 15.26–15.31
such of grantee's children as survive him, 15.35
such of named persons as grantee appoint failing which one absolutely, 15.39–15.40
survivor of husband and wife failing which children, 15.41
trust for A failing which B, 15.36
wordings, 15.32–15.43
Trustee investments
estate planning, and, 15.21–15.23
Trustees
(see also see also Trusts)
appointment
additional trustees, 11.82
court, by, 11.87
first trustees, 11.82–11.84
new trustees, 11.85–11.86
writing in, 11.86
beneficiaries' position, 11.53
breach of trust, 11.49–11.51
claims, 11.75
death, 11.93
delegation of functions, 11.88
disclaimer, 11.89
duties and powers
acceptance of trust, on, 11.34
accounts and records, 11.40
beneficiaries' position, 11.53
breach of trust, 11.49–11.51
conflict of interest, 11.38
discretion, and, 11.48
control of trust property, 11.35–11.36
custodians, and, 11.46
delegation, and, 11.42–11.44
honesty and impartiality, 11.39
introduction, 11.31
investment, 11.45
nominees, and, 11.46
not to delegate, 11.42–11.44
not to profit from trust, 11.37
possession of trust property, 11.35–11.36
self-dealing, 11.38
standard of care, 11.32–11.33
statute, under, 11.52
unanimity of acts, 11.41
vesting declarations, 11.36
eligible persons, 11.79
indemnity, 11.50
insurable interest, and, 2.17
introduction, 11.31
MWPA 1982 trusts, and, 12.42
number, 11.80–11.81
removal, 11.92
replacement, 11.91
retirement, 11.90
standard of care, 11.32–11.33
statutory powers, 11.52
terminating trusteeship, 11.79–11.93
Trusts
accumulations
generally, 11.100
reform proposals, 11.101
advancement, 11.28
appointment of trustees
additional trustees, 11.82
court, by, 11.87
first trustees, 11.82–11.84
new trustees, 11.85–11.86
writing in, 11.86
appointment powers
fraud on the power, 11.24
generally, 11.23
assignment, 11.74
cancellation of life policy, 11.78
care of children
advancement, 11.28
maintenance, education and benefit, 11.26
s 31 Trustee Act 1925, and, 11.27
certainties
intention, 11.6–11.8
introduction, 11.6
objects, 11.10
subject-matter, 11.9
claims by trustees, 11.75
constructive trusts, 11.14
contemplation of marriage, in, 11.18
creation
conditions, 11.6
constructive trusts, 11.14
express trusts, 11.12
generally, 11.5–11.10
implied trusts, 11.13
intention to create, 11.6–11.8
life policies, and, 11.15
objects, 11.10
online trusts, 11.17
Scotland, in, 11.16
statutory trusts, 11.11
subject-matter, 11.9
'three certainties', 11.6
dealings with beneficial interest in trust policies, 11.74
dealings with life policies in trust
authority in trust instrument, under, 11.55
borrowing, 11.62
compounding liabilities, 11.67
court power, under, 11.70
direction of beneficiaries, at, 11.68
exercise of contractual rights, 11.66
exercise of options, 11.65
extent of trust property, 11.72
introduction, 11.54
liens on premiums. 11.63
maintenance of policy, 11.68
mortgage, 11.56
protection for purchasers and mortgagees, 11.61
raising loan on security of policy, 11.64
raising money by sale, etc., 11.58
raising tax, 11.60
revocation by settlor, 11.71
sale, 11.56
sale by implication in order to invest, 11.59
summary, 11.73
surrender, 11.57
definition, 11.2
dissolution of civil partnership, and, 11.18
distinction from powers, 11.4
divorce, and, 11.18
examination of title
introduction, 11.75
notice of breach of trust, 11.76
payment method, 11.77
express trusts, 11.12
fraud on the power, 11.24
hotchpot clause, 11.25
implied trusts, 11.13
intention to create, 11.6–11.8
introduction, 11.1
life interests, 11.20
life policies, of
dealings, 11.54–11.78
declaration, 15.25
generally, 11.15
interests of children, 15.30
interests of civil partner, 15.31
interests of spouse, 15.31
joint lives first death policy, 15.41
named person absolutely, for, 15.33
named person if living at death of grantee before maturity failing which grantee, 15.38
named person should he survive grantee failing which grantee, 15.37
named persons in equal shares absolutely, 15.34
per stirpes clause, 15.32
post-21 March 2006 position, 15.42
power of appointment interest in possession trust, 15.27–15.29
Scotland, in, 15.43
specimen forms, 15.26–15.31
such of grantee's children as survive him, 15.35
such of named persons as grantee appoint failing which one absolutely, 15.39–15.40
survivor of husband and wife failing which children, 15.41
trust for A failing which B, 15.36
wordings, 15.32–15.43
maintenance, education and benefit, 11.26
MWPA 1982, under
(see and see MWPA 1982 trusts)
appointment of trustees, 12.42
beneficiaries, 12.46–12.53
conditions, 12.41
construction of policies by courts, 12.54
objects, 12.45
protection against creditors, 12.40
requirements, 12.43–12.44
Scotland, in, 12.55
trustees of policies, 12.42
objects, 11.10
online trusts, 11.17
perpetuities
80-year period, 11.97
common law rule, 11.95
introduction, 11.94
pension schemes, 11.99
reform proposals, 11.98
'wait and see' rule, 11.96
powers, and, 11.4
powers of appointment
fraud on the power, 11.24
generally, 11.23
specimen, Appendix 4
precatory words, and, 11.6
property adjustment orders, and, 11.18
protected life interest, 11.21
protective trusts
conditions causing forfeiture, 12.39
generally, 12.38
introduction, 11.22
provisions
care of children, 11.26–11.28
fraud on the power, 11.24
hotchpot clause, 11.25
life interests, 11.20
other clauses, 11.29
powers of appointment, 11.23–11.24
protected life interest, 11.21
protective trusts, 11.22
STEP standard provisions, 11.30
trust property, 11.19
purpose, 11.2
requirements for validity
constructive trusts, 11.14
express trusts, 11.12
generally, 11.5–11.10
implied trusts, 11.13
statutory trusts, 11.11
s 31 Trustee Act 1925, and, 11.27
Scotland, in, 11.16
stamp duty
assignment of life policies, on, 11.104
background, 11.102
life policies, on, 11.103
trusts of life policies, on, 11.105
statutory trusts, 11.11
STEP standard provisions, 11.30
subject-matter, 11.9
'three certainties'
intention, 11.6–11.8
introduction, 11.6
objects, 11.10
subject-matter, 11.9
trust property, 11.19
trustees
appointment, 11.82–11.87
beneficiaries' position, 11.53
breach of trust, 11.49–11.51
claims, 11.75
death, 11.93
delegation of functions, 11.88
disclaimer, 11.89
duties and powers, 11.34–11.48
eligible persons, 11.79
indemnity, 11.50
introduction, 11.31
number, 11.80–11.81
removal, 11.92
replacement, 11.91
retirement, 11.90
standard of care, 11.32–11.33
statutory powers, 11.52
terminating trusteeship, 11.79–11.93
trustees' powers and duties
acceptance of trust, on, 11.34
accounts and records, 11.40
beneficiaries' position, 11.53
breach of trust, 11.49–11.51
conflict of interest, 11.38
discretion, and, 11.48
control of trust property, 11.35–11.36
custodians, and, 11.46
delegation, and, 11.42–11.44
honesty and impartiality, 11.39
introduction, 11.31
investment, 11.45
nominees, and, 11.46
not to delegate, 11.42–11.44
not to profit from trust, 11.37
possession of trust property, 11.35–11.36
self-dealing, 11.38
standard of care, 11.32–11.33
statute, under, 11.52
unanimity of acts, 11.41
vesting declarations, 11.36
uses, 11.3
variation, 11.18

U

Uberrima fides
(see and see Utmost good faith)
generally, 2.26
Unauthorised payments
registered pension schemes, and, 16.21
Undue influence
mortgage of life policy, and, 10.68
Unfair contract terms
"blue pencil" test, 1.53
clear disclosure, 1.48
detriment, and, 1.44
EC Directive, 1.41
examples of understandings, 1.52
exclusions, 1.42
fair treatment of customers, 1.54
good faith, and, 1.44
potentially unfair terms, 1.46–1.47
relevance to life contracts, 1.49–1.50
representative actions, 1.51
significant imbalance in rights, and, 1.44
statutory provisions, and, 1.55
unfair terms, 1.43–1.45
utmost good faith, and, 2.43
Unincorporated associations
capacity to contract, and, 1.21
Unit-linked business
reassurance, and, 8.24–8.25
Solvency II, and, 7.76
Unit trust savings schemes
school fees, and, 17.37
Unlawful killing
generally, 9.35–9.36
repudiation of claims, 9.37
Unmarried person
MWPA 1982 trusts, and, 12.52
Unnamed beneficiaries
MWPA 1982 trusts, and, 12.4
Unsecured pension
(see and see Registered pension schemes)
generally, 14.84–14.85
Utmost good faith
'caveat emptor', and, 2.26
criminal sanctions, 2.42
disclosure duty, 2.27–2.32
generally, 2.26
indisputable policies, 2.35
inducement by non-disclosure, 2.33–2.34
misrepresentation
action on discovery, 2.41
effect, 2.40
generally, 2.39
non-disclosure
action on discovery, 2.41
effect, 2.40
indisputable policies, 2.35
inducement, 2.33–2.34
introduction, 2.26
reassurance, and, 8.9
reform proposals
insurable interest, 2.47
Law Commission, 2.45–2.46
misrepresentation, 2.48–2.49
non-disclosure, 2.48–2.49
other issues, 2.50–2.53
Statement of Long-Term Insurance Practice, 2.44
unfair contract terms, 2.43
warranty
generally, 2.36–2.37
waiver of breach, 2.38

V

Valuation of assets
admissible assets, 7.26
concentration risk, 7.27
counterparty risk, 7.27–7.28
cover, 7.31
derivatives, 7.29
efficient portfolio management, 7.30
inheritance tax, and
generally, 14.108
life assurance policies, 14.71
introduction, 7.24–7.25
over the counter transactions, 7.32
quasi-derivatives, 7.29
reduction of investment risk, 7.30
stock lending, 7.33
Variation of contracts
agreement, by, 9.2
Variation of permissions
FSMA, and, 3.44
Vesting in trustees
devolution of property on death, and, 9.41
Voidable transfers
inheritance tax, and, 14.39
Voluntary arrangements
companies, 12.33
individuals, 12.25–12.26

W

'Wait and see' rule
perpetuities, and, 11.96
Warranties
(see also see also Utmost good faith)
generally, 2.36–2.37
waiver of breach, 2.38
Wills
devolution of property on death, and, 9.40
Winding up
avoidance of prior transactions, 12.37
directors' powers, 12.36
generally, 12.34
liquidator's powers, 12.36
provisional liquidator, 12.35
With-profits
meaning, 1.68
With-profits committees
with-profits funds, and, 6.50
With-profits funds
actuaries, 6.49
annual report
generally, 6.50
introduction, 6.36
background, 6.1
bonus calculation, 6.26
business risk, 6.28
charges and expenses
general principles, 6.29
Treating Customers Fairly, 6.20–6.21
closure, 6.46–6.48
connected third party loans and guarantees, 6.19
distributions, 6.14
Equitable Life decision, 6.4–6.5
equitable distribution, 6.32
excess surplus, 6.15
FSA proposals
generally, 6.7–6.8
governance, 6.51–6.52
governance
actuaries, 6.49
annual report, 6.50
FSA proposals, 6.51–6.52
with-profits committees, 6.50
inherited estate
generally, 6.30
reattribution, 6.37–6.45
introduction, 6.1
investment strategy
general, 6.16
general principles, 6.27
loans and guarantees, 6.19
material transactions, 6.18
maturity values, 6.11–6.13
nature of contracts, 6.2–6.3
new business
general principles, 6.31
Treating Customers Fairly, 6.17
orphan assets distribution
actuarial expert, 6.41
background, 6.37–6.39
further developments, 6.7
Policyholder Advocate, 6.4#'
process, 6.42–6.45
reattribution expert, 6.41
Principles and Practices of Financial Management (PPFM)
annual report, 6.36
bonus calculation, 6.26
business risk, 6.28
changes to, 6.33
charges and expenses, 6.29
customer-friendly version, 6.35
EEA insurers, and, 6.34
equitable distribution, 6.32
inherited estate, 6.30
introduction, 6.25
investment strategy, 6.27
new business, 6.31
smoothing, 6.26
reattribution of inherited estates
actuarial expert, 6.41
background, 6.37–6.39
further developments, 6.7
Policyholder Advocate, 6.40
process, 6.42–6.45
reattribution expert, 6.41
recent developments, 6.7
smoothing, 6.26
strategic assets, 6.18
surrender values, 6.11–6.13
target values, 6.11–6.13
Treating Customers Fairly (TCF)
charges, 6.20–6.21
compensation, 6.20–6.21
connected third party loans and guarantees, 6.19
distributions, 6.14
excess surplus, 6.15
investment strategy, 6.16
loans and guarantees, 6.19
material transactions, 6.18
maturity values, 6.11–6.13
other issues in CP11/5, 6.23–6.24
overview, 6.9–6.10
plans for new business, 6.17
recent developments, 6.7
shareholder tax, 6.22
strategic assets, 6.18
surrender values, 6.11–6.13
target values, 6.11–6.13
with-profits committees, 6.50
Woodlands relief
inheritance tax, and, 14.39
Actions
Resource information
Show resource details Hide resource details
  • Resource ID: C-000-3386
  • Law stated date: 01-Sep-2011
  • Products:  All Bloomsbury Books, Book: Houseman's Law of Life Assurance, PLC UK Financial Services
Ask a question
Print
Related content
Related content
Practice note
Glossary
Book
Chapters
{ "siteName" : "PLC", "objType" : "PLC_Doc_C", "objID" : "1247596547075", "objName" : "Index to Housemans Law of Life Assurance 14th Edition", "userID" : "2", "objUrl" : "http://uk.practicallaw.com/cs/Satellite/books/9781847667489/HLoLA_zzIndex?null", "pageType" : "", "contentAccessed" : "true", "analyticsPermCookie" : "2-65e08793:13f5a638676:-3ad3", "analyticsSessionCookie" : "2-65e08793:13f5a638676:-3ad2", "statisticSensorPath" : "http://analytics.practicallaw.com/sensor/statistic" }