Instructions for completion of Form 59
1. ‘Original insurer’ means the insurance undertaking which effected the policy (which may be same entity as the insurer).
2. Where the with-profits mathematical reserves relating to the business of the original insurer exceed £100m, Forms 59A and 59B must be completed for the original insurer.
3. The date of the maturity value, open market option or surrender value is two months and one day after the valuation date, for example 1st March for a 31st December valuation.
4. In Form 59A, column 3 is the maturity value for endowment assurances or the open market option for regular and single premium pension business.
5. Maturity values for endowment assurances must be based on a £50 monthly premium paid by a male non-smoker aged 30 next birthday at the date the policy commenced.
6. Open market options for regular premium pension must be based on a personal pension or s226policy with a £200 monthly premium paid by a male aged 65 at retirement, for a selected retirement age of 65 at outset. The insurer must assume that the policy commenced on the relevant birthday date appropriate to the term of the policy with the final premium payable one month before retirement aged 65.
7. Open market options for single premium pensions must be based on a personal pension or s226 policy with a £10,000 single premium paid by a male aged 65 at retirement, for a selected retirement age of 65 at outset. The insurer must assume that the policy commenced on the relevant birthday date appropriate to the term of the policy.
8. Surrender values for endowment assurances must be based on a £50 monthly premium paid by a male non-smoker aged 30 next birthday with an original term of 25 years at the date the policycommenced.
9. Surrender values for with-profits bonds must be based on a £10,000 single premium paid by a male aged 50 at the date the policy commenced. The insurer must assume that no prior withdrawals have taken place.
10. Surrender values for single premium pensions must be based on a personal pension or s226 policy with a £10,000 single premium paid by a male aged 40 at the date the policy commenced.
11. Where the insurer did not effect policies in a particular category or the policy category was not open to new business (apart from increments) at the date the policy is assumed to have commenced, the entry in columns 3 to 8 must be ‘n/a’.
12. Column 4 is the amount of terminal bonus included in column 3. If a market value (or similar) adjustment has been applied, then that amount must be shown as a negative amount in column 5.
13. Column 6 is CWP (conventional with-profits) or UWP (unitised with-profits).
14. Column 7 is Y if an MVA is permitted by the policy conditions at the date of maturity / date of surrender for that policy, otherwise N.
15. Where there is more than one version or premium rate for one of the data lines, the data shown must be for the version where there is the largest amount of business
