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Life assurance business and long-term business

The legislation makes frequent use of the terms life assurance business and long-term business both of which are given statutory definitions.

The definition of life assurance business follows the insurance regulatory regime as the effecting or carrying out of contracts of insurance that fall within paragraphs I, II, III or VII(b) of SI 2001/544, Sch 1, Pt 2¹. This therefore includes life and annuity business, marriage and birth insurance, linked long-term business and pension fund management combined with contracts of insurance.

In addition the definition of life assurance business is extended for tax purposes to include capital redemption business although such business is not life assurance since it does not depend on human mortality².

Long-term business includes life assurance business but is extended to include other business consisting of the effecting or carrying out of contracts of long-term insurance³. This other business is any permanent health insurance written by the company with the remaining regulatory categories assimilated to permanent health