Permitted property: cash: definition
In general, cash is property that may be selected without the policy becoming a PPB.However, if under the terms of the policy cash may be selected for speculative purposes,that is wholly or partly for the purpose of realising a gain from its disposal, then thepolicy will be a PPB.
Meaning of cash
Cash is widely defined and includes cash held in a deposit account or share accountwith a building society or in a bank account or similar account. This includes depositswith foreign institutions.
Cash does not include near-cash or cash-like assets such as goldand silver bullion, any type of related security or equity, gilts, permanent interestbearing shares issued by a building society and quoted Eurobonds.
Cash also does not include loan notes, such as medium-term loan notes. These do notfall within any of the permitted categories of property and interests in a loan note maynot be selected without making the policy a PPB, even if the return on the loan note islinked to a permitted index.
|Further reference and feedback||IPTM1013|