Permitted property: life policies, life annuity contracts and capital redemption policies
Selection of other policies and contracts
Benefits under a policy may also be determined by reference to another life insurancepolicy, capital redemption policy or life annuity contract that the policyholder hasselected. In such cases, the policy would not be a PPB provided that the policy orcontract selected is
- within the scope of the chargeable event legislation, and
- not itself a PPB.
Selection of internal funds of another insurer
A policyholder taking out a policy with one insurer may be entitled to select theinternal funds of another insurer to determine the value of that policy. For regulatoryreasons, it may be that the only way in which the benefits of a policy issued by oneinsurer can be linked to the value of the internal funds of another insurer is byinvesting in a unit-linked policy issued by the latter insurer.
An arrangement of this kind would not make the policy a PPB unless any underlying policyis a PPB.
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