Overseas insurers: scope of reporting rules: relevant insurances and gross premiums
A policy or contract is a relevant insurance if
- it comes within the scope of the chargeable events legislation
- the policyholder is resident in the UK - see IPTM9040, and
- the policy or contract is not attributable to a UK branch or agency of the insurer (policies and contracts from UK branches and agencies are within the reporting regime for UK insurers).
Gross premiums are the amounts paid as premium under the relevant insurancessince the policies and contracts were taken out, without any deduction for reinsurancepremiums or commissions relating to the same business.
In calculating the amounts of gross premiums paid on policies held by UK residents it isonly necessary to consider the residence of the policyholder of each policy or contract onthe date that the test is applied. The gross premiums are the premiums that have been paidfor the whole period that the policy or contract has run, including for any periods whenthe policyholder was not UK resident.
Policies denominated in currencies other than sterling
Where a policy or contract is denominated in a currency other than sterling, incalculating the total amount of gross premiums the insurer will need to convert the totalamount of premiums paid in each currency into the sterling equivalent. The conversion rateto be used should be the rate that applies on the date that the calculation is made, thatis, the date on which the insurer is testing whether its level of business exceeds the £1million threshold.
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