Parent undertaking or parent

An undertaking which has the following relationship to another undertaking ("S"):(i) it holds (alone or, under an agreement with other shareholders) a majority of the voting rights in S; or (ii) it is a member of S and has the right to appoint or remove a majority of its board of directors; or (iii) it has the right to exercise a dominant influence over S through: (A) provisions contained in S's memorandum or articles; or (B) a control contract; or (iv) it is a parent undertaking of a parent undertaking of S; or (v) he is an individual and would be a parent undertaking if he were an undertaking; or in relation to (ii) , the undertaking will be treated as a member of S if any of its subsidiary undertakings is a member of S, or if any shares in S are held by a person acting on behalf of the undertaking or any of its subsidiary undertakings.

Participating policies

Long term policies contractually entitled to receive part of the surplus of an insurance fund ("with profit policies").

Perpetual subordinated debt

A subordinated debt instrument that does not have a specified maturity date at the time the instrument is issued i.e. there is no fixed date for repayment of this debt and any repayment is at the option of the issuer.

Person

Any person having legal status, including a natural person, a firm or a partnership.

Policy

A contract of insurance, or any document evidencing such a contract.

Portfolio transfer

(as defined under Paragraph GR-4.1.3)

A transfer of all rights and obligations of one insurance firm to another insurance firm, so that the policyholders and reinsurers continue to be subject to the same terms and conditions as originally agreed.

Policyholder

The person who for the time being is the legal holder of the policy, including any person to whom, under the policy, a sum is due, a periodic payment is payable or any other benefit is to be provided or to whom such a sum, payment or benefit is contingently due, payable or to be provided.

Politically Exposed Persons ('PEPs')

Foreign PEPs are individuals who are or have been entrusted with prominent public functions by a foreign country, for example Heads of State or of government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations, important political party officials.

Domestic PEPs are individuals who are or have been entrusted domestically with prominent public functions, for example Heads of State or of government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations, important political party officials.

Persons who are or have been entrusted with a prominent function by an international organisation refers to members of senior management, i.e. directors, deputy directors and members of the board or equivalent functions.

The definition of PEPs is not intended to cover middle ranking or more junior individuals in the foregoing categories.

Premium

In relation to a general insurance contract, the consideration payable under the contract by the policyholder to the insurer. In relation to a long-term insurance contract, a payment under the contract.

Premium basis calculation (of solvency margin)

The calculation contained in CA-2.1.13.

Principal regulator

(of an overseas insurance firm) — the regulator (usually of the jurisdiction of the head office of the firm) to whose supervisory requirements the firm is primarily subjected.

Proper valuation

A valuation made by a qualified valuer not more than three years before the relevant date which determined the amount which would be realised at the time of the valuation on an open market sale of the property free from any mortgage or charge.

Pure reinsurer

An insurance firm whose business is restricted to reinsurance.