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CA-2.1.11

The capital sum at risk is defined as the benefit amounts payable as a consequence of the happening of the contingency covered by the policy contract less the mathematical reserves in respect of the relevant contract. The capital sum at risk calculation is the greater of:

(a) 0.15% of the capital sum at risk before deduction for reinsurance cessions; or
(b) 0.30% of the capital sum at risk after deduction for reinsurance cessions.

In either case no negative value can be used as the capital sum at risk under any policy.

Amended: January 2007