101800 – Financial Accounts: Excluded Accounts: Retirement & Pension Accounts: ‘Holloway’ Contracts

A ‘Holloway’ contract is a with-profits permanent health insurance contract where the profits element is designed to provide an annuity on retirement. Such contracts issued by a friendly society within the meaning of the Friendly Societies Act 1992 (c. 40) will not be Reportable Accounts where, as well as providing [permanent health] benefits, the additional investment benefits:

(a) Are derived from surpluses accrued by the [friendly society] and apportioned to [policyholders]; and

(b) Are payable to [policyholders] on retirement, death, or as otherwise specified by contractual provisions or individual society rules, for example, disability of the policyholder.