Determination of liabilities on establishment of offshore insurance fund of insurer
21.—(1)  For the purpose of determining the minimum value of the assets to be allocated by an insurer to an insurance fund under section 16(11) of the Act, the amount of the insurer’s liability in respect of the policies registered or required to be registered in the insurer’s register of offshore policies as at its establishment shall be determined in accordance with paragraphs (2) and (3).
(2)  In respect of policies belonging to the insurer’s life business, prospective liabilities shall be valued as for a statutory valuation at the day preceding the date of the establishment of the register, and in the case of life policies on the minimum basis, and in other cases on a basis approved by the Authority; and there shall be added to the amount of those liabilities any amounts due and unpaid under those policies.
(3)  In respect of policies belonging to the insurer’s general business, prospective liabilities shall be taken to be of an amount equal to the reserve for unexpired risks which would be required in respect of those policies in a revenue account lodged with the Authority under the Act for the accounting period ending on the day preceding the date of the establishment of the register; and there shall be added to the amount of those liabilities the amount estimated to be required to provide for claims arising before the end of that period, after allowing for recoveries from reinsurances and for salvage.