Surrender values of life policies
23.—(1)  On the surrender of a life policy under section 49section 60 (1) of the Act, the surrender value of the life policy shall be —
(a)in the case of an endowment policy, an amount equal to 80% of the insurer’s liabilities in respect of that policy determined in accordance with paragraph (2); and
(b)in the case of a whole term of life policy, an amount equal to 95% of the insurer’s liabilities in respect of that policy determined in accordance with paragraph (2),
at the date of the surrender.
(2)  For the purposes of paragraph (1), an insurer’s liabilities shall be determined by —
(a)for products introduced on or after 1st January 1994, the minimum valuation basis as in regulation 26(5); and
(b)for products introduced before 1st January 1994, the same method as in the minimum basis, except that the valuation shall be made by using —
(i)the A1924-29 Ultimate Mortality Table for both male and female lives; and
(ii)a rate of interest of 4% per annum.
(3)  Notwithstanding paragraph (1), the Authority may allow, in any particular case or in relation to any particular type of life policies, the surrender values of such policies to be calculated on a basis different from that specified in paragraph (1).