ERSM20130 - Employment-related securities and options: insurance contracts
Rights under contracts of insurance other than excluded contracts of insurance are included in the definition of securities from 2 December 2004 (see ITEPA03/S420 (1)(aa), (1A) and (1B)).
鈥淐ontract of insurance鈥�, 鈥渃ontract of long-term insurance鈥�, and 鈥渃ontract of general insurance鈥� have the same meaning as in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.
An excluded contract of insurance is a contract:
- for an annuity which is (or will be) pension income,
- of long-term insurance, other than an annuity contract, which does not have a surrender value and is not capable of acquiring one (whether on conversion or in any other circumstances), or
- of general insurance other than one which falls, in accordance with generally accepted accounting practice, to be accounted for as a financial asset or liability.