Under UK legislation, a life insurance company can only take into account — for the purpose of demonstrating supervisory solvency — specified maximum amounts of certain assets. The maxima are expressed in terms of percentages of the value of the company’s non-property-linked liabilities plus its required capital resources requirement. Any asset not specifically mentioned in the legislation must be left out of account.
The assets to which the company can give a value are the admissible assets. Assets that are not admissible are called inadmissible.
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