
1 
These Regulations may be cited as the Industrial
Assurance (Life Assurance Premium Relief) (Change of Rate) Regulations 1980,
and shall come into operation on 20th January 1981.
2 
In these Regulations—
 “the 1977 Regulations”
 means the 
Industrial Assurance (Life Assurance Premium Relief) Regulations 1977;

 “industrial assurance company”
 and “collecting society”
 have the meanings assigned by section 1 of the 
Industrial Assurance Act 1923 as amended by Schedule 6 to the 
Companies Act 1967;
 “the prescribed scheme”
 means the scheme prescribed in 
Schedule 1 to the Industrial Assurance
(Life Assurance Premium Relief) Regulations 1977;

 “an approved scheme”
 means a special scheme approved by the
Industrial Assurance Commissioner in the circumstances provided for in 
regulation 7 of the Industrial Assurance
(Life Assurance Premium Relief) Regulations 1977;

 “actuary”
means an actuary having the qualifications which are
prescribed by the Friendly
Societies (Qualifications of Actuaries) Regulations 1968;

 “net premium” has the meaning assigned in paragraph
3 of Schedule 1 to the Industrial Assurance
(Life Assurance Premium Relief) Regulations 1977;

 “gross premium”
means the premium of the amount payable under the policy
or contract;
 “the authorised percentage”
 means the percentage for the time being
in force under paragraph 5(a) of Schedule 4
to the Finance Act 1976;

 “the effective date”
 means the date on which a change in
the authorised percentage takes effect;
 “amended net premium”
 shall be a sum equal to the gross premium
less the authorised percentage, such sum to be rounded off in accordance with
the principles set out in Schedule 1
of the 1977 Regulations;
 “parent” includes a stepfather and a stepmother.
3 

(1) Where an industrial assurance company
or collecting society has adopted the prescribed scheme or an approved scheme
in accordance with the provisions of the 1977 Regulations the company or society
may, by resolution of its board of directors or, as the case may be, of its
committee of management, passed within eight months of the passing of any
Act making a change in the authorised percentage, amend any such scheme so
that amounts equal to the authorised percentage of the gross premiums due
and payable on or after the effective date under policies or contracts to
which the scheme applies shall be retained by or refunded to the persons paying
the premiums.
(2) Where an industrial assurance company
or collecting society has amended any such scheme, amounts equal to the authorised
percentage of the gross premiums payable under policies or contracts to which
the scheme applies shall be retained by or refunded to the persons paying
the premiums as provided in the scheme so amended.
(3) Written notice of a resolution amending
the prescribed scheme or an approved scheme shall within fourteen days of
the passing thereof be sent by the industrial assurance company or collecting
society to the Industrial Assurance Commissioner.
(4) Where a collecting society has resolved
to amend the prescribed scheme or an approved scheme any right conferred by section 21 of the 
Friendly Societies Act 1974 or 
section 10(1) of the Industrial Assurance
and Friendly Societies Act 1948 on any person
to receive a copy of the rules of the society or of an amendment thereof shall
be extended so as to include the right to receive a copy of the resolution
and of the amended scheme adopted by the resolution.
4 

(1) Where, by virtue of 
regulation 4 of the 1977 Regulations, a resolution
adopting the prescribed scheme provided that the gross premium was to be increased
with effect from 6th April 1979 in respect of any specified class of policy
or contract, a resolution amending the prescribed scheme may also amend the
gross premium so that with effect from the effective date the gross premium
shall be amended to such sum as after deduction of the authorised percentage
thereof equals the amount expressed in the policy or contract to be the premium.

(2) Where such an amendment is made, the
resolution shall operate so as to effect the above mentioned amendment in
the gross premium payable under every policy or contract of a class to which
the provision relates, and the prescribed scheme as amended shall take effect
accordingly.
5 
Where a gross premium has been amended under 
regulation 4, the sum assured or guaranteed
by the policy or contract may be amended by an amount determined in accordance
with rules which have been certified by an actuary to be fair in relation
to the gross premium payable and have been approved by the Industrial Assurance
Commissioner.
6 
Where the gross premium is amended in accordance
with these Regulations, the industrial assurance company or collecting society
shall, on being requested in writing after 5th April 1981 to do so by the
person by whom the premium is payable, notify him in writing of the effect
of the amendment on the sum assured or guaranteed or of any other effect.

7 
Where by virtue of 
regulation 6 of the 1977 Regulations a person
insured under a policy or contract irrevocably elected that the premium under
the contract under which he was insured should be increased with effect from
6th April 1979, the amendment to the gross premium shall apply as from the
effective date as if it had been effected under 
regulation 4(2), and regulations 5
 and 6
shall apply in respect of an amended premium under this regulation as they
apply in relation to an amendment under regulation
4.
8 
Where an industrial assurance company or a collecting
society adopted an approved scheme under regulation
7 of the 1977 Regulations, the Industrial Assurance
Commissioner may, within eight months of the passing of any Act making a change
in the authorised percentage, approve any amendment to the scheme which in
his view is expedient or necessary to give effect to the change in the authorised
percentage.
9 
Where an industrial assurance company or collecting
society has, in accordance with the provisions of these regulations, amended
the prescribed scheme or an approved scheme adopted by it, as soon as is reasonably
practicable it shall either:
(a) serve upon every person paying premiums
to the company or society who is affected by the amendment a notice containing
a statement setting out the effects thereof; or
(b) publish or cause to be published such
notice by advertisement in one or more newspapers in general circulation in
the area where the company or society carries on business.
10 
Notwithstanding anything contained in the rules
of a collecting society which has amended the prescribed scheme or an approved
scheme, the committee of management of the society may, by resolution passed
before the effective date, make amendments to the rules of the society in
connection with the amendment by the society of any such scheme.
11 
The enactments mentioned in the Schedule to
these Regulations shall have effect subject to the adaptations and modifications
set out in that Schedule.
K. Brading
Industrial Assurance Commissioner
15th December 1980
SCHEDULE
Regulation 11
1 
Subsection (1)
of section 23 of the Industrial Assurance
Act 1923, as it applies to an industrial assurance
contract to which the amended prescribed scheme, or an amended approved scheme
which provides for payment of the amended net premium, applies, shall have
effect as if for the words “the amount due” there
were substituted the words “the amount of the amended net premiums,
as defined in the Industrial Assurance (Life
Assurance Premium Relief) (Change of Rate) Regulations 1980,
due”, and where any part of the amount is due in the period
6th April 1979 to 5th April 1981, both dates inclusive, 
paragraph 1 of Schedule 3 to the 1977 Regulations
shall apply in addition to this paragraph.
2 
In its application to the valuation of a policy
of which the sum assured or guaranteed has been increased under 
regulation 5 or 6
of the 1977 Regulations and the increase has been amended under 
regulation 5 or 7, 
Schedule 4 to the Industrial Assurance
Act 1923 shall have effect subject to the following
modification—
The value of the policy shall be computed and approved by an actuary
in accordance with principles which take account of changes in the authorised
percentage and which are approved by the Industrial Assurance Commissioner.

3 
In the Schedule to the 
Industrial Assurance and Friendly Societies Act 1929
the words “premiums actually paid”
in their application to a policy in respect of which, under the prescribed
scheme or an approved scheme, payment of any premium due has been discharged
by payment of the net premium or the amended net premium,
shall include premiums in respect of which such payment has been made.

4 
In its application to a policy of which the
sum assured or guaranteed has been increased under 
regulation 5 or 6
of the 1977 Regulations and the increase has been amended under 
regulation 5 or 7, 
paragraph 1 of the said Schedule shall have
effect subject to the following modification—
The amount assured by the free paid-up policy shall be computed
and approved by an actuary in accordance with principles which take account
of changes in the authorised percentage and which are approved by the Industrial
Assurance Commissioner.
5 
For the purpose of 
subsection (2) of section 2 of the 
Industrial Assurance and Friendly Societies Act 1948
(power to insure life of parent or grandparent for not more than £30)
there shall be excluded so much of any sum insured to be paid, or paid, on
the death of any one of a person's parents or grandparents as represents any
increase in any sum assured or guaranteed effected under 
regulation 5 or 6
of the 1977 Regulations and amended under regulation
5 or 7.

6 
In applying the limits imposed by 
section 64 of the Friendly Societies
Act 1974 (limits on amounts which a member,
or person claiming through a member, of a registered friendly society is entitled
to receive from one or more such societies) there shall be disregarded any
increase in any sum assured or guaranteed which is effected under 
regulation 5 or 6
of the 1977 Regulations and amended under regulation
5 or 7.

7 
For the purpose of 
section 72 of the Friendly Societies
Act 1974 (power of registered friendly society
to insure life of parent or grandparent for not more than £30) there
shall be excluded so much of any sum insured to be paid, or paid, on the death
of any one of a person's parents or grandparents as represents any increase
in any sum assured or guaranteed which is effected under 
regulation 5 or 6
of the 1977 Regulations and amended under regulation
5 or 7.
