IR rule that the sole purpose of any pension scheme is to provide a pension for its members. Those responsible for the scheme must take account of the rule in managing the scheme. Breaches that disadvantage members or connected persons attract serious penalties.

Phrase that qualifies the term ‘accidental bodily injury’ in personal accident insurances. The phrase excludes injury or disablement where a pre-existing condition has contributed to the onset of the disablement or prolonged its duration. A gall stone sufferer died when accidentally struck. Independently of each other neither the medical condition or the blow would have killed him.

1. The test to show that the insurer or underwriter is complying with FSA solvency requirements by comparing the available solvency margin with the required minimum margin. 2. Actuarial calculation to determine whether an occupational pension scheme’s assets are sufficient to pay the benefits to members.