5Requirements for registration

5 Requirements for registration

5 Requirements for registration

(1) For the purposes of section 13 (1) (i) of the Act, the rules of a company proposing to carry on contributory funeral benefit business must provide that, on the death of any person—

(a) who has contributed for at least 10 years to the funeral contribution fund proposed to be constituted by the company, and

(b) who has ceased before his or her death so to contribute,

the company will pay an amount, equal to the paid-up value of the person’s contributions, towards the cost of a funeral service for the person to be provided under an agreement between the company and a funeral director.

(2) For the purposes of this clause, the paid-up value of contributions paid by a person is taken to be—

(a) the amount certified by an actuary to be the equitable share to which the person is entitled in the funeral contribution fund proposed to be constituted by the company, or

(b) the amount calculated in accordance with a formula certified by an actuary to be a formula from which that share can be calculated,

having regard to the contributions paid and benefits received by the person before the person ceased contributing to the fund.