Changes to the Rules are summarised on page 9 of our 2006 Report and Accounts.

We have separated the Tables from the Rules. This will enable us to update Tables and introduce new ones without having to “register” the changes – which is a slow process. Our Tables will be published – on the web and available in hard copy at no charge. This will apply equally to products currently available and to those no longer sold – where we still have members with benefits.

Some of our business is written as policies. This was previously Health Insurance – Income Protection (or “PHI”) and Private Medical cover – but now applies also to Life Insurance, including Mortgage Protection.

The New Tables allow us to write 2 variations of the With Profit Bond. An Income version of the WPB permits 5% of the premium to be taken out on every anniversary. A regular savings version (the "With Profit Plan" ) allows monthly premiums with a new contract being issued each calendar year. This enables us to have flexible savings plans at all ages, without underwriting, and we hope this will prove a popular alternative to the 5 year plan (which has age limits and no flexibility on encashment).

The Children’s Plan (Table 8) now matures at age 25, enabling it to be sold up to age 15. The options to cash in at age 18 and 21 remain but are on the birthday – not the plan anniversary before it. (These options only apply if the plan has been running for 10 years).

We reviewed the age limits on our endowment savings plans. These are now written to mature by age 65 for non-smokers and age 60 for smokers. Subject to that, the same benefits will apply to all.

We offered improved benefits to non-smoker members whose plans mature between age 60 & 65. The position was more complicated for whole life option plans, but again there was a prospect of improved benefits for some. Where we increased benefits this took effect from January 2008.