Froogle | Glossary | 'Closed Block'

a mechanism to preserve (over time) the reasonable dividend expectations of policy holders. These underlying policies can be:

(i) individual life policies;

(ii) individual health policies; and/or

(iii) individual annuity policies.

A closed block is comprised of:

(i) a defined, limited group of policies; and

(ii) a defined set of assets.

Plus, closed blocks are governed by a set of operating rules. All cash flows that arise from the closed block are exclusively committed to supporting the policies in the closed block – as specified in the operating rules.

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