PIN A4.11.4

For the purposes of Rule A4.11.1, the Insurer's base claims reserve means the higher of the following two amounts:

(a) the amount of the Insurer's provision for Gross Outstanding Claims, less the amount of reinsurance and other recoveries expected to be received in respect of that liability; and
(b) 50% of the amount of the Insurer's provision for Gross Outstanding Claims.