IPTM8165 - Significant variation of a qualifying policy: tests for whether policy after variation qualifies: general test: ICTA88/SCH15/PARA18
Where a qualifying policy is significantly varied, the policy must be tested again to see whether it remains qualifying.
Significant variations: similar rules to those that apply on a substitution
The rules that must be applied on a significant variation are a modified version of the rules that apply where a qualifying policy is substituted for another policy, as described at IPTM8120 to IPTM8130.
The modifications are merely to ensure that the rules make sense when applied to a varied policy rather than a substitution and the tests are effectively the same.
The necessary modifications necessary are given in ICTA88/SCH15/PARA18. They are that:
- references to 鈥榦ld鈥� and 鈥榥ew鈥� policy must be read as meaning the 鈥榩olicy immediately before and after the significant variation鈥�
- references to the 鈥榤aking of the insurance鈥� must be read as meaning the 鈥榯aking effect of the variation鈥�, and
- references to the term of the policy must be read as meaning the 鈥榯erm of the policy from the date of the variation鈥�.
IPTM8170 explains how the rules described at IPTM8120 to IPTM8130 apply in practice when there has been a significant variation of a qualifying policy.