NSLT health underwriting risk sub-module

1. The NSLT health underwriting risk sub-module shall consist of the following sub-modules:

(a) the NSLT health premium and reserve risk sub-module;

(b) the NSLT health lapse risk sub-module.

2. The capital requirement for NSLT health underwriting risk shall be equal to the following:

SCR NSLT h = sqrt( SCR^2 (NSLTh, pr) + SCR^2 (NSLTh, lapse)

where:

(a) SCR (NSLTh, pr) denotes the capital requirement for NSLT health premium and reserve risk;

(b) SCR (NSLTh, lapse) denotes the capital requirement for NSLT health lapse risk.