These forms of funeral plan are handled as insurance for VAT functions and therefore exempt, despite the precise fact that they’re not regulated as such, see paragraph 2.three. P&I golf equipment are non-profit making and operate on a system of payments, normally based mostly on the previous year’s costs, with supplementary funds, termed ‘calls’ to settle claims and rebates to stability underwriting years. A block insurance coverage policy will normally name the enterprise taking out the policy because the ‘policy holder’ with the ‘persons insured’ proven as the customers of the policyholder. Sometimes the contract will name the ‘persons insured’ because the enterprise taking out the coverage and its customers, with out really naming every particular person customer. This implies that insurance coverage supplied by unauthorised insurers is exempt from VAT. Such businesses could presumably be liable to prosecution beneath the FSMA and we could refer cases that come to our consideration to the FCA.