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:
\mathrm{SCR}_{\mathrm{NSLTh}} = \sqrt{\mathrm{SCR}_{(\mathrm{NSLTh}, \mathrm{pr})}^2 + \mathrm{SCR}_{(\mathrm{NSLTh}, \mathrm{lapse})}^2}
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.