(1) Every insurance company to which Part II of this Act applies, being a company which is not registered under the Companies Act, under the Companies (Northern Ireland) Order 1986 or under the former Companies Acts—
(a) if it has not incorporated in its deed of settlement section 10 of the Companies Clauses Consolidation Act 1845, shall keep a shareholders address book in accordance with the provisions of that section and shall, on the application of any shareholder or policy holder of the company, furnish to him a copy of the book on payment of a sum not exceeding 2½p for every hundred words required to be copied;
(b) shall cause a sufficient number of copies of its deed of settlement to be printed and shall, on the application of any shareholder or policy holder of the company, furnish to him one of those copies on payment of a sum not exceeding 5p.
(2) Any insurance company which makes default in complying with this section shall be guilty of an offence and liable on summary conviction in England and Wales and Scotland to a fine not exceeding level 5 on the standard scale and, on summary conviction in Northern Ireland to a fine not exceeding £400.
89 Insurance companies formed before 1967 in contravention of section 434 of the Companies Act
(1) Section 716 of the Companies Act (which in certain cases forbids the formation otherwise than under that Act of a company, association or partnership consisting of more than twenty persons) shall be deemed not to have invalidated the formation of any insurance company which immediately before 3rd November 1966 was carrying on in Great Britain insurance business of any class relevant for the purposes of Part I of the Insurance Companies Act 1974 and was carrying on business of that class on 25th July 1973.
(2) In subsection (1) above the reference to the said section 716 includes a reference to any corresponding enactment previously in force.
(1) Regulations may be made with respect to the determination of the value of assets and the amount of liabilities in any case in which the value or amount is required by any provision of this Act to be determined in accordance with valuation regulations.
(2) Without prejudice to the generality of subsection (1) above, regulations under this section may provide that, for any specified purpose, assets or liabilities of any specified class or description shall be left out of account or shall be taken into account only to a specified extent.
(3) Regulations under this section may make different provision in relation to different cases or circumstances and for the purposes of different enactments.
(1) Where an offence under this Act committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, chief executive, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity, he, as well as the body corporate, shall be guilty of that offence and liable to be proceeded against and punished accordingly.
(2) For the purposes of this section a person shall be deemed to be a director of a body corporate if he is a person in accordance with whose directions or instructions the directors of the body corporate or any of them act.
92 Criminal proceedings against unincorporated bodies.
(1) Proceedings for an offence alleged to have been committed under this Act by an unincorporated body shall be brought in the name of that body (and not in that of any of its members) and, for the purposes of any such proceedings, any rules of court relating to the service of documents shall have effect as if that body were a corporation.
(2) A fine imposed on an unincorporated body on its conviction of an offence under this Act shall be paid out of the funds of that body.
(3) In a case in which an unincorporated body is charged with an offence under this Act—
(a) in England or Wales, section 33 of the Criminal Justice Act 1925 and Schedule 3 to the Magistrates’ Courts Act 1980 (procedure on charge of offence against a corporation);
(b) in Northern Ireland, section 18 of the Criminal Justice Act (Northern Ireland) 1945 and Schedule 4 to the Magistrates’ Courts (Northern Ireland) Order 1981 (procedure on charge of offence against a corporation)
shall have effect in like manner as they have effect in the case of a corporation so charged.
(4) In relation to any proceedings on indictment in Scotland for an offence alleged to have been committed under this Act by an unincorporated body, section 70 of the Criminal Procedure (Scotland) Act 1995 (proceedings on indictment against bodies corporate) shall have effect as if that body were a body corporate.
Proceedings in respect of an offence under this Act shall not be instituted—
(a) in England or Wales, except by or with the consent of the Treasury, the Secretary of State, the Industrial Assurance Commissioner or the Director of Public Prosecutions,
(b) in Northern Ireland, except by or with the consent of the Treasury,the Secretary of State, the Department of Commerce for Northern Ireland or the Director of Public Prosecutions for Northern Ireland.
(1) Summary proceedings for any offence under this Act may (without prejudice to any jurisdiction exercisable apart from this subsection) be taken against a body corporate at any place at which the body has a place of business, and against any other person at any place at which he is for the time being.
(2) Notwithstanding anything in section 127 of the Magistrates’ Courts Act 1980, an information relating to an offence under this Act which is triable by a magistrates’ court in England and Wales may be so tried if it is laid at any time within three years after the commission of the offence and within twelve months after the date on which evidence sufficient, in the opinion of the Director of Public Prosecutions, the Treasury,the Secretary of State or the Industrial Assurance Commissioner, as the case may be, to justify the proceedings comes to his or their knowledge.
(3) Summary proceedings in Scotland for an offence under this Act shall not be commenced after the expiration of three years from the commission of the offence.
(4) Subject to the limitation in subsection (3) above and notwithstanding anything in section 136 of the Criminal Procedure (Scotland) Act 1995, the proceedings referred to in that subsection may be commenced at any time within twelve months after the date on which evidence sufficent in the opinion of the Lord Advocate to justify the proceedings comes to his knowledge or, where such evidence was reported to him by the Treasury,the Secretary of State or the Industrial Assurance Commissioner, within twelve months after the date on which it came to the knowledge of the Treasury, Secretary of State or Commissioner.
(5) Subsection (3) of section 136 of the said Act of 1995shall apply for the purposes of subsections (3) and (4) above as it applies for the purposes of that section.
(6) Notwithstanding anything in Article 19(1) of the Magistrates’ Courts (Northern Ireland) Order 1981, a complaint relating to an offence under this Act which is triable by a court of summary jurisdiction in Northern Ireland may be so tried if it is made at any time within three years after the commission of the offence and within twelve months after the date on which evidence sufficient, in the opinion of the Director of Public Prosecutions for Northern Ireland ,the Treasury the Secretary of State or the Department of Commerce for Northern Ireland as the case may be, to justify the proceedings comes to his or that Department’s knowledge.
(7) For the purposes of this section a certificate of the Director of Public Prosecutions, the Lord Advocate, the Director of Public Prosecutions for Northern Ireland , the Treasury the Secretary of State, the Department of Commerce for Northern Ireland or the Industrial Assurance Commissioner, as the case may be, as to the date on which such evidence as aforesaid came to his, or that Department’s, knowledge shall be conclusive evidence.
94B Law applicable to certain contracts of insurance.
(1) The law applicable to a contract of insurance the effecting of which constitutes general business, and which covers risks situated in the United Kingdom or another member State, shall be determined in accordance with the provisions of Part I of Schedule 3A to this Act.
(1A) The law applicable to a contract of insurance to which Article 1 of the first long term insurance Directive applies shall be determined in accordance with the provisions of Part II of Schedule 3A to this Act if–
(a) where the policy holder is an individual, he is habitually resident in a member State; or
(b) where the policy holder is not an individual, the establishment of the policy holder to which the contract relates is situated in a member State.
(2) Subsections (1) and (1A) above do not apply in relation to a contract of reinsurance.
(1) When documents are deposited under section 22(1) above the company concerned shall pay to the Treasurysuch fee as may be prescribed.
(2) In the case of a company for which a fee is prescribed, documents shall not be taken to have been deposited under section 22(1) until the company has paid the fee.
(3) When a statement is deposited under section 86(1) above the Council of Lloyd’s shall pay to the Treasurysuch fee as may be prescribed.
(4) In making regulations for the purposes of subsections (1) and (3) above the Treasury shall have regard to the object of securing (so far as practicable) that the amount of the fees payable in any relevant period by insurance companies and the Council of Lloyd’s is equal to the cost incurred, or likely to be incurred, in the period by the Treasury in exercising relevant functions.
(5) This section does not apply where documents are, or a statement is, deposited before 1st April 1986, and in subsection (4) above ''relevant period’’ means the period of twelve months beginning with 1st April 1986 and each successive period of twelve months beginning with 1st April.
(6) In subsection (4) above “relevant functions” means such functions of the Treasury in relation to insurance companies and the members of Lloyd’s as may be prescribed.
(7) Sums received by the Treasury under this section shall be paid into the Consolidated Fund.
For the purposes of this Act “insurance business” includes—
(a) the effecting and carrying out, by a person not carrying on a banking business, of contracts for fidelity bonds, performance bonds, administration bonds, bail bonds or customs bonds or similar contracts of guarantee, being contracts effected by way of business (and not merely incidentally to some other business carried on by the person effecting them) in return for the payment of one or more premiums;
(b) the effecting and carrying out of tontines;
(c) the effecting and carrying out, by a body (not being a body carrying on a banking business) that carries on business which is insurance business apart from this paragraph, of—
(i) capital redemption contracts;
(ii) contracts to manage the investments of pension funds (other than funds solely for the benefit of its own officers or employees and their dependants or, in the case of a company, partly for the benefit of those persons and partly for the benefit of officers or employees and their dependants of its subsidiary or holding company or a subsidiary of its holding company);
(d) the effecting and carrying out of contracts to pay annuities on human life.
(1) In this Act, unless the context otherwise requires—
“actuary” means an actuary possessing the prescribed qualifications;
“annuities on human life” does not include superannuation allowances and annuities payable out of any fund applicable solely to the relief and maintenance of persons engaged or who have been engaged in any particular profession, trade or employment, or of the dependants of such persons;
'associate’ shall be construed in accordance with section 96C below;
“body corporate” does not include a corporation sole or a Scottish firm but includes a body incorporated outside the United Kingdom;
“chief executive” has the meaning given in section 96D below;
'claims representative’ has the meaning given in section 96F below;
“commitment” means a commitment represented by insurance business of any of the classes specified in Schedule 1 to this Act;
“the Companies Act” means the Companies Act 1985
“contract of insurance” includes any contract the effecting of which constitutes the carrying on of insurance business by virtue of section 95 above;
“controller” has the meaning given in section 96C below;
'Community co-insurance operation’ and, in relation to such an operation, 'leading insurer’ have the same meanings as in Council Directive 78/473/EEC of 30th May 1978 on the co-ordination of laws, regulations and administrative provisions relating to Community co-insurance;
“court” means the High Court of Justice in England or, in the case of an insurance company registered or having its head office in Scotland, the Court of Session or, in the case of an insurance company registered or having its head office in Northern Ireland, the High Court of Justice in Northern Ireland;
'criteria of sound and prudent management’ means the criteria set out in Schedule 2A to this Act;
“deed of settlement”, in relation to an insurance company, includes any instrument constituting the company;
“director” includes any person occupying the position of director by whatever name called;
'EC company’ has the meaning given in section 2 above;
'EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 as adjusted by the Protocol signed at Brussels on 17th March 1993 ;
'EEA State’ means a State which is a Contracting Party to the EEA Agreement . . .;
'EFTA company’ has the meaning given by section 72B above;
'EFTA State’ means an EEA State which is not a member State;
“enactment” includes an enactment of the Parliament of Northern Ireland and a Measure of the Northern Ireland Assembly;
“financial year” means, subject to section 69 above, each period of twelve months at the end of which the balance of the accounts of the insurance company is struck or, if no such balance is struck, the calender year;
“former Companies Acts” means the Companies Act 1929 or the Companies Act (Northern Ireland) 1932 and any enactment repealed by that Act of 1929 or, as the case may be, that Act of 1932 or by the Companies (Consolidation) Act 1908; and the Companies Acts 1948 to 1983and the Companies Acts (Northern Ireland) 1960 to 1983
“general business” has the meaning given in section 1 above;
“holding company” shall be construed in accordance with section 736 of the Companies Act or Article 4 of the Companies (Northern Ireland) Order 1986;
'home State’, in relation to an EC company, means the member State in which the company’s head office is situated;
“industrial assurance business” has the meaning given in section 1(2) of the Industrial Assurance Act 1923 or Articles 2(2) and 3(1) of the Industrial Assurance (Northern Ireland) Order 1979;
“insolvent” means, in relation to an insurance company at any relevant date, that if proceedings had been taken for the winding up of the company the court could, in accordance with the provisions of sections 122 and 123 or section 221 of the Insolvency Act 1986 or, as the case may be, Articles 102 and 103 or Article 185 of the Insolvency (Northern Ireland) Order 1989, hold or have held that the company was at that date unable to pay its debts;
“insurance company” means a person or body of persons (whether incorporated or not) carrying on insurance business;
“life policy” means any instrument by which the payment of money is assured on death (except death by accident only) or the happening of any contingency dependent on human life, or any instrument evidencing a contract which is subject to payment of premiums for a term dependent on human life;
“long term business” has the meaning given in section 1 above;
“long term policy holder” means a policy holder in respect of a policy the effecting of which by the insurer constituted the carrying on of long term business;
“main agent” has the meaning given in section 96E below;
“manager”, except in section 56, has the meaning given in section 96D below;
(a) where the policy holder is an individual, the member State in which he had his habitual residence at that date; or
(b) where the policy holder is not an individual, the member State in which the establishment of the policy holder to which the commitment relates wassituated at that date;
“margin of solvency”, “United Kingdom margin of solvency” and 'EEA margin of solvency’ shall be construed in accordance with section 32 above;
'member State’ shall be construed in accordance with section 2(7) . . . above;
“mortgage”, in relation to Scotland, means a heritable security within the meaning of section 9(8) of the Conveyancing and Feudal Reform (Scotland) Act 1970;
'non-EC company’ has the meaning given in section 5 above;
'notifiable holding’ means voting rights or shares which, if acquired by any person, will result in his becoming a 10 per cent.shareholder controller, a 20 per cent.shareholder controller, a 33 per cent.shareholder controller, a 50 per cent.shareholder controller or a majority shareholder controller;
“ordinary long-term insurance business” means long term business that is not industrial assurance business;
“parent undertaking” shall be construed in accordance with section 258 of the Companies Act 1985 and Article 266 of the Companies (Northern Ireland) Order 1986 ;
“policy”—
(a) in relation to ordinary long-term insurance business and industrial assurance business, includes an instrument evidencing a contract to pay an annuity upon human life;
(b) in relation to insurance business of any other class includes any policy under which there is for the time being an existing liability already accrued or under which a liability may accrue; and
(c) in relation to capital redemption business, includes any policy, bond, certificate, receipt or other instrument evidencing the contract with the company;
“policy holder” means the person who for the time being is the legal holder of the policy for securing the contract with the insurance company or, in relation to capital redemption business, means the person who for the time being is the legal holder of the policy, bond, certificate, receipt or other instrument evidencing the contract with the company, and—
(a) in relation to such ordinary long-term insurance business or industrial assurance business as consists in the granting of annuities upon human life, includes an annuitant; and
(b) in relation to insurance business of any kind other than such as is mentioned in the foregoing paragraph or capital redemption business, includes a person to whom, under a policy, a sum is due or a periodic payment is payable;
“prescribed” means prescribed by regulations under this Act;
“registered society” means a society registered or deemed to be registered under the Industrial and Provident Societies Act 1965 or the Industrial and Provident Societies Act (Northern Ireland) 1969;
“registrar of companies” has the the same meaning as in the Companies Act and “registrar of companies in Northern Ireland” means the registrar of companies within the meaning of Article 2 of the Companies (Northern Ireland) Order 1986;
'relevant motor vehicle risks’ means risks falling within class 10 of Schedule 2 to this Act (motor vehicle liability), but excluding carrier’s liability;
'shareholder controller’, '10 per cent.shareholder controller’, '20 per cent.shareholder controller’, '33 per cent.shareholder controller’, '50 per cent.shareholder controller’ and 'majority shareholder controller’ have the meanings given by section 96C below;
'State of the commitment’, in relation to a commitment entered into at any date, means—
(a) where the policy holder is an individual, the State in which he had his habitual residence at that date;
(b) where the policy holder is not an individual, the State in which the establishment of the policy holder to which the commitment relates was situated at that date,
and 'member State of the commitment’ shall be construed accordingly;
“subsidiary”, except in section 57, shall be construed in accordance with section 736 of the Companies Act or Article 4 of the Companies (Northern Ireland) Order 1986:
'subsidiary undertaking’ shall be construed in accordance with section 258 of the Companies Act and Article 266 of the Companies (Northern Ireland) Order 1986 ;
“supervisory authority”, in relation to a member State other than the United Kingdom or in relation to Switzerland, means the authority responsible in that State or country for supervising insurance companies;
“Swiss general insurance company” has the meaning given in section 11 above;
'UK company’ has the meaning given in section 5 above;
“underwriter” includes any person named in a policy or other contract of insurance as liable to pay or contribute towards the payment of the sum secured by the policy or contract;
“valuation regulations” means regulations under section 90 above;
“vessel” includes hovercraft.
(2) References in this Act to a fund or funds maintained in respect of long term business are references to a fund or funds maintained under section 28(1)(b) above and in sections 48(3) and 55(6) above include references to a fund or funds maintained under section 3(1) of the Insurance Companies Act 1958 or section 14(1) of the Insurance Companies Act (Northern Ireland) 1968.
(3) A person shall not be deemed to be within the meaning of any provision of this Act a person in accordance with whose directions or instructions the directors of a company or other body corporate or any of them are accustomed to act by reason only that the directors of the company or body act on advice given by him in a professional capacity.
(2B) Any reference in this Act—
(a) to an undertaking being closely linked with any person, or being closely linked with any person by control; or
(b) to an undertaking’s close links with any person,
shall be construed in accordance with regulation 2 of the Financial Institutions (Prudential Supervision) Regulations 1996).
(4) Any reference in this Act to an enactment of the Parliament of Northern Ireland or a Measure of the Northern Ireland Assembly shall include a reference to any enactment re-enacting it with or without modifications.
(5) Except as otherwise provided by paragraph 27 of Schedule 2F to this Act, this Act shall apply as if Gibraltar were a member State.
96A Interpretation of expressions derived from . . . insurance Directives.
(1) In this Act—
(a) “the first general insurance Directive” means Council Directive 73/239/EEC of 24 July 1973 on the coordination of laws, regulations and administrative provisions relating to the taking-up and pursuit of the business of direct insurance other than life assurance;
(b) “the second general insurance Directive” means Council Directive 88/357/EEC of 22 June 1988 on the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and laying down provisions to facilitate the effective exercise of freedom to provide services and amending Directive 73/239/EEC;
(c) 'the third general insurance Directive’ means Council Directive 92/49/EEC of 18 June 1992 on the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and amending Directives 73/239/EEC and 88/357/EEC ;
and “the general insurance Directives” means those Directives as amended and such other Directives as make provision with respect to the business of direct insurance other than life assurance.
(1A) The Directives amending the general insurance Directives referred to in subsection (1) above include Council Directive 90/618/EEC amending, particularly as regards motor vehicle liability insurance, Directive 73/239/EEC and Directive 88/357/EEC.
(1B) In this Act–
(a) “the first long term insurance Directive” means Council Directive 79/267/EEC of 5 March 1979 on the coordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of direct life assurance;
(b) “the second long term insurance Directive” means Council Directive 90/619/EEC of 8 November 1990 on the coordination of laws, regulations and administrative provisions relating to direct life assurance, laying down provisions to facilitate the effective exercise of freedom to provide services and amending Directive 79/267/EEC;
(c) 'the third long term insurance Directive’ means Council Directive 92/96/EEC of 10 November 1992 on the coordination of laws, regulations and administrative provisions relating to direct life assurance and amending Directives 79/267 EEC and 90/619/EEC ;
and “the long term insurance Directives” means those Directives.
(1C) Any reference in this Act to the first or third general insurance Directive, or to the first or third long term insurance Directive, is a reference to that Directive as amended by the Prudential Supervision Directive (within the meaning of the Financial Institutions (Prudential Supervision) Regulations 1996).
(2) In this Act, in relation to an insurance company, 'establishment’ means the head office or a branch of the company; and references to a company being established in a State mean that the company has its head office or a branch there.
Any permanent presence of an insurance company in a State other than that in which it has its head office shall be regarded as a single branch, whether that presence consists of a single office which, or two or more offices each of which—
(a) is managed by the company’s own staff;
(b) is an agency of the company; or
(c) is managed by a person who is independent but has permanent authority to act for the company in the same way as an agency.
(3) References in this Act to the member State where the risk is situated are—
(a) where the insurance relates to buildings or to buildings and their contents (in so far as the contents are covered by the same policy), to the member State in which the property is situated;
(b) where the insurance relates to vehicles of any type, to the member State of registration;
(c) in the case of policies of a duration of four months or less covering travel or holiday risks (whatever the class concerned), to the member State where the policy holder took out the policy;
(d) in a case not covered by paragraphs (a) to (c)—
(i) where the policy holder is an individual, to the member State where he has his habitual residence at the date when the contract is entered into;
(ii) otherwise, to the member State where the establishment of the policy holder to which the policy relates is situated at that date.
(3A) In this Act references to the provision of insurance in the United Kingdom or any other EEA State are references to either or both of the following—
(a) the covering (otherwise than by way of reinsurance) of a risk situated there through an establishment in another EEA State ('the provision of general insurance’); and
(b) the covering (otherwise than by way of reinsurance) of a commitment situated there through an establishment in another EEA State ('the provision of long term insurance’).
(4) In this Act the “ECU” means the unit of account of that name defined in Council Regulation (EEC) No. 3180/78 as amended.
The exchange rates as between the ECU and the currencies of the member States to be applied for each year beginning on 31st December shall be the rates applicable on the last day of the preceding October for which rates for the currencies of all the member States were published in the Official Journal of the Communities.
(1) In this Act “large risks” means—
(a) risks falling within classes 4, 5, 6, 7, 11 and 12 of Part I of Schedule 2;
(b) risks falling within classes 14 and 15 of that Part which relate to a business carried on by the policy holder;
(c) risks falling within classes 3, 8, 9, 10, 13 and 16 of that Part where the policy holder carries on a business in respect of which the condition specified in subsection (2) below is met.
(2) The condition referred to in subsection (1)(c) is that at least two of the three following criteria were exceeded in the most recent financial year for which the information is available:
First stage: until 31st December 1992—
balance sheet total: 12.4 million ECU
net turnover: 24 million ECU
number of employees: 500;
Second stage: from 1st January 1993—
balance sheet total: 6.2 million ECU
net turnover: 12.8 million ECU
number of employees: 250.
(3) For the purposes of subsection (2) as it applies to a company within the meaning of section 735(1) of the Companies Act 1985 or Article 3 of the Companies (Northern Ireland) Order 1986—
(a) “balance sheet total” has the meaning given by section 247(5) of that Act or Article 255(5) of that Order,
(b) “net turnover” has the meaning given to “turnover” by section 262(1) of that Act or Article 270(1) of that Order, and
(c) “number of employees” has the meaning given by section 247(6) of that Act or Article 255(6) of that Order;
and for a financial year which is a company’s financial year but not in fact a year, the net turnover of the company shall be proportionately adjusted.
(4) Where the policy holder is a member of a group for which consolidated accounts (within the meaning of Directive 83/349/EEC are drawn up, the question whether the condition in subsection (2) is met shall be determined by reference to those accounts.
(5) For the purposes of subsection (1)(c) as it applies where the policy holder is a professional association, joint venture or temporary grouping, the question whether the condition in subsection (2) is met shall be determined by reference to the aggregate of the relevant figures for all the members of the professional association, joint venture or temporary grouping.
(6) In this section “business” includes a trade or profession and, for the purposes of subsection (1)(c), any activity of a professional association, joint venture or temporary grouping.
(1) In this Act 'controller’, in relation to an insurance company, means—
(a) a managing director of the company or of a body corporate of which the company is a subsidiary;
(b) a chief executive of the company or of a body corporate, being an insurance company, of which the company is a subsidiary;
(c) a person in accordance with whose directions or instructions the directors of the company or of a body corporate of which it is a subsidiary are accustomed to act;
(d) in the case of UK company, a person who satisfies the requirements of subsection (2) below; or
(e) except in the case of a UK company, a person who either alone or with any associate or associates is entitled to exercise, or control the exercise of, 15 per cent. or more of the voting power at any general meeting of the company or of a body corporate of which it is a subsidiary.
(2) A person satisfies the requirements of this subsection in relation to a UK company if, either alone or with any associate or associates—
(a) he holds 10 per cent. or more of the shares in the company or another company of which it is a subsidiary undertaking;
(b) he is entitled to exercise, or control the exercise of, 10 per cent.or more of the voting power at any general meeting of the company or another company of which it is a subsidiary undertaking; or
(c) he is able to exercise a significant influence over the management of the company or another company of which it is such an undertaking by virtue of—
(i) a holding of shares in; or
(ii) an entitlement to exercise, or to control the exercise of, the voting power at any general meeting of,
the company or, as the case may be, that other company.
(3) In this Act—
'shareholder controller’ means a person who is a controller of a UK company by virtue of subsection (2) above;
'10 per cent. shareholder controller’ means a shareholder controller in whose case the percentage referred to in subsection (2) above is 10 or more but less than 20;
'20 per cent. shareholder controller’ means a shareholder controller in whose case that percentage is 20 or more but less than 33;
'33 per cent. shareholder controller’ means a shareholder controller in whose case that percentage is 33 or more but less than 50;
'50 per cent. shareholder controller’ means a shareholder controller in whose case that percentage is 50;
'majority shareholder controller’ means a shareholder controller whose shareholding is such that the UK company is his subsidiary undertaking.
(4) For the purpose of determining for the purposes of this Act whether any person is a controller of an insurance company or is a shareholder controller, or a shareholder controller of any particular description, of a UK company, 'associate’ means, subject to subsection (5) below—
(a) the wife or husband or minor son or daughter of that person;
(b) the trustees of any settlement under which that person has a life interest in possession, or, in Scotland, a life interest;
(c) any company of which that person is a director;
(d) any person who is an employee or partner of that person;
(e) if that person is a company—
(i) any director of that company;
(ii) any subsidiary undertaking of that company;
(iii) any director or employee of any such subsidiary undertaking; and
(f) if that person has made an agreement or arrangement with any other person—
(i) with respect to the acquisition, holding or disposal of shares or other interests in the company concerned or another company of which it is a subsidiary undertaking; or
(ii) under which they undertake to act together in exercising their voting power in relation to the company concerned or another company of which it is such an undertaking, that other person.
(5) For the purpose of determining for the purposes of this Act whether any person is a controller of an insurance company other than a UK company, subsection (4) above shall have effect as if—
(a) paragraphs (b) and (f) were omitted; and
(b) in paragraph (e), for the words 'subsidiary undertaking’, in both places where they occur, there were substituted the word 'subsidiary’.
(6) In this section—
'settlement’ includes any disposition or arrangement under which property is held in trust;
'share’ has the same meaning as in Part VII of the Companies Act or Part VIII of the Companies (Northern Ireland) Order 1986 ;
'son’ includes stepson and 'daughter’ includes stepdaughter.
(7) Any reference in this section to a UK or non-EC company includes a reference to a company which, if any authorisation sought by it were issued, would be such a company.
(1) In this Act 'manager’—
(a) in relation to a UK company, means any person (other than an employee of the company) appointed by the company to manage any part of its business, or any employee of the company (other than a chief executive) who, under the immediate authority of a director or chief executive of the company—
(i) exercises managerial functions, or is responsible for maintaining accounts or other records of the company; and
(ii) is not a person whose functions relate exclusively to business conducted from a place of business which is not in a member State;
(b) in relation to an insurance company which is not a UK company, means an employee of the company (other than a chief executive) who, under the immediate authority of a director or chief executive of the company—
(i) exercises managerial functions, or is responsible for maintaining accounts or other records of the company; and
(ii) is not a person whose functions relate exclusively to business conducted from a place of business outside the United Kingdom.
(2) In this Act 'chief executive’, in relation to an insurance company or body corporate, means an employee of that company or body corporate, who, either alone or jointly with others, is responsible under the immediate authority of the directors for the conduct of the whole of the insurance business of that company or body corporate.
(1) In this Act 'main agent’—
(a) in relation to a UK company, means a person appointed by the company to be its agent in respect of general business in one or more member States, with authority to enter into contracts on behalf of the company in any financial year—
(i) without limit on the aggregate amount of premiums; or
(ii) with a limit in excess of 10 per cent. of the premium limit as determined in accordance with subsections (3) to (6) below;
(b) in relation to an insurance company which is not a UK company, means, subject to such exceptions as may be prescribed, a person appointed by the company to be its agent in respect of general business in the United Kingdom, with authority to enter into contracts on behalf of the company in any financial year—
(i) without limit on the aggregate amount of premiums; or
(ii) with a limit in excess of 10 per cent. of that premium limit.
(2) A person shall not be regarded as falling within subsection (1)(a)(i) above in relation to a financial year unless—
(a) the company is of the opinion that the aggregate amount of premiums, on contracts entered into by him on behalf of the company in that year in respect of general business in the member State or States concerned, will be in excess of 10 per cent. of the premium limit as determined in accordance with subsections (3) to (6) below; or
(b) the aggregate amount of premiums, on contracts so entered into, actually is in excess of 10 per cent. of that premium limit.
(3) Subject to subsections (4) and (5) below, the premium limit for the purposes of this section is the aggregate of the amounts of gross premiums shown in the annual accounts relating to the company’s business last deposited under section 22 above as receivable in respect of general business in the financial year to which the accounts relate.
(4) If the accounts so deposited relate to a financial year which is not a period of 12 months, the aggregate of the amounts of gross premiums shown in the accounts as receivable in that financial year shall be divided by the number of months in that financial year and multiplied by twelve.
(5) If no accounts have been deposited under section 22 above the aggregate amount of gross premiums shall be the amount or, if more than one amount, the lower or lowest amount, shown in respect of gross premiums relating to the company’s business in the financial forecast last submitted by the company in accordance with regulations made for the purposes of section 5(1)(a) above.
(6) Any reference in subsection (3) or (5) above to the company’s business is, in the case of an insurance company which is not a UK company, a reference to its business in the United Kingdom.
(1) In this Act 'claims representative’, in relation to an insurance company and an EEA State, means a person who—
(a) has been designated as the company’s representative in that EEA State ('the EEA State concerned’); and
(b) satisfies the requirements mentioned in subsections (2) to (5) below.
(2) The claims representative must be authorised—
(a) to act on behalf of the company and to represent, or to instruct others to represent, the company in relation to any matters giving rise to relevant claims;
(b) to pay sums in settlement of relevant claims;
(c) to accept service on behalf of the company of proceedings in respect of relevant claims;
but the authority must not extend to the settlement of relevant claims.
(3) The claims representative must be authorised to represent the company in any proceedings or enquiry to establish the existence or validity of a policy issued by the company which covers or purports to cover relevant motor vehicle risks in the EEA State concerned.
(4) Without prejudice to subsection (2) above, the claims representative must not act on behalf of the company in the carrying on in the EEA State concerned of its general business (other than its reinsurance business, if any).
(5) The claims representative must—
(a) in the case of an individual, be resident in the EEA State concerned;
(b) in the case of a corporation, have a place of business in that EEA State.
(6) In this section 'relevant claim’ means any claim which may be made against a policy issued by the company to the extent that it covers relevant motor vehicle risks situated in the EEA State concerned, whether or not submitted to the company and whether by a policy holder or by a third party having rights of action against the company or a policy holder or by both.
(1) The Treasury may make regulations under this Act for any purpose for which regulations are authorised or required to be made thereunder.
(2) Regulations under this Act may make different provision for cases of different descriptions.
(3) Any power conferred by this Act to make regulations shall be exercisable by statutory instrument.
(4) Any statutory instrument containing regulations under this Act , except regulations under section 21A(3), shall be subject to annulment in pursuance of a resolution of either House of Parliament.
99 Savings, transitionals, consequential amendments and repeals.
(1) The saving and transitional provisions specified in Schedule 4 to this Act shall have effect.
(2) The enactments mentioned in Schedule 5 to this Act shall have effect subject to the amendments there specified, being amendments consequential on the provisions of that Act.
(3) The enactments mentioned Schedule 6 to this Act are hereby repealed to the extent specified in the third column of that Schedule.
(1) This Act may be cited as the Insurance Companies Act 1982.
(2) Subject to Schedule 4 to this Act, this Act shall come into force at the expiration of the period of three months beginning with the date on which it is passed.
(3) This Act extends to Northern Ireland.
Section 1.
Number | Description | Nature of business
I | Life and annuity. | Effecting and carrying out contracts of insurance on human life or contracts to pay annuities on human life, but excluding (in each case) contracts within Class III below.
II | Marriage and birth. | Effecting and carrying out contracts of insurance to provide a sum on marriage or on the birth of a child, being contracts expressed to be in effect for a period of more than one year.
III | Linked long term. | Effecting and carrying out contracts of insurance on human life or contracts to pay annuities on human life where the benefits are wholly or partly to be determined by reference to the value of, or the income from, property of any description (whether or not specified in the contracts) or by reference to fluctuations in, or in an index of, the value of property of any description (whether or not so specified).
IV | Permanent health. | Effecting and carrying out contracts of insurance providing specified benefits against risks of persons becoming incapacitated in consequence of sustaining injury as a result of an accident or of an accident of a specified class or of sickness or infirmity, being contracts that—
(a) are expressed to be in effect for a period of not less than five years, or until the normal retirement age for the persons concerned, or without limit of time, and
(b) either are not expressed to be terminable by the insurer, or are expressed to be so terminable only in special circumstances mentioned in the contract.
V | Tontines. | Effecting and carrying out tontines.
VI | Capital redemption. | Effecting and carrying out capital redemption contracts.
VII | Pension fund management. | Effecting and carrying out—
(a) contracts to manage the investments of pension funds, or
(b) contracts of the kind mentioned in paragraph (a) above that are combined with contracts of insurance covering either conservation of capital or payment of a minimum interest.
VIII | Collective insurance etc. | Effecting and carrying out contracts of a kind referred to in Article 1(2)(e) of the first long term insurance Directive.
IX | Social insurance | Effecting and carrying out contracts of a kind referred to in Article 1(3) of the first long term insurance Directive.
Sections 1 and 3.
Part I Classes
Number | Description | Nature of business
1 | Accident. | Effecting and carrying out contracts of insurance providing fixed pecuniary benefits or benefits in the nature of indemnity (or a combination of both) against risks of the person insured or, in the case of a contract made by virtue of section 140, 140A or 140B of the Local Government Act 1972 . . ., a person for whose benefit the contract is made—
(a) sustaining injury as the result of an accident or of an accident of a specified class, or
(b)dying as the result of an accident or of an accident of a specified class, or
(c)becoming incapacitated in consequence of disease or of disease of a specified class,
inclusive of contracts relating to industrial injury and occupational disease but exclusive of contracts falling within class 2 below or within class IV in Schedule 1 to this Act (permanent health).
2 | Sickness. | Effecting and carrying out contracts of insurance providing fixed pecuniary benefits or benefits in the nature of indemnity (or a combination of the two) against risks of loss to the persons insured attributable to sickness or infirmity, but exclusiove of contracts falling within class IV in Schedule 1 to this Act.
3 | Land vehicles. | Effecting and carrying out contracts of insurance against loss of or damage to vehicles used on land, including motor vehicles but excluding railway rolling stock.
4 | Railway rolling stock. | Effecting and carrying out contracts of insurance against loss of or damage to railway rolling stock.
5 | Aircraft. | Effecting and carrying out contracts of insurance upon aircraft or upon the machinery, tackle, furniture or equipment of aircraft.
6 | Ships. | Effecting and carrying out contracts of insurance upon vessels used on the sea or on inland water, or upon the machinery, tackle, furniture or equipment of such vessels.
7 | Goods in transit. | Effecting and carrying out contracts of insurance against loss of or damage to merchandise, baggage and all other goods in transit, irrespective of the form of transport.
8 | Fire and natural forces. | Effecting and carrying out contracts of insurance against loss of or damage to property (other than property to which classes 3 to 7 above relate) due to fire, explosion, storm, natural forces other than storm, nuclear energy or land subsidence.
9 | Damage to property. | Effecting and carrying out contracts of insurance against loss of or damage to property (other than property to which classes 3 to 7 above relate) due to hail or frost or to any event (such as theft) other than those mentioned in class 8 above.
10 | Motor vehicle liability. | Effecting and carrying out contracts of insurance against damage arising out of or in connection with the use of motor vehicles on land, including third-party risks and carrier’s liability.
11 | Aircraft liability. | Effecting and carrying out contracts of insurance against damage arising out of or in connection with the use of aircraft, including third-party risks and carrier’s liability.
12 | Liability for ships. | Effecting and carrying out contracts of insurance against damage arising out of or in connection with the use of vessels on the sea or on inland water, including third-party risks and carrier’s liability.
13 | General liability. | Effecting and carrying out contracts of insurance against risks of the persons insured incurring liabilities to third parties, the risks in question not being risks to which class 10, 11 or 12 above relates.
14 | Credit. | Effecting and carrying out contracts of insurance against risks of loss to the persons insured arising from the insolvency of debtors of theirs or from the failure (otherwise than through insolvency) of debtors of theirs to pay their debts when due.
15 | Suretyship. | Effecting and carrying out—
(a) contracts of insurance against risks of loss to the persons insured arising from their having to perform contracts of guarantee entered into by them;
(b) contracts for fidelity bonds, performance bonds, administration bonds, bail bonds or customs bonds or similar contracts of guarantee.
16 | Miscellaneous financial loss. | Effecting and carrying out contracts of insurance against any of the following risks, namely—
(a) risks of loss to the persons insured attributable to interruptions of the carrying on of business carried on by them or to reduction of the scope of business so carried on;
(b) risks of loss to the persons insured attributable to their incurring unforeseen expense (other than loss such as is covered by contracts falling within class 18 below);
(c) risks neither falling within paragraph (a) or (b) above nor being of a kind such that the carrying on of the business of effecting and carrying out contracts of insurance against them constitutes the carrying on of insurance business of some other class.
17 | Legal expenses. | Effecting and carrying out contracts of insurance against risks of loss to the persons insured attributable to their incurring legal expenses (including costs of litigation).
18 | Assistance | Effecting and carrying out contracts of insurance providing either or both of the following benefits, namely—
(a) assistance (whether in cash or in kind) for persons who get into difficulties while travelling, while away from home or while away from their permanent residence, or
(b) assistance (whether in cash or in kind) for persons who get into difficulties otherwise than as mentioned in paragraph (a) above.
Part II Groups of Classes
Number | Description | Nature of business
1 | Accident and health. | Classes 1 and 2.
2 | Motor. | Class 1 (to the extent that the relevant risks are risks of the person insured sustaining injury, or dying, as the result of travelling as a passenger) and classes 3, 7 and 10.
3 | Marine and transport. | Class 1 (to the said extent) and classes 4, 6, 7 and 12.
4 | Aviation. | Class 1 (to the said extent) and classes 5, 7 and 11.
5 | Fire and other damage to property. | Classes 8 and 9.
6 | Liability. | Classes 10, 11, 12 and 13.
7 | Credit and suretyship. | Classes 14 and 15.
8 | General. | All classes.
SCHEDULE 2A CRITERIA OF SOUND AND PRUDENT MANAGEMENT
Integrity and skill
1 The business of the insurance company is carried on with integrity, due care and the professional skills appropriate to the nature and scale of its activities.
2 Each director, controller, manager or main agent of the insurance company is a fit and proper person to hold that position.
3 In the case of a non-EC company whose head office is not in an EFTA State—
(a) the representative referred to in section 9(4) above; or
(b) where that representative is not an individual, the individual representative referred to in section 10(5) above,
is a fit and proper person to hold that position.
Direction and management of the insurance company
4 The insurance company is directed and managed by a sufficient number of persons who are fit and proper persons to hold the positions which they hold.
Business to be conducted in a sound and prudent manner
5 The insurance company conducts its business in a sound and prudent manner.
6 (1) The insurance company shall not be regarded as conducting its business in a sound and prudent manner unless it maintains—
(a) adequate accounting and other records of its business; and
(b) adequate systems of control of its business and records.
(2) Accounting and other records and systems of control shall not be regarded as adequate unless they are such as—
(a) to enable the business of the company to be prudently managed; and
(b) to enable the company to comply with the obligations imposed on it by or under this Act and, in the case of a UK company, enactments in other EEA States which apply to its insurance business.
(3) In determining whether any systems of control are adequate the Treasury shall have regard to the functions and responsibilities for those systems which are held by the persons who are responsible for the direction and management of the company and to whom paragraph 2 above applies.
7 The insurance company shall not be regarded as conducting its business in a sound and prudent manner if it fails to conduct its business with due regard to the interests of policy holders and potential policy holders.
8 The insurance company shall not be regarded as conducting its business in a sound and prudent manner if—
(a) it fails to satisfy an obligation to which it is subject by virtue of this Act; or
(b) in the case of a UK company, it fails to satisfy an obligation to which it is subject by virtue of any provision of the law of another EEA State which applies to its insurance business in that State.
9 The insurance company shall not be regarded as conducting its business in a sound and prudent manner if it fails to supervise the activities of a subsidiary undertaking—
(a) with due care and diligence; and
(b) without detriment to the company’s business.
SCHEDULE 2B] RESTRICTION ON DISCLOSURE OF INFORMATION
PART I INFORMATION RELATING TO UK, EC AND NON-EC COMPANIES
Restriction on disclosure
1 (1) Subject to the following provisions of this Part of this Schedule, information which—
(a) is restricted information for the purposes of this paragraph; and
(b) relates to the business or other affairs of a relevant person,
shall not be disclosed without the consent of the person from whom the information was obtained and, if different, the person to whom it relates.
(2) Subject to sub-paragraph (3) below, information is restricted information for the purposes of this paragraph if it was obtained by the Treasury or the Secretary of State for the purposes of, or in the discharge of, functions under this Act or any rules or regulations made under this Act (whether or not by virtue of any requirement to supply it made under those provisions).
(3) Information is not restricted information for the purposes of this paragraph if—
(a) it has been made available to the public from other sources, or
(b) it is information in the form of a summary or is information so framed as not to enable information relating to any particular person to be ascertained from it.
(4) The following are relevant persons for the purposes of this paragraph, namely—
(a) any UK, EC or non-EC company or any member of Lloyd’s; and
(b) any controller, manager, chief executive, general representative, agent or employee of such a company.
(5) Any person who discloses information in contravention of this paragraph shall be guilty ofan offence and liable—
(a) on conviction or indictment, to imprisonment for a term not exceeding two years or to a fine or to both;
(b) on summary conviction, to imprisonment for a term not exceeding three months or to a fine not exceeding the statutory maximum or to both.
Disclosure for facilitating discharge of functions by Secretary of State
2 Paragraph 1 above does not preclude the disclosure of information in any case in which disclosure is for the purpose of enabling or assisting the Treasury or the Secretary of State to discharge . . . functions under this Act or any rules or regulations made under this Act (whether or not by virtue of any requirement to supply it made under those provisions).
Disclosure for facilitating discharge of functions by other regulatory authorities
3 (1) Paragraph 1 above does not preclude the disclosure by the Treasury or the Secretary of State to any person specified in the first column of the following Table if the Treasury or, as the case may be, the Secretary of State considers that the disclosure would enable or assist that person to discharge the functions specified in relation to him in the second column of that Table.
TABLE
Person | Functions
1The Secretary of State. | Functions under the Companies Act, the Company Securities (Insider Dealing) Act 1985 , the Insolvency Act 1986 , the Company Directors Disqualification Act 1986 , the Financial Services Act 1986 , or Part II, III or VII of the Companies Act 1989 .
1A The Financial Services Authority. | Functions under the Financial Services Act 1986 (other than as a designated agency within the meaning of that Act), the Banking Act 1987 or section 171 of the Companies Act 1989.
2The Treasury. | Functions under the Financial Services Act 1986 or under Part III or VII of the Companies Act 1989.
3An inspector appointed under Part XIV of the Companies Act or section 94 or 177 of the Financial Services Act 1986. | Functions under that Part or that section.
4A person authorised to exercise powers under section 43A or 44 above, section 447 of the Companies Act, section 106 of the Financial Services Act 1986 or section 84 of the Companies Act 1989. | Functions under that section.
5The Friendly Societies Commission, the Registrar of Friendly Societies for Northern Ireland and the Assistant Registrar of Friendly Societies for Scotland. | Functions under the enactments relating to friendly societies or under the Financial Services Act 1986.
6The Industrial Assurance Commissioner or the Industrial Assurance Commissioner for Northern Ireland. | Functions under the enactments relating to industrial assurance.
7The Building Societies Commission. | Functions under the Building Societies Act 1986 and protecting the interests of the shareholders and depositors of building societies.
The Occupational Pensions Regulatory Authority. | Functions under the Pension Schemes Act 1993 or the Pensions Act 1995, or any enactment in force in Northern Ireland corresponding to either of them.
8The Director General of Fair Trading. | Functions under the Fair Trading Act 1973 except Part II, the Consumer Credit Act 1974 , the Restrictive Trade Practices Act 1976 , the Estate Agents Act 1979 , the Competition Act 1980 or the Control of Misleading Advertisements Regulations 1988 .
9A designated agency (within the meaning of the Financial Services Act 1986). | Functions under that Act or Part VII of the Companies Act 1989.
10A transferee body (within the meaning of the Financial Services Act 1986) or the competent authority (within the meaning of that Act). | Functions under that Act.
11Any of the following (within the meaning of the Financial Services Act 1986), namely, a recognised self-regulating organisation, a recognised investment exchange, a recognised professional body and a recognised clearing house. | Functions in its capacity as a recognised self-regulating organisation, recognised investment exchange, recognised professional body or a recognised clearing house.
12The Department of Economic Development in Northern Ireland. | Functions under enactments relating to companies or insolvency.
13An inspector appointed by the Department of Economic Development in Northern Ireland under enactments relating to companies or insolvency. | Functions under those enactments.
14A person authorised to exercise powers under Article 440 of the Companies (Northern Ireland) Order 1986 . . .. | Functions under that Article . . ..
15An official receiver. | Functions under enactments relating to insolvency.
16The Panel on Take-overs and Mergers. | All functions.
17The Bank of England. | All functions.
18A body administering a scheme under section 54 of the Financial Services Act 1986. | Functions under the scheme.
19A body established by order under section 46 of the Companies Act 1989. | Functions under Part II of that Act.
20A supervisory body (as defined in section 30 of the Companies Act 1989) or a qualifying body (as defined in section 32 of that Act). | Functions under that Act.
. . .. | . . ..
22The Council of Lloyd’s, the Committee of Lloyd’s or the Disciplinary Committee or Appeal Tribunal established under the Lloyd’s Act 1982 . | Functions under the Lloyd’s Acts 1871 to 1982 and functions under bye-laws made under those Acts.
23The Tribunal under the Prevention of Fraud (Investments) Act 1958 . | Functions under that Act.
24The Monopolies and Mergers Commission. | Functions under the Fair Trading Act 1973 and the Competition Act 1980.
25An auditor appointed under section 21 above, section 384 of the Companies Act 1985 or section 107 of the Financial Services Act 1986 or a person approved under section 108 of the Financial Services Act 1986. | All functions.
26A recognised supervisory body (within the meaning of Part II of the Companies Act 1989 or Part III of the Companies (Northern Ireland) Order 1990). | Functions in its capacity as such a body under that Part, or functions in relation to disciplinary proceedings against auditors.
27A recognised professional body (within the meaning of section 391 of the Insolvency Act 1986 or Article 350 of the Insolvency (Northern Ireland) Order 1989). | Functions in its capacity as such a body under that Act or that Order, or functions in relation to disciplinary proceedings against insolvency practitioners (within the meaning of that Act or that Order).
28An actuary exercising functions under this Act. | Those functions.
29The Institute of Actuaries or the Faculty of Actuaries. | Supervisory functions in relation to an actuary exercising functions under this Act.
(2) Paragraph 1 above does not preclude the disclosure by any person specified in the first column of the Table in sub-paragraph (1) above of information obtained by him by virtue of that sub-paragraph if he makes the disclosure—
(a) with the consent of the Treasury or the Secretary of State; and
(b) for the purpose of enabling or assisting him to discharge any functions specified in relation to him in the second column of that Table;
and before deciding whether to give consent to such a disclosure by any person the Treasury or, as the case may be, the Secretary of State shall take account of any representations made by that person as to the desirability of or the necessity for the disclosure.
(3) Paragraph 1 above does not preclude—
(a) the disclosure of information to the Treasury; or
(b) the disclosure of information to the Secretary of State for purposes other than those specified in relation to him in sub-paragraph (1) above,
if (in either case) disclosure is in accordance with Article 16(6) of the third general insurance Directive, or Article 15(6) of the third long term insurance Directive.
(4) Paragraph 1 above does not preclude the disclosure of information for the purpose of enabling or assisting any public or other authority not specified in the first column of the Table in sub-paragraph (1) above to discharge any functions if disclosure is in accordance with Article 16 of the third general insurance Directive, or Article 15 of the third long term insurance Directive.
(5) Paragraph 1 above does not preclude the disclosure of information for the purpose of enabling or assisting an authority in a country or territory outside the United Kingdom to exercise functions corresponding to those of—
(a) the Bank of England;
(b) the Secretary of State under this Act or the Financial Services Act 1986;
(ba) the Treasury under this Act or, by virtue of article 2 of the Transfer of Functions (Insurance) Order 1997, under the Financial Services Act 1986;
(c) the designated agency under that Act or rules or regulations made under that Act; or
(d) the competent authority under Part IV of that Act. , or
(e) the Financial Services Authority under that Act (other than in its capacity as a designated agency) or the Banking Act 1987;
(6) Sub-paragraph (5) above does not apply in relation to disclosure to an authority which is not an authority in another member State unless the Treasury are or the Secretary of State is satisfied that the authority is subject to restrictions on further disclosures at least equivalent to those imposed by this Part of this Schedule.
(7) Information which is disclosed to a person in pursuance of sub-paragraph (1) or (2) above shall not be used otherwise than for the purpose mentioned in that sub-paragraph.
(8) Any person who uses information in contravention of sub-paragraph (7) above shall be liable on summary conviction to imprisonment for a term not exceeding three months or to a fine not exceeding level 5 on the standard scale or to both.
(9) Subject to sub-paragraph (10) below, any reference in this paragraph to enabling or assisting any person to discharge or exercise any functions is a reference to enabling or assisting that person to discharge or exercise those functions in relation to—
(a) a financial market; . . .
(b) persons carrying on the business of banking or insurance, Consumer Credit Act businesses or the business of providing other financial services; or
(c) persons involved in the operation of occupational pension schemes (within the meaning of the Pension Schemes Act 1993 or, in Northern Ireland, the Pension Schemes (Northern Ireland) Act 1993)
and in this sub-paragraph “Consumer Credit Act business” has the same meaning as in the Banking Coordination (Second Council Directive) Regulations 1992 .
(10) Sub-paragraph (9) above shall not apply in relation to references to enabling or assisting the discharge or exercise of the following functions, namely—
(a) functions of the Secretary of State under Part XIV of the Companies Act 1985, Part XIII of the Insolvency Act 1986 or Part II of the Companies Act 1989 or, so far as relating to the breach of any law relating to companies, under section 83 of the Companies Act 1989;
(b) functions of an inspector under Part XIV of the Companies Act 1985 or, so far as relating to offences involving securities of a company, under section 177 of the Financial Services Act 1986;
(b) functions of a person authorised to exercise powers under section 84 of the Companies Act 1989, so far as relating to the breach of any law relating to companies;
(d) functions of the Department of Economic Development in Northern Ireland under Part XV of the Companies (Northern Ireland) Order 1986, Part XII of the Insolvency (Northern Ireland) Order 1989 or Part III of the Companies (Northern Ireland) Order 1990;
(e) functions of an inspector under Part XV of the Companies (Northern Ireland) Order 1986;
(f) functions of a recognised professional body (within the meaning of section 391 of the Insolvency Act 1986 or Article 350 of the Insolvency (Northern Ireland) Order 1989);
(g) functions of a recognised supervisory body (within the meaning of Part II of the Companies Act 1989 or Part III of the Companies (Northern Ireland) Order 1990).
Other permitted disclosures
4 (1) Paragraph 1 above does not preclude the disclosure of information—
(a) for the purpose of enabling or assisting the Deposit Protection Board to discharge its functions under the Banking Act 1987 ;
(b) with a view to the institution of, or otherwise for the purposes of, any criminal proceedings, whether under this Act or otherwise;
(c) for the purpose of enabling or assisting the Council of the Stock Exchange to discharge its functions in relation to insurance companies;
(d) with a view to the institution of, or otherwise for the purposes of, proceedings under section 6, 7 or 8 of the Company Directors Disqualification Act 1986 in respect of a director or former director of an insurance company;
(e) with a view to the institution of, or otherwise for the purposes of, any civil proceedings arising under or by virtue of the Financial Services Act 1986 or proceedings before the Financial Services Tribunal, if those proceedings relate to an insurance company;
(f) with a view to the institution of, or otherwise for the purposes of, any disciplinary proceedings relating to the exercise by an auditor or actuary of his professional duties;
(g) in pursuance of a Community obligation.
(2) Paragraph 1 above does not preclude the disclosure by the Treasury or the Secretary of State to the Director of Public Prosecutions, the Director of Public Prosecutions for Northern Ireland, the Lord Advocate, a procurator fiscal or a constable of—
(a) information obtained by virtue of section 43A, 44 or 44A above; or
(b) information in the possession of the Treasury or the Secretary of State as to any suspected contravention in relation to which the powers conferred by those sections are exercisable.
Information supplied by a supervisory authority
5 (1) Paragraph 1 above applies also to information which—
(a) has been supplied to the Treasury or the Secretary of State for the purposes of any relevant functions by a supervisory authority in a member State other than the United Kingdom; or
(b) has been obtained for those purposes by the Treasury or the Secretary of State, or by a person acting on their behalf, in another member State.
(2) Subject to sub-paragraphs (3) and (4) below, information supplied or obtained as mentionedin sub-paragraph (1)(a) or (b) above shall not be disclosed except as provided by paragraph 1 above or—
(a) for the purpose of enabling or assisting the Treasury or the Secretary of State to discharge any relevant functions; or
(b) with a view to the institution of, or otherwise for the purposes of, criminal proceedings, whether under this Act or otherwise.
(3) Information supplied as mentioned in sub-paragraph (1)(a) above may be disclosed—
(a) to a relevant recipient, if the supervisory authority which supplied the information consents to its disclosure and the case is one in which information to which paragraph 1 above applies could be so disclosed by virtue of paragraph 3(1) above; or
(b) to the Treasury or the Secretary of State, if that authority consents to its disclosure and the case is one in which information to which paragraph 1 above applies could be so disclosed by virtue of paragraph 3(3) above.
(4) Information obtained as mentioned in sub-paragraph (1)(b) above may be disclosed—
(a) to a relevant recipient, if the supervisory authority in the member State concerned consents to its disclosure and the case is one in which information to which paragraph 1 above applies could be so disclosed by virtue of paragraph 3(1) above; or
(b) to the Treasury or the Secretary of State, if that authority consents to its disclosure and the case is one in which information to which paragraph 1 above applies could be so disclosed by virtue of paragraph 3(3) above.
(4A) Before the Treasury or the Secretary of State discloses information to any person under sub-paragraph (3) above, they shall notify the supervisory authority which supplied the information of the name and responsibilities of that person.
(5) In this paragraph—
“relevant functions”,
(a) in relation to the Treasury means their functions under this Act, and
(b) in relation to the Secretary of State, means his functions under this Act
“relevant recipient” means a person specified in any of entries 1 to 7, 12, 13 and 17 in the Table in paragraph 3(1) above.
PART II INFORMATION RELATING TO OTHER PERSONS
Restriction on disclosure
6 (1) Subject to paragraph 7 below, no information which—
(a) has been obtained under section 44(2) to (4) or 44A above; and
(b) relates to the business or other affairs of a person who is not a relevant person for the purposes of paragraph 1 above,
shall be disclosed without the consent of the person from whom the information was obtained and, if different, the person to whom it relates.
(2) A person who discloses any information in contravention of this paragraph shall be guilty of an offence under section 449 of the Companies Act or Article 442 of the Companies (Northern Ireland) Order 1986 and liable accordingly.
Permitted disclosures
7 (1) Paragraph 6 above does not preclude the disclosure of information to any person who is a competent authority for the purposes of section 449 of the Companies Act or Article 442(1)(a) to (e) of the Companies (Northern Ireland) Order 1986.
(2) Paragraph 6 above does not preclude the disclosure of information as mentioned in any of the paragraphs except (m) of subsection (1) of section 180 of the Financial Services Act 1986 or in subsection (3) or (4) of that section or as mentioned in section 449(1) of the Companies Act or Article 442 of that Order.
(3) Paragraph 6 above does not preclude the disclosure of any such information as is mentioned in section 180(5) of the Financial Services Act 1986 by any person who by virtue of that section is not precluded by section 179 of that Act from disclosing it.
PART I TRANSFERS OF LONG TERM BUSINESS
Sanction of court required
1 (1) Where it is proposed to carry out a scheme under which the whole or part of the long term business carried on by an insurance company to which this Part of this Act applies (“the transferor company”) is to be transferred to another body whether incorporated or not (“the transferee company”) and—
(a) where the transferor company is a UK company, the business proposed to be transferred is business carried on in one or more member States;
(b) where that company is not a UK company, the business proposed to be transferred is business carried on in the United Kingdom,
the transferor company or the transferee company may apply to the court, by petition, for an order sanctioning the scheme.
(2) If any such scheme involves a compromise or arrangement falling within section 427A(1) ofthe Companies Act or Article 420A(1) of the Companies (Northern Ireland) Order 1986 (application of provisions about compromises and arrangements to mergers and divisions of public companies), the following provisions, namely—
(a) sections 425 to 427 of that Act, or
(b) Articles 418 to 420 of that Order,
shall have effect, as regards that compromise or arrangement, as provided by section 427A(l) or Article 420A(l) (as the case may be), but without prejudice to the operation of the provisions of this Part of this Schedule in relation to the scheme.
(3) No such transfer as is mentioned in sub-paragraph (1) above shall be carried out unless the scheme relating to the transfer has been sanctioned by the court in accordance with this Part of this Schedule; and, except in the case of any such scheme as is mentioned in sub-paragraph (2) above, no order shall be made under any of the provisions specified in paragraph (a) or (b) of that sub-paragraph in respect of so much of any compromise or arrangement as involves any such transfer.
(4) In this Part of this Schedule—
“the court” means the High Court of Justice in England except that it means—
(a) the Court of Session if the transferor company and the transferee company are both registered or both have their head offices in Scotland;
(b) the High Court of Justice in Northern Ireland if the transferor company and the transferee company are both registered or both have their head offices in Northern Ireland;
(c) either the High Court of Justice in England or the Court of Session if either the transferor company or the transferee company is registered or has its head office in Scotland;
(d) either the High Court of Justice in England or the High Court of Justice in Northern Ireland if either the transferor company or the transferee company is registered or has its head office in Northern Ireland; and
(e) either the Court of Session or the High Court of Justice in Northern Ireland if the transferor company or the transferee company is registered or has its head office in Scotland and the other such company is registered or has its head office in Northern Ireland;
“direct insurance” means insurance other than reinsurance.
Procedure with respect to applications
2 (1) The court shall not determine an application under paragraph 1 above unless the petition is accompanied by a report on the terms of the scheme by an independent actuary and the court is satisfied that the requirements of sub-paragraph (2) below have been complied with.
(2) The said requirements are—
(a) that a notice stating that the application has been made and giving the address of the offices at which, and the period for which, copies of the documents mentioned in paragraph (d) below will be available as required by that paragraph has been published in the London, Edinburgh and Belfast Gazettes and, except where the court has otherwise directed—
(i) in two national newspapers in the United Kingdom;
(ii) where the transferor company is a UK or non-EC company and, as regards any policy included in the proposed transfer which evidences a contract of direct insurance, a member State other than the United Kingdom is the State of the commitment, in two national newspapers in that member State; and
(iii) where, as regards any EFTA policy included in the proposed transfer, an EEA State other than the United Kingdom is the State of the commitment, in two national newspapers in that EEA State;
(b) except where the court has otherwise directed, that a statement—
(i) setting out the terms of the scheme; and
(ii) containing a summary of the report mentioned in sub-paragraph (1) above sufficient to indicate the opinion of the actuary on the likely effects of the scheme on the long term policy holders of the companies concerned, has been sent to each of those policy holders and to every member of those companies;
(c) that a copy of the petition, of the report mentioned in sub-paragraph (1) above and of any statement sent out under paragraph (b) above has been served on the Treasury and that a period of not less than twenty-one days has elapsed since the date of service;
(d) that copies of the petition and of the report mentioned in sub-paragraph (1) above have been open to inspection—
(i) at offices in the United Kingdom of the companies concerned;
(ii) where the transferor company is a UK or non-EC company and, as regards any policy included in the proposed transfer which evidences a contract of direct insurance, a member State other than the United Kingdom is the State of the commitment, at such place in that member State as the court has directed; and
(iii) where, as regards any EFTA policy included in the proposed transfer, an EEA State other than the United Kingdom is the State of the commitment, at such place in that EEA State as the court has directed,
for a period of not less than twenty-one days beginning with the date of the first publication of a notice in accordance with paragraph (a) above;
(e) in the case of any such scheme as is mentioned in paragraph 1(2) above, that copies of the documents listed in paragraph 6(1) of Schedule 15B to the Companies Act or in paragraph 6(1) of Schedule 15B to the Companies (Northern Ireland) Order 1986 had been served on the Treasury by the beginning of the period referred to in paragraph 3(e) of that Schedule.
(3) Each of the companies concerned shall, on payment of such fee as may be prescribed by rules of court, furnish a copy of the petition and of the report mentioned in sub-paragraph (1) above to any person who asks for one at any time before an order sanctioning the scheme is made on the petition.
(4) On any petition under paragraph 1 above, the following shall be entitled to be heard, namely—
(a) the Treasury, and
(b) any person (including any employee of the transferor company or the transferee company) who alleges that he would be adversely affected by the carrying out of the scheme.
(5) A policy which evidences a contract of direct insurance is an “EFTA policy” for the purposes of this Part of this Schedule if—
(a) it covers a commitment situated in an EFTA State and the transferee company is a UK or EC company or a non-EC company whose head office is in an EFTA State; or
(b) it covers a commitment situated in a member State and the transferor company or the transferee company is a non-EC company whose head office is in an EFTA State.
(6) Where the transferee company is an incorporated friendly society or registered friendly society authorised under Part IV of the Friendly Societies Act 1992 , sub-paragraphs (2)(c) and (e) and (4)(a) above shall have effect as if the reference to the Treasury included a reference to the Friendly Societies Commission.
Determination of applications
3 (1) Where the transferor company is a UK or non-EC company and any policy included in the proposed transfer evidences a contract of direct insurance, the court shall not make an order sanctioning the scheme unless—
(a) it is satisfied that the transferee company is, or will be immediately after the making of the order—
(i) authorised under section 3 or 4 above to carry on, or
(ii) authorised in accordance with Article 6 of the first long-term insurance Directive to carry on in an EEA State other than the United Kingdom,
long term business of the class or classes to be transferred under the scheme;
(b) the relevant authority certifies that the transferee company possesses the necessary margin of solvency after taking the proposed transfer into account; and
(c) where the transferor company is a UK company and the establishment from which the policies are to be transferred is situated in a member State other than the United Kingdom, the Treasurycertify—
(i) that the supervisory authority in that member State has been consulted about the proposed scheme; and
(ii) either that the authority has responded or that the period of three months beginning with the consultation has elapsed.
(2) Where sub-paragraph (1) above applies and, as regards any policy (other than an EFTA policy) which is included in the proposed transfer and evidences a contract of direct insurance, a member State other than the United Kingdom is the State of the commitment, the court shall not make an order sanctioning the scheme unless the Treasurycertify—
(a) that the supervisory authority in that member State has been notified of the proposed scheme; and
(b) either that the authority has consented to the scheme or that the authority has not refused its consent to the scheme within the period of three months beginning with the notification.
(3) Where sub-paragraph (1) above applies, the establishment of the transferee company to which the policies are to be transferred is situated in the United Kingdom and, as regards any ETFA policy included in the proposed transfer, an EEA State other than the United Kingdom is the State of the commitment, the court shall not make an order sanctioning the scheme unless the Treasurycertify that—
(a) the transferee company fulfils the conditions in Articles 11, 12, 14 and 16 of the second long term insurance Directive in that EEA State; and
(b) the supervisory authority in that EEA State agrees to the transfer.
(4) Where sub-paragraph (1) above applies, the establishment of the transferee company to which the policies are to be transferred is situated in an EEA State other than the United Kingdom and, as regards any ETFA policy included in the proposed transfer, an EEA State is the State of the commitment, the court shall not make an order sanctioning the scheme unless—
(a) where the EEA State in which the establishment is situated is also the State of the commitment, the Treasurycertify that the supervisory authority in that EEA State agrees to the transfer;
(b) where the United Kingdom is the State of the commitment the Treasurycertify that—
(i) the transferee company is not precluded by Schedule 2F to this Act from covering the commitment; and
(ii) the supervisory authority in the EEA State in which the establishment is situated agrees to the transfer;
(c) where an EEA State other than the United Kingdom or the EEA State in which the establishment is situated is the State of the commitment, the Treasurycertifythat—
(i) the transferee company fulfils the conditions in Articles 11, 12, 14 and 16 of the second long term insurance Directive in the EEA State which is the State of the commitment;
(ii) the law of that State provides for the possibility of such a transfer; and
(iii) the supervisory authority in that State agrees to the transfer.
(5) Where the transferor company is not a UK or non-EC company or any policy included in the proposed transfer evidences a contract of reinsurance, the court shall not make an order sanctioning the scheme unless it is satisfied that the transferee company is, or will be immediately after the making of the order—
(a) authorised under section 3 or 4 above to carry on, or
(b) an EC company which is not precluded by Part I of Schedule 2F to this Act from carrying on,
long term business of the class or classes to be transferred under the scheme.
(6) In this paragraph “the relevant authority” means—
(a) if the transferee company is a UK company, the Treasury;
(b) if the transferee company is an EC company, the supervisory authority in its home State;
(c) if the transferee company is a non-EC company whose head office is in an EFTA State, the supervisory authority in that EFTA State;
(d) if the transferee company does not fall within paragraphs (a) to (c) above, the Treasury or other authority which, in accordance with Article 29 or 30 of the first long term insurance Directive, is responsible for supervising the company’s margin of solvency.
(7) Where the transferee company is an incorporated friendly society or registered friendly society authorised under Part IV of the Friendly Societies Act 1992—
(a) sub-paragraphs (1)(a) and (5)(a) above shall have effect as if the reference to section 3 or 4 above were a reference to that Part of that Act; and
(b) sub-paragraph (1)(b) above shall have effect as if the relevant authority for the purposes of this paragraph were the Friendly Societies Commission.
Rights of policy holders
4 (1) This paragraph applies where the court makes an order under this Part of this Schedule sanctioning a scheme and either—
(a) the transferor company is a UK or non-EC company and, as regards any policy included in the transfer which evidences a contract of direct insurance, a member State other than the United Kingdom is the State of the commitment; or
(b) as regards any EFTA policy included in the transfer, an EEA State other than the United Kingdom is the State of the commitment.
(2) The court shall direct that—
(a) notice of the making of any order, or the execution of any instrument, giving effect to the transfer shall be published in the member State or, as the case may be, the EEA State which is the State of the commitment; and
(b) the notice shall specify the period during which the policy holder may exercise any right to cancel the policy;
and the instrument or order shall not bind the policy holder if either such a notice is not so published or the policy holder exercises any such right during the period so specified.
(3) The law of the member State or, as the case may be, the EEA State which is the State of the commitment shall determine—
(a) whether the policy holder has a right to cancel the policy; and
(b) the conditions applicable to any such right.
Supplementary provisions
5 (1) Where the court makes an order under this Part of this Schedule sanctioning a scheme the court may, either by that order or by any subsequent order, make provision for all or any of the following matters—
(a) the transfer to the transferee company of the whole or any part of the undertaking and of the property or liabilities of the transferor company;
(b) the allotting or appropriation by the transferee company of any shares, debentures, policies or other like interests in that company which under the scheme are to be allotted or appropriated by that company to or for any person;
(c) the continuation by or against the transferee company of any legal proceedings pending by or against the transferor company;
(d) the dissolution, without winding up, of the transferor company;
(e) such incidental, consequential and supplementary matters as are necessary to secure that the scheme shall be fully and effectively carried out.
(2) Where any such order provides for the transfer of property or liabilities, that property shall, by virtue of the order, be transferred to and vest in, and those liabilities shall, by virtue of the order, be transferred to and become the liabilities of, the transferee company, and in the case of any property, if the order so directs, freed from any mortgage or charge which is by virtue of the scheme to cease to have effect.
(3) Where the transferor company is a UK or non-EC company, it is immaterial for the purposes of sub-paragraphs (1)(a), (c) and (e) and (2) above that the law applicable to any of the contracts of direct insurance included in the transfer is the law of an EEA State other than the United Kingdom.
(4) For the purposes of any provision requiring the delivery of an instrument of transfer as acondition for the registration of a transfer of any property, including in particular—
(a) section 183(1) of the Companies Act and section 56(4) of the Finance Act 1946 ; and
(b) Article 193(1) and (2) of the Companies (Northern Ireland) Order 1986 and section 27(4) of the Finance (No 2) Act (Northern Ireland) 1946 ,
an order which by virtue of this paragraph operates to transfer any property shall be treated as an instrument of transfer.
(5) Where a scheme is sanctioned by an order of the court under this Part of this Schedule, the transferee company shall, within ten days from the date on which the order is made or such longer period as the Treasury may allow, deposit two office copies of the order with the Treasury.
(6) In this paragraph “property” includes property, rights and powers of every description, “liabilities” includes duties and “shares” and “debentures” have the same meaning as in the Companies Act or the Companies (Northern Ireland) Order 1986.
PART II TRANSFERS OF GENERAL BUSINESS
Approval of Secretary of State required
6 (1) Where it is proposed to execute an instrument by which an insurance company to which this Part of this Act applies (“the transferor”) is to transfer to another body (“the transferee”) all its rights and obligations under such general policies, or general policies of such descriptions as may be specified in the instrument, and—
(a) where the transferor is a UK company, the performance by it of the obligations proposed to be transferred constitutes the carrying on of insurance business in one or more member States; or
(b) where the transferor is not a UK company, the performance by it of the obligations proposed to be transferred constitutes the carrying on of insurance business in the United Kingdom,
the transferor may apply to the Treasury for their approval of the transfer.
(2) Any notice or other document authorised or required to be given or served under this Partof this Schedule may, without prejudice to any other method of service, be served by post; and a letter containing the notice or other document shall be deemed to be properly addressed if it is addressed to that person at his last known residence or last known place of business in the United Kingdom.
(3) In this Part of this Schedule—
“direct insurance” means insurance other than reinsurance;
“general policy” means a policy evidencing a contract the effecting of which constitutes the carrying on of general business.
Procedure with respect to applications
7 (1) The Treasury shall not determine an application made under paragraph 6 above unless they are satisfied that—
(a) a notice approved by the Treasury for the purpose has been published in the London, Edinburgh and Belfast Gazettes and, if they think fit—
(i) in two national newspapers in the United Kingdom which have been so approved;
(ii) where the transferor is a UK or non-EC company and, as regards any policy included in the proposed transfer which evidences a contract of direct insurance, the risk is situated in a member State which is not the United Kingdom, in two national newspapers in that member State; and
(iii) where, as regards any EFTA policy included in the proposed transfer, an EEA State other than the United Kingdom is the EEA State in which the risk is situated, in two national newspapers in that EEA State;
(b) except in so far as he has otherwise directed, a copy of the notice has been sent to every affected policy holder and every other person who claims an interest in a policy included in the proposed transfer and has given written notice of his claim to the transferor; and
(c) copies of a statement setting out particulars of the transfer and approved by the Treasury for the purpose have been available for inspection—
(i) at one or more places in the United Kingdom;
(ii) where the transferor is a UK or non-EC company and, as regards any policy included in the proposed transfer which evidences a contract of direct insurance, the risk is situated in a member State which is not the United Kingdom, at one or more places in that member State; and
(iii) where, as regards any EFTA policy included in the proposed transfer, an EEA State other than the United Kingdom is the EEA State in which the risk is situated, at one or more places in that EEA State,
for a period of not less than thirty days beginning with the date of the first publication of the notice in accordance with paragraph (a) above.
(2) The notice referred to in sub-paragraph (1) above shall include a statement that written representations concerning the transfer may be sent to the Treasury before a specified day, which shall not be earlier than sixty days after the day of the first publication of the notice in accordance with sub-paragraph (1)(a) above; and the Treasury shall not determine the application until after considering any representations made to them before the specified day.
(3) For the purposes of this paragraph a policy holder is an “affected policy holder” in relation to a proposed transfer if—
(a) his policy is included in the transfer, or
(b) his policy is with the transferor and the Treasuryhavecertified, after consulting the transferor, that in the opinion of the Treasury the policy holder’s rights and obligations under the policy will or may be materially affected by the transfer.
(4) A policy which evidences a contract of direct insurance is an “EFTA policy” for the purposes of this Part of this Schedule if—
(a) it covers a risk situated in an EFTA State and the transferee is a UK or EC company or a non-EC company whose head office is in an EFTA State; or
(b) it covers a risk situated in a member State and the transferor company or the transferee is a non-EC company whose head office is in an EFTA State.
(5) Where the transferor is a UK or non-EC company and the transferee is an incorporated friendly society or registered friendly society authorised under Part IV of the Friendly Societies Act 1992, sub-paragraph (1)(b) shall have effect as if the reference to every affected policy holder included a reference to the Friendly Societies Commission.
Determination of applications
8 (1) Where the transferor is a UK or non-EC company and any policy included in the proposed transfer evidences a contract of direct insurance, the Treasury shall not approve the transfer unless—
(a) they are satisfied that the transferee is, or will be immediately after the approval—
(i) authorised under section 3 or 4 above to carry on, or
(ii) authorised in accordance with Article 6 of the first general insurance Directive to carry on in an EEA State other than the United Kingdom,
general business of the class or classes to be transferred by the instrument;
(b) they are also satisfied that every policy included in the transfer evidences a contract which was entered into before the date of the application;
(c) the relevant authority certifies that the transferee possesses the necessary margin of solvency after taking the proposed transfer into account; . . .
(d) where the transferor is a UK company and the establishment from which the policies are to be transferred is situated in a member State other than the United Kingdom, the Treasuryare satisfied
(i) that the supervisory authority in that member State has been consulted about the proposed transfer; and
(ii) either that the authority has responded or that the period of three months beginning with the consultation has elapsed.
(e) in the opinion of the Treasury the circumstances of the case justify the giving of their approval
(2) Where sub-paragraph (1) above applies and, as regards any policy (other than an EFTA policy) which is included in the proposed transfer and evidences a contract of direct insurance, the risk is situated in a member State other than the United Kingdom, the Treasury shall not approve the transfer unless they are satisfied—
(a) that the supervisory authority in that member State has been notified of the proposed transfer;
(b) either that the authority has consented to the transfer or that the authority has not refused its consent to the transfer within the period of three months beginning with the notification.
(3) Where sub-paragraph (1) above applies, the establishment of the transferee to which the policies are to be transferred is situated in the United Kingdom and, as regards any EFTA policy included in the proposed transfer, an EEA State other than the United Kingdom is the State in which the risk is situated, the Treasury shall not approve the transfer unless they are satisfied that—
(a) the transferee either fulfils the conditions in Articles 13 to 16 of the second general insurance Directive in that EEA State or will be participating, by virtue of the transfer of that policy, in a Community co-insurance operation otherwise than as the leading insurer; and
(b) the supervisory authority in that EEA State agrees to the transfer.
(4) Where sub-paragraph (1) above applies, the establishment of the transferee to which the policies are to be transferred is situated in an EEA State other than the United Kingdom and, as regards any EFTA policy included in the proposed transfer, an EEA State . . . is the State in which the risk is situated, the Treasury shall not approve the transfer unless—
(a) where the EEA State in which the establishment is situated is also the State in which the risk is situated, they are satisfied that the supervisory authority in that EEA State agrees to the transfer;
(b) where the United Kingdom is the State in which the risk is situated, they are satisfied that—
(i) the transferee is not precluded by Schedule 2F to this Act from covering the risk; and
(ii) the supervisory authority in the EEA State in which the establishment is situated agrees to the transfer;
(c) where an EEA State other than the United Kingdom or the EEA State in which the establishment is situated is the State in which the risk is situated, they are satisfied that—
(i) the transferee either fulfils the conditions in Articles 13 to 16 of the second general insurance Directive in the EEA State in which the risk is situated or will be participating, by virtue of the transfer of that policy, in a Community co-insurance operation otherwise than as the leading insurer;
(ii) the law of that State provides for the possibility of such a transfer; and
(iii) the supervisory authority in that State agrees to the transfer.
(5) Where the transferor company is not a UK or non-EC company or any policy included in the proposed transfer evidences a contract of reinsurance, the Treasury shall not approve the transfer on an application under paragraph 6 above unless they are satisfied that —
(a) the transferee is, or will be immediately after the approval—
(i) authorised under section 3 or 4 above to carry on; or
(ii) an EC company which is not precluded by Part I of Schedule 2F to this Act from carrying on,
general business of the class or classes to be transferred by the instrument; and
(b) every policy included in the transfer evidences a contract which was entered into before the date of the application,
and in their opinion the transferee’s financial resources and the other circumstances of the case justify the giving of their approval.
(6) Where the Treasury determines an application under paragraph 6 above, theyshall—
(a) publish a notice of their decision in the London, Edinburgh and Belfast Gazettes and in such other manner as they may think fit, and
(b) send a copy of that notice to the transferor, the transferee and every person who made representations in accordance with the notice referred to in paragraph 7(1) above;
and if theyrefuse the application he shall inform the transferor and the transferee in writing of the reasons for their refusal.
(7) In this paragraph “the relevant authority” means—
(a) if the transferee is a UK company, the Treasury;
(b) if the transferee is an EC company, the supervisory authority in its home State;
(c) if the transferee is a non-EC company whose head office is in an EFTA State, the supervisory authority in that EFTA State;
(d) if the transferee is a Swiss general insurance company, the supervisory authority in Switzerland;
(e) if the transferee does not fall within paragraphs (a) to (d) above, the Treasury or other authority which, in accordance with Article 25 or 26 of the first general insurance Directive, is responsible for supervising the transferee’s margin of solvency.
(8) Where the transferor is a UK or non-EC company and the transferee is an incorporated friendly society or registered friendly society authorised under Part IV of the Friendly Societies Act 1992—
(a) sub-paragraphs (1)(a) and (5)(a) above shall have effect as if the reference to section 3 or 4 above were a reference to that Part of that Act; and
(b) sub-paragraph (1)(c) above shall have effect as if the relevant authority for the purposes of this paragraph were the Friendly Societies Commission.
Rights of policy holders
9 (1) This paragraph applies where the Treasuryapprove an application made under paragraph 6 above and either—
(a) the transferor is a UK or non-EC company and, as regards any policy included in the transfer which evidences a contract of direct insurance, a member State other than the United Kingdom is the member State in which the risk is situated; or
(b) as regards any EFTA policy included in the transfer, an EEA State other than the United Kingdom is the EEA State in which the risk is situated.
(2) The Treasury shall direct that—
(a) notice of theirdecision, and of the execution of any instrument giving effect to the transfer, shall be published in the member State or, as the case may be, the EEA State in which the risk is situated; and
(b) the notice shall specify the period during which the policy holder may exercise any right to cancel the policy;
and the instrument shall not bind the policy holder if either such a notice is not so published or the policy holder exercises any such right during the period so specified.
(3) The law of the member State or, as the case may be, the EEA State in which the risk is situated shall determine—
(a) whether the policy holder has a right to cancel the policy; and
(b) the conditions applicable to any such right.
Effect of approval of Secretary of State
10 (1) Subject to paragraph 9(2) above, an instrument giving effect to a transfer approved by the Treasury under this Part of this Schedule shall be effectual in law—
(a) to transfer to the transferee all the transferor’s rights and obligations under the policies included in the instrument, and
(b) if the instrument so provides, to secure the continuation by or against the transferee of any legal proceedings by or against the transferor which relate to those rights or obligations, notwithstanding the absence of any agreements or consents which would otherwise be necessary for it to be effectual in law for those purposes.
(2) Where the transferor is a UK or non-EC company, it is immaterial for the purposes of sub-paragraph (1) above that the law applicable to any of the contracts of direct insurance included in the transfer is the law of an EEA State other than the United Kingdom.
(3) Except in so far as the Treasury may otherwise direct, a policy holder whose policy is included in such an instrument shall not be bound by it unless he has been given written notice of its execution by the transferor or the transferee.
[SCHEDULE 2D] FURTHER PROVISIONS WITH RESPECT TO CONTROLLERS OF UK COMPANIES
Provisions supplementing sections 60 to 61A
1 (1) This paragraph applies where—
(a) a UK company which proposes to appoint a person as managing director or chief executive of the company;
(b) a person who proposes to become a controller of such a company; or
(c) a person who is a controller of such a company and who proposes to acquire a notifiable holding in the company,
has served notice on the Treasury under subsection (1)(a) of section 60, 61 or 61A above (“the relevant section”).
(2) The Treasury may by notice in writing require the person serving the notice or, in a case falling within sub-paragraph (1)(a) above, the person proposed to be appointed to provide such additional information or documents as the Treasury may reasonably require for the purpose of deciding whether to serve—
(a) a notice of objection under the relevant section; or
(b) a notice imposing conditions under paragraph 3 below.
(3) Where additional information or documents are required from any person by a notice under sub-paragraph (2) above, the time between the giving of that notice and the receipt of the information or documents shall be added to the period mentioned in subsection (1)(b) of the relevant section.
(4) The notice shall be of no effect for the purposes of subsection (1) of the relevant section ifeither the notice is withdrawn or—
(a) in the case of a notice under section 60(1)(a) above, the person proposed to be appointed as managing director or chief executive of the company is not so appointed;
(b) in the case of notice under section 61(1)(a) above, the person by whom it was served does not become a controller of the company; or
(c) in the case of notice under section 61A(1)(a) above, the person by whom it was served does not acquire the holding specified in the notice,
before the end of the period of one year beginning with the date mentioned in sub-paragraph (5) below.
(5) The date referred to in sub-paragraph (4) above is as follows—
(a) in a case where the Treasuryhave, before the end of the period mentioned in subsection (1)(b) of the relevant section, given to the person serving the notice such a notification as is mentioned in that provision, the date of that notification;
(b) in a case where the Treasuryhave, before the end of that period, served a notice imposing conditions on that person in accordance with paragraph 3 below, the date of the service of that notice; and
(c) in any other case, the date immediately following the end of that period.
(6) The period mentioned in subsection (1)(b) of the relevant section shall be deemed not to expire until fourteen days after the end of the period within which representations may be made in accordance with that section.
Notice of objection where requisite notice not given
2 (1) This paragraph applies where—
(a) a UK company appoints a person as managing director or chief executive of the company;
(b) a person becomes a controller of such a company otherwise than by virtue of an appointment in relation to which section 60 above has effect; or
(c) a person who is a controller of such a company acquires a notifiable holding in the company,
in contravention of subsection (1)(a) of section 60, 61 or 61A above; and references in this paragraph to the person in breach shall be construed accordingly.
(2) The Treasury—
(a) may serve the person in breach with a notice of objection at any time within three months after they become aware of the contravention; and
(b) for the purpose of deciding whether to serve the person in breach with such a notice or with a notice imposing conditions under paragraph 3 below, may require that person by notice in writing to provide such information or documents as the Treasury may reasonably require.
(3) Before serving a notice of objection under sub-paragraph (2) above, the Treasury shall serve on the person in breach and, in a case falling within sub-paragraph (1)(a) above, on the person appointed as managing director or chief executive a preliminary written notice—
(a) stating that the Treasury are considering serving a notice of objection on the person in breach; and
(b) specifying the matters mentioned in sub-paragraph (5) below as respects which the Treasury are not satisfied.
(4) A person served with a preliminary notice under sub-paragraph (3) above may, within the period of one month from the date of service of that notice—
(a) make written representations to the Treasury; and
(b) if that person so requests, oral representations to an officer of the Treasury appointed for that purpose by the Treasury.
(5) The Treasury shall not serve a notice of objection under sub-paragraph (2) above unless it appears to them—
(a) that the person appointed is or may not be a fit and proper person to be the managing director or chief executive of the company or, as the case may be, that the person in breach is not or may not be a fit and proper person to be a controller of the company or to retain the notifiable holding in the company; or
(b) that the interests of policy holders and potential policy holders of the company are or may in some other manner be jeopardised by that person’s ability to influence the company.
(6) Where representations are made in accordance with this paragraph the Treasuryshall take them into consideration before serving a notice of objection.
(7) The Treasury shall not be obliged to disclose to the person in breach any particulars of the ground on which they are considering the service of a notice of objection.
(8) The period mentioned in sub-paragraph (2)(a) above shall be deemed not to expire until fourteen days after the end of the period within which representations may be made in accordance with this paragraph.
(9) After a notice of objection has been served on a company in relation to a person who is a managing director or chief executive, the company shall forthwith remove that person from that office.
Notices imposing conditions
3 (1) This paragraph applies where either—
(a) paragraph 1 above applies and the Treasuryare entitled to serve a notice of objection under the relevant section; or
(b) paragraph 2 above applies;
and in this paragraph expressions which are also used in paragraph 1 or 2 above have the same meanings as in that paragraph.
(2) If, in a case falling within sub-paragraph (1)(a) above, the Treasuryconsider that, if certain conditions were complied with—
(a) by the person serving the notice under subsection (1)(a) of the relevant section; or
(b) where the notice is under section 60(1)(a) above, by the person proposed to be appointed as managing director or chief executive,
the criteria of sound and prudent management would continue to be or, as the case may be, would be fulfilled in respect of the company, the Treasury may, instead of serving a notice of objection under the relevant section, serve a notice requiring the conditions in question to be complied with by that person (“the person concerned”).
A notice under this sub-paragraph shall be served—
(a) on the person concerned, and
(b) where that person is proposed to be appointed as managing director or chief executive, on the company.
(3) If, in a case falling within sub-paragraph (1)(b) above, the Treasuryconsider that,if certain conditions were complied with—
(a) by the person in breach; or
(b) where the contravention is of section 60(1)(a) above, by the person appointed as managing director or chief executive,
the criteria of sound and prudent management would continue to be or, as the case may be, would be fulfilled in respect of the company, the Treasury may, instead of serving a notice of objection under paragraph 2 above, serve a notice requiring the conditions in question to be complied with by that person (“the person concerned”).
A notice under this sub-paragraph shall be served—
(a) on the person concerned, and
(b) where that person has been appointed as managing director or chief executive, on the company.
(4) Before serving a notice under sub-paragraph (2) or (3) above, the Treasury shall serve on the person concerned and, where that person is proposed to be or has been appointed as managing director or chief executive, on the company a preliminary written notice stating—
(a) that the Treasuryare considering serving a notice under that sub-paragraph;
(b) the conditions which would be required by such a notice to be complied with by the person concerned;
(c) the criteria of sound and prudent management which the Treasury consider would not be fulfilled in respect of the company if they served neither such a notice nor a notice of objection under subsection (1)(a) of the relevant section or, as the case may be, paragraph 2 above; and
(d) that the person on whom the preliminary notice is served may, within the period of one month from the date of service of that notice—
(i) make written representations to the Treasury; and
(ii) if that person so requests, oral representations to an officer of the Treasury appointed for the purpose by the Treasury.
(5) Where representations are made in accordance with this paragraph the Treasury shall take them into consideration before serving a notice under sub-paragraph (2) or (3) above.
(6) The Treasury shall not be obliged to disclose—
(a) to the person concerned; or
(b) where that person is proposed to be or has been appointed as managing director or chief executive, to the company,
any particulars of the ground on which they are considering the service of a notice under sub-paragraph (2) or (3) above or a notice of objection under the relevant section or, as the case may be, paragraph 2 above.
Objection to existing controller
4 (1) Where it appears to the Treasury that the criteria of sound and prudent management are not or may not be fulfilled in respect of a UK company by reason of the ability of a person who is a controller of the company to influence the company, the Treasury may—
(a) where that person is the managing director or chief executive, serve on the company; and
(b) in any other case, serve on that person,
a written notice of objection to that person continuing to be a controller of the company.
(2) Before serving a notice of objection under this paragraph, the Treasury shall serve—
(a) on the person concerned; and
(b) where that person is the managing director or chief executive, on the company, a preliminary written notice stating that the Treasuryare considering serving a notice of objection under this paragraph.
(3) A notice under sub-paragraph (2) above shall—
(a) give particulars of the rights conferred by sub-paragraph (4) below; and
(b) specify the criteria of sound and prudent management which are not or may not be fulfilled in respect of the company.
(4) A person served with a notice under sub-paragraph (2) above may, within the period of one month beginning with the day on which the notice is served—
(a) make written representations to the Treasury; and
(b) if that person so requests, oral representations to an officer of the Treasury appointed for the purpose by the Treasury.
(5) Where representations are made in accordance with this paragraph, the Treasury shall take them into consideration before serving a notice of objection.
(6) The Treasuryshall not be obliged to disclose to the person concerned or to the company any particulars of the ground on which they are considering the service of a notice of objection.
(7) After a notice of objection has been served on a company in relation to a person who is a managing director or chief executive, the company shall forthwith remove that person from that office.
Restrictions etc. as respects shareholdings
5 (1) This paragraph applies where a person—
(a) has contravened section 61 or 61A above by becoming a shareholder controller of a UK company, or by acquiring a notifiable holding in such a company;
(b) having become such a controller or acquired such a holding in contravention of section 61 or 61A above, continues to be such a controller or to retain that holding after being served with a notice of objection under paragraph 2 above;
(c) having been served with a notice imposing conditions under paragraph 3 above in a case where—
(i) a notice of objection to his becoming such a controller or acquiring such a holding would otherwise have been served under section 61 or 61A above, or
(ii) a notice of objection to his continuing to be such a controller or retaining such a holding would otherwise have been served under paragraph 2 above,
has failed to comply with any of the conditions specified in the notice under paragraph 3 above; or
(d) having been served with a notice of objection under paragraph 4 above to his continuing to be such a controller,
continues to be such a controller; and references in this paragraph to the person in breach shall be construed accordingly.
(2) The Treasury may by notice in writing served on the person in breach direct that any specified shares to which this paragraph applies shall, until further notice, be subject to one or more of the following restrictions—
(a) any transfer of or agreement to transfer the shares, or (in the case of unissued shares) any transfer of or agreement to transfer the right to be issued with the shares, shall be void;
(b) no voting rights shall be exercisable in respect of the shares;
(c) no further shares shall be issued in right of the shares or in pursuance of any offer made to the holder of the shares;
(d) except in a liquidation, no payment shall be made of any sums due from the company in respect of the shares, whether by way of a repayment of capital or otherwise.
(3) The court may, on the application of the Treasury, by order direct that any specified shares to which this paragraph applies—
(a) shall be sold; and
(b) if they are for the time being subject to any restrictions under sub-paragraph (2) above, shall cease to be subject to those restrictions.
(4) Where an order has been made under sub-paragraph (3) above the court may, on the application of the Treasury, make such further order relating to the sale or transfer of the shares as it thinks fit.
(5) Where the shares are sold in pursuance of an order under this section—
(a) the net proceeds of the sale shall be paid into court for the benefit of persons beneficially interested in them; and
(b) any such person may apply to the court for the whole or any part of the proceeds to be paid to him.
(6) This paragraph applies to—
(a) all shares in the company which—
(i) are held by the person in breach; and
(ii) were not so held immediately before he became a shareholder controller of the company or, as the case may be, acquired a notifiable holding in the company; and
(b) where the person in breach became such a controller or acquired such a holding as a result of the acquisition by him of shares or voting rights in another company, all shares in that company which—
(i) are held by him; and
(ii) were not so held immediately before he became such a controller or acquired such a holding.
(7) Sub-paragraph (6) above shall have effect as if references to the person in breach acquiring a notifiable holding in the company were—
(a) in a case falling within paragraph (a), (b) or (c)(ii) of sub-paragraph (1) above, references to his doing so in contravention of section 61 or 61A above; and
(b) in a case falling within paragraph (c)(i) of sub-paragraph (1) above, references to his doing so after the service of the notice imposing conditions under paragraph 3 above.
(8) A copy of the notice served on the person in breach under sub-paragraph (2) above shall be served on the company to whose shares or voting rights it relates.
(9) The jurisdiction conferred by this paragraph shall be exercisable by the High Court and theCourt of Session.
[SCHEDULE 2E] INFORMATION FOR POLICY HOLDERS OF UK INSURERS AND EC COMPANIES
Information before contract of long term insurance
1 (1) Subject to sub-paragraph (2) and paragraph 5 below, this paragraph applies to a contract entered into by a UK or EC company or a member of Lloyd’s the effecting of which constitutes—
(a) the carrying on in the United Kingdom of long term business which is not reinsurance business; or
(b) the provision there of long term insurance.
(2) This paragraph does not apply to a contract entered into by an authorised person the effecting of which constitutes the carrying on in the United Kingdom of investment business; and in this sub-paragraph expressions which are also used in the Financial Services Act 1986 have the same meanings as in that Act.
(3) Before entering into a contract to which this paragraph applies, the company or member (“the insurer”) shall furnish the other party to the contract in writing with the information required by sub-paragraph (4) below and—
(a) in the case of a company, the information required by sub-paragraph (5) below; and
(b) in the case of a member, the information required by sub-paragraph (6) below.
(4) The information required by this sub-paragraph is—
(a) a definition of each benefit and option;
(b) the term of the contract and the means by which it may be terminated;
(c) the method of paying premiums and the duration of the payments;
(d) the method of calculating bonuses and the distribution of bonuses;
(e) an indication of surrender and paid-up values and the extent to which such values are guaranteed;
(f) an indication of the premiums for each benefit, whether a main or supplementary benefit;
(g) in the case of a contract for a unit-linked policy, a definition of the units to which benefits are linked and an indication of the nature of the underlying assets;
(h) information as to the following, namely—
(i) the arrangements with respect to the period within which the policy holder may cancel the contract;
(ii) the tax arrangements applicable to the policy to be effected by the contract;
(iii) the arrangements for handling any complaints concerning the contract, whether by the other party or any other person who is a life assured or beneficiary; and
(iv) any compensation or guarantee arrangements which will be available if the insurer is unable to meet its liabilities under the contract; and
(i) whether the parties to the contract are entitled to choose the law applicable to the contract and—
(i) if so, the law which the insurer proposes to choose; and
(ii) if not, the law which will be so applicable.
(5) The information required by this sub-paragraph is—
(a) the name and legal form of the company;
(b) the company’s home State and, where appropriate, the member State of the branch through which the contract is to be entered into; and
(c) the address of the company’s head office and, where appropriate, the address of the branch through which the contract is to be entered into.
(6) The information required by this sub-paragraph is—
(a) the name or number of the syndicate which is to enter into the contract and a statement that it is a syndicate of members of Lloyd’s;
(b) a statement that the syndicate’s home State is the United Kingdom and, where appropriate, the member State of the branch through which the contract is to be entered into; and
(c) the address of the syndicate in the United Kingdom and, where appropriate, the address of the branch through which the contract is to be entered into.
(7) Any information required by sub-paragraph (4), (5) or (6) above shall be furnished in English except that, where the other party to the contract so requests, it may instead be furnished in an official language of a member State other than the United Kingdom.
Information during contract of long term insurance
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Information before contract of general insurance
3 (1) This paragraph applies to a contract entered into by a UK or EC company or a member of Lloyd’s if—
(a) the effecting of the contract constitutes—
(i) the carrying on in the United Kingdom of general business which is not reinsurance business; or
(ii) the provision there of general insurance; and
(b) the risk covered by the contract is situated in the United Kingdom.
(2) Before entering into a contract to which this paragraph applies, the company or member (“the insurer”) shall, if the other party (or one of the other parties) to the contract is an individual, inform that party in writing—
(a) of any arrangements which exist for handling complaints concerning the contract including, where appropriate, the name and address of any body which deals with complaints from any party to the contract;
(b) that the existence of a complaints body does not affect any right of action which any party to the contract may have against the insurer; and
(c) as to whether the parties to the contract are entitled to choose the law applicable to the contract and—
(i) if so, of the law which the insurer proposes to choose; and
(ii) if not, of the law which will be so applicable.
(3) If the information required by sub-paragraph (2) above is furnished otherwise than in writing before the time when the contract is entered into, there is a sufficient compliance with that sub-paragraph if it is also furnished in writing as soon as practicable after that time.
4 (1) Subject to sub-paragraph (2) below, this paragraph applies to a contract to which paragraph 3 above applies.
(2) This paragraph does not apply to a contract entered into by a UK company or a member of Lloyd’s unless the effecting of the contract constitutes the provision of general insurance in the United Kingdom.
(3) Before entering into a contract to which this paragraph applies, the UK or EC company or the member of Lloyd’s (“the insurer”) shall, unless the contract is for the coverage of large risks only, inform the other party to the contract in writing of the member State in which is situated the establishment which will cover the risks; and any document issued to that party by the insurer shall also contain that information.
(4) If the information required by sub-paragraph (3) above is furnished otherwise than in writing before the time when the contract is entered into, there is a sufficient compliance with that sub-paragraph if it is also furnished in writing as soon as practicable after that time.
(5) Any relevant document issued by the insurer in relation to a contract to which this paragraph applies shall state—
(a) the address of the establishment through which the risk is to be covered; and
(b) where the contract relates to relevant motor vehicle risks and the effecting of the contract constitutes the provision of insurance in the United Kingdom, the name and address of the claims representative.
(6) In this paragraph “relevant document”, in relation to a contract to which this paragraph applies, means any proposal, policy or other document which, or statements contained in which, will or may bind the other party to the contract.
General
5 (1) In the case of a contract involving two or more other parties, this Schedule shall have effect as if a separate contract were being or had been entered into by the insurer with each of those parties.
(2) Paragraphs 1 and 2 of this Schedule shall not apply in relation to a contract unless the other party to the contract is habitually resident in the United Kingdom at the time when the contract is entered into.
(3) In this paragraph 'other party’, in relation to a contract, means a party to the contract other than the insurer.
SCHEDULE 2F] RECOGNITION IN THE UNITED KINGDOM OF EC AND EFTA COMPANIES
PART I EC COMPANIES CARRYING ON BUSINESS ETC. IN THE UNITED KINGDOM
Requirements for carrying on direct insurance business
1 (1) An EC company shall not carry on direct insurance business of a class or part of a class through a branch in the United Kingdom unless—
(a) the company is authorised in accordance with Article 6 of the first general insurance Directive or Article 6 of the first long term insurance Directive to carry on insurance business of that class or part of a class; and
(b) the requirements of this paragraph have been complied with in respect of that branch.
(2) The requirements of this paragraph are—
(a) that the supervisory authority in the company’s home State has sent to the Treasury—
(i) a notice which contains the requisite details; and
(ii) a certificate in accordance with sub-paragraph (3) below; and
(b) that either—
(i) the Treasuryhave informed that authority of the conditions which, in the interest of the general good, must be complied with by the company in carrying on insurance business through the branch; or
(ii) the period of two months beginning with the day on which the Treasury received the notice and certificate mentioned in paragraph (a) above has elapsed.
(3) A certificate given in respect of the company by the supervisory authority in its home State is in accordance with this sub-paragraph if it—
(a) attests that the company has the minimum margin of solvency calculated in accordance with such of the following as are appropriate—
(i) Articles 16 and 17 of the first general insurance Directive, and
(ii) Articles 18, 19 and 20 of the first long term insurance Directive; and
(b) indicates the classes of business which the company is authorised to carry on in accordance with Article 6 of the first general insurance Directive or Article 6 of the first long term insurance Directive.
(4) The Treasury shall as soon as practicable—
(a) acknowledge receipt of the documents sent by the supervisory authority in the company’s home State; and
(b) where necessary, send a copy of those documents and a note of the date of their receipt to every other authority which they know is a connected UK authority.
(5) Any connected UK authority which receives any documents under sub-paragraph (4)(b) above shall, within one month of the date on which they were received, inform the Treasury in writing of such provisions of the Acts, rules and regulations applying to insurance companies which the authority regulates as, having regard to the insurance business mentioned in the documents, it considers appropriate.
2 (1) An EC company shall not change the requisite details of a branch—
(a) which has been established by it in the United Kingdom; and
(b) through which it carries on direct insurance business,
unless the requirements of this paragraph have been complied with in relation to its making of the change.
(2) Subject to sub-paragraph (3) below, the requirements of this paragraph are—
(a) that the company has given a notice to the Treasury, and to the supervisory authority in its home State, stating the details of the proposed change not less than one month before the change is to take place;
(b) that the Treasuryhave received from that authority a notice stating that it has approved the proposed change; and
(c) that either—
(i) the Treasuryhave informed that authority of any consequential changes in the conditions which, in the interest of the general good, must be complied with by the company in carrying on insurance business through the branch; or
(ii) the period of two months beginning with the day on which the company gave the Treasury the notice under paragraph (a) above has elapsed.
(3) In the case of a change occasioned by circumstances beyond the company’s control, the requirements of this paragraph are that the company shall as soon as practicable (whether before or after the change) give a notice to the Treasury, and to the supervisory authority in its home State, stating the details of the change.
(4) The Treasury shall as soon as practicable—
(a) acknowledge receipt of the documents sent under sub-paragraph (2) or (3) above;
(b) send a copy of those documents, and a note of the date of their receipt, to every other authority which they know is a connected UK authority; and
(c) in the case of a notice under sub-paragraph (3) above, inform the supervisory authority in the home State of any consequential changes in the conditions which, in the interest of the general good, must be complied with by the company in carrying on insurance business through the branch.
Requisite details for purposes of paragraphs 1 and 2
3 The requisite details for the purposes of paragraphs 1 and 2 above are—
(a) the name of the company;
(b) the address of the branch in the United Kingdom and confirmation that it is an address for service on the company’s authorised agent;
(c) the name of the company’s authorised agent;
(d) a scheme of operations prepared in accordance with such requirements as may be imposed by the supervisory authority in its home State; and
(e) in the case of a company which intends to cover relevant motor vehicle risks, confirmation that the company has become a member of the Motor Insurers’ Bureau (being a company limited by guarantee and incorporated under the Companies Act 1929 on 14th June 1946).
Requirements for carrying on reinsurance business
4 (1) An EC company shall not carry on reinsurance business of any description through a branch in the United Kingdom unless—
(a) the company is entitled under the law of its home State to carry on business of that description; and
(b) the requirements of this paragraph have been complied with in respect of that branch.
(2) The requirements of this paragraph are—
(a) that the company has served on the Treasury—
(i) a written notice stating its intention to carry on reinsurance business and containing the requisite details; and
(ii) a statement from the supervisory authority in its home State stating the classes of business which the company carries on and declaring that the company has the required margin of solvency or minimum guarantee fund; and
(b) that either—
(i) the Treasuryhave informed the company that it may begin to carry on the reinsurance business; or
(ii) the period of three months beginning with the date of service of that notice has expired.
5 (1) An EC company shall not change the requisite details of a branch—
(a) which has been established by it in the United Kingdom; and
(b) through which it carries on reinsurance business,
unless the requirements of this paragraph have been complied with in relation to its making of the change.
(2) Subject to sub-paragraph (3) below, the requirements of this paragraph are that the company has given a notice to the Treasury stating the details of the proposed change not less than one month before the change is to take place.
(3) In the case of a change occasioned by circumstances beyond the company’s control, the requirements of this paragraph are that the company shall as soon as practicable (whether before or after the change) give a notice to the Treasury stating the details of the change.
Requisite details for purposes of paragraphs 4 and 5
6 The requisite details for the purposes of paragraphs 4 and 5 above are—
(a) the name of the company;
(b) the address of the branch in the United Kingdom and confirmation that it is an address for service on the company’s authorised agent;
(c) the name of the company’s authorised agent;
(d) a scheme of operations containing particulars of the reinsurance business to be carried on through the branch.
Power of Secretary of State where notice given under paragraph 4 or 5
7 (1) This paragraph applies where the Treasuryreceive from an EC company a notice given in accordance with paragraph 4 or 5 above.
(2) The Treasury may, before the end of the period of three months beginning with the day on which they receive the notice, direct that Part II of this Act shall apply to the company.
(3) Before giving a direction under sub-paragraph (2) above, the Treasuryshall serve on the company a written notice stating—
(a) that they are considering giving a direction and particulars of the ground on which they are considering it; and
(b) that the company may, within the period of one month from the date of service of the notice, make written representations to the Treasury and, if the company so requests, oral representations to an officer of the Treasury appointed for the purpose by the Treasury.
(4) Where representations are made in response to a notice under sub-paragraph (3) above, the Treasury shall take them into account before giving a direction.
Requirements for providing insurance
8 (1) An EC company shall not provide insurance of a class or part of a class in the United Kingdom unless the company is authorised in accordance with Article 6 of the first general insurance Directive or Article 6 of the first long term insurance Directive to carry on insurance business of that class or part of a class and either—
(a) the requirements of this paragraph have been complied with in respect of that insurance; or
(b) the insurance is provided by the company participating in a Community co-insurance operation otherwise than as the leading insurer.
(2) The requirements of this paragraph are—
(a) that the supervisory authority in the company’s home State has sent to the Treasury a notice containing the requisite details and a certificate in accordance with sub-paragraph (3) below; and
(b) that the company has been notified by that authority that it has sent such a notice to the Treasury.
(3) A certificate is in accordance with this sub-paragraph if it—
(a) attests that the company has the minimum margin of solvency calculated in accordance with such of the following as are appropriate—
(i) Articles 16 and 17 of the first general insurance Directive, and
(ii) Articles 18, 19 and 20 of the first long term insurance Directive; and
(b) indicates the classes of business which the company is authorised to carry on in accordance with Article 6 of the first general insurance Directive or Article 6 of the first long term insurance Directive.
9 (1) An EC company shall not change the requisite details relating to the provision ofinsurance in the United Kingdom unless the requirements of this paragraph have been complied with in relation to its making of the change.
(2) Subject to sub-paragraph (3) below, the requirements of this paragraph are—
(a) that the company has given a notice to the supervisory authority in its home State stating the details of the proposed change; and
(b) that that authority has passed to the Treasury the information contained in that notice.
(3) In the case of a change occasioned by circumstances beyond the company’s control, the requirements of this paragraph are that the company shall, as soon as practicable, give a notice to the supervisory authority in its home State stating the details of the change.
Requisite details for purposes of paragraphs 8 and 9
10 The requisite details for the purposes of paragraph 8 and 9 are—
(a) the name and address of the company;
(b) the nature of the risks or commitments which the company proposes to cover in the United Kingdom; and
(c) in the case of a company which intends to cover relevant motor vehicle risks—
(i) the name and address of the claims representative, and
(ii) confirmation that the company has become a member of the Motor Insurers’ Bureau (being a company limited by guarantee and incorporated under the Companies Act 1929 on 14th June 1946).
Additional requirements for covering relevant motor vehicle risks
11 An EC company shall not provide insurance in the United Kingdom to cover relevant motorvehicle risks unless—
(a) it is a member of the Motor Insurers’ Bureau (being a company limited by guarantee and incorporated under the Companies Act 1929 on 14th June 1946); and
(b) either it has appointed a claims representative or the insurance is provided by it participating in a Community co-insurance operation otherwise than as the leading insurer.
Power to prevent disposal of assets
12 (1) The powers conferred on the Treasury by section 40A above shall be exercisable in relation to an EC company if the supervisory authority in the company’s home State has, in accordance with Article 20(5) of the first general insurance Directive or Article 24(5) of the first long term insurance Directive, requested the Treasury to prohibit the free disposal of assets of that company and has confirmed—
(a) that the company has failed to comply with the requirements of Article 15 of the first general insurance Directive or Article 17 of the first long term insurance Directive;
(b) that the solvency margin of the company has fallen below the minimum required by Article 16(3) of the first general insurance Directive or Article 19 of the first long term insurance Directive; or
(c) that the solvency margin of the company has fallen below the guarantee fund as defined in Article 17 of the first general insurance Directive or Article 20 of the first long term insurance Directive.
(2) Those powers shall also be so exercisable if the Treasuryare notified by that authority that the company’s authorisation has been withdrawn, or has lapsed, in accordance with Article 22 of the first general insurance Directive or Article 26 of the first long term insurance Directive.
Powers to obtain information
13 (1) Subject to sub-paragraph (2) below, the powers conferred by section 44 above on the Treasury or persons authorised by them shall be exercisable in respect of an EC company if either—
(a) the following requirements are fulfilled, namely—
(i) the supervisory authority in the company’s home State has made a written request to the Treasury to obtain information from the company; and
(ii) the Treasurythemthat the information to be acquired is necessary to enable that supervisory authority to perform its obligations under Article 19 of the first general insurance Directive or Article 23 of the first long term insurance Directive; or
(b) the Treasuryconsider the exercise of those powers in respect of that company to be necessary to enable them to perform their functions under this Act.
(2) The Treasury shall not exercise the powers conferred by subsection (2A), (2B) or(4A) of section 44 above in respect of an EC company unless the requirements of sub-paragraph (1)(a) above are fulfilled.
14 (1) The powers conferred by section 44 above on the Treasury shall be exercisable in respect of an EC company by a person authorised by the supervisory authority in the company’s home State if—
(a) the information to be requested by that person is necessary to enable the authority to perform its obligations in respect of the company under Article 19 of the first general insurance Directive or Article 23 of the first long term insurance Directive; and
(b) the authority has notified the Treasury in writing of that person’s intention to exercise those powers.
(2) An officer or agent of the Treasury may accompany a person so authorised while he is acting in the exercise of those powers.
14A Paragraphs 13 and 14 above shall apply in relation to the powers conferred by section 44 above on the Secretary of State or persons authorised by him as they apply in relation to the powers conferred by that section on the Treasury or persons authorised by them; and for those purposes the references in those paragraphs to the Treasury shall be construed as references to the Secretary of State.
Residual power to protect policy holders
15 The Treasury may exercise their powers under section 45 above in relation to an EC company if the supervisory authority in the company’s home State—
(a) has informed the Treasury that the company’s authorisation has been withdrawn, or has lapsed, in accordance with Article 22 of the first general insurance Directive or Article 26 of the first long term Directive; and
(b) in accordance with that Article, has requested the Treasury to take measures in the United Kingdom to safeguard the interests of policy holders of the company.
Powers of intervention
16 (1) Where it appears to the Treasury that an EC company has failed to comply with any provision of law applicable to its insurance activities in the United Kingdom, they may require it to take such steps as they may specify to comply with that provision.
(2) If the company fails to comply with a requirement under sub-paragraph (1) above, the Treasury shall notify the supervisory authority in the home State.
(3) If, after the Treasuryhave taken the action mentioned in sub-paragraphs (1) and (2) above, the company persists in contravening the provision in question, the Treasury may, after informing the supervisory authority of the home State, direct the company to cease to carry on insurance business or provide insurance, or to cease to carry on insurance business or provide insurance of any specified description, in the United Kingdom.
(4) The Treasury may exercise his powers under sub-paragraph (3) above without the conditions there mentioned being fulfilled if they consider that those powers should be exercised as a matter of urgency.
(5) After giving a direction under this paragraph, the Treasury shall by notice in writing inform the company of their reasons for doing so.
(6) A direction under this paragraph does not prevent the company from effecting a contract ofinsurance in pursuance of a term of a subsisting contract of insurance.
(7) A requirement or direction under this paragraph may be varied or revoked by the Treasury.
Power to withdraw recognition
17 (1) This paragraph applies where—
(a) an EC company is carrying on insurance business or providing insurance in the United Kingdom; and
(b) the Treasuryare notified by the supervisory authority in the home State that the company’s authorisation has been withdrawn, or has lapsed, in accordance with Article 22 of the first general insurance Directive or Article 26 of the first long term insurance Directive.
(2) The Treasury may direct the company to cease to carry on insurance business or provide insurance, or to cease to carry on insurance business or provide insurance of a specified description, in the United Kingdom through all, or any specified, establishments.
(3) Where the Treasuryreceivenotification under sub-paragraph (1) above they shall forthwith inform the connected UK authorities of its receipt.
(4) After giving such a direction, the Treasury shall by notice in writing inform the company of their reasons for doing so.
(5) A direction under this paragraph does not prevent the company from effecting or carrying outa contract of insurance in pursuance of a term of a subsisting contract of insurance.
PART II EFTA COMPANIES PROVIDING INSURANCE IN UNITED KINGDOM
Documents to be furnished to the Secretary of State
18 (1) An EFTA company which intends to provide insurance in the United Kingdom shall send to the Treasury—
(a) a certificate, issued by the supervisory authority in the EFTA State in which the company’s head office is situated, which attests—
(i) that the company possesses for its activities as a whole the minimum solvency margin calculated in accordance with the relevant provisions; and
(ii) that the company’s authorisation in accordance with Article 7(1) of the relevant Directive enables the company to operate outside the EEA State in which the establishment through which the insurance will be provided is situated (“the EEA State of establishment”);
(b) a certificate, issued by the supervisory authority in the EEA State of establishment, which—
(i) indicates the classes of insurance business which the company has been authorised to undertake through that establishment;
(ii) states that the authority does not object to the company providing insurance in the United Kingdom; and
(iii) where the company intends to provide long term insurance in the United Kingdom, confirms that all the commitments which the company intends to cover fall within the classes of insurance business which the company has been authorised to undertake through that establishment;
(c) a statement by the company of the nature of the risks or commitments which it proposes to cover in the United Kingdom;
(d) a notice stating the address of the company for the purpose of service of documents under this Schedule; and
(e) in the case of a company which intends to provide insurance to cover relevant motor vehicle risks—
(i) a notice stating the name and address of the claims representative; and
(ii) a declaration that the company has become a member of the Motor Insurers’ Bureau (being a company limited by guarantee and incorporated under the Companies Act 1929 on 14th June 1946);
and the company shall not provide insurance in the United Kingdom before the date certified as that on which those documents were received by the Treasury.
(2) Where an EFTA company wishes to provide insurance in the United Kingdom in respect of risks or commitments other than those mentioned in the statement given in accordance with sub-paragraph (1)(c) above, it shall give written notice to the Treasury amending that statement; and it shall not provide insurance in the United Kingdom in respect of such risks or commitments before the date certified as that on which written notice of the amendment was received by the Treasury.
(3) An EFTA company providing insurance in the United Kingdom shall notify the Treasury in writing of—
(a) any change of address of the company for the purpose of the service of documents; and
(b) where it provides insurance to cover relevant motor vehicle risks, any change of name or address of the claims representative.
(4) In sub-paragraph (1) above “the relevant Directive” and “the relevant provisions” mean respectively—
(a) if the company intends to cover risks, the first general insurance Directive and Articles 16 and 17 of that Directive;
(b) if the company intends to cover commitments, the first long term insurance Directive and Articles 18, 19 and 20 of that Directive.
(5) Any insurance which is provided by the company participating in a Community co-insurance operation otherwise than as the leading insurer shall be disregarded for the purposes of this paragraph.
Additional requirements with respect to relevant motor vehicle risks
19 An EFTA company shall not provide insurance in the United Kingdom to cover relevant motor vehicle risks unless—
(a) it is a member of the Motor Insurers’ Bureau (being a company limited by guarantee and incorporated under the Companies Act 1929 on 14th June 1946); and
(b) either it has appointed a claims representative or the insurance is provided by it participating in a Community co-insurance operation otherwise than as the leading insurer.
Powers of intervention
20 (1) Where it appears to the Treasury that an EFTA company providing insurance in the United Kingdom has failed to comply with any provision of this Act, they may require it to take such steps as they may specify to comply with that provision.
(2) If the company fails to comply with a requirement under sub-paragraph (1) above, the Treasury shall notify the supervisory authority in the EEA State in which the establishment through which the insurance is provided is situated.
(3) If the company persists in contravening a provision which has been the subject of arequirement under sub-paragraph (1) above, the Treasury may, after informing that supervisory authority, direct the company to cease to provide insurance, or insurance of any specified description, in the United Kingdom.
(4) After giving such a direction, the Treasury shall by notice in writing inform the company of their reasons for doing so.
(5) A direction under this paragraph does not prevent the company from effecting a contract ofinsurance in pursuance of a term of a subsisting contract of insurance.
(6) A requirement or direction under this paragraph may be varied or revoked by the Treasury.
Power to require information
21 The Treasury may, for the purpose of facilitating the exercise by them of their functions under paragraph 20 above, require an EFTA company providing insurance in the United Kingdom to furnish the Treasury, at specified times or intervals with information about such matters as they may specify being, if they so require, information verified in a specified manner.
Withdrawal of authorisation
22 (1) Where an EFTA company is providing insurance in the United Kingdom and the Treasuryarenotified by the supervisory authority in the EEA State in which the establishment through which the insurance is provided, or the company’s head office, is situated that the authorisation of the company has been withdrawn in accordance with—
(a) Article 22 of the first general insurance Directive, or
(b) Article 26 of the first long term insurance Directive,
they may direct the company to cease to provide insurance, or insurance of any specified description, in the United Kingdom through all, or any specified, establishments.
(2) After giving such a direction, the Treasury shall by notice in writing inform thecompany of their reasons for doing so.
(3) A direction under this paragraph does not prevent the company from effecting a contract ofinsurance in pursuance of a term of a subsisting contract of insurance.
PART III EFTA COMPANIES PROVIDING INSURANCE THROUGH ESTABLISHMENTS IN THE UNITED KINGDOM
Notification to Secretary of State
23 (1) Where an EFTA company intends to provide insurance through an establishment in the United Kingdom, it shall before doing so notify the Treasury of its intention.
(2) The notification shall indicate—
(a) the EEA State in which the insurance is to be provided, and
(b) the nature of the risks or commitments which the company proposes to cover.
(3) Where the company intends to provide insurance in more than one EEA State, the information specified above may be contained in a single notification but must be set out separately in relation to each such State.
(4) Where a company has duly notified the Treasury of its intention to provide insurancein an EEA State where administrative authorisation is required for the provision of insurance, then, if the original notification related—
(a) only to risks or commitments in respect of which such authorisation is required, or
(b) only to risks or commitments in respect of which such authorisation is not required,
Issue of certificates by Secretary of State
24 (1) An EFTA company which intends to provide insurance through an establishment in the United Kingdom may apply to the Treasury for a certificate—
(a) indicating the classes of insurance which the company is authorised to carry on in the United Kingdom, and
(b) stating that the Treasurydo not object to the company providing the insurance.
(2) If it appears to the Treasurythat a certificate applied for under sub-paragraph (1) above ought to be issued, they shall issue the certificate accordingly.
(3) If the Treasuryrefuse to issue a certificate, they shall inform the company in writing of their decision and of the reasons for it.
PART IV SUPPLEMENTAL
Offences
25 (1) An EC company commits an offence if—
(a) it carries on insurance business in the United Kingdom in contravention of paragraph 1 or 4 above;
(b) in contravention of paragraph 2 or 5 above, it changes the requisite details of a branch established by it in the United Kingdom;
(c) it provides insurance in the United Kingdom in contravention of paragraph 8 or 11 above;
(d) in contravention of paragraph 9 above, it changes the requisite details relating to the provision of insurance in the United Kingdom; or
(e) it makes default in complying with, or with a requirement imposed under, any other provision of Part I of this Schedule.
(2) An EFTA company commits an offence if—
(a) it provides insurance in the United Kingdom in contravention of paragraph 18 or 19 above; or
(b) it makes default in complying with, or with a requirement imposed under, any other provision of Part II or III of this Schedule.
(3) A person commits an offence if—
(a) in purported compliance with a requirement under paragraph 13, 14 or 21 above, he furnishes information which he knows to be false in a material particular or recklessly furnishes information which is false in a material particular; or
(b) he causes or permits to be included in a document required by paragraph 1, 2, 4, 8, 9 or 18 above to be sent to the Treasury a statement which he knows to be false in a material particular or recklessly causes or permits to be so included a statement which is false in a material particular.
(4) A person committing an offence under this paragraph is liable on summary conviction to a fine not exceeding level 5 on the standard scale.
Interpretation etc.
26 (1) In this Schedule—
“authorised agent”, in relation to an EC company, means an agent or employee of the company who has authority—
(a) to bind the company in its relations with third parties; and
(b) to represent the company in its relations with the supervisory authorities and courts in the United Kingdom;
“connected UK authority”, in relation to an EC company, means an authority in the United Kingdom which has regulatory functions in relation to the insurance business which the company proposes to carry on, or the insurance which it intends to provide, in the United Kingdom;
“direct insurance business” means insurance business other than reinsurance business.
(2) In this Schedule—
(a) references in Part I to the provision of insurance in the United Kingdom are references to the covering (otherwise than by way of reinsurance) of a risk or commitment situated in the United Kingdom through an establishment in another member State;
(b) references in Part II to the provision of insurance in the United Kingdom are references to the covering (otherwise than by way of reinsurance) of a risk or commitment situated in the United Kingdom through an establishment in another EEA State;
(c) references in Part III to the provision of insurance through an establishment in the United Kingdom are references to the covering (otherwise than by way of reinsurance) of a risk or commitment situated in another EEA State through an establishment in the United Kingdom.
(3) In sub-paragraph 2(b) and (c) above—
(a) references to a risk do not include a risk falling within any of the following classes of Schedule 2 to this Act (general business), namely—
class 1, so far as it relates to accidents at work;
classes 9 and 13, so far as they relate to the compulsory insurance of building works;
class 13, so far as it relates to nuclear civil liability and pharmaceutical product liability; and
(b) references to a commitment do not include a commitment falling within any of classes VII, VIII and IX of Schedule 1 to this Act (long term insurance).
(4) An EC or EFTA company shall not be regarded for the purposes of Parts I and II of this Act as carrying on insurance business in the United Kingdom by reason only of the fact that it provides insurance in the United Kingdom.
Gibraltar
27 (1) Except in its application to a Gibraltar company, this Schedule shall apply as if Gibraltar were part of the United Kingdom.
(2) In this paragraph and paragraphs 28 and 29 below “Gibraltar company” means an insurance company whose head office is in Gibraltar.
28 (1) Where, in the case of an EC company which is not a Gibraltar company, Gibraltar requirements corresponding to those of paragraph 1 above have been complied with in respect of a branch, the requirements of that paragraph, and those of paragraph 2 above, shall not apply in respect of that branch.
(2) Where, in the case of an EC company which is not a Gibraltar company, Gibraltar requirements corresponding to those of paragraph 4 above have been complied with in respect of a branch, the requirements of that paragraph, and those of paragraph 5 above, shall not apply in respect of that branch.
(3) Where, in the case of an EC company which is not a Gibraltar company, Gibraltar requirements corresponding to those of paragraph 8 have been complied with in respect of the provision of any insurance, the requirements of that paragraph, and those of paragraph 9 above, shall not apply in respect of the provision of that insurance.
(4) Where, in the case of an EFTA company, Gibraltar requirements corresponding to those of paragraph 18 have been complied with in respect of the provision of any insurance, the requirements of that paragraph shall not apply in respect of the provision of that insurance.
(5) In this paragraph “Gibraltar requirements” means requirements imposed under any provision of the law of Gibraltar.
29 (1) Where, in the case of an EC company which is not a Gibraltar company—
(a) the requirements of paragraph 1 or 4 above are complied with in respect of a branch; and
(b) the requisite details for the purposes of that paragraph indicate that the company intends to carry on insurance business in Gibraltar,
the Treasury shall send to the supervisory authority in Gibraltar a notice which contains those details.
(2) Where, in the case of an EC company which is not a Gibraltar company—
(a) the requirements of paragraph 2 or 5 above are complied with in respect of a branch; and
(b) the changes in requisite details for the purposes of that paragraph indicate that the company intends to carry on insurance business in Gibraltar,
the Treasuryshall send to the supervisory authority in Gibraltar a notice which contains details of the changes.
(3) Where, in the case of an EC company which is not a Gibraltar company, the requirementsof paragraph 8 above are complied with in respect of the provision of any insurance, the Treasury shall send to the supervisory authority in Gibraltar a notice which contains the requisite details for the purposes of that paragraph.
(4) Where, in the case of an EFTA company, the requirements of paragraph 18 above are compliedwith in respect of the provision of any insurance, the Treasury shall send to the supervisory authority in Gibraltar a notice which contains the requisite details for the purposes of that paragraph.
SCHEDULE 2G RECOGNITION IN OTHER EEA STATES OF UK INSURERS
PART I UK INSURERS CARRYING ON BUSINESS ETC. IN OTHER MEMBER STATES
Requirements for carrying on direct insurance business
1 (1) A UK insurer shall not carry on direct insurance business of a class or part of a class through a branch in a member State other than the United Kingdom unless—
(a) the insurer is authorised under section 3 or 4 of this Act to carry on insurance business of that class or part of a class or is a member of Lloyd’s; and
(b) the requirements of this paragraph have been complied with in respect of that branch.
(2) The requirements of this paragraph are—
(a) that the insurer has given to the Treasury a notice containing the requisite EC details and, in the case of a company, the requisite UK details;
(b) that the Treasuryhave given to the supervisory authority of the member State in which the branch is to be established (“the member State of the branch”)—
(i) a notice which contains the requisite EC details; and
(ii) a certificate in accordance with sub-paragraph (3) below; and
(c) that either—
(i) that authority has informed the Treasury of the conditions which, in the interest of the general good, must be complied with by the insurer in carrying on insurance business through the branch; or
(ii) the period of two months beginning with the day on which the Treasury gave that authority the certificate mentioned in paragraph (b) above has elapsed.
(3) A certificate is in accordance with this sub-paragraph if it—
(a) attests that the insurer has the minimum margin of solvency calculated in accordance with such of the following as are appropriate—
(i) Articles 16 and 17 of the first general insurance Directive, and
(ii) Articles 18, 19 and 20 of the first long term insurance Directive; and
(b) indicates the classes of insurance business which the insurer is authorised to carry on in the United Kingdom.
(4) The Treasury shall, within the period of three months beginning with the date onwhich the insurer’s notice was received—
(a) give the notice and certificate referred to in sub-paragraph (2)(b) above; or
(b) refuse to give either or both of those documents.
(5) The Treasury shall, within the period of three months referred to in sub-paragraph(4) above, notify the insurer—
(a) that they have given the notice and certificate referred to in sub-paragraph (2)(b) above, stating the date on which they did so; or
(b) that they have refused to give either or both of those documents, stating the reasons for the refusal.
(6) In the case of a UK company, the Treasury shall not refuse to give the notice referred to in sub-paragraph (2)(b) above unless, having regard to the business to be carried on through the branch, it appears to them that the criteria of sound and prudent management would not or might not continue to be fulfilled in respect of the company.
(7) Where the supervisory authority of the member State of the branch has informed the Treasury as mentioned in sub-paragraph (2)(c)(i) above, the Treasuryshall forward the information to the insurer.
2 (1) A UK insurer shall not change the requisite EC details of a branch—
(a) which has been established by it in a member State other than the United Kingdom (“the member State of the branch”); and
(b) through which it carries on direct insurance business,
unless the requirements of this paragraph have been complied with in relation to its making of the change.
(2) Subject to sub-paragraph (3) below, the requirements of this paragraph are—
(a) that the insurer has given a notice to the Treasury, and to the supervisory authority in the member State of the branch, stating the details of the proposed change not less than one month before the change is to take place;
(b) that the Treasuryhave sent to that authority a notice in accordance with sub-paragraph (4)(a) below; and
(c) that either—
(i) that authority has informed the insurer of any consequential changes in the conditions which, in the interest of the general good, must be complied with by the insurer in carrying on insurance business through the branch; or
(ii) the period of two months beginning with the day on which the insurer gave that authority the notice of the proposed change in accordance with paragraph (a) above has elapsed.
(3) In the case of a change occasioned by circumstances beyond the insurer’s control, the requirements of this paragraph are that the insurer shall as soon as practicable (whether before or after the change) give a notice to the Treasury, and to the supervisory authority in the member State of the branch, stating the details of the change.
(4) The Treasury shall, as soon as practicable after receiving a notice under sub-paragraph(2)(a) above—
(a) give notice to the supervisory authority in the member State of the branch informing it of the proposed change; or
(b) refuse to give such notice.
(5) The Treasury shall, as soon as practicable after making a decision under sub-paragraph (4) above, notify the insurer—
(a) that they have given the notice referred to in that sub-paragraph, stating the date on which they did so; or
(b) that they refused to give the notice, stating the reasons for that refusal.
(6) In the case of a UK company, the Treasury shall not refuse to give the notice referred to in sub-paragraph (4)(a) above unless, having regard to the proposed change, it appears to them that the criteria of sound and prudent management would not or might not continue to be fulfilled in respect of the company.
3 (1) A UK company shall not change the requisite UK details of a branch—
(a) which has been established by it in a member State other than the United Kingdom; and
(b) through which it carries on direct insurance business,
unless the requirements of this paragraph have been complied with in relation to its making of the change.
(2) Subject to sub-paragraph (3) below, the requirements of this paragraph are that the company has given a notice to the Treasury stating the details of the proposed change at least one month before the change is effected.
(3) In the case of a change occasioned by circumstances beyond the company’s control, the requirements of this paragraph are that the company shall as soon as practicable (whether before or after the change) give a notice to the Treasury stating the details of the change.
Requisite details for purposes of paragraphs 1 to 3
4 (1) The requisite EC details for the purposes of paragraphs 1 and 2 above are—
(a) the member State in which the branch is to be or has been established (“the member State of the branch”);
(b) the address of the branch and confirmation that it is an address for service on the insurer’s authorised agent;
(c) the name of the insurer’s authorised agent and, in the case of a member of Lloyd’s, confirmation that the authorised agent has power to accept service of proceedings on behalf of Lloyd’s;
(d) the classes or parts of classes of business to be carried on, and nature of the risks or commitments to be covered, in the member State of the branch;
(e) details of the structural organisation of the branch;
(f) the guiding principles as to reinsurance of business to be carried on in the member State of the branch, including the insurer’s maximum retention per risk or event after all reinsurance ceded;
(g) estimates of the following, namely—
(i) the costs of installing administrative services and the organisation for securing business in the member State of the branch;
(ii) the resources available to cover those costs; and
(iii) if risks within class 18 of Schedule 2 to this Act are to be covered, the resources available for providing assistance;
(h) for each of the first three financial years following the establishment of the branch—
(i) estimates of the insurer’s margin of solvency and the margin of solvency required, and a statement showing how both have been calculated;
(ii) in the case of an insurer which intends to carry on long term business, the details mentioned in sub-paragraph (2) below as respects the business to be carried on in the member State of the branch; and
(iii) in the case of an insurer which intends to carry on general business, the details mentioned in sub-paragraph (3) below as respects the business to be so carried on;
(i) in the case of an insurer which intends to cover relevant motor vehicle risks, confirmation that it has become a member of the national bureau and the national guarantee fund in the member State of the branch; and
(j) in the case of an insurer which intends to cover health insurance risks, the technical bases which will be used for calculating premiums in respect of such risks.
(2) The details referred to in sub-paragraph (1)(h)(ii) above are—
(a) a statement showing, on both optimistic and pessimistic bases, for each type of contract or treaty—
(i) the number of contracts or treaties expected to be issued;
(ii) the total premium income, both gross and net of reinsurance ceded;
(iii) the total sums assured or the total amounts payable each year by way of annuity;
(b) a statement setting out, on both optimistic and pessimistic bases, detailed estimates of income and expenditure in respect of direct business, reinsurance acceptances and reinsurance cessions; and
(c) estimates relating to the financial resources intended to cover underwriting liabilities.
(3) The details referred to in sub-paragraph (1)(h)(iii) above are—
(a) estimates relating to expenses of management (other than costs of installation), and in particular those relating to current general expenses and commissions;
(b) estimates relating to premiums or contributions (both gross and net of all reinsurance ceded) and to claims (after all reinsurance recoveries); and
(c) estimates relating to the financial resources intended to cover underwriting liabilities.
(4) The requisite UK details for the purposes of paragraphs 1 and 3 above are—
(a) the names of the company’s managers and main agents in the member State of the branch;
(b) particulars of any association which exists or is proposed to exist between—
(i) the directors and the controllers of the company; and
(ii) any person who will act as an insurance broker, agent, loss adjuster or reinsurer for the company in the member State of the branch;
(c) the names of the principal reinsurers of business to be carried on in the member State of the branch;
(d) the sources of business in the member State of the branch (for example, insurance brokers, agents, own employees or direct selling) with the approximate percentage expected from each of those sources;
(e) copies or drafts of the following, namely—
(i) any separate reinsurance treaties covering business to be written in the member State of the branch;
(ii) any standard agreements which the company will enter into with brokers or agents in the member State of the branch;
(iii) any agreements which the company will enter into with persons (other than employees of the company) who will manage the business to be carried on in the member State of the branch;
(f) in the case of a company which intends to carry on long term business—
(i) the technical bases which the actuary appointed in accordance with section 19 above proposes to use for each class of business to be carried on in the member State of the branch, including the bases needed for calculating premium rates and mathematical reserves;
(ii) a statement by the actuary so appointed as to whether he considers that the premium rates which will be used in the member State of the branch are suitable;
(iii) a statement by that actuary as to whether he agrees with the information provided under sub-paragraphs (1)(f) and (2)(b) and (c) above; and
(iv) the technical bases used to calculate the statements and estimates referred to in sub-paragraph (2) above; and
(g) in the case of a company which intends to carry on general business, copies or drafts of any agreements which the company will have with main agents in the member State of the branch.
(5) In this paragraph “authorised agent” means an agent or employee of the insurer who has authority—
(a) to bind the insurer in its relations with third parties; and
(b) to represent the insurer in its relations with supervisory authorities and courts in the member State of the branch.
Requirements for providing insurance
5 (1) A UK insurer shall not provide insurance of any class or part of a class in a member State other than the United Kingdom unless the insurer is authorised under section 3 or 4 above to carry on insurance of that class or part of a class or is a member of Lloyd’s and either—
(a) the requirements of this paragraph have been complied with in relation to the provision of the insurance in that member State; or
(b) the insurance is provided by the insurer participating in a Community co-insurance operation otherwise than as the leading insurer.
(2) The requirements of this paragraph are—
(a) that the insurer has given to the Treasury a notice containing the requisite details; and
(b) that the Treasuryhave given to the supervisory authority in the member State in which the insurance is to be provided—
(i) a notice which contains the requisite details; and
(ii) a certificate in accordance with sub-paragraph (3) below.
(3) A certificate is in accordance with this sub-paragraph if it—
(a) attests that the insurer has the minimum margin of solvency calculated in accordance with such of the following as are appropriate—
(i) Articles 16 and 17 of the first general insurance Directive, and
(ii) Articles 18, 19 and 20 of the first long term insurance Directive; and
(b) indicates the classes of insurance business which the insurer is authorised to carry on in the United Kingdom.
(4) Where the insurer intends to provide insurance in more than one member State, the requisite details may be contained in a single notification but must be set out separately in relation to each member State.
(5) The Treasury shall, within the period of one month beginning with the date on which the insurer’s notice was received—
(a) give the notice and certificate referred to in sub-paragraph (2)(b) above to the supervisory authority in the member State in which the insurer intends to provide insurance; or
(b) refuse to give either or both of those documents.
(6) The Treasury shall, within the period of one month referred to in sub-paragraph (5) above, notify the insurer—
(a) that they have given the notice and certificate referred to in sub-paragraph (2)(b) above to the supervisory authority in the member State in which the insurer intends to provide insurance, stating the date on which they did so; or
(b) that they have refused to give either or both those documents, stating the reasons for the refusal.
(7) In the case of a UK company, the Treasury shall not refuse to give the notice referred to in sub-paragraph (2)(b) above unless, having regard to the insurance to be provided in the member State, it appears to them that the criteria of sound and prudent management would not or might not continue to be fulfilled in respect of the company.
6 (1) A UK insurer shall not change the requisite details of the provision of insurance in a member State other than the United Kingdom unless the requirements of this paragraph have been complied with in relation to its making of the change.
(2) The requirements of this paragraph are—
(a) that the insurer has given a notice to the Treasury stating the details of the proposed change;
(b) that the Treasuryhave sent to the supervisory authority in the member State in which the insurance is provided a notice in accordance with sub-paragraph (4)(a) below.
(3) In the case of a change occasioned by circumstances beyond the insurer’s control, the requirements of this paragraph are that the insurer shall as soon as practicable give a notice to the Treasury stating the details of the change.
(4) The Treasury shall, as soon as practicable after receiving a notice under sub-paragraph (2)(a) above either—
(a) give notice to the supervisory authority in the member State in which the insurance is provided informing it of the proposed change; or
(b) refuse to give such notice.
(5) The Treasury shall, as soon as practicable after making a decision under sub-paragraph (4) above, notify the insurer—
(a) that they havegiven the notice referred to in that sub-paragraph, stating the date on which they did so; or
(b) that they have refused to give the notice, stating the reasons for the refusal.
(6) In the case of a UK company, the Treasury shall not refuse to give the notice referred to in sub-paragraph (4)(a) above unless, having regard to the proposed change, it appears to them that the criteria of sound and prudent management would not or might not continue to be fulfilled in respect of the company.
Requisite details for purposes of paragraphs 5 and 6
7 The requisite details for the purposes of paragraphs 5 and 6 above are—
(a) the member State in which the insurance is to be provided;
(b) the nature of the risks or commitments which the insurer proposes to cover in that State;
(c) in the case of an insurer which intends to provide insurance to cover relevant motor vehicle risks—
(i) a notice stating the name and address of the claims representative; and
(ii) a declaration that the insurer has become a member of the national bureau and the national guarantee fund in that State; and
(d) in the case of an insurer which intends to cover health insurance risks, the technical bases which will be used for calculating premiums in respect of such risks.
Requirement to notify cessation of insurance business etc.
8 (1) A UK insurer which has ceased—
(a) to carry on direct insurance business through a branch in a member State other than the United Kingdom; or
(b) to provide insurance in such a member State,
shall as soon as practicable notify the Treasury in writing that it has done so.
(2) Any insurance which is provided by the insurer participating in a Community co-insuranceoperation otherwise than as the leading insurer shall be disregarded for the purposes of this paragraph.
PART II UK INSURERS PROVIDING INSURANCE IN EFTA STATES
Notification to Secretary of State
9 (1) Where a UK insurer intends to provide insurance in an EFTA State, it shall before doing so notify the Treasury in writing of its intention.
(2) The notification shall indicate—
(a) the EFTA State in which the insurance is to be provided,
(b) the EEA State in which is situated the establishment through which the insurance will be provided (“the EEA State of establishment”), and
(c) the nature of the risks or commitments which the insurer proposes to cover.
(3) Where the insurer intends to provide insurance in more than one EFTA State, the information specified above may be contained in a single notification but must be set out separately in relation to each such State.
(4) Where a UK insurer has duly notified the Treasury of its intention to provide insurance in an EFTA State where administrative authorisation is required for the provision of insurance, then, if the original notification related—
(a) only to risks or commitments in respect of which such authorisation is required, or
(b) only to risks or commitments in respect of which such authorisation is not required,
and the insurer subsequently intends to extend its activities to risks falling within the other category, it shall before doing so comply with sub-paragraphs (1) to (3) above in relation to those risks or commitments.
(5) Any insurance which is provided by the insurer participating in a Community co-insurance operation otherwise than as the leading insurer shall be disregarded for the purposes of this paragraph.
Issue of certificates by Secretary of State
10 (1) A UK insurer which intends to provide insurance in an EFTA State may apply to the Treasury for a certificate—
(a) attesting that the insurer possesses for its activities as a whole the minimum solvency margin calculated in accordance with the relevant provisions;
(b) indicating the classes of business which the insurer is authorised to carry on in the United Kingdom;
(c) stating that the Treasurydo not object to the insurer providing the insurance; and
(d) in the case of a company, attesting that the company’s authorisation to carry on business in the United Kingdom, issued in accordance with Article 7(1) of the relevant Directive, enables the company to carry on business outside the EEA State of establishment.
(2) If it appears to the Treasury that a certificate applied for under sub-paragraph (1) above ought to be issued, they shall issue the certificate accordingly.
(3) If the Treasuryrefuse to issue a certificate, theyshall inform the company in writing of their decision and of the reasons for it.
(4) In sub-paragraph (1) above “the relevant Directive” and “the relevant provisions” mean respectively—
(a) if the company intends to cover risks, the first general insurance Directive and Articles 16 and 17 of that Directive;
(b) if the company intends to cover commitments, the first long term insurance Directive and Articles 18, 19 and 20 of that Directive.
PART III UK INSURERS PROVIDING INSURANCE IN THE UNITED KINGDOMTHROUGH BRANCHES IN OTHER EEA STATES
11 (1) Where a UK insurer intends to provide insurance in the United Kingdom, it shall before doing so notify the Treasury in writing of its intention.
(2) The notification shall indicate—
(a) the EEA State in which is situated the branch through which the company intends to provide insurance in the United Kingdom; and
(b) the nature of the risks or commitments which the insurer proposes to cover in the United Kingdom.
(3) Where the EEA State in which is situated the branch through which the company intends to provide insurance in the United Kingdom is an EFTA State, the notification shall be accompanied by a certificate, issued by the supervisory authority in that State, which—
(a) indicates the classes of insurance business which the company has been authorised to undertake through that branch;
(b) states that the authority does not object to the company providing insurance in the United Kingdom; and
(c) where the company intends to provide long term insurance in the United Kingdom, confirms that all the commitments which the company intends to cover fall within the classes of insurance business which the company has been authorised to undertake through that branch.
(4) The insurer shall notify the Treasury in writing if—
(a) it changes either of the details notified to the Treasury under sub-paragraph (2) above; or
(b) it ceases to provide insurance in the United Kingdom.
(5) Any insurance which is provided by the insurer participating in a Community co-insurance operation otherwise than as the leading insurer shall be disregarded for the purposes of this paragraph.
PART IV SUPPLEMENTAL
Offences
12 (1) A UK insurer commits an offence if—
(a) it carries on insurance business in a member State other than the United Kingdom in contravention of paragraph 1 above;
(b) in contravention of paragraph 2 or 3 above, it changes the requisite EC details or, as the case may be, the requisite UK details of a branch established by it in such a member State;
(c) it provides insurance in such a member State in contravention of paragraph 5 above;
(d) in contravention of paragraph 6 above, it changes the requisite details relating to the provision of insurance in such a member State; or
(e) it makes default in complying with, or with a requirement imposed under, any other provision of this Schedule.
(2) A person commits an offence if he causes or permits to be included in a notification sent to the Treasury under paragraph 1, 2, 3, 5 or 6 above a statement which he knows to be false in a material particular or recklessly causes or permits to be so included a statement which is false in a material particular.
(3) A person committing an offence under this paragraph is liable on summary conviction to a fine not exceeding level 5 on the standard scale.
Interpretation
13 (1) In this Schedule—
“direct insurance business” means insurance business other than reinsurance business;
“health insurance risks”, in relation to a member State, means risks falling within class 2 of Schedule 2 to this Act (sickness) where—
(a) insurance contracts covering those risks serve as a partial or complete alternative to the health cover provided by the statutory social security system in that State; and
(b) the law of that State requires such contracts to be operated on a technical basis similar to life assurance in accordance with all the conditions listed in the first sub-paragraph of Article 54(2) of the third general insurance Directive;
“national bureau”, in relation to a member State, means a professional organisation—
(a) which has been constituted in that State in accordance with Recommendation No 5 adopted on 25th January 1949 by the Road Transport Sub-committee of the Inland Transport Committee of the United Nations Economic Commission for Europe; and
(b) which groups together insurance undertakings which in that State are authorised to conduct the business of motor vehicle liability insurance;
“national guarantee fund”, in relation to a member State, means a body—
(a) which has been set up or authorised in that State in accordance with Article 1(4) of Council Directive 84/5/EEC ; and
(b) which provides compensation for damage to property or personal injuries caused by unidentified vehicles or vehicles for which the insurance obligation provided for in Article 1(1) of that Directive has not been satisfied;
“UK insurer” means a UK company or a member of Lloyd’s.
(2) In this Schedule—
(a) references in Part I to the provision of insurance in a member State other than the United Kingdom are references to the covering (otherwise than by way of reinsurance) of a risk or commitment situated in that member State through an establishment in another member State;
(b) references in Part II to the provision of insurance in an EFTA State are references to the covering (otherwise than by way of reinsurance) of a risk or commitment situated in that EFTA State through an establishment in another EEA State;
(c) references in Part III to the provision of insurance in the United Kingdom are references to the covering (otherwise than by way of reinsurance) of a risk or commitment situated in the United Kingdom—
(i) through an establishment in another member State; or
(ii) through an establishment in an EFTA State.
(3) In sub-paragraph 2(b) and (c)(ii) above—
(a) references to a risk do not include a risk falling within any of the following classes of Schedule 2 to this Act (general business), namely—
class 1, so far as it relates to accidents at work;
classes 9 and 13, so far as they relate to the compulsory insurance of building works;
class 13, so far as it relates to nuclear civil liability and pharmaceutical product liability; and
(b) references to a commitment do not include a commitment falling within any of classes VII, VIII and IX of Schedule 1 to this Act (long term insurance).
Section 7.
1 Subject to the following provisions of this Schedule, the premium limit for the purposes of section 7(6) above is the aggregate of the amounts of gross premiums shown in the annual accounts relating to the business of the applicant in the United Kingdom last deposited under section 22 above as receivable in respect of general business in the financial year to which the accounts relate.
2 If the accounts so deposited relate to a financial year which is not a period of 12 months, the aggregate of the amounts of gross premiums shown in the accounts as receivable in that financial year shall be divided by the number of months in that financial year and multiplied by twelve.
3 If no accounts have been deposited under section 22 above the aggregate amount of gross premiums shall be the amount or, if more than one amount, the lower or lowest amount, shown in respect of gross premiums relating to the business of the applicant in the United Kingdom in the financial forecast last submitted by the applicant in accordance with regulations made for the purposes of section 5(1)(a) above.
SCHEDULE 3A Law applicable to certain contracts of insurance
PART II LONG TERM BUSINESS
General rules as to applicable law
6 The law applicable to the contract is the law of the member State of the commitment. However, where the law of that member State so allows, the parties may choose the law of another country.
7 Where the policy holder is an individual and has his habitual residence in a member State other than that of which he is a national, the parties may choose the law of the member State of which he is a national.
mandatory rules
8 Nothing in this Part of this Schedule restricts the application of the rules of a part of the United Kingdom in a situation where they are mandatory, irrespective of the law otherwise applicable to the contract.
supplementary provisions
9 (1) Where a member State includes several territorial units, each of which has its own rules of law concerning contractual obligations, each unit shall be considered as a country for the purposes of identifying the applicable law.
(2) The provisions of this Part of this Schedule apply to conflicts between the laws of the different parts of the United Kingdom.
10 (1) Subject to the preceding provisions of this Part of this Schedule, a court in a part of the United Kingdom shall act in accordance with the provisions of the Contracts (Applicable Law) Act 1990].
(2) In particular, reference shall be made to those provisions to ascertain for the purposes of paragraph 6 what freedom of choice the parties have under the law of a part of the United Kingdom.
Section 99(1).
Saving for requirements, directions and powers under the Companies Act 1967
1 The repeal by the Insurance Companies Amendment Act 1973 of sections 65, 68 and 80 and subsection (1)(f) of section 109 of the Companies Act 1967 shall not affect—
(a) any requirement or direction imposed or given under any of those sections before 25th July 1973;
(b) the giving of a direction under the said section 68 in any case in which a notice has been served under subsection (3) of that section before that date; or
(c) the exercise by an officer of any powers under the said section 109 in a case in which he has been authorised before that date to exercise them;
and the said Act of 1967 shall have effect in relation to any such requirement, direction or powers as if the said Act of 1973, the Insurance Companies Act 1974 and this Act had not been passed.
Periodic actuarial investigations under section 18 above in relation to any period of twelve months beginning before 1st October 1982
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2
Adjustments of established surplus for purposes of section 30(1) above
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3
Margins of solvency
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4
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5
Postponement of coming into force of section 36 above
6 . . .Section 36 of this Act shall not take effect until the first regulations under the said section . . .36 come into operation.
Saving for schemes of operation submitted under Insurance Companies (Authorisation and Accounts: General Business) Regulations
7 For the purposes of section 37(2)(f) of this Act, a scheme of operations submitted pursuant to regulation 5 of the Insurance Companies (Authorisation and Accounts: General Business) Regulations 1978 shall be regarded as a proposal or forecast submitted in accordance with section 5 of this Act.
Saving for requirements under section 29 of the Insurance Companies Act 1974
8 Where a requirement under section 29 of the Insurance Companies Act 1974 was in force immediately before 1st January 1982—
(a) that requirement shall continue in force,
(b) any requirement imposed under sections 30 to 37 of that Act on the company concerned, if it was in force immediately before that day, shall continue in force, and
(c) section 47(1) of this Act shall apply to any requirement that continues in force under sub-paragraph (a) or (b) above.
Postponement of effect of sections 37(3) and 38(3) above in respect of long term business
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9
Deposits made with Accountant General before 1st January 1982
10 A deposit made under regulation 6 of the Insurance Companies (Solvency: General Business) Regulations 1977 shall, in so far as it remained with the Accountant General of the Supreme Court immediately before 1st January 1982, be regarded as having been made under section 9(1)(c) of this Act.
Continuation of business where contract made before 1st January 1982
11 Where—
(a) as a result of the repeal of section 83(2)(b) of the Insurance Companies Act 1974 any particular kind of ordinary long-term insurance business has become general business, and
(b) an insurance company was immediately before 1st January 1982 lawfully carrying on that particular kind of business in the United Kingdom,
then, notwithstanding the lack of an authorisation to carry on general business, the company may continue to carry out any contract of insurance relating to that particular kind of business if the contract was made before 1st January 1982.
Applications for approval of transfer made before 1st January 1982
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12
Saving for section 42 of the Insurance Companies Act 1974
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13
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14
Saving for winding up commenced before rules made under section 365 of the Companies Act or section 317 of the Companies (Northern Ireland) Order 1986
15 The provisions of this Act, so far as re-enacting provisions of the Insurance Companies Act 1974 which repealed and re-enacted provisions of the Insurance Companies Amendment Act 1973 relating to winding up, shall not affect any winding up commenced before the date on which the first rules made under section 365 of the Companies Act or, as the case may be, section 317 of the Companies (Northern Ireland) Order 1986 by virtue of . . . section 59(2) above come into operation.
Saving for repeal of section 17(2) and (3) of, and Schedules 3 and 4 to, the Insurance Companies Act 1958
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16
Northern Ireland
17 Section 17(2)(a) of the Interpretation Act 1978 shall not apply to the reference to the Insurance Companies Act 1974 in paragraph 2 of Schedule 4 to the Insurance Companies Act 1980.
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18
Continuing offences
19 Where an offence for the continuance of which a penalty was provided has been committed under any enactment repealed by this Act proceedings may be taken under this Act in respect of the continuance of the offence after the commencement of this Act in the like manner as if the offence had been committed under the corresponding provision of this Act.
Transitional provisions relating to sections 9(7), 71(3), 81(2) and 88(2) of this Act
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20
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21
General
22 Subject to paragraph 17 above and without prejudice to any express amendment made by this Act, any enactment or other document whatsoever referring to any enactment repealed by this Act shall, unless the context otherwise requires, be construed as referring (or as including a reference) to the corresponding enactment in this Act.
23 Without prejudice to paragraph 22 above, any enactment or document whatsoever referring to an assurance company within the meaning of the Assurance Companies Act 1909 shall be construed as referring (or as including a reference) to an insurance company to which Part II of this Act applies.
24 Where a period of time specified in any enactment repealed by this Act is current at the commencement of this Act, this Act has effect as if the corresponding provision of this Act had been in force when that period began to run.
Section 99(3).
Chapter | Short title | Extent of repeal
1974 c. 49. | The Insurance Companies Act 1974. | The whole Act, except sections 88(1)(6) and 90 and Schedule 1.
1975 c. 75. | The Policyholders Protection Act 1975. | Section 22(1).
1976 c. 69. | The Companies Act 1976. | In Schedule 2, the entries relating to sections 17(1) and 75(2) of the Insurance Companies Act 1974.
1980 c. 25. | The Insurance Companies Act 1980. | In section 1, paragraph (a) and, to the extent an Act therein mentioned is repealed by this Act, paragraph (b).
Section 2.
Schedule 1.
In Schedule 4, paragraph 18.
1980 c. 43. | The Magistrates’ Courts Act 1980. | In Schedule 7, paragraph 18.
1981 c. 31. | The Insurance Companies Act 1981. | The whole Act, except sections 36(1), 38 and Part II of Schedule 4.
1981 c. 62. | The Companies Act 1981. | In Schedule 3, paragraph 35.
S.I. 1981/1657 (c. 44). | The Insurance Companies Act 1981 (Commencement) Order 1981. | In the Schedule, paragraphs 2-9, 11, 12, 14 and 15.