Insurance Companies Act 1982 (repealed)

96 General interpretation. U.K.

(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;

• [F1 '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 [F2 section 96D below];

• [F3 [F4 'claims representative’ has the meaning given in section 96F below;]

• [F5 “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 [F6 section 96C below];

• [F7 '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 F8 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;

• [F9 '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;

• [F10 '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 F11 as adjusted by the Protocol signed at Brussels on 17th March 1993 F12 ;

• 'EEA State’ means a State which is a Contracting Party to the EEA Agreement F13 . . .;

• '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 M1 Companies Act 1929 or the M2 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 M3 Companies (Consolidation) Act 1908; [F14 and the Companies Acts 1948 to 1983][F15 and 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 [F16 736] of the [F17 Companies Act] or [F18 Article 4] of the [F19 Companies (Northern Ireland) Order 1986];

• [F20 '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 M4 Industrial Assurance Act 1923 or Articles 2(2) and 3(1) of the M5 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 [F21 122 and 123 or section 221 of the Insolvency Act 1986] or, as the case may be, [F22 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 [F23 section 96E below];

• “manager”, except in section 56, has the meaning given in [F24 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 [F25 'EEA margin of solvency’] shall be construed in accordance with section 32 above;

[F26 'member State’ shall be construed in accordance with section 2(7) F27 . . . above;]

• “mortgage”, in relation to Scotland, means a heritable security within the meaning of section 9(8) of the M6 Conveyancing and Feudal Reform (Scotland) Act 1970;

[F28 '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;

  [F29 “parent undertaking” shall be construed in accordance with section 258 of the Companies Act 1985 F30 and Article 266 of the Companies (Northern Ireland) Order 1986 F31 ;]

• “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 M7 Industrial and Provident Societies Act 1965 or the M8 Industrial and Provident Societies Act (Northern Ireland) 1969;

• “registrar of companies” has the [F32 the same meaning as in] the [F17 Companies Act] and “registrar of companies in Northern Ireland” means the registrar of companies within the meaning of [F33 Article 2 of the Companies (Northern Ireland) Order 1986];

[F34 '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 [F35 736] of the [F17 Companies Act] or [F36 Article 4] of the [F19 Companies (Northern Ireland) Order 1986]:

[F37 'subsidiary undertaking’ shall be construed in accordance with section 258 of the Companies Act F38 and Article 266 of the Companies (Northern Ireland) Order 1986 F39 ;]

[F40 “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;]

[F40 “Swiss general insurance company” has the meaning given in section 11 above;]

[F41 '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 M9 Insurance Companies Act 1958 or section 14(1) of the M10 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.

[F42 (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.

[F43 (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.]

Subordinate Legislation Made

P1 S. 96(1): s. 97 (with ss. 94A, 96(1)), power exercised (11.3.1991) by S.I. 1991/621

S. 96(1): s. 17 (with ss. 20, 21, 96(1), 97), power exercised (14.11.1991) by S.I. 1991/2736

Textual Amendments

F1 Definition of “associate”in s. 96(1) inserted (1.7.1994) by S.I. 1994/1696, reg. 50(1)(a)

F2 Words in the definition of “chief executive”in s. 96(1) substituted (1.7.1994) by S.I. 1994/1696, reg. 50(1)(b)

F3 Definition inserted by Companies Consolidation (Consequential Provisions) Act 1985 (c. 9, SIF 27), s. 30, Sch. 2

F4 Definition of “claims representative”in s. 96(1) substituted (1.7.1994) by S.I. 1994/1696, reg. 50(1)(c)

F5 Definition of commitment in s. 96(1) inserted (20.5.1993) by S.I. 1993/174, reg. 6(2)(b)

F6 Words in the definition of “controller”in s. 96(1) substituted (1.7.1994) by S.I. 1994/1696, reg. 50(1)(d)

F7 Definition of “Community co-insurance operation”in s. 96(1) inserted (1.7.1994) by S.I. 1994/1696, reg. 50(1)(e)

F8 O.J. L151, 7.6.78, page 25.

F9 Definition of “criteria of sound and prudent management”in s. 96(1) inserted (1.7.1994) by S.I. 1994/1696, reg. 50(1)(f)

F10 Definitions of “EC company”

“EEA Agreement”

“EEA State”

“EFTA company”and “EFTA State”in s. 96(1) inserted (1.7.1994) by S.I. 1994/1696, reg. 50(1)(g)

F11 O.J. L1, 3.1.94, page 3.

F12 O.J. L1, 3.1.94, page 572.

F13 Words in the definition of “EEA State”in s. 96(1) omitted (30.4.1996) by virtue of S.I. 1996/944, reg. 4(3)(a)

F14 Words added by Companies Consolidation (Consequential Provisions) Act 1985 (c. 9, SIF 27), s. 30, Sch. 2

F15 Words added by S.I. 1986/1035 (N.I. 9), art. 23, Sch. 1 Pt. II.

F16 Figure substituted by Companies Consolidation (Consequential Provisions) Act 1985 (c. 9, SIF 27), s. 30, Sch. 2

F17 Words substituted by Companies Consolidation (Consequential Provisions) Act 1985 (c. 9, SIF 27), s. 30, Sch. 2

F18 Words substituted by S.I. 1986/1035 (N.I. 9), art. 23, Sch. 1 Pt. II

F19 Words substituted by S.I. 1986/1035 (N.I. 9), art. 23, Sch. 1 Pt. II

F20 Definition of “home State”in s. 96(1) inserted (1.7.1994) by S.I. 1994/1696, reg. 50(1)(h)

F21 Words substituted by Insolvency Act 1986 (c. 45, SIF 66), s. 439(2), Sch. 14

F22 Words in s. 96(1) substituted (N.I.) (1.10.1991) by S.I. 1989/2405 (N.I. 19), art. 381(2), Sch. 9 para. 38; S.R. 1991/411, art. 2

F23 Words in the definition of “main agent”in s. 96(1) substituted (1.7.1994) by S.I. 1994/1696, reg. 50(1)(i)

F24 Words in the definition of “manager”in s. 96(1) substituted (1.7.1994) by S.I. 1994/1696, reg. 50(1)(j)

F25 Definition of “EEA margin of solvency”in s. 96(1) substituted (30.12.1994) for “Community margin of solvency”by S.I. 1994/3132, reg. 10(3)

F26 Definition of “member State”in s. 96(1) inserted (30.12.1994) by S.I. 1994/3132. reg. 3(2)

F27 Words in the definition of “member State”in s. 96(1) omitted (30.4.1996) by virtue of S.I. 1996/944, reg. 4(3)(b)

F28 Definitions of “non-EC company”and “notifiable holding”in s. 96(1) substituted for “member State of the commitment” by S.I. 1994/1696, reg. 50(1)(k)

F29 Definition in s. 96(1) inserted (19.11.1992) by S.I. 1992/2890, reg. 9(3)(b)

F30 1985 c.6; section 258 was inserted by section 21 of the Companies Act 1989 (c.40).

F31 S.I. 1986/1032 (N.I.6); Article 266 was inserted by Article 23 of the Companies (Northern Ireland) Order 1990 (S.I.1990/593 (N.I.5)).

F32 Words substituted by Companies Consolidation (Consequential Provisions) Act 1985 (c. 9, SIF 27), s. 30, Sch. 2

F33 Words substituted by S.I. 1986/1035 (N.I. 9), art. 23, Sch. 1 Pt. II

F34 Definitions of “relevant motor vehicle risks”

“shareholder controller”

“10 per cent shareholder controller”

“20 per cent shareholder controller”

“33 per cent shareholder controller”

“50 per cent shareholder controller”

“majority shareholder controller”and “State of the commitment” in s. 96(1) inserted (1.7.1994) by S.I. 1994/1696, reg. 50(1)(l)

F35 Figure substituted by Companies Consolidation (Consequential Provisions) Act 1985 (c. 9, SIF 27), s. 30, Sch. 2

F36 Figure substituted by S.I. 1986/1035 (N.I. 9), art. 23, Sch. 1 Pt. II.

F37 Definition of “subsidiary undertaking”in s. 96(1) inserted (1.7.1994) by S.I. 1994/1696, reg. 50(1)(m)

F38 1985 c.6: section 258 was inserted by the Companies Act 1989 (c.40), section 21.

F39 S.I. 1986/1032 (N.I.6); Article 266 was inserted by the Companies (Northern Ireland) Order 1990 (S.I. 1990/593 (N.I.5)), Article 23.

F40 Definitions of “supervisory authority”and “Swiss general insurance company”substituted for definition of “supervisory authority”in s. 96(1) inserted (5.1.1994) by S.I. 1993/3127, reg. 4

F41 Definition of “UK company”in s. 96(1) inserted (1.7.1994) by S.I. 1994/1696, reg. 50(1)(n)

F42 By S.I. 1996/1669, reg. 23, Sch. 5 para. 7 (with reg. 5(6)) it is provided (18.7.1996) that s. 96(2B) shall be inserted after s. 96(3)

F43 S. 96(5) inserted (1.7.1994) by S.I. 1994/1696, reg. 50(2)

Modifications etc. (not altering text)

C1 Definition of "chief executive" in s. 96 applied (15.5.1991) by Standard Life Assurance Company Act 1991 (c. iii), s. 14(1), Sch. reg. 1 (1); appointed day (15.5.1991) as published in the London Gazette on 19.4.1991

Marginal Citations

M1 1929 c. 23.

M2 1932 c. 7(N.I.).

M3 1908 c. 69.

M4 1923 c. 8.

M5 S.I. 1979/1574 (N.I. 13)

M6 1970 c. 35.

M7 1965 c. 12.

M8 1969 c. 24 (N.I.)

M9 1958 c. 72.

M10 1968 c. 6 (N.I.)