14(1)A policy shall not be a qualifying policy if the policy is connected with another policy and the terms of either policy provide benefits which are greater than would reasonably be expected if any policy connected with it were disregarded.U.K.
(2)For the purposes of this paragraph a policy is connected with another policy if they are at any time simultaneously in force and either of them is issued with reference to the other, or with a view to enabling the other to be issued on particular terms or facilitating its being issued on those terms.
(3)In this paragraph “policy” means a policy [F1evidencing a contract of long-term insurance], and includes any such policy issued outside the United Kingdom.
[F2(3A)In sub-paragraph (3) “contract of long-term insurance” means a contract which falls within Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.]
(4)Where any person issues a policy—
(a)which by virtue of this paragraph is not a qualifying policy, or
(b)the issue of which causes another policy to cease by virtue of this paragraph to be a qualifying policy,
he shall within three months of issuing the policy give notice of that fact to the Board.
(5)F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6)This paragraph shall apply to policies issued in respect of insurances made before 23rd August 1983 in accordance with sub-paragraphs (7) and (8) below.
(7)Where—
(a)a policy is issued in respect of an insurance made before 23rd August 1983, and
(b)a policy is issued in respect of an insurance made on or after that date which is connected with it within the meaning of this paragraph,
sub-paragraphs (1) to (6) above shall apply to the policy issued in respect of an insurance made before that date.
(8)Sub-paragraphs (1) to (7) above shall apply to policies issued in respect of insurances made before 23rd August 1983 (other than policies which, disregarding this paragraph, fall within sub-paragraph (7)) with the substitution—
(a)in sub-paragraph (1) for the words “and the terms of either policy” of the words “ the terms of which ”;
(b)in sub-paragraph (3) for the words from “long term business” to “1982” of the words “ ordinary long-term insurance business within the meaning of section 83(2) of the Insurance Companies Act 1974 (as enacted) or, in relation to a policy made after 25th March 1982, section 96(1) of the Insurance Companies Act 1982 ”; and
(c)in sub-paragraphs (6) and (7) for the words “23rd August 1983” of the words “ 26th March 1980 ”.
(9)In any case where payments made—
(a)after 22nd August 1983, and
(b)by way of premium or other consideration in respect of a policy issued in respect of an insurance made before that date,
exceed £5 in any period of 12 months, the policy shall be treated for the purposes of this paragraph as if it were issued in respect of an insurance made after 22nd August 1983; but nothing in this paragraph shall apply with respect to any premium paid in respect of it before that date.
(10)Sub-paragraphs (8) and (9) above do not apply in relation to policies issued in the course of industrial assurance business.
Textual Amendments
F1Words in Sch. 15 para. 14(3) substituted (1.12.2001 in accordance with art. 1(2)(a) of the amending S.I.) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 47(4)
F2Sch. 15 para. 14(3A) inserted (1.12.2001 in accordance with art. 1(2)(a) of the amending S.I.) by The Financial Services and Markets Act 2000 (Consequential Amendments) (Taxes) Order 2001 (S.I. 2001/3629), art. 47(5)
F3Sch. 15 para. 14(5) omitted (13.8.2009) by virtue of The Finance Act 2009, Schedule 47 (Consequential Amendments) Order 2009 (S.I. 2009/2035), art. 1, Sch. para. 24