Friendly Societies Act 1992

1 (1) Subject to sub–paragraph (2) below, this paragraph applies to a contract entered into by a friendly society to which section 37(2) above applies 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 M1 have the same meanings as in that Act.

(3) Before entering into a contract to which this paragraph applies, the society shall furnish the other party to the contract in writing with the information required by sub–paragraph (4) below.

(4) The information required by this sub–paragraph is–

(a) the name and legal form of the society;

(b) a statement that the society’s registered office is the United Kingdom and, where appropriate, the [F1 EEA State] in which is situated the overseas branch through which the contract is to be entered into;

(c) the address of the society’s registered office and, where appropriate, the address of the overseas branch through which the contract is to be entered into;

(d) a definition of each benefit and option;

(e) the term of the contract and the means by which it may be terminated;

(f) the method of paying premiums and the duration of the payments;

(g) the method of calculating bonuses and the distribution of bonuses;

(h) an indication of surrender and paid–up values and the extent to which such values are guaranteed;

(i) an indication of the premiums for each benefit, whether a main or supplementary benefit;

(j) 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;

(k) information as to the following, namely–

(i) the arrangements with respect to the period within which the other party may cancel the contract;

(ii) the tax arrangements applicable to the contract or any policy to be effected by it;

(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 society is unable to meet its liabilities under the contract; and

(m) whether the parties to the contract are entitled to choose the law applicable to the contract and–

(i) if so, the law which the society proposes to choose; and

(ii) if not, the law which will be so applicable.

(5) Any information required by sub–paragraph (4) 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 [F1 an EEA State] other than the United Kingdom.

Textual Amendments

F1 Words in Sch. 13c substituted (1.1.1998) by S.I. 1997/2849, art. 3

Marginal Citations

M1 1986 c. 60