12. For subsections (1) and (2) of section 13 of the 1982 Act (final withdrawal of authorisation) substitute—
“(1) Where—
(a)a UK company ceases to carry on insurance business or insurance business of any class in the European Community; or
(b)an insurance company which is not a UK company ceases to carry on insurance business or insurance business of any class in the United Kingdom,
the Secretary of State may direct that it shall cease to be authorised under section 3 or 4 above to carry on insurance business or insurance business of that class.
(2) If—
(a)a body authorised under section 3 above to carry on insurance business of any class has not at any time carried on insurance business of that class, and at least twelve months have elapsed since the issue of the authorisation; or
(b)a body authorised under section 4 above to carry on insurance business of any class has not at any time since the commencement of this Act carried on business of that class,
the Secretary of State may direct that the body shall cease to be authorised to carry on business of that class.”