The Insurance Companies (Overseas Life Assurance Business) (Compliance) Regulations 1995

Preliminary

Citation, commencement and effect

1.  These Regulations may be cited as the Insurance Companies (Overseas Life Assurance Business) (Compliance) Regulations 1995, shall come into force on 2nd January 1996, and shall have effect in relation to accounting periods beginning on or after 1st November 1994.

Interpretation

2.—(1) In these Regulations unless the context otherwise requires —

  • “basic life assurance and general annuity business” has the meaning given by section 431F(1);

  • “beneficiary” shall be construed in accordance with section 431D(6)(b)(1);

  • “the Board” means the Commissioners of Inland Revenue;

  • “branch” includes agency;

  • “life reinsurance business” has the meaning given by section 431C(1);

  • “pension business” has the meaning given by section 431B(1);

  • “policy holder” includes annuitant;

  • “relevant business” means—

    (a)

    in the case of an overseas life insurance company, life assurance business carried on through a branch or agency in the United Kingdom which is neither pension business nor life reinsurance business, or

    (b)

    in any other case, life assurance business which is neither pension business nor life reinsurance business;

  • “relevant policy” means any policy or contract, or any underlying policy, which has at any time been treated as relating to overseas life assurance business;

  • “relevant record” means—

    (a)

    any certificate, declaration, undertaking or other document which in these Regulations is either prescribed or specified, or

    (b)

    any other document relating to a relevant policy;

  • “settlor” shall be construed in accordance with section 431D(6)(a);

  • “underlying policy” means a policy or contract any risk arising from which is reinsured by a reinsurer in a reinsurance arrangement, and “underlying policy holder” shall be construed accordingly.

(2) Subject to paragraph (3) below, in any case where the obligations under any policy or contract of the body that issued, entered into or effected it (“the original insurer”) are at any time the obligations of another body (“the transferee”) to whom there has been a transfer of the whole or any part of a business previously carried on by the original insurer, any reference to an insurance company (however expressed) shall, unless the context otherwise requires, include the transferee.

(3) Paragraph (2) above does not apply to regulations 5 to 7, 9, 10 or 21 to 23.

(4) In these Regulations any reference to a particular provision, without more, is a reference to that provision of the Income and Corporation Taxes Act 1988.

Meaning of specified event

3.—(1) For the purposes of these Regulations, “specified event”, in relation to a policy or contract, means any of the following—

(a)any illness, accident, infirmity or death giving rise to benefits under the policy or contract,

(b)the maturity of the policy or contract,

(c)the surrender in whole, or the assignment in whole, of the rights conferred by the policy or contract,

(d)a surrender in part of the rights conferred by the policy or contract (“the relevant surrender”) as a result of which, for the first time, the total amount of the payments made by reason of the relevant surrender and of any previous surrender in part exceeds 60 per cent. of the premiums paid before the happening of the relevant surrender,

(e)an assignment of a share in the rights conferred by the policy or contract (“the relevant assignment”) as a result of which, for the first time, the value of the rights under the policy or contract which have not been the subject of any assignment is less than half the value of the rights which the policy would have had if there had been neither the relevant assignment nor any previous assignment of a share in the rights conferred by the policy or contract, and

(f)the coming into payment of an annuity other than an immediate annuity.

(2) In paragraph (1)(f) above “immediate annuity” means an annuity—

(a)where a payment to an annuitant under the annuity contract is made no later than twelve months after the date the annuity contract was made, and

(b)which has no surrender value.

(1)

Sections 431B to 432F were inserted by paragraph 2 of Schedule 8 to the Finance Act 1995.