The Insurance Companies (Amendment) Regulations 1990

Meaning of “large risks”

4.  In Part V of the Insurance Companies Act 1982, after the section inserted by regulation 2 above insert–

“Meaning of “large risks”.

96B.— (1) In this Act “large risks” means–

(a) risks falling within classes 4, 5, 6, 7, 11 and 12 of Part I of Schedule 2;

(b) risks falling within classes 14 and 15 of that Part which relate to a business carried on by the policy holder;

(c) risks falling within classes 8, 9, 13 and 16 of that Part where the policy holder carries on a business in respect of which the condition specified in subsection (2) below is met.

(2) The condition referred to in subsection (1)(c) is that at least two of the three following criteria were exceeded in the most recent financial year for which the information is available:

• First stage: until 31st December 1992–

• balance sheet total: 12.4 million ECU

• net turnover: 24 million ECU

• number of employees: 500;

• Second stage: from 1st January 1993–

• balance sheet total: 6.2 million ECU

• net turnover: 12.8 million ECU

• number of employees: 250.

(3) For the purposes of subsection (2) as it applies to a company within the meaning of section 735(1) of the Companies Act 1985(1) or Article 3 of the Companies (Northern Ireland) Order 1986(2) –

(a) “balance sheet total” has the meaning given by section 247(5) of that Act or Article 255(5) of that Order,

(b) “net turnover” has the meaning given to “turnover” by section 262(1) of that Act or Article 270(1) of that Order, and

(c) “number of employees” has the meaning given by section 247(6) of that Act or Article 255(6) of that Order;

and for a financial year which is a company’s financial year but not in fact a year, the net turnover of the company shall be proportionately adjusted.

(4) Where the policy holder is a member of a group for which consolidated accounts (within the meaning of Directive 83/349/EEC)(3) are drawn up, the question whether the condition in subsection (2) is met shall be determined by reference to those accounts.

(5) For the purposes of subsection (1)(c) as it applies where the policy holder is a professional association, joint venture or temporary grouping, the question whether the condition in subsection (2) is met shall be determined by reference to the aggregate of the relevant figures for all the members of the professional association, joint venture or temporary grouping.

(6) In this section “business” includes a trade or profession and, for the purposes of subsection (1)(c), any activity of a professional association, joint venture or temporary grouping.”.

(1)

1985 c. 6; sections 247 and 262 were inserted by sections 13 and 22 of the Companies Act 1989 (c. 40).

(2)

S.I. 1986/1032 (N.I. 6); Articles 255 and 270 were inserted by Articles 15 and 24 of the Companies (Northern Ireland) Order 1990 (S.I. 1990/593 (N.I. 5)).

(3)

O.J. No. L193, 18.7.83, p. 1.