Insurance Companies Act 1982 (repealed) (c. 50)

SCHEDULES

[F1 SCHEDULE 2G] U.K. RECOGNITION IN OTHER EEA STATES OF UK INSURERS

Textual Amendments

F1 Sch. 2G inserted (1.7.1994) by S.I. 1994/1696, reg. 46(2), Sch. 7

Modifications etc. (not altering text)

C1 Sch. 2G: Power to contract out functions conferred (18.11.1998) by S.I. 1998/2842, arts. 2, 3, Sch. Pt. I para. 61

PART I U.K. UK INSURERS CARRYING ON BUSINESS ETC. IN OTHER MEMBER STATES

Requirements for carrying on direct insurance business U.K.

1 (1) A UK insurer shall not carry on direct insurance business of a class or part of a class through a branch in a member State other than the United Kingdom unless—

(a) the insurer is authorised under section 3 or 4 of this Act to carry on insurance business of that class or part of a class or is a member of Lloyd’s; and

(b) the requirements of this paragraph have been complied with in respect of that branch.

(2) The requirements of this paragraph are—

(a) that the insurer has given to the [F2 Treasury] a notice containing the requisite EC details and, in the case of a company, the requisite UK details;

(b) that the [F2 Treasury][F3 have] given to the supervisory authority of the member State in which the branch is to be established (“the member State of the branch”)—

(i) a notice which contains the requisite EC details; and

(ii) a certificate in accordance with sub-paragraph (3) below; and

(c) that either—

(i) that authority has informed the [F2 Treasury] of the conditions which, in the interest of the general good, must be complied with by the insurer in carrying on insurance business through the branch; or

(ii) the period of two months beginning with the day on which the [F2 Treasury] gave that authority the certificate mentioned in paragraph (b) above has elapsed.

(3) A certificate is in accordance with this sub-paragraph if it—

(a) attests that the insurer has the minimum margin of solvency calculated in accordance with such of the following as are appropriate—

(i) Articles 16 and 17 of the first general insurance Directive, and

(ii) Articles 18, 19 and 20 of the first long term insurance Directive; and

(b) indicates the classes of insurance business which the insurer is authorised to carry on in the United Kingdom.

(4) The [F2 Treasury] shall, within the period of three months beginning with the date onwhich the insurer’s notice was received—

(a) give the notice and certificate referred to in sub-paragraph (2)(b) above; or

(b) refuse to give either or both of those documents.

(5) The [Treasury] shall, within the period of three months referred to in sub-paragraph(4) above, notify the insurer—

(a) that [F4 they have] given the notice and certificate referred to in sub-paragraph (2)(b) above, stating the date on which [F5 they did] so; or

(b) that [F4 they have] refused to give either or both of those documents, stating the reasons for the refusal.

(6) In the case of a UK company, the [F2 Treasury] shall not refuse to give the notice referred to in sub-paragraph (2)(b) above unless, having regard to the business to be carried on through the branch, it appears to [F6 them] that the criteria of sound and prudent management would not or might not continue to be fulfilled in respect of the company.

(7) Where the supervisory authority of the member State of the branch has informed the [F2 Treasury] as mentioned in sub-paragraph (2)(c)(i) above, [F7 the Treasury]shall forward the information to the insurer.

Textual Amendments

F2 Word in Sch. 2G para. 1 substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 88 (with art. 7)

F3 Word in Sch. 2G para. 1(2)(b) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 89(a) (with art. 7)

F4 Words in Sch. 2G para. 1(5) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 89(b)(i)(with art. 7)

F5 Words in Sch. 2G para. 1(5)(a) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 89(b)(ii)(with art. 7)

F6 Word in Sch. 2G para. 1(6) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 89(c) (with art. 7)

F7 Words in Sch. 2G para. 1(7) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 89(d) (with art. 7)

2 (1) A UK insurer shall not change the requisite EC details of a branch—

(a) which has been established by it in a member State other than the United Kingdom (“the member State of the branch”); and

(b) through which it carries on direct insurance business,

unless the requirements of this paragraph have been complied with in relation to its making of the change.

(2) Subject to sub-paragraph (3) below, the requirements of this paragraph are—

(a) that the insurer has given a notice to the [F8 Treasury], and to the supervisory authority in the member State of the branch, stating the details of the proposed change not less than one month before the change is to take place;

(b) that the [F8 Treasury][F9 have] sent to that authority a notice in accordance with sub-paragraph (4)(a) below; and

(c) that either—

(i) that authority has informed the insurer of any consequential changes in the conditions which, in the interest of the general good, must be complied with by the insurer in carrying on insurance business through the branch; or

(ii) the period of two months beginning with the day on which the insurer gave that authority the notice of the proposed change in accordance with paragraph (a) above has elapsed.

(3) In the case of a change occasioned by circumstances beyond the insurer’s control, the requirements of this paragraph are that the insurer shall as soon as practicable (whether before or after the change) give a notice to the [F8 Treasury], and to the supervisory authority in the member State of the branch, stating the details of the change.

(4) The [F8 Treasury] shall, as soon as practicable after receiving a notice under sub-paragraph(2)(a) above—

(a) give notice to the supervisory authority in the member State of the branch informing it of the proposed change; or

(b) refuse to give such notice.

(5) The [F8 Treasury] shall, as soon as practicable after making a decision under sub-paragraph (4) above, notify the insurer—

(a) that [F10 they have] given the notice referred to in that sub-paragraph, stating the date on which [F10 they did] so; or

(b) that [F11 they] refused to give the notice, stating the reasons for that refusal.

(6) In the case of a UK company, the [F8 Treasury] shall not refuse to give the notice referred to in sub-paragraph (4)(a) above unless, having regard to the proposed change, it appears to [F12 them] that the criteria of sound and prudent management would not or might not continue to be fulfilled in respect of the company.

Textual Amendments

F8 Word in Sch. 2G para. 2 substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 88 (with art. 7)

F9 Word in Sch. 2G para. 2(2)(b) substituted (5.1.1998) by S.I. 1997/2781, arts. 2(1)(c), 8, Sch. Pt. I para. 90(a) (with art. 7)

F10 Words in Sch. 2G para. 2(5)(a) substituted (5.1.1998) by S.I. 1997/2781, arts. 2(1)(c), 8, Sch. Pt. I para. 90(b)(i) (with art. 7)

F11 Word in Sch. 2G para. 2(5)(b) substituted (5.1.1998) by S.I. 1997/2781, arts. 2(1)(c), 8, Sch. Pt. I para. 90(b)(ii) (with art. 7)

F12 Word in Sch. 2G para. 2(6) substituted (5.1.1998) by S.I. 1997/2781, arts. 2(1)(c), 8, Sch. Pt. I para. 90(c) (with art. 7)

3 (1) A UK company shall not change the requisite UK details of a branch—

(a) which has been established by it in a member State other than the United Kingdom; and

(b) through which it carries on direct insurance business,

unless the requirements of this paragraph have been complied with in relation to its making of the change.

(2) Subject to sub-paragraph (3) below, the requirements of this paragraph are that the company has given a notice to the [F13 Treasury] stating the details of the proposed change at least one month before the change is effected.

(3) In the case of a change occasioned by circumstances beyond the company’s control, the requirements of this paragraph are that the company shall as soon as practicable (whether before or after the change) give a notice to the [F13 Treasury] stating the details of the change.

Textual Amendments

F13 Word in Sch. 2G para. 3(2)(3) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 88 (with art. 7)

Requisite details for purposes of paragraphs 1 to 3 U.K.

4 (1) The requisite EC details for the purposes of paragraphs 1 and 2 above are—

(a) the member State in which the branch is to be or has been established (“the member State of the branch”);

(b) the address of the branch and confirmation that it is an address for service on the insurer’s authorised agent;

(c) the name of the insurer’s authorised agent and, in the case of a member of Lloyd’s, confirmation that the authorised agent has power to accept service of proceedings on behalf of Lloyd’s;

(d) the classes or parts of classes of business to be carried on, and nature of the risks or commitments to be covered, in the member State of the branch;

(e) details of the structural organisation of the branch;

(f) the guiding principles as to reinsurance of business to be carried on in the member State of the branch, including the insurer’s maximum retention per risk or event after all reinsurance ceded;

(g) estimates of the following, namely—

(i) the costs of installing administrative services and the organisation for securing business in the member State of the branch;

(ii) the resources available to cover those costs; and

(iii) if risks within class 18 of Schedule 2 to this Act are to be covered, the resources available for providing assistance;

(h) for each of the first three financial years following the establishment of the branch—

(i) estimates of the insurer’s margin of solvency and the margin of solvency required, and a statement showing how both have been calculated;

(ii) in the case of an insurer which intends to carry on long term business, the details mentioned in sub-paragraph (2) below as respects the business to be carried on in the member State of the branch; and

(iii) in the case of an insurer which intends to carry on general business, the details mentioned in sub-paragraph (3) below as respects the business to be so carried on;

(i) in the case of an insurer which intends to cover relevant motor vehicle risks, confirmation that it has become a member of the national bureau and the national guarantee fund in the member State of the branch; and

(j) in the case of an insurer which intends to cover health insurance risks, the technical bases which will be used for calculating premiums in respect of such risks.

(2) The details referred to in sub-paragraph (1)(h)(ii) above are—

(a) a statement showing, on both optimistic and pessimistic bases, for each type of contract or treaty—

(i) the number of contracts or treaties expected to be issued;

(ii) the total premium income, both gross and net of reinsurance ceded;

(iii) the total sums assured or the total amounts payable each year by way of annuity;

(b) a statement setting out, on both optimistic and pessimistic bases, detailed estimates of income and expenditure in respect of direct business, reinsurance acceptances and reinsurance cessions; and

(c) estimates relating to the financial resources intended to cover underwriting liabilities.

(3) The details referred to in sub-paragraph (1)(h)(iii) above are—

(a) estimates relating to expenses of management (other than costs of installation), and in particular those relating to current general expenses and commissions;

(b) estimates relating to premiums or contributions (both gross and net of all reinsurance ceded) and to claims (after all reinsurance recoveries); and

(c) estimates relating to the financial resources intended to cover underwriting liabilities.

(4) The requisite UK details for the purposes of paragraphs 1 and 3 above are—

(a) the names of the company’s managers and main agents in the member State of the branch;

(b) particulars of any association which exists or is proposed to exist between—

(i) the directors and the controllers of the company; and

(ii) any person who will act as an insurance broker, agent, loss adjuster or reinsurer for the company in the member State of the branch;

(c) the names of the principal reinsurers of business to be carried on in the member State of the branch;

(d) the sources of business in the member State of the branch (for example, insurance brokers, agents, own employees or direct selling) with the approximate percentage expected from each of those sources;

(e) copies or drafts of the following, namely—

(i) any separate reinsurance treaties covering business to be written in the member State of the branch;

(ii) any standard agreements which the company will enter into with brokers or agents in the member State of the branch;

(iii) any agreements which the company will enter into with persons (other than employees of the company) who will manage the business to be carried on in the member State of the branch;

(f) in the case of a company which intends to carry on long term business—

(i) the technical bases which the actuary appointed in accordance with section 19 above proposes to use for each class of business to be carried on in the member State of the branch, including the bases needed for calculating premium rates and mathematical reserves;

(ii) a statement by the actuary so appointed as to whether he considers that the premium rates which will be used in the member State of the branch are suitable;

(iii) a statement by that actuary as to whether he agrees with the information provided under sub-paragraphs (1)(f) and (2)(b) and (c) above; and

(iv) the technical bases used to calculate the statements and estimates referred to in sub-paragraph (2) above; and

(g) in the case of a company which intends to carry on general business, copies or drafts of any agreements which the company will have with main agents in the member State of the branch.

(5) In this paragraph “authorised agent” means an agent or employee of the insurer who has authority—

(a) to bind the insurer in its relations with third parties; and

(b) to represent the insurer in its relations with supervisory authorities and courts in the member State of the branch.

Requirements for providing insurance U.K.

5 (1) A UK insurer shall not provide insurance of any class or part of a class in a member State other than the United Kingdom unless the insurer is authorised under section 3 or 4 above to carry on insurance of that class or part of a class or is a member of Lloyd’s and either—

(a) the requirements of this paragraph have been complied with in relation to the provision of the insurance in that member State; or

(b) the insurance is provided by the insurer participating in a Community co-insurance operation otherwise than as the leading insurer.

(2) The requirements of this paragraph are—

(a) that the insurer has given to the [F14 Treasury] a notice containing the requisite details; and

(b) that the [F14 Treasury][F15 have] given to the supervisory authority in the member State in which the insurance is to be provided—

(i) a notice which contains the requisite details; and

(ii) a certificate in accordance with sub-paragraph (3) below.

(3) A certificate is in accordance with this sub-paragraph if it—

(a) attests that the insurer has the minimum margin of solvency calculated in accordance with such of the following as are appropriate—

(i) Articles 16 and 17 of the first general insurance Directive, and

(ii) Articles 18, 19 and 20 of the first long term insurance Directive; and

(b) indicates the classes of insurance business which the insurer is authorised to carry on in the United Kingdom.

(4) Where the insurer intends to provide insurance in more than one member State, the requisite details may be contained in a single notification but must be set out separately in relation to each member State.

(5) The [F14 Treasury] shall, within the period of one month beginning with the date on which the insurer’s notice was received—

(a) give the notice and certificate referred to in sub-paragraph (2)(b) above to the supervisory authority in the member State in which the insurer intends to provide insurance; or

(b) refuse to give either or both of those documents.

(6) The [F14 Treasury] shall, within the period of one month referred to in sub-paragraph (5) above, notify the insurer—

(a) that [F16 they have] given the notice and certificate referred to in sub-paragraph (2)(b) above to the supervisory authority in the member State in which the insurer intends to provide insurance, stating the date on which [F16 they did] so; or

(b) that [F17 they have] refused to give either or both those documents, stating the reasons for the refusal.

(7) In the case of a UK company, the [F14 Treasury] shall not refuse to give the notice referred to in sub-paragraph (2)(b) above unless, having regard to the insurance to be provided in the member State, it appears to [F18 them] that the criteria of sound and prudent management would not or might not continue to be fulfilled in respect of the company.

Textual Amendments

F14 Word in Sch. 2G para. 5 substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 88 (with art. 7)

F15 Word in Sch. 2G para. 5(2)(b) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 91(a) (with art. 7)

F16 Words in Sch. 2G para. 5(6)(a) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 91(b)(i) (with art. 7)

F17 Words in Sch. 2G para. 5(6)(b) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 91(b)(ii) (with art. 7)

F18 Word in Sch. 2G para. 5(7) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 91(c) (with art. 7)

6 (1) A UK insurer shall not change the requisite details of the provision of insurance in a member State other than the United Kingdom unless the requirements of this paragraph have been complied with in relation to its making of the change.

(2) The requirements of this paragraph are—

(a) that the insurer has given a notice to the [F19 Treasury] stating the details of the proposed change;

(b) that the [F19 Treasury][F20 have] sent to the supervisory authority in the member State in which the insurance is provided a notice in accordance with sub-paragraph (4)(a) below.

(3) In the case of a change occasioned by circumstances beyond the insurer’s control, the requirements of this paragraph are that the insurer shall as soon as practicable give a notice to the [F19 Treasury] stating the details of the change.

(4) The [F19 Treasury] shall, as soon as practicable after receiving a notice under sub-paragraph (2)(a) above either—

(a) give notice to the supervisory authority in the member State in which the insurance is provided informing it of the proposed change; or

(b) refuse to give such notice.

(5) The [F19 Treasury] shall, as soon as practicable after making a decision under sub-paragraph (4) above, notify the insurer—

(a) that [F21 they have]given the notice referred to in that sub-paragraph, stating the date on which [F21 they did] so; or

(b) that [F22 they have] refused to give the notice, stating the reasons for the refusal.

(6) In the case of a UK company, the [F19 Treasury] shall not refuse to give the notice referred to in sub-paragraph (4)(a) above unless, having regard to the proposed change, it appears to [F23 them] that the criteria of sound and prudent management would not or might not continue to be fulfilled in respect of the company.

Textual Amendments

F19 Word in Sch. 2G para. 6 substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 88 (with art. 7)

F20 Word in Sch. 2G para. 6(2)(b) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 92(a) (with art. 7)

F21 Words in Sch. 2G para. 6(5)(a) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 92(b)(i)(with art. 7)

F22 Words in Sch. 2G para. 6(5)(b) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 92(b)(ii) (with art. 7)

F23 Word in Sch. 2G para. 6(6) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 92(c) (with art. 7)

Requisite details for purposes of paragraphs 5 and 6 U.K.

7 The requisite details for the purposes of paragraphs 5 and 6 above are—

(a) the member State in which the insurance is to be provided;

(b) the nature of the risks or commitments which the insurer proposes to cover in that State;

(c) in the case of an insurer which intends to provide insurance to cover relevant motor vehicle risks—

(i) a notice stating the name and address of the claims representative; and

(ii) a declaration that the insurer has become a member of the national bureau and the national guarantee fund in that State; and

(d) in the case of an insurer which intends to cover health insurance risks, the technical bases which will be used for calculating premiums in respect of such risks.

Requirement to notify cessation of insurance business etc. U.K.

8 (1) A UK insurer which has ceased—

(a) to carry on direct insurance business through a branch in a member State other than the United Kingdom; or

(b) to provide insurance in such a member State,

shall as soon as practicable notify the [F24 Treasury] in writing that it has done so.

(2) Any insurance which is provided by the insurer participating in a Community co-insuranceoperation otherwise than as the leading insurer shall be disregarded for the purposes of this paragraph.

Textual Amendments

F24 Word in Sch. 2G para. 8(1) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 88 (with art. 7)

PART II U.K. UK INSURERS PROVIDING INSURANCE IN EFTA STATES

Notification to Secretary of State U.K.

9 (1) Where a UK insurer intends to provide insurance in an EFTA State, it shall before doing so notify the [F25 Treasury] in writing of its intention.

(2) The notification shall indicate—

(a) the EFTA State in which the insurance is to be provided,

(b) the EEA State in which is situated the establishment through which the insurance will be provided (“the EEA State of establishment”), and

(c) the nature of the risks or commitments which the insurer proposes to cover.

(3) Where the insurer intends to provide insurance in more than one EFTA State, the information specified above may be contained in a single notification but must be set out separately in relation to each such State.

(4) Where a UK insurer has duly notified the [F25 Treasury] of its intention to provide insurance in an EFTA State where administrative authorisation is required for the provision of insurance, then, if the original notification related—

(a) only to risks or commitments in respect of which such authorisation is required, or

(b) only to risks or commitments in respect of which such authorisation is not required,

and the insurer subsequently intends to extend its activities to risks falling within the other category, it shall before doing so comply with sub-paragraphs (1) to (3) above in relation to those risks or commitments.

(5) Any insurance which is provided by the insurer participating in a Community co-insurance operation otherwise than as the leading insurer shall be disregarded for the purposes of this paragraph.

Textual Amendments

F25 Word in Sch. 2G para. 9(1)(4) substituted (5.1.1998) by S.I. 1997/2781, arts. 2(1)(c), 8, Sch. Pt. I para. 88 (with art. 7)

Issue of certificates by Secretary of State U.K.

10 (1) A UK insurer which intends to provide insurance in an EFTA State may apply to the [F26 Treasury] for a certificate—

(a) attesting that the insurer possesses for its activities as a whole the minimum solvency margin calculated in accordance with the relevant provisions;

(b) indicating the classes of business which the insurer is authorised to carry on in the United Kingdom;

(c) stating that the [F26 Treasury][F27 do] not object to the insurer providing the insurance; and

(d) in the case of a company, attesting that the company’s authorisation to carry on business in the United Kingdom, issued in accordance with Article 7(1) of the relevant Directive, enables the company to carry on business outside the EEA State of establishment.

(2) If it appears to the [F26 Treasury] that a certificate applied for under sub-paragraph (1) above ought to be issued, [F28 they] shall issue the certificate accordingly.

(3) If the [F26 Treasury][F29 refuse] to issue a certificate, [F30 they]shall inform the company in writing of [F31 their] decision and of the reasons for it.

(4) In sub-paragraph (1) above “the relevant Directive” and “the relevant provisions” mean respectively—

(a) if the company intends to cover risks, the first general insurance Directive and Articles 16 and 17 of that Directive;

(b) if the company intends to cover commitments, the first long term insurance Directive and Articles 18, 19 and 20 of that Directive.

Textual Amendments

F26 Word in Sch. 2G para. 10 substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 88 (with art. 7)

F27 Word in Sch. 2G para. 10(1)(c) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 93(a) (with art. 7)

F28 Word in Sch. 2G para. 10(2) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 93(b) (with art. 7)

F29 Word in Sch. 2G para. 10(3) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 93(c)(i) (with art. 7)

F30 Word in Sch. 2G para. 10(3) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 93(c)(ii) (with art. 7)

F31 Word in Sch. 2G para. 10(3) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 93(c)(iii) (with art. 7)

PART III U.K. UK INSURERS PROVIDING INSURANCE IN THE UNITED KINGDOMTHROUGH BRANCHES IN OTHER EEA STATES

11 (1) Where a UK insurer intends to provide insurance in the United Kingdom, it shall before doing so notify the [F32 Treasury] in writing of its intention.

(2) The notification shall indicate—

(a) the EEA State in which is situated the branch through which the company intends to provide insurance in the United Kingdom; and

(b) the nature of the risks or commitments which the insurer proposes to cover in the United Kingdom.

(3) Where the EEA State in which is situated the branch through which the company intends to provide insurance in the United Kingdom is an EFTA State, the notification shall be accompanied by a certificate, issued by the supervisory authority in that State, which—

(a) indicates the classes of insurance business which the company has been authorised to undertake through that branch;

(b) states that the authority does not object to the company providing insurance in the United Kingdom; and

(c) where the company intends to provide long term insurance in the United Kingdom, confirms that all the commitments which the company intends to cover fall within the classes of insurance business which the company has been authorised to undertake through that branch.

(4) The insurer shall notify the [F32 Treasury] in writing if—

(a) it changes either of the details notified to the [F32 Treasury] under sub-paragraph (2) above; or

(b) it ceases to provide insurance in the United Kingdom.

(5) Any insurance which is provided by the insurer participating in a Community co-insurance operation otherwise than as the leading insurer shall be disregarded for the purposes of this paragraph.

Textual Amendments

F32 Word in Sch. 2G para. 11 substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 88 (with art. 7)

PART IV U.K. SUPPLEMENTAL

Offences U.K.

12 (1) A UK insurer commits an offence if—

(a) it carries on insurance business in a member State other than the United Kingdom in contravention of paragraph 1 above;

(b) in contravention of paragraph 2 or 3 above, it changes the requisite EC details or, as the case may be, the requisite UK details of a branch established by it in such a member State;

(c) it provides insurance in such a member State in contravention of paragraph 5 above;

(d) in contravention of paragraph 6 above, it changes the requisite details relating to the provision of insurance in such a member State; or

(e) it makes default in complying with, or with a requirement imposed under, any other provision of this Schedule.

(2) A person commits an offence if he causes or permits to be included in a notification sent to the [F33 Treasury] under paragraph 1, 2, 3, 5 or 6 above a statement which he knows to be false in a material particular or recklessly causes or permits to be so included a statement which is false in a material particular.

(3) A person committing an offence under this paragraph is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

Textual Amendments

F33 Words in Sch. 2G para. 12 substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 88 (with art. 7)

Interpretation U.K.

13 (1) In this Schedule—

“direct insurance business” means insurance business other than reinsurance business;

“health insurance risks”, in relation to a member State, means risks falling within class 2 of Schedule 2 to this Act (sickness) where—

(a) insurance contracts covering those risks serve as a partial or complete alternative to the health cover provided by the statutory social security system in that State; and

(b) the law of that State requires such contracts to be operated on a technical basis similar to life assurance in accordance with all the conditions listed in the first sub-paragraph of Article 54(2) of the third general insurance Directive;

“national bureau”, in relation to a member State, means a professional organisation—

(a) which has been constituted in that State in accordance with Recommendation No 5 adopted on 25th January 1949 by the Road Transport Sub-committee of the Inland Transport Committee of the United Nations Economic Commission for Europe; and

(b) which groups together insurance undertakings which in that State are authorised to conduct the business of motor vehicle liability insurance;

“national guarantee fund”, in relation to a member State, means a body—

(a) which has been set up or authorised in that State in accordance with Article 1(4) of Council Directive 84/5/EEC F34 ; and

(b) which provides compensation for damage to property or personal injuries caused by unidentified vehicles or vehicles for which the insurance obligation provided for in Article 1(1) of that Directive has not been satisfied;

“UK insurer” means a UK company or a member of Lloyd’s.

(2) In this Schedule—

(a) references in Part I to the provision of insurance in a member State other than the United Kingdom are references to the covering (otherwise than by way of reinsurance) of a risk or commitment situated in that member State through an establishment in another member State;

(b) references in Part II to the provision of insurance in an EFTA State are references to the covering (otherwise than by way of reinsurance) of a risk or commitment situated in that EFTA State through an establishment in another EEA State;

(c) references in Part III to the provision of insurance in the United Kingdom are references to the covering (otherwise than by way of reinsurance) of a risk or commitment situated in the United Kingdom—

(i) through an establishment in another member State; or

(ii) through an establishment in an EFTA State.

(3) In sub-paragraph 2(b) and (c)(ii) above—

(a) references to a risk do not include a risk falling within any of the following classes of Schedule 2 to this Act (general business), namely—

• class 1, so far as it relates to accidents at work;

• classes 9 and 13, so far as they relate to the compulsory insurance of building works;

• class 13, so far as it relates to nuclear civil liability and pharmaceutical product liability; and

(b) references to a commitment do not include a commitment falling within any of classes VII, VIII and IX of Schedule 1 to this Act (long term insurance).

Textual Amendments

F34 O.J. L8, 11.1.84, page 17.

SCHEDULES

Section 1.

SCHEDULE 1 U.K. Classes of Long Term Business

Number	Description	Nature of business
I	Life and annuity.	Effecting and carrying out contracts of insurance on human life or contracts to pay annuities on human life, but excluding (in each case) contracts within Class III below.
II	Marriage and birth.	Effecting and carrying out contracts of insurance to provide a sum on marriage or on the birth of a child, being contracts expressed to be in effect for a period of more than one year.
III	Linked long term.	Effecting and carrying out contracts of insurance on human life or contracts to pay annuities on human life where the benefits are wholly or partly to be determined by reference to the value of, or the income from, property of any description (whether or not specified in the contracts) or by reference to fluctuations in, or in an index of, the value of property of any description (whether or not so specified).
IV	Permanent health.	Effecting and carrying out contracts of insurance providing specified benefits against risks of persons becoming incapacitated in consequence of sustaining injury as a result of an accident or of an accident of a specified class or of sickness or infirmity, being contracts that—
		(a) are expressed to be in effect for a period of not less than five years, or until the normal retirement age for the persons concerned, or without limit of time, and
		(b) either are not expressed to be terminable by the insurer, or are expressed to be so terminable only in special circumstances mentioned in the contract.
V	Tontines.	Effecting and carrying out tontines.
VI	Capital redemption.	Effecting and carrying out capital redemption contracts.
VII	Pension fund management.	Effecting and carrying out—
		(a) contracts to manage the investments of pension funds, or
		(b) contracts of the kind mentioned in paragraph (a) above that are combined with contracts of insurance covering either conservation of capital or payment of a minimum interest.
[F35 VIII	Collective insurance etc.	Effecting and carrying out contracts of a kind referred to in Article 1(2)(e) of the first long term insurance Directive.
IX	Social insurance	Effecting and carrying out contracts of a kind referred to in Article 1(3) of the first long term insurance Directive.]

Textual Amendments

F35 Classes VIII, IX in Sch. 1 inserted (1.7.1994) by S.I. 1994/1696, reg. 3

Sections 1 and 3.

SCHEDULE 2 U.K. General Business

Part I U.K. Classes

Number	Description	Nature of business
1	Accident.	Effecting and carrying out contracts of insurance providing fixed pecuniary benefits or benefits in the nature of indemnity (or a combination of both) against risks of the person insured or, in the case of a contract made by virtue of section 140, 140A or 140B of the Local Government Act 1972 [F36 or section 2 of the Police (Insurance of Voluntary Assistants) Act 1997], a person for whose benefit the contract is made—
		(a) sustaining injury as the result of an accident or of an accident of a specified class, or
		(b)dying as the result of an accident or of an accident of a specified class, or
		(c)becoming incapacitated in consequence of disease or of disease of a specified class,
		inclusive of contracts relating to industrial injury and occupational disease but exclusive of contracts falling within class 2 below or within class IV in Schedule 1 to this Act (permanent health).
2	Sickness.	Effecting and carrying out contracts of insurance providing fixed pecuniary benefits or benefits in the nature of indemnity (or a combination of the two) against risks of loss to the persons insured attributable to sickness or infirmity, but exclusiove of contracts falling within class IV in Schedule 1 to this Act.
3	Land vehicles.	Effecting and carrying out contracts of insurance against loss of or damage to vehicles used on land, including motor vehicles but excluding railway rolling stock.
4	Railway rolling stock.	Effecting and carrying out contracts of insurance against loss of or damage to railway rolling stock.
5	Aircraft.	Effecting and carrying out contracts of insurance upon aircraft or upon the machinery, tackle, furniture or equipment of aircraft.
6	Ships.	Effecting and carrying out contracts of insurance upon vessels used on the sea or on inland water, or upon the machinery, tackle, furniture or equipment of such vessels.
7	Goods in transit.	Effecting and carrying out contracts of insurance against loss of or damage to merchandise, baggage and all other goods in transit, irrespective of the form of transport.
8	Fire and natural forces.	Effecting and carrying out contracts of insurance against loss of or damage to property (other than property to which classes 3 to 7 above relate) due to fire, explosion, storm, natural forces other than storm, nuclear energy or land subsidence.
9	Damage to property.	Effecting and carrying out contracts of insurance against loss of or damage to property (other than property to which classes 3 to 7 above relate) due to hail or frost or to any event (such as theft) other than those mentioned in class 8 above.
10	Motor vehicle liability.	Effecting and carrying out contracts of insurance against damage arising out of or in connection with the use of motor vehicles on land, including third-party risks and carrier’s liability.
11	Aircraft liability.	Effecting and carrying out contracts of insurance against damage arising out of or in connection with the use of aircraft, including third-party risks and carrier’s liability.
12	Liability for ships.	Effecting and carrying out contracts of insurance against damage arising out of or in connection with the use of vessels on the sea or on inland water, including third-party risks and carrier’s liability.
13	General liability.	Effecting and carrying out contracts of insurance against risks of the persons insured incurring liabilities to third parties, the risks in question not being risks to which class 10, 11 or 12 above relates.
14	Credit.	Effecting and carrying out contracts of insurance against risks of loss to the persons insured arising from the insolvency of debtors of theirs or from the failure (otherwise than through insolvency) of debtors of theirs to pay their debts when due.
15	Suretyship.	Effecting and carrying out—
		(a) contracts of insurance against risks of loss to the persons insured arising from their having to perform contracts of guarantee entered into by them;
		(b) contracts for fidelity bonds, performance bonds, administration bonds, bail bonds or customs bonds or similar contracts of guarantee.
16	Miscellaneous financial loss.	Effecting and carrying out contracts of insurance against any of the following risks, namely—
		(a) risks of loss to the persons insured attributable to interruptions of the carrying on of business carried on by them or to reduction of the scope of business so carried on;
		(b) risks of loss to the persons insured attributable to their incurring unforeseen expense [F37 (other than loss such as is covered by contracts falling within class 18 below)];
		(c) risks neither falling within paragraph (a) or (b) above nor being of a kind such that the carrying on of the business of effecting and carrying out contracts of insurance against them constitutes the carrying on of insurance business of some other class.
17	Legal expenses.	Effecting and carrying out contracts of insurance against risks of loss to the persons insured attributable to their incurring legal expenses (including costs of litigation).
[F38 18]	[F38 Assistance]	[F38 Effecting and carrying out contracts of insurance providing either or both of the following benefits, namely—]
		[F38 (a) assistance (whether in cash or in kind) for persons who get into difficulties while travelling, while away from home or while away from their permanent residence, or]
		[F38 (b) assistance (whether in cash or in kind) for persons who get into difficulties otherwise than as mentioned in paragraph (a) above.]

Textual Amendments

F36 Words in Sch. 2 Pt. I inserted (E.W.) (21.3.1997) by 1997 c. 45, s. 3

F37 Words added by S.I. 1987/2130, reg. 2(b)(i)

F38 Class 18 added by S.I. 1987/2130, reg. 2(b)(ii)

Part II U.K. Groups of Classes

Modifications etc. (not altering text)

C2 Pt. II Group 1 extended by S.I. 1984/1821 (N.I. 11), art. 17(3)

Number	Description	Nature of business
1	Accident and health.	Classes 1 and 2.
2	Motor.	Class 1 (to the extent that the relevant risks are risks of the person insured sustaining injury, or dying, as the result of travelling as a passenger) and classes 3, 7 and 10.
3	Marine and transport.	Class 1 (to the said extent) and classes 4, 6, 7 and 12.
4	Aviation.	Class 1 (to the said extent) and classes 5, 7 and 11.
5	Fire and other damage to property.	Classes 8 and 9.
6	Liability.	Classes 10, 11, 12 and 13.
7	Credit and suretyship.	Classes 14 and 15.
8	General.	All classes.

Section 7.

[F39 SCHEDULE 3 U.K. Determination of Premium Limit]

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F39 Sch. 3 ceased to have effect (1.7.1994) by virtue of S.I. 1994/1696, regs. 7(2), 68(3)

[F40 SCHEDULE 3A U.K. Law applicable to certain contracts of insurance]

Textual Amendments

F40 Schedule 3A inserted by S.I. 1990/1333, reg. 6(2)

[F41 PART I U.K. general BUSINESS]

Textual Amendments

F41 By virtue of S.I. 1993/174, reg. 5(4)(5) the provisions of Sch. 3A have become (20.5.1993) Pt. I of that Sch. under that heading “GENERAL BUSINESS” and Pt. II of Sch. 3A inserted

X1 General rules as to applicable law U.K.

Editorial Information

X1 The existing provisions of Sch. 3A (paras. 1-5) became Sch. 1A Pt. I with effect from 20.05.1993 when a new Pt. I heading was inserted. Versions of those provisions as they stood at any time before that date cannot be accessed by navigation from this version. To view those versions, it is recommended that users either conduct an 'advanced search' specifying an 'as at' date earlier than 20.05.1993 or navigate via the Sch. 3A heading.

X2 1 (1) Where the policy holder has his habitual residence or central administration within the territory of the member State where the risk is situated, the law applicable to the contract is the law of that member State.

However, where the law of that member State so allows, the parties may choose the law of another country.

(2) Where the policy holder does not have his habitual residence or central administration within the territory of the member State where the risk is situated, the parties to the contract may choose to apply either—

(a) the law of the member State where the risk is situated, or

(b) the law of the country in which the policy holder has his habitual residence or central administration.

(3) Where the policy holder carries on a business and the contract covers two or more risks relating to his business which are situated in different member States, the freedom of choice of the law applicable to the contract extends to the laws of those member States and of the country in which he has his habitual residence or central administration.

In this sub-paragraph “business” includes a trade or profession.

(4) Where the member States referred to in sub-paragraph (2) or (3) grant greater freedom of choice of the law applicable to the contract, the parties may take advantage of that freedom.

(5) Notwithstanding sub-paragraphs (1) to (3), when the risks covered by the contract are limited to events occurring in a member State other than the member State where the risk is situated, the parties may always choose the law of the former State.

[F42 (6) Where the risk—

(a) is situated in an EFTA state and falls within class 4, 5, 6, 7, 11 or 12 of Part I of Schedule 2 to this Act; or

(b) is situated in a member State and is a large risk,

the parties to the contract may choose any law.

(7) Where the risk is situated in a member State which has implemented the transitional provisions in Article 27 of the second general insurance Directive, the meaning of 'large risk’ for the purposes of sub-paragraph (6) above shall be determined in accordance with the law applicable in that State.]

Editorial Information

X2 The existing provisions of Sch. 3A (paras. 1-5) became Sch. 1A Pt. I with effect from 20.05.1993 when a new Pt. I heading was inserted. Versions of those provisions as they stood at any time before that date cannot be accessed by navigation from this version. To view those versions, it is recommended that users either conduct an 'advanced search' specifying an 'as at' date earlier than 20.05.1993 or navigate via the Sch. 3A heading

Textual Amendments

F42 Sch. 3A para. 1(6)(7) substituted (1.7.1994) for Sch. 3A para. 1(6) by S.I. 1994/1696, reg. 49

X3 Applicable law in the absence of choice U.K.

Editorial Information

X3 The existing provisions of Sch. 3A (paras. 1-5) became Sch. 1A Pt. I with effect from 20.05.1993 when a new Pt. I heading was inserted. Versions of those provisions as they stood at any time before that date cannot be accessed by navigation from this version. To view those versions, it is recommended that users either conduct an 'advanced search' specifying an 'as at' date earlier than 20.05.1993 or navigate via the Sch. 3A heading.

X4 2 (1) The choice referred to in paragraph 1 must be expressed or demonstrated with reasonable certainty by the terms of the contract or the circumstances of the case.

(2) If that is not so, or if no choice has been made, the contract shall be governed by the law of the country (from amongst those considered in the relevant sub-paragraphs) with which it is most closely connected.

(3) Nevertheless, a severable part of the contract which has a closer connection with another country (from amongst those considered in the relevant sub-paragraphs) may by way of exception be governed by the law of that other country.

(4) A contract is rebuttably presumed to be most closely connected with the member State where the risk is situated.

Editorial Information

X4 The existing provisions of Sch. 3A (paras. 1-5) became Sch. 1A Pt. I with effect from 20.05.1993 when a new Pt. I heading was inserted. Versions of those provisions as they stood at any time before that date cannot be accessed by navigation from this version. To view those versions, it is recommended that users either conduct an 'advanced search' specifying an 'as at' date earlier than 20.05.1993 or navigate via the Sch. 3A heading.

X5 Mandatory rules U.K.

Editorial Information

X5 The existing provisions of Sch. 3A (paras. 1-5) became Sch. 1A Pt. I with effect from 20.05.1993 when a new Pt. I heading was inserted. Versions of those provisions as they stood at any time before that date cannot be accessed by navigation from this version. To view those versions, it is recommended that users either conduct an 'advanced search' specifying an 'as at' date earlier than 20.05.1993 or navigate via the Sch. 3A heading.

X6 3 (1) The fact that in the cases referred to in paragraph 1 the parties have chosen a law does not, where all the other elements relevant to the situation at the time of the choice are connected with one member State only, prejudice the application of the mandatory rules of the law of that member State, which means the rules from which the law of that member State allows no derogation by means of a contract.

(2) Nothing in [F43 this Part of this Schedule]restricts the application of the rules of a part of the United Kingdom in a situation where they are mandatory, irrespective of the law otherwise applicable to the contract.

Editorial Information

X6 The existing provisions of Sch. 3A (paras. 1-5) became Sch. 1A Pt. I with effect from 20.05.1993 when a new Pt. I heading was inserted. Versions of those provisions as they stood at any time before that date cannot be accessed by navigation from this version. To view those versions, it is recommended that users either conduct an 'advanced search' specifying an 'as at' date earlier than 20.05.1993 or navigate via the Sch. 3A heading.

Textual Amendments

F43 Words in Sch. 3 paras. 3(2) substituted (20.5.1993) by S.I. 1993/174, reg. 5(4)(a)

X7 Supplementary provisions U.K.

Editorial Information

X7 The existing provisions of Sch. 3A (paras. 1-5) became Sch. 1A Pt. I with effect from 20.05.1993 when a new Pt. I heading was inserted. Versions of those provisions as they stood at any time before that date cannot be accessed by navigation from this version. To view those versions, it is recommended that users either conduct an 'advanced search' specifying an 'as at' date earlier than 20.05.1993 or navigate via the Sch. 3A heading.

X8 4 (1) Where a member State includes several territorial units, each of which has its own rules of law concerning contractual obligations, each unit shall be considered as a country for the purposes of identifying the applicable law.

(2) The provisions of [F44 this Part of this Schedule]apply to conflicts between the laws of the different parts of the United Kingdom.

Editorial Information

X8 The existing provisions of Sch. 3A (paras. 1-5) became Sch. 1A Pt. I with effect from 20.05.1993 when a new Pt. I heading was inserted. Versions of those provisions as they stood at any time before that date cannot be accessed by navigation from this version. To view those versions, it is recommended that users either conduct an 'advanced search' specifying an 'as at' date earlier than 20.05.1993 or navigate via the Sch. 3A heading.

Textual Amendments

F44 Words in Sch. 3, para. 4(2) substituted (20.5.1993) by S.I. 1993/174, reg. 5(4)(a)

X9 5 (1) Subject to the preceding provisions of [F45 this Part of this Schedule], a court in a part of the United Kingdom [F46 shall act in accordance with the provisions of the Contracts (Applicable Law) Act 1990;]

(2) In particular, reference shall be made to [F47 those provisions]—

(a) to ascertain for the purposes of paragraph 1(1) and (4) what freedom of choice the parties have under the law of a part of the United Kingdom; and [F48 those provisions]

(b) to determine whether the mandatory rules of another member State should be applied in accordance with paragraph 3(1) where the law otherwise applicable is the law of a part of the United Kingdom.

Editorial Information

X9 The existing provisions of Sch. 3A (paras. 1-5) became Sch. 1A Pt. I with effect from 20.05.1993 when a new Pt. I heading was inserted. Versions of those provisions as they stood at any time before that date cannot be accessed by navigation from this version. To view those versions, it is recommended that users either conduct an 'advanced search' specifying an 'as at' date earlier than 20.05.1993 or navigate via the Sch. 3A heading.

Textual Amendments

F45 Words in Sch. 3 para. 5(1) substituted (20.5.1993) by S.I. 1993/174, reg. 5(4)(a)

F46 Words in Sch. 3 para. 5(1) substituted (20.5.1993) by S.I. 1993/174, reg. 5(4)(b)

F47 Words in Sch. 3 para. 5(2) substituted (20.5.1993) by S.I. 1993/174, reg. 5(4)(c)

F48 Words in Sch. 3 para. 5(2) substituted (20.5.1993) by S.I. 1993/174, reg. 5(4)(c)

[F49 PART II U.K. LONG TERM BUSINESS]

Textual Amendments

F49 Sch. 3A Pt. II (paras. 6-10) inserted (20.5.1993) by S.I. 1993/174, reg. 5(5)

General rules as to applicable law U.K.

6 The law applicable to the contract is the law of the member State of the commitment. However, where the law of that member State so allows, the parties may choose the law of another country.

7 Where the policy holder is an individual and has his habitual residence in a member State other than that of which he is a national, the parties may choose the law of the member State of which he is a national.

mandatory rules U.K.

8 Nothing in this Part of this Schedule restricts the application of the rules of a part of the United Kingdom in a situation where they are mandatory, irrespective of the law otherwise applicable to the contract.

supplementary provisions U.K.

9 (1) Where a member State includes several territorial units, each of which has its own rules of law concerning contractual obligations, each unit shall be considered as a country for the purposes of identifying the applicable law.

(2) The provisions of this Part of this Schedule apply to conflicts between the laws of the different parts of the United Kingdom.

10 (1) Subject to the preceding provisions of this Part of this Schedule, a court in a part of the United Kingdom shall act in accordance with the provisions of the Contracts (Applicable Law) Act 1990].

(2) In particular, reference shall be made to those provisions to ascertain for the purposes of paragraph 6 what freedom of choice the parties have under the law of a part of the United Kingdom.

Section 99(1).

SCHEDULE 4 U.K. Saving and Transitional Provisions

Saving for requirements, directions and powers under the Companies Act 1967 U.K.

1 The repeal by the M1 Insurance Companies Amendment Act 1973 of sections 65, 68 and 80 and subsection (1)(f) of section 109 of the M2 Companies Act 1967 shall not affect—

(a) any requirement or direction imposed or given under any of those sections before 25th July 1973;

(b) the giving of a direction under the said section 68 in any case in which a notice has been served under subsection (3) of that section before that date; or

(c) the exercise by an officer of any powers under the said section 109 in a case in which he has been authorised before that date to exercise them;

and the said Act of 1967 shall have effect in relation to any such requirement, direction or powers as if the said Act of 1973, the M3 Insurance Companies Act 1974 and this Act had not been passed.

Marginal Citations

M1 1973 c. 58.

M2 1967 c. 81

M3 1974 c. 49.

Periodic actuarial investigations under section 18 above in relation to any period of twelve months beginning before 1st October 1982 U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

F50 2

Textual Amendments

F50 Sch. 4 para. 5 repealed (5.11.1993) by 1993 c.50, s. 1(1), Sch. 1 Pt.V

Adjustments of established surplus for purposes of section 30(1) above U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

F51 3

Textual Amendments

F51 Sch. 4 para. 5 repealed (5.11.1993) by 1993 c.50, s. 1(1), Sch. 1 Pt.V

Margins of solvency U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

F52 4

Textual Amendments

F52 Sch. 4 para. 4 repealed (5.11.1993) by 1993 c.50, s. 1(1), Sch. 1 Pt.V

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

F53 5

Textual Amendments

F53 Sch. 4 para. 5 repealed (5.11.1993) by 1993 c.50, s. 1(1), Sch. 1 Pt.V

Postponement of coming into force of section 36 above U.K.

6 F54 . . .Section 36 of this Act shall not take effect until the first regulations under the said section F54 . . .36 come into operation.

Textual Amendments

F54 Words in Sch. 4 para. 6 repealed (5.11.1993) by 1993 c. 50, s. 1(1), Sch. 1 Pt. V

Saving for schemes of operation submitted under Insurance Companies (Authorisation and Accounts: General Business) Regulations U.K.

7 For the purposes of section 37(2)(f) of this Act, a scheme of operations submitted pursuant to regulation 5 of the M4 Insurance Companies (Authorisation and Accounts: General Business) Regulations 1978 shall be regarded as a proposal or forecast submitted in accordance with section 5 of this Act.

Marginal Citations

M4 S.I. 1978/720.

Saving for requirements under section 29 of the Insurance Companies Act 1974 U.K.

8 Where a requirement under section 29 of the Insurance Companies Act 1974 was in force immediately before 1st January 1982—

(a) that requirement shall continue in force,

(b) any requirement imposed under sections 30 to 37 of that Act on the company concerned, if it was in force immediately before that day, shall continue in force, and

(c) section 47(1) of this Act shall apply to any requirement that continues in force under sub-paragraph (a) or (b) above.

Postponement of effect of sections 37(3) and 38(3) above in respect of long term business U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

F55 9

Textual Amendments

F55 Sch. 4 para. 9 repealed (5.11.1993) by 1993 c. 50, s. 1(1), Sch. 1 Pt.V

Deposits made with Accountant General before 1st January 1982 U.K.

10 A deposit made under regulation 6 of the M5 Insurance Companies (Solvency: General Business) Regulations 1977 shall, in so far as it remained with the Accountant General of the Supreme Court immediately before 1st January 1982, be regarded as having been made under section 9(1)(c) of this Act.

Marginal Citations

M5 S.I. 1977/1553.

Continuation of business where contract made before 1st January 1982 U.K.

11 Where—

(a) as a result of the repeal of section 83(2)(b) of the Insurance Companies Act 1974 any particular kind of ordinary long-term insurance business has become general business, and

(b) an insurance company was immediately before 1st January 1982 lawfully carrying on that particular kind of business in the United Kingdom,

then, notwithstanding the lack of an authorisation to carry on general business, the company may continue to carry out any contract of insurance relating to that particular kind of business if the contract was made before 1st January 1982.

Applications for approval of transfer made before 1st January 1982 U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

F56 12

Textual Amendments

F56 Sch. 4 Para. 12 repealed (5.11.1993) by 1993 c. 50, s. 1(1), Sch. 1 Pt.V

Saving for section 42 of the Insurance Companies Act 1974 U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

13

Modifications etc. (not altering text)

C3 Sch. 4 para. 13 repealed (5.11.1993) by 1993 c. 50, s. 1(1), Sch. 1 Pt.V

F57 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

14

Textual Amendments

F57 Sch. 4 para. 14 repealed by Companies Consolidation (Consequential Provisions) Act 1985 (c. 9, SIF 27), s. 29, Sch. 1

Saving for winding up commenced before rules made under section 365 of the [F58 Companies Act] or section 317 of the [F59 Companies (Northern Ireland) Order 1986] U.K.

Textual Amendments

F58 Words substituted by Companies Consolidation (Consequential Provisions) Act 1985 (c. 9, SIF 27), s. 30, Sch. 2

F59 Words substituted by S.I. 1986/1035 (N.I. 9), art. 23, Sch. 1 Pt. II

15 The provisions of this Act, so far as re-enacting provisions of the Insurance Companies Act 1974 which repealed and re-enacted provisions of the M6 Insurance Companies Amendment Act 1973 relating to winding up, shall not affect any winding up commenced before the date on which the first rules made under section 365 of the [F60 Companies Act] or, as the case may be, section 317 of the M7 [F61 Companies (Northern Ireland) Order 1986] by virtue of F62 . . . section 59(2) above come into operation.

Textual Amendments

F60 Words substituted by Companies Consolidation (Consequential Provisions) Act 1985 (c. 9, SIF 27), s. 30, Sch. 2

F61 Words substituted by S.I. 1986/1035 (N.I. 9), art. 23, Sch. 1 Pt. II

F62 Words in Sch. 4 para. 15 repealed (5.11.1993) by 1993 c. 50 s. 1(1), Sch. 1 Pt.V

Marginal Citations

M6 1973 c. 58.

M7 1960 c. 22 (N.I.)

Saving for repeal of section 17(2) and (3) of, and Schedules 3 and 4 to, the Insurance Companies Act 1958 U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

F63 16

Textual Amendments

F63 Sch. 4 para. 16 repealed (5.11.1993) by 1993 c. 50, s. 1(1), Sch. 1 Pt.V

Northern Ireland U.K.

17 Section 17(2)(a) of the M8 Interpretation Act 1978 shall not apply to the reference to the Insurance Companies Act 1974 in paragraph 2 of Schedule 4 to the M9 Insurance Companies Act 1980.

Marginal Citations

M8 1978 c. 30.

M9 1980 c. 25.

F64 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

18

Textual Amendments

F64 Sch. 4 para. 18 repealed by S.I. 1986/1035 (N.I. 9), art. 24, Sch. 2

Continuing offences U.K.

19 Where an offence for the continuance of which a penalty was provided has been committed under any enactment repealed by this Act proceedings may be taken under this Act in respect of the continuance of the offence after the commencement of this Act in the like manner as if the offence had been committed under the corresponding provision of this Act.

Transitional provisions relating to sections 9(7), 71(3), 81(2) and 88(2) of this Act U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

F65 20

Textual Amendments

F65 Sch. 4 para. 20 repealed (5.11.1993) by 1993 c. 50, s. 1(1), Sch. 1 Pt.V

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

F66 21

Textual Amendments

F66 Sch. 4 para. 21 repealed (5.11.1993) by 1993 c. 50, s. 1(1), Sch. 1 Pt.V

General U.K.

22 Subject to paragraph 17 above and without prejudice to any express amendment made by this Act, any enactment or other document whatsoever referring to any enactment repealed by this Act shall, unless the context otherwise requires, be construed as referring (or as including a reference) to the corresponding enactment in this Act.

23 Without prejudice to paragraph 22 above, any enactment or document whatsoever referring to an assurance company within the meaning of the M10 Assurance Companies Act 1909 shall be construed as referring (or as including a reference) to an insurance company to which Part II of this Act applies.

Marginal Citations

M10 1909 c. 49.

24 Where a period of time specified in any enactment repealed by this Act is current at the commencement of this Act, this Act has effect as if the corresponding provision of this Act had been in force when that period began to run.

Section 99(2)

SCHEDULE 5 U.K. CONSEQUENTIAL AMENDMENTS

Modifications etc. (not altering text)

C4 Schedule 5 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and, except as specified, does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

The Companies Act 1948 U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

F67 1

Textual Amendments

F67 Sch. 5 para. 1 repealed (5.11.1993) by 1993 c. 50, s. 1(1), Sch. 1 Pt.V

F68 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

2

Textual Amendments

F68 Sch. 5 para. 2: the amendments to the Companies Act (Northern Ireland) 1960 are repealed by S.I. 1986/1035 (N.I. 9), art. 24, Sch. 2

F69 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

3

Textual Amendments

F69 Sch. 5 para. 3 repealed by Building Societies Act 1986 (c. 53, SIF 16), ss. 54(3)(a)(5), 119(5), 120, Sch. 19 Pt. I

F70 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

4

Textual Amendments

F70 Sch. 5 para. 4 repealed by Housing (Consequential Provisions) Act 1985 (c. 71, SIF 61), ss. 3, 5(2), Sch. 1 Pt. I, Sch. 4

F71 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

5

Textual Amendments

F71 Sch. 5 para. 5 repealed by Building Societies Act 1986 (c. 53, SIF 16), ss. 54(3)(a)(5), 119(5), 120, Sch. 19 Pt. I

The Companies Act 1967 U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

F72 6

Textual Amendments

F72 Sch. 5 para. 6 repealed (5.11.1993) by 1993 c. 50, s. 1(1), Sch. 1 Pt.V

The Children and Young Persons Act (Northern Ireland) Act 1968 U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

F73 7

Textual Amendments

F73 Sch. 5 para. 7 repealed (4.11.1996) by S.I. 1995/755 (N.I.2), art. 185(2), Sch. 10; S.R. 1996/297, art. 2(2)

The Employers’ Liability (Compulsory Insurance) Act 1969 U.K.

8 In section 1(3)(b) of the M11 Employers’ Liability (Compulsory Insurance) Act 1969 for “1981” substitute “ 1982 ”.

Marginal Citations

M11 1969 c. 57.

F74 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

9

Textual Amendments

F74 Sch. 5 para. 9 repealed by S.I. 1984/1821 (N.I. 11), art. 53(3), Sch. 5 Pt. I

F75 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

10

Textual Amendments

F75 Sch. 5 para. 10 repealed by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), ss. 843, 844(4), Sch. 31

The Employer’s Liability (Defective Equipment and Compulsory Insurance) (Northern Ireland) Order 1972 U.K.

11 In Article 5(3)(b) of the M12 Employer’s Liability (Defective Equipment and Compulsory Insurance) (Northern Ireland) Order 1972 for “1981” substitute “ 1982 ”.

Marginal Citations

M12 S.I. 1972/963 (N.I. 6).

F76 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

12

Textual Amendments

F76 Sch. 5 para. 12 repealed by Road Traffic (Consequential Provisions) Act 1988 (c. 54, SIF 107:1), ss. 3, 5, Sch. 1 Pt. I, Sch. 4 paras. 1, 2

The Local Government Act 1972 U.K.

13 In the M13 Local Government Act 1972—

(a) in section 140(1) for “1981” substitute “ 1982 ” ;

(b) in paragraph (a) of section 140C(1) for “1981” substitute “ 1982 ”.

Marginal Citations

M13 1972 c. 70.

The Consumer Credit Act 1974 U.K.

14 In section 189(1) of the M14 Consumer Credit Act 1974 in the definition of “insurance company” for the words from “section 33(1)” to “1968” there shall be substituted the words “ section 96(1) of the Insurance Companies Act 1982 ”

Marginal Citations

M14 1974 c. 39.

The M15 Solicitors Act 1974 U.K.

Marginal Citations

M15 1974 c. 47.

15 In section 87(1) of the Solicitors Act 1974—

(a) in the defniition of “authorised manner” for “1974” substitute “ 1982 ” ;

(b) in the definition of “liability insurance business” for “1981” substitute “ 1982 ” ;

(c) in the definition of “pecuniary loss insurance business” for “1981” substitute “ 1982 ”.

The M16 Policyholders Protection Act 1975 U.K.

Marginal Citations

M16 1975 c. 75.

16 In the Policyholders Protection Act 1975—

(a) in section 3(2) for “1981” substitute “ 1982 ” ;

(b) in subsections (1) and (3) of section 28 for the words from “1974” to “1981” there shall be substituted “ 1982 ” ;

(c) in section 29 for the words from “1974” to “1981” (in both places) there shall be substituted “ 1982 ” ;

(d) in section 32(2)(a) for “1974” substitute “ 1982 ” ;

(e) in paragraph 5(3) of Schedule 3 for the words “Sections 28(1)(b)(i) and 46(1)(b) of the M17 Insurance Companies Act 1974” there shall be substituted the words “ Sections 37(2)(b)(i) and 54(1)(b) of the Insurance Companies Act 1982 ” ;

(f) in paragraph 5(4) of Schedule 3 for the words “Sections 79 to 82 of the Insurance Companies Act 1974” there shall be substituted the words “ Sections 91 to 94 of the Insurance Companies Act 1982 ”.

Marginal Citations

M17 1974 c. 49.

F77 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

17

Textual Amendments

F77 Sch. 5 para. 17 repealed by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), ss. 843, 844(4), Sch. 31

The Insurance Brokers (Registration) Act 1977 U.K.

18 In section 29(1) of the M18 Insurance Brokers (Registration) Act 1977 in the definition of “authorised insurers”—

(a) for “1974” substitute “ 1982 ” ;

(b) for “1981” substitute “ 1982 ”.

Marginal Citations

M18 1977 c. 46.

F78 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

19

Textual Amendments

F78 Sch. 5 para. 19: the amendments to the Companies (Northern Ireland) Order 1978 repealed by S.I. 1986/1035 (N.I. 9), art. 24, Sch. 2

The M19 Credit Unions Act 1979 U.K.

Marginal Citations

M19 1979 c. 34.

20 In section 15(2)(d) of the Credit Unions Act 1979 for “1974” substitute “ 1982 ”.

F79 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

21

Textual Amendments

F79 Sch. 5 para. 21 repealed by Banking Act 1987 (c. 22, SIF 10), s. 108(2), Sch. 7 Pt. I

The M20 Industrial Assurance (Northern Ireland) Order 1979 U.K.

Marginal Citations

M20 S.I. 1979/1574 (N.I. 13).

22 In the Industrial Assurance (Northern Ireland) Order 1979—

(a) in Article 3(4) for the words “Acts 1974 and 1981” there shall be substituted the words “ Act of 1982 ” ; and the words “of 1981” (in each place) shall be omitted ;

F80 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) in Article 32(1)(b) for “1974” substitute “ 1982 ” ;

(d) in Article 40 for the words “Sections 42 and 43 of the M21 Insurance Companies Act 1974” there shall be substituted the words “ Sections 49 and 50 of the Insurance Companies Act 1982 ” ; and for “72(6)” substitute “ 82(5) ” ;

F80 (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f) in paragraph 1 of Schedule 5 for the words “section 85(1) of the Insurance Companies Act 1974” there shall be substituted the words “ section 96(1) of the Insurance Companies Act 1982 ” ;

(g) in paragraph 6 of Schedule 5 for “1974” substitute “ 1982 ”.

Textual Amendments

F80 Sch. 5 para. 22(b)(e) repealed (8.11.1995) by 1995 c. 44, s. 1, Sch. 1 Pt. VI Group 2

Marginal Citations

M21 1974 c. 49.

The M22 Companies Act 1980 U.K.

Marginal Citations

M22 1980 c. 22.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

F81 23

Textual Amendments

F81 Sch. 5 para. 23 repealed (5.11.1993) by 1993 c. 50, s. 1(1), Sch. 1 Pt.V

F82 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

24

Textual Amendments

F82 Sch. 5 para. 24 repealed by Finance Act 1984 (c. 43, SIF 63:1), s. 128(6), Sch. 23 Pt. V and by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), ss. 843, 844(4), Sch. 31

F83 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

25

Textual Amendments

F83 Sch. 5 para. 25 repealed by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), ss. 843, 844(4), Sch. 31

The Companies Act 1981 U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

F84 26

Textual Amendments

F84 Sch. 5 para. 26 repealed (5.11.1993) by 1993 c. 50, s. 1(1), Sch. 1 Pt.V

The M23 Road Traffic (Northern Ireland) Order 1981 U.K.

Marginal Citations

M23 S.I. 1981/154 (N.I. 1).

27 In Article 101(1) of the Road Traffic (Northern Ireland) Order 1981 for “1981” (in both places) substitute “ 1982 ”.

28 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F85

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F86

Textual Amendments

F85 Sch. 5 para. 28(a) repealed by Capital Transfer Tax Act 1984 (c. 51, SIF 65), ss. 274, 277, Schs. 7, 9

F86 Sch. 5 para. 28(b) repealed by Income and Corporation Taxes Act 1988 (c. 51, SIF 63:1), ss. 843, 844(4), Sch. 31

Section 99(3).

SCHEDULE 6 U.K. REPEALS

Modifications etc. (not altering text)

C5 Schedule 6 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

Chapter	Short title	Extent of repeal
1974 c. 49.	The Insurance Companies Act 1974.	The whole Act, except sections 88(1)(6) and 90 and Schedule 1.
1975 c. 75.	The Policyholders Protection Act 1975.	Section 22(1).
1976 c. 69.	The Companies Act 1976.	In Schedule 2, the entries relating to sections 17(1) and 75(2) of the Insurance Companies Act 1974.
1980 c. 25.	The Insurance Companies Act 1980.	In section 1, paragraph (a) and, to the extent an Act therein mentioned is repealed by this Act, paragraph (b).
		Section 2.
		Schedule 1.
		In Schedule 4, paragraph 18.
1980 c. 43.	The Magistrates’ Courts Act 1980.	In Schedule 7, paragraph 18.
1981 c. 31.	The Insurance Companies Act 1981.	The whole Act, except sections 36(1), 38 and Part II of Schedule 4.
1981 c. 62.	The Companies Act 1981.	In Schedule 3, paragraph 35.
S.I. 1981/1657 (c. 44).	The Insurance Companies Act 1981 (Commencement) Order 1981.	In the Schedule, paragraphs 2-9, 11, 12, 14 and 15.