Insurance Companies Act 1982 (repealed)

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 [F2 Treasury] a notice containing the requisite details; and

(b) that the [F2 Treasury][F3 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 [F2 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 [F2 Treasury] shall, within the period of one month referred to in sub-paragraph (5) above, notify the insurer—

(a) that [F4 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 [F4 they did] so; or

(b) that [F5 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 [F2 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 [F6 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

F2 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)

F3 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)

F4 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)

F5 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)

F6 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 [F7 Treasury] stating the details of the proposed change;

(b) that the [F7 Treasury][F8 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 [F7 Treasury] stating the details of the change.

(4) The [F7 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 [F7 Treasury] shall, as soon as practicable after making a decision under sub-paragraph (4) above, notify the insurer—

(a) that [F9 they have]given the notice referred to in that sub-paragraph, stating the date on which [F9 they did] so; or

(b) that [F10 they have] refused to give the notice, stating the reasons for the refusal.

(6) In the case of a UK company, the [F7 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 [F11 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

F7 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)

F8 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)

F9 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)

F10 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)

F11 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)