Insurance Companies Act 1982 (repealed)

Information before contract of long term insurance U.K.

1 (1) Subject to sub-paragraph (2) [F2 and paragraph 5] below, this paragraph applies to a contract entered into by a UK or EC company or a member of Lloyd’s the effecting of which constitutes—

(a) the carrying on in the United Kingdom of long term business which is not reinsurance business; or

(b) the provision there of long term insurance.

(2) This paragraph does not apply to a contract entered into by an authorised person the effecting of which constitutes the carrying on in the United Kingdom of investment business; and in this sub-paragraph expressions which are also used in the Financial Services Act 1986 F3 have the same meanings as in that Act.

(3) Before entering into a contract to which this paragraph applies, the company or member (“the insurer”) shall furnish the other party to the contract in writing with the information required by sub-paragraph (4) below and—

(a) in the case of a company, the information required by sub-paragraph (5) below; and

(b) in the case of a member, the information required by sub-paragraph (6) below.

(4) The information required by this sub-paragraph is—

(a) a definition of each benefit and option;

(b) the term of the contract and the means by which it may be terminated;

(c) the method of paying premiums and the duration of the payments;

(d) the method of calculating bonuses and the distribution of bonuses;

(e) an indication of surrender and paid-up values and the extent to which such values are guaranteed;

(f) an indication of the premiums for each benefit, whether a main or supplementary benefit;

(g) in the case of a contract for a unit-linked policy, a definition of the units to which benefits are linked and an indication of the nature of the underlying assets;

(h) information as to the following, namely—

(i) the arrangements with respect to the period within which the policy holder may cancel the contract;

(ii) the tax arrangements applicable to the policy to be effected by the contract;

(iii) the arrangements for handling any complaints concerning the contract, whether by the other party or any other person who is a life assured or beneficiary; and

(iv) any compensation or guarantee arrangements which will be available if the insurer is unable to meet its liabilities under the contract; and

(i) whether the parties to the contract are entitled to choose the law applicable to the contract and—

(i) if so, the law which the insurer proposes to choose; and

(ii) if not, the law which will be so applicable.

(5) The information required by this sub-paragraph is—

(a) the name and legal form of the company;

(b) the company’s home State and, where appropriate, the member State of the branch through which the contract is to be entered into; and

(c) the address of the company’s head office and, where appropriate, the address of the branch through which the contract is to be entered into.

(6) The information required by this sub-paragraph is—

(a) the name or number of the syndicate which is to enter into the contract and a statement that it is a syndicate of members of Lloyd’s;

(b) a statement that the syndicate’s home State is the United Kingdom and, where appropriate, the member State of the branch through which the contract is to be entered into; and

(c) the address of the syndicate in the United Kingdom and, where appropriate, the address of the branch through which the contract is to be entered into.

(7) Any information required by sub-paragraph (4), (5) or (6) above shall be furnished in English except that, where the other party to the contract so requests, it may instead be furnished in an official language of a member State other than the United Kingdom.

Textual Amendments

F2 Words in Sch. 2E para. 1(1) inserted (30.12.1994) by S.I. 1994/3132, reg. 8(1)

F3 1986 c.60.