[SCHEDULE 2E] INFORMATION FOR POLICY HOLDERS OF UK INSURERS AND EC COMPANIES
Information during contract of long term insurance
2
(1)
This paragraph applies where a UK or EC company or a member of Lloyd’s has, on or after 1st July 1994, entered into a contract 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)
If during the term of the contract there is—
(a)
any change in the information mentioned in paragraphs (a) to (g) of sub-paragraph (4) of paragraph 1 above; or
(b)
in the case of a company, any change in the information mentioned in sub-paragraph (5) of that paragraph; or
(c)
in the case of a member, any change in the information mentioned in sub-paragraph (6) of that paragraph,
the company or member (“the insurer") shall inform the other party to the contract in writing of the effect of the change.
(3)
If the contract provides for the payment of bonuses, the insurer shall, at least once in every calendar year except the first, inform the other party to the contract in writing of the amount of any bonus—
(a)
which has become payable under the contract, and
(b)
of which that party has not been previously informed under this sub-paragraph.
(4)
There is a sufficient compliance with sub-paragraph (3) above if the insurer furnishes the other party to the contract with such information as will enable him to determine the amount of any such bonus as is mentioned in that sub-paragraph, or if the insurer informs that party of—
(a)
the total value of the benefits (including bonuses) which have accrued under the contract; and
(b)
the rates of bonus which have been declared since that party was previously informed under this sub-paragraph.
(5)
In this paragraph “bonus" does not include a bonus the amount of which is specified in the contract.