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Insurance Companies Act 1982 (repealed)

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Changes over time for: Section 5

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Version Superseded: 01/12/2001

Status:

Point in time view as at 05/01/1998. This version of this provision has been superseded. Help about Status

Changes to legislation:

Insurance Companies Act 1982 (repealed), Section 5 is up to date with all changes known to be in force on or before 11 December 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

5 Submission of proposals etc.U.K.

(1)The [F1Treasury]shall not issue an authorisation under section 3 above unless—

(a)the applicant has submitted to [F2them] such proposals as to the manner in which it proposes to carry on business, such financial forecasts and such other information as may be required by or in accordance with regulations under this Act, and

(b)[F3The Treasury are] satisfied on the basis of that and any other information received by [F2 them] that the application ought to be granted.

[F4(1A) The [F1 Treasury] shall not issue an authorisation under section 3 above to an applicant which is a UK or non-EC company if it appears to [F5the Treasury] that the criteria of sound and prudent management are not or will not be fulfilled with respect to the applicant.]

[F6(1B)The [F1Treasury] shall not issue an authorisation under section 3 above to an applicant which is a UK or non-EC company if it appears to [F5the Treasury] that—

(a)the applicant is an undertaking which is closely linked with any person; and

(b)the applicant’s close links with that person, or any matters relating to any non-EEA laws or administrative provisions to which that person is subject, are such as would prevent the effective exercise by [F7the Treasury or the Secretary of State of his functions] under this Act in relation to the applicant;

and in this subsection “non-EEA laws” means laws of a country or territory outside the European Economic Area and “non-EEA administrative provisions” shall be construed accordingly.

F6(1C)The [F1Treasury] shall not issue an authorisation under section 3 above to an applicant—

(a)which is incorporated in the United Kingdom;

(b)whose head office is outside the United Kingdom;

(b)whose business is not restricted to business to which subsection (5) below applies; and

(d)which is not excluded from each Directive mentioned in that subsection by Article 3 of that Directive.]

(2)[F8Subject to subsection (3) below,] the [F1Treasury] shall decide an application for an authorisation under section 3 above within six months of receiving the information referred to in subsection (1)(a) above; and if [F9the Treasury refuse] to issue the authorisation [F10they]shall inform the applicant in writing of the reasons for the refusal.

[F11(3)The [F1Treasury] may defer a decision on an application for an authorisation under section 3 above for such period as may be necessary for the purpose of implementing any decision of the Council or Commission of the Communities under—

(a)Article 29b(4) of the first general insurance Directive; or

(b)Article 32b(4) of the first long term insurance Directive.]

[F12(4)In this Act—

'criteria of sound and prudent management’ means the criteria set out in Schedule 2A to this Act;

'EEA State’ means a State which is a Contracting Party to the EEA Agreement F13. . .;

'EFTA State’ means an EEA State which is not a member State;

'non-EC company’ means an insurance company—

(a)whose head office is not in a member State;

(b)which is authorised under section 3 or 4 above; and

(c)whose business in the United Kingdom is not restricted to reinsurance business;

'UK company’ means an insurance company—

(a)which is incorporated in the United Kingdom;

(b)whose head office is in the United Kingdom;

(c)which is authorised under section 3 or 4 above;

(d)whose business is not restricted to business to which subsection (5) below applies; and

(e)which is not excluded from each Directive mentioned in that subsection by Article 3 of that Directive;

and any reference in this Part to an applicant or body which is a UK or non-EC company includes a reference to an applicant or body which would be such a company if the authorisation sought by it were issued.

F12(5)This subsection applies to—

(a)reinsurance business;

(b)business which is excluded from the first long term insurance Directive by Article 2(2) or (3) of that Directive;

(c)business which is excluded from the first general insurance Directive by Article 2(2)(b) of that Directive; and

(d)business which is exempted from the authorisation requirements contained in this Part of this Act by subsections (2) to (5) of section 2 above.]

Textual Amendments

F1Words in s. 5 substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 3(a) (with art. 7)

F2Words in s. 5(1)(a)(b) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 3(b)(i) (with art. 7)

F3Words in s. 5(1)(b) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 3(b)(ii) (with art. 7)

F4S. 5(1A) inserted (1.7.1994) by S.I. 1994/1696, reg. 5(1)

F5Words in s. 5(1A)(1B) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 3(c)(d)(i) (with art. 7)

F6S. 5(1B)(1C) inserted (18.7.1996) by S.I. 1996/1669, reg. 18(1)

F7Words in s. 5(1B)(b) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 3(d)(ii) (with art. 7)

F8Words in s. 5(2) inserted (19.11.1992) by S.I. 1992/2890, reg. 2(1)

F9Words in s. 5(2) substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 3(e)(i) (with art. 7)

F10Word in s. 5(2) substituted (5.1.1998) by S.I.1997/2781, art. 8, Sch. Pt. I para. 3(e)(ii) (with art. 7)

F11S. 5(3) inserted (19.11.1992) by S.I. 1992/2890, reg. 2(2)

F12S. 5(4)(5) inserted (1.7.1994) by S.I. 1994/2696, reg. 5(2)

F13Words in definition of “EEA State" in s. 5 omitted (30.4.1996) by virtue of S.I. 1996/944, reg. 4(2)

Modifications etc. (not altering text)

C1s. 5: power to contract out functions conferred (18.11.1998) by S.I. 1998/2842, arts. 2, 3, Sch. Pt. I

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