SCHEDULES
SCHEDULE 25M1CASES EXCLUDED FROM DIRECTION-MAKING POWERS
PART II EXEMPT ACTIVITIES
11A
1
This paragraph has effect for the interpretation of paragraph 6(2B) above.
2
“Contract of long-term insurance” means any contract falling within Part II of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.
3
“Protection business” means contracts of long-term insurance where—
a
either—
i
the contract has no surrender value; or
ii
the consideration consists of a single premium and the surrender value does not exceed the amount of that premium; and
b
the contract makes no provision for its conversion or extension in a manner which would result in its ceasing to fall within paragraph (a) above;
and references to protection business include a reference to reinsurance of protection business.
4
“Insurance group” shall be construed in accordance with section 255A(5) of the Companies Act 1985 (meaning of “insurance group” in Part 7) but reading Part 7 of that Act—
a
as if it extended to Northern Ireland, and
b
as if any reference to a company (within the meaning of that Act) included a reference to a company as defined in Article 3 of the Companies (Northern Ireland) Order 1986,
but does not include such an insurance group if it falls within sub-paragraph (5) below.
5
Such an insurance group falls within this sub-paragraph if (within the meaning of that Part as so read) the parent company is a subsidiary undertaking of a parent company which is neither—
a
the parent company of an insurance group; nor
b
a subsidiary undertaking of the parent company of an insurance group.
6
A controlled foreign company is, in accordance with sub-paragraphs (4) and (5) above, a “member of an insurance group” if (within the meaning of that Part as so read) it is the parent company, or a subsidiary undertaking of the parent company, of an insurance group which is by virtue of sub-paragraph (4) above an insurance group for the purposes of paragraph 6(2B) above.
7
A company’s main business is “insuring or reinsuring large risks” if (and only if)—
a
the company’s main business is the effecting or carrying out of contracts of insurance; and
b
50% or more of its gross trading receipts from that business are derived from insuring or reinsuring large risks.
“Large risks” is defined in paragraph 11B below.
8
In this paragraph—
“contract of insurance” has the meaning given by article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;
“contract of long-term insurance” has the meaning given by sub-paragraph (2) above.
Source-1984 Sch.17; 1987 (No.2) s.65