PART XII SPECIAL CLASSES OF COMPANIES AND BUSINESSES

CHAPTER II FRIENDLY SOCIETIES, TRADE UNIONS AND EMPLOYERS’ ASSOCIATIONS

Registered friendly societies

466 Interpretation of Chapter II.

1

M1In this Chapter “life or endowment business” means any business within F2class I, II, III or IV of Head A of Schedule 2 to the Friendly Societies Act 1992, any pension business and any other life assurance business, but—

a

shall not include the issue of a policy affording provision for sickness or other infirmity (whether bodily or mental) unless—

i

it also affords assurance for a gross sum independent of sickness or other infirmity; and

ii

not less than 60 per cent. of the amount of the premiums is attributable to the provision afforded during sickness or other infirmity; and

iii

there is no bonus or addition which may be declared or accrue upon the assurance of the gross sum;

b

shall not include the assurance of any annuity the consideration for which consists of sums obtainable on the maturity, or on the surrender, of any other policy of assurance issued by the friendly society, being a policy of assurance forming part of the tax exempt life or endowment business of the friendly society.

2

In this Chapter—

  • F3 “friendly society”, without qualification, means (except in section 459) an incorporated friendly society or a registered friendly society;

  • “incorporated friendly society” means a society incorporated under the Friendly Societies Act 1992;

  • “life assurance business” means the issue of, or the undertaking of liability under, policies of assurance upon human life, or the granting of annuities upon human life, not being industrial assurance business;

  • F4“new society” means—

    1. a

      a registered friendly society which was registered after 3rd May 1966 or which was registered in the period of three months ending on that date but which at no time earlier than that date carried on any life or endowment business, or

    2. b

      an incorporated friendly society other than one which, before its incorporation, was a registered friendly society not within paragraph (a) above;

  • “pension business” shall be construed in accordance with section 431;

  • “policy”, in relation to life or endowment business, includes an instrument evidencing a contract to pay an annuity upon human life;

  • F5 “registered branch” means the same as in the Friendly Societies Act 1992 (and includes any branch that by virtue of section 96(3) of that Act is to be treated as a registered branch);

  • “registered friendly society” means the same as in the Friendly Societies Act 1992 (and includes any society that by virtue of section 96(2) of that Act is to be treated as a registered friendly society);

  • F6 . . .

  • “tax exempt life or endowment business” has, subject to subsections (7) to F1(10A) of section 460, the meaning given by subsection (2)(d) of that section, that is to say, it means (subject to those subsections) life or endowment business other than business profits arising from which are excluded from subsection (1) of that section by subsection (2)(b) or (c) of that section (read, where appropriate, with subsection (6) of that section);

and references in sections 460 to 465 and this subsection to a friendly society F7include, in the case of a registered friendly society, references to any branch of that society.

3

M2It is hereby declared that for the purposes of this Chapter (except where provision to the contrary is made) a F8friendly society formed on the amalgamation of two or more friendly societies is to be treated as different from the amalgamated societies.

4

A registered friendly society formed on the amalgamation of two or more friendly societies shall, for the purposes of this Chapter, be treated as registered not later than 3rd May 1966 if at the time of the amalgamation—

a

all the friendly societies amalgamated were registered friendly societies eligible for the exemption conferred by section 460(1); and

b

at least one of them was not a new society;

or, if the amalgamation took place before 19th March 1985, the society was treated as registered not later than 3rd May 1966 by virtue of the proviso to section 337(4) of the 1970 Act.

F95

An incorporated friendly society formed on the amalgamation of two or more friendly societies shall, for the purposes of this Chapter, be treated as a society which, before its incorporation, was a registered friendly society registered not later than 3rd May 1966 if at the time of the amalgamation—

a

all the friendly societies amalgamated were registered friendly societies eligible for the exemption conferred by section 460(1); and

b

at least one of them was not a new society.