(1)The law applicable to a contract of insurance made by a friendly society the effecting of which constitutes general business and which covers risks situated in the United Kingdom or another member State shall be determined—
(a)in the case of a society to which section 37(3) above applies, in accordance with Part I of Schedule 20 to this Act; and
(b)in any other case, in accordance with that Part of that Schedule as modified by subsection (3) below.
(2)The law applicable to a contract of insurance made by a friendly society the effecting of which constitutes long term business and which covers commitments or risks situated in the United Kingdom or another member State shall be determined—
(a)in the case of a society to which section 37(2) above applies, in accordance with Part II of Schedule 20 to this Act; and
(b)in any other case, in accordance with Part I of that Schedule as modified by subsection (3) below.
(3)For the purposes of paragraph (b) of subsections (1) and (2) above, Part I of Schedule 20 to this Act shall be modified as follows—
(a)the words “or central administration", in each place where they occur, shall be omitted;
(b)in paragraph 5(1), for the words from “shall act" to the end there shall be substituted the words “shall apply the general rules of private international law of that part of the United Kingdom concerning contractual obligations"; and
(c)in paragraph 5(2), for the words “those provisions" there shall be substituted the words “those rules".
(4)The provisions of this section do not apply in relation to a contract of reinsurance.]
Textual Amendments
F1S. 101 substituted (1.1.1994) by S.I. 1993/2519, reg. 6(1)