Friendly Societies Act 1992

57 Covering of risks situated in another member State. U.K.

(1) Where a friendly society intends to cover any insurance risks falling within any class of Head B of Schedule 2 to this Act which are situated in a member State other than the United Kingdom—

(a) through an establishment in the United Kingdom, or

(b) through an establishment in a member State other than that in which the risks will be situated,

it shall before doing so give notice of its intention to the Commission.

(2) The notice shall indicate—

(a) the member State in which the insurance is to be provided;

(b) the nature of the risks which the society intends to cover;

(c) the member state in which the establishment through which the risks will be covered is situated.

(3) Where the society intends to cover risks situated in more than one member State, the information specified above may be contained in a single notice but must be set out separately for each member State.

(4) Where a society has duly notified the Commission of its intention to cover risks situated in another member State where administrative authorisation is required to do so then, if the original notice related—

(a) only to risks in respect of which such authorisation is required; or

(b) only to risks in respect of which such authorisation is not required,

and the society subsequently intends to extend its activities to risks falling within the other category, it shall before doing so (without prejudice to the generality of the preceding provisions of this section) comply with subsections (1) to (3) above in relation to those risks.

(5) A friendly society with the intention mentioned in subsection (1) above may apply to the Commission for a certificate attesting—

(a) that the society possesses the minimum margin of solvency calculated in accordance with Article 16 and 17 of the first general insurance Directive, and

(b) that by virtue of this Act and the society’s authorisation under section 32 above, issued in accordance with Article 7(1) of that Directive, the society is able to operate outside the member State of establishment.

(6) A friendly society with the intention mentioned in subsection (1) above in respect of risks to be covered through an establishment in the United Kingdom may apply to the Commission for a certificate—

(a) indicating the classes of insurance business which the society is authorised to carry on in the United Kingdom; and

(b) stating that the Commission does not object to the society covering the risks through such an establishment.

(7) The Commission shall, if it thinks an application under subsection (5) or (6) above ought to be granted, issue the certificate.

(8) If the Commission refuses such an application it shall give notice to the society of its decision and of the reasons for it.

(9) Expressions used in this section which are defined in section 81A or 96A of the M1 Insurance Companies Act 1982 have the same meanings as they have for the purposes of that Act.

Commencement Information

I1 S. 57 wholly in force; s. 57 not in force at Royal Assent see s. 126(2); s. 57 in force for certain purposes at 13.1.1993 by S.I. 1993/16, art. 2, Sch. 1; s. 57 in force for all remaining purposes at 28.4.1993 by S.I. 1993/1186, art. 2(2), Sch. 2

Marginal Citations

M1 1982 c. 50.