General scope of the Board’s functions

1 Insurance companies to which the 1975 Act applies

(1) For section 3 of the 1975 Act there shall be substituted—

“3 Insurance companies to which this Act applies

(1) The functions of the Board under this Act shall be exercisable in relation to policyholders and others who have been or may be prejudiced in consequence of the inability of insurance companies to meet their liabilities under policies issued or securities given by them only in cases where the insurance companies in question are insurance companies to which this Act applies.

(2) An insurance company is one to which this Act applies if it is—

(a) authorised under section 3 or 4 of the [1982 c. 50.] Insurance Companies Act 1982 to carry on insurance business of any class in the United Kingdom,

(b) an EC company which is lawfully carrying on insurance business of any class in the United Kingdom, or

(c) an EC company not falling within paragraph (b) above which provides general insurance or long term insurance in the United Kingdom.”

(2) Schedule 1 to this Act (consequential amendments) shall have effect.