29.—(1) In subsection (1) of section 117 to the 1992 Act (insurance business etc.), after the definition of “insurance business” insert–
““direct insurance business” means insurance business other than reinsurance business and “direct insurance” shall be construed accordingly;”
(2) In subsection (6) of that section, for the words “member State”, in each place where they occur, substitute the words “member or EEA State”.
(3) After subsection (7) of that section insert–
“(8) In this Act references, in relation to a friendly society to which section 37(2) or (3) above applies, to the provision of insurance in the United Kingdom or any other EEA State are references to either or both of the following–
(a)the covering (otherwise than by way of reinsurance) of a risk situated there through an establishment in another EEA State (“the provision of general insurance”); and
(b)the covering (otherwise than by way of reinsurance) of a commitment situated there through an establishment in another EEA State (“the provision of long term insurance”).
(9) In this Act “establishment”, in relation to a friendly society to which section 37(2) or (3) above applies, means the registered office or an overseas branch of the society.
Any permanent presence of such a society in an EEA State other than the United Kingdom shall be regarded for those purposes as a single overseas branch, whether that presence consists of a single office which, or two or more offices each of which–
(a)is managed by the society’s own staff;
(b)is an agency of the society; or
(c)is managed by a person who is independent but has permanent authority to act for the society in the same way as an agency.”.