The Insurance Companies (Overseas Life Assurance Business) (Compliance) Regulations 1995

Reclassification of policy or contract from date after it was effected

19.—(1) Subject to paragraph (2) below, this regulation applies in any case where an insurance company—

(a) treats a policy or contract as relating to overseas life assurance business in the circumstances prescribed in regulation 8(1) where the insurance company has not obtained the document prescribed in regulation 8(3) or, in any case where section 431D(5) applies, the certificate prescribed in regulation 8(8) within the period limited in regulation 8(9), or

(b) treats an underlying policy as relating to overseas life assurance business in the circumstances prescribed in regulation 11(1) where the insurance company has not obtained the certificate prescribed in regulation 11(3) or the undertaking prescribed in regulation 11(4) within the period limited in regulation 11(5), or

(c) treats a policy or contract as relating to overseas life assurance business in the circumstances prescribed in regulation 13(5) or 14(5), or

(d) treats an underlying policy as relating to overseas life assurance business in the circumstances prescribed in regulation 15(5) or 16(5), or

(e) treats a policy, contract or underlying policy as relating to overseas life assurance business in circumstances where the insurance company, at any time after the policy or contract was made or the relevant business in relation to that underlying policy was entered into, was in possession of information making it reasonable for the insurance company to assume that any of the requirements of section 431D (other than those relating to where the policy holder is residing) was not fulfilled (notwithstanding its possession of any certificate, declaration or other document).

(2) This regulation shall not apply in any case specified in sub-paragraph (b), (d) or (e) of paragraph (1) above where the insurance company is a company to which section 439A applies.

(3) The company shall—

(a) in the case of business other than reinsurance business, treat the policy or contract as relating to basic life assurance and general annuity business from the end of the accounting period in which the relevant date falls, or

(b) in the case of reinsurance business, treat the business relating to the underlying policy as basic life assurance and general annuity business from the end of the accounting period in which the relevant date falls.

(4) All necessary adjustments, whether by way of assessment or otherwise, shall be made to give effect to paragraph (3) above; and any such assessment may be made without limits on time.

(5) In paragraph (3) above “the relevant date” means—

(a) in any case specified in sub-paragraph (a) or (b) of paragraph (1) above, the last day by which the insurance company should have obtained any certificate, document or undertaking mentioned in either of those sub-paragraphs, or

(b) in any case specified in sub-paragraph (c) or (d) of paragraph (1) above, the date when it became reasonable for the company to assume as mentioned in regulation 13(5), 14(5), 15(5) or 16(5) as the case may be, or

(c) in any case specified in sub-paragraph (e) of paragraph (1) above, the date when it became reasonable for the insurance company to assume as mentioned in that sub-paragraph.