11.—(1) This Part of these Regulations applies to—
(a)every UK company which carries on credit insurance business; and
(b)every non-EC company which carries on credit insurance business in the United Kingdom.
(2) This Part of these Regulations applies to credit insurance business.
(3) This Part of these Regulations does not apply—
(a)in the case of a UK company, where the net premiums written in any financial year in respect of its credit insurance business are less than 4 per cent. of the total net premiums written by it in that financial year and less than 2,500,000 units of account; or
(b)in the case of a non-EC company, where the net premiums written in any financial year in respect of its credit insurance business carried on through a branch in the United Kingdom are less than 4 per cent. of the total net premiums written by it in that financial year in respect of business carried on through that branch and less than 2,500,000 units of account.
12. A Part III company shall maintain an equalisation reserve in respect of credit insurance business carried on by the company in accordance with Schedule 2 to these Regulations.