PART II SPECIFIED ACTIVITIES

Chapter XVIIExclusions Applying to Several Specified Kinds of Activity

F1Large risks contracts where risk situated outside F5the United Kingdom72D

1

There is excluded from articles 21, 25(1) and (2), 39A and 53 any activity which is carried on in relation to a large risks contract of insurance, to the extent that the risk or commitment covered by the contract is not situated in F6the United Kingdom.

2

In this article, a “large risks contract of insurance” is a contract of insurance the principal object of which is to cover—

a

risks falling within paragraph 4 (railway rolling stock), 5 (aircraft), 6 (ships), 7 (goods in transit), 11 (aircraft liability) or 12 (liability of ships) of Part 1 of Schedule 1;

b

risks falling within paragraph 14 (credit) or 15 (suretyship) of that Part provided that the risks relate to a business carried on by the policyholder; or

c

risks falling within paragraph 3 (land vehicles), 8 (fire and natural forces), 9 (damage to property), 10 (motor vehicle liability), 13 (general liability) or 16 (miscellaneous financial loss) of that Part provided that the risks relate to a business carried on by the policyholder and that the condition specified in paragraph (3) is met in relation to that business.

3

The condition specified in this paragraph is that at least two of the three following criteria were met in the most recent financial year for which information is available—

a

the balance sheet total of the business F2(within the meaning of section 382(5) or 465(5) of the Companies Act 2006) exceeded 6.2 million euro,

b

the net turnover F3(within the meaning given to “turnover” by section 474(1) of the Companies Act 2006) exceeded 12.8 million euro,

c

the number of employees F4(within the meaning given by sections 382(6) and 465(6) of the Companies Act 2006) exceeded 250,

and for a financial year which is a company’s financial year but not in fact a year, the net turnover of the policyholder shall be proportionately adjusted.

4

For the purposes of paragraph (3), where the policyholder is a member of a group for which consolidated accounts F7... are drawn up, the question whether the condition specified by that paragraph is met is to be determined by reference to those accounts.