Insurance Act 2000

PART 1 Preliminary and General

1 Short title, collective citation and commencement.

1.—(1) This Act may be cited as the Insurance Act, 2000.

(2) This Act (other than sections 16 to 33) and the Insurance Acts, 1909 to 1990, may be cited together as the Insurance Acts, 1909 to 2000.

(3) This Act (other than sections 3 to 15), the Investment Intermediaries Act, 1995, sections 37 to 49 of the Central Bank Act, 1997, and section 44 and sections 52 to 69 of the Investor Compensation Act, 1998, may be cited together as the Investment Intermediaries Acts, 1995 to 2000.

(4) (a) Subject to subsection (5), this Act shall come into operation on such day or days as, by order or orders made by the Minister for Enterprise, Trade and Employment, may be appointed either generally or with reference to any particular purpose or provision and different days may be so appointed for different purposes and different provisions.

(b) An order under this subsection may, as respects the repeal of Part IV of the Act of 1989 effected by section 8 of this Act, fix different days for the repeal of different provisions of the said Part IV or for the repeal for different purposes of any such provision.

(5) The Minister for Enterprise, Trade and Employment shall consult with the Minister for Finance before making an order under subsection (4) with respect to sections 16 to 33 of this Act.

2 Interpretation.

2.—(1) In this Act—

“Act of 1989” means the Insurance Act, 1989;

“Act of 1995” means the Investment Intermediaries Act, 1995.

(2) A reference in this Act to any enactment shall be construed as a reference to that enactment as amended, extended or adapted by or under any subsequent enactment including this Act.

PART 2 The Insurance Acts

Chapter 1 Amendments of Act of 1989

3 Amendment of section 2 of Act of 1989 (Interpretation).

3.—Section 2 of the Act of 1989 is hereby amended in subsection (1)—

(a) by the substitution of the following for the definition of “authorisation”:

“‘authorisation’ means an authorisation granted by the Minister under the Regulations of 1976, the Regulations of 1984, the Non-Life Regulations of 1994 or the Life Regulations of 1994 to carry on a specified class or description of insurance business;”,

(b) by the deletion of the definition of “client”,

(c) by the substitution of the following for the definition of “the Insurance Acts”:

“‘the Insurance Acts’ means the Insurance Acts, 1909 to 2000, regulations made under those Acts and regulations relating to insurance made under the European Communities Act, 1972;”,

(d) by the substitution of the following for the definition of “insurance agent”:

“‘insurance agent’ has the same meaning as in the Investment Intermediaries Act, 1995;”,

(e) by the substitution of the following for the definition of “insurance broker”:

“‘insurance broker’ has the same meaning as in the Investment Intermediaries Act, 1995;”,

(f) by the substitution of the following for the definition of “insurance intermediary” or “intermediary”:

“‘insurance intermediary’ or ‘intermediary’ has the same meaning as an insurance intermediary under the Investment Intermediaries Act, 1995;”,

(g) by the insertion of the following after the definition of “insurance intermediary”:

“‘insurance undertaking’ or ‘undertaking’ means—

(a) the holder of an authorisation as defined in this section,

(b) the holder of an official authorisation granted pursuant to—

(i) Council Directive No. 73/239/EEC of 24 July 1973[^1] as amended or extended from time to time,

(ii) Council Directive No. 79/267/EEC of 5 March 1979[^2] as amended or extended from time to time, or

(iii) the Swiss Confederation Agreement as defined in the European Communities (Swiss Confederation Agreement) Regulations, 1996 (S.I. No. 25 of 1996),

(c) the holder of an official authorisation to undertake insurance in Iceland, Liechtenstein or Norway pursuant to the EEA Agreement within the meaning of the European Communities (Amendment) Act, 1993, or

(d) an insurance undertaking to which Article 6(4) of the Non-Life Regulations of 1994 applies;”,

(h) by the substitution of the following for the definition of “insurer”:

“‘insurer’ has the same meaning as insurance undertaking;”,

(i) by the substitution of the following for the definition of “life assurance”:

“‘life assurance’ means insurance of a class specified in Part A of Annex I to the Life Regulations of 1994;”,

(j) by the insertion of the following after the definition of “life assurance”:

“‘the Life Regulations of 1994’ means the European Communities (Life Assurance) Framework Regulations, 1994 (S.I. No. 360 of 1994);”,

(k) by the substitution of the following for the definition of “non-life insurance”:

“‘non-life insurance’ means insurance of a class specified in Part A of Annex I to the Non-Life Regulations of 1994;”,

(l) by the insertion of the following after the definition of “non-life insurance”:

“‘the Non-Life Regulations of 1994’ means the European Communities (Non-Life Insurance) Framework Regulations, 1994 (S.I. No. 359 of 1994);”,

and

(m) by the deletion of the definition of “undertaking”.

4 Amendment of section 3 of Act of 1989 (Offences and penalties).

4.—Section 3 of the Act of 1989 is hereby amended by the substitution of the following for subsection (2):

“(2) A person guilty of an offence under this Act shall be liable—

(a) on summary conviction, to a fine not exceeding £1,500 or to imprisonment for a term not exceeding 12 months, or to both, or

(b) on conviction on indictment, to a fine not exceeding £50,000 or to imprisonment for a term not exceeding 5 years, or to both.

(2A) Where a person, after conviction for an offence under this Act, continues to contravene the provision concerned, such person shall be guilty of an offence on every day on which the contravention continues and for each such offence shall be liable to a fine—

(a) on summary conviction, not exceeding £200, or

(b) on conviction on indictment, not exceeding £5,000.

(2B) Summary proceedings for an offence under this Act may be brought by the Minister.

(2C) Notwithstanding the provisions of section 10(4) of the Petty Sessions (Ireland) Act, 1851, summary proceedings for an offence under the Insurance Acts may be commenced—

(a) at any time within 2 years from the date on which the offence was committed, or

(b) at any time within 6 months from the date on which evidence sufficient, in the opinion of the person by whom the proceedings are initiated, to justify the proceedings, comes to such person’s knowledge,

whichever is the later, provided that no such proceedings shall be commenced later than 5 years from the date on which the offence concerned was committed

(2D) Where a person is convicted of an offence under the Insurance Acts the court shall, unless it is satisfied that there are special and substantial reasons for not so doing, order the person to pay to the Minister the costs and expenses, measured by the court, incurred by the Minister in relation to the investigation, detection and prosecution of the offence.”.

5 Amendment of section 22 of Act of 1989 (Reinsurance).

5.—Section 22 of the Act of 1989 is hereby amended by the substitution of the following for subsection (1):

“(1) Subject to subsection (1A), it shall not be lawful for a company registered in the State or any other person operating in the State to carry on, in the State or outside the State, the business of reinsuring business of a class to which the Insurance Acts apply unless—

(a) in the case of a person who holds an authorisation to carry on business in one or more classes, the authorisation extends to those classes of business in which reinsurance is being accepted, or

(b) in the case of a person who does not hold an authorisation, the person has given notice of not less than 30 days to the Minister, in such form and manner and including such information as the Minister may prescribe, of the person’s intention to carry on the business of reinsurance.

(1A) Subsection (1) shall not apply to a company registered outside the State which does not have a place of business in the State.

(1B) (a) The notice referred to in subsection (1)(b) shall include, but not necessarily be limited to, information in respect of the following:

(i) ownership and share capital of the company, where applicable;

(ii) directors and senior management;

(iii) accountants, auditors and solicitors;

(iv) the risks proposed to be covered and related policy and other arrangements.

(b) Any subsequent changes in the information included in a notice referred to in subsection (1)(b) shall be notified to the Minister not later than the end of the year in which those changes occur.

(1C) A person who was carrying on the business referred to in subsection (1) before the commencement of section 5 of the Insurance Act, 2000, shall, not later than 60 days after such commencement, give notice to the Minister, in such form and manner and including such information as may be prescribed, of the person’s intention to continue to carry on that business, and subsection (1B) shall apply to a notice under this subsection as it applies to a notice referred to in subsection (1)(b) with any necessary modifications.

(1D) A person who contravenes subsection (1)(b) or who contravenes subsection (1C) and continues to carry on the business referred to in that subsection shall be guilty of an offence.

(1E) The Minister may direct a company in writing to cease carrying on the business referred to in subsection (1) either indefinitely or for such period as he may specify in the direction if—

(a) the company contravenes subsection (1)(b) or (1C),

(b) information that is, to the knowledge of the company, false or misleading is included in a notice of the company under subsection (1)(b) or (1C),

(c) the Minister considers that, having regard to the risks insured or proposed to be insured by the company, the company is under capitalised,

(d) the Minister considers that one or more of the directors or the senior managers of the company are not suitably qualified to direct and manage the business aforesaid of the company,

(e) the Minister considers that the company has not a sufficient number of suitably qualified employees in the State to carry on effectively the business aforesaid, or

(f) the Minister is in possession of information showing that the company has engaged in unlawful activities in or outside the State.

(1F) Where the Minister proposes to give a direction to a company under subsection (1E)—

(a) he shall notify the company in writing of the proposal and shall include in the notification a statement of the reasons for the proposal,

(b) the company may, within 28 days of the date of the notification, make submissions in writing to the Minister in relation to the proposal,

(c) the Minister shall, before deciding to give a direction and determining its terms, take into consideration any representations made to him pursuant to paragraph (b).

(1G) Subsections (5) to (9) of section 18 shall apply to a direction under this section as they apply to a direction under that section with any necessary modifications.”.

6 Amendment of Act of 1989: insertion of section 22A (Application of Act to reinsurance).

6.—The Act of 1989 is hereby amended by the insertion of the following after section 22:

“Application of Act to reinsurance.	22A.—(1) Where the Minister considers it necessary to do so, in the public interest, in the interest of policy holders and in the interest of the orderly and proper regulation of the insurance industry, the Minister may by regulations provide for the application with such (if any) necessary modifications as are specified in the regulations, to the business of reinsuring business of a class to which the Insurance Acts apply of such provisions of those Acts as are so specified.
	(2) The Minister may, by regulations, make provision in relation to authorisations and, without prejudice to the generality of the foregoing, the regulations may—
	(a) prohibit the carrying on by the person of the business of reinsuring business other than under and in accordance with an authorisation,
	(b) provide for the grant of, and the refusal to grant, authorisations by the Minister,
	(c) provide for the attachment of conditions by the Minister to authorisations,
	(d) provide for the suspension or revocation of an authorisation by the Minister where the holder contravenes a provision of the Insurance Acts or a condition attached to the authorisation,
	(e) specify criteria which the Minister shall take into account (whether with such other criteria as the Minister may consider appropriate or otherwise, as the regulations may specify) before deciding to grant or refuse to grant or to suspend or revoke an authorisation,
	(f) specify the form and manner of applications for the grant of authorisations,
	(g) provide for the payment of fees to the Minister in respect of applications for and the grant of authorisations,
	(h) require the provision to the Minister, in respect of such applications as aforesaid of such information as he or she may reasonably require and for the refusal by the Minister to grant authorisations where such information is not provided to the Minister,
	(i) provide for the making of returns to the Minister in respect of such matters and at such times as may be specified,
	(j) provide for the notification by the Minister of the person concerned of a proposal to refuse to grant or to suspend or revoke an authorisation and for the making of submissions to, and their consideration by, the Minister before deciding whether to give effect to the proposal, and
	(k) provide for appeals to the High Courtagainst refusals by the Minister to grant authorisations or against revocations or suspensions by the Minister of authorisations.
	(3) Regulations under this section shall not apply to a person in so far as he or she carries on the business of reinsuring business by virtue of section 22(1)(a).
	(4) Regulations under this section may contain such incidental, supplementary and consequential provisions as the Minister considers appropriate.
	(5) A person who contravenes a regulation under this section or a condition attached to an authorisation shall be guilty of an offence.
	(6) In this section, ‘authorisation’ means adocument in writing in such form as the Minister may determine granted by the Minister to a person and authorising the carrying on by the person of the business of reinsuring business of a class specified in the authorisation.”.

7 Amendment of Act of 1989: insertion of Part IIIA (Provision of information).

7.—The Act of 1989 is hereby amended by the insertion of the following after Part III:

“PART IIIA