S.I. No. 485/2015 - European Union (Insurance and Reinsurance) Regulations 2015

“insurance claim” means (subject to paragraph (2)) an amount which is owed by an insurance undertaking to insured persons, policy holders, beneficiaries or to any injured party having direct right of action against the insurance undertaking and which arises from an insurance contract or from any operation mentioned in classes 5 to 9 in Schedule 2 in insurance business, including an amount set aside for those persons when some elements of the debt are not yet known;

“liquidator” means—

• (a) in the State, a liquidator of an insurance undertaking appointed under the Act of 2014;

• (b) in a Member State other than the State, any person or body appointed by the competent authority or by the governing body of an insurance undertaking authorised in that Member State for the purpose of administering winding-up proceedings;

“reorganisation measures” means measures involving any intervention by the competent authority which are intended to preserve or restore the financial situation of an insurance undertaking and which affect pre-existing rights of parties other than the insurance undertaking itself, including but not limited to measures involving the possibility of a suspension of payments, suspension of enforcement measures or reduction of claims;

“winding-up proceedings” means collective proceedings involving the realisation of the assets of an insurance undertaking and the distribution of the proceeds among the creditors, shareholders or members as appropriate, which necessarily involve any intervention by the competent authority, including where the collective proceedings are terminated by a composition or other analogous measure, whether or not they are founded on insolvency or are voluntary or compulsory.

• (2) The premium owed by an insurance undertaking as a result of the non-conclusion or cancellation of an insurance contract or operation referred to in the definition of “insurance claim” in paragraph (1) in accordance with the law applicable to such a contract or operation before the opening of the winding-up proceedings shall also be considered an insurance claim.

• (3) For the purpose of the application of this Part to reorganisation measures and winding-up proceedings concerning a branch situated in a Member State of a third-country insurance undertaking the following definitions shall apply:

• (a) “homeMember State” means the Member State in which the branch was granted authorisation in accordance with Articles 145 to 149 of the Directive;

• (b) “supervisoryauthority” means the supervisory authority of the home Member State;

• (c) “competentauthority” means the competent authority of the home Member State.

Chapter 2 Reorganisation measures

Adoption of reorganisation measures — applicable law

• (2) Reorganisation measures adopted in respect of an insurance undertaking, including its branches in other Member States, are governed by the Act of 2014 and the Insurance Acts, as appropriate, unless otherwise provided by Regulations 285 to 293.

• (3) Reorganisation measures adopted by the competent authority of a Member State other than the State in respect of an insurance undertaking authorised in that other Member State, including any branch of the undertaking in the State, shall be recognised in the State once they become effective in that other Member State, even if, were the particular matter to be dealt with under the Act of 2014 or the Insurance Acts, such measures would not be provided for or would be provided for subject to specified conditions being fulfilled and such conditions are not fulfilled in the particular case.

Information to supervisory authorities

• (2) The Bank shall then inform, without any delay, the supervisory authorities of all other Member States of that decision including the possible practical effects of the measures.

Publication of decisions on reorganisation measures

• (a) the name of the competent authority;

• (b) the name and address of the administrator;

• (c) the legislation applicable to the reorganisation measure.

• (2) A reorganisation measure has effect irrespective of whether paragraph (1) is complied with and is fully effective as against creditors, unless the Court, or the law of the State, otherwise provides.

Information to known creditors — right to lodge claims

• (2) If the law of the State provides for the rights of creditors who have their normal place of residence or domicile, or whose head offices are located, in the State to lodge claims, creditors who have their normal place of residence, domicile or head offices in a Member State other than the State also have that right in accordance with the provisions of those Regulations.

Chapter 3 Winding-up proceedings

Commencement of winding-up proceedings

• (2) A decision to commence winding-up proceedings in respect of an insurance undertaking, including its branches in other Member States, shall, once it takes effect in the State, also take effect in those other Member States.

• (3) Winding-up proceedings in respect of an insurance undertaking, including its branches in other Member States, are governed by the Act of 2014 and the Insurance Acts, as appropriate, unless otherwise provided by Regulations 285 to 293.

• (4) A decision to commence winding-up proceedings by the competent authority of a Member State other than the State, in respect of an insurance undertaking authorised in that other Member State, including any branch of the undertaking in the State, shall take effect in the State once it takes effect in that other Member State.

Information to supervisory authorities

• (2) The Bank shall then inform, without any delay, the supervisory authorities of all other Member States of that decision including the possible practical effects of the proceedings.

Treatment of insurance claims

• (2) Without prejudice to paragraph (1), where a life insurance undertaking is authorised to write non-life insurance falling in class 1 or 2 in Part 1 of Schedule 1—

• (a) insurance claims in relation to the life business of the undertaking shall, with respect to the assets representing the life technical provisions of the undertaking, take absolute precedence over any claims in relation to the non-life insurance business of the undertaking in class 1 or 2 in Part 1 of Schedule 1, and

• (b) insurance claims in relation to the insurance business of the undertaking in class 1 or 2 in Part 1 of Schedule 1 shall, with respect to the assets representing the non-life technical provisions of the undertaking take absolute precedence over any claims in relation to the life business of the undertaking.

• (3) Despite paragraphs (1) and (2), expenses arising out of winding-up proceedings shall take precedence over insurance claims to the extent that the assets of the undertaking, other than the assets representing the technical provisions, are insufficient to meet such expenses; and, in such a situation, where a life insurance undertaking writes non-life insurance in class 1 or 2 in Part 1 of Schedule 1, such expenses shall be divided proportionally between the assets representing the life technical provisions and non-life technical provisions.

• (4) Subject to paragraphs (5) and (6), an insurance undertaking shall keep a register showing the assets representing the technical provisions required to be maintained by it under these Regulations or other laws applicable in the State adopted pursuant to the Directive.

• (5) Where a life insurance undertaking is allowed to write non-life insurance in class 1 or 2 in Part 1 of Schedule 1, the undertaking shall keep separate registers for the assets representing the life obligations and non-life obligations.

• (6) Every register to which paragraph (4) relates shall be maintained at the head office of the insurance undertaking and shall contain up-to-date details of the assets representing the technical provisions relevant to the register.

• (7) The total value of the assets, valued in accordance with these Regulations, entered in each register to which paragraph (4) relates shall at no time be less than the value of the technical provisions relevant to the register.

• (8) Where an asset entered in a register to which paragraph (4) relates is subject to a right in rem in favour of a creditor or a third party, with the result that part of the value of the asset is not available for the purpose of covering commitments, that fact shall be recorded in the register and the amount not available shall not be included in the total value referred to in paragraph (7).

• (9) Every register to which paragraph (4) relates shall be available to the Bank at all times.

• (10) The Bank may require an insurance undertaking to furnish the Bank with a certificate of the value of the assets (being the value of the assets entered in each register to which paragraph (4) relates and in the accounts and the balance sheets) on the closing date for which the accounts and balance sheets of the insurance undertaking are furnished to the Bank.

Provisions supplementary to Regulation 277

• (a) a right in rem in favour of a creditor or a third party, without meeting the conditions of Regulation 277(8),

• (b) a reservation of title in favour of a creditor or of a third party, or

• (c) a demand by a creditor for the set-off of his or her claim against the claim of the insurance undertaking,

such rights or reservations shall be disregarded if the undertaking is being wound up, except where Regulation 286, 287 or 288 applies to that asset.

• (2) The composition of the assets entered in the register at the time when winding-up proceedings are commenced shall not thereafter be changed and no alteration other than the correction of purely clerical errors shall be made in the register, except with the sanction of the Court or other person having functions under the Act of 2014.

• (3) Despite paragraph (2), the liquidator shall add to the assets representing the technical provisions the yield from them and the value of the pure premiums received in respect of the class of insurance concerned between the commencement of the winding-up proceedings and the time of payment of the insurance claims or until any transfer of portfolio is effected.

• (4) If the product of the realisation of assets is less than their estimated value in the register, the liquidator shall be required to provide an explanation in such form or manner as the Court or other person requires to the Court or other person having functions under the Act of 2014.

Withdrawal of authorisation

• (2) The withdrawal of authorisation pursuant to paragraph (1) shall not prevent the liquidator from pursuing some of the activities of the insurance undertaking in so far as that is necessary or appropriate for the purposes of winding-up, provided that such activities are carried on with the consent and under the supervision of the Bank.

Publication of decisions on winding-up proceedings

• (a) the name of the competent authority;

• (b) the name and address of the liquidator;

• (c) the legislation applicable to the winding-up.

Information to known creditors

• (2) The notice under paragraph (1) shall include the following information:

• (a) the periods in which steps must be taken by the creditors in the proceedings;

• (b) the consequences if a particular step is not taken within the period concerned;

• (c) the name and address of the liquidator for the purpose of lodgement of claims;

• (d) any other information of particular relevance to creditors.

• (3) The notice under paragraph (1) shall also indicate whether creditors whose claims are preferential or secured in rem need to lodge their claims.

• (4) In the case of insurance claims, the notice under paragraph (1) shall also indicate the general effects of the winding-up proceedings on the insurance contracts, in particular the date on which the insurance contracts or the operations will cease to produce effects and the rights and duties of insured persons with regard to the contract or operation.

Right to lodge claims

• (2) The claims of all creditors who have their normal place of residence, domicile or head office in a Member State other than the State, including a public authority of such a Member State, shall be treated in the same way and accorded the same ranking as claims of an equivalent nature which may be lodged by creditors who have their normal place of residence, domicile or head office in the State.

• (3) A creditor shall send copies of documents supporting the creditor’s claim, if any, and shall indicate—

• (a) the nature of the claim,

• (b) the date on which it arose,

• (c) the amount of the claim,

• (d) whether the creditor alleges preference, security in rem, or reservation of title in respect of the claim, and

• (e) where appropriate, what assets are covered by his or her security.

Languages and form

• (2) The form which is used for the purposes of that notice shall bear the following heading (in all the official languages of the European Union) — “Invitation to lodge a claim: time limits to be observed”.

• (3) Where the known creditor is a holder of an insurance claim, the information in the notice referred to in Regulation 281 shall be provided in the official language or one of the official languages of the Member State in which the creditor has his or her normal place of residence, domicile or head office.

• (4) Any creditor who has his or her normal place of residence, domicile or head office in a Member State other than the State, may lodge his or her claim in the official language of that Member State, but if he or she does so the lodgement of his or her claim shall bear the heading “Lodgement of claim” in English.

Regular information to creditors

Chapter 4 Common provisions

Effects on certain contracts and rights

• (2) Employment contracts and employment relationships shall be governed solely by the law of the Member State applicable to the employment contract or employment relationship.

• (3) A contract conferring the right to make use of or acquire immovable property shall be governed solely by the law of the Member State in whose territory the immovable property is situated.

• (4) Rights of the insurance undertaking with respect to immovable property, a ship or an aircraft subject to registration in a public register shall be governed by the law of the Member State under whose authority the register is kept.

Rights in rem of third parties

• (2) The rights in rem referred to in paragraph (1) include—

• (a) the right to dispose of assets or have them disposed of and to obtain satisfaction from the proceeds of or income from those assets, in particular by virtue of a lien or a mortgage,

• (b) the exclusive right to have a claim met, in particular a right guaranteed by a lien in respect of the claim or by assignment of the claim by way of a guarantee,

• (c) the right to demand the assets from, or to require restitution by, anyone having possession or use of them contrary to the wishes of the party so entitled, and

• (d) a right to the beneficial use of assets.

• (3) The right, recorded in a public register and enforceable against third parties, under which a right in rem within the meaning of paragraph (1) may be obtained, shall be considered a right in rem.

Reservation of title

• (2) The commencement of reorganisation measures or winding-up proceedings against an insurance undertaking selling an asset, after delivery of that asset, shall not constitute grounds for rescinding or terminating the sale and shall not prevent the purchaser from acquiring title where at the time of the commencement of such measures or proceedings the asset sold is situated within the territory of a Member State other than the State in which such measures or proceedings were commenced.

Set-off

Regulated markets

Regulations 286 to 289: savings

• (a) actions to set aside such acts or to have such acts declared void;

• (b) actions to have such acts avoided;

• (c) actions to have such acts rendered unenforceable or declared unenforceable.

• (2) Nothing in this Part shall affect any proceedings commenced in any court concerning the reorganisation or the winding-up of an insurance undertaking where such proceedings were commenced before 1 January 2016.

Detrimental acts

• (a) that act is subject to the law of a Member State other than the home Member State, and

• (b) that law does not allow any means of challenging that act in the relevant case.

Protection of third-party purchasers

• (a) an immovable asset,

• (b) a ship or an aircraft subject to registration in a public register, or

• (c) transferable or other securities whose existence or transfer presupposes entry in a register or account laid down by law or which are placed in a central deposit system governed by the law of a Member State,

the applicable law is the law of the Member State within whose territory the immovable asset is situated or under whose authority the register, account or system is kept.

Lawsuits pending

Administrators and liquidators: proof of appointment

• (2) An administrator or liquidator of an insurance undertaking who wishes to act in a Member State other than the State shall make available a translation of the copy in one of the official languages of that Member State if required to do so by the competent authority of that Member State.

• (3) The appointment of an administrator or liquidator to an insurance undertaking authorised in a Member State other than the State shall be evidenced in the State—

• (a) by a certified copy of the original decision of appointment, or

• (b) by any other certificate issued by the competent authority of that Member State.

• (4) Where a document referred to in paragraph (3)(a) or (b) is not in English it shall be accompanied by a translation in English.

Administrators and liquidators: exercise of powers in other Member States

• (2) In particular, the administrator or liquidator may appoint one or more persons to assist or represent the administrator or liquidator in the course of the reorganisation measure or winding-up proceedings, in particular in order to help overcome any difficulties encountered by creditors in any of the other Member States.

• (3) In exercise of his or her powers under the Act of 2014 or the Insurance Acts, an administrator or liquidator of an insurance undertaking shall comply with the law of the Member State within whose territory he or she wishes to take action, in particular with regard to procedures for the realisation of assets and the informing of employees.

• (4) In exercising a power referred to in paragraph (3), an administrator or liquidator may not—

• (a) resort to the use of force, or

• (b) make any ruling or determination in relation to legal proceedings or disputes.

Administrators and liquidators: exercise of powers in the State

• (2) The administrator or liquidator may, if the legislation of that Member State so permits, appoint persons to assist or represent him or her in the State in the course of the reorganisation measure or winding-up proceedings, in particular in order to help overcome any difficulties encountered by creditors in the State.

• (3) In exercise of his or her powers under the legislation of the home Member State, an administrator or liquidator of an insurance undertaking authorised in a Member State other than the State shall comply with the laws of the State when taking action within the State, in particular with regard to procedures for the realisation of assets and the informing of employees.

• (4) In exercising a power referred to in paragraph (3), an administrator or liquidator may not—

• (a) resort to the use of force, or

• (b) make any ruling or determination in relation to legal proceedings or disputes.

Registration in public register

• (2) The administrator or liquidator of an insurance undertaking shall, if so required by the law of a Member State other than the State, take all the measures necessary to register a reorganisation measure or the decision to open winding-up proceedings in any public register kept in that other Member State.

• (3) The costs of the registration referred to in paragraphs (1) and (2) shall be regarded as costs and expenses incurred in the reorganisation or winding-up proceedings.

Professional secrecy

Treatment of branches of third-country insurance undertakings

• (2) Where a third-country insurance undertaking has branches established in more than one Member State, each branch shall be treated independently with regard to the application of this Part but the supervisory authorities, competent authorities, administrators and liquidators involved shall endeavour to co-ordinate their activities.

Part 19 OTHER PROVISIONS

Chapter 1 Offences

Offence of making false or misleading application for authorisation

• (a) apply for an authorisation using false or misleading information, or

• (b) make false or misleading statements to the Bank in relation to an application for—

• (i) an authorisation, or

• (ii) an approval or permission from the Bank concerning the operation of an insurance undertaking, reinsurance undertaking or special purpose vehicle.

• (2) A person who fails to comply with paragraph (1) commits an offence.

Advertising offence

• (a) cause to be advertised, supply, or offer to supply, insurance, reinsurance or ancillary services,

• (b) make any other solicitation in respect of insurance, reinsurance or ancillary services, or

• (c) represent that the person is a provider of such services,

if the provision of such services would be in breach of these Regulations.

• (2) A person who fails to comply with paragraph (1) commits an offence.

Offence of providing false or misleading information

Liability of officers of undertaking for offences committed by undertaking

• (2) Where the affairs of a body corporate are managed by its members, paragraph (1) applies in relation to the acts and defaults of a member in connection with his or her functions of management as if he or she were a director or manager of the body corporate.

Summary proceedings

Penalties for offences

• (a) on summary conviction, to a class A fine or to imprisonment for a term not exceeding 12 months, or to both, or

• (b) on conviction on indictment, to a fine not exceeding €500,000 or to imprisonment for a term not exceeding 3 years, or to both.

Continuing contravention

Chapter 2 Co-operation, fees and notices

Co-operation between Member States and Commission

• (a) for the purpose of facilitating the supervision of insurance and reinsurance within the European Union and of examining any difficulties which may arise in the application of these Regulations, and

• (b) to examine those difficulties as quickly as possible in order to find an appropriate solution.

Bank’s power to charge fees

Service of notice or other document by the Bank

Chapter 3 Amendments

Insurance Act 1936

Amendments of Central Bank Act 1942

• “(o) Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II)³² ;

• (p) Commission Implementing Regulation (EU) 2015/460 of 19 March 2015 laying down implementing technical standards with regard to the procedure concerning the approval of an internal model in accordance with Directive 2009/138/EC of the European Parliament and of the Council³³ ;

• (q) Commission Implementing Regulation (EU) 2015/461 of 19 March 2015 laying down implementing technical standards with regard to the process to reach a joint decision on the application to use a group internal model in accordance with Directive 2009/138/EC of the European Parliament and of the Council³⁴ ;

• (r) Commission Implementing Regulation (EU) 2015/462 of 19 March 2015 laying down implementing technical standards with regard to the procedures for supervisory approval to establish special purpose vehicles, for the co-operation and exchange of information between supervisory authorities regarding special purpose vehicles as well as to set out formats and templates for information to be reported by special purpose vehicles in accordance with Directive 2009/138/EC of the European Parliament and of the Council³⁵ ;

• (s) Commission Implementing Regulation (EU) 2015/498 of 24 March 2015 laying down implementing technical standards with regard to the supervisory approval procedure to use undertaking-specific parameters in accordance with Directive 2009/138/EC of the European Parliament and of the Council³⁶ ;

• (t) Commission Implementing Regulation (EU) 2015/499 of 24 March 2015 laying down implementing technical standards with regard to the procedures to be used for granting supervisory approval for the use of ancillary own-fund items in accordance with Directive 2009/138/EC of the European Parliament and of the Council³⁷ ;

• (u) Commission Implementing Regulation (EU) 2015/500 of 24 March 2015 laying down implementing technical standards with regard to the procedures to be followed for the supervisory approval of the application of a matching adjustment in accordance with Directive 2009/138/EC of the European Parliament and of the Council³⁸ .”.

• (2) Section 33AK of the Act of 1942 is amended—

• (a) in subsection (5) by substituting the following for paragraph (aw):

• “(aw) for any purpose connected to the functions of the Bank as a competent authority or resolution authority under Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014³⁹ , or

• (ax) to independent actuaries of insurance undertakings and reinsurance undertakings (within the meaning of the European Union (Insurance and Reinsurance) Regulations 2015) carrying out legal supervision of those entities and the bodies responsible for overseeing such actuaries.”, and

• (b) in subsection (10) by substituting the following for paragraphs (t) and (u):

• “(t) the SSM Regulation,

• (u) the SSM Framework Regulation, and

• (v) Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of insurance and reinsurance (Solvency II).”.

• (3) The Act of 1942 is amended by inserting the following after section 33ANE:

“Application of Part to insurance holding companies and mixed financial holding companies

33ANF.(1) This Part applies in relation to—

• (a) the commission or suspected commission by an insurance holding company or mixed financial holding company of a contravention of—

  • (i) a provision of Part 17 of the European Union (Insurance and Reinsurance) Regulations 2015 or any other provision of those Regulations as applied to the insurance holding company or mixed financial holding company by that Part,

  • (ii) any direction given to an insurance holding company or mixed financial holding company under a provision referred to in subparagraph (i) or any direction given under financial services legislation to the insurance holding company or mixed financial holding company pursuant to a provision referred to in subparagraph (i),

  • (iii) any requirement imposed on an insurance holding company or mixed financial holding company under a provision referred to in subparagraph (i), under any direction given to an insurance holding company or mixed financial holding company under a provision referred to in subparagraph (i), or under any direction given under financial services legislation to the insurance holding company or mixed financial holding company pursuant to a provision referred to in subparagraph (i), or

  • (iv) any obligation imposed on an insurance holding company or mixed financial holding company by this Part or imposed by the Bank pursuant to a power exercised under this Part, and

• (b) participation, by a person concerned in the management of an insurance holding company or mixed financial holding company, in the commission of such a contravention.

• (2) For the purposes of subsection (1)—

  • (a) a reference in this Part to a regulated financial service provider or a financial service provider includes a reference to an insurance holding company or mixed financial holding company,

  • (b) a reference in this Part to a prescribed contravention includes a reference to a contravention, by an insurance holding company or mixed financial holding company, of a provision, direction, requirement or obligation referred to in subsection (1), and

  • (c) a reference in this Part to a person concerned in the management of a regulated financial service provider includes a reference to a person concerned in the management of an insurance holding company or mixed financial holding company.

• (3) Nothing in this section limits the application of this Part in relation to matters other than those referred to in subsection (1).

• (4) In this section “insurance holding company” and “mixed financial holding company” have the meaning assigned to them in the European Union (Insurance and Reinsurance) Regulations 2015.”.

• (4) Part 2 of Schedule 2 to the Act of 1942 is amended by inserting at the end—

“

61.	S.I. No. 485 of 2015	European Union (Insurance and Reinsurance) Regulations 2015	The whole instrument

”

Amendment of Insurance Act 1964

• “(b) the European Communities (Non-Life Insurance) (Amendment) (No. 2) Regulations 1991 ( S.I. No. 142 of 1991 ),

• (c) the European Communities (Non-Life Insurance) Framework Regulations 1994 ( S.I. No. 359 of 1994 ), and

• (d) the European Union (Insurance and Reinsurance) Regulations 2015 ( S.I. No. 485 of 2015 ) (so far as relating to non-life insurance business);”.

Amendments of Insurance (No. 2) Act 1983

• (a) by substituting the following for the definition of “insurer”:

“ ‘insurer’ means the holder of an authorisation issued by the Bank under—

• (a) the Non-Life Insurance Regulations,

• (b) the Life Assurance Regulations,

• (c) the Non-Life Insurance Framework Regulations,

• (d) the Life Assurance Framework Regulations, or

• (e) the Insurance and Reinsurance Regulations,

to carry on a class or description of insurance business;”,

• (b) by inserting the following after the definition of “insurer”:

“ ‘Insurance and Reinsurance Regulations’ means the European Union (Insurance and Reinsurance) Regulations 2015 ( S.I. No. 485 of 2015 );”,

• (c) by substituting the following for the definition of “policy”:

“ ‘policy’ means a document or other writing by which a contract—

• (a) of non-life insurance (within the meaning of the Non-Life Insurance Regulations, the Non-Life Insurance Framework Regulations or the Insurance and Reinsurance Regulations) or life insurance (within the meaning of the Life Assurance Regulations, the Life Assurance Framework Regulations or the Insurance and Reinsurance Regulations), or

• (b) of reinsurance (within the meaning of the Reinsurance Regulations or the Insurance and Reinsurance Regulations),

is made or agreed to be made or that is evidence of such a contract;”,

• (d) by substituting the following for the definition of “reinsurer”:

“ ‘reinsurer’ means a person who has received authorisation under the Reinsurance Regulations or the Insurance and Reinsurance Regulations to carry on reinsurance business only;”, and

• (e) in the definition of “the supervisory Regulations” by substituting the following for paragraphs (e) and (f):

• “(e) the Life Assurance Framework Regulations,

• (f) the European Communities (Insurance and Reinsurance Groups Supplementary Supervision) Regulations 2007 ( S.I. No. 366 of 2007 ), and

• (g) the Insurance and Reinsurance Regulations.”.

Amendments of Insurance Act 1989

• (a) in the definition of “authorisation”, by substituting for “or the Life Regulations of 1994”, “, the Life Regulations of 1994 or the European Union (Insurance and Reinsurance) Regulations 2015 ( S.I. No. 485 of 2015 )”,

• (b) in the definition of “insurance undertaking” by substituting the following for paragraph (b):

• “(b) the holder of an official authorisation in respect of insurance granted pursuant to—

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

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

  • (iii) Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 as amended or extended from time to time, or

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

• (c) in the definition of “life assurance” by inserting after “1994” “or Schedule 2 to the European Union (Insurance and Reinsurance) Regulations 2015 ( S.I. No. 485 of 2015 )”, and

• (d) in the definition of “non-life insurance” by inserting after “1994”, “ or Part 1 of Schedule 1 to the European Union (Insurance and Reinsurance) Regulations 2015 ( S.I. No. 485 of 2015 )”.

• (2) Section 21 of the Insurance Act 1989 is amended by inserting the following subsection after subsection (4)—

• “(5) This section shall not apply to an insurance undertaking to which the European Union (Insurance and Reinsurance) Regulations 2015 apply, other than an undertaking to which Regulation 11(1) of those Regulations applies.”.

• (3) Section 22 of the Insurance Act 1989 is amended by substituting the following for paragraph (4):

• “(4) This section shall not apply to those undertakings that are reinsurance undertakings, special purpose reinsurance vehicles or special purpose vehicles to which the European Communities (Reinsurance) Regulations 2006 apply or to which the European Union (Insurance and Reinsurance) Regulations 2015 apply.”.

• (4) Section 24 of the Insurance Act 1989 is amended by the inserting the following subsection after subsection (3):

• “(4) This section shall not apply to an insurance undertaking to which the European Union (Insurance and Reinsurance) Regulations 2015 apply other than an undertaking to which Regulation 11(1) of those Regulations applies.”.

• (5) Section 34 of the Insurance Act 1989 is amended by the insertion of the following subsection after subsection (4)—

• “(5) This section shall not apply to an insurance undertaking to which the European Union (Insurance and Reinsurance) Regulations 2015 apply, other than an undertaking to which Regulation 11(1) of those Regulations applies.”.

Amendment of Central Bank Act 1997

• “(k) Regulation 85 of the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2003;

• (l) Regulation 52 of the European Union (Capital Requirements) Regulations 2014;

• (m) Regulation 78 of the European Union (Insurance and Reinsurance) Regulations 2015;

• (n) any other provision of an Act or regulations declared under subsection (5) to be a prescribed enactment for the purpose of this section.”.

Amendment of Companies Act 2014

• “(d) Regulation 2 of the European Communities (Life Assurance) Framework Regulations 1994 ( S.I. No. 360 of 1994 ),

• (e) European Communities (Reinsurance) Regulations 2006 ( S.I. No. 380 of 2006 ), or

• (f) Regulation 3 of the European Union (Insurance and Reinsurance) Regulations 2015 ( S.I. No. 485 of 2015 );”.

Amendment of European Communities (Fourth Motor Insurance Directive) Regulations 2003

Transitional provisions

• (2) The amendment of any provision by these Regulations does not preclude the taking of any legal proceedings, or the undertaking of any investigation, or disciplinary or enforcement action by the Bank or any other person, in respect of any contravention of a provision (including anything amended by these Regulations) or any misconduct which may have been committed before the commencement of the amendment.

• (3) In paragraph (1) “regulatory action” includes any code, direction, order, requirement, sanction, condition, appointment or request (however described) of a regulatory nature made, given or imposed by the Bank.

SCHEDULE 1 Classes of non-life insurance

Part 1 Classes

• (a) fixed pecuniary benefits,

• (b) benefits in the nature of indemnity,

• (c) combinations of the 2, and

• (d) injury to passengers.

• (a) fixed pecuniary benefits,

• (b) benefits in the nature of indemnity, and

• (c) combinations of the 2.

All damage to or loss of—

• (a) land motor vehicles, and

• (b) land vehicles other than motor vehicles.

All damage to or loss of railway rolling stock.

All damage to or loss of aircraft.

All damage to or loss of—

• (a) river and canal vessels,

• (b) lake vessels, and

• (c) sea vessels.

All damage to or loss of goods in transit or baggage, irrespective of the form of transport.

All damage to or loss of property (other than property included in classes 3, 4, 5, 6 and 7) due to—

• (a) fire,

• (b) explosion,

• (c) storm,

• (d) natural forces other than storm,

• (e) nuclear energy, and

• (f) land subsidence.

All damage to or loss of property (other than property included in classes 3, 4, 5, 6 and 7) due to hail or frost, and any event such as theft, other than that included in class 8.

All liability arising out of the use of motor vehicles operating on the land (including carrier’s liability).

All liability arising out of the use of aircraft (including carrier’s liability).

All liability arising out of the use of ships, vessels or boats on the sea, lakes, rivers or canals (including carrier’s liability).

All liability other than the liabilities referred to in classes 10, 11 and 12.

• (a) insolvency (general),

• (b) export credit,

• (c) instalment credit,

• (d) mortgages, and

• (e) agricultural credit.

• (a) suretyship (direct), and

• (b) suretyship (indirect).

• (a) employment risks,

• (b) insufficiency of income (general),

• (c) bad weather,

• (d) loss of benefits,

• (e) continuing general expenses,

• (f) unforeseen trading expenses,

• (g) loss of market value,

• (h) loss of rent or revenue,

• (i) other indirect trading loss,

• (j) other non-trading financial loss, and

• (k) other forms of financial loss.

Legal expenses and costs of litigation.

Assistance provided for persons who get into difficulties while travelling, while away from their home or their habitual residence as described in Article 2(2) of the Directive.

Part 2 Authorisations for more than one class of insurance

The following names shall be given to authorisations which simultaneously cover the following classes:

• (a) Classes 1 and 2: “accident and health insurance”;

• (b) Classes 1(d), 3, 7 and 10: “motor insurance”;

• (c) Classes 1(d), 4, 6, 7 and 12: “marine and transport insurance”;

• (d) Classes 1(d), 5, 7 and 11: “aviation insurance”;

• (e) Classes 8 and 9: “insurance against fire and other damage to property”;

• (f) Classes 10, 11, 12 and 13: “liability insurance”;

• (g) Classes 14 and 15: “credit and suretyship insurance”;

• (h) All classes, at the choice of the Member States, which shall notify the other Member States and the Commission of their choice.

SCHEDULE 2 Classes of life insurance

• (a) are expressed to be in effect for a period of not less than five years or until normal retirement age for the persons concerned, or without limit of time, and

• (b) either:

• (i) are not expressed to be terminable by the insurance undertaking under the terms of the contract, or

• (ii) are expressed to be so terminable only in special circumstances mentioned in the contract.

SCHEDULE 3 Solvency Capital Requirement (SCR) Standard Formula

Part 1 Calculation of the Basic Solvency Capital Requirement

where—

SCRi denotes the risk module i;

SCRj denotes the risk module j;

‘i,j’ means that the sum of the different terms should cover all possible combinations of i and j.

• (2) In the calculation, SCRi and SCRj are replaced by the following:

SCR non-life denotes the non-life underwriting risk module;

SCR life denotes the life underwriting risk module;

SCR health denotes the health underwriting risk module;

SCR market denotes the market risk module;

SCR default denotes the counterparty default risk module.

• (3) The factor Corr i,j denotes the item set out in row i and in column j of the following correlation matrix:

Part 2 Calculation of the non-life underwriting risk module

where—

SCRi denotes the sub-module i;

SCRj denotes the sub-module j;

“i,j’ means that the sum of the different terms should cover all possible combinations of i and j.

• (2) In the calculation, SCRi and SCRj are replaced by the following:

SCR nl premium and reserve denotes the non-life premium and reserve risk sub-module;

SCR nl catastrophe denotes the non-life catastrophe risk sub-module.

Part 3 Calculation of the life underwriting risk module

where—

SCRi denotes the sub-module i;

SCRj denotes the sub-module j;

‘i,j’ means that the sum of the different terms should cover all possible combinations of i and j.

• (2) In the calculation, SCRi and SCRj are replaced by the following:

SCR mortality denotes the mortality risk sub-module;

SCR longevity denotes the longevity risk sub-module;

SCR disability denotes the disability — morbidity risk sub-module;

SCR life expense denotes the life expense risk sub-module;

SCR revision denotes the revision risk sub-module;

SCR lapse denotes the lapse risk sub-module;

SCR life catastrophe denotes the life catastrophe risk sub-module.

Part 4 Calculation of the market risk module

where—

SCRi denotes the sub-module i;

SCRj denotes the sub-module j;

‘i,j’ means that the sum of the different terms should cover all possible combinations of i and j.

• (2) In the calculation, SCRi and SCRj are replaced by the following:

SCR interest rate denotes the interest rate risk sub-module;

SCR equity denotes the equity risk sub-module;

SCR property denotes the property risk sub-module;

SCR spread denotes the spread risk sub-module;

SCR concentration denotes the market concentrations sub-module;

SCR currency denotes the currency risk sub-module.

GIVEN under my Official Seal,

4 November 2015.

MICHAEL NOONAN,

Minister for Finance.

Footnotes