Insurance Companies Act 1982 (repealed)

• (c) requiring insurers under the contracts to appoint valuers for carrying out valuations of property of any description for the purpose of determining such benefits (being valuers who comply with the prescribed requirements as to qualifications and independence from the insurer) and to furnish the Secretary of State with the prescribed information in relation to such appointments;

• (d) requiring insurers under the contracts to furnish, in such manner and at such times or intervals as may be prescribed, such information relating to the value of the benefits under the contracts as may be prescribed, whether by sending notices to policy holders, depositing statements with the Secretary of State or the registrar of companies or the registrar of companies in Northern Ireland or with both such registrars, publication in the press or otherwise;

• (e) requiring insurers under the contracts to furnish to the Secretary of State, in such manner and at such times or intervals as may be prescribed, such information certified in such manner as may be prescribed with respect to so much of their business as is concerned with the contracts or with any class or description of the contracts, and enabling the Secretary of State to publish such information in such ways as he thinks appropriate.

• (3) Regulations made for the purposes of subsection (1)(d) above may, in relation to notices required to be sent to policy holders, impose requirements (whether as to type, size, colour or disposition of lettering, quality or colour of paper, or otherwise) for securing that such notices are easily legible.

• (4) The Secretary of State may, on the application of any insurer, alter the requirements of any regulations under this section so as to adapt those requirements to the circumstances of that insurer or to any particular kind of contract entered into or proposed to be entered into by that insurer.

• (5) Regulations under this section may, to such extent as may be specified therein, apply in relation to contracts entered into before the coming into operation of the regulations, including contracts entered into before the passing of this Act.

• (6) Regulations under this section shall not apply in relation to any contract the effecting of which by the insurer constitutes the carrying on of industrial assurance business or to any contract entered into by an insurance company to which Part II of this Act applies by reason only that the policy holder is eligible to participate in any established surplus as defined in section 30(4) above.

Scope of Prevention of Fraud (Investments) Acts

79

The agreements and arrangements mentioned in section 13(1) of the Prevention of Fraud (Investments) Act 1958 and section 12(1) of the Prevention of Fraud (Investments) Act (Northern Ireland) 1940 (misleading statements etc. inducing persons to invest money) and in the definition of “dealing in securities ” in section 26(1) of that Act of 1958 and section 22(1) of that Act of 1940 shall not include contracts of insurance.

Capital redemption business

80

Where an insurance company to which Part II of this Act applies carries on capital redemption business in the case of which the premiums in return for which a contract is effected are payable at intervals of less than six months, the company shall not give the holder of any policy issued after 2nd December 1909 any advantage dependent on lot or chance.

Penalties and offences under Part III

81

• (1) Any person guilty of an offence under section 72, 73 or 74 above shall be liable—

• (a) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine, or to both;

• (b) on summary conviction—

• (i) in England and Wales and Northern Ireland, to a fine not exceeding £1,000 or, if it is greater, the prescribed sum within the meaning of section 32 of the Magistrates' Courts Act 1980 ;

• (ii) in Scotland, to a fine not exceeding £1,000 or, if it is greater, the prescribed sum within the meaning of section 289B of the Criminal Procedure (Scotland) Act 1975,

and for the purposes of the application of this subsection in Northern Ireland, the provisions of the Magistrates' Courts Act 1980 which relate to the sum mentioned in paragraph (b)(i) above shall extend to Northern Ireland.

• (2) Any person who makes default in complying with, or with a requirement imposed under, any other provision of this Part of this Act shall be guilty of an offence and liable, on summary conviction in England and Wales and Scotland to a fine not exceeding level 5 on the standard scale and, on summary conviction in Northern Ireland to a fine not exceeding £400.

PART IV — Special Classes of Insurers

Industrial assurance business

82

• (1) In its application to industrial assurance business this Act shall have effect subject to the modifications specified in this section.

• (2) Where an insurance company carries on any industrial assurance business, the company shall deposit with the Industrial Assurance Commissioner and the Industrial Assurance Commissioner for Northern Ireland a copy of any document which relates to industrial assurance business and which is deposited with the Secretary of State under section 22(1), (2) and (6) above or which is supplied by the company to the Secretary of State under section 22(5) above.

• (3) The provisions of sections 22 and 23(1) above shall have effect in relation to any document mentioned in subsection (2) above as if references in those provisions to the Secretary of State included references to the Commissioner and the Commissioner for Northern Ireland.

• (4) Where any document required to be deposited by a company under subsection (4) of section 42 above relates to industrial assurance business the company shall also, within the time required under that subsection, deposit one copy of that document with the Commissioner and the Commissioner for Northern Ireland, and section 71(4) above shall have effect in relation to this subsection as it has effect in relation to that subsection.

• (5) Where any business proposed to be transferred as mentioned in section 49 above is or includes industrial assurance business that section and section 50(4) above shall have effect as if references to the Secretary of State included references to the Commissioner and the Commissioner for Northern Ireland.

• (6) Where any apportionment is made between the industrial assurance business and any other business carried on by the company in respect of management expenses, income from investments, gains or losses on the disposal of investments, appreciation or depreciation in the value of investments, or taxation, the auditor shall include in his report a special report as to the propriety or otherwise of the apportionment; and a copy of every report of the auditor shall be furnished to the Commissioner and the Commissioner for Northern Ireland.

• (7) The provisions of this Act relating to industrial assurance business shall have effect notwithstanding anything in the memorandum or articles of association or rules or special Act of any insurance company carrying on such business; but nothing in this Act shall affect the liability of the industrial assurance fund or of the ordinary long-term insurance fund, in the case of a company established in Great Britain before 1st January 1924 or in Northern Ireland before 1st January 1925, to the prejudice of persons interested in contracts entered into by the company before that date.

• (8) The Commissioner shall include in his annual report under section 44 of the Industrial Assurance Act 1923 a report on his proceedings under this Act, and that section shall have effect accordingly.

Requirements to be complied with by Lloyd's underwriters

83

• (1) The requirements referred to in section 15(4) above are as follows.

• (2) Every underwriter shall, in accordance with the provisions of a trust deed approved by the Secretary of State, carry to a trust fund all premiums received by him or on his behalf in respect of any insurance business.

• (3) Premiums received in respect of long term business shall in no case be carried to the same trust fund under this section as premiums received in respect of general business, but the trust deed may provide for carrying the premiums received in respect of all or any classes of long term business and all or any classes of general business either to a common fund or to any number of separate funds.

• (4) The accounts of every underwriter shall be audited annually by an accountant approved by the Committee of Lloyd's and the auditor shall furnish a certificate in the prescribed form to the Committee and the Secretary of State.

• (5) The said certificate shall in particular state whether in the opinion of the auditor the value of the assets available to meet the underwriter's liabilities in respect of insurance business is correctly shown in the accounts, and whether or not that value is sufficient to meet the liabilities calculated—

• (a) in the case of liabilities in respect of long term business, by an actuary ; and

• (b) in the case of other liabilities, by the auditor on a basis approved by the Secretary of State.

• (6) Where any liabilities of an underwriter are calculated by an actuary under subsection (5) above, he shall furnish a certificate of the amount thereof to the Committee of Lloyd's and to the Secretary of State, and shall state in his certificate on what basis the calculation is made; and a copy of his certificate shall be annexed to the auditor's certificate.

• (7) The underwriter shall, when required by the Committee of Lloyd's, furnish to them such information as they may require for the purpose of preparing the statement of business which is to be deposited with the Secretary of State under section 86 below.

Lloyd's underwriters-financial resources

84

• (1) Subject to such modifications as may be prescribed and to any determination made by the Secretary of State in accordance with regulations, sections 32, 33 and 35 above shall apply to the members of Lloyd's taken together as they apply to an insurance company to which Part II of this Act applies and whose head office is in the United Kingdom.

• (2) The powers conferred on the Secretary of State by sections 38 to 41, 44 and 45 above shall be exercisable in relation to the members of Lloyd's if there is a breach of an obligation imposed by virtue of subsection (1) above.

Lloyd's underwriters-transfer of business

85

• (1) Sections 49 to 52 above shall apply in relation to transfers to and from members of Lloyd's if, and only if, the conditions specified in subsection (2) below are satisfied.

• (2) The conditions referred to in subsection (1) above are—

• (a) that the transfer is not one where both the transferor and the transferee are members of Lloyd's ;

• (b) that the Committee of Lloyd's have by resolution authorised one person to act in connection with the transfer for the members concerned as transferor or transferee ;

• (c) that a copy of the resolution has been given to the Secretary of State.

• (3) Where sections 49 and 50 or sections 51 and 52 above apply in relation to a transfer to or from members of Lloyd's they shall apply as if—

• (a) references to insurance companies to which Part II of this Act applies, or to persons authorised under section 3 or 4 of this Act, included references to members of Lloyd's; and

• (b) anything done in connection with the transfer by theperson authorised in accordance with subsection (2)(b) above had been done by the members for whom he acted.

Statement of business by Committee of Lloyd's

86

• (1) The Committee of Lloyd's shall deposit every year with the Secretary of State a statement in the prescribed form summarising the extent and character of the insurance business done by the members of Lloyd's in the twelve months to which the statement relates.

• (2) Regulations made for the purposes of this section may require the statement to deal separately with such classes or descriptions of business as may be specified in the regulations.

Companies established outside the United Kingdom

87

• (1) The provisions specified in subsection (2) below, if, apart from this section they would not so apply, shall apply in relation to an insurance company incorporated outside the United Kingdom which carries on insurance business within Great Britain or, as the case may be, Northern Ireland as they apply in relation to overseas companies within the meaning of section 406 of the Companies Act 1948 or, as the case may be, companies to which Part X of the Companies Act (Northern Ireland) 1960 applies.

• (2) The provisions referred to in subsection (1) above are—

• (a) sections 407, 409, 411 to 415 and 425(2) of the Companies Act 1948,

• (b) sections 9 to 11 and 37 of the Companies Act 1976,

• (c) sections 356, 358 to 364 and 373 of the Companies Act (Northern Ireland) 1960, and

• (d) Articles 11 to 13 of the Companies (Northern Ireland) Order 1978.

Unregistered companies

88

• (1) Every insurance company to which Part II of this Act applies, being a company which is not registered under the Companies Act 1948, under the Companies Act (Northern Ireland) 1960 or under the former Companies Acts—

• (a) if it has not incorporated in its deed of settlement section 10 of the Companies Clauses Consolidation Act 1845, shall keep a shareholders address book in accordance with the provisions of that section and shall, on the application of any shareholder or policy holder of the company, furnish to him a copy of the book on payment of a sum not exceeding 2£p for every hundred words required to be copied;

• (b) shall cause a sufficient number of copies of its deed of settlement to be printed and shall, on the application of any shareholder or policy holder of the company, furnish to him one of those copies on payment of a sum not exceeding 5p.

• (2) Any insurance company which makes default in complying with this section shall be guilty of an offence and liable on summary conviction in England and Wales and Scotland to a fine not exceeding level 5 on the standard scale and, on summary conviction in Northern Ireland to a fine not exceeding £400.

Insurance companies formed before 1967 in contravention of section 434 of the Companies Act 1948

89

• (1) Section 434 of the Companies Act 1948 (which in certain cases forbids the formation otherwise than under that Act of a company, association or partnership consisting of more than twenty persons) shall be deemed not to have invalidated the formation of any insurance company which immediately before 3rd November 1966 was carrying on in Great Britain insurance business of any class relevant for the purposes of Part I of the Insurance Companies Act 1974 and was carrying on business of that class on 25th July 1973.

• (2) In subsection (1) above the reference to the said section 434 includes a reference to any corresponding enactment previously in force.

PART V — Supplementary Provisions

Valuation regulations

Power to make valuation regulations

90

• (1) Regulations may be made with respect to the determination of the value of assets and the amount of liabilities in any case in which the value or amount is required by any provision of this Act to be determined in accordance with valuation regulations.

• (2) Without prejudice to the generality of subsection (1) above, regulations under this section may provide that, for any specified purpose, assets or liabilities of any specified class or description shall be left out of account or shall be taken into account only to a specified extent.

• (3) Regulations under this section may make different provision in relation to different cases or circumstances and for the purposes of different enactments.

Criminal proceedings

Criminal liability of directors

91

• (1) Where an offence under this Act committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, chief executive, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity, he, as well as the body corporate, shall be guilty of that offence and liable to be proceeded against and punished accordingly.

• (2) For the purposes of this section a person shall be deemed to be a director of a body corporate if he is a person in accordance with whose directions or instructions the directors of the body corporate or any of them act.

Criminal proceedings against unincorporated bodies

92

• (1) Proceedings for an offence alleged to have been committed under this Act by an unincorporated body shall be brought in the name of that body (and not in that of any of its members) and, for the purposes of any such proceedings, any rules of court relating to the service of documents shall have effect as if that body were a corporation.

• (2) A fine imposed on an unincorporated body on its conviction of an offence under this Act shall be paid out of the funds of that body.

• (3) In a case in which an unincorporated body is charged with an offence under this Act—

• (a) in England or Wales, section 33 of the Criminal Justice Act 1925 and Schedule 3 to the Magistrates' Courts Act 1980 (procedure on charge of offence against a corporation);

• (b) in Northern Ireland, section 18 of the Criminal Justice Act (Northern Ireland) 1945 and Schedule 4 to the Magistrates' Courts (Northern Ireland) Order 1981 (procedure on charge of offence against a corporation)

shall have effect in like manner as they have effect in the case of a corporation so charged.

• (4) In relation to any proceedings on indictment in Scotland for an offence alleged to have been committed under this Act by an unincorporated body, section 74 of the Criminal Procedure (Scotland) Act 1975 (proceedings on indictment against bodies corpora(e) shall have effect as if that body were a body corporate.

Restriction on institution of prosecutions

93

Proceedings in respect of an offence under this Act shall not be instituted—

• (a) in England or Wales, except by or with the consent of the Secretary of State, the Industrial Assurance Commissioner or the Director of Public Prosecutions,

• (b) in Northern Ireland, except by or with the consent of the Secretary of State, the Department of Commerce for Northern Ireland or the Director of Public Prosecutions for Northern Ireland.

Summary proceedings

94

• (1) Summary proceedings for any offence under this Act may (without prejudice to any jurisdiction exercisable apart from this subsection) be taken against a body corporate at any place at which the body has a place of business, and against any other person at any place at which he is for the time being.

• (2) Notwithstanding anything in section 127 of the Magistrates' Courts Act. 1980, an information relating to an offence under this Act which is triable by a magistrates' court in England and Wales may be so tried if it is laid at any time within three years after the commission of the offence and within twelve months after the date on which evidence sufficient, in the opinion of the Director of Public Prosecutions, the Secretary of State or the Industrial Assurance Commissioner, as the case may be, to justify the proceedings comes to his knowledge.

• (3) Summary proceedings in Scotland for an offence under this Act shall not be commenced after the expiration of three years from the commission of the offence.

• (4) Subject to the limitation in subsection (3) above and notwithstanding anything in section 331 of the Criminal Procedure (Scotland) Act 1975, the proceedings referred to in that subsection may be commenced at any time within twelve months after the date on which evidence sufficient in the opinion of the Lord Advocate to justify the proceedings comes to his knowledge or, where such evidence was reported to him by the Secretary of State or the Industrial Assurance Commissioner, within twelve months after the date on which it came to the knowledge of the Secretary of State or Commissioner.

• (5) Subsection (3) of section 331 of the said Act of 1975 shall apply for the purposes of subsections (3) and (4) above as it applies for the purposes of that section.

• (6) Notwithstanding anything in Article 19(1) of the Magistrates' Courts (Northern Ireland) Order 1981, a complaint relating to an offence under this Act which is triable by a court of summary jurisdiction in Northern Ireland may be so tried if it is made at any time within three years after the commission of the offence and within twelve months after the date on which evidence sufficient, in the opinion of the Director of Public Prosecutions for Northern Ireland, the Secretary of State or the Department of Commerce for Northern Ireland, as the case may be, to justify the proceedings comes to his or that Department's knowledge.

• (7) For the purposes of this section a certificate of the Director of Public Prosecutions, the Lord Advocate, the Director of Public Prosecutions for Northern Ireland, the Secretary of State, the Department of Commerce for Northern Ireland or the Industrial Assurance Commissioner, as the case may be, as to the date on which such evidence as aforesaid came to his, or that Department's, knowledge shall be conclusive evidence.

Interpretation

Insurance business

95

For the purposes of this Act “insurance business” includes—

• (a) the effecting and carrying out, by a person not carrying on a banking business, of contracts for fidelity bonds, performance bonds, administration bonds, bail bonds or customs bonds or similar contracts of guarantee, being contracts effected by way of business (and not merely incidentally to some other business carried on by the person effecting them) in return for the payment of one or more premiums ;

• (b) the effecting and carrying out of tontines;

• (c) the effecting and carrying out, by a body (not being a body carrying on a banking business) that carries on business which is insurance business apart from this paragraph, of—

• (i) capital redemption contracts;

• (ii) contracts to manage the investments of pension funds (other than funds solely for the benefit of its own officers or employees and their dependants or, in the case of a company, partly for the benefit of those persons and partly for the benefit of officers or employees and their dependants of its subsidiary or holding company or a subsidiary of its holding company);

• (d) the effecting and carrying out of contracts to pay annuities on human life.

General interpretation

96

• (1) In this Act, unless the context otherwise requires—

• “actuary” means an actuary possessing the prescribed qualifications;

• “annuities on human life” does not include superannuation allowances and annuities payable out of any fund applicable solely to the relief and maintenance of persons engaged or who have been engaged in any particular profession, trade or employment, or of the dependants of such persons ;

• “body corporate” does not include a corporation sole or a Scottish firm but includes a body incorporated outside the United Kingdom;

• “chief executive” has the meaning given in section 7 above;

• “contract of insurance” includes any contract the effecting of which constitutes the carrying on of insurance business by virtue of section 95 above ;

• “controller” has the meaning given in section 7 above ;

• “court” means the High Court of Justice in England or, in the case of an insurance company registered or having its head office in Scotland, the Court of Session or, in the case of an insurance company registered or having its head office in Northern Ireland, the High Court of Justice in Northern Ireland ;

• “deed of settlement”, in relation to an insurance company, includes any instrument constituting the company;

• “director” includes any person occupying the position of director by whatever name called ;

• “enactment” includes an enactment of the Parliament of Northern Ireland and a Measure of the Northern Ireland Assembly;

• “financial year” means, subject to section 69 above, each period of twelve months at the end of which the balance of the accounts of the insurance company is struck or, if no such balance is struck, the calendar year;

• “former Companies Acts” means the Companies Act 1929 or the Companies Act (Northern Ireland) 1932 and any enactment repealed by that Act of 1929 or, as the case may be, that Act of 1932 or by the Companies (Consolidation) Act 1908;

• “general business” has the meaning given in section 1 above;

• “holding company” shall be construed in accordance with section 154 of the Companies Act 1948 or section 148 of the Companies Act (Northern Ireland) 1960;

• “industrial assurance business” has the meaning given in section 1(2) of the Industrial Assurance Act 1923 or Articles 2(2) and 3(1) of the Industrial Assurance (Northern Ireland) Order 1979 ;

• “insolvent” means, in relation to an insurance company at any relevant date, that if proceedings had been taken for the winding up of the company the court could, in accordance with the provisions of sections 222 and 223 or section 399 of the Companies Act 1948 or, as the case may be, sections 210 and 211 or section 349 of the Companies Act (Northern Ireland) 1960, hold or have held that the company was at that date unable to pay its debts;

• “insurance company” means a person or body of persons (whether incorporated or not) carrying on insurance business;

• “life policy” means any instrument by which the payment of money is assured on death (except death by accident only) or the happening of any contingency dependent on human life, or any instrument evidencing a contract which is subject to payment of premiums for a term dependent on human life ;

• “long term business” has the meaning given in section 1 above;

• “long term policy holder” means a policy holder in respect of a policy the effecting of which by the insurer constituted the carrying on of long term business; “main agent” has the meaning given in section 7 above ;

• “manager ”, except in section 56, has the meaning given in section 7 above;

• “margin of solvency ”. “United Kingdom margin of solvency ” and " Community margin of solvency shall be construed in accordance with section 32 above;

• “mortgage”, in relation to Scotland, means a heritable security within the meaning of section 9(8) of the Conveyancing and Feudal Reform (Scotland) Act 1970 ;

• “ordinary long-term insurance business” means long term business that is not industrial assurance business ;

• “policy ”— in relation to ordinary long-term insurance business and industrial assurance business, includes an instrument evidencing a contract to pay an annuity upon human life; in relation to insurance business of any other class includes any policy under which there is for the time being an existing liability already accrued or under which a liability may accrue ; and in relation to capital redemption business, includes any policy, bond, certificate, receipt or other instrument evidencing the contract with the company ;

• “policy holder” means the person who for the time being is the legal holder of the policy for securing the contract with the insurance company or, in relation to capital redemption business, means the person who for the time being is the legal holder of the policy, bond, certificate, receipt or other instrument evidencing the contract with the company, and— in relation to such ordinary long-term insurance business or industrial assurance business as consists in the granting of annuities upon human life, includes an annuitant; and in relation to insurance business of any kind other than such as is mentioned in the foregoing paragraph or capital redemption business, includes a person to whom, under a policy, a sum is due or a periodic payment is payable ;

• “prescribed” means prescribed by regulations under this Act;

• “registered society” means a society registered or deemed to be registered under the Industrial and Provident Societies Act 1965 or the Industrial and Provident Societies Act (Northern Ireland) 1969 ;

• “registrar of companies” has the meaning given in section 455 of the Companies Act 1948 and “registrar of companies in Northern Ireland” means the registrar of companies within the meaning of section 399(1) of the Companies Act (Northern Ireland) 1960 ;

• “subsidiary ”, except in section 57, shall be construed in accordance with section 154 of the Companies Act 1948 or section 148 of the Companies Act (Northern Ireland) 1960:

• “supervisory authority”, in relation to a member State other than the United Kingdom, means the authority responsible in that State for supervising insurance companies;

• “underwriter” includes any person named in a policy or other contract of insurance as liable to pay or contribute towards the payment of the sum secured by the policy or contract;

• “valuation regulations” means regulations under section 90 above;

• “vessel” includes hovercraft.

• (2) References in this Act to a fund or funds maintained in respect of long term business are references to a fund or funds maintained under section 28(1)(b) above and in sections 48(3) and 55(6) above include references to a fund or funds maintained under section 3(1) of the Insurance Companies Act 1958 or section 14(1) of the Insurance Companies Act (Northern Ireland) 1968.

• (3) A person shall not be deemed to be within the meaning of any provision of this Act a person in accordance with whose directions or instructions the directors of a company or other body corporate or any of them are accustomed to act by reason only that the directors of the company or body act on advice given by him in a professional capacity.

• (4) Any reference in this Act to an enactment of the Parliament of Northern Ireland or a Measure of the Northern Ireland Assembly shall include a reference to any enactment re-enacting it with or without modifications.

Supplementary

Regulations and orders

97

• (1) The Secretary of State may make regulations under this Act for any purpose for which regulations are authorised or required to be made thereunder.

• (2) Regulations under this Act may make different provision for cases of different descriptions.

• (3) Any power conferred by this Act to make regulations shall be exercisable by statutory instrument.

• (4) Any statutory instrument containing regulations under this Act shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Annual report by Secretary of State

98

The Secretary of State shall cause a general annual report of matters within this Act to be laid before Parliament.

Savings, transitionals, consequential amendments and repeals

99

• (1) The saving and transitional provisions specified in Schedule 4 to this Act shall have effect.

• (2) The enactments mentioned in Schedule 5 to this Act shall have effect subject to the amendments there specified, being amendments consequential on the provisions of this Act.

• (3) The enactments mentioned in Schedule 6 to this Act are hereby repealed to the extent specified in the third column of that Schedule.

Short title, commencement and extent

100

• (1) This Act may be cited as the Insurance Companies Act 1982.

• (2) Subject to Schedule 4 to this Act, this Act shall come into force at the expiration of the period of three months beginning with the date on which it is passed.

• (3) This Act extends to Northern Ireland.

SCHEDULE 1

SCHEDULE 2

PART I — Classes

PART II — Groups of Classes

SCHEDULE 3

1

Subject to the following provisions of this Schedule, the premium limit for the purposes of section 7(6) above is the aggregate of the amounts of gross premiums shown in the annual accounts relating to the business of the applicant in the United Kingdom last deposited under section 22 above as receivable in respect of general business in the financial year to which the accounts relate.

2

If the accounts so deposited relate to a financial year which is not a period of 12 months, the aggregate of the amounts of gross premiums shown in the accounts as receivable in that financial year shall be divided by the number of months in that financial year and multiplied by twelve.

3

If no accounts have been deposited under section 22 above the aggregate amount of gross premiums shall be the amount or, if more than one amount, the lower or lowest amount, shown in respect of gross premiums relating to the business of the applicant in the United Kingdom in the financial forecast last submitted by the applicant in accordance with regulations made for the purposes of section 5(1)(o) above.

SCHEDULE 4

Saving for requirements, directions and powers under the Companies Act 1967

1

The repeal by the Insurance Companies Amendment Act 1973 of sections 65, 68 and 80 and subsection (1)(f) of section 109 of the Companies Act 1967 shall not affect—

• (a) any requirement or direction imposed or given under any of those sections before 25th July 1973 ;

• (b) the giving of a direction under the said section 68 in any case in which a notice has been served under subsection (3) of that section before that date ; or

• (c) the exercise by an officer of any powers under the said section 109 in a case in which he has been authorised before that date to exercise them ;

and the said Act of 1967 shall have effect in relation to any such requirement, direction or powers as if the said Act of 1973, the Insurance Companies Act 1974 and this Act had not been passed.

Periodic actuarial investigations under section 18 above in relation to any period of twelve months beginning before 1st October 1982

2

In relation to any period of twelve months beginning before 1st October 1982, section 18 of this Act shall have effect as if—

• (a) for subsection (1)(a) there were substituted—

(a) shall, once in every three years or at such shorter intervals as may be prescribed by the deed of settlement of the company or by its regulations or byelaws, cause an investigation to be made into its financial condition in respect of that business, including a valuation of its liabilities in respect thereof, by the person who for the time being is its actuary under section 19(1) below or any corresponding enactment previously in force ; and

;

• (b) subsection (2) were omitted.

Adjustments of established surplus for purposes of section 30(1) above

3

For the purposes of section 30(1) of this Act, where an established surplus corresponds partly but not wholly with a previously established surplus which was the latest to be established before 1st January 1982—

• (a) an adjustment shall be made to that previously established surplus so as to make it as nearly as may be comparable with the first-mentioned surplus, and

• (b) the relevant minimum shall be determined on the basis of that adjustment and an analogous adjustment of the allocation from that previously established surplus.

Margins of solvency

4

The requirements of sections 32 and 33 of this Act (or of regulations made for the purposes of those sections) shall not apply until 15th March 1984 in relation to long term business if the company concerned—

• (a) was carrying on long term business in the United Kingdom immediately before 1st January 1982, and

• (b) has not after that date obtained an authorisation under the Insurance Companies Act 1981 for a class of long term business for which on 1st January 1982 it was not authorised under that Act, and

• (c) does not after the commencement of this Act obtain an authorisation under this Act for a class of long term business for which on 1st January 1982 it was not authorised under the Insurance Companies Act 1981.

5

So long as paragraph 4 above applies to a company and a class of long term business carried on by it, then, in relation to that company and that business, the grounds for withdrawal of authorisation set out in section 11(2) of this Act shall be deemed to include the grounds set out in section 28(1 )(a) and (2) of the Insurance Companies Act 1974 as in force immediately before 1st January 1982.

Postponement of coming into force of section 36 above

6

If no regulations under section 27 of the Insurance Companies Act 1974 have come into operation before the expiration of the period mentioned in section 100(2) above section 36 of this Act shall not take effect until the first regulations under the said section 27 or 36 come into operation.

Saving for schemes of operation submitted under Insurance Companies (Authorisation and Accounts: General Business) Regulations

7

For the purposes of section 37(2)(f) of this Act, a scheme of operations submitted pursuant to regulation 5 of the Insurance Companies (Authorisation and Accounts: General Business) Regulations 1978 shall be regarded as a proposal or forecast submitted in accordance with section 5 of this Act.

Saving for requirements under section 29 of the Insurance Companies Act 1974

8

Where a requirement under section 29 of the Insurance Companies Act 1974 was in force immediately before 1st January 1982—

• (a) that requirement shall continue in force,

• (b) any requirement imposed under sections 30 to 37 of that Act on the company concerned, if it was in force immediately before that day, shall continue in force, and

• (c) section 47(1) of this Act shall apply to any requirement that continues in force under sub-paragraph (a) or (b) above.

Postponement of effect of sections 37(3) and 38(3) above in respect of long term business

9

Until 15th March 1984, sections 37(3) and 38(3) of this Act shall not affect requirements imposed on companies before 1st January 1982 in respect of long term business.

Deposits made with Accountant General before 1st January 1982

10

A deposit made under regulation 6 of the Insurance Companies (Solvency: General Business) Regulations 1977 shall, in so far as it remained with the Accountant General of the Supreme Court immediately before 1st January 1982, be regarded as having been made under section 9(1)(c) of this Act.

Continuation of business where contract made before 1st January 1982

11

Where—

• (a) as a result of the repeal of section 83(2)(b) of the Insurance Companies Act 1974 any particular kind of ordinary long-term insurance business has become general business, and

• (b) an insurance company was immediately before 1st January 1982 lawfully carrying on that particular kind of business in the United Kingdom,

then, notwithstanding the lack of an authorisation to carry on general business, the company may continue to carry out any contract of insurance relating to that particular kind of business if the contract was made before 1st January 1982.

Applications for approval of transfer made before 1st January 1982

12

Where an application to the Secretary of State under the Insurance (Transfer of General Business) Regulations 1980 for approval of a transfer has been made before 1st January 1982 and not determined before the commencement of this Act, the application shall be determined in accordance with the law in force immediately before 1st January 1982.

Saving for section 42 of the Insurance Companies Act 1974

13

Section 42 of the Insurance Companies Act 1974 shall continue to have effect in relation to an application made to the court under that section before 1st January 1982 as if this Act and section 27 of the Insurance Companies Act 1981 had not been enacted and section 50 of this Act shall apply to an order made by virtue of this paragraph as if it were an order made under section 49 of this Act.

Postponement of effect of section 54(1)(c) of this Act in relation to unregistered companies

14

Until the coming into force of section 12 of the Companies Act 1976 in relation to unregistered companies to which section 147 of the Companies Act 1948 applies by virtue of section 435 of the said Act of 1948, section 54(1)(c) of this Act shall have effect in relation to such companies as if—

• (a) for the reference to section 12 of the Companies Act 1976 there were substituted a reference to section 147 of the Companies Act 1948 ;

• (b) for the reference to accounting records there were substituted a reference to proper books of account;

• (c) for the reference to records there were substituted a reference to books.

Saving for winding up commenced before rules made under section 365 of the Companies Act 1948 or section 317 of the Companies Act (Northern Ireland) I960

15

The provisions of this Act, so far as re-enacting provisions of the Insurance Companies Act 1974 which repealed and re-enacted provisions of the Insurance Companies Amendment Act 1973 relating to winding up, shall not affect any winding up commenced before the date on which the first rules made under section 365 of the Companies Act 1948 or, as the case may be, section 317 of the Companies Act (Northern Ireland) 1960 by virtue of section 51(2) of the said Act of 1974 or section 59(2) above come into operation.

Saving for repeal of section 17(2) and (3) of, and Schedules 3 and 4 to, the Insurance Companies Act 1958

16

If no rules under section 51(2) of the Insurance Companies Act 1974 have come into operation before the commencement of this Act the repeal of section 17(2) and (3) of, and Schedules 3 and 4 to, the Insurance Companies Act 1958 shall not take effect until the first rules made under section 365 of the Companies Act 1948 or, as the case may be, section 317 of the Companies Act (Northern Ireland) 1960 by virtue of the said section 51(2) or section 59(2) above come into operation.

Northern Ireland

17

Section 17(2)(a) of the Interpretation Act 1978 shall not apply to the reference to the Insurance Companies Act 1974 in paragraph 2 of Schedule 4 to the Insurance Companies Act 1980.

18

Until Articles 3, 11, 13 and 25 of the Companies (Northern Ireland) Order 1978 come into operation the following provisions of this Act shall have effect subject to the following modifications—

• (a) in section 54(2)(c) for the reference to Article 25 of that Order there shall be substituted a reference to sections 141 and 297 of the Companies Act (Northern Ireland) 1960;

• (b) in section 66 for the reference to Article 3 or 11 of that Order there shall be substituted a reference to section 122, 142 or 359 of that Act;

• (c) in section 87(2)(d) for the reference to Articles 11 to 13 of that Order there shall be substituted a reference to sections 359 and 363 of that Act.

Continuing offences

19

Where an offence for the continuance of which a penalty was provided has been committed under any enactment repealed by this Act proceedings may be taken under this Act in respect of the continuance of the offence after the commencement of this Act in the like manner as if the offence had been committed under the corresponding provision of this Act.

Transitional provisions relating to sections 9(7), 71(3), 81(2) and 88(2) of this Act

20

Until the coming into force of paragraph (g) of subsection (2) of section 46 of the Administration of Justice Act 1982, the reference in section 9(7) of this Act to section 38(7) of that Act shall be construed as a reference to section 7 of the Administration of Justice Act 1965.

21

In relation to offences under this Act committed in England and Wales before the aiming into force of section 38 of the Criminal Justice Act 1982 or in Scotland before the coming into force of section 54 of that Act the reference in each of the following provisions of this Act, namely—

• (a) section 71(3),

• (b) section 81(2) and

• (c) section 88(2)

to level 5 on the standard scale shall have effect as a reference to £400.

General

22

Subject to paragraph 17 above and without prejudice to any express amendment made by this Act, any enactment or other document whatsoever referring to any enactment repealed by this Act shall, unless the context otherwise requires, be construed as referring (or as including a reference) to the corresponding enactment in this Act.

23

Without prejudice to paragraph 22 above, any enactment or document whatsoever referring to an assurance company within the meaning of the Assurance Companies Act 1909 shall be construed as referring (or as including a reference) to an insurance company to which Part II of this Act applies.

24

Where a period of time specified in any enactment repealed by this Act is current at the commencement of this Act, this Act has effect as if the corresponding provision of this Act had been in force when that period began to run.

SCHEDULE 5

The Companies Act 1948

1

In the Companies Act 1948—

• (a) in section 433(6) for “1974 ” substitute “1982 ”;

• (b) in paragraph 24(1) of Schedule 8A for “1974 ” substitute “1982 ”.

The Companies Act (Northern Ireland) 1960

2

In the Companies Act (Northern Ireland) 1960—

• (a) in section 381(6) for “1974 ” substitute “1982 ”;

• (b) in paragraph 24(1) of Schedule 6 for “1974 ” substitute “1982 ”

The Building Societies Act 1968

3

In the Building Societies Act 1962—

• (a) in section 129(1), in the definition of “policy of life assurance ” for “1974 ” substitute “1982 ”;

• (b) in paragraphs 2, 7 and 9 of Schedule 3 for “1974 ” substitute “1982 ”.

The Housing Subsidies Act 1967

4

In section 32(1) of the Housing Subsidies Act 1967 for “1974 ” substitute “1982 ”.

The Building Societies Act (Northern Ireland) 1967

5

In section 128(1) of the Building Societies Act (Northern Ireland) 1967 for “1974 ” substitute “1982 ”.

The Companies Act 1967

6

In the Companies Act 1967—

• (a) in section 89(1) for “1974 ” substitute “1982 ”;

• (b) in section 111(1)

• (i) for the words " section 36(2) to (4) of the Insurance Companies Act 1974“there shall be substituted the words ” section 44(2) to (4) of the Insurance Companies Act 1982 ";

• (ii) for the words from “1974 ” to “1981 ” substitute “1982 ”;

• (c) in section 113(1) for “1974 ” substitute “1982 ”;

• (d) in section 116 for the words “section 36(2) to (4) of the Insurance Companies Act 1974 ” there shall be substituted the words “section 44(2) to (4) of the Insurance Companies Act 1982 ”.

The Children and Young Persons Act (Northern Ireland) 1968

7

In section 7 of the Children and Young Persons Act (Northern Ireland) 1968 for “1974 ” substitute “1982 ”.

The Employers' Liability (Compulsory Insurance) Act 1969

8

In section 1(3)(b) of the Employers' Liability (Compulsory Insurance) Act 1969 for “1981 ” substitute “1982 ”.

The Fire Services Act (Northern Ireland) 1969

9

In section 24(3) of the Fire Services Act (Northern Ireland) 1969 for “1981 ” substitute “1982 ”.

The Income and Corporation Taxes Act 1970

10

In the Income and Corporation Taxes Act 1970—

• (a) in section 19(2)(a)(ii) for the words "section 73 of the Insurance Companies Act 1974 “there shall be substituted the words ” section 83 of the Insurance Companies Act 1982 ";

• (b) in section 323(2) for “1974” (in both places) substitute “1982 ”.

The Employer's Liability (Defective Equipment and Compulsory Insurance) (Northern Ireland) Order 1972

11

In Article 5(3)(b) of the Employer's Liability (Defective Equipment and Compulsory Insurance) (Northern Ireland) Order 1972 for “1981 ” substitute “1982 ”.

The Road Traffic Act 1972

12

In section 145(2) of the Road Traffic Act 1972 for “1981 ” substitute “1982 ”.

The Local Government Act 1972

13

In the Local Government Act 1972—

• (a) in section 140(1) for “1981 ” substitute “1982 ”;

• (b) in paragraph (a) of section 140C(1) for “1981 ” substitute “1982 ”.

The Consumer Credit Act 1974

14

In section 189(1) of the Consumer Credit Act 1974 in the definition of “insurance company” for the words from “section 33(1)” to “1968 ” there shall be substituted the words “section 96(1) of the Insurance Companies Act 1982 ”.

The Solicitors Act 1974

15

In section 87(1) of the Solicitors Act 1974—

• (a) in the definition of “authorised insurer ” for “1974 ” substitute “1982 ”;

• (b) in the definition of “liability insurance business ” for “1981 ” substitute “1982 ”;

• (c) in the definition of “pecuniary loss insurance business ” for “1981 ” substitute “1982 ”.

The Policyholders Protection Act 1975

16

In the Policyholders Protection Act 1975—

• (a) in section 3(2) for “1981 ” substitute “1982 ”;

• (b) in subsections (1) and (3) of section 28 for the words from “1974 ” to “1981 ” there shall be substituted “1982 ”;

• (c) in section 29 for the words from “1974 ” to “1981” (in both places) there shall be substituted “1982 ”;

• (d) in section 32(2)(a) for “1974 ” substitute “1982 ”;

• (e) in paragraph 5(3) of Schedule 3 for the words " Sections 28(1)(b)(i) and 46(1)(b) of the Insurance Companies Act 1974“there shall be substituted the words ” Sections 37(2)(b)(i) and 54(1)(b) of the Insurance Companies Act 1982 ";

• (f) in paragraph 5(4) of Schedule 3 for the words “Sections 79 to 82 of the Insurance Companies Act 1974 ” there shall be substituted the words “Sections 91 to 94 of the Insurance Companies Act 1982 ”.

The Finance Act 1976

17

In paragraph 2A of Schedule 4 to the Finance Act 1976 in sub-paragraph (1) for “1981” substitute “1982 ”.

The Insurance Brokers (Registration) Act 1977

18

In section 29(1) of the Insurance Brokers (Registration) Act 1977 in the definition of “authorised insurers ”—

• (a) for “1974 ” substitute “1982 ”;

• (b) for “1981 ” substitute “1982 ”.

The Companies (Northern Ireland) Order 1978

19

In the Companies (Northern Ireland) Order 1978—

• (a) in Article 108(1) for the words “section 36 of the Insurance Companies Act 1974 ” there shall be substituted the words “section 44 of the Insurance Companies Act 1982 ”;

• (b) in Article 109(1) for the words “section 36 of the Insurance Companies Act 1974 ” there shall be substituted the words “section 44 of the Insurance Companies Act 1982 ” ; and in sub-paragraphs (a) and (c) for “1974” substitute “1982 ”;

• (c) in Article 110(1) for the words “section 36(1) of the Insurance Companies Act 1974 ” there shall be substituted the words “section 44(1) of the Insurance Companies Act 1982 ”.

The Credit Unions Act 1979

20

In section 15(2)(J) of the Credit Unions Act 1979 for “1974 ” substitute “1982 ”.

The Banking Act 1979

21

In paragraph 8 of Schedule 1 to the Banking Act 1979 for “1981 ” substitute “1982 ”.

The Industrial Assurance (Northern Ireland) Order 1979

22

In the Industrial Assurance (Northern Ireland) Order 1979—

• (a) in Article 3(4) for the words “Acts 1974 and 1981 ” there shall be substituted the words “Act of 1982 ” ; and the words “of 1981 ” (in each place) shall be omitted;

• (b) in Article 18(1) for “1974 ” substitute “1982 ”;

• (c) in Article 32(1)(b) for “1974 ” substitute “1982 ”;

• (d) in Article 40 for the words "Sections 42 and 43 of the Insurance Companies Act 1974 “there shall be substituted the words ” Sections 49 and 50 of the Insurance Companies Act 1982 " ; and for “72(6)” substitute “82(5) ”;

• (e) in Article 50(2) for “1974 ” substitute “1982 ”;

• (f) in paragraph 1 of Schedule 5 for the words “section 85(1) of the Insurance Companies Act 1974 ” there shall be substituted the words “section 96(1) of the Insurance Companies Act 1982 ”;

• (g) in paragraph 6 of Schedule 5 for “1974 ” substitute “1982 ”.

The Companies Act 1980

23

In section 42(3) of the Companies Act 1980 for the words “section 14 of the Insurance Companies Act 1974 ” there shall be substituted the words “section 18 of the Insurance Companies Act 1982 ” ; and for the words “section 34 ” there shall be substituted the words “section 42 ”.

The Finance Act 1980

24

In section 30 of the Finance Act 1980 for the words from "“85(1)” to “1981 ” mere shall be substituted the words “96(1) of the Insurance Companies Act 1982 ”.

The Finance Act 1981

25

In section 41(5) of the Finance Act 1981 for “1981 ” substitute “1982 ”.

The Companies Act 1981

26

In the Companies Act 1981—

• (a) in section 5(5)(c) for “1974 ” substitute “1982 ”;

• (b) in paragraph 8 of Schedule 2 in the definition of “insurance company ” for “1974 ” substitute “1982 ”.

The Road Traffic (Northern Ireland) Order 1981

27

In Article 101(1) of the Road Traffic (Northern Ireland) Order 1981 for "“1981” (in both places) substitute “1982 ”.

The Finance Act 1982

28

In the Finance Act 1982—

• (a) in section 103(3)(b) for “1981” substitute “1982 ”;

• (b) in Schedule 7 in sub-paragraph (e) and in sub-paragraph (o) of paragraph 14(1), for “1981 ” substitute “1982 ”.

SCHEDULE 6