Insurance Companies Act 1982 (repealed)

Part VU.K. Supplementary Provisions

Valuation regulationsU.K.

90 Power to make valuation regulations.U.K.

(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 proceedingsU.K.

91 Criminal liability of directors.U.K.

(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.

92 Criminal proceedings against unincorporated bodies.U.K.

(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 M1Criminal Justice Act 1925 and Schedule 3 to the M2Magistrates’ Courts Act 1980 (procedure on charge of offence against a corporation);

(b)in Northern Ireland, section 18 of the M3Criminal Justice Act (Northern Ireland) 1945 and Schedule 4 to the M4Magistrates’ 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 M5Criminal Procedure (Scotland) Act 1975 (proceedings on indictment against bodies corporate) shall have effect as if that body were a body corporate.

93 Restriction on institution of prosecutions.U.K.

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.

94 Summary proceedings.U.K.

(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 sufficent 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 M6Magistrates’ 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.

[F1 Law applicable to certain contracts of insurance]U.K.

[F294B] Law applicable to certain contracts of insurance.U.K.

(1)The law applicable to a contract of insurance the effecting of which constitutes general business, and which covers risks situated in the United Kingdom or another member State, shall be determined in accordance with the provisions of Schedule 3A to this Act.

(2)Those provisions do not apply in relation to a contract of reinsurance.

[F3 Fees]U.K.

94A Fees.U.K.

(1)When documents are deposited under section 22(1) above the company concerned shall pay to the Secretary of State such fee as may be prescribed.

(2)In the case of a company for which a fee is prescribed, documents shall not be taken to have been deposited under section 22(1) until the company has paid the fee.

(3)When a statement is deposited under section 86(1) above the Council of Lloyd’s shall pay to the Secretary of State such fee as may be prescribed.

(4)In making regulations for the purposes of subsections (1) and (3) above the Secretary of State shall have regard to the object of securing (so far as practicable) that the amount of the fees payable in any relevant period by insurance companies and the Council of Lloyd’s is equal to the cost incurred, or likely to be incurred, in the period by the Secretary of State in exercising relevant functions.

(5)This section does not apply where documents are, or a statement is, deposited before 1st April 1986, and in subsection (4) above ''relevant period’’ means the period of twelve months beginning with 1st April 1986 and each successive period of twelve months beginning with 1st April.

(6)In subsection (4) above “relevant functions” means such functions of the Secretary of State in relation to insurance companies and the members of Lloyd’s as may be prescribed.

(7)Sums received by the Secretary of State under this section shall be paid into the Consolidated Fund.

InterpretationU.K.

95 Insurance business.U.K.

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.

96 General interpretation.U.K.

(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;

• [F4“the Companies Act” means the Companies Act 1985]

• “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 calender year;

• “former Companies Acts” means the M7Companies Act 1929 or the M8Companies 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 M9Companies (Consolidation) Act 1908; [F5and the Companies Acts 1948 to 1983][F6and the Companies Acts (Northern Ireland) 1960 to 1983]

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

• “holding company” shall be construed in accordance with section [F7736] of the [F8Companies Act] or [Article 4] of the [F9Companies (Northern Ireland) Order 1986];

• “industrial assurance business” has the meaning given in section 1(2) of the M10Industrial Assurance Act 1923 or Articles 2(2) and 3(1) of the M11Industrial 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 [F10122 and 123 or section 221 of the Insolvency Act 1986] or, as the case may be, [F11Articles 102 and 103 or Article 185 of the Insolvency (Northern Ireland) Order 1989] , 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 M12Conveyancing and Feudal Reform (Scotland) Act 1970;

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

• “policy”—

(a)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;

(b)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

(c)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—

(a)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

(b)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 M13Industrial and Provident Societies Act 1965 or the M14Industrial and Provident Societies Act (Northern Ireland) 1969;

• “registrar of companies” has the [F12the same meaning as in] the [F8Companies Act] and “registrar of companies in Northern Ireland” means the registrar of companies within the meaning of [F13Article 2 of the Companies (Northern Ireland) Order 1986];

• “subsidiary”, except in section 57, shall be construed in accordance with section [F14736] of the [F8Companies Act] or [F15Article 4] of the [F9Companies (Northern Ireland) Order 1986]:

• “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 M15Insurance Companies Act 1958 or section 14(1) of the M16Insurance 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.

[F1696A Interpretation of expressions derived from general insurance Directives.U.K.

(1)In this Act—

(a)“the first general insurance Directive” means Council Directive 73/239/EEC of 24 July 1973 on the coordination of laws, regulations and administrative provisions relating to the taking-up and pursuit of the business of direct insurance other than life assurance;

(b)“the second general insurance Directive” means Council Directive 88/357/EEC of 22 June 1988 on the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and laying down provisions to facilitate the effective exercise of freedom to provide services and amending Directive 73/239/EEC;

and “the general insurance Directives” means those Directives as amended and such other Directives as make provision with respect to the business of direct insurance other than life assurance.

[F17(1A)The Directives amending the general insurance Directives referred to in subsection (1) above include Council Directive 90/618/EEC amending, particularly as regards motor vehicle liability insurance, Directive 73/239/EEC and Directive 88/357/EEC.

(1B)In this Act “the first long term insurance Directive" means Council Directive 79/267/EEC of 5 March 1979 on the coordination of laws, regulations and administrative provisions relating to the taking up and pursuit of direct life assurance.]

(2)In this Act, in relation to an insurance company carrying on general business (other than reinsurance), ''establishment’’ means the head office or a branch or agency of the company; and references to a company being established in a particular member State mean that the company has its head office or a branch or agency there.

Any permanent presence of such a company in a member State shall be regarded as a branch or agency, even if that presence consists merely of an office managed by the company’s own staff or by a person who is independent but has permanent authority to act for the company in the same way as an agency.

(3)References in this Act to the member State where the risk is situated are—

(a)where the insurance relates to buildings or to buildings and their contents (in so far as the contents are covered by the same policy), to the member State in which the property is situated;

(b)where the insurance relates to vehicles of any type, to the member State of registration;

(c)in the case of policies of a duration of four months or less covering travel or holiday risks (whatever the class concerned), to the member State where the policy holder took out the policy;

(d)in a case not covered by paragraphs (a) to (c)—

(i)where the policy holder is an individual, to the member State where he has his habitual residence;

(ii)otherwise, to the member State where the establishment of the policy holder to which the policy relates is situated.

(4)In this Act the “ECU” means the unit of account of that name defined in Council Regulation (EEC) No. 3180/78 as amended.

The exchange rates as between the ECU and the currencies of the member States to be applied for each year beginning on 31st December shall be the rates applicable on the last day of the preceding October for which rates for the currencies of all the member States were published in the Official Journal of the Communities.]

[F1896B Meaning of “large risks”.U.K.

(1)In this Act “large risks” means—

(a)risks falling within classes 4, 5, 6, 7, 11 and 12 of Part I of Schedule 2;

(b)risks falling within classes 14 and 15 of that Part which relate to a business carried on by the policy holder;

(c)risks falling within [F19classes 3, 8, 9, 10, 13 and 16] of that Part where the policy holder carries on a business in respect of which the condition specified in subsection (2) below is met.

(2)The condition referred to in subsection (1)(c) is that at least two of the three following criteria were exceeded in the most recent financial year for which the information is available:

• First stage: until 31st December 1992—

• balance sheet total: 12.4 million ECU

• net turnover: 24 million ECU

• number of employees: 500;

• Second stage: from 1st January 1993—

• balance sheet total: 6.2 million ECU

• net turnover: 12.8 million ECU

• number of employees: 250.

(3)For the purposes of subsection (2) as it applies to a company within the meaning of section 735(1) of the Companies Act 1985 or Article 3 of the Companies (Northern Ireland) Order 1986—

(a)“balance sheet total” has the meaning given by section 247(5) of that Act or Article 255(5) of that Order,

(b)“net turnover” has the meaning given to “turnover” by section 262(1) of that Act or Article 270(1) of that Order, and

(c)“number of employees” has the meaning given by section 247(6) of that Act or Article 255(6) of that Order;

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

(4)Where the policy holder is a member of a group for which consolidated accounts (within the meaning of Directive 83/349/EEC are drawn up, the question whether the condition in subsection (2) is met shall be determined by reference to those accounts.

(5)For the purposes of subsection (1)(c) as it applies where the policy holder is a professional association, joint venture or temporary grouping, the question whether the condition in subsection (2) is met shall be determined by reference to the aggregate of the relevant figures for all the members of the professional association, joint venture or temporary grouping.

(6)In this section “business” includes a trade or profession and, for the purposes of subsection (1)(c), any activity of a professional association, joint venture or temporary grouping.]

SupplementaryU.K.

97 Regulations and orders.U.K.

(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 [F25, except regulations under section 21A(3),] shall be subject to annulment in pursuance of a resolution of either House of Parliament.

98 Annual report by Secretary of State.U.K.

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

99 Savings, transitionals, consequential amendments and repeals.U.K.

(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 that Act.

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

100 Short title, commencement and extent.U.K.

(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 F26 extends to Northern Ireland.