Friendly Societies Act 1992

117Insurance business etc

(1)For the purposes of this Act—

• “annual contribution income” means, in relation to a friendly society’s long term business, the income of the society in a financial year without any deduction for reinsurance cessions;

• “insurance business” means long term business and general business but does not include the operations of a society whose benefits vary according to the resources available and which require each of its members to contribute on a flat-rate basis;

• “long term business” means insurance business of any of the classes specified in head A of Schedule 2 to this Act; and

• “general business” means insurance business of any of the classes specified in head B of that Schedule.

(2)For the purposes of any provision of Parts IV, V, VI and VIII of this Act, unless the context otherwise requires—

(a)references to insurance business include references to reinsurance business; and

(b)reinsurance business consisting of the effecting and carrying out of a contract of reinsurance of risks of any class shall be taken to constitute the carrying on of insurance business of that class;

and “reinsurance business” means the effecting and carrying out of contracts of reinsurance.

(3)For the purposes of this Act the effecting and carrying out of a contract whose principal object is within one class of insurance business, but which contains related and subsidiary provisions within another class or classes, shall be taken to constitute the carrying on of insurance business of the first-mentioned class, and no other, if subsection (4) or (5) below applies to the contract.

(4)This subsection applies to a contract whose principal object is within any class of long term business, but which contains subsidiary provisions within general business class 1 or 2, if the society concerned is authorised under section 32 above to carry on long term business class I.

(5)This subsection applies to a contract whose principal object is within one of the classes of general business but which contains subsidiary provisions within another of those classes.

(6)In relation to a contract of insurance with a friendly society references in this Act to the member State where the risk is situated are references to the member State where the person who has entered into the contract has his habitual place of residence.