Paragraph 2 Meaning of “particular restrictions for personal lines insurance bodies”
In this Schedule the “particular restrictions for personal lines insurance bodies” means the provisions set out in sub-paragraph (2) below.
A body corporate is not a personal lines insurance body for a society where—
it is neither authorised nor otherwise entitled to carry on in any member State or any country or territory mentioned in paragraph l(c) above, nor (where applicable) a candidate for authorisation to carry on in any such member State, country or territory, insurance business of any class specified in Part I of Schedule 2 to the Insurance Companies Act 1982; or
it carries on any activities otherwise than in connection with or for the purposes of its insurance business; or
subject to sub-paragraphs (3) and (4) below, it effects, or carries out, a contract of insurance with a person that is not an individual; or
it comes within the description of a mortgage indemnity insurance body as specified in the Schedule to the Building Societies (Designation of Qualifying Bodies) (No. 2) Order 1993f1.
A body corporate is not prevented from being a personal lines insurance body for a society where it effects, or carries out, a contract of insurance—
with a person (not being an individual) that holds the policy jointly with an individual who occupies land in which the person holds an interest, which insures the person or the individual against the risk of loss of or damage to the buildings so occupied or the chattels of such person or individual which are usually kept on or in such land and buildings and any other risks which are commonly insured against together with such risks;
with a housing association or housing trust, which insures the housing association or housing trust against the risk of loss of or damage to buildings and any other risks which are commonly insured against together with such risks; or
with the society or any subsidiary undertaking or associated body of the society.
A body corporate is not prevented from being a personal lines insurance body for a society where it effects, or carries out, a contract of reinsurance with another body corporate which insures against risks which—
are of a kind which, if insured against by a body corporate, would not prevent that body corporate from being a personal lines insurance body for a society; and
arise under a contract of insurance effected and carried out by that other body corporate where—
that other body corporate is a subsidiary undertaking or associated body of the society, or
the contract has been arranged by the society or any subsidiary undertaking or associated body of the society.
For the purposes of sub-paragraph (2) above—
a body corporate is “a candidate for authorisation” if it has been formed with a view to being authorised in respect of the carrying on of insurance business and is applying or is taking steps to apply for authorisation in that respect; and
any activities that are treated by section 16(2) of the Insurance Companies Act 1982 as carried on in connection with insurance business shall be treated as carried on in connection with insurance business.