{
  "url": "https://openlegislation.uk/insurance-companies-act-1982-repealed/section-7",
  "json_url": "https://openlegislation.uk/insurance-companies-act-1982-repealed/section-7.json",
  "legislation": "ukpga/1982/50",
  "legislation_title": "Insurance Companies Act 1982 (repealed)",
  "legislation_url": "https://openlegislation.uk/insurance-companies-act-1982-repealed",
  "path": "section/7",
  "kind": "section",
  "number": "7",
  "heading": "United Kingdom applicants.",
  "text": "(1) The Treasury shall not issue an authorisation under section 3 above to an applicant whose head office is in the United Kingdom unless the applicant is—\n(a) a company as defined in section 735 of the Companies Act or Article 3 of the Companies (Northern Ireland) Order 1986, or\n(b) a registered society, or\n(c) a body corporate established by royal charter or Act of Parliament and already authorised under section 3 or 4 above to carry on insurance business (though not to the extent proposed in the application).\n(2) The Treasury shall not issue an authorisation under section 3 above to an applicant whose head office is in the United Kingdom if it has an issued share capital any part of which was issued after the commencement of this section but is not fully paid up.\n(3) The Treasury shall not issue an authorisation under section 3 above to an applicant\n(a) whose head office is in the United Kingdom; and\n(b) which is not an applicant to which section 5(1A) above applies,\nif it appears to the Treasury that any director, controller, manager or main agent of the applicant is not a fit and proper person to hold the position held by him.\n(4) In this section\n“controller”, in relation to the applicant, means—\n(a) a managing director of the applicant or of a body corporate of which the applicant is a subsidiary;\n(b) a chief executive of the applicant or of a body corporate, being an insurance company, of which the applicant is a subsidiary;\n(c) a person—\n(i) in accordance with whose directions or instructions the directors of the applicant or of a body corporate of which it is a subsidiary are accustomed to act, or\n(ii) who either alone or with any associate or associates is entitled to exercise, or control the exercise of, one-third15 per cent or more of the voting power at any general meeting of the applicant or of a body corporate of which it is a subsidiary.\n(5) In this section\n“manager”, in relation to the applicant, means an employee of the applicant (other than a chief executive) who, under the immediate authority of a director or chief executive of the applicant—\n(a) exercises managerial functions, or\n(b) is responsible for maintaining accounts or other records of the applicant,\nnot being a person whose functions relate exclusively to business conducted from a place of business outside the United Kingdom.\n(6) In this section\n“main agent”, in relation to the applicant, means, subject to such exceptions as may be prescribed, a person appointed by the applicant to be its agent in respect of general business in the United Kingdom, with authority to enter into contracts on behalf of the applicant in any financial year—\n(a) without limit on the aggregate amount of premiums; or\n(b) with a limit in excess of 10 per cent. of the premium limit as determined in accordance with Schedule 3 to this Act.\n(7) In this section\n“chief executive”, in relation to the applicant or a body corporate of which it is a subsidiary, means an employee of the applicant or that body corporate, who, either alone or jointly with others, is responsible under the immediate authority of the directors for the conduct of the whole of the insurance business of the applicant or that body corporate.\n(8) In this section\n“associate”, in relation to any person, means—\n(a) the wife or husband or minor son or daughter of that person;\n(b) any company of which that person is a director;\n(c) any person who is an employee or partner of that person;\n(d) if that person is a company—\n(i) any director of that company;\n(ii) any subsidiary of that company;\n(iii) any director or employee of any such subsidiary;\nand for the purposes of this subsection\n“son” includes step-son,\n“daughter” includes step-daughter and\n“minor”, in relation to Scotland, includes pupil.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Word in s. 7 substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 4 (with art. 7)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Figure substituted by Companies Consolidation (Consequential Provisions) Act 1985 (c. 9, SIF 27), s. 30, Sch. 2"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words substituted by Companies Consolidation (Consequential Provisions) Act 1985 (c. 9, SIF 27), s. 30, Sch. 2"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words substituted by S.I. 1986/1035 (N.I. 9), art. 23, Sch. 1 Pt. II"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words substituted by S.I. 1986/1035 (N.I. 9), art. 23, Sch. 1 Pt. II"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "S. 7(3)(a)(b) substituted for words “whose head office is in the United Kingdom”(1.7.1994) by S.I. 1994/1696, reg. 7(1)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "S. 7(4)-(8) ceased to have effect (1.7.1994) by virtue of S.I. 1994/1696, reg. 7(2)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "“15 per cent\" substituted (12.1.1987 for the purpose mentioned in 1986/2246, Sch. 2 but otherwise (prosp.)) for “one-third\" by Financial Services Act 1986 (c. 60, SIF 69), s. 134 (which s. 134 ceased to have effect (1.7.1994) by virtue of S.I. 1994/1696, reg. 68, Sch. 8 para. 12"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Definition of “minor\" in s. 7(8) repealed (S.) by Age of Legal Capacity (Scotland) Act 1991 (c. 50, SIF 49:8), s. 10(2), Sch. 2 (with savings s. 1(3))"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "Definition of \"chief executive\" in s. 7 applied (15.5.1991) by Standard Life Assurance Company Act 1991 (c. iii), s. 14(1), Sch. reg. 1 (1); appointed day (15.5.1991) as published in the London Gazette on 19.4.1991S. 7: power to contract out functions conferred (18.11.1998) by S.I. 1998/2842, arts. 2, 3, Sch. Pt. I para. 5"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1982/50/section/7",
    "retrieved_at": "2026-10-29T10:10:47.436123+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}