Regulation 5 Amendments to the 1981 Regulations

in regulation 2 after the definition of “cede” and “cession” there shall be inserted the following definition–

• ““credit insurance business” has the meaning given in the Insurance Companies (Credit Insurance) Regulations 1990;”

in paragraph 1(b) of Schedule 2 for the words “and frost (as included in general business class 9)” there shall be substituted the words “, frost (as included in general business class 9) and credit (as included in general business class 14)”;

in paragraph 6 of Schedule 3 for the words “subject to paragraphs 7, 8 and 9 below” there shall be substituted the words “subject to paragraphs 6A and B, 7, 8 and 9 below”;

after paragraph 6 of Schedule 3 there shall be inserted the following paragraphs–

“6A

In the case where the risks covered fall within class 14 of Part I of Schedule 2 to the 1982 Act and where the annual amount of premiums or contributions of the company due in respect of that class for each of the preceding three financial years exceeded 2,500,000 units of account or 4 per cent of the total amount of premiums or contributions receivable by the company, for the amount of units of account given in the table in paragraph 6 above there shall be substituted the amount of 1,400,000 units of account.”

“6B

Where a company carrying on credit insurance business is required to increase the amount of units of account pursuant to paragraph 6A above, the company shall have:–

• a period of three years in which to bring the fund up to 1,000,000 units of account;

• a period of five years to bring the fund up to 1,200,000 units of account;

• a period of seven years to bring the fund up to 1,400,000 units of account;

such periods to run from the date on which the criteria set out in paragraph 6A are fulfilled.”

in paragraph 8 of Schedule 3 for the words “6 and 7 above” there shall be substituted the words “6, 6A, 6B and 7 above”.