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The Insurance Companies Regulations 1994

S.I. 1994/1516 · Made 7 June 1994

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

INSURANCE

Made 7th June 1994

Laid before Parliament 8th June 1994

Coming into force 1st July 1994

The Secretary of State, being a Minister designatedf1 for the purposes of section 2(2) of the European Communities Act 1972f2 in relation to the authorisation of the carrying on of insurance business and the regulation of such business and its conduct, in exercise of the powers conferred by that section and by sections 2(5), 5(1)(a), 7(6), 9(1)(b) and (c) and (7), 15(6), 32(1), (2) and (3), 33(1), 35(1), 60(1), 61(1), 62(1), 72(1) and (2), 74(1) and (2), 75(2) and (5), 78(1), (2), (5) and (6), 84(1), 86, 90, 96(1) and 97 of the Insurance Companies Act 1982f3, hereby makes the following Regulations:—

Annotations to the whole text

Footnotes

f1

S.I. 1975/427, S.I. 1976/2141.

f2

1972 c. 68.

f3

1982 c. 50.

Contents

  1. Part I: PRELIMINARY
  2. 1Citation and commencement
  3. 2Interpretation: general
  4. Part II: AUTHORISATION ETC.
  5. 3Benefits in kind
  6. 4Authorisation: submission of information
  7. 5Main agents: exceptions
  8. 6Authorisation: UK assets of applicants from non-EEA States etc.
  9. Part III: DEPOSITS
  10. 7Interpretation: Part III
  11. 8Making and amount of deposit
  12. 9Direction etc. by the Secretary of State
  13. 10Permitted securities
  14. 11Investment
  15. 12Disposal of surplus
  16. 13Cessation of business etc.
  17. 14Effect of direction etc.
  18. 15Application of rules under s.38(7) of the Administration of Justice Act 1982
  19. Part IV: MARGINS OF SOLVENCY
  20. 16Interpretation: Part IV
  21. 17Margins of solvency: determination
  22. 18Long term classes I, II and IX
  23. 19Long term classes III, VII and VIII
  24. 20Long term classes IV and VI
  25. 21Long term class V
  26. 22Guarantee fund and minimum guarantee fund
  27. 23Valuation
  28. 24Implicit items: future profits
  29. 25Implicit items: zillmerising
  30. 26Implicit items: hidden reserves
  31. Part V: CURRENCY MATCHING, LOCALISATION
  32. 27Matching: general requirement
  33. 28Matching: property linked benefits
  34. 29Matching: currency of general business liabilities
  35. 30Matching: exception for certain liabilities
  36. 31Localisation
  37. 32Exclusions from regulations 27 to 31
  38. 33Margin of solvency of non-EC company whose head office is not in an EFTA State etc.: location of assets
  39. Part VI: CHANGE OF CONTROL
  40. 34Particulars of changes of director, controller or manager, etc.
  41. Part VII: CONDUCT OF BUSINESS
  42. 35Contents of advertisements: overseas insurers
  43. 36Contents of advertisements: statement of capital
  44. 37Interpretation of and provisions supplemental to regulations 35 and 36
  45. 38Intermediaries: connected persons
  46. 39Invitation by intermediary
  47. 40Cases excepted from regulation 39
  48. 41Notice of long-term contract
  49. 42Exemptions from regulation 41
  50. 43Linked contracts
  51. Part VIII: VALUATION OF ASSETS
  52. 44Interpretation: Part VIII
  53. 45Application: Part VIII
  54. 46Shares in and debts due or to become due from dependants
  55. 47Valuation of assets and liabilities of dependants for the purposes of regulation 46
  56. 48Debts and other rights
  57. 49Land
  58. 50Equipment
  59. 51Unlisted securities
  60. 52Unit trusts
  61. 53Listed investments
  62. 54Reversionary interests etc.
  63. 55Derivative contracts
  64. 56Other assets
  65. 57Assets to be taken into account only to a specified extent
  66. Part IX: DETERMINATION OF LIABILITIES
  67. 58Interpretation: Part IX
  68. 59Application: Part IX
  69. 60Long term and general business
  70. 61Provision for adverse changes
  71. 62General business liabilities
  72. 63Relevant co-insurance operations: general business
  73. 64Long term liabilities
  74. 65Method of calculation
  75. 66Avoidance of future valuation strain
  76. 67Valuation of future premiums
  77. 68Acquisition expenses
  78. 69Rates of interest
  79. 70Rates of mortality and disability
  80. 71Expenses
  81. 72Options
  82. 73Contracts not to be treated as assets
  83. 74No credit for profits from voluntary discontinuance
  84. 75Nature and term of assets
  85. Part X: CREDIT INSURANCE BUSINESS
  86. 76Credit insurance business: equalisation reserve
  87. 77Exemption from regulation 76
  88. 78Default in complying with regulation 76(1)
  89. Part XI: STATISTICAL INFORMATION
  90. 79Interpretation : Part XI
  91. 80Insurance statistics: EFTA States and EFTA companies
  92. 81Insurance statistics: other member States
  93. 82Default in complying with regulation 80 or 81
  94. 83Application of regulations 80 to 82 to Lloyd's
  95. Part XII: MISCELLANEOUS PROVISIONS
  96. 84Transitory provision
  97. 85Consequential amendments
  98. 86Revocations
  99. Signature
  100. Schedule 1INFORMATION TO BE SUBMITTED: LONG TERM BUSINESS
  101. Part I: COMPANIES WHOSE HEAD OFFICE IS IN THE UNITED KINGDOM
  102. 1The company
  103. 2The company
  104. 3The company
  105. 4The company
  106. 5The company
  107. 6The company
  108. 7The company
  109. 8The company
  110. 9Authorisations to be continued
  111. 10Scheme of operations
  112. 11Scheme of operations
  113. 12Scheme of operations
  114. 13Scheme of operations
  115. 14Scheme of operations
  116. 15Scheme of operations
  117. 16Scheme of operations
  118. 17Projections
  119. 18Projections
  120. 19Other information, agreements, treaties and certificates required
  121. 20Other information, agreements, treaties and certificates required
  122. 21Other information, agreements, treaties and certificates required
  123. 22Other information, agreements, treaties and certificates required
  124. 23Other information, agreements, treaties and certificates required
  125. Part II: COMPANIES OTHER THAN EC COMPANIES WHOSE HEAD OFFICE IS IN AN EEA STATE OTHER THAN THE UNITED KINGDOM (DIRECT BUSINESS OR BOTH DIRECT BUSINESS AND REINSURANCE)
  126. 1The company
  127. 2The company
  128. 3The company
  129. 4The company
  130. 5The company
  131. 6The company
  132. 7The company
  133. 8Statement from head office supervisor
  134. 9Authorisations to be continued
  135. 10Scheme of operations for the United Kingdom
  136. 11Scheme of operations for the United Kingdom
  137. 12Scheme of operations for the United Kingdom
  138. 13Scheme of operations for the United Kingdom
  139. 14Scheme of operations for the United Kingdom
  140. 15Scheme of operations for the United Kingdom
  141. 16Scheme of operations for the United Kingdom
  142. 17Projections for the United Kingdom
  143. 18Projections for the United Kingdom
  144. 19Accounts, agreements, treaties and certificates required
  145. 20Accounts, agreements, treaties and certificates required
  146. 21Accounts, agreements, treaties and certificates required
  147. 22Accounts, agreements, treaties and certificates required
  148. 23Accounts, agreements, treaties and certificates required
  149. 24Accounts, agreements, treaties and certificates required
  150. Part III: COMPANIES WHOSE HEAD OFFICE IS NOT IN AN EEA STATE (DIRECT BUSINESS OR BOTH DIRECT BUSINESS AND REINSURANCE)
  151. 1The company
  152. 2The company
  153. 3The company
  154. 4The company
  155. 5The company
  156. 6The company
  157. 7The company
  158. 8The company
  159. 9Authorisations to be continued
  160. 10Scheme of operations for the United Kingdom
  161. 11Scheme of operations for the United Kingdom
  162. 12Scheme of operations for the United Kingdom
  163. 13Scheme of operations for the United Kingdom
  164. 14Scheme of operations for the United Kingdom
  165. 15Scheme of operations for the United Kingdom
  166. 16Scheme of operations for the United Kingdom
  167. 17Projections for the United Kingdom
  168. 18Projections for the United Kingdom
  169. 19Other information, accounts, agreements, treaties and certificates required
  170. 20Other information, accounts, agreements, treaties and certificates required
  171. 21Other information, accounts, agreements, treaties and certificates required
  172. 22Other information, accounts, agreements, treaties and certificates required
  173. 23Other information, accounts, agreements, treaties and certificates required
  174. 24Other information, accounts, agreements, treaties and certificates required
  175. 25Other information, accounts, agreements, treaties and certificates required
  176. 26Other information, accounts, agreements, treaties and certificates required
  177. 27Other information, accounts, agreements, treaties and certificates required
  178. 28Other information, accounts, agreements, treaties and certificates required
  179. 29Other information, accounts, agreements, treaties and certificates required
  180. Part IV: COMPANIES WHOSE HEAD OFFICE IS NOT IN THE UNITED KINGDOM (REINSURANCE ONLY)
  181. 1The company
  182. 2The company
  183. 3The company
  184. 4The company
  185. 5The company
  186. 6The company
  187. 7The company
  188. 8The company
  189. 9The company
  190. 10Authorisations to be continued
  191. 11Scheme of operations for the United Kingdom
  192. 12Scheme of operations for the United Kingdom
  193. 13Scheme of operations for the United Kingdom
  194. 14Scheme of operations for the United Kingdom
  195. 15Scheme of operations for the United Kingdom
  196. 16Scheme of operations for the United Kingdom
  197. 17Other information, agreements, treaties and certificates required
  198. 18Other information, agreements, treaties and certificates required
  199. 19Other information, agreements, treaties and certificates required
  200. 20Other information, agreements, treaties and certificates required
  201. 21Other information, agreements, treaties and certificates required
  202. 22Other information, agreements, treaties and certificates required
  203. 23Other information, agreements, treaties and certificates required
  204. 24Other information, agreements, treaties and certificates required
  205. 25Other information, agreements, treaties and certificates required
  206. 26Other information, agreements, treaties and certificates required
  207. Schedule 2INFORMATION TO BE SUBMITTED: GENERAL BUSINESS
  208. Part I: COMPANIES WHOSE HEAD OFFICE IS IN THE UNITED KINGDOM
  209. 1The company
  210. 2The company
  211. 3The company
  212. 4The company
  213. 5The company
  214. 6The company
  215. 7The company
  216. 8The company
  217. 9The company
  218. 10Authorisations to be continued
  219. 11Scheme of operations
  220. 12Scheme of operations
  221. 13Scheme of operations
  222. 14Scheme of operations
  223. 15Scheme of operations
  224. 16Projections
  225. 17Other information, agreements and treaties required
  226. 18Other information, agreements and treaties required
  227. 19Other information, agreements and treaties required
  228. 20Other information, agreements and treaties required
  229. 21Other information, agreements and treaties required
  230. Part II: SWISS GENERAL INSURANCE COMPANIES AND COMPANIES OTHER THAN EC COMPANIES WHOSE HEAD OFFICE IS IN AN EEA STATE OTHER THAN THE UNITED KINGDOM (DIRECT BUSINESS OR BOTH DIRECT BUSINESS AND REINSURANCE)
  231. 1The company
  232. 2The company
  233. 3The company
  234. 4The company
  235. 5The company
  236. 6The company
  237. 7The company
  238. 8The company
  239. 9Statement from head office supervisor
  240. 10Authorisations to be continued
  241. 11Scheme of operations for the United Kingdom
  242. 12Scheme of operations for the United Kingdom
  243. 13Scheme of operations for the United Kingdom
  244. 14Scheme of operations for the United Kingdom
  245. 15Scheme of operations for the United Kingdom
  246. 16Scheme of operations for the United Kingdom
  247. 17Scheme of operations for the United Kingdom
  248. 18Projections for the United Kingdom
  249. 19Other information, accounts, agreements and treaties required
  250. 20Other information, accounts, agreements and treaties required
  251. 21Other information, accounts, agreements and treaties required
  252. 22Other information, accounts, agreements and treaties required
  253. 23Other information, accounts, agreements and treaties required
  254. 24Other information, accounts, agreements and treaties required
  255. Part III: COMPANIES WHOSE HEAD OFFICE IS NOT IN AN EEA STATE (DIRECT BUSINESS OR BOTH DIRECT BUSINESS AND REINSURANCE)
  256. 1The company
  257. 2The company
  258. 3The company
  259. 4The company
  260. 5The company
  261. 6The company
  262. 7The company
  263. 8The company
  264. 9The company
  265. 10Authorisations to be continued
  266. 11Scheme of operations for the United Kingdom
  267. 12Scheme of operations for the United Kingdom
  268. 13Scheme of operations for the United Kingdom
  269. 14Scheme of operations for the United Kingdom
  270. 15Scheme of operations for the United Kingdom
  271. 16Projections for the United Kingdom
  272. 17Other information, accounts, agreements and treaties required
  273. 18Other information, accounts, agreements and treaties required
  274. 19Other information, accounts, agreements and treaties required
  275. 20Other information, accounts, agreements and treaties required
  276. 21Other information, accounts, agreements and treaties required
  277. 22Other information, accounts, agreements and treaties required
  278. 23Other information, accounts, agreements and treaties required
  279. 24Other information, accounts, agreements and treaties required
  280. 25Other information, accounts, agreements and treaties required
  281. 26Other information, accounts, agreements and treaties required
  282. 27Other information, accounts, agreements and treaties required
  283. 28Other information, accounts, agreements and treaties required
  284. Part IV: COMPANIES WHOSE HEAD OFFICE IS NOT IN THE UNITED KINGDOM (REINSURANCE ONLY)
  285. 1The company
  286. 2The company
  287. 3The company
  288. 4The company
  289. 5The company
  290. 6The company
  291. 7The company
  292. 8The company
  293. 9The company
  294. 10The company
  295. 11Authorisations to be continued
  296. 12Scheme of operations for the United Kingdom
  297. 13Scheme of operations for the United Kingdom
  298. 14Scheme of operations for the United Kingdom
  299. 15Scheme of operations for the United Kingdom
  300. 16Scheme of operations for the United Kingdom
  301. 17Other information, agreements and treaties required
  302. 18Other information, agreements and treaties required
  303. 19Other information, agreements and treaties required
  304. 20Other information, agreements and treaties required
  305. 21Other information, agreements and treaties required
  306. 22Other information, agreements and treaties required
  307. 23Other information, agreements and treaties required
  308. 24Other information, agreements and treaties required
  309. Schedule 3: GENERAL BUSINESS SOLVENCY MARGIN: FIRST METHOD OF CALCULATION (PREMIUM BASIS)
  310. 1Paragraph 1
  311. 2Paragraph 2
  312. 3Paragraph 3
  313. 4Paragraph 4
  314. 5Paragraph 5
  315. 6Paragraph 6
  316. 7Paragraph 7
  317. 8Paragraph 8
  318. 9Paragraph 9
  319. 10Paragraph 10
  320. 11Paragraph 11
  321. 12Paragraph 12
  322. 13Paragraph 13
  323. 14Paragraph 14
  324. 15Paragraph 15
  325. Schedule 4: GENERAL BUSINESS SOLVENCY MARGIN: SECOND METHOD OF CALCULATION (CLAIMS BASIS)
  326. 1Paragraph 1
  327. 2Paragraph 2
  328. 3Paragraph 3
  329. 4Paragraph 4
  330. 5Paragraph 5
  331. 6Paragraph 6
  332. 7Paragraph 7
  333. 8Paragraph 8
  334. 9Paragraph 9
  335. 10Paragraph 10
  336. Schedule 5: MINIMUM GUARANTEE FUND
  337. 1Long term business
  338. 2General business
  339. 3General business
  340. 4General business
  341. 5General business
  342. 6General business
  343. 7Long term and general business
  344. Schedule 6: CHANGE OF CONTROL ETC.
  345. IINTERPRETATION
  346. Part II: SPECIFIED PARTICULARS AND NOTICES
  347. 1Paragraph 1
  348. 2Paragraph 2
  349. 3Paragraph 3
  350. 4Paragraph 4
  351. 5Paragraph 5
  352. 6Paragraph 6
  353. 7Paragraph 7
  354. 8Paragraph 8
  355. 9Paragraph 9
  356. 10Paragraph 10
  357. Part III
  358. APPOINTMENT OF INDIVIDUALPARTICULARS TO BE PROVIDED
  359. A1A: Particulars of authorised insurance company
  360. A2A: Particulars of authorised insurance company
  361. A3A: Particulars of authorised insurance company
  362. B1B: Partnerships
  363. C1C: Personal details of individual
  364. C2C: Personal details of individual
  365. C3C: Personal details of individual
  366. C4C: Personal details of individual
  367. C5C: Personal details of individual
  368. C6C: Personal details of individual
  369. C7C: Personal details of individual
  370. C8C: Personal details of individual
  371. D1D: Experience
  372. D2D: Experience
  373. E1E: Other business interests
  374. E2E: Other business interests
  375. E3E: Other business interests
  376. F1Notes:
  377. F2Notes:
  378. F3Notes:
  379. F4Notes:
  380. F5Notes:
  381. F6Notes:
  382. F7Notes:
  383. F8Notes:
  384. F9Notes:
  385. F10Notes:
  386. F11Notes:
  387. F12Notes:
  388. F13Notes:
  389. G1G: Other details
  390. NOTICES
  391. Part IV: APPOINTMENT OF BODY CORPORATE
  392. PARTICULARS TO BE PROVIDED
  393. A1A: Particulars of authorised insurance company
  394. A2A: Particulars of authorised insurance company
  395. A3A: Particulars of authorised insurance company
  396. B1B: Partnerships
  397. C1C: Corporate particulars of the position holder
  398. C2C: Corporate particulars of the position holder
  399. C3C: Corporate particulars of the position holder
  400. C4C: Corporate particulars of the position holder
  401. C5C: Corporate particulars of the position holder
  402. C6C: Corporate particulars of the position holder
  403. C7C: Corporate particulars of the position holder
  404. C8C: Corporate particulars of the position holder
  405. C9C: Corporate particulars of the position holder
  406. C10C: Corporate particulars of the position holder
  407. C11C: Corporate particulars of the position holder
  408. D1D: Management details of the position holder
  409. D2D: Management details of the position holder
  410. D3D: Management details of the position holder
  411. E1E: Professional support of position holder
  412. E2E: Professional support of position holder
  413. F1F: Financial aspects of the position holder
  414. F2F: Financial aspects of the position holder
  415. F3F: Financial aspects of the position holder
  416. G1Note:
  417. G2Note:
  418. G3Note:
  419. G4Note:
  420. G5Note:
  421. G6Note:
  422. G7Note:
  423. G8Note:
  424. G9Note:
  425. G10Note:
  426. H1Notes:
  427. H2Notes:
  428. H3Notes:
  429. H4Notes:
  430. H5Notes:
  431. H6Notes:
  432. I1I. Other details
  433. Notices
  434. Part V: PERSON BECOMING CONTROLLER OR SHAREHOLDER CONTROLLER OF ANY DESCRIPTION
  435. PARTICULARS TO BE PROVIDED AND NOTICE
  436. 1Paragraph 1
  437. 2Paragraph 2
  438. 3Paragraph 3
  439. 4Paragraph 4
  440. 5Paragraph 5
  441. 6Paragraph 6
  442. Part VI: PERSON CEASING TO BE CONTROLLER OR SHAREHOLDER CONTROLLER OF ANY DESCRIPTION
  443. PARTICULARS TO BE PROVIDED AND NOTICE
  444. 1Paragraph 1
  445. 2Paragraph 2
  446. 3Paragraph 3
  447. 4Paragraph 4
  448. 5Paragraph 5
  449. Schedule 7STATUTORY NOTICE: NON-INVESTMENT CONTRACTS
  450. Schedule 8STATUTORY NOTICE: INVESTMENT CONTRACTS
  451. Schedule 9NOTICE OF CANCELLATION
  452. Schedule 10: PERMITTED LINKS
  453. Part I: DESCRIPTIONS OF PROPERTY BY REFERENCE TO WHICH BENEFITS MAY BE DETERMINED
  454. 1Paragraph 1
  455. 2Paragraph 2
  456. 3Paragraph 3
  457. 4Paragraph 4
  458. 5Paragraph 5
  459. 6Paragraph 6
  460. 7Paragraph 7
  461. 8Paragraph 8
  462. 9Paragraph 9
  463. 10Paragraph 10
  464. 11Paragraph 11
  465. Part II: INDICES BY REFERENCES TO WHICH BENEFITS MAY BE DETERMINED
  466. 12Paragraph 12
  467. Part III: INTERPRETATION
  468. 13Paragraph 13
  469. 14Paragraph 14
  470. 15Paragraph 15
  471. 16Paragraph 16
  472. Schedule 11: VALUE OF DEPENDANTS
  473. Part I: THE SUPPLEMENTARY AMOUNT
  474. 1Paragraph 1
  475. 2Paragraph 2
  476. Part II: FURTHER PROVISIONS AND MODIFICATIONS OF THE REGULATIONS APPLICABLE WITH RESPECT TO THE DETERMINATION OF THE VALUE OF DEPENDANTS
  477. 3Paragraph 3
  478. 4Paragraph 4
  479. 5Paragraph 5
  480. Schedule 12: ASSETS TO BE TAKEN INTO ACCOUNT ONLY TO A SPECIFIED EXTENT
  481. IPart I
  482. Part II
  483. 18Paragraph 18
  484. Schedule 13: RELEVANT CO-INSURANCE OPERATIONS
  485. 1Paragraph 1
  486. 2Paragraph 2
  487. 3Paragraph 3
  488. 4Paragraph 4
  489. Schedule 14: METHODS OF CALCULATING THE EQUALISATION RESERVE FOR CREDIT INSURANCE BUSINESS
  490. 1Method No. 1
  491. 2Method No. 1
  492. 1Method No. 2
  493. 2Method No. 2
  494. 3Method No. 2
  495. 1Method No. 3
  496. 2Method No. 3
  497. 1Method No. 4
  498. 2Method No. 4
  499. Schedule 15INSURANCE STATISTICS: EFTA STATES AND EFTA COMPANIES
  500. Schedule 16INSURANCE STATISTICS: OTHER MEMBER STATES
  501. Schedule 17REVOCATIONS
  502. Explanatory note