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Regulation 63 Relevant co-insurance operations: general business

Original text. Later amendments are not shown.

(1)

Where a relevant company determines the amount of a liability in order to make provision for outstanding claims arising under a relevant co-insurance operation, then, if the leading insurer has informed the company of the amount of the provision made by the leading insurer for such claims, the amount determined by the company—

(a)

shall be at least as great as the amount of the provision made by the leading insurer, or

(b)

in a case where it is not the practice in the United Kingdom to make such provision separately, shall be sufficient, when all liabilities are taken into account, to include provision at least as great as that made by the leading insurer for such claims,

due regard being had in either case to the proportion of the risk covered by the company and by the leading insurer respectively.

(2)

In paragraph (1) above—

  • “leading insurer”, in relation to a relevant co-insurance operation, means an insurer who—

    1. (a)

      is recognised as the leading insurer by the other insurers involved in the operation, and

    2. (b)

      determines the terms and conditions of insurance for the operation;

  • “relevant co-insurance operation” has the meaning given by Schedule 13;

  • “relevant company”, in relation to a relevant co-insurance operation, means an insurance company which is concerned in the operation but is not the leading insurer.