Regulation 11 Suspension of authorisation in urgent casesI1

After section 12 of the 1982 Act insert—

“Suspension of authorisation in urgent cases.

12A

(1)

Where, in the case of a UK or non-EC company, it appears to the Secretary of State—

(a)

that one of the grounds in section 11(2) above exists in relation to the company: and

(b)

that the authorisation should be suspended as a matter of urgency,

the Secretary of State may direct that the company shall forthwith cease to be authorised to effect contracts of insurance, or contracts of any description specified in the direction.

(2)

A direction under this section—

(a)

shall not prevent a company from effecting a contract of insurance in pursuance of a term of a subsisting contract of insurance; and

(b)

unless confirmed by the Secretary of State under subsection (6) below, shall cease to have effect at the end of the relevant period.

(3)

Where the Secretary of State gives a direction under this section, he shall forthwith serve on the company a written notice stating—

(a)

the ground on which the direction is given; and

(b)

that the company may, within the period of one month from the date of service of the notice, make written representations to the Secretary of State and, if the company so requests, oral representations to an officer of the Department of Trade and Industry appointed for the purpose by the Secretary of State.

(4)

Where the Secretary of State gives a direction under this section on the ground set out in section 11(2)(ab) above, the Secretary of State shall forthwith serve on any person whose fitness is in question a written notice stating—

(a)

the ground for giving the direction; and

(b)

that the person on whom the notice is served may, within the period of one month from the date of service of the notice, make written representations to the Secretary of State and, if that person so requests, oral representations to an officer of the Department of Trade and Industry appointed for the purpose by the Secretary of State.

(5)

The Secretary of State shall consider any representations made in response to a notice under subsection (3) or (4) above before confirming a direction under this section.

(6)

At any time before the end of the relevant period, the Secretary of State may confirm a direction under this section by a written notice served on the company.

(7)

Where a direction under this section is so confirmed, it may not be revoked or varied; but if the Secretary of State subsequently issues to the company under section 3 above an authorisation to carry on insurance business of a class to which the direction relates, the direction shall cease to have effect in relation to such business.

(8)

In this section ‘the relevant period’, in relation to a direction under this section, means the period of two months beginning with the date on which the direction is given.”