Regulation 49 Applicable law

In paragraph 1 of Schedule 3A to the 1982 Act^f1 (law applicable to certain contracts of insurance), for sub-paragraph (6) substitute—

“(6)

Where the risk—

(a)

is situated in an EFTA state and falls within class 4, 5, 6, 7, 11 or 12 of Part I of Schedule 2 to this Act; or

(b)

is situated in a member State and is a large risk,

the parties to the contract may choose any law.

(7)

Where the risk is situated in a member State which has implemented the transitional provisions in Article 27 of the second general insurance Directive, the meaning of ‘large risk’ for the purposes of sub-paragraph (6) above shall be determined in accordance with the law applicable in that State.”