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The Friendly Societies (Amendment) Regulations 1993

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Interpretation of 1992 Act

7.—(1) In subsection (1) of section 117 of the 1992 Act (insurance business etc.), after the definition of “annual contribution income” there shall be inserted the following definition—

  • “commitment” means, in relation to a friendly society to which section 37(2) applies, a commitment represented by insurance business of any class of Head A of Schedule 2 to this Act;

(2) For subsection (6) of that section there shall be substituted the following subsections—

(6) In relation to a contract of insurance entered into by a person on any date with a friendly society to which section 37(3) above applies the effecting of which constitutes general business, or a contract of insurance entered into by a person on any date with a friendly society to which section 37(2) above applies the effecting of which constitutes long term business, references in this Act to the member State where the risk or commitment is situated shall be construed as follows—

(a)where that person is an individual, as references to the member State where he has his habitual place of residence on that date; and

(b)in any other case, as references to the member State where the establishment of that person to which the contract relates is situated on that date.

(7) In relation to any other contract of insurance with a friendly society, references in this Act to the member State where the risk is situated shall be construed as references to the member State where the person who has entered into the contract has his habitual place of residence.

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