PART IIRegulation of Insurance Companies
Intervention by Secretary of State
22Grounds for intervention
1
Notwithstanding anything in section 28 of the 1974 Act (grounds for intervention), the powers conferred on the Secretary of State by sections 31 and 32 of that Act shall not be exercisable in relation to an insurance company except—
a
where the Secretary of State has given (and not revoked) a direction in respect of the company under section 11 above; or
b
on the ground that it appears to the Secretary of State that the company has failed to satisfy an obligation to which it is subject by virtue of section 26B, 26C or 26D of the 1974 Act; or
c
where the ground for intervention arises out of the submission by the company to the Secretary of State of an account or statement specifying, as the amount of any liabilities of the company, an amount appearing to the Secretary of State to have been determined otherwise than in accordance with valuation regulations or, where no such regulations are applicable, generally accepted accounting concepts, bases and policies or other generally accepted methods appropriate for insurance companies.
2
In section 28 of the 1974 Act
a
in paragraph (b)(i) of subsection (1), at the end, there shall be added the words " or the Insurance Companies Act 1981 ";
b
in paragraph (c) of that subsection, at the end, there shall be added the words " or any provision of the Insurance Companies Act 1981 ";
c
in paragraph (e) of that subsection for the words " section 7 above " there shall be substituted the words " section 7, 8 or 9 of the Insurance Companies Act 1981 "; and
d
after that paragraph there shall be added—
f
that it appears to him that there has been a substantial departure from any proposal or forecast submitted to him by the company in accordance with section 5 of the Insurance Companies Act 1981 ;
g
that the company has ceased to be authorised to effect contracts of insurance, or contracts of a particular description, in a member State where it has its head office or has in accordance with section 9(2) of the Insurance Companies Act 1981 made a deposit
e
subsection (2) shall cease to have effect.