Insurance Companies Act 1982 (repealed)

83 Requirements to be complied with by Lloyd’s underwriters. U.K.

(1) The requirements referred to in section 15(4) above are as follows.

(2) Every underwriter shall, in accordance with the provisions of a trust deed approved by the [F1 Treasury], carry to a trust fund all premiums received by him or on his behalf in respect of any insurance business.

(3) Premiums received in respect of long term business shall in no case be carried to the same trust fund under this section as premiums received in respect of general business, but the trust deed may provide for carrying the premiums received in respect of all or any classes of long term business and all or any classes of general business either to a common fund or to any number of separate funds.

(4) The accounts of every underwriter shall be audited annually by an accountant approved by the Committee of F2 . . . and the auditor shall furnish a certificate in the prescribed form to the Committee and the [F1 Treasury].

[F3 (4A) The Council of Lloyd’s and the [F1 Treasury] shall be furnished with a certificate from the accountant who audits the accounts of an underwriter which—

(a) is in the prescribed form; and

(b) contains the statements mentioned in subsection (5) below.

F3 (5) The statements so required in relation to the accounts of an underwriter are statements that in the opinion of the auditor—

(a) the value of the assets available to meet the underwriter’s liabilities in respect of insurance business is correctly shown in the accounts; and

(b) the value of those assets is sufficient to meet the liabilities calculated—

(i) in the case of long term business by an actuary; and

(ii) in the case of other liabilities, by the auditor on a basis approved by the [F1 Treasury].]

(6) Where any liabilities of an underwriter are calculated by an actuary under subsection (5) above, he shall furnish a certificate of the amount thereof to the Committee of Lloyd’s and to the [F1 Treasury], and shall state in his certificate on what basis the calculation is made; and a copy of his certificate shall be annexed to the auditor’s certificate.

(7) The underwriter shall, when required by the Committee of Lloyd’s, furnish to them such information as they may require for the purpose of preparing the statement of business which is to be deposited with the [F1 Treasury] under section 86 below.

Textual Amendments

F1 Words in s. 83 substituted (5.1.1998) by S.I. 1997/2781, art. 8(1), Sch. Pt. I para. 45 (with art. 7)

F2 Words in s. 83(4) omitted (24.12.1996) by virtue of S.I. 1996/3011, regs. 6(2), 10(2)

F3 S. 83(4A)(5) substituted for s. 83(5) (24.12.1996) by S.I. 1996/3011, regs. 6(3), 10(2)

Modifications etc. (not altering text)

C1 s. 83 applied (3.5.1994) by 1994 c. 9 s. 230(1)

S. 83: power to contract out functions conferred (18.11.1998) by S.I. 1998/2842, arts. 2, 3, Sch. Pt. I para. 51