Explanatory Notes

Local Democracy, Economic Development and Construction Act 2009

2009 CHAPTER 20

12 November 2009

Commentary

Part 2: Local Authorities — Governance and Audit

Chapter 2: Mutual Insurance
Section 35 – Mutual insurance: supplementary

102.Section 35(2) lists the qualifying authorities that are being provided with the power to become members of a mutual insurance body corporate.

103.The section defines the appropriate national authority, for the purpose of making regulations or issuing guidance, as the Secretary of State in relation to England and Welsh Ministers in relation to Wales.

104.The section provides that regulations under section 34 are to be made by statutory instrument and lays down the procedures to be followed. Regulations that (i) prescribe persons to whom mutual insurance bodies may provide insurance (ii) impose restrictions or conditions on the use of power by qualifying authorities or (iii) specify any guidance or document to which qualifying authorities must have regard are by negative resolution procedure in Parliament or the National Assembly for Wales, as appropriate. Regulations changing the authorities that are qualifying authorities are by affirmative resolution procedure in Parliament or the National Assembly for Wales, as appropriate.