The Friendly Societies (Authorisation) Regulations 1993

Citation and commencement

1.  These Regulations may be cited as the Friendly Societies (Authorisation) Regulations 1993, and shall come into force on 19th February 1993.

Interpretation

2.—(1) In these Regulations, unless the context otherwise requires—

“the 1992 Act” means the Friendly Societies Act 1992;

“class”, in relation to insurance business, has the meaning given in section 43 of the 1992 Act;

“deposit back arrangement”, in relation to any contract of reinsurance, means an arrangement whereby an amount is deposited by the reinsurer with the cedant;

“direct insurance business” means insurance business that is not reinsurance business;

“information” includes proposal and financial forecast;

“mathematical reserves” means the provision made by the society to cover liabilities (excluding liabilities which have fallen due and liabilities arising from deposit back arrangements) arising under or in connection with contracts for long term business;

“minimum guarantee fund” means the minimum guarantee fund referred to in Regulation 5 of the Friendly Societies (Insurance Business) Regulations 1993(1);

“premium” includes a contribution in respect of an insurance benefit and the consideration for the granting of an annuity;

“qualifying bodies” has the meaning given by section 13(2) of the 1992 Act;

“required margin of solvency” means the margin of solvency to be maintained by the society under section 48 of the 1992 Act;

“Schedule” means Schedule to these Regulations;

“society” means an incorporated friendly society or a registered friendly society applying for authorisation under section 32 of the 1992 Act to carry on insurance or non-insurance business as an incorporated friendly society;

“the valuation regulations” means Parts IV and V of the Friendly Societies (Insurance Business) Regulations 1993.

(2) In these Regulations, unless the context otherwise requires—

(a) references to an actuary, appointed actuary or appropriate actuary shall have the same meaning as they have in section 119 of the 1992 Act;

(b) references to insurance business, long term business, general business, or reinsurance business shall have the same meaning as they have in section 117 of the 1992 Act; and

(c) references to non-insurance business shall have the same meaning as they have in section 119 of the 1992 Act.

(3) References in Schedule 2 to general and special policy conditions do not include specific conditions intended to meet, in an individual case, the particular circumstances of the risk to be covered.

Application

3.  These Regulations shall apply to an application for authorisation to carry on insurance or non-insurance business as an incorporated friendly society under section 32 of the 1992 Act.

Authorisation: submission of information

4.  The information to be submitted pursuant to paragraph 2(2) of Schedule 13 to the 1992 Act shall be—

(a) for an application for authorisation to carry on long term business, the information specified in Schedule 1,

(b) for an application for authorisation to carry on general business, the information specified in Schedule 2, and

(c) for an application for authorisation to carry on non-insurance business, the information specified in Schedule 3.

In witness whereof the common seal of the Friendly Societies Commission is hereunto fixed, and is authenticated by me, a person authorised under paragraph 13 of Schedule 1 to the Friendly Societies Act 1992, on

Michael Cook

Secretary to the Commission

18th January 1993.

We consent to these Regulations

Irvine Patnick

Nicholas Baker

Two of the Lords Commissioners of Her Majesty’s Treasury

21st January 1993