The Insurance Companies Regulations 1994

1. Introductory Text

2. PART I PRELIMINARY

   1. 1. Citation and commencement.

   2. 2. Interpretation: general.

3. PART II AUTHORISATION ETC.

   1. 3. Benefits in kind.

   2. 4. Authorisation: submission of information.

   3. 5. Main agents: exceptions.

   4. 6. Authorisation: UK assets of applicants from non-EEA States etc.

4. PART III DEPOSITS

   1. 7. Interpretation: Part III.

   2. 8. Making and amount of deposit.

   3. 9. Direction etc. by the Secretary of State.

   4. 10. Permitted securities.

   5. 11. Investment.

   6. 12. Disposal of surplus.

   7. 13. Cessation of business etc.

   8. 14. Effect of direction etc.

   9. 15. Application of rules under s.38(7) of the Administration of Justice Act 1982.

5. PART IV MARGINS OF SOLVENCY

   1. 16. Interpretation: Part IV.

   2. 17. Margins of solvency: determination.

   3. 18. Long term classes I, II and IX.

   4. 19. Long term classes III, VII and VIII.

   5. 20. Long term classes IV and VI.

   6. 21. Long term class V.

   7. 22. Guarantee fund and minimum guarantee fund.

   8. 23. Valuation.

   9. 24. Implicit items: future profits.

   10. 25. Implicit items: zillmerising.

   11. 26. Implicit items: hidden reserves.

6. PART V CURRENCY MATCHING, LOCALISATION

   1. 27. Matching: general requirement.

   2. 28. Matching: property linked benefits.

   3. 29. Matching: currency of general business liabilities.

   4. 30. Matching: exception for certain liabilities.

   5. 31. Localisation.

   6. 32. Exclusions from regulations 27 to 31.

   7. 33. Margin of solvency of non-EC company with head office not in an EFTA State etc.: location of assets.

7. PART VI CHANGE OF CONTROL

   1. 34. Particulars of changes of director, controller or manager, etc.

8. PART VII CONDUCT OF BUSINESS

   1. 35. Contents of advertisements: overseas insurers.

   2. 36. Contents of advertisements: statement of capital.

   3. 37. Interpretation of and provisions supplemental to regulations 35 and 36.

   4. 38. Intermediaries: connected persons.

   5. 39. Invitation by intermediary.

   6. 40. Cases excepted from regulation 39.

   7. 41. Notice of long-term contract.

   8. 42. Exemptions from regulation 41.

   9. 43. Linked contracts.

9. PART VIII VALUATION OF ASSETS

   1. 44. Interpretation: Part VIII.

   2. 45. Application: Part VIII.

   3. 46. Shares in and debts due or to become due from dependants.

   4. 47. Valuation of assets and liabilities of dependants for the purposes of regulation 46.

   5. 48. Debts and other rights.

   6. 49. Land.

   7. 50. Equipment.

   8. 51. Unlisted securities.

   9. 52. Unit trusts.

   10. 53. Listed investments.

   11. 54. Reversionary interests etc.

   12. 55. Derivative contracts.

   13. 56. Other assets.

   14. 57. Assets to be taken into account only to a specified extent.

10. PART IX DETERMINATION OF LIABILITIES

    1. 58. Interpretation: Part IX.

    2. 59. Application: Part IX.

    3. 60. Long term and general business.

    4. 61. Provision for adverse changes.

    5. 62. General business liabilities.

    6. 63. Relevant co-insurance operations: general business.

    7. 64. Long term liabilities.

    8. 65. Method of calculation.

    9. 66. Avoidance of future valuation strain.

    10. 67. Valuation of future premiums.

    11. 68. Acquisition expenses.

    12. 69. Rates of interest.

    13. 70. Rates of mortality and disability.

    14. 71. Expenses.

    15. 72. Options.

    16. 73. Contracts not to be treated as assets.

    17. 74. No credit for profits from voluntary discontinuance.

    18. 75. Nature and term of assets.

11. PART X CREDIT INSURNACE BUSINESS

    1. 76. Credit insurance business: equalisation reserve.

    2. 77. Exemption from regulation 76.

    3. 78. Default in complying with regulation 76(1).

12. PART XI STATISTICAL INFORMATION

    1. 79. Interpretation: Part XI.

    2. 80. Insurance statistics: EFTA States and EFTA companies.

    3. 81. Insurance statistics: other member States.

    4. 82. Default in complying with regulations 80 or 81.

    5. 83. Application of regulations 80 to 82 to Lloyd's.

13. PART XII MISCELLANEOUS PROVISIONS

    1. 84. Transitory provision.

    2. 85. Consequential amendments.

    3. 86. Revocations.

14. Signature

15. Schedules

    1. SCHEDULE 1

       — Information to be submitted: long term business.

    2. SCHEDULE 2

       — Information to be submitted: general business.

    3. SCHEDULE 3

       — General business solvency margin: first method of calculation (premium basis).

    4. SCHEDULE 4

       — General business solvency margin: second method of calculation (claims basis).

    5. SCHEDULE 5

       — Minimum guarantee fund.

    6. SCHEDULE 6

       — Change of control etc.

    7. SCHEDULE 7

       — Statutory notice: non-investment contracts.

    8. SCHEDULE 8

       — Statutory notice: investment contracts.

    9. SCHEDULE 9

       — Notice of cancellation.

    10. SCHEDULE 10

        — Permitted links.

    11. SCHEDULE 11

        — Value of dependants.

    12. SCHEDULE 12

        — Assets to be taken into account only to a specified extent.

    13. SCHEDULE 13

        — Relevant co-insurance operations.

    14. SCHEDULE 14

        — Methods of calculating the equalisation reserve for credit insurance business.

    15. SCHEDULE 15

        — Insurance statistics: EFTA States and EFTA companies.

    16. SCHEDULE 16

        — Insurance statistics: other member States.

    17. SCHEDULE 17

        — Revocations.

16. Explanatory Note