The Building Societies (Designation of Qualifying Bodies) (No. 2) Order 1995

Explanatory Note

(This note is not part of the Order)

This Order designates a “personal lines insurance body” as a description of body corporate designated as suitable for investment or investment and support (but not for support only) by building societies under section 18 of the Building Societies Act 1986.

A personal lines insurance body is a company or an industrial and provident society, or a body corporate formed in any member State (other than the United Kingdom) or in any of the following territories and countries: the Channel Islands, the Isle of Man, Iceland, Liechtenstein, Norway and Switzerland. The purposes for which it may be formed include the carrying on in any of those places of insurance business of one or more of the classes specified in Part I of Schedule 2 (general business) to the Insurance Companies Act 1982.

With certain exceptions, the insurance business of a personal lines insurance body is restricted to the insurance of individuals. Those exceptions are: buildings and contents insurance for a person (not being an individual) that holds the policy jointly with an individual who occupies land in which the person holds an interest; buildings insurance for housing associations and housing trusts; insurance for the building society investing in the body or for any subsidiary undertaking or associated body of the society; and re-insurance of any risks of a kind which a personal lines insurance body is permitted to insure directly arising under a contract of insurance effected by another body corporate where (i) that other body corporate is a subsidiary undertaking or associated body of the society or (ii) the contract has been arranged by the society or any subsidiary undertaking or associated body of the society.

A compliance cost assessment of the effect that this instrument would have on the cost of business is available from the Secretary, Building Societies Commission, 15 Great Marlborough Street, London W1V 2LL.