8.—(1) Paragraph (2) below applies where any friendly society to which section 37(2) of the 1992 Act applies provides, in any financial year ending on or after the commencement date, long term insurance in a member State other than the United Kingdom through an establishment in the United Kingdom.
(2) The society shall prepare, in respect of long term insurance so provided by it, a statement of gross premiums receivable by each of classes I to VI specified in Head A of Schedule 2 to that Act which shows separately—
(a)those receivable in respect of commitments for which the society requires authorisation in the member State in which the commitments are situated in accordance with Article 12 of the second life Directive; and
(b)those receivable in respect of commitments for which the society does not require authorisation in that member State in accordance with Article 14 of that Directive.
(3) A separate statement shall be prepared under paragraph (2) above in respect of each member State in which the society provides the insurance.
(4) In this regulation and regulation 9 below—
(a)“gross premiums” means premiums after deduction of discounts, refunds, rebates of premium and any taxes or levies that are related to those premiums but before deduction of premiums for reinsurance ceded and before deduction of commission payable by the society; and
(b)references to the provision of long term or general insurance in a member State shall be construed in accordance with section 81A of the Insurance Companies Act 1982(1).
(5) In this regulation and regulations 9 to 13 below—
(a)“the commencement date” means, in Great Britain, the day after the day on which these Regulations are made and, in Northern Ireland, 1st January 1994; and
(b)unless the context otherwise requires, expressions which are also used in the 1992 Act have the same meanings as they have for the purposes of that Act.
9.—(1) Paragraphs (2) and (4) below apply where any friendly society to which section 37(3) of the 1992 Act applies provides, in any financial year ending on or after the commencement date, general insurance in a member State other than the United Kingdom through an establishment in the United Kingdom.
(2) The society shall prepare, in respect of general insurance so provided by it—
(a)a statement of gross premiums receivable by each group of classes specified in paragraph (5) below; and
(b)where the gross premiums earned in respect of general insurance so provided by it exceed 2,500,000 ECU, an underwriting account showing, in respect of each group of classes so specified, the items specified in paragraph (6) below.
(3) A separate statement and underwriting account shall be prepared under paragraph (2) above in respect of each member State in which the society provides the insurance.
(4) If—
(a)in respect of general insurance provided by it in the member State concerned through all its establishments (in the United Kingdom and elsewhere), the society earns in any financial year gross premiums in excess of 2,500,000 ECU; and
(b)the supervisory authorities of that member State request the Commission to give a direction under this paragraph,
the Commission may by notice in writing direct the society in future to prepare, in respect of general insurance provided by it in that member State through an establishment in the United Kingdom, an underwriting account showing, in respect of each group of classes specified in paragraph (5) below, the items specified in paragraph (6) below.
(5) For the purposes of paragraphs (2) and (4) above the groups of classes are as follows—
(a)accident and sickness, that is to say, general business of classes 1 and 2 specified in Head B of Schedule 2 to the 1992 Act; and
(b)miscellaneous financial loss, that is to say, general business of class 3 so specified.
(6) For the purposes of paragraphs (2) and (4) above the items which the underwriting account must show are as follows—
(a)the total gross premiums earned in the financial year;
(b)the total cost of gross claims incurred in the financial year;
(c)the total cost of gross commission attributable to premiums referred to in sub-paragraph (a) above; and
(d)the gross underwriting result.
(7) In paragraph (6) above—
(a)the gross premiums mentioned in sub-paragraph (a) are the gross premiums written in the financial year in addition to gross premiums unearned brought forward less gross premiums unearned carried forward;
(b)the gross claims mentioned in sub-paragraph (b) are the gross claims paid in the financial year in addition to gross claims outstanding carried forward less gross claims outstanding brought forward, and including directly attributable expenses;
(c)the gross commission mentioned in sub-paragraph (c) is the gross commission paid in the financial year plus gross commission brought forward less gross commission carried forward; and
(d)the gross underwriting result mentioned in sub-paragraph (d) is reached by deducting from the amount in sub-paragraph (a) the amounts referred to in sub-paragraphs (b) and (c).
10.—(1) Where a statement or underwriting account is prepared by a friendly society under regulation 8(2) or 9(2) or (4) above, the society shall—
(a)cause the statement or account to be printed; and
(b)deposit three copies of the statement or account with the Commission within nine months after the end of the financial year to which it relates;
but the Commission may extend that period of nine months by such period (not exceeding three months) as it thinks fit.
(2) One of the copies of any statement or account deposited under paragraph (1) above shall be signed by the chief executive or secretary of the society.
(3) The Commission shall—
(a)consider any statement or account deposited under paragraph (1) above, and
(b)if the statement or account appears to it to be inaccurate or incomplete in any respect, communicate with the society with a view to the correction of any inaccuracies and the supply of any deficiencies.
11.—(1) This regulation applies where, in accordance with section 57 or 57A of the 1992 Act (covering of risks or commitments situated in another member State), a friendly society has given notice to the Commission of its intention to cover any risks or commitments situated in a member State other than the United Kingdom—
(a)through an establishment in the United Kingdom, or
(b)through an establishment in a member State other than that in which the risks or commitments will be situated.
(2) If the society—
(a)does not cover, in any financial year ending on or after the commencement date, risks or commitments situated in that member State; and
(b)has not informed the Commission in writing, before the beginning of that year, that it no longer intends to cover such risks or commitments,
the society shall notify the Commission of the fact mentioned in paragraph (a) above within nine months after the end of that year.
(3) The Commission shall—
(a)consider any notification given under paragraph (2) above, and
(b)if the notification appears to it to be inaccurate or incomplete in any respect, communicate with the society with a view to the correction of any inaccuracies and the supply of any deficiencies.
12.—(1) A friendly society shall be guilty of an offence if it makes default in complying with any of regulations 8 to 11 above.
(2) A person shall be guilty of an offence if either—
(a)he causes or permits to be included in a document deposited with the Commission under regulation 10(1) above a statement which he knows to be false in a material particular; or
(b)he recklessly causes or permits to be so included a statement which is false in a material particular.
(3) A person guilty of an offence under this regulation shall be liable—
(a)on summary conviction in Great Britain, to a fine not exceeding level 5 on the standard scale; and
(b)on summary conviction in Northern Ireland, to a fine not exceeding £2,000.
13. In respect of any financial year part of which falls before the commencement date, the statement or underwriting account required by regulation 8(2) or 9(2) or (4) above may be prepared solely in respect of long term or general insurance provided on or after that date.
1982 c. 50; section 81A was inserted by S.I. 1990/1333, regulation 10; relevant amendments to section 81A were made by S.I. 1993/174, regulation 4(2).