PART 2Insurance companies carrying on long-term business

CHAPTER 1Introductory

Meaning of contract of “insurance” or “long-term insurance” and “insurance company”

64Meaning of “contract of insurance” and “contract of long-term insurance”

For the purposes of this Part—

  • “contract of insurance” has the meaning given by article 3(1) of the FISMA (Regulated Activities) Order 2001, and

  • “contract of long-term insurance” means a contract which falls within Part 2 of Schedule 1 to that Order.

65Meaning of “insurance company”

1

This section defines for the purposes of this Part what is meant by an “insurance company”.

2

A person who carries on the activity of effecting or carrying out contracts of insurance is an “insurance company” if—

a

the person has permission under Part 4 of FISMA 2000 to carry on that activity,

b

the person is of the kind mentioned in paragraph 5(d) or (da) of Schedule 3 to FISMA 2000 (EEA passport rights) and carries on that activity in the United Kingdom through a permanent establishment there, or

c

the person qualifies for authorisation under Schedule 4 to FISMA 2000 (Treaty rights) and carries on that activity in the United Kingdom through a permanent establishment there.

3

The above definition is subject to the following qualifications—

a

a friendly society within the meaning of Part 3 is not an insurance company, and

b

an insurance special purpose vehicle (see section 139) is an insurance company only if, in addition to falling within subsection (2)(a), (b) or (c), it is a BLAGAB group re-insurer.

4

A person is a “BLAGAB group re-insurer” if for an accounting period—

a

the person carries on basic life assurance and general annuity business,

b

it is not the case that substantially all of the person’s long-term business is long-term business other than basic life assurance and general annuity business, and

c

all of its life assurance business is re-insurance business of a description which is excluded business for the purposes of section 57(2)(e).