PART 2Insurance companies carrying on long-term business

CHAPTER 1Introductory

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

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,

F1(b)

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F2(c)

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(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), F3... 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).