No. 3/1989:
INSURNCE CT, 1989
RRNEMENT OF SECTIONS
PRT I
PRELIMINRY ND ENERL
Section
1. Short title, collective cittion, construction nd commencement.
2. Interprettion.
3. Offences nd penlties.
4. Service of documents.
5. Power to mke reultions.
6. Orders.
7. Fees.
8. Lyin of orders nd reultions before Houses of Oirechts.
9. Repels.
10. Expenses. PRT II
SUPERVISION OF INSURERS
11. Submission nd publiction of returns nd documents by insurers.
12. Reultions rerdin reserves, libilities, vlution of ssets, reinsurnce cessions nd solvency certifictes.
13. Keepin of records by undertkins.
14. Seprtion of ssets nd libilities ttributble to life ssurnce business.
15. ppliction of ssets of undertkin trnsctin life ssurnce business.
16. enerl powers to require informtion.
17. Investitions.
18. Powers to intervene in cses of doubtful solvency.
19. Prior notice nd disply of policy terms nd premium rtes.
20. Qulifictions of directors, mners nd uthorised ent.
21. Revoction of uthoristion where no business is bein done.
22. Reinsurnce.
23. Minimum shre cpitl requirements.
24. Power to ttch conditions to uthoristions.
25. Industril ssurnce business.
26. Insurnce of unnmed persons.
27. ppliction of ct of 1978.
28. mendment of Friendly Societies ct, 1896.
29. ppliction of exemptions in the 1976 nd 1984 Reultions on life nd non-life insurnce.
30. Windin up of insurers.
31. Insurnce Compenstion Fund.
32. Preferentil pyments of debts out of technicl reserves of undertkin.
33. dministrtor\'s power of sle.
34. ppointment, duty nd qulifictions of ctury.
35. Duties of uditor.
36. Powers of Court with respect to mlmtion or trnsfer of insurnce business. PRT III
PYMENT OF COMMISSIONS BY INSURERS
37. Power of Minister to require reduction in commissions.
38. Prohibition of certin commission pyments.
39. Revoction of uthoristion.
40. Restriction on dvertisin.
41. Offences committed by intermediries.
42. Certin policies of life ssurnce voidble.
43. Furnishin of informtion to the Minister. PRT IV
REULTION OF INSURNCE INTERMEDIRIES
44. Brokers\' qulifictions.
45. Intermediries\' indemnity insurnce.
46. Insurnce intermediries ppointment nd commission pyments.
47. Insurnce bond required by intermediry.
48. Keepin of seprte bnk ccounts.
49. Insurnce ents\' qulifictions.
50. Reister of insurnce intermediries.
51. Provisions rerdin scope of ency.
52. cceptnce by intermediry of insurnce proposls.
53. Tretment of premiums pid to intermediries.
54. Restriction on intermediries convicted of offence.
55. Disqulifiction of certin persons from ctin s intermediries.
56. Codes of conduct.
57. Scope of Prt IV.
PRT V
MISCELLNEOUS
58. ppel inst suspension or revoction of uthoristion.
59. ppointment of uthorised officers.
60. Powers of uthorised officers.
61. Codes of conduct on duty of disclosure nd wrrnties.
FIRST SCHEDULE
ENCTMENTS REPELED
SECOND SCHEDULE
INCRESE OF PENLTIES
CTS REFERRED TO
ssurnce Compnies ct, 1909 1909,c. 49
Centrl Bnk ct, 1971
1971, No. 24
Compnies ct, 1963
1963, No. 33
Credit Union ct, 1966
1966, No. 19
Friendly Societies ct, 1896 1896, c. 25
Insurnce ct, 1936
1936, No. 45
Insurnce (mendment) ct, 1938
1938, No. 31
Insurnce ct, 1964
1964, No. 18
Insurnce (mendment) ct, 1978
1978, No. 30
Insurnce (No. 2) ct, 1983
1983, No. 29
Life ssurnce ct, 1774 14 eo. 3, c. 48
Life Insurnce (Irelnd) ct, 1866 29 & 30 Vict. C. 42
Public Offices Fees ct, 1879 1879, c. 58
Trnsport (Tour Opertors nd Trvel ents) ct, 1982
1982, No. 3
Number 3 of 1989
INSURNCE CT, 1989
N CT TO MEND ND EXTEND THE INSURNCE CTS, 1909 TO 1985.
[15th Mrch, 1989]
BE IT ENCTED BY THE OIRECHTS S FOLLOWS:
PRT I PRELIMINRY ND ENERL
Short title, collective cittion, construction nd commencement.
1. —(1) This ct my be cited s the Insurnce ct, 1989 .
(2) The Insurnce cts, 1909 to 1985, nd this ct my be cited toether s the Insurnce cts, 1909 to 1989, nd shll be construed toether s one ct.
(3) This ct shll come into opertion on such dy or dys s my be ppointed by order or orders of the Minister, either enerlly or with reference to prticulr purpose or provision, nd different dys my be so ppointed for different purposes nd different provisions of this ct.
Interprettion.
2. —(1) In this ct, except where the context otherwise requires—
"uthoristion" mens n uthoristion issued by the Minister under the Reultions of 1976 or the Reultions of 1984 to crry on specified clss or description of insurnce business;
"uthorised ent in reltion to n undertkin mens the person desinted s uthorised ent of the undertkin under the Reultions of 1976 or the Reultions of 1984;
"business" mens ssurnce or insurnce business;
"client" mens person who requests n insurnce intermediry to rrne insurnce on his behlf;
"commission pyment" hs the menin iven to it by subsection (3);
"the Compnies cts" mens the Compnies ct, 1963 , nd ny enctment which is to be construed toether with it;
"contrvention" in reltion to ny provision of this ct includes filure to comply with ny requirement imposed by or under tht provision nd "contrvene" shll be construed ccordinly;
"Council Directive" mens Directive of the Council of the Europen Communities;
"the Court" mens the Hih Court;
"insurnce" includes ssurnce;
"the Insurnce cts" mens the Insurnce cts, 1909 to 1989, nd reultions reltin to insurnce business mde under the Europen Communities ct, 1972 ;
"insurnce ent" mens ny person who holds n ppointment in writin from n insurer enblin him to plce insurnce business with tht insurer, but does not include n insurnce broker or n employee of n insurer when the employee is ctin for tht insurer;
"insurnce broker" mens person who, ctin with the freedom of 5 choice described in section 44 (1) (b), brins toether, with view to the insurnce of risks, persons seekin insurnce nd insurnce undertkins, nd crries out work preprtory to the conclusion of contrcts of insurnce, but does not include n insurnce ent or n employee of n insurer when the employee is ctin for tht insurer;
"insurnce intermediry" or "intermediry" mens n insurnce ent or n insurnce broker;
"insurer" mens the holder of n uthoristion under the Reultions of 1976 or the Reultions of 1984;
"life-insurnce" mens ssurnce of clss specified in Schedule 1 to the Reultions of 1984
"non-life ssurnce" mens ssurnce of clss specified in Schedule 1 to the Reultions of 1984;
"non-life insurnce" mens insurnce of clss specified in Schedule 1 to the Reultions of 1976;
"the Minister" mens the Minister for Industry nd Commerce;
"prescribe" mens prescribe by reultions mde under this ct;
"reultions" mens reultions mde under the Insurnce cts, 1909 to 1989, nd reultions reltin to insurnce business mde under the Europen Communities ct, 1972 ;[]
"the Reultions of 1976" mens the Europen Communities (Non-Life Insurnce) Reultions, 1976 ( S.I. No. 115 of 1976 );[]
"the Reultions of 1984" mens the Europen Communities (Life ssurnce) Reultions, 1984 ( S.I. No. 57 of 1984 );[]
"solvency certificte" mens certificte issued by the Minister to n undertkin ttestin its complince with the solvency requirements specified in the Reultions of 1976 or the Reultions of 1984 s pproprite;
"supervisory uthority" mens, in respect of ny territory, the uthority chred by lw with the duty of supervisin the ctivities of insurnce undertkins in tht territory;
"undertkin" mens the holder of n uthoristion.
(2) References in the Insurnce cts, 1909 to 1989, to "ssurnce compny" or "insurnce compny" shll be construed s references to the holder of n uthoristion, nd references to "licence" shll be construed s references to "uthoristion".
( 3 ) ( ) commission pyment, for the purpose of this ct, is pyment, includin commission or other remunertion, rewrd or benefit in kind, pid or pyble by or on behlf of the holder of n uthoristion to n insurnce intermediry in connection with the insurnce business of the holder nd includes the time llowed by the holder to the intermediry for the pyment by the intermediry to the holder of premiums received by the intermediry for the holder for contrcts of insurnce entered into by the holder.
(b) The vlue of the time llowed by n intermediry for the pyment of commission is to be tken into ccount in the clcultion of the vlue of the time so llowed by the holder.
(4) In this ct reference to Prt, section or Schedule is to Prt or section of this ct or to Schedule to this ct, unless it is indicted tht reference to some other enctment is intended.
(5) In this ct reference to subsection or prrph is to the subsection or prrph of the provision in which the reference occurs, unless it is indicted tht reference to some other provision is intended.
Offences nd penlties.
3. —(1) Every person who contrvenes provision of this ct shll 2 be uilty of n offence.
(2) Every person who is uilty of n offence under this ct shll be lible—
( ) on summry conviction, to fine not exceedin ￡1,000 or imprisonment for term not exceedin six months or both;
( b ) on conviction on indictment, to fine not exceedin ￡10,000 or imprisonment for term not exceedin three yers or both.
(3) Where n offence under this ct is committed by body corporte nd the offence is proved to hve been committed with the consent or connivnce of, or to be ttributble to ny nelect on the prt of, ny director, mner, secretry or other similr officer of the body or ny person who ws purportin to ct in such cpcity, he, s well s the body, shll be uilty of the offence nd shll be lible to be proceeded inst nd punished ccordinly.
(4) person convicted of n offence for which penlty is provided in provision, mentioned in column (2) of the Second Schedule, of n ct specified in column (1) of tht Schedule, shll, in lieu of bein lible to the penlty provided in tht provision, be lible to the penlty specified in column (3) of tht Schedule opposite the mention of tht provision in column (2).
(5) If ny person in ny return, report, certificte or other document required for the purpose of ny provision of this ct, or in ny ppliction to the Minister for n uthoristion, wilfully mkes sttement flse in ny mteril prticulr, knowin it to be flse, he shll be uilty of n offence.
(6) The provisions of this section re without prejudice to section 109 of the Insurnce ct, 1936 (which s dpted by section 2 (2) of this ct reltes to offences by the holder of n uthoristion) nd references to "this ct" in subsections (1) nd (4) of the sid section 109 shll be construed s references to the Insurnce cts.
Service of documents.
4. —ny notice, requisition, direction or other document which is required or uthorised to be served on person by this ct my be served—
( ) in the cse of compny incorported or society reistered in the Stte, by levin it t, or sendin it by pre-pid ordinry post to, the reistered office of the compny or society,
( b ) in the cse of compny incorported outside the Stte but hvin plce of business in the Stte, by levin it with, or sendin it by pre-pid ordinry post to, the person notified to the Minister under the Insurnce cts s the uthorised ent in the Stte of the compny or, if no such person hs been notified to the Minister, by the method specified in section 356 of the Compnies ct, 1963 ,[]
( c ) in the cse of forein reistered society with plce of business in the Stte, by levin it with, or sendin it by pre-pid ordinry post to, the person notified to the Minister under the Insurnce cts s the uthorised ent in the Stte of the society or, if no such person hs been notified to the Minister, by levin it t or sendin it in the mnner foresid to the plce of business of the society in the Stte,
( d ) in the cse of Lloyd\'s, by levin it with, or sendin it by pre-pid ordinry post to, the person notified to the Minister under the Insurnce cts s the uthorised ent of Lloyd\'s in the Stte,
( e ) in the cse of ny other person, by levin it t, or sendin it by pre-pid ordinry post to, tht person\'s lst known ddress.
Power to mke reultions.
5. —(1) The Minister my mke reultions for enblin this ct to hve full effect.
(2) Reultions under this ct my contin such incidentl, supplementry nd consequentil provisions s pper to the Minister to be expedient for ny purpose of this ct.
Orders. 6. —The Minister my by order revoke or mend ny order mde by him under ny provision of this ct other thn n order mde under section 1 (3).
Fees. 7. —(1) The Minister, with the consent of the Minister for Finnce, my by order provide for fees—
( ) to be pid to him nnully by the holders of uthoristions,
( b ) to be pid to him in respect of the issue of solvency certificte.
(2) The fee for inspection of the reister kept under section 21 of the Insurnce ct, 1936 shll be such fee not exceedin ten pounds s the Minister with the consent of the Minister for Finnce shll from time to time direct nd subsection (5) of tht section is hereby mended ccordinly.
(3) The fees to be pid under this ct shll be collected in money nd tken in such mnner s the Minister for Finnce my from time to time direct, nd shll be pid into or disposed of for the benefit of the Exchequer in ccordnce with the directions of tht Minister.
(4) The Public Offices Fees ct, 1879 shll not pply in respect of fees under this ct.
Lyin of orders nd reultions before Houses of Oirechts.
8. —Every order or reultion mde by the Minister under this ct shll be lid before ech House of the Oirechts s soon s my be fter it is mde nd, if resolution nnullin the order or reultion is pssed by either such House within the next twenty-one dys on which tht House hs st fter the order or reultion is lid before it, the order or reultion shll be nnulled ccordinly, but without prejudice to the vlidity of nythin previously done thereunder.
Repels.
9. —Ech enctment mentioned in column (2) of the First Schedule is repeled to the extent specified in column (3) of tht Schedule opposite the mention of tht enctment in column (2).
Expenses.
10. —The expenses incurred by the Minister in the dministrtion of this ct shll, to such extent s my be snctioned by the Minister for Finnce, be pid out of moneys provided by the Oirechts.
PRT II SUPERVISION OF INSURERS
Submission nd publiction of returns nd documents by insurers.
11. —(1) The Minister my by reultion—
( ) prescribe the returns nd documents to be submitted by holders of uthoristions,
( b ) require ny return or document submitted to him to be ttested by person of professionl stndin specified by the Minister, nd by directors nd such officers of the compny s he my prescribe,
( c ) require tht ny such return or document shll be published in such mnner s the Minister sees fit nd tht ny return or document shll be lid before ech House of the Oirechts.
(2) The Minister shll hve the riht to disclose ny such return or document to the supervisory uthority of nother Member Stte of the Europen Communities, where such disclosure is required or uthorised by lw.
Reultions rerdin reserves, libilities, vlution of ssets, reinsurnce cessions nd solvency certifictes. 12. —The Minister my mke reultions for the proper exercise of his functions under the Insurnce cts in respect of the followin—
( ) the clcultion of technicl or mthemticl reserves representin underwritin libilities,
( b ) the vlution of ssets of n insurnce undertkin,
( c ) the nture nd spred of ssets representin underwritin libilities nd the loclistion nd mtchin of such ssets,
( d ) the clcultion of underwritin libilities,
( e ) reinsurnce cessions of uthorised undertkins includin informtion which undertkins must supply in respect of their reinsurnce rrnements,
( f ) the procedure, conditions nd forms to be involved in the issue of solvency certificte,
( ) the prohibition or limittion of investments of specified clss or description,
( h ) the percente of distributed surplus llocted to policyholders.
Keepin of records by undertkins.
13. —n undertkin shll mintin t its reistered office or plce of business in the Stte proper records of ll business crried on by the undertkin in the Stte under its uthoristion.
Seprtion of ssets nd libilities ttributble to life ssurnce business.
14. —(1) Every undertkin uthorised to crry on life ssurnce business—
( ) shll mintin n ccount in respect of tht business nd the receipts of tht business shll be entered in the ccount mintined for tht purpose nd shll be crried to nd form the life ssurnce fund, nd
( b ) shll mintin such ccountin nd other records s re necessry for identifyin—
(i) the ssets representin the fund mintined by the undertkin under prrph () of this subsection, nd
(ii) the libilities ttributble to tht business.
(2) The provisions of subsection (1) re without prejudice to the oblitions of n undertkin to mintin such records s re necessry for the preprtion nd submission to the Minister of seprte ccounts nd sttements for ny clss or prt of clss of business s required from time to time by the Insurnce cts.
ppliction of ssets of undertkin trnsctin life ssurnce business.
15. —(1) The ssets representin the fund mintined by n undertkin in ccordnce with section 14 (1)—
( ) shll be pplied for the purposes of tht business, nd
( b ) shll not be trnsferred so s to be vilble for other purposes of the undertkin except where the trnsfer constitutes reimbursement of expenditure borne by other ssets (in the sme or the lst precedin finncil yer) in dischrin libilities wholly or prtly ttributble to life ssurnce business.
(2) Where the vlue of the ssets mentioned in subsection (1) is shown, by n investition to which rticle 5 of the Europen Communities (Life ssurnce ccounts, Sttements nd Vlutions) Reultions, 1986 ( S.I. No. 437 of 1986 ) pplies or which is mde in pursunce of requirement imposed under section 16 or 17 to exceed the mount of the libility ttributble to the undertkin\'s life ssurnce business the restriction imposed by tht subsection shll not pply to so much of those ssets s represents the excess.
(3) Subsection (2) shll not uthorise trnsfer or other ppliction of ssets by reference to n cturil investition t ny time fter the dte when the bstrct of the ctury\'s report of the investition hs been deposited with the Minister in ccordnce with rticle 9 (1) of the sid Reultions of 1986.
(4) Nothin in subsection (1) shll preclude n undertkin from exchnin, t fir mrket vlue, ssets representin the fund mintined by the undertkin in respect of its life ssurnce business for other ssets of the undertkin.
(5) morte or chre shll be void to the extent to which it contrvenes subsection (1).
(6) Money from the fund mintined by n undertkin in respect of its life ssurnce business shll not be used for the purposes of ny business of the undertkin which is not life ssurnce business notwithstndin ny rrnement for its subsequent repyment out of the receipts of tht other business.
(7) No undertkin to which this section pplies shll declre dividend t ny time when the vlue of the ssets representin the fund or the solvency mrin, s determined in ccordnce with ny pplicble vlution reultions, is—
( ) in the cse of the fund, less thn the mount of the libilities ttributble to tht business s so determined, or
( b ) in the cse of the solvency mrin, less thn the mount required by the Reultions of 1984.
(8) In this section reference to "the fund" is to the totl fund of ssets mintined by n undertkin in respect of its life ssurnce business, not bein shreholders\' ssets.
enerl powers to require informtion.
16. —(1) Whenever the Minister considers it necessry in order to stisfy himself whether n undertkin is complyin with its oblitions under the Insurnce cts he my require the undertkin to prepre nd submit to him—
( ) returns nd ccounts in the form prescribed by the Insurnce cts mde up to such dte s the Minister my direct;
( b ) such other informtion (includin informtion derived from n cturil investition) s he my specify in reltion to the undertkin itself;
( c ) such other informtion s the Minister my specify in reltion to ny connected body of the undertkin which the undertkin my resonbly be expected to provide.
(2) The Minister my require tht such returns, ccounts or informtion be certified or ttested s to their correctness by ny person nominted by him.
(3) For the purpose of this section connected body shll include—
( ) ny connected body within the menin of section 4 (4), prrphs (), ( b ) nd (d)of the Insurnce (No. 2) ct, 1983 ,[]
( b ) ny body in which the undertkin, either lone or with ny ssocite or ssocites, is entitled to exercise or control the exercise of one-fifth or more of the votin rihts t ny enerl meetin of tht body,
( c ) ny body which, either lone or with ny ssocite or ssocites, is entitled to exercise or control the exercise of one-fifth or more of the votin rihts t ny enerl meetin of the undertkin,
( d ) ny body which is fellow subsidiry of the undertkin within the menin of the Compnies cts, nd
( e ) ny body which is connected to connected body within the menin of this section.
(4) For the purposes of subsection (3) "body" mens body corporte or n unincorported body of persons.
(5) requisition under subsection (1) my specify dte by which it must be met nd if it is not met by the specified dte the Minister my suspend or revoke the uthoristion of the undertkin in ny clss or prt of clss of business in ccordnce with the procedures provided for in section 58.
(6) The Minister my by order prescribe lower fiure thn tht mentioned in subsection (3), prrph (b) or (c).
Investition.
17. —(1) Whenever the Minister considers it necessry in order to I stisfy himself whether n undertkin is complyin, or hs the bility to continue to comply, with its oblitions under the Insurnce cts, the Minister my direct n investition of the business of the undertkin or of ny spect of such business.
(2) Where the Minister directs such investition he my require the undertkin to furnish to him, by specified dte ny return, document or ccount, whether in reltion to the undertkin itself or ny connected body which the Minister my specify, necessry for the conduct of the investition, nd he my lso require the undertkin to furnish to him returns nd ccounts duly certified, or ny document duly ttested, necessry to stisfy him s to the finncil stte of the undertkin.
(3) For the purposes of this section "connected body" hs the menin iven to it by section 16.
(4) If the undertkin fils to comply with subsection (2), the Minister my suspend or revoke its uthoristion in ny clss or prt of clss of business in ccordnce with the procedures provided for in section 58.
Powers to intervene in cses of doubtful solvency.
18. —(1) If the Minister hs reson to believe—
( ) tht n undertkin is or my be unble to meet its libilities, or
( b ) tht n undertkin whose hed office is in the Stte is or my be unble to provide the required solvency mrin,
the Minister my direct the undertkin to tke, by specified dte, such one or more of the followin mesures s he deems pproprite, either indefinitely or for specified period:
(i) to refrin from tkin on new business, or new business of specified type or clss,
(ii) to limit its premium income to specified mount,
(iii) to refrin from mkin investments of specified clss or description,
(iv) to relise, within specified period, investments of specified clss or description,
(v) to mintin in the Stte ssets of vlue equl to the whole or specified proportion of the mount of its libilities in respect of business crried on in the Stte,
(vi) to tke such further mesures s my be specified in the direction.
(2) The powers in subsection (1), prrphs (i) to (vi), my lso be exercisble by the Minister on ny of the followin rounds:
( ) if the undertkin hs filed to comply with provision of the Insurnce cts,
( b ) if the Minister is not stisfied tht dequte rrnements re in force or will be mde for the reinsurnce of risks inst which persons re insured by the undertkin in the course of crryin on business, bein risks of clss in the cse of which he considers tht such rrnements re required,
( c ) if there exists round on which the Minister would be prohibited from issuin n uthoristion to the undertkin if it were pplied for,
( d ) if it ppers to the Minister tht there hs been substntil deprture from ny proposl or forecst submitted to him nd on the bsis of which n uthoristion ws issued to the undertkin.
(3) In the cse of n undertkin whose hed office is in nother Member Stte of the Community the Minister shll, before issuin direction under this section, notify the supervisory uthority of the Member Stte in which the hed office is situted.
(4) If the undertkin does not comply with direction under this section the Minister my suspend or revoke its uthoristion in ny clss or prt of clss of business in ccordnce with the procedures provided for in section 58.
(5) The Minister my pply to the Court for n order confirmin direction under this section or for n order confirmin nd extendin the period of opertion of such direction for such time s the Court my, hvin rerd to ll the circumstnces, consider pproprite, nd the Court my rnt such n order.
(6) The Court my, in ddition to or in lieu of mkin n order under subsection (5), mke such order in reltion to the mtter s my pper to it to be necessry.
(7) The whole or prt of proceedins under this section or of n ppel in reltion thereto my be herd in chmbers.
(8) n undertkin to which direction is iven under this section my pply to the Court for n order settin side the direction nd the Court my rnt such n order.
(9) The Minister my from time to time vry or revoke direction iven under this section.
Prior notice nd disply of policy terms nd premium rtes.
19. —(1) The Minister my require n undertkin uthorised in the Stte or n insurnce undertkin which, while not uthorised in the Stte, issues cover from brod for risk risin in the Stte nd is lelly entitled to do so, to furnish prticulrs to him t ny time of the enerl nd specific policy conditions nd premium rtes ttchin to specified types of contrcts of insurnce nd he my require such prticulrs to be furnished before ny such insurnce contrcts re issued.
(2) The Minister my require similr informtion from persons seekin n uthoristion to estblish within the Stte.
(3) The Minister my require insurers crryin on insurnce of ny specified clss or description to disply or provide informtion on their policy conditions nd rtes in such mnner s he my prescribe.
Qulifictions of directors, mners nd uthorised ent.
20. —(1) The Minister my require n insurer to submit to him such informtion s he my require concernin the qulifictions nd experience of its directors nd of the holders of such mneril posts s he my specify, or of the insurer\'s uthorised ent in the Stte.
(2) Where it ppers to the Minister tht person holdin position s director, mner or uthorised ent is not person suitbly qulified or experienced to hold tht position (" qulified person") he my direct tht, s lon s tht person holds the position, the insurer shll tke such one or more of the mesures specified in section 18 (1) s the Minister deems pproprite nd the insurer shll comply with tht direction nd tht section shll hve effect ccordinly.
(3) Every proposl to ppoint director, chief executive or uthorised ent of the insurer shll be notified to the Minister nd shll not be mde if the Minister objects to the proposl on the round tht the person proposed to be ppointed is not qulified person.
( 4 ) ( ) n pplicnt for n uthoristion shll supply the Minister with such informtion s he my require concernin the qulifictions nd experience of ny person proposed to be director of the undertkin nd of ech person proposed to be the chief executive or to hold ny other mnement position of responsibility in the undertkin, or of the person who is proposed to be the uthorised ent of the undertkin.
( b ) The Minister shll not rnt n uthoristion if it ppers to him tht such person is not qulified person.
(5) In the cse of n undertkin whose hed office is not situted in the Stte this section shll pply only to persons crryin on functions of the undertkin in the Stte.
(6) No clim shll lie inst the Minister for ny loss of office risin directly or indirectly from ny of the provisions of this section.
(7) n undertkin my ppel to the Court inst direction or objection of the Minister under this section. The ppel my be herd in chmbers.
Revoction of uthoristion where no business is bein done.
21. —(1) Subject to the provisions of this section, the Minister my—
( ) revoke n uthoristion in ny clss or prt of clss of life or non-life insurnce if he is stisfied tht no business hs been crried on under the uthoristion for the lst two consecutive yers, or if the holder of n uthoristion hs reduced the scle of its business in clss or prt of clss of life or non-life insurnce so s to mount in effect to cesstion of the crryin on of business in tht clss or prt of clss;
( b ) suspend n uthoristion in ny clss or prt of clss of life or non-life insurnce if he is stisfied tht business hs cesed temporrily or if the undertkin hs so reduced the scle of its business in tht clss or prt of clss of business s to mount in effect to temporry cesstion of the crryin on of such business, nd he my ly down conditions for the removl of the suspension of the uthoristion.
(2) For the purpose of this section the crryin on of insurnce business shll be tken to men the issue in the Stte of policies of insurnce.
(3) Subsection (1) shll not pply to cesstion or reduction of business or revoction or suspension of uthoristions required by direction of the Minister under section 18.
(4) The revoction or suspension of n uthoristion under this section shll be crried out in ccordnce with the procedures provided for in section 58.
Reinsurnce.
22. —(1) It shll not be lwful for ny person to crry on from or t plce of business or n estblishment in the Stte the business of reinsurin business of clss to which the Insurnce cts pply unless—
( ) in the cse of n undertkin which holds n uthoristion to crry on business in one or more clsses, the uthoristion extends to those clsses of business in which reinsurnce is bein ccepted, or
( b ) in the cse of person not holdin n uthoristion, tht person hs notified the Minister in such form s the Minister my prescribe tht it crries on the business of reinsurnce, nd files with the reistrr of compnies its ccounts in such form s the Minister my specify.
(2) Nothin in this section shll prevent n undertkin from cceptin reinsurnce in clss or clsses to which its uthoristion does not extend, where the business of such clss or clsses is ncillry to the min reinsurnce business bein ccepted, provided lwys tht—
( ) in the cse of n undertkin which holds n uthoristion under the Reultions of 1976, the clss or clsses of business in which reinsurnce is bein ccepted is confined to insurnce of clss or clsses specified in Schedule 1 to the sid Reultions, or
( b ) in the cse of n undertkin which holds n uthoristion under the Reultions of 1984, the clss or clsses of business in which reinsurnce is bein ccepted is confined to ssurnce of clss or clsses specified in Schedule 1 to the sid Reultions.
(3) Reinsurnce cceptnces by n undertkin shll be subject to the provisions of the Insurnce cts.
Minimum shre cpitl requirements.
23. —(1) The Minister shll not rnt n uthoristion unless—
( ) in the cse of compny incorported in the Stte under the Compnies cts, the pid up shre cpitl of the compny is not less thn ￡500,000, nd
( b ) in the cse of society reistered under the Industril nd Provident Societies cts, 1893 to 1978, the pid up shre cpitl is not less thn ￡500,000 nd such shre cpitl is not withdrwble by, or repyble to, members of the society.
(2) The Minister my mke reultions concernin the form in which shre cpitl my be issued by the bodies referred to in subsection (1) nd my by order mend the requirements s to the required vlue of pid up shre cpitl referred to in tht subsection.
Power to ttch conditions to uthoristions.
24. —(1) Where the Minister considers it expedient in the public interest or in the interest of policyholders, he my, t the time of the issue of n uthoristion or t ny other time, require the holder of n uthoristion to ive undertkins by specific dte s to the mnner in which its business shll be conducted, nd such holder shll ive nd shll comply with the undertkins so required.
(2) The holder of n uthoristion shll furnish to the Minister nnully or t such more frequent intervls s the Minister my request such returns nd documents or other informtion in such form nd mnner s he my require s re necessry to enble the Minister to verify tht the undertkins mentioned in subsection (1) re bein complied with.
(3) Where the holder of n uthoristion fils to comply with subsections (1) or (2) the Minister my suspend or revoke the uthoristion in ny clss or prt of clss of business in ccordnce with the procedures provided for in section 58.
Industril ssurnce business.
25. —(1) Notwithstndin nythin to the contrry in the ssurnce Compnies ct, 1909, or the Insurnce ct, 1936 , the industril ssurnce nd life ssurnce funds mintined by n insurer before the commencement of this section my be mlmted nd the combined fund shll be lible for ny contrcts of the insurer for which ny of the funds would previously hve been lible.
(2) In the cse of contrcts of industril ssurnce business, the oblition to collect premiums, whether risin from contrcts, expressly or impliedly, or by sttutory impliction, nd whether such contrcts existed t or were entered into fter the commencement of this section, shll be stisfied if collection is effected not less frequently thn once every two months.
( 3 ) ( ) Section 50 (5) of the Insurnce ct, 1936 , is hereby mended by the substitution of "￡1,200" for "twenty-five pounds".
( b ) Section 51 (2) of the Insurnce ct, 1936 (mximum sums which cn be ssured on the lives of children under 10 yers) is hereby mended by the substitution of "￡1,000" for "twenty pounds" (inserted by the Credit Union ct, 1966 ) nd of "￡1,000" for "thirty pounds" (inserted by the Credit Union ct, 1966 ).[]
( c ) The Minister my by order lter the provisions of this subsection rerdin sums ssured under policies of industril ssurnce.
Insurnce of unnmed persons.
26. —(1) Section 2 of the Life ssurnce ct, 1774, s pplied by the Life Insurnce (Irelnd) ct, 1866, shll not invlidte policy of insurnce for the benefit of unnmed persons from time to time fllin within specified clss or description if the clss or description is stted in the policy with sufficient prticulrity to mke it possible to estblish the identity of ll persons who, t ny iven time, re entitled to benefit under the policy.
(2) This section shll pply to ll policies effected whether before or fter the commencement of this section.
ppliction of ct of 1978.
27. —The Insurnce (mendment) ct, 1978 , is hereby mended by the substitution, for section 2, of the followin section:
"2.—(1) This ct pplies to ny bond or ny contrct of suretyship or urntee which is iven, or is entered into, s surety or urntor by—
( ) licensee in the course of his bnkin business, or
( b ) Industril Credit Corportion Public Limited Compny in the course of its business, or
( c ) Fóir Teornt in the course of its business,
or which is in the course of his bnkin business iven or entered into, s surety or urntor, by person resident outside the Stte to stisfy, nd only for the purposes of, requirement which is both—
(i) requirement of licensee or Industril Credit Corportion Public Limited Compny or Fóir Teornt, nd
(ii) mde solely for the purposes of securin finncil fcilities to be mde vilble by tht licensee, or Industril Credit Corportion Public Limited Compny or Fóir Teornt.
(2) For the purposes of this section—
\'bnkin business\' hs the menin ssined to it by section 2 of the Centrl Bnk ct, 1971 ;[]
\'licensee\' mens the holder of licence rnted under the Centrl Bnk ct, 1971 .".[]
mendment of Friendly Societies ct, 1896.
28. —The Friendly Societies ct, 1896, is hereby mended by the insertion of the followin section fter section 8:
" Restrictions on reistrtion.
8. Notwithstndin section 8 of this ct:
(1) No society shll be reistered under this ct for ny of the purposes referred to in section 8 (1) ( ) or section 8 (1) ( e ) of this ct unless the reistrr of friendly societies is stisfied tht the society is society to which rticle 2.2 (b), rticle 2.2 (c)or rticle 3 of Council Directive 73/23WEEC 1 1 refers. (2) No society shll be reistered under this ct for ny of the purposes referred to in section 8 (1) ( b ) or section 8 (1) ( d ) of this ct unless the reistrr of friendly societies is stisfied tht the society is society to which rticle 2.2, rticle 2.3 or rticle 3 of Council Directive 79/267/EEC 2 2 refers, or is society in respect of which the Minister for Industry nd Commerce hs indicted tht he will issue n uthoristion under the Europen Communities (Life ssurnce) Reultions, 1984.
(3) No society reistered under this ct shll be uthorised to crry on ny insurnce business fllin under the description of insurnce of Clss III, IV or VII of Schedule 1 to the Europen Communities (Life ssurnce) Reultions, 1984, unless it hs obtined n uthoristion under those Reultions for tht purpose.".
ppliction of exemptions in the 1976 nd 1984 Reultions on life nd non-life insurnce.
29. —It is hereby declred for the voidnce of doubt tht—
( ) the provisions of Reultion 3 (2) ( b ) of the Reultions of 1976 nd Reultion 3 (2) ( b ) of the Reultions of 1984 pply only in reltion to the opertions mentioned in the sid subprrphs where such opertions re crried out by body reistered under the cts reltin to friendly societies or trde unions, nd
( b ) the reference in Reultion 3 (2) ( c ) of the Reultions of 1976 to mu tul ssocitions nd the reference in Reultion 3 (2) ( c ) of the Reultions of 1984 to ornistions nd mutul ssocitions re references to mutul ssocitions nd ornistions reistered under the cts reltin to friendly societies or trde unions.
Windin up of insurers.
30. —Where petition for the windin up of n undertkin is presented by person other thn the Minister, copy of the petition shll be served on the Minister nd he shll be entitled to be herd on the petition.
Insurnce Compenstion Fund.
31. —(1) Subsection (1) (inserted by the ct of 1983) of section 3 of the Insurnce ct, 1964 , shll not pply to the liquidtor of n insurer (within the menin of the ct of 1983) the windin up of which is commenced by the Court fter the commencement of this section.
(2) Section 3 of the Insurnce ct, 1964 , is hereby mended by the insertion of the followin subsections fter subsection (1):
"(1B) ( ) Subject to the provisions of this section, there my, with the pprovl of the Hih Court, be pid out of the Fund to the liquidtor of n insolvent insurer (includin n insurer whose uthoristion hs been revoked by the Minister) the windin up of which hs been commenced by the Hih Court fter the commencement of section 31 of the Insurnce ct, 1989 , such mount or mounts (subject to the limit provided for in prrph (b) ) s the Court my from time to time uthorise in respect of ny sum (other thn sum pyble in respect of the refund of premium) due to person under policy issued by the insurer in the Stte in respect of risk situted in the Stte, toether with the costs nd expenses (if ny) necessrily nd resonbly incurred by the person in endevourin to secure pyment of the sum.
( b ) The totl mount which my be pid out of the Fund under prrph ()in respect of ny sum due to person under policy shll not exceed (whether s one pyment or s the totl of series of pyments) sixty-five per cent. (or six hundred nd fifty thousnd pounds, whichever is the less) of such sum.
(1C) Where ny sum referred to in subsection (1B) reltes to the libility of the insured to third prty, the limittion prescribed by tht subsection on pyment out of the Fund pplies to the sum required to meet the libility of the insured to tht third prty.
(1D) Subsection (1B) does not pply to ny sum due to body corporte or unincorported body of persons unless the sum is due in respect of the libility of such body to n individul or in respect of the libility of n individul to such body.
(1E) Where ny mount is pid out of the Fund to liquidtor under subsection (1B) the liquidtor shll py such mount to the person in respect of whom it is due.".
(3) Subsection (2B) (inserted by the ct of 1983) of the sid section 3 shll not pply to the dministrtor of n insurer (within the menin foresid) the dministrtion of which is commenced fter the commencement of this section.
(4) Section 3 of the Insurnce ct, 1964 , is hereby mended—
( ) by the deletion from subsection (2C) ( b ) (inserted by section 9 of the ct of 1983) of "the Minister my t ny time wive ll or ny prt of the sid debt on behlf of the Fund" nd the substitution of "the Minister my with the consent of the Minister for Finnce t ny time wive ll or ny prt of the sid debt on behlf of the Fund"; nd
( b ) by the substitution of the followin subsection for subsection (2) (inserted by section 9 of the ct of 1983):
"(2) Where n mount is pid out of the Fund to the liquidtor of n insurer under subsection (1) or (1B) of this section in respect of sum due under policy issued by the insurer nd the costs nd expenses (if ny) incurred in reltion to the sum, or, where subsection (1) pplies, in respect of refund of premium, the ccountnt shll, s respects the mount pid out of the Fund, be creditor of the insurer, nd tht mount shll be dmitted in the proceedins for the windin up s proved debt of the insurer hvin priority to ny sum reminin due under the policy or in respect of the refund of the premium, s the cse my be.".
(5) Section 6 (2) ( d ) of the Insurnce ct, 1964 (inserted by section 10 of the ct of 1983) is hereby mended by the deletion of the definition of "rete income nd the substitution of the followin definition:
"\'rete income\' in reltion to n insurer in respect of ny period, mens the ross mount of premiums pid or pyble to the insurer in respect of policies issued by him in the Stte in tht period in respect of risks situted in the Stte;".
(6) In this section "the ct of 1983\' mens the Insurnce (No. 2) ct, 1983 .[]
(7) risk shll be deemed to be situted in the Stte for the purposes of sections 3 of the Insurnce ct, 1964 , s mended by this section, where the policy or other instrument of insurnce reltes to—
( ) property consistin of buildins or buildins nd their contents, insofr s the contents re covered by the sme policy or other instrument of insurnce, if the property is situted in the Stte;
(b) vehicles, includin lnd vehicles, rilwy rollin stock, ircrft, se, lke, river nd cnl vessels, if the vehicle is reistered in the Stte;
( c ) trvel or holidy risks, whtever the clss concerned, if the policy or other instrument of insurnce is issued in the Stte;
or, in ny other cse, if the policyholder is ordinrily resident in the Stte or if the policyholder is lel person nd the estblishment to which the policy or other instrument of insurnce reltes is situted in the Stte.
Preferentil pyments of debts out of technicl reserves of undertkin.
32. —(1) In every windin up, the ssets, wherever situted, of n undertkin representin technicl reserves required to be estblished nd mintined pursunt to the Reultions of 1976 or the Reultions of 1984, s the cse my be, shll, without prejudice to ny riht of priority under the Compnies cts, or ny other enctment, be utilised to dischre debts risin under contrcts of insurnce mde pursunt to its uthoristion in priority to other debts.
(2) For the purpose of this section ny mount recovered from reinsurnce under contrct of reinsurnce reltin to contrct of insurnce mentioned in subsection (1) shll form prt of the sid technicl reserves.
dministrtor\'s power of sle.
33. —(1) It is hereby declred for the voidnce of doubt tht n dministrtor ppointed under section 2 of the Insurnce (No. 2) ct, 1983 , shll hve, nd shll be deemed lwys to hve hd, power to dispose of ll or ny prt of the business, undertkin or ssets of the insurer nd to crry on ny reminin business includin the settlement of libilities, with view to the orderly completion of the dministrtion.
(2) Where ny such dministrtor ppointed prior to the commencement of this ct hs disposed of ll or ny prt of the business, undertkin or ssets of n insurer, there my, with the pprovl of the Hih Court, be pid out of the Fund to the dministrtor such mounts s re, in the opinion of the Hih Court, required to enble the dministrtor to continue the dministrtion with view to its completion in n orderly mnner.
ppointment, duty nd qulifictions of ctury.
34. —(1) n insurer which hs its hed office in the Stte nd which t the commencement of this Prt hs n uthoristion to undertke life ssurnce shll, if it hs not lredy done so, within two months of such commencement, ppoint suitbly qulified person s ctury to the insurer, nd prticulrs of the identity, experience nd qulifictions of the person so ppointed shll be notified to the Minister on his ppointment.
(2) n insurer which hs its hed office in the Stte shll within one month of bein rnted n uthoristion to undertke life ssurnce ppoint suitbly qulified person s ctury to the undertkin, nd informtion s to the identity, experience nd qulifictions of the person so ppointed shll be notified to the Minister on such ppointment.
(3) It shll be the duty of the person ppointed s ctury to n undertkin to crry out ny function reltin to the business of tht undertkin which is required by the Insurnce cts to be undertken by n ctury.
(4) The Minister my by order prescribe the qulifictions nd experience of the person to be ppointed s ctury to n undertkin.
Duties of uditor.
35. —(1) If n uditor of n insurer—
( ) hs reson to believe tht there exist circumstnces which re likely to ffect mterilly the insurer\'s bility to fulfill its oblitions to policyholders or meet ny of its mteril finncil requirements under the Insurnce cts, or
( b ) hs reson to believe tht there re mteril defects in the finncil systems nd controls or ccountin records of the insurer which re likely to hve tht effect, or
( c ) proposes to qulify ny certificte which he is to provide in reltion to finncil sttements or returns of the insurer under the Compnies cts or the Insurnce cts, or
( d ) decides to resin or not seek re-election s uditor, he shll report the mtter to the Minister in writin without dely.
(2) The uditor shll send to the insurer copy of ny report mde by him to the Minister under subsection (1).
(3) Whenever the Minister is of the opinion tht the exercise of his functions under the Insurnce cts or the protection of the interests of policyholders so requires, he my require n uditor of n insurer to supply him with such informtion s he my specify in reltion to the udit of the business of the insurer nd the uditor shll comply with the requirement. The Minister my require tht in supplyin such informtion the uditor shll ct independently of the insurer.
(4) In the cse of n insurer hvin its hed office outside the Stte, the duties imposed on n uditor under this section shll pply in respect of business written by the insurer t its estblishment in the Stte.
(5) No duty to which n uditor of n Insurer my be subject shll be rerded s contrvened, nd no libility to the insurer, or to its shreholders, creditors or other interested prties, shll ttch to the uditor, by reson of his complince with ny oblition imposed on him by or under this section.
Powers of Court with respect to mlmtion or trnsfer of insurnce business.
36. —(1) Whenever the Court snctions under section 13 of the ssurnce Compnies ct, 1909, the mlmtion of two or more insurnce compnies or the trnsfer of insurnce business of ny clss from one insurnce compny to nother or n mlmtion or trnsfer s foresid is to be effected which does not require the snction of the Court under tht section, the Court shll, hvin hd rerd to ll the libilities of the compnies, by the order rntin the snction, or where snction under the sid section is not required, upon ppliction bein mde to it, provide for such of the followin mtters s the circumstnces require:
( ) the trnsfer to the trnsferee compny of the whole or ny prt of the undertkin nd of the property or libilities of ny trnsferor compny;
( b ) the llottin or pproprition by the trnsferee compny of ny shres, debentures, policies or other like interests in tht compny which under the mlmtion or trnsfer re to be llotted or pproprited by tht compny to or for ny person;
( c ) the continution by or inst the trnsferee compny of ny lel proceedins pendin by or inst ny trnsferor compny;
( d ) the dissolution, without windin up, of ny trnsferor compny;
( e ) such incidentl, consequentil nd supplementry mtters s re necessry to secure tht the mlmtion or trnsfer shll be fully nd effectively crried out.
(2) Where ny order mde under subsection (1) provides for the trnsfer of property or libilities, tht property shll, by virtue of the order, be trnsferred to nd vest in, nd those libilities shll, by virtue of the order, be trnsferred to nd become the libilities of, the trnsferee compny, nd in the cse of ny property, if the order so directs, freed from ny morte or chre which is by virtue of the mlmtion or trnsfer to cese to hve effect.
(3) Where the Court snctions or pproves n mlmtion or trnsfer to which subsection (1) reltes, the trnsferee compny shll, within ten dys from the dte on which the order is mde or such loner period s the Minister my llow, deposit two office copies of the order with the Minister.
(4) In this section—
"libilities" includes duties;
"property" includes property, rihts nd powers of every description;
"trnsferor compny" mens the compny the whole or prt of the undertkin or property of which is to be trnsferred under the mlmtion or trnsfer nd "trnsferee compny" mens the compny to which such trnsfer is to tke plce.
1 OJ L228/3 of 16.8.73
2 OJ L63/1 of 13.3.79
PRT III PYMENT OF COMMISSIONS BY INSURERS
Power of Minister to require reduction in commissions.
37. —(1) ( ) Where, in the opinion of the Minister, the commission pyments of the holder of n uthoristion re excessive, he my, by notice in writin sent to the holder, require the holder to reduce the commission pyments of the holder in reltion to insurnce business, or specified clsses of insurnce business, fter such dte (not bein less thn two months fter the dte of the sendin of the notice) s my be specified in the notice to not more thn such level or levels s the Minister my specify in the notice.
( b ) Levels of commission pyments my be specified by the Minister in notice under this subsection in such mnner nd by reference to such mtters s the Minister thinks fit.
( c ) Where the Minister sends notice under this subsection to the holder of n uthoristion, he shll t the sme time send copy of the notice to ll other holders of uthoristions nd holder of n uthoristion to whom such copy is sent shll not py, or cuse to be pid on his behlf, fter the dte specified in the notice, commission pyments t level hiher thn specified in tht behlf in the notice.
(2) person—
( ) to whom there is sent notice under subsection (1) nd who pys, or cuses to be pid on his behlf, commission pyments t level hiher thn specified in tht behlf in the notice, or
( b ) who contrvenes subsection (1) (c),
shll be uilty of n offence.
( 3 ) ( ) The Minister my nnul notice under subsection (1) sent to the holder of n uthoristion by sendin notice to the holder sttin tht the notice under subsection (1) is nnulled from specified dte, nd where notice under this subsection is sent to the holder of n uthoristion, the notice under subsection (1) to which it reltes shll cese to hve effect on the dy specified for tht purpose in the notice under this subsection.
( b ) Where the Minister sends notice under this subsection to the holder of n uthoristion, he shll t the sme time send copy of the notice to ll other holders of uthoristions.
( c ) References in subsection (2) nd in the subsequent sections of this ct to notice under subsection (1) or to notice under this section re references to notice under the sid subsection (1) tht is for the time bein in force.
(4) Where the Minister sends notice under this section to ny person, he shll, s soon s my be, cuse notice of nd prticulrs of the notice to be published in t lest one dily newspper circultin throuhout the Stte.
Prohibition of certin commission pyments.
38. —Whenever the Minister considers it necessry in the public interest he my provide by order tht the holder of n uthoristion shll not—
( ) py commission pyments in the form of ny benefit in kind or in the form of ny lon of money mde by the holder to n intermediry, or mde on the holder\'s behlf by nother person to n intermediry;
( b ) subject to such exceptions nd conditions s my be specified in the order, py to, or credit to the ccount of, n insurnce intermediry commission pyment in respect of policy of insurnce until the premium to which the commission pyment reltes is received by the holder or the intermediry on behlf of the holder, s the cse my be.
Revoction of uthoristion.
39. —(1) Where person who is the holder of n uthoristion in respect of non-life insurnce is convicted of n offence under section 37 or 38 nd, either, the person does not ppel inst the conviction or the conviction is ffirmed on ppel, the conviction shll be round for the revoction by the Minister of the uthoristion nd, ccordinly, the Minister my revoke the sid uthoristion in ccordnce with the provisions of rticle 23 of the Reultions of 1976, s if—
( ) the followin prrph were inserted in sub-rticle (1) of the sid rticle 23 fter prrph ():
"( ) ws convicted of n offence under section 37 or 38 of the Insurnce ct, 1989 , nd, either, the holder did not ppel inst the conviction or the conviction ws ffirmed on ppel",
nd
( b ) the followin were inserted fter "revoked" in sub-rticle (3) ( ) of the sid rticle 23:
"if the undertkin ws convicted of n offence under section 37 or 38 of the Insurnce ct, 1989 , nd, either, the holder did not ppel inst the conviction or the conviction ws ffirmed on ppel, or".
(2) Where person who is the holder of n uthoristion in respect of life ssurnce is convicted of n offence under section 37 or 38 nd, either, the person does not ppel inst the conviction or the conviction is ffirmed on ppel, the conviction shll be round for the revoction by the Minister of the uthoristion nd, ccordinly, the Minister my revoke the sid uthoristion in ccordnce with the provisions of rticle 25 of the Reultions of 1984, s if—
( ) the followin prrph were inserted in sub-rticle (1) of the sid rticle 25 fter prrph ():
"() ws convicted of n offence under section 37 or 38 of the Insurnce ct, 1989 , nd, either, the holder did not ppel inst the conviction or the conviction ws ffirmed on ppel",
nd
( b ) the followin were inserted fter "revoked" in sub-rticle (3) ( ) of the sid rticle 25:
"if the undertkin ws convicted of n offence under section 37 or 38 of the Insurnce ct, 1989 , nd, either, the holder did not ppel inst the conviction or the conviction ws ffirmed on ppel, or".
(3) The revoction or suspension of n uthoristion under this section shll be subject to the procedures provided for in section 58.
Restriction on dvertisin.
40. —Where person is convicted of n offence under section 37 or 38 nd, either, the person does not ppel inst the conviction or the conviction is ffirmed on ppel, he shll not publish, or cuse to be published, n dvertisement in reltion to the insurnce business of the person convicted unless the commission pyments of the person in connection with such business re not hiher thn the levels specified in reltion to pyments of those kinds in the notice under section 37 to which the conviction relted nd the pyments mde to intermediries re in ccordnce with section 38.
Offences committed by intermediries.
41. —(1) Subject to subsection (2), where—
( ) n insurnce intermediry ccepts commission pyment,
(i) from person who hs been sent notice under section 37 or copy of such notice, or from person ctin on behlf of such person, nd
(ii) the pyment is hiher thn the level specified in reltion to such pyments under the notice, nd
(iii) the pyment is mde fter the dte specified in the notice, or
( b ) n insurnce intermediry ccepts commission pyment contrvenin section 38,
the intermediry shll be uilty of n offence.
(2) In prosecution for n offence under this section, it shll be defence for the defendnt to show tht he did not know, nd could not resonbly be expected to hve known, tht the commission pyment concerned ws—
( ) hiher thn the level specified in reltion to pyment of tht kind in the notice concerned under section 37 nd tht, upon its becomin known to him, he returned the excess of the commission pyment concerned to the person who mde it, or
( b ) in contrvention of section 38 nd tht, upon its becomin known to him, he returned the commission pyment concerned to the person who mde it.
Certin policies of life ssurnce voidble.
42. —Where—
( ) holder of n uthoristion in respect of life ssurnce is convicted of n offence under section 37 in reltion to commission pyments specified in notice under tht section, or is convicted of n offence under section 38, nd
( b ) either, he does not ppel inst the conviction or the conviction is ffirmed on ppel, nd
( c ) the commission pyment to which the offence relted ws in respect of the effectin of contrct of ssurnce upon humn life between the person convicted nd nother person,
ny person who is prty to contrct of ssurnce upon humn life which ws effected with the holder, nd in respect of which commission pyment ws pid by the holder, or by person ctin on behlf of the holder, to n insurnce intermediry hiher thn the level specified in reltion to pyment of tht kind in the notice foresid, or in respect of which commission pyment ws mde in contrvention of section 38 my, within one month from the dte of the conviction, by notice in writin sent by post to the holder, void the contrct, nd, thereupon, the contrct shll be void nd ny moneys pid by the person on foot of the contrct toether with interest thereon t such rte s my be fixed by the Minister by reultions under this section, my be recovered by him from the holder s simple contrct debt in ny court of competent jurisdiction.
Furnishin of informtion to the Minister.
43. —The Minister my by notice in writin sent to the holder of n uthoristion require the holder to furnish to him, within such time (not bein less thn 21 dys from the dte of the sendin of the notice) s my be specified in the notice, such informtion s my be specified in the notice in reltion to the commission pyments of the holder.
PRT IV REULTION OF INSURNCE INTERMEDIRIES
Brokers\' qulifictions.
44. —(1) person shll not ct s, or hold himself out to be n insurnce broker unless—
( ) he is member of representtive body of insurnce brokers which requires complince with the provisions of this ct s condition of membership, nd tht body is reconised s such by the Minister, nd he otherwise complies with the provisions of this ct, or, not bein member of reconised representtive body, he complies with the provisions of this ct, nd
( b ) he is in position—
(i) in the cse of non-life insurnce, to rrne insurnce contrcts on behlf of his clients with t lest five undertkins, or
(ii) in the cse of life insurnce, to rrne insurnce contrcts on behlf of his clients with t lest five undertkins.
(2) person shll not ct s or hold himself out to be n insurnce broker unless he holds n ppointment in writin from ech undertkin for which he is n intermediry.
Intermediries\' indemnity insurnce.
45. —The Minister my, by reultions, provide tht person shll not ct s or hold himself out to be n insurnce broker or n insurnce ent unless he effects policy of professionl indemnity insurnce in specified form, indemnifyin him to such sum, in such mnner, in respect of such mtters nd vlid for such minimum period s the Minister my prescribe, from time to time, under this section.
Insurnce intermediries ppointment nd commission pyments.
46. —(1) n undertkin shll not ppoint person s n insurnce intermediry unless, to the best of the undertkin\'s knowlede nd belief, hvin cused resonble enquiry to be mde he is either—
( ) member of representtive body of insurnce brokers reconised by the Minister for the purposes of section 44 (1) (), or
( b ) person who complies with the requirements of this ct but is not member of reconised representtive body.
(2) n undertkin shll not py ny commission pyment other thn to n insurnce intermediry who, to the best of the undertkin\'s knowlede nd belief, hvin cused resonble enquiry to be mde, is either—
( ) member of representtive body of insurnce brokers reconised by the Minister for the purposes of section 44 (1) (), or
( b ) person who complies with the provisions of this ct but is not member of reconised representtive body.
(3) No insurnce intermediry or employee of n undertkin shll py ny commission pyment other thn to n insurnce intermediry who complies with this ct, sve where commission pyment is mde by n insurnce intermediry to person in connection with policy of insurnce plced with n undertkin by the sid intermediry.
(4) "Commission pyment" in subsection (3) hs the menin iven to it in section 2 (3) s if the words "holder of n uthoristion" in tht definition referred to n insurnce intermediry.
Insurnce bond required by intermediry.
47. —(1) If, t ny time in the first ccountin yer, the rete I of moneys loded by n insurnce intermediry to the seprte bnk ccounts required under section 48 exceeds ￡25,000, the intermediry shll effect bond in specified form, s respects his insurnce business, to the vlue of ￡25,000 in respect of the reminder of the first ccountin yer.
(2) Subject to subsection (4), n insurnce intermediry shll hold bond in specified form—
( ) s respects his non-fife insurnce business, to the vlue of ￡25,000, nd
( b ) s respects his life ssurnce business, to the vlue of ￡25,000 or 25 per cent. of life ssurnce turnover, whichever is the reter, by reference to the previous ccountin yer.
(3) The requirement in subsection (2) for n insurnce intermediry to hold bond shll be rerded s hvin been dischred where the insurnce intermediry holds bond to the vlue of ￡25,000 or 25 per cent. of life ssurnce turnover, whichever is the reter, by reference to the previous ccountin yer.
(4) Subsection (2) shll not pply to n insurnce intermediry if his turnover does not exceed ￡25,000 by reference to the previous ccountin yer nd does not exceed ￡25,000 in ny subsequent ccountin yer.
(5) The bond referred to in this section shll provide tht in the event of the insurnce intermediry\'s inbility or filure to meet his finncil oblitions in reltion to ny sums of money received by him from, or on behlf of his clients, sum of money will become vilble to person nominted or pproved of by the Minister, to be pplied for the benefit of ny client of the intermediry who hs incurred loss or libility becuse of the inbility or filure of the insurnce intermediry to meet such finncil oblitions.
(6) The person nominted or pproved of by the Minister shll, with the consent of the Minister nd up to such sum s my be specified by the Minister, be indemnified out of the proceeds of the bond in respect of such resonble expenses s re incurred in crryin out the functions provided for in subsection (5).
(7) The person nominted or pproved of by the Minister shll keep ll proper nd usul ccounts, includin n income nd expenditure ccount nd blnce sheet, of ll moneys received by him on foot of bond nd of ll disbursements mde by him from ny such moneys nd of ny mounts in respect of the expenses referred to in subsection (6).
(8) The Minister my, by reultions, provide tht—
( ) rrnements in reltion to the bond shll be entered into only with persons of clss or clsses specified in the reultions,
( b ) the bond shll be in such form nd vlid for such minimum period s my be specified in the reultions,
( c ) copy of the bond shll be displyed, for the informtion of the public, in prominent position in ll premises occupied by n insurnce intermediry nd in which he crries on business s insurnce intermediry, nd the bond shll be mentioned in his sles literture nd business note pper.
(9) ny mount or percente rte in subsections (2), (3) nd (4) my be ltered s the Minister my from time to time prescribe nd different mounts nd percentes my be prescribed for different clsses of intermediry by reference to turnover or to such other mtters s the Minister my consider pproprite.
(10) For the purposes of this section—
"ccountin yer" mens the yer commencin on the dte of comin into force of subsection (1) of this section nd subsequent nniversry ccountin yers;
"turnover" mens the rete of ll moneys required to be pid by n intermediry into the seprte bnk ccounts required under section 48 (1) () nd 48 (1) (b);
"life ssurnce turnover" mens the rete of ll moneys required to be pid by n intermediry into the seprte bnk ccount required under section 48 (1) (b).
Keepin of seprte bnk ccounts.
48. —(1) n insurnce intermediry shll keep seprte bnk ccount for ech of the followin clsses of business—
( ) n ccount in connection with premiums pyble to insurers under contrcts of non-life insurnce, or money pid or pyble to policyholders by undertkins uthorised under the Reultions of 1976;
( b ) n ccount in connection with premiums pyble to insurers under contrcts of life ssurnce, or money pid or pyble to policyholders by undertkins uthorised under the Reultions of 1984, nd
(i) ll moneys, other thn commission pyments nd service chres, received by him in connection with either such clss of business shll be pid into the pproprite ccount, nd
(ii) neither the Stte nor ny person shll hve or obtin ny recourse or riht inst money stndin to the credit of such ccount or ccounts in respect of clim or riht inst n insurnce intermediry until ll proper clims inst these moneys hve been stisfied.
(2) The ccount to be kept—
( ) under subsection (1) () shll be desinted in ll finncil records mintined by the intermediry s "section 48—Non-life insurnce ccount",
( b ) under subsection (1) (b) shll be desinted in ll finncil records mintined by the intermediry s "section 48—Life ssurnce ccount",
(3) This section shll not pply s respects tied insurnce ent insofr s moneys received by him in connection with premiums pyble to undertkins under contrcts of insurnce or moneys pyble to policyholders by undertkins, relte to tied ency reement or rrnement entered into by the tied insurnce ent.
(4) For the purposes of this section—
"service chre" mens n mount pyble, or pyble in certin circumstnces, by client to n intermediry in respect of his services in reltion to contrcts of insurnce but does not include ny premium or prt thereof pyble to n undertkin;
"tied ency reement or rrnement" hs the menin ssined to it in section 51;
"tied insurnce ent hs the menin ssined to it in section 51.
Insurnce ents\' qulifictions.
49. —(1) No person shll ct s, or hold himself out to be n insurnce ent unless—
( ) he holds n ppointment in writin from ech undertkin for which he is n ent,
( b ) he sttes on his letter hedins nd business forms tht he is n insurnce ent nd the nme or nmes of every undertkin for which he is n ent, nd
( c ) he informs ny proposer of n insurnce contrct tht he is n insurnce ent nd of the nme or nmes of the undertkins for which he is n ent.
(2) Subject to subsection (3), n insurnce ent shll hold—
( ) in the cse of non-life insurnce, n ppointment in writin from not more thn four undertkins uthorised under the Reultions of 1976,
( b ) in the cse of life insurnce, n ppointment in writin from not more thn four undertkins uthorised under the Reultions of 1984.
(3) The provisions of subsection (2) shll come into force on such dte s the Minister prescribes not bein less thn two yers fter the commencement of this section.
(4) tied insurnce ent shll:
( ) stte on his letter hedins nd business forms tht he is tied insurnce ent nd the nme or nmes of every undertkin for which he is tied insurnce ent,
( b ) inform ny proposer of n insurnce contrct tht he is tied insurnce ent nd the nme or nmes of every undertkin for which he is tied insurnce ent, provided lwys tht the insurnce contrct in question is of type which is subject to tied ency reement or rrnement entered into by the sid tied insurnce ent.
(5) tied insurnce ent shll not ct in reltion to contrcts of insurnce offered or issued by ny other undertkin uthorised under the sme Reultions s the undertkin with whom the tied insurnce ent hs entered into tied ency reement or rrnement.
(6) For the purposes of this section—
"Reultions" mens the Reultions of 1976 or the Reultions of 1984, s the cse my be;
"tied insurnce ent nd "tied insurnce reement or rrnement hve the menins ssined to them, respectively, in section 51.
Reister of insurnce intermediries.
50. —Every undertkin shll keep reister of ll its ppointed insurnce intermediries t its principl office in the Stte. The sid reister of ppointed insurnce intermediries shll be open to public inspection t resonble times durin norml workin hours.
Provisions rerdin scope of ency.
51. —(1) n insurnce ent shll be deemed to be ctin s the ent of the undertkin to whom proposl for insurnce is bein mde when, for the purpose of the formtion of the insurnce contrct, he completes in his own hnd or helps the proposer of n insurnce policy to complete proposl for insurnce. In such circumstnces only, the insurer shll be responsible for ny errors or omissions in the completed proposl.
(2) n undertkin shll be responsible for ny ct or omission of its tied insurnce ent in respect of ny mtter pertinin to contrct of insurnce offered or issued by tht undertkin, s if the tied insurnce ent ws n employee of tht undertkin.
(3) In this section—
"tied insurnce ent mens ny person who enters into n reement or rrnement with n undertkin whereby tht person undertkes to refer ll proposls of insurnce to the undertkin with whom he hs mde or entered into the reement or rrnement, or ny person who enters into n reement or rrnement with n undertkin which restricts in ny wy tht person\'s freedom to refer proposls of insurnce to n undertkin other thn the undertkin with whom the reement or rrnement hs been mde or entered into;
"tied ency reement or rrnement" mens n reement or rrnement of the type described in this section.
(4) Nothin in this section shll render n insurnce ent or tied insurnce ent responsible for ny flse sttements supplied to him by the proposer of n insurnce policy or for ny informtion withheld by the proposer from such ent.
cceptnce by intermediry of insurnce proposls. 52. —(1) n insurnce intermediry shll not ccept money from client—
( ) in respect of proposl unless it is ccompnied by the completed proposl or the proposl hs been ccepted by the undertkin, or
( b ) n respect of renewl of policy of insurnce unless it hs been invited by the undertkin.
(2) The Minister my prescribe ny ltertions or dditions to the circumstnces in which n intermediry my ccept money from client under subsection (1).
( 3 ) ( ) Where n insurnce intermediry ccepts from client completed insurnce proposl, whether or not ccompnied by sum of money, with view to effectin with n undertkin policy of insurnce, or
( b ) where n insurnce intermediry ccepts money from client in respect of renewl of policy of insurnce which hs been invited by the insurer or in respect of proposl ccepted by n undertkin,
he shll serve on the client document sttin tht it is issued in pursunce of this section nd specifyin—
(i) the nme nd ddress of the client;
(ii) the mount of the sid sum if ny nd the dte of its receipt by the intermediry;
(iii) the proposl, renewl or proposl ccepted by n undertkin in respect of which such sum ws pid;
(iv) the undertkin with which the policy is to be effected or renewed or by whom the proposl hs been ccepted.
(4) The document to be issued by intermediries in cse to which subsection (3) () pplies shll lso specify tht such cceptnce by the intermediry does not itself constitute the effectin of policy of insurnce.
(5) Subsections (3) nd (4) shll not pply where the intermediry, hvin uthority to do so, issues to the client policy of insurnce with the undertkin.
(6) The Minister my prescribe ny ltertions or dditions to the mtters to be specified in documents required to be issued by intermediries under subsections (3) nd (4).
(7) document purportin to be document to which subsection (3) or subsection (4) pplies shll, without further proof, be evidence of the mtters specified therein unless the contrry is proved.
Tretment of premiums pid to intermediries.
53. —(1) Where premium is pid to n insurnce intermediry in respect of renewl of policy which hs been invited by n undertkin, or in respect of proposl ccepted by n undertkin, the premium shll be treted s hvin been pid to the undertkin when it is pid to the insurnce intermediry.
(2) Nothin in this section shll render n undertkin lible for premium pid to n intermediry in respect of proposl ccepted by n undertkin or renewl of policy which hs been invited by the undertkin, where the undertkin hs iven resonble notice in writin to the person whose proposl hs been ccepted or whose policy is bein renewed, tht the sid intermediry hs no uthority to collect such premiums on behlf of the undertkin.
Restriction on intermediries convicted of offence.
54. —n insurnce intermediry who is convicted of n offence risin out of or connected with the performnce of his functions s n insurnce intermediry shll not, without the permission of the Court, crry on the business of insurnce intermediry in the Stte or ene or uthorise nother insurnce intermediry to ct s such on his behlf.
Disqulifiction of certin persons from ctin s intermediries.
55. — person shll not, without the permission of the Court, ct s or hold himself out to be n insurnce intermediry if—
( ) he is djuded bnkrupt, or
( b ) he mkes composition or rrnement with his creditors, or
( c ) bein n insurnce intermediry, he fils to meet his finncil or lel oblitions in reltion to ny sum of money received by him from or on behlf of client, or
( d ) he is convicted of n offence involvin frud or dishonesty, whether in connection with insurnce or not, or
( e ) he is or ws director of ny compny involved in insurnce which hs been wound up by the Court or by mens of creditors\' voluntry windin up, or
( f ) he is the subject of n order under section 184 of the Compnies ct, 1963 .[]
Codes of conduct.
56. —The Minister my by order prescribe codes of conduct to be observed by insurnce brokers or insurnce ents in the Stte. ny such order my, in prticulr, specify the prctices to be followed by brokers or ents in their delins with their clients or undertkins or with other persons.
Scope of Prt IV.
57. —(1) This Prt shll not pply to—
( ) contrcts of reinsurnce or to insurnce intermediries ened solely in reltion to the business of effectin contrcts of reinsurnce;
( b ) trvel ents nd tour opertors licensed under the Trnsport (Tour Opertors nd Trvel ents) ct, 1982 , insofr s they re ened in the plcin of trvel insurnce or. tourin ssistnce contrcts s prt of, or in conjunction with, n overses trvel contrct.
(2) In this section "trvel ent", "tour opertor" nd "overses trvel contrct" hve the menins ssined to them respectively under section 2 (1) of the Trnsport (Tour Opertors nd Trvel ents) ct, 1982 .
PRT V MISCELLNEOUS
ppel inst suspension or revoction of uthoristion.
58. —(1) Where the Minister proposes to suspend or revoke n uthoristion under section 21 he shll notify the undertkin concerned in writin of such proposed suspension or revoction.
(2) decision by the Minister to suspend or revoke n uthoristion under this ct shll be notified in writin to the undertkin ffected toether with the resons for the suspension or revoction of the uthoristion.
(3) Where n uthoristion is suspended or revoked under the provisions of this ct the Minister shll notify the suspension or revoction to the supervisory uthorities of ny other Member Stte of the Europen Communities in which the undertkin crries on business.
(4) Where n undertkin hs its hed office in nother Member Stte the Minister shll not revoke the uthoristion of the undertkin without first consultin the supervisory uthority of the Member Stte in which the hed office is situted. The Minister my, however, suspend the uthoristion of the undertkin in the Stte before such consulttion is concluded nd shll in such cse notify the supervisory uthority of the Member Stte where the hed office is situted.
(5) The Minister my terminte the suspension of n uthoristion t ny time by notifyin the undertkin tht its uthoristion hs been restored.
(6) n undertkin my ppel to the Court inst decision of the Minister to suspend or revoke n uthoristion.
(7) The whole or prt of n ppel under this section my be herd in chmbers.
(8) Nothin in this ct in rerd to the suspension or revoction of n uthoristion shll ffect the vlidity or due continunce nd fulfilment of ny contrct of insurnce effected before the suspension or revoction of the uthoristion.
ppointment of uthorised officers.
59. —(1) The Minister my ppoint such nd so mny of his officers s he thinks fit to be uthorised officers for the purposes of the Insurnce cts.
(2) Every uthorised officer shll be furnished with wrrnt of his ppointment s n uthorised officer, nd, when exercisin ny power conferred on n uthorised officer by section 60, shll, if requested by ny person ffected, produce the wrrnt to tht person.
Powers of uthorised officers.
60. —(1) n uthorised officer my, for the purpose of obtinin ny informtion which the Minister my require for enblin him to exercise his functions under the Insurnce cts, do ny one or more of the followin thins—
( ) enter t ll resonble times ny premises in which he hs resonble rounds for believin tht there re ny books, documents or records reltin to the issue of ny policy, bond, certificte or other instrument of insurnce, or to the cceptnce of ny premium in respect of policy, bond, certificte or other instrument of insurnce,
( b ) require ny person employed in the premises to produce to him ny books, documents or records which re in such person\'s control, possession or procurement nd which such officer hs resonble rounds for believin to be records, books or documents reltin to the issue of ny policy, bond, certificte or other instrument, nd to ive him such informtion s he my resonbly require in rerd to ny entries in ny such records, books or documents,
( c ) inspect ny book, record or other document produced in pursunce of requirement under the Insurnce cts nd, if he thinks fit, copy ny entry in such record, book or document.
(2) person who obstructs or impedes n uthorised officer in the exercise of power or does not comply with requirement under this section shll be uilty of n offence.
Codes of conduct on duty of disclosure nd wrrnties.
61. —Where the Minister considers it necessry in the public interest nd followin consulttion with the insurnce industry nd consumer representtives, he my by order prescribe codes of conduct to be observed by undertkins in their delins with proposers of policies of insurnce nd policyholders renewin policies of insurnce in respect of duty of disclosure nd wrrnties.
Section 9