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S.I. No. 359/1994 - European Communities (Non-Life Insurance) Framework Regulations, 1994.

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  2. s)or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile Statutory InstrumentsIonstraimí Reachtúla 1994 S.I. No. 359/1994 - European Communities (Non-Life Insurance) Framework Regulations, 1994. S.I. No. 359/1994 - European Communities (Non-Life Insurance) Framework Regulations, 1994. AmendmentsLeasuithe S.I. No. 359

  1. EUROPEAN COMMUNITIES (NON-LIFE INSURANCE) FRAMEWORK REGULATIONS,
  2. ARRANGEMENT

REGULATIONS PART I Citation and Commencement, Interpretation, Scope and Taking up the Business

Non-Life Insurance Articles

  1. Citation and commencement.
  2. Interpretation.
  3. Technical adjustments.
  4. Scope.
  5. Powers

Court.

  1. Authorisations.
  2. Conditions when applying for authorisations.
  3. Notification

conditions and documents. 9. Identities

shareholders. PART 2 Financial Supervision, Assignment

Policies, Technical Reserves Provisions, Solvency Margin, Valuation

Assets, Register

Assets, Discounting, Related Company, Failure to Comply with Technical Reserves Provisions, Withdrawal/Lapse

Authorisation 10. Financial supervision

insurance undertaking.

  1. On the spot verification.
  2. Assignment

policies. 13. Technical reserves provisions/solvency margin/valuation

assets/register

assets.

  1. Discounting.
  2. Transactions with a related company.
  3. Failure to comply with technical reserves provisions.
  4. Withdrawal/lapse

authorisation. 18. Provisions applying on withdrawal/lapse

authorisation. 19. Notification

reasons for revocation. PART 3 Qualifying Holdings, Amendment to European Communities (Non-Life Insurance) (Amendment) Regulations, 1991, Obligation

Professional Secrecy/Exchanges

Confidential Information

  1. Qualifying holdings.
  2. Amendment to European Communities (non-life insurance) Amendment Regulations,
  3. Obligations

professional secrecy/exchanges

confidential information. PART 4 Choice

Law, General Good Requirements, Notification

Documents, Compulsory Insurance, Policyholder Disclosure

  1. Law applicable to insurance contracts.
  2. General good requirements.
  3. Notification

documents/scales

premiums.

  1. Compulsory insurance.
  2. Policyholder disclosure rules. PART 5 Right

Establishment, Freedom to Provide Services, Motor Insurance Business, General Conditions, Prevention

Irregularities 28. Provisions related to right

establishment

a Branch outside the State.

  1. Amendment to Branch information.
  2. Conditions for establishing a Branch in the State.
  3. Amendment to Branch information.
  4. Conditions for carrying on insurance business by way

services into another Member State. 33. Conditions for carrying on insurance business by way

services into the State.

  1. Provisions related to third party motor liability insurance.
  2. Amendment to services information.
  3. General conditions related to services and branch insurance business.
  4. Prevention

irregularities. PART 6 Advertising, Winding-up, Statistical Requirements

  1. Advertising.
  2. Winding-up.
  3. Statistical information.
  4. Statistical requirements regarding services and branch insurance business. PART 7 Guarantee Schemes, Fiscal Arrangements, Acquired Rights, Right

Appeal

  1. Obligation to join guarantee schemes.
  2. Fiscal arrangements.
  3. Acquired rights.
  4. Application

Regulations to branch under Article 44. 46. Right

appeal to Court. PART 8 Provisions Related to Branches

Third Country Insurance Undertakings, Rules Applicable to the Assignment

Third Country Branch Policies, Rules Applicable to Health Insurance, Sections 93 and 94

the Insurance Act, 1936 , Penalties, Fees

  1. Third country branch provisions.
  2. Application for authorisation.
  3. Conditions

admission.

  1. Technical reserves.
  2. Solvency margin.
  3. Guarantee Fund.
  4. Annual returns.
  5. Application

Articles 16 and

  1. Advantages under Article 26

the First Directive/Application

Article 26(2), (3) and (4).

56. Assignment

third country branch policies.

  1. Health Insurance provisions.
  2. Interpretation

Sections 93 and 94

the Insurance Act,

  1. Penalties.
  2. Fees. ANNEXES Annex I Defined classes

insurance. Annex II Solvency margin and guarantee fund. Annex III Valuation

assets. Annex IV Matching rules. SCHEDULES Schedule 1 Value

dependants. (Part 1) Supplementary amount. (Part 2) Further provisions related to the value

dependants. Schedule 2 (Parts I to IV) Assets to be taken into account only to a specified extent. S.I. No. 359

  1. EUROPEAN COMMUNITIES (NON-LIFE INSURANCE) FRAMEWORK REGULATIONS
  2. I, CHARLIE McCREEVY, Minister for Enterprise and Employment, in exercise

the powers conferred on me by section 3

the European Communities Act, 1972 (No. 27

1972), as amended by the European Communities (Amendment) Act, 1993 (No. 25

1993), and for the purpose

giving effect to Council Directive No. 73/239/EEC

24 July, 1973, Council Directive No. 88/357/EEC

22 June, 1988, Council Directive No. 90/618/EEC

8 November, 1990, and Council Directive No. 92/49/EEC

18 June, 1992, hereby make the following Regulations: PART 1 Citation and Commencement, Interpretation, Scope and Taking up the Business

Non-Life Insurance 1 Citation and Commencement. 1.

(1)These Regulations may be cited as the European Communities (Non-Life Insurance) Framework Regulations, 1994, and shall come into operation on the 8th day

December, 1994. However, the provisions

these Regulations affecting the annual returns to be made to the Minister in accordance with Article 13

(11)

these Regulations shall apply in respect

every financial year beginning on or after the 1st day

January, 1995.

(2)These Regulations and the Insurance Acts, 1909 to 1990, Regulations relating to insurance business made under those Acts and Regulations made under the European Communities Act, 1972 , may be cited together as the Insurance Acts and Regulations and shall be construed together as one. 2 Interpretation. 2.
(1)In these Regulations, except where the context otherwise requires,— "authorisation" means— ( a ) authorisation granted by the Minister under these Regulations or under the Regulations

1976 or the Regulations

1991 and still in force, or, ( b ) where the context otherwise requires, authorisation granted by the authority charged by law with the duty

supervising the activities

insurance undertakings in a Member State other than the State in accordance with Article 6

the First Directive as inserted by Article 4

the Directive. "branch" means an agency or branch

an insurance undertaking or any permanent presence

an undertaking in the State even if that presence does not take the form

an agency or branch but consists merely

an

fice managed by the insurance undertaking's own staff or by a person who is independent but has permanent authority to act for the insurance undertaking in the same way as an agency; "carrying on insurance business by way

establishment" means the covering

a risk by an insurance undertaking in a Member State through a head

fice or branch situated in that State; "carrying on insurance business by way

services" means the covering

a risk by an insurance undertaking in a Member State through a head

fice or branch situated in another Member State; "the Court" means the High Court; " the Directive" means EEC Council Directive 92/49/EEC

(1); "the First Directive" means EEC Council Directive 73/239/EEC
(2); "the general good" shall be construed in accordance with Article 24

these Regulations; "home Member State" means the Member State in which the head

fice

the insurance undertaking covering a risk is situated; "insurance undertaking" means—

(1)O.J. L228, 11.8.1992, page 1.
(2)O.J. L228, 16.8.1973, page 3. ( a ) for the purpose

carrying on insurance business in the State by way

establishment: the holder

an authorisation under these Regulations or, as the case may be, under Article 6

the first Directive as inserted by Article 4

the Directive or the holder

an authorisation under Article 23

the First Directive; ( b ) for the purpose

carrying on insurance business by way

services, the holder

an authorisation under these Regulations or, as the case may be, under Article 6

the First Directive as inserted by Article 4

the Directive; "Member State" means a Member State

the European Communities; "Member State

the branch" means the Member State in which the branch covering a risk is situated; "Member State

the provision

services" means the Member State in which a risk is situated where it is covered by an insurance undertaking or a branch situated in another Member State; "Member State where the risk is situated" means— ( a ) the Member State in which the property is situated, where the insurance relates either to buildings or buildings and their contents, in so far as the contents are covered by the same insurance policy, ( b ) the Member State

registration, where the insurance relates to vehicles

any type, ( c ) the Member State where the policyholder took out the policy in the case

policies

a duration

four months or less covering travel or holiday risks, whatever the class concerned, ( d ) the Member State where the policyholder has his habitual residence or, if the policyholder is a legal person, the Member State where the latter's establishment, to which the contract relates, is situated, in all cases not explicitly covered by the foregoing subparagraphs; "non-life insurance" has the meaning assigned by Article 4

these Regulations; "the Regulations

1976" means the European Communities (Non-Life Insurance) Regulations, 1976 ( S.I. No. 115

1976 ); "the Regulations

1991" means the European Communities (Non-Life Insurance) (Amendment) (No. 2) Regulations, 1991 ( S.I. No. 142

1991 ); "the Second Directive" means EEC Council Directive 88/357/EEC

(3).
(3)O.J. L172, 4.7.1998, page 1.
(2)In these Regulations a reference to any enactment, Council Directive, order or Regulation includes reference thereto as subsequently amended.
(3)Subject to these Regulations, the provisions

the Insurance Acts and Regulations shall, where applicable and subject to any necessary modifications, apply to all insurance undertakings to which these Regulations relate.

(4)These Regulations shall have effect, any provision to the contrary in any enactment, order

Regulation passed or made before the making

these Regulations notwithstanding. 3 Technical Adjustments. 3.

(1)The Minister may by direction give effect to any technical adjustment adopted in accordance with Article 51

the Directive subject to such conditions as may be specified from time to time by the Minister.

(2)The Minister may issue a direction in writing modifying any requirement

these Regulations or

the Annexes or Schedules in the special circumstances

the case, provided that the direction does not conflict with any provision

the First Directive, the Second Directive or the Directive, or Council Directive 90/618/EEC

8 November, 1990 (O.J. No. L 330, 29.11.1990, p. 44). 4 Scope. 4.

(1)Subject to sub-article
(2)

this Article, these Regulations apply to insurance business ("non-life insurance")

the classes specified in Part A

Annex I to these Regulations and to undertakings carrying on such insurance.

(2)These Regulations do not apply to— ( a ) the kinds

insurance specified in paragraph 1

Article 2

the First Directive, ( b ) the operations specified in paragraph 2

Article 2

the First Directive, ( c ) mutual associations excluded from the application

the First Directive by Article 3 thereof. 5 Powers

Court. 5. The Court shall have full jurisdiction to deal with any application, appeal or other proceedings before the Court in accordance with any provision

these Regulations and may for this purpose make any interim, interlocutory, mandatory, prohibitory or injunctive or ancillary order as the Court may consider necessary or appropriate for the purposes

these Regulations. 6 Authorisations. 6.

(1)An insurance undertaking shall not carry on the business

non-life insurance unless it is the holder

an authorisation.

(2)An authorisation shall be valid throughout the Member States and shall allow an undertaking to carry on insurance business there by way

services and by way

establishment.

(3)For the purposes

the Insurance Acts and Regulations, an insurance undertaking shall be deemed to be or to have been established in the State if— ( a ) it has in the State an

fice which is open during normal business hours for the transaction

the business for which it is authorised, and ( b ) it employs at such

fice persons duly qualified to carry on the business transacted and empowered to issue cover for the authorised classes and to settle claims.

(4)An insurance undertaking with its head

fice outside the territories

the Member States may, notwithstanding anything to the contrary in the Insurance Acts and Regulations, carry on insurance business by way

services into the State in the following classes

Annex I to these Regulations, namely, 4, 5, 6, 7, 11 and 12 and in classes 1 and 10 insofar as they relate to the insurance

passengers in marine and aviation vehicles and carrier's liability respectively— provided that ( a ) where the business is to be written by a branch

the insurance undertaking situated within the territories

the Member States, the insurance undertaking demonstrates compliance with the solvency margin requirements

Article 25

the First Directive and provides satisfactory evidence that the branch is authorised to write business in the above-mentioned classes, ( b ) where the business is to be written by an insurance undertaking with no establishment within the territories

the Member States a statement is produced from the supervisory authorities

the State in which the head

fice

the insurance undertaking is situated attesting that the insurance undertaking complies with the solvency requirements in that State and is authorised to underwrite risks covered by the classes mentioned above, ( c ) in the case

the insurance undertakings mentioned in paragraphs (a) and (b)

this sub-article, the nature

risks it is proposed to cover by way

services shall be disclosed in addition to the information required by those paragraphs.

(5)Where the Minister is satisfied that an undertaking, applying for an authorisation, complies with the appropriate provisions

the Insurance Acts and Regulations, the Minister shall grant that undertaking an authorisation.

(6)An application for an authorisation may be made to the Minister by— ( a ) any undertaking which has established its head

fice in the State, ( b ) any insurance undertaking which is the holder

an authorisation related to a particular class or classes

insurance and which proposes to extend its business to another class or classes

insurance.

(7)An authorisation shall be granted for a class

insurance mentioned at a reference number in Annex I to these Regulations and specified in the Authorisation and shall relate to the entire

that class, except that, where an applicant for an authorisation desires the authorisation to relate only to part

a class as listed in Part A

Annex I to these Regulations, the authorisation shall relate to that part only, but without prejudice to the Minister's powers to require the full guarantee fund relating to the entire class to which such part belongs, as specified in Part B

Annex II to these Regulations.

(8)The Minister may grant authorisation in respect

any group

classes specified in column

(3)

Part D

Annex I to these Regulations in accordance with Part B

that Annex.

(9)An authorisation granted for a particular class or group

classes

insurance shall also be valid for the purpose

covering ancillary risks included in another class if the conditions specified in Part C

Annex I are fulfilled.

(10)An insurance undertaking applying for an authorisation to extend its business to other classes

insurance or to extend an authorisation covering only part

a class as listed in Part A

Annex I to these Regulations shall— ( a ) submit to the Minister a scheme

operations in accordance with the provisions contained in Article 7

(2)(b)

these Regulations in relation to such other classes

insurance or such extension

authorisation, and ( b ) prove to the satisfaction

the Minister that it possesses the solvency margin in accordance with the provisions

Annex II

these Regulations and, where a higher minimum guarantee fund is required, that it possesses such minimum guarantee fund.

(11)The forms

authorisation shall be as specified by the Minister from time to time. 7 Conditions when applying for Authorisation. 7.

(1)Any undertaking applying for an authorisation shall comply with the following provisions: ( a ) It shall be a company limited by shares, a company limited by guarantee or an unlimited company within the meaning (in each case)

the Companies Acts, 1963 to 1990; it may also adopt the form

a European Company (SE) when that has been established. ( b ) An undertaking set up in any public law form may apply for an authorisation provided such body has as its object insurance operations under conditions equivalent to those under which private law insurance undertakings operate.

(2)The undertaking shall also comply with the following provisions: ( a ) It shall limit its operations to the business

insurance and to operations directly arising therefrom, to the exclusion

all other commercial business. ( b ) It shall submit to the Minister a scheme

operations, in accordance with Article 9

the First Directive to include particulars or proof concerning— (i) the nature

the risks which the undertaking proposes to cover; (

  1. ii)the guiding principles as to reinsurance; (iii) the items constituting the minimum guarantee fund; (
  2. iv)estimates

the costs

setting up the administrative services and the organisation for securing business; the financial resources intended to meet those costs and, if the risks to be covered are classified in class 18 in Part A

Annex I to these Regulations, the resources at the insurance undertaking's disposal for the provision

the assistance promised. ( c ) In addition, for the first three financial years it shall submit to the Minister— (i) estimates

management expenses other than installation costs, in particular current general expenses and commissions; (ii) estimates

premiums or contributions and claims; (iii) a forecast balance sheet; (iv) estimates

the financial resources intended to cover its underwriting liabilities and solvency margin. ( d ) It shall possess the minimum guarantee fund in accordance with the provisions

Part B

Annex II to these Regulations. ( e ) It shall be effectively run by persons

good repute with appropriate professional qualifications or experience. 8 Notification

conditions and documents. 8.

(1)Nothing in these Regulations shall prevent the introduction by the Minister

regulations or administrative provisions concerning the approval

the memorandum and articles

association

an insurance undertaking and communication

documents necessary for the normal exercise

supervision.

(2)Notwithstanding sub-article
(1)

this Article, the Minister shall not require the prior approval or systematic notification

general and special policy conditions, scales

premiums, forms and other printed documents which an insurance undertaking intends to use in its dealings with policyholders. The Minister may, however, require notification

such general and special policy conditions, scales

premiums, forms and other aforementioned printed documents.

(3)The Minister may retain or introduce prior notification or approval

proposed increases in premium rates where such notification or approval is operated as part

a general price control system. 9 Identities

shareholders. 9.

(1)The Minister shall not grant an authorisation to an undertaking before being informed

the identities

the shareholders or persons who have qualifying holdings, direct or indirect, in that insurance undertaking and

the amounts

such holdings.

(2)The Minister shall not grant an authorisation if, after taking into account the requirement to ensure the sound and prudent management

an insurance undertaking, the Minister is not satisfied as to the qualifications

the shareholders or members.

(3)The Minister may require information concerning all shareholders irrespective

the size

their holding.

(4)For the purpose

this Article— a "qualifying holding" means a direct or indirect holding in an insurance undertaking which represents10 per cent. or more

the capital or

the voting rights or which makes it possible to exercise a significant influence over the management

the undertaking in which a holding subsists. PART 2 Financial Supervision, Assignment

Policies, Technical Reserves Provisions, Solvency Margin, Valuation

Assets, Register

Assets, Discounting, Related Company, Failure to Comply with Technical Reserves Provisions, Withdrawal or Lapse

Authorisation 10 Conditions governing the financial supervision

insurance business. 10.

(1)The financial supervision

an insurance undertaking, including the carrying on

insurance business either by way

services or through branches, shall be the sole responsibility

the home Member State.

(2)Where the head

fice

the insurance undertaking is situated in the State the Minister shall be responsible for verification with respect to the insurance undertaking's entire business, its state

solvency, the establishment and maintenance

technical reserves and corresponding covering assets in accordance with the Insurance Acts and Regulations.

(3)Every insurance undertaking shall have administrative and accounting procedures and internal control mechanisms which in the opinion

the Minister are sound and adequate. 11 On the spot verification. 11.

(1)Where an insurance undertaking whose head

fice is situated in the State carries on insurance business through a branch situated in another Member State, the Minister may, after having informed the supervisory authorities

the Member State

the branch, be empowered to carry out on-the-spot verification

the information required to ensure the financial supervision

the insurance undertaking.

(2)The supervisory authorities

the Member State

the branch may participate in such verification where the law

the Member State

the branch so allows.

(3)Where an insurance undertaking whose head

fice is situated in another Member State carries on insurance business through a branch situated in the State, the Minister may, after having been informed by the supervisory authorities

that Member State, allow the supervisory authorities

the head

fice Member State to carry out on-the-spot verification

the Information required to ensure the financial supervision

the insurance undertaking.

(4)The Minister may, in order to ensure compliance with this Article, provide for participation in such verification by the appointment

authorised

ficers under the Insurance Acts and Regulations.

(5)The Minister shall take all appropriate measures in order to be satisfied that an insurance undertaking is complying or has the ability to continue to comply with its obligations under the Insurance Acts and regulations and applicable administrative provisions and, in particular, with the scheme

operations referred to in Article 7

(2)(b)

these Regulations.

(6)The Minister may, in addition, seek such information regarding insurance contracts which are effected through or held by intermediaries and any person concerned shall provide such information to the Minister. 12 Assignment

policies. 12.

(1)For the purposes

Section 13

the Assurance Companies Act, 1909, and subject to the provisions

section 36

the Insurance Act, 1989 , and

these Regulations, the following provisions shall have effect: ( a ) An insurance undertaking transacting business in the State, proposing to assign all or part

its portfolio

insurance contracts concluded under the right

establishment or freedom to provide services in the State to an insurance undertaking established in the territory

a Member State, may apply to the Court, by petition, for an Order sanctioning the scheme

assignment. ( b ) An insurance undertaking whose head

fice is situated in the State may, after prior consultation with the Minister, assign all or part

its portfolio

insurance policies including insurance business carried on either by way

services or establishment, to an insurance undertaking established in the State or in another Member State. The assignment shall not be effected unless the supervisory authorities

that insurance undertaking or, where appropriate, the supervisory authorities

the Member State referred to in Article 26

the First Directive, certify that the insurance undertaking possesses the necessary solvency margin after taking the assignment into account. ( c ) Where a branch, established in another Member State, whose head

fice is situated in the State proposes to assign all or part

its portfolio

insurance policies covering insurance business carried on either by way

services or establishment, the Minister shall consult the supervisory authority

the Member State

the branch. ( d ) An insurance undertaking whose head

fice is situated in the State may not assign all or part

its portfolio

insurance policies to an undertaking, established in another Member State, whose head

fice is not situated in the territory

a Member State.

(2)( a ) In the cases referred to in paragraphs (b) and (c)

sub-article

(1)

this Article, the assignment shall not be effected without obtaining the agreement

the supervisory authorities

the Member States

the branch and the supervisory authorities

the Member States in which the risks are situated. ( b ) Where the supervisory authorities have not given a response indicating consent to or an opinion on the proposed assignment within three months

receiving notification

the assignment, the assignment shall be deemed to be agreed.

(3)Where the Minister is consulted in accordance with Article 12
(3)or
(4)

the Directive, the Minister shall have a period

three months from the date

consultation by the supervisory authorities

the home Member State within which to issue a response to those authorities.

(4)Where the Minister has not given a response indicating consent to or an opinion on the proposed assignment at the expiry

the period referred to in sub-article

(3)

this Article, the assignment shall be deemed to be agreed.

(5)An assignment effected in accordance with this Article shall be published subject to the provisions

sub-article

(1)

this Article by advertisement once in Iris Oifigiúil and once in each

two daily newspapers published in the State and published in the Member State where the risk is situated in accordance with the law

that Member State.

(6)An assignment effected in accordance with this Article shall be valid against the policyholders, the insured persons and any other person having rights and obligations arising out

the policies assigned. 13 Technical reserves provisions, solvency margin, valuation

assets, Register

assets. 13.

(1)Each insurance undertaking shall establish and maintain: ( a ) technical reserves in respect

all underwriting liabilities assumed by it. The amount

such technical reserves shall be determined in accordance with the rules laid down in Council Directive 91/674/EEC

(4); ( b ) an adequate solvency margin and guarantee fund in respect

its entire business in accordance with Annex II to these Regulations.

(2)All Assets

an insurance undertaking shall be valued in accordance with Annex III to these Regulations for all purposes

the Insurance Acts and Regulations which require a determination

the value

assets to be made.

(3)Notwithstanding sub-articles
(1)and
(2)

this Article, if more than 90 per cent.

the gross premiums written in any accounting class

insurance business adopted for the purposes

the annual returns is reinsured, then the insurance undertaking will be required to maintain technical reserves representing a minimum

10 per cent.

gross premium income or 10 per cent.

gross technical reserves relating to such business, whichever is the greater, in that class and to hold assets representing that amount accordingly. However, insurance undertakings may reinsure without limit any individual risk.

(4)O.J. L374, 31.12.1991, page 7.
(4)Technical reserves may, subject to sub-article
(3)be established and maintained after the deduction

reinsurance cessions, provided such reinsurance arrangements are acceptable to the Minister. However, any reduction in technical reserves arising from reinsurance shall be restricted to the extent

the insurance risk transferred under the reinsurance arrangements. Where the reinsurance arrangements are not acceptable, the Minister may require that, in respect

the insurance contracts covered by such arrangements, reserves be maintained before the deduction

reinsurance cessions.

(5)Each insurance undertaking shall cover its technical reserves by equivalent assets valued in accordance with the Rules set out in Annex III to these Regulations. The matching Rules set out in Annex IV to these Regulations shall apply to such assets.
(6)An insurance undertaking with its head

fice in the State shall establish and maintain in the territories

the Member States assets

an amount equivalent to the amount

its technical reserves relating to risks situated within those territories.

(7)An insurance undertaking with its head

fice outside the territories

the Member States shall establish and maintain in the State assets

an amount equivalent to the amount

its technical reserves in the State.

(8)The documents

title

the assets localised in the State or the territories

the Member States in accordance with sub-articles

(6)and
(7)

this Article shall be held in those territories (or the State as the case may be) and, in the case

an insurance undertaking having its head

fice outside the territories

the Member States, the authorised agent shall have full authority to dispose

those assets in the name

the insurance undertaking in accordance with any direction from the Minister.

(9)For the purposes

applying sub-articles

(5)and
(6)

this Article an asset shall be regarded as being localised in the territories

the Member States (or the State as the case may be) as follows: ( a ) a tangible asset, where it is situated in the territories

the Member States (or the State as the case may be); ( b ) an asset consisting

a claim against a debtor: (i) in any case where the debtor is an incorporated company, where the head

fice

that company is situated in the territories

the Member States (or the State as the case may be); (ii) in any case where the debtor is an unincorporated body

persons, where the body

persons is resident or ordinarily resident in the territories

the Member States (or the State as the case may be); (iii) in any case where the debtor is an individual, where the individual is resident or ordinarily resident in the territories

the Member States (or the State as the case may be); ( c ) an asset consisting

a listed investment, where it is listed or dealt in a regulated Market in the territories

the Member States (or the Irish Stock Exchange as the case may be); ( d ) an asset consisting

an unlisted investment issued by an incorporated company, where the head

fice

the company is situated in the territories

the Member States (or the State as the case may be); ( e ) an asset consisting

an approved security where the issuer is established in the territories

the Member States (or the State as the case may be).

(10)For the purposes

applying sub-articles

(5)and
(6)

this Article a risk shall be deemed to be situated in the territories

the Member States or the State (as the case may be) as follows: ( a ) property consisting

buildings or buildings and their contents, in so far as the contents are covered by the same policy or other instrument

insurance, if the property is situated in the territories

the Member States (or the State as the case may be); ( b ) vehicles, including land vehicles, railway rolling stock, aircraft, sea, river and canal vessels, if the vehicle is registered in the territories

the Member States (or the State as the case may be); ( c ) travel or holiday risks, whatever the class concerned, if the policy or other instrument

insurance is issued in the territories

the Member States (or the State as the case may be); or, in any other case, if the policyholder is ordinarily resident in the territories

the Member States (or the State as the case may be) or if the policyholder is a legal person and the establishment to which the policy or other instrument

insurance relates to is situated in the territories

the Member States (or the State as the case may be).

(11)An insurance undertaking, whose head

fice is situated in the State, shall furnish to the Minister annually or at such more frequent intervals as the Minister may request such information in such form and manner as the Minister may require, together with statistical documents which are deemed necessary for supervision purposes and in particular in order to verify the state

solvency

the insurance undertaking with respect to its entire business.

(12)For the purposes

sub-article

(11)

this Article, the insurance undertaking shall, in addition, furnish to the Minister annually, or at such more frequent intervals as the Minister may request such information in such form and manner as the Minister may require in order to verify that the technical reserves referred to in this Article are being maintained.

(13)Every insurance undertaking shall keep a register showing the assets representing the technical reserves required by these Regulations in respect

insurance business carried on in the State in each class by the insurance undertaking and shall furnish to the Minister a certificate

the value

these assets on the closing date for which the accounts and balance sheets

the insurance undertaking are furnished to the Minister, such values being those in such accounts and balance sheets.

(14)The register shall be maintained at the principal

fice

the insurance undertaking in the State and shall contain up-to-date details

the assets representing the reserves in respect

non-life insurance business carried on in the State.

(15)The register shall be open for inspection by an

ficer or

ficers

the Minister during normal business hours. 14 Discounting. 14.

(1)Implicit discounting or deduction, including discounting or deduction by way

financial reinsurance, whether resulting from the placing

a present value on a provision for an outstanding claim which is expected to be settled later at a higher figure or otherwise effected, such discounting or deduction is prohibited.

(2)However, explicit discounting or deduction, including by way

financial reinsurance, to take account

investment income is permitted for the purpose

the accounts to be submitted to the Minister in accordance with the European Communities (Non-Life Insurance Accounts) Regulations, 1977, subject to any conditions which the Minister may from time to time deem necessary. In particular, the following conditions shall apply: ( a ) the expected date for the settlement

claims shall be on average at least four years after the accounting date; ( b ) the discounting or deduction shall be effected on a recognised prudential basis; any change in that basis shall be notified, in advance, to the Minister; ( c ) when calculating the total cost

settling claims, an undertaking shall take account

all factors that could cause increases in that cost; ( d ) an undertaking shall have adequate data at its disposal to construct a reliable model

the rate

claims settlements; ( e ) the rate

interest used for the calculation

present value shall not exceed a prudent estimate

the investment income from assets invested as a provision for claims during the period necessary for the payment

such claims. Moreover, it shall not exceed either

the following: — a rate derived from the investment income from such assets over the preceding five years; — a rate derived from the investment income from such assets during the year preceding the balance sheet date.

(3)When discounting or effecting deduction, including such discounting or deduction by way

financial reinsurance, an undertaking shall, in notes accompanying the accounts to be submitted to the Minister in accordance with the European Communities (Non-Life Insurance Accounts) Regulations, 1977, disclose the total amount

provisions before discounting or deduction, the categories

claims which are discounted or from which deductions have been made and, for each category

claims, the methods used, in particular the rates used for the estimates referred to in sub-article

(2), paragraphs (c) and (e), and the criteria adopted for estimating the period that will elapse before the claims are settled.
(4)The permission

explicit discounting or deduction as specified above shall at all times be at the Minister's discretion. 15 Transactions with a related company or companies. 15.

(1)Prior to entering into any transaction

a material nature with a related company or companies, including in particular, the provision

loans to and acceptance

loans from a related company or companies, an insurance undertaking shall submit to the Minister a draft

any contract or agreement which is to be entered into by the insurance undertaking in relation to the transaction.

(2)In this Article— "related company" has the meaning assigned to it in accordance with Annex III to these Regulations. 16 Failure to comply with technical reserves provisions. 16.
(1)Where an insurance undertaking whose head

fice is situated in the State fails to comply with Article 13

these Regulations the Minister may, after notifying the supervisory authorities

the Member States in which the risks underwritten by the insurance undertaking are situated, apply to the Court for an order, which the Court is empowered to make, prohibiting the free disposal

the insurance undertaking's assets.

(2)Where the solvency margin

an insurance undertaking whose head

fice is situated in the State falls below the minimum amount required by Articles 3 and 4

Part A

Annex II to these Regulations the Minister shall require that a plan be submitted by the insurance undertaking for the Minister's approval for the restoration

a sound financial position.

(3)In a case referred to in sub-article
(2)

this Article, where it appears to the Minister that the financial situation

the insurance undertaking will deteriorate further, the Minister may apply to the Court for an order, which the Court is empowered to make, restricting or prohibiting the free disposal

the insurance undertaking's assets. In that case, the Minister shall notify the supervisory authorities

the Member States where the insurance undertaking carries on insurance business

this fact and

any order

the Court. The Minister may also request the supervisory authorities

those Member States to take the same measures pursuant to this sub-article.

(4)Where the solvency margin

an insurance undertaking whose head

fice is situated in the State falls below the guarantee fund referred to in Part B

Annex II to these Regulations, the Minister shall require the insurance undertaking to submit for approval a short-term finance scheme. The Minister may also apply to the Court for an order, which the Court is empowered to make, restricting or prohibiting the free disposal

the assets

the insurance undertaking. In that case, the Minister shall notify the supervisory authorities

the Member States where the insurance undertaking carries on insurance business

this fact and

any order

the Court. The Minister may also request the supervisory authorities

those Member States to take the same measures pursuant to this sub-article.

(5)The Minister may apply to the Court for such further orders as may be necessary in order to safeguard the interests

insured persons, in the cases referred to in sub-articles

(1)to
(4)

this Article.

(6)Where the head

fice supervisory authority

an insurance undertaking situated in another Member State requests the Minister to take measures related to the restriction or prohibition

the free disposal

the assets located in the State

the insurance undertaking, the Minister may apply to the Court for an order, which the Court is empowered to make, restricting or prohibiting the free disposal

the assets located in the State

the insurance undertaking.

(7)The Court may make such order for the purposes

this Article as the Court may think fit. 17 Withdrawal/lapse

Authorisation. 17. An authorisation held by an undertaking whose head

fice is situated in the State may be revoked by the Minister if the Minister is satisfied that the holder— ( a ) has not used the authorisation for the last twelve months, has expressly renounced the authorisation or has ceased to carry on business covered by the authorisation for more than six months; ( b ) no longer fulfils the conditions required by the Insurance Acts and Regulations for the granting

an authorisation; ( c ) has been unable, within the time allowed, to take the measures contained in the restoration plan or finance scheme referred to in Article 16

these Regulations, or ( d ) fails seriously in its obligations under the Insurance Acts and Regulations. 18 Provisions applying on withdrawal/lapse

authorisation. 18. Where an authorisation is revoked under Article 17

these Regulations, the following provisions shall apply:— ( a ) the Minister shall notify the revocation to the supervisory authorities

the other member States in which the undertaking carries on business; ( b ) the Minister shall, in conjunction with the supervisory authorities

the other Member States in which the undertaking carries on business, restrict the free disposal by the undertaking

its assets in accordance with Article 16

(1), 16
(3)and 16
(4)

these Regulations; ( c ) the Minister may take further measures to safeguard the interests

persons insured by the insurance undertaking and may for this purpose apply to the Court for such order as to the Court may seem fit. 19 Notification

reasons for revocation. 19. Any decision to revoke an authorisation under Article 18 shall be supported by precise reasons and notified to the insurance undertaking in question. PART 3 Qualifying Holdings, Amendment to European Communities (Non-Life Insurance) (Amendment) Regulations, 1991, Obligation

Professional Secrecy/Exchanges

Confidential Information 20 Qualifying Holdings. 20.

(1)Notwithstanding the provisions

the Companies Acts, 1963 to 1990, any person who proposes to acquire either directly or indirectly, a qualifying holding in an insurance undertaking, shall first notify the Minister indicating the size

the proposed qualifying holding. Such person shall, in addition, be under an obligation to notify the Minister where it is proposed to increase such qualifying holding so that the percentage levels

the voting rights or capital which that person holds, reaches or exceeds any

the percentage levels referred to in sub-article

(4)

this Article so that the insurance undertaking would become that person's subsidiary.

(2)The Minister shall have a period

three months from the date

notification referred to in sub-article

(1)

this Article within which to oppose the proposed acquisition where, in view

the necessity to ensure sound and prudent management

the insurance undertaking in question, the Minister is not satisfied as to the suitability

the person referred to in sub-article

(1)

this Article.

(3)Any person who proposes to dispose, either directly or indirectly,

a qualifying holding in an insurance undertaking, shall first notify the Minister indicating the size

the proposed qualifying holding. Such person shall, in addition, be under an obligation to notify the Minister if it is proposed to decrease such qualifying holding so that the percentage levels

the voting rights or capital which that person holds falls below any

the percentage levels referred to in sub-article

(4)

this Article so that the insurance undertaking would cease to be that person's subsidiary.

(4)The percentage levels referred to in sub-articles
(1)and
(3)are 20 per cent, 33 per cent or 50 per cent.
(5)An insurance undertaking which becomes aware

any acquisitions or disposals

holdings in its capital so that such holdings exceed or fall below any

the percentage levels referred to in sub-article

(4)

this Article shall inform the Minister

such acquisitions or disposals. In addition, the insurance undertaking shall, at such times as may be specified by the Minister and at least once a year, notify the Minister

the names

shareholders or members possessing qualifying holdings and the size

such holdings by reference, for example, to information received at annual general meetings

shareholders or members or as a result

compliance with the Companies Acts, 1963 to 1990. The Minister may, at any time, require information concerning all shareholders irrespective

the size

their holding.

(6)If the Minister has reason to believe that the control exercised by the person or persons referred to in sub-article
(1)

this Article is likely to operate against the prudent and sound management

an insurance undertaking, the Minister may apply to the Court for such order, for the purposes

putting an end to that situation, by way

injunction, suspension

the exercise

the voting right attaching to the shares held by the shareholders or members in question or otherwise as the Court shall think fit.

(7)The Court, acting under sub-article
(6)

this Article, may make such order in relation to the matter as may appear to be necessary.

(8)Sub-article
(6)

this Article shall also apply to persons who fail to comply with the notification requirements referred to in sub-article

(1)

this Article. If a holding is acquired contrary to the provisions

this Article the Court may, on the application

the Minister, in addition to any other order which it may make, order the suspension

the corresponding voting rights or the nullity

votes cast.

(9)In this Article— "control" means the relationship between a parent undertaking and a subsidiary, as defined in Article 1

Council Directive 83/349/EEC

(5), or a similar relationship between any natural or legal person and an undertaking; "qualifying holding" has the meaning assigned to it by Article 9
(4)

these Regulations. "parent undertaking" means a parent undertaking as defined in Articles 1 and 2

Council Directive 83/349/EEC; "subsidiary" means a subsidiary undertaking as defined in Articles 1 and 2

Council Directive 83/349/EEC; any subsidiary

a subsidiary undertaking shall also be regarded as a subsidiary

the undertaking which is those undertakings' ultimate parent undertaking; 21 Amendment to European Communities (Non-Life Insurance) (Amendment) Regulations, 1991 ( S.I. No. 5

1991 ). 21. Article 14

the Regulations

1976 as amended by Article 4

the European Communities (Non-Life Insurance) (Amendment) Regulations, 1991 ( S.I. No. 5

1991 ), is hereby amended by the substitution in sub-article

(8)

the following paragraph for paragraph (a): "

(8)( a ) Every insurance undertaking which is underwriting risks included in Class 14 in Part A

the Annex (referred to subsequently in these Regulations as 'credit insurance') shall, subject to paragraph (d)

this sub-article, set up an equalisation reserve for the purpose

fsetting any technical deficit or above-average claims ratio arising in that class for a financial year." 22 Obligation

Professional Secrecy/exchanges

confidential information. 22.

(1)Every person to whom this Article is applicable, including auditors and other experts working or who have worked for or acting or who have acted on behalf

the Minister, shall be bound by the obligation

professional secrecy.

(2)The obligation

professional secrecy means that, subject to the succeeding sub-article

this Article, no confidential information received in the performance

duties may be divulged to any person or authority whatsoever, except in such form as will ensure that individual insurance undertakings cannot be identified, except by order

a Court in criminal proceedings. Nevertheless, where an insurance undertaking has been declared bankrupt or is being compulsorily wound up, confidential information which does not concern third parties involved in attempts to rescue the undertaking may be divulged where ordered by a court in civil or commercial proceedings.

(5)O.J. L193, 18.7.1983, page 1.
(3)Sub-articles
(1)and
(2)

this Article shall not prevent the competent authorities

different Member States from exchanging information in accordance with the Directives applicable to insurance undertakings. Such information when so exchanged shall be subject to the conditions

professional secrecy laid down in these sub-articles.

(4)The Minister may conclude co-operation agreements, providing for exchanges

information, with the competent authorities

third countries only if the information disclosed is subject to guarantees

professional secrecy at least equivalent to those provided for in this Article.

(5)Where the Minister receives confidential information in accordance with sub-articles
(1),
(2)and
(3)

this Article the Minister may use it only— ( a ) to check that the conditions governing the taking up

the business

insurance are met and to facilitate monitoring

the conduct

such business, especially with regard to the monitoring

technical reserves, solvency margins, administrative and accounting procedures and internal control mechanisms, ( b ) to impose sanctions, or ( c ) in court proceedings initiated under Article 46

these Regulations or under special provisions, provided for in Council Directives adopted in the field

insurance undertakings.

(6)Sub-articles
(1),
(2)and
(5)

this Article shall not preclude the exchange

information within the State, where there are two or more competent authorities in the State, or between Member States or between competent authorities and— ( a ) authorities responsible for the

ficial supervision

credit institutions and other financial organisations and the authorities responsible for the supervision

financial markets, ( b ) bodies involved in the liquidation and bankruptcy

insurance undertakings and in other similar procedures, and ( c ) persons responsible for carrying out statutory audits

the accounts

insurance undertakings and other financial institutions, in the discharge

their supervisory functions, or the disclosure to bodies which administer compulsory winding-up proceedings or guarantee funds

information necessary to the performance

their duties. The information received by those authorities, bodies and persons shall be subject to the conditions

professional secrecy laid down in sub-articles

(1)and
(2).
(7)In addition, notwithstanding sub-articles
(1),
(2)and
(5)

this Article, the Minister may in accordance with the law

the State authorise the disclosure

certain information to other authorities responsible for the supervision

credit institutions, financial institutions, investment services and insurance companies and to inspectors acting on behalf

those authorities.

(8)The disclosures may be made only where necessary for reasons

prudential control.

(9)The information received under sub-articles
(3)and
(6)

this Article and that obtained by means

on-the-spot verification in accordance with Article 11

these Regulations may never be disclosed in the cases referred to in this sub-article except with the express consent

the competent authorities which disclosed the information or

the competent authorities

the Member State in which on-the-spot verification was carried out. PART 4 Choice

Law, General Good Requirements, Notification

Documents, Compulsory Insurance, Policyholder Disclosure 23 Choice

Law Applicable to Insurance Contracts. 23.

(1)The law applicable to a contract

insurance which covers risks situated within the State or within other Member States shall be determined in accordance with the following provisions: ( a ) Where the habitual residence or central administration

a policyholder is within the territory

the Member State where the risk is situated, the law applicable to the insurance contract shall be the law

that Member State; however where the law

that Member State so allows, the parties may choose the law

another country. ( b ) Where the habitual residence or central administration

a policyholder is not in the Member State where the risk is situated, the parties to the insurance contract may choose to apply either the law

the Member State in which the risk is situated or the law

the country

the policyholder's habitual residence or central administration. ( c ) Where a policyholder pursues a commercial, industrial or professional activity and where the contract covers two or more risks relating to these activities and situated in different Member States, the freedom

choice

the law applicable to the contract extends to the laws

those Member States and

the country

the policyholder's habitual residence or central administration. ( d ) Notwithstanding paragraphs (b) and (c)

this sub-article, where the Member States referred to in those paragraphs grant greater freedom

choice

the law applicable to the contract, the parties may take advantage

this freedom. ( e ) Notwithstanding paragraphs (a), (b) and (c)

this sub-article, where the risks covered by the contract are limited to events occurring in a Member State other than the Member State where the risk is situated the parties may always choose the law

the former State. ( f ) In the case

large risks referred to in Article 5

the Regulations

1991, the parties to the contract may choose the law

any country. ( g ) Notwithstanding paragraphs (a) to (f)

this sub-article, where all the other elements relevant to the situation at the time

the choice are connected with one Member State only, nothing shall prejudice the application

the mandatory rules

the law

that Member State, from which the law

that Member State allows no derogation by means

a contract. ( h ) (i) The choice

law referred to in the preceding paragraphs

this Article must be expressed or demonstrated with reasonable certainty by the terms

the contract or the circumstances

the case. (ii) If that is not so, or if no choice has been made, the contract shall be governed by the law

the country, from amongst those considered in the relevant subparagraphs

this Article, with which it is most closely connected. (iii) Nevertheless, a severable part

the contract which has a closer connection with another country, from amongst those considered in the relevant subparagraphs

this sub-article may by way

exception be governed by the law

that other country. The contract shall be rebuttably presumed to be most closely connected with the Member State in which the risk is situated. (iv) Where a Member State includes several territorial units, each

which has its own rules

law concerning contractual obligations, each unit shall be considered as a country for the purposes

identifying the applicable law.

(2)( a ) Nothing in this article shall restrict the application

the rules

the law

the forum in a situation where they are mandatory irrespective

the law otherwise applicable to the contract. ( b ) Where the law

a Member State so stipulates, the mandatory rules

the law

the Member State in which the risk is situated or

the Member State imposing the obligation to take out insurance may be applied if and insofar as, under the laws

those States, those rules must be applied whatever the law applicable to the contract. ( c ) Where the contract covers risks situated in more than one Member State, the contract is considered for the purposes

applying this paragraph as constituting several contracts each relating to only one Member State.

(3)Subject to the preceding sub-paragraphs

this Article, the laws

the State relating to the general rules

private international law shall be applied to the insurance contracts covered by these Regulations. 24 General Good Requirements. 24. In conformity with the general good in accordance with the law

the European Communities, an insurance undertaking shall, in particular, comply with the following criteria— ( a ) the provisions

the Health Insurance Act, 1994 , applicable to the carrying on

health insurance business in the State, ( b ) the provisions

the Road Traffic Act, 1961 , and Regulations under the European Communities Act, 1972 , relating to the insurance

mechanically propelled vehicles, ( c ) the provisions

the Consumer Information Act, 1978 , applicable to insurance contracts and the marketing and selling

insurance products, ( d ) the provisions

the Sale

Goods and Supply

Service Act, 1980, applicable to insurance contracts and the marketing and selling

insurance products, ( e ) the provisions

the Motor Insurance Advisory Board (Establishment) Order, 1984, relating to the statistical requirements

the Board, ( f ) provisions related to the supervision and regulation

insurance intermediaries under the Insurance Acts and Regulations, ( g ) provisions contained in consumer credit legislation adopted by the State, ( h ) any other requirements which the Minister may prescribe by regulations for the general good, and the Minister in so prescribing may have regard to provisions in Codes

Conduct and Practice related to the marketing and selling

insurance and to the content

insurance proposals. 25 Notification

Documents and Scales

Premiums. 25.

(1)The Minister shall not make provisions requiring the prior approval or systematic notification

general and special policy conditions, scales

premiums, forms and other printed documents which an insurance undertaking intends to use in its dealing with policyholders. The Minister may, however, require notification

the general and special policy conditions and other documents considered necessary for the purposes

verifying compliance with laws, Regulations and administrative provisions concerning insurance contracts. A notification requirement shall not constitute a prior condition for an insurance undertaking to carry on business in the State.

(2)The Minister may retain or introduce prior notification or approval

proposed increases in premium rates where such notification or approval is operated as part

a general price control system. 26 Compulsory Insurance. 26.

(1)( a ) Every compulsory contract

insurance shall be in accordance with the specific provisions relating to that insurance laid down in accordance with the laws

the State. ( b ) In the case

conflict between the law

the Member State in which the risk is situated and the law

the Member State which imposes the obligation to take out insurance the law

the latter shall prevail. ( c ) Notwithstanding Article 23

these Regulations, the law applicable to compulsory contracts

insurance shall be the law

the Member State which imposes the obligation to take out insurance. ( d ) Subject to sub-article

(3)

this Article, Article 23

(2)(c)

these Regulations shall apply where the insurance contract provides cover in several Member States

which at least one imposes an obligation to take out insurance. ( e ) Where an undertaking is carrying on compulsory insurance it shall notify the relevant authorities

any cessation

cover and such cessation may be invoked against injured third parties in the circumstances laid down by the law

the State. ( f ) The supervisory authorities shall accept as proof that the insurance obligation has been fulfilled a certificate the content

which is in conformity with the specific provisions relating to that insurance in accordance with the law

the State.

(2)Notwithstanding anything to the contrary in the Insurance Acts and Regulations, the Minister shall be informed

the general and special conditions

any insurance contract related to compulsory insurance before any such contract

insurance is issued. 27 Policyholder Disclosure Rules. 27.

(1)An insurance undertaking or, as the case may be, an insurance intermediary with whom a person seeking insurance deals directly, shall, before any insurance contract is concluded, notify persons seeking insurance and in writing, where requested,

the following, as appropriate— ( a ) the law applicable to the contract where the parties do not have a choice

law, or ( b ) that the parties to the contract are free to choose the applicable law and in this case the law which the insurance undertaking proposes to choose; and shall also so notify such persons

the arrangements for handling policyholders' complaints concerning insurance contracts including the existence

a complaints body, without prejudice to a person's right

recourse to legal proceedings.

(2)Sub-article
(1)

this Article shall apply only in the case

natural persons.

(3)The rules for implementing the provisions

sub-article

(1)

this Article shall be determined in accordance with the law

the Member State in which the risk is situated.

(4)Where the risk is situated in the State, the insurance contract documents shall, subject to Section 108

the Insurance Act, 1936 , which provides for the issue

documents in the Irish language, be provided by the insurance undertaking in the English language.

(5)Where an insurance undertaking is carrying on insurance business by way

services or by way

establishment, persons seeking insurance shall, before any insurance contract is concluded, be notified

the Member State in which the head

fice or, where appropriate, the branch with which the insurance contract is to be concluded is situated.

(6)Any documents issued to the policyholder shall contain the information referred to in sub-article
(5)

this Article.

(7)The provisions

sub-articles

(5)and
(6)

this Article shall not apply in the case

large risks within the meaning

Article 5

the Regulations

1991.

(8)The contract

insurance or other document granting insurance cover together with the insurance proposal form where it is binding upon the policyholder shall specify the address

the head

fice, or, where appropriate,

the branch

the insurance undertaking granting cover.

(9)In the case

the coverage

risk, other than carrier's liability, classified under class 10

Annex I to these Regulations, an insurance undertaking referred to in Article 34

these Regulations shall specify in the documents referred to in sub-article

(8)

this Article the name and address

the representative

the insurance undertaking referred to in Article 34

(7)

these Regulations. PART 5. Right

Establishment, Freedom to Provide Services, Motor Insurance Business, General Conditions, Prevention

Irregularities 28 Provisions Relating to the right

Establishment

a Branch outside the State. 28.

(1)An insurance undertaking with a head

fice in the State proposing to establish a branch in another Member State shall notify the Minister

its proposal.

(2)The notification referred to in sub-article
(1)

this Article shall provide the following information— ( a ) the Member State within the territory

which the insurance undertaking proposes to establish the branch; ( b ) a scheme

operations setting out, inter alia, the types

business envisaged and the structural organisation

the branch; ( c ) the address in the Member State

the branch from which documents may be obtained and to which they may be delivered, being the address to which all communications to the authorised agent

the branch are sent; ( d ) the name

the authorised agent

the branch being a person possessing sufficient powers to bind the insurance undertaking in relation to third parties and to represent it in relations with the authorities and Courts

the Member State

the branch.

(3)( a ) An insurance undertaking with a head

fice in the State which intends to carry on insurance business in respect

the coverage

a risk classified under class 10

Annex I to these Regulations, other than carrier's liability, by way

a branch in another member State shall submit a declaration to the Minister attesting that the insurance undertaking has become a member

the national bureau and the national guarantee fund

the Member State

the branch. ( b ) In this sub-article— "national bureau" means a national insurers' bureau as defined in Article 1

(3)

Council Directive 72/166/EEC

(6); "national guarantee fund" means the body referred to in Article 1
(4)

Council Directive 84/5/EEC

(7).
(6)O.J. L103, 2.5.1972, page 1.
(7)O.J. L8, 11.1.1984, page 17.
(4)The Minister shall, within three months

receipt

all the information referred to in sub-articles

(2)and
(3)

the Article, furnish such information to the supervisory authority

the member State

the branch and the Minister shall notify the insurance undertaking concerned accordingly.

(5)The Minister shall also furnish a certificate attesting if such be the case that the insurance undertaking possesses the minimum solvency margin calculated in accordance with Annex II to these Regulations.
(6)Where the Minister has reason— ( a ) to believe that the administrative structure

the insurance undertaking, or the financial situation

the insurance undertaking is inadequate, or ( b ) to doubt the good repute or professional qualifications or experience

the directors or manager or the authorised agent, taking into account the forecast business plan, the Minister shall not be required to furnish the information referred to in sub-articles

(2)and
(3)

this Article to the supervisory authority

the Member State

the branch.

(7)Where the Minister decides to refuse to furnish the information referred to in sub-articles
(2)and
(3)

this Article to the supervisory authority

the Member State

the branch the Minister shall notify the insurance undertaking

the grounds for such refusal within three months

receipt

all the information in question.

(8)An insurance undertaking may appeal against a refusal or failure to furnish the information in question to the Court. 29 Amendment to branch information. 29. Where an insurance undertaking established in the State intends to change the information given in respect

Article 28

(2)(b), (c) or (d)

these Regulations, it shall furnish a notification

any such change to the Minister and to the supervisory authorities

the Member State

the branch at least one month before making the change in order, having regard to the proposed changes, for the Minister to exercise the Minister's functions in accordance with sub-articles

(4),
(6),
(7)and
(8)

Article 28

these Regulations and for the supervisory authorities

the Member State

the branch to inform the Minister

the conditions under which, in the interest

the general good as applied in that Member State, having regard to the proposed changes, the insurance business may be carried on in that State. 30 Conditions for Establishing a Branch in the State. 30. Where an insurance undertaking not established in the State intends to carry on insurance business by way

a branch in the State, and where the supervisory authorities

that insurance undertaking have furnished to the Minister the appropriate information referred to in sub-article

(2)

Article 28

these Regulations, together with a declaration (where appropriate) attesting that the insurance undertaking has become a member

the Motor Insurers' Bureau

Ireland and the guarantee fund referred to in Article 1

(4)

Council Directive 84/5/EEC (in this Part referred to as "the guarantee fund") and a certificate attesting that the insurance undertaking possesses the minimum solvency margin calculated in accordance with Annex II to these Regulations, the Minister shall, within two months

receiving the information referred to in this Article and before the branch commences business, notify the supervisory authority

the home Member State

the conditions under which, in the interest

the general good, the insurance business may be carried on in the State. 31 Amendment to branch information. 31. Where an insurance undertaking with a branch established in the State intends to change the information given in respect

Article 28

(2)(b), (c) or (d)

these Regulations, it shall furnish a notification

any such change to the Minister at least one month before making the change in order that, having regard to the proposed changes, the requirements

Article 30

these Regulations may be fulfilled. 32 Conditions for carrying on insurance business by way

services into another Member State. 32.

(1)An insurance undertaking established in the State which intends to carry on business by way

services for the first time in one or more other Member States shall send a notification to the Minister indicating the nature

the risks which the insurance undertaking proposes to cover.

(2)The Minister shall, within one month

the notification provided for in sub-article

(1)

this Article, furnish the following information to the supervisory authorities

the Member State or Member States within the territories

which the insurance undertaking intends to carry on insurance business by way

services: ( a ) a certificate if such be the case attesting that the insurance undertaking possesses the minimum solvency margin in accordance with Annex II to these Regulations; ( b ) the classes

insurance which the insurance undertaking has been authorised to

fer, and ( c ) the nature

the risks which the insurance undertaking proposes to cover in the Member State or Member States within the territories

which the insurance undertaking intends to carry on insurance business by way

services.

(3)The Minister shall, at the same time, notify the insurance undertaking concerned accordingly.
(4)The insurance undertaking may commence carrying on insurance business by way

services from the date certified by the Minister

the notification

the information referred to in sub-article

(2)

this Article.

(5)Where the Minister refuses to furnish the information referred to in sub-article
(2)

this Article within the period laid down, the Minister shall notify the insurance undertaking

the grounds for the refusal within the same period. 33 Conditions for carrying on insurance business by way

services into the State. 33.

(1)An insurance undertaking may carry on insurance business by way

services into the State on or after the date on which the supervisory authority

its home Member State certify that they have communicated to the Minister the appropriate information referred to in paragraphs (a), (b) and (c)

sub-article

(2)

Article 32

these Regulations.

(2)Where an insurance undertaking intends to carry on insurance business by way

services into the State, the Minister shall, in order to give effect to the provisions contained in Article 24

these Regulations, notify the supervisory authority

the home Member State

the conditions under which, in the interest

the general good, the insurance business may be carried on in the State. 34 Additional provisions related to risks in class 10 (other than carrier's liability) —third party motor liability insurance. 34.

(1)The provisions

this Article shall apply to an insurance undertaking which intends to provide services into the State in respect

the coverage

a risk classified under class 10

Annex I to these Regulations, other than carrier's liability.

(2)The insurance undertaking shall become a member

and participate in the financing

the Motor Insurers' Bureau

Ireland and

the guarantee fund.

(3)The insurance undertaking shall submit a declaration to the Minister attesting that the insurance undertaking has become a member

the Motor Insurers' Bureau

Ireland and

the guarantee fund.

(4)The insurance undertaking shall not be required to make any payment or contribution to the Motor Insurers' Bureau

Ireland or the guarantee fund other than by reference to its gross premium income in respect

the coverage

risks in class 10

Annex I to these Regulations, other than carrier's liability, underwritten in the State by way

services, or in respect

the number

risks underwritten in the State by way

services in that Class.

(5)The insurance undertaking shall become a party to the Declined Cases Agreement or comply with rules concerning the cover

aggravated risks, insofar as they apply to insurance undertakings established in the State.

(6)The insurance undertaking shall ensure that persons pursuing claims arising out

events occurring in the State are not placed in a less favourable situation as a result

the fact that the undertaking is covering a risk, other than carrier's liability, in class 10

Annex I to these Regulations by way

the provision

services rather than through an establishment situated in the State.

(7)For this purpose, the insurance undertaking shall appoint a representative resident or established in the State who shall collect all necessary information in relation to third party motor claims and shall possess sufficient powers to represent the insurance undertaking in relation to persons suffering injury or damage who could pursue claims, including the acceptance

service on behalf

the insurance undertaking

proceedings in respect

such claims and the payment

such claims. The representative shall represent the insurance undertaking before the Courts and authorities

the State in relation to those claims.

(8)The insurance undertaking shall notify the Minister

the name and address

the representative referred to in sub-article

(7)

this Article.

(9)The representative shall also represent the insurance undertaking in relation to confirming the existence and validity, or otherwise,

motor vehicle liability insurance policies before the competent authorities

the State.

(10)The representative shall not be required to undertake activities on behalf

the insurance undertaking which appointed the representative other than those set out in sub-articles

(8)and
(9)

this Article.

(11)The representative shall not carry on the business

direct insurance in the State on behalf

the said insurance undertaking.

(12)The appointment

the representative shall not, in itself, constitute the establishment

a branch.

(13)The representative shall not constitute an establishment as defined in Article 2 (c)

the Second Directive. 35 Amendment to services information. 35. Where an insurance undertaking intends to amend the information provided in accordance with sub-article

(1)

Article 32

these Regulations, it shall be subject to the appropriate procedures laid down in accordance with sub-articles

(1),
(2),
(3),
(4), and
(5)

Article 32

these Regulations. The insurance undertaking shall also be subject to the procedures laid down in accordance with Articles 33 and 34

these Regulations. 36 General conditions regarding the establishment

a branch or the provision

services. 36.

(1)The Minister may require the information required to be furnished in respect

an insurance undertaking which carries on business in the State by way

a branch or by way

provision

services to be supplied in the Irish and English language.

(2)The Minister shall not make provisions requiring the prior approval or systematic notification

general and special policy conditions, scales

premiums or forms and other printed documents which an insurance undertaking with a branch established in the State or providing services into the State intends to use in its dealings with policyholders.

(3)The Minister may require the non-systematic notification

the general and special policy conditions and other documents necessary for the purposes

verifying compliance with the law (including relevant provisions in these Regulations) concerning insurance contracts. A notification shall not constitute a prior condition for an insurance undertaking to carry on insurance business by way

branch establishment or by way

services into the State. 37 Prevention

Irregularities. 37.

(1)Where an insurance undertaking is carrying on insurance business by way

branch establishment or by way

services into the State, it shall submit to the Minister, on request, all documents which the Minister considers necessary for the purposes

implementing this Article insofar as an insurance undertaking with a head

fice established in the State is also required to do so.

(2)Where an insurance undertaking carrying on insurance business by way

branch establishment or by way

services into the State does not comply with the Insurance Acts and Regulations, the Minister shall by direction require the insurance undertaking to do so.

(3)Where an insurance undertaking fails to comply with a direction referred to in sub-article
(2)

this Article, the Minister shall inform the supervisory authorities

the home Member State so that they may take all appropriate measures in accordance with Article 40

(4)

the Directive.

(4)If, after invoking the procedures

sub-article

(3)

this Article, the measures taken against the insurance undertaking carrying on insurance business by way

services into the State or by way

branch establishment are, in the opinion

the Minister, not adequate and the insurance undertaking continues to contravene the Insurance Acts and Regulations, the Minister may, after informing the supervisory authorities

the home Member State, apply to the Court for such order as to the Court may seem fit, in order to prevent further infringements

the Insurance Acts and Regulations, including in so far as is necessary and in accordance with the Insurance Acts and Regulations, the prevention

that undertaking from continuing to conclude new insurance contracts within the State.

(5)Nothing in this Article shall affect any other powers

the State to proceed against insurance undertakings transacting business in the State for failing to comply with the laws

the State, including the possibility

preventing insurance undertakings from continuing to conclude new insurance contracts within the State.

(6)Any order

the Court under sub-article

(4)or measure adopted by the Minister pursuant to this Article shall be communicated to the insurance undertaking and shall be supported by the precise grounds for the adoption

the measure.

(7)Where the supervisory authorities

another Member State request the Minister to take appropriate measures in accordance with Article 40

(4)

the Directive in relation to failure to comply with the laws

that State by an insurance undertaking established in the State and which is carrying on insurance business by way

services into the former Member State or by way

a branch establishment, the Minister may apply to the Court for an order enforcing such compliance and shall communicate accordingly to the supervisory authorities

the Member State

provision

services or the Member State

the branch. PART 6 Advertising, Winding-up, Statistical Requirements 38 Advertising. 38. An insurance undertaking may advertise its services, through all available means

communication in the State, subject to any rules governing the form and content

such advertising adopted in the interest

the general good. 39 Winding-up

insurance undertaking. 39. In the event

an insurance undertaking being wound up, commitments arising from contracts underwritten in the course

carrying on insurance business by way

services or through a branch establishment shall be met in the same way as those arising under that insurance undertaking's other insurance contracts, without distinction

nationality, as far as the insured and the beneficiaries are concerned. 40 Statistical Information. 40.

(1)An insurance undertaking with its head

fice in the State shall inform the Minister separately in respect

transactions effected by it by way

establishment and those effected by it by way

services

the amount

the premiums, claims and commissions, without deduction

reinsurance and shall so inform the Minister in respect

a Member State where such transactions are effected and in respect

each group

classes specified in sub-article

(3)

this Article and also, with regard to the risk, other than carrier's liability, classified under class 10

Annex I,

the frequency and the average cost

claims without deduction

reinsurance.

(2)The groups

classes referred to in sub-article

(1)

this Article are as follows: (

  1. i)accident and sickness (1 and 2), (
  2. ii)motor insurance (3, 7 and 10, the figures relating to class 10, other than carrier's liability, being given separately), (iii) fire and other damage to property (8 and 9), (
  3. iv)aviation, marine and transport (4, 5, 6, 7, 11 and 12), (
  4. v)general liability

(13), (vi) credit and suretyship (14 and 15), (vii) other classes (16, 17 and 18).
(3)The Minister shall forward the information provided in accordance with sub-articles
(1)and
(2)

this Article within a reasonable period

time and in aggregate form to the supervisory authorities

each

the Member States which so requests. 41 Statistical requirement regarding services and branch insurance business. 41.

(1)The Minister may request the supervisory authority

the home Member State

an insurance undertaking which carries on insurance in the State by way

services or by way

branch establishment, to submit the appropriate information referred to in sub-article

(1)

Article 40

and other appropriate information in order that the statistical needs

the State may be fulfilled.

(2)The Minister may, in addition, in the interest

the general good, require an insurance undertaking which has its head

fice in the territory

another Member State and is transacting insurance business in the State to supply such statistical information in such form and manner as the Minister may specify from time to time. PART 7 Guarantee Schemes, Fiscal Arrangements, Acquired Rights, Right

Appeal 42 Obligation to join guarantee schemes. 42. Insurance undertakings carrying on business by way

services into the State or by way

branch establishment in the State, including, if necessary, those insurance undertakings referred to in sub-article

(4)

Article 6

these Regulations shall join and participate in the Insurance Compensation Fund established in accordance with the Insurance Act, 1964 , and any other scheme established under the Insurance Acts and Regulations designed to guarantee the payment

insurance claims to insured persons and injured third parties on the same terms as insurance undertakings with head

fices in the State. 43 Fiscal arrangements. 43.

(1)Every insurance contract for which the risk is situated in the State shall be subject to the indirect taxes and parafiscal charges on insurance premiums payable under the laws

the State.

(2)Notwithstanding anything to the contrary in the Insurance Acts and Regulations and for the purposes

this Article, the moveable property contained in a building situated in the territory

the State, except for goods in commercial transit, shall be a risk situated in the State, even though the building and its contents are not covered by the same insurance policy.

(3)The law applicable to the contract under the provisions

Article 23

these Regulations shall not affect the fiscal arrangements applicable. 44 Acquired Rights. 44. An insurance undertaking which has commenced business by way

a branch establishment in the State before the coming into operation

provisions adopted in implementing these Regulations shall be presumed to have been subject to the procedure laid down in accordance with Article 10

(1)to
(5)

the First Directive. 45 Application

Regulations to branch under Article

  1. A branch referred to in Article 44

these Regulations shall be subject from the date

entry into force

provisions adopted in implementing these Regulations to the relevant provisions laid down in accordance with these Regulations. 46 Right

appeal to Court. 46. Any decision, direction, requirement or request given or made by the Minister under these Regulations may, within twenty-one days from the day on which it was notified to the person concerned be appealed to the Court. PART 8 Provisions Related to Branches

Third Country Insurance Undertakings, Rules Applicable to the Assignment

Third Country Branch Policies, Rules Applicable to Health Insurance, Section 93 and 94

the Insurance Act, 1936 , Penalties, Fees 47 Third country branch provisions. 47. Articles 47 to 56

these Regulations apply to non-life insurance undertakings whose head

fice is not in a Member State ("a third country undertaking"). 48 Application for authorisation. 48.

(1)An application for an authorisation may be made to the Minister by a third country undertaking which proposes to establish a branch in the State.
(2)A branch

a third country undertaking authorised to undertake insurance in the State may apply to extend its business to classes

insurance for which it is not authorised or to part

such classes. 49 Conditions

Admission. 49. An insurance undertaking having its head

fice situated outside the territories

the Member States applying for an authorisation to establish a branch in the State shall fulfil at least the following conditions: ( a ) it is entitled to undertake insurance business under the law

the State where its head

fice is situated; ( b ) it establishes a branch in the State; ( c ) it undertakes to maintain at the place

management

the branch in the State accounts specific to the business which it undertakes in the State and to keep at that place all the records relating to the business transacted in the State; ( d ) it designates an authorised agent for such purposes as the Minister may require and is approved by the Minister; ( e ) it possesses in the State assets

an amount equal to at least one-half

the minimum amount required by Article

(3)

Part B

Annex II to these Regulations in respect

an undertaking to which that Article applies and deposits with the Court one-fourth

that minimum amount as security; (f) it undertakes to keep a margin

solvency in accordance with Annex II to these Regulations; ( g ) it submits a scheme

operations in accordance, insofar as is applicable, with Article 7

(2)(b)

these Regulations as if it were an insurance undertaking to which that Article applies. 50 Technical Reserves Provisions. 50. An insurance undertaking authorised under Article 49

these Regulations shall establish and maintain technical reserves adequate to cover the underwriting liabilities assumed in the State in accordance with Articles 13 and 21

these Regulations. 51 Solvency Margin. 51.

(1)Subject to sub article
(2)

this Article, Annex II and Article 16

(2)

these Regulations shall apply to an undertaking to which this Article applies.

(2)In calculating a solvency margin for the purposes

this Article, account shall be taken only

the premiums or contributions and claims pertaining to the business effected by the insurance undertaking in the State or in another Member State, as appropriate.

(3)The assets representing the solvency margin shall be retained in the State up to the amount

the guarantee fund required by Part B

Annex II to these Regulations and any excess shall be retained either in the State or in another Member State. 52 Guarantee Fund. 52.

(1)Subject to sub-article
(2)

this Article, Part B

Annex II to these Regulations shall apply to an insurance undertaking to which this Article applies.

(2)The amount

a minimum guarantee fund shall not be less than one-half

the minimum required under Article

(3)

Part B

Annex II to these Regulations and the deposit lodged under Article 49 (e)

these Regulations shall be reckoned in calculating the amount

a guarantee fund for the purposes

this Article. 53 Annual Returns. 53. Save as provided in Article 55

these Regulations, Article 13

(11)

these Regulations shall, insofar as is applicable, apply to an undertaking to which this Article applies as if the insurance undertaking was one whose head

fice is situated in the State. 54 Application

Articles 16 and

  1. Articles 16 and 17

these Regulations shall apply to an undertaking to which this Article applies subject to the following modifications, namely, that the references in Articles 16 and 17 to another Member State shall be construed as references to the Member State in which the insurance undertaking in question first commenced to carry on business. 55 Advantages under Article 26

the First Directive/Application

Article 26(2), (3) and (4).

55. An undertaking which, having obtained an authorisation from a Member State and subsequently obtained an authorisation from one or more Member States to establish other branches therein may apply to the Minister for one or more

the advantages specified in Article 26

the First Directive, as amended by Article 12

Council Directive 84/641/EEC

(8), and Article 26
(2),
(3)and
(4)shall apply in such a case. 56 Rules applicable to the assignment

policies

branches

insurance undertakings whose head

fices are outside the European Communities. 56.

(1)Subject to the provisions

section 13

the Assurance Companies Act, 1909, section 36

the Insurance Act, 1989 , and these Regulations and following consultation with the Minister an insurance undertaking to which Part 8

these Regulations applies may assign all or part

its portfolio

insurance policies in accordance with the following sub-articles

this Article.

(2)Where a branch established in the State

an insurance undertaking whose head

fice is not situated in the territory

a Member State, proposes to assign all or part

its portfolio

insurance policies covering insurance business to an assignee established in the State, the assignment shall not be effected unless the assignee possesses the necessary solvency margin after taking the assignment into account or, where appropriate, the supervisory authorities

the Member State referred to in Article 26

the First Directive certify that the assignee possesses the necessary solvency margin after taking the assignment into account.

(3)Where a branch established in the State

an insurance undertaking whose head

fice is not situated in the territory

a Member State, proposes to assign all or part

its portfolio

insurance policies covering insurance business to an assignee with a head

fice in another Member State, the assignment shall not be effected unless the supervisory authorities

the head

fice Member State certify that the assignee possesses the necessary solvency margin after taking the assignment into account.

(8)O.J. L339, 27.12.1984, page 21.
(4)A branch established in the State

an insurance undertaking whose head

fice is not situated in the territory

a Member State may not assign all or part

its portfolio

insurance policies covering insurance business to an undertaking, established in another Member State, whose head

fice is not situated in the territory

a Member State.

(5)In the cases referred to in sub-articles
(2)and
(3)

this Article, the assignment shall not be effected without obtaining the agreement

the supervisory authorities

the Member States in which the risks are situated if different from the Member State where the branch is established.

(6)Where the supervisory authorities

the Member States in which the risks are situated have not given a response indicating consent to or an opinion on the proposed assignment to the Minister within three months

receiving notification

the assignment, the assignment shall be deemed to be agreed.

(7)Where the Minister is consulted in accordance with Article 53
(4)and
(5)

the Directive, the Minister shall have a period

three months from the date

consultations by the supervisory authorities

the home Member State within which to issue an opinion on or consent to the proposed assignment.

(8)Where the Minister has not given a response indicating an opinion on or consent to the proposed assignment at the expiry

the period referred to in sub-article

(7)

this article, the assignment shall be deemed to be agreed.

(9)An assignment effected in accordance with this Article shall be published subject to the provisions

sub-article

(1)

this Article by advertisement once in Iris Oifigiúil and once in each

two daily newspapers published in the State and published in the Member State where the risk is situated in accordance with the law

that Member State.

(10)An assignment effected in accordance with this Article shall be valid against the policyholders, the insured persons and any other persons having rights or obligations arising out

the insurance policies assigned. 57 Health Insurance. 57.

(1)Notwithstanding anything to the contrary in the Insurance Acts and Regulations, health insurance contracts included in class 2

Part A

Annex I to these Regulations which serve as a partial or complete alternative to health insurance cover provided by the statutory social security system shall comply with the general good requirements

the State.

(2)In this Article— the "general good" includes a requirement that such insurance contracts referred to in sub-article
(1)

this Article provide for open enrolment, community rating and lifetime cover, in accordance with any enactment for the time being in force. 58 Sections 93 and 94

the Insurance Act, 1936 . 58. For the purposes

sections 93 and 94

the Insurance Act, 1936 , and whenever the context so requires, every insurance policy, bond, certificate or other instrument

insurance issued by an insurance undertaking or syndicate carrying on business either by way

services or by way

establishment in respect

risks situated in the State shall be deemed to be issued in the State, and all moneys which become or may become due and payable by such insurance undertaking or syndicate under such insurance policy shall be payable and paid in the State, unless the policy otherwise provides. 59 Penalties. 59.

(1)Insurance undertakings and all persons concerned shall comply with these Regulations including any applicable decision, direction, requirement or request

the Minister thereunder.

(2)A person who fails to comply with any provision

these Regulations shall be guilty

an

fence and shall be liable on summary conviction to a fine not exceeding £1,500.

(3)If, after conviction

an

fence, a person continues to contravene the provision, that person shall be guilty

an

fence on each day on which the contravention continues and shall be liable on summary conviction to a fine not exceeding £1,500 for each such

fence.

(4)Where an

fence under these Regulations is committed by a body corporate and is proved to have been so committed with the consent or connivance

or to be attributable to any neglect on the part

a director, manager, secretary or other

ficer

the body corporate, the director, manager, secretary or other

ficer or any person purporting to act in such capacity shall, as well as the body corporate, be guilty

an

fence and shall be liable to be proceeded against and punished accordingly.

(5)A prosecution for an

fence under these Regulations may be brought by the Minister. 60 Fees. 60.

(1)An application to the Minister for an authorisation under these Regulations shall be in writing and shall, when filled in and completed by or on behalf

the applicant for such authorisation, be sent by post to or left with the Secretary

the Department

Enterprise and Employment and shall be accompanied by— ( a ) if the application is by an undertaking mentioned in Article 6

(6)(a)

these Regulations, a fee

£4,000, ( b ) if the application is by an insurance undertaking mentioned in Article 6

(6)(b)

these Regulations, a fee

£1,000, ( c ) if the application is by an insurance undertaking mentioned in Article 6

(6)(a)

these Regulations which proposes to establish a branch outside the State, a fee

£2,000, ( d ) if the application is by an undertaking mentioned in Article 48

(1)

these Regulations, a fee

£2,000, ( e ) if the application is by an undertaking mentioned in Article 48

(2)

these Regulations, a fee

£1,000,

(2)The Minister may, by order, amend any amount specified in paragraphs (a) to (e)

sub-article

(1)

this Article. ANNEX I A. Classification

risks according to classes

insurance 1. Accident — fixed pecuniary benefits — benefits in the nature

indemnity — combinations

the two — injury to passengers 2. Sickness — fixed pecuniary benefits — benefits in the nature

indemnity — combinations

the two 3. Land Vehicles (other than railway rolling stock) All damage to or loss

— land motor vehicles — land vehicles other than motor vehicles 4. Railway rolling stock All damage to or loss

railway rolling stock 5. Aircraft All damage to or loss

aircraft 6. Ships (sea, lake and river and canal vessels) All damage to or loss

— river and canal vessels — lake vessels — sea vessels 7. Goods in transit (including merchandise, baggage, and all other goods) All damage to or loss

goods in transit or baggage, irrespective

the form

transport 8. Fire and natural forces All damage to or loss

property (other than property included in classes 3,4,5,6 and 7) due to — fire — explosion — storm — natural forces other than storm — nuclear energy — land subsidence 9. Other damage to property All damage to or loss

property (other than property included in classes 3, 4, 5, 6 and 7) due to hail or frost, and any event such as theft, other than those mentioned under 8 10. Motor vehicle liability All liability arising out

the use

motor vehicles operating on the land (including carrier's liability) 11. Aircraft liability All liability arising out

use

aircraft (including carrier's liability) 12. Liability for ships (sea, lake and river and canal vessels) All liability arising out

the use

ships, vessels or boats on the sea, lakes, rivers or canals (including carrier's liability)

  1. General liability All liability other than those forms mentioned under Nos. 10, 11 and 12
  2. Credit — insolvency (general) — export credit — instalment credit — mortgages — agricultural credit
  3. Suretyship — suretyship (direct) — suretyship (indirect)
  4. Miscellaneous financial loss — employment risks — insufficiency

income (general) — bad weather — loss

benefits — continuing general expenses — unforeseen trading expenses — loss

market value — loss

rent or revenue — indirect trading losses other than those mentioned above — other financial loss (non-trading) — other forms

financial loss 17. Legal expenses Legal expenses and costs

litigation 18. Touring assistance Assistance for persons who get into difficulties while travelling, while away from home or while away from their permanent residence The risks included in a class may not be included in any other class except in the cases referred to in Part C. B. Description

authorisations granted for more than one class

insurance Where the authorisation simultaneously covers: ( a ) Classes Nos. 1 and 2, it shall be named "Accident and Health Insurance"; ( b ) Classes Nos. 1 (fourth indent), 3, 7 and 10, it shall be named "Motor Insurance"; ( c ) Classes Nos. 1 (fourth indent), 4, 6, 7 and 12, it shall be named "Marine and Transport Insurance"; ( d ) Classes Nos. 1 (fourth indent), 5, 7 and 11, it shall be named "Aviation Insurance"; ( e ) Classes Nos. 8 and 9, it shall be named "Insurance against Fire and other Damage to property"; ( f ) Classes Nos. 10, 11, 12 and 13, it shall be named "Liability Insurance"; ( g ) Classes Nos. 14 and 15, it shall be named "Credit and Suretyship Insurance"; ( h ) All classes, it shall be named at the choice

the Member State in question, which shall notify the other Member States and the Commission

its choice. C. Ancillary risks An undertaking obtaining an authorisation for a principal risk belonging to one class or a group

classes may also insure risks included in another class without an authorisation being necessary for them if they: — are connected with the principal risk, — concern the object which is covered against the principal risk, and — are covered by the contract insuring the principal risk. However, the risks included in classes 14, 15 and 17 in Part A

this Annex may not be regarded as risks ancillary to other classes. Nonetheless, the risk included in class 17 (legal expenses insurance) may be regarded as an ancillary risk

class 18 where the conditions laid down in the first paragraph are fulfilled, where the main risk relates solely to the assistance provided for persons who fall into difficulties while travelling, while away from their permanent residence. Legal expenses insurance may also be regarded as an ancillary risk under the conditions set out in the first paragraph where it concerns disputes arising out

, or in connection with, the use

sea-going vessels. D. Correspondence between classes

non-life insurance licensed under the Insurance Act, 1936 , and the classes

the Annex to Council Directive 73/239/EEC

(1)
(2)
(3)Classes

insurance business licensed under Insurance Act, 1936 . Equivalent classes

insurance business specified under Section a

the Annex to Council Directive 73/239/EEC. Groups

Classes specified under Section B

the Annex to the directive into which those in Column

(2)fall. Fire 8 e Accident 1, 2 a Employers Liability 13 f Mechanically Propelled Vehicle 1, 3, 7, 10 b Public Liability 13 f Engineering 9, 13 e and f Glass 9 e Guarantee 9, 15 e and g Burglary 9 e Bond Investment 16 — ANNEX II PART A Solvency Margin 1. An insurance undertaking whose head

fice is situated in the State shall establish an adequate solvency margin in respect

its entire business in accordance with this Annex. 2. The solvency margin shall correspond to the assets

the insurance undertaking, free

all foreseeable liabilities, less any intangible items, and in calculating the amount

the solvency margin the following shall be considered: ( a ) the paid up share capital or, in the case

a mutual insurance undertaking, the effective initial fund plus any members' accounts which meet all the following criteria: (i) the memorandum and articles

association must stipulate that payments may be made from these accounts to members only insofar as this does not cause the solvency margin to fall below the required level, or, after the dissolution

the insurance undertaking, if all the insurance undertaking's other debts have been settled; (ii) the memorandum and articles

association must stipulate, with respect to any such payments for reasons other than the individual termination

membership, that the competent authorities must be notified at least one month in advance and can prohibit the payment within that period and (iii) the relevant provisions

the memorandum and articles

association may be amended only after the competent authorities have declared that they have no objection to the amendment, without prejudice to the criteria stated in (a) and (b); ( b ) one-half

the unpaid share capital or the initial fund, once the paid-up part reaches 25 per cent.

that share capital or fund, ( c ) reserves (including both statutory reserves and free reserves) not corresponding to underwriting liabilities, ( d ) any carry-forward

profits, ( e ) in the case

a mutual or mutual-type association with variable contributions, any claim which it has against its members by way

a call for supplementary contribution, within the financial year, up to one-half

the difference between the maximum contributions and the contributions actually called in, and subject to a limit

50 per cent.

the margin, ( f ) at the request

, and upon proof being shown to the Minister by the insurance undertaking, any hidden reserves resulting from underevaluation

assets insofar as such hidden reserves are not

an exceptional nature. ( g ) with the consent

the Minister, preferential share capital and subordinated loan capital up to 50 per cent.

the margin, no more than 25 per cent.

which shall consist

subordinated loans with a fixed maturity, or fixed-term preferential share capital, if the following minimum criteria are met: (i) in the event

the bankruptcy or liquidation

the insurance undertaking, binding agreements must exist under which the subordinated loan capital or preferential share capital ranks after the claims

all other debts outstanding at the time have been settled. Subordinated loan capital must fulfil the following additional conditions: (ii) only fully paid-up funds may be taken into account; (iii) for loans with a fixed maturity, the original maturity must be at least five years. No later than one year before the repayment date the insurance undertaking must submit to the competent authorities for their approval a plan showing how the solvency margin will be kept at or brought to the required level at maturity, unless the extent to which the loan may rank as a component

the solvency margin is gradually reduced during at least the last five years before the repayment date. The Minister may authorise the early repayment

such loans provided application is made by the issuing insurance undertaking and its solvency margin will not fall below the required level; (iv) loans the maturity

which is not fixed must be repayable only subject to five years' notice unless the loans are no longer considered a component

the solvency margin or unless the prior consent

the Minister is specifically required for early repayment. In the latter event the insurance undertaking must notify the Minister at least six months before the date

the proposed repayment, specifying the actual and required solvency margins both before and after that repayment. The Minister shall authorise repayment only if the insurance undertaking's solvency margin will not fall below the required level; (v) the loan agreement must not include any clause providing that in specified circumstances, other than the winding-up

the insurance undertaking, the debt will become repayable before the agreed repayment dates; (vi) the loan agreement may be amended only after the competent authorities have declared that they have no objection to the amendment; ( h ) securities with no specified maturity date and other instruments that fulfil the following conditions, including preferential shares other than those mentioned in the preceding indent, up to 50 per cent.

the margin for the total

such securities and the subordinated loan capital referred to in the preceding indent: ( a ) they may not be repaid on the initiative

the bearer or without the prior consent

the competent authority; ( b ) the contract

issue must enable the insurance undertaking to defer the payment

interest on the loan; ( c ) the lender's claim on the insurance undertaking must rank entirely after those

all non-subordinated creditors; ( d ) the documents governing the issue

the securities must provide for the loss-absorption capacity

the debt and unpaid interest, while enabling the insurance undertaking to continue its business; ( e ) only full paid-up amounts may be taken into account. 3. ( a ) Subject to sub-paragraph (b), the solvency margin shall be determined on the basis either

the annual amount

premiums or contributions, or

the average burden

claims for the preceding three financial years. ( b ) In the case

an insurance undertaking which substantially underwrites only one or more

the risks

credit, storm, hail, frost, the preceding seven years shall be taken as the period for the reference for the average burden

claims. 4. Subject to the provisions

Part B

this Annex the amount

the solvency margin shall be equal to the higher

the following two results:— ( a ) First result (premium basis): (i) the premiums or contributions (inclusive

charges ancillary to premiums or contributions) due in respect

all direct business in the last financial year for all financial years, shall be aggregated; (ii) to this aggregate there shall be added the amount

premiums accepted for all reinsurance in the last financial year; (iii) from this sum there shall be deducted the total amount

premiums or contributions cancelled in the last financial year, as well as the total amount

taxes and levies pertaining to the premiums or contributions entering into the aggregate; (iv) the amount so obtained shall be divided into two portions, the first portion extending up to 10 million units

account, the second comprising the excess: 18 per cent. and 16 per cent.

these portions respectively shall be calculated and added together; (

  1. v)the first result shall be obtained by multiplying the sum calculated in accordance with clauses (
  2. i)to (
  3. iv)by the ratio existing in respect

the last financial year between the amount

claims less reinsurance recoverable and the gross amount

claims, but this ratio may in no case be less than 50 per cent. ( b ) Second result (claims basis): (i) the amounts

claims paid in respect

direct business (without any deduction

claims recoverable from reinsurers and retrocessionaires) in the periods referred to in paragraph 4

this Annex shall be aggregated; (ii) to this aggregate there shall be added the amount

claims paid in respect

reinsurance or retrocessions accepted during the same periods; (iii) to this sum there shall be added the amount

provisions or reserves for outstanding claims established at the end

the last financial year both for direct business and for reinsurance acceptances; (iv) from this sum there shall be deducted the amount

recoveries effected during the periods referred to in paragraph 3

this Annex; (v) from the sum then remaining there shall be deducted the amount

provisions or reserves for outstanding claims established at the commencement

the second financial year preceding the last financial year for which there are accounts, both for direct business and for reinsurance acceptances; (vi) one-third or one-seventh

the amount so obtained according to the period

reference established in paragraph 3

this Annex shall be divided into two portions, the first extending up to seven million units

account and the second comprising the excess; 26 per cent. and 23 per cent.

these portions respectively shall be calculated and added together; (vii) the second result shall be obtained by multiplying the sum calculated in accordance with this paragraph by the ratio existing in respect

the latest financial year between the amount

claims less reinsurance recoverable and the gross amount

claims, but this ratio may in no case be less than 50 per cent. 5. The fractions applicable to the portions referred to in paragraph 4

this Annex shall each be reduced to a third in the case

health insurance practised on a similar technical basis to that

life assurance, if— ( a ) the premiums paid are calculated on the basis

sickness tables according to the mathematical method applied in life insurance; ( b ) a reserve is set up for increasing age; ( c ) an additional premium is collected in order to set up a safety margin

an appropriate amount; ( d ) the insurer may only cancel the contract before the end

the third year

insurance at the latest; ( e ) the contract provides for the possibility

increasing premiums or reducing payment even for current contracts. ANNEX II PART B Guarantee Fund 1. This Part

the Annex shall be subject to the provisions

the European Communities (Non-Life Insurance) (Amendment) Regulations, 1991 ( S.I. No. 5

1991 ). 2. Subject to Article 4, the amount

the guarantee fund shall be equal to one-third

the solvency margin required to be established by Part A

this Annex. 3. The amount

the guarantee fund shall not be less than— ( a ) 1,400,000 ECU in a case where all or some

the risks included in that class are covered, as respects an undertaking for which the annual amount

premiums

contributions due in the class listed in Part A

Annex I at reference number 14 for each

the preceding three financial years exceeded 2,500,000 ECU or 4 per cent.

the total amount

premiums or contributions receivable by that undertaking, ( b ) 400,000 ECU in a case where all or some

the risks included in any one

the classes listed in Part A

Annex I at reference numbers 10, 11, 12, 13 and 15 and (as respects undertakings other than those referred to in paragraph (a)) reference number 14 are covered, and ( c ) 400,000 units

account in a case where all or some

the risks included in one

the classes listed in Part A

Annex I at reference numbers 10, 11, 12, 13, 14, or 15 are covered, ( d ) 300,000 units

account in a case where all or some

the risks included in one

the classes listed in Part A

Annex I at reference numbers 1, 2, 3, 4, 5, 6, 7, 8, 16 and 18 are covered, ( e ) 200,000 units

account in a case where all or some

the risks included in one

the classes listed in Part A

Annex I at reference numbers 9 or 17 are covered. 4. Where the business carried on by an insurance undertaking covers several classes or several risks, only that class or risk for which the highest amount is required shall be taken into account in establishing the appropriate minimum amount under Article 3

Part B

this Annex. 5. In the case

mutual associations and mutual type associations, the amount

the minimum guarantee fund required by Article 3

Part B

this Annex may be reduced by one-fourth on application to the Minister. 6. ( a ) Where an insurance undertaking carrying on credit insurance is required to increase the fund referred to in Article 3 (c) to 1,400,000 ECU, such undertaking shall have: (i) a period

three years in which to bring the fund up to 1,000,000 ECU, (ii) a period

five years in which to bring the fund up to 1,200,000 ECU, (iii) a period

seven years in which to bring the fund up to 1,400,000 ECU, ( b ) The periods referred to in paragraph (a)

this sub-article shall run from the date from which the conditions referred to in Article 3 (a) are fulfilled. ANNEX III VALUATION

ASSETS

  1. Interpretation
  2. In this Annex, unless the context otherwise requires— "approved credit institution" means a credit institution as defined in Article 1

the first Council Directive on the co-ordination

laws, regulations and administrative provisions relating to the taking up and pursuit

the business

credit institutions (77/780/EEC)

(9)authorised in a Member State or other institution approved by the Minister; "approved financial institutions" means any

the following— ( a ) the Central Bank

a Member State, ( b ) the European Bank for Reconstruction and Development, ( c ) the European Investment Bank,

(9)O.J. L322, 17.12.1977, page 30. ( d ) the European Communities, ( e ) the International Bank for Reconstruction and Development, ( f ) the International Finance Corporation, ( g ) the International Monetary Fund, ( h ) such other institution as may be approved by the Minister; "approved securities" means any

the following— ( a ) securities

the Government (including Savings Certificates), ( b ) securities guaranteed as to capital and interest by the Government, ( c ) stocks, securities or mortgages issued by and charged on all or any

the property or revenues

a local authority in the State, ( d ) any loan to, or deposit with, an approved credit institution or an approved financial institution, ( e ) any securities issued or guaranteed by, and any deposits

cash with any government, public or local authority or nationalised industry or undertaking, which belongs to Zone A as defined in the Council Directive on a solvency ratio for credit institutions (89/647/EEC)

(10); ( f ) any loan to a Member State, to a regional or local authority in a Member State, or to an international organisation

which one or more Member States are members; "asset" includes part

an asset; "building society" means a bui

🔗 To official source

AI explanation based on the official legal text. Indicative, not a substitute for legal advice.