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S.I. No. 360/1994 - European Communities (Life Assurance) 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. 360/1994 - European Communities (Life Assurance) Framework Regulations, 1994. S.I. No. 360/1994 - European Communities (Life Assurance) Framework Regulations, 1994. AmendmentsLeasuithe ARRANGEMENT

REGULATIONS PART 1 Citation and Commencement, Interpretation, Scope and Taking up the Business

Life Assurance. Articles

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

Court.

  1. Authorisation/composite insurance undertakings.
  2. Conditions when applying for authorisation.
  3. Notification

conditions and documents. 9. Identities

shareholders. PART 2 Financial Supervision, Technical Reserves Provisions, Annual Returns, Accounts and Investigations, Statements, Audit and Auditor's Report, Certificates. 10. Financial supervision

insurance undertaking/transactions with a related company.

  1. On the spot verification.
  2. Maintenance/determination

technical reserves, including mathematical reserves, solvency margin, determination

liabilities, localisation

assets, currency matching, register

assets.

  1. Annual returns, statistical documents.
  2. Enforcement

continued compliance with obligations

  1. Periodic actuarial investigations.
  2. Amount

liabilities and value

assets.

  1. Accounts and returns laid before annual general meeting.
  2. Modification

Insurance Acts in relation to accounts and other documents. 19. Deposit

documents with Minister. 20. Lodging

documents in Companies

fice. 21. Laying

documents before Oireachtas.

  1. Accounts and statements.
  2. Annual accounts.
  3. Contents and form

accounts.

  1. Revenue account.
  2. Additional information.
  3. Profit and loss account.
  4. Balance sheet.
  5. Periodic actuarial investigation.
  6. Signature

documents.

  1. Audit and auditor's report.
  2. Certificates.
  3. Transitional provisions.
  4. General: References to Community deposit undertaking. PART 3 Assignment

Policies, Failure to Comply with Technical Reserves Provisions including Mathematical Reserves, Withdrawal/Lapse

Authorisation 35. Assignment

policies.

  1. Failure to comply with technical reserves provisions including mathematical reserves.
  2. Withdrawal/lapse

authorisation. 38. Provisions applying in the case

revocation. 39. Reasons for revocation. PART 4 Qualifying Holdings, Obligation

Professional Secrecy/Exchanges

Confidential Information

  1. Qualifying holdings.
  2. Obligation

professional secrecy/exchanges

confidential information. PART 5 Choice

Law, General Good Requirements, Notification

Documents, Policyholder Disclosure, Cancellation Rights

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

documents/scales

premiums. 45. Policyholder disclosure rules/cancellation rights. PART 6 Right

Establishment, Freedom to Provide Services, General Conditions, Prevention

Irregularities 46. 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. 51. Conditions for carrying on insurance business by way

services into the State.

  1. Amendment to services information.
  2. General conditions related to services and branch insurance business.
  3. Prevention

irregularities. PART 7 Advertising, Winding-up, Statistical Requirements

  1. Advertising.
  2. Winding-up.
  3. Statistical information.
  4. Statistical requirement regarding services and branch insurance business.
  5. Statistical information in the general good. PART 8 Fiscal Arrangements, Acquired Rights, Right

Appeal

  1. Fiscal arrangements.
  2. Acquired rights.
  3. Right

appeal to Court. PART 9 Provisions Related to Branches

Third Country Insurance Undertakings, Rules Applicable to the Assignment

Third Country Branch Policies, Penalties, Fees

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

admission.

  1. Technical reserves including mathematical reserves.
  2. Solvency margin.
  3. Guarantee Fund.
  4. Annual returns.
  5. Advances under Article 30

the First Directive. 71. Application

Articles 36 and

  1. Assignment

third country branch insurance policies.

  1. Penalties.
  2. Fees. PART 10 Reciprocity Provisions, Interpretation

Sections 93 and 94

the Insurance Act, 1936 75. Application

articles 75 to 79 to third country undertakings and acquisitions by such undertakings. 76. Definitions. 77. Notification to the Commission

authorisations and acquisitions

undertakings governed by the laws

a third country. 78. Notification to the Commission

difficulties encountered in establishing or carrying on business in a third country. 79. Reciprocity measures. 80. Interpretation

Sections 93 and 94

the Insurance Act, 1936. ANNEXES Annex I Defined classes

insurance. Annex II Solvency margin and guarantee fund. Annex III Policyholder information. Annex IV Determination

liabilities. Annex V Valuation

assets. Annex VI Implicit items. Annex VII Reinsurance, currency matching, localisation, documents

title. SCHEDULES Schedule 1 Summary

accounts to be completed annually (forms 1 to 24). Schedule 2 Forms

account and additional information (forms 1 to 21). Schedule 3 Certificates by auditors, directors and actuary (forms 22 to 24). Schedule 4 Abstract

life assurance business by the appointed actuary (forms 25 to 30). Schedule 5 Statement

life assurance business by the appointed actuary (forms 31 to 44). Schedule 6 Value

dependants. Schedule 7 Assets to be taken into account only to a specified extent. S.I. No. 360

  1. EUROPEAN COMMUNITIES (LIFE ASSURANCE) 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. 79/267/EEC

5 March, 1979, Council Directive No. 90/619/EEC

8 November, 1990, and Council Directive No. 92/96/EEC

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

Life Assurance. 1 Citation and commencement. 1.

(1)These Regulations may be cited as the European Communities (Life Assurance) 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

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 2990, 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,— "appointed actuary" means the person appointed to act as actuary to an undertaking to carry out any function relating to the business

that undertaking which is required by the Insurance Acts and Regulations to be undertaken by an actuary, being a Fellow Member

the Society

Actuaries in Ireland; "authorisation" means— ( a ) authorisation granted by the Minister under these Regulations or under the Regulations

1984 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 3

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; "capital at risk" means the amount payable on the happening

the insured event less the mathematical reserve in respect

the relevant contracts; "carrying on insurance business by way

establishment" means the covering

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

fice or branch situated in another Member State; "cede" and "cession" in relation to reinsurance, include retrocede and retrocession; "charges for management" means amounts chargeable in respect

the management

an internal linked fund in accordance with the conditions

those contracts

insurance under which property linked benefits are linked to the value

the fund or units

the fund; "claim" means a claim against an insurance undertaking under a contract

insurance; "claims payable" means the amount due to be paid by an undertaking during a financial year in respect

claims whether or not paid during that year; "commission payable" means, in relation to a financial year

an insurance undertaking, the amount, whether or not paid during that year, recorded during that year as due to intermediaries and cedents in respect

the inception, amendment or renewal

contracts

insurance; "commitment" means a commitment represented by one

the kinds

insurance or operations referred to in Article 1

the First Directive; "Community deposit undertaking" means a life assurance undertaking whose head

fice is not situated in the territory

another Member State and whose required Community minimum solvency margin is supervised in another Member State in accordance with Article 30

the First Directive; "contract

insurance" includes a contract

reinsurance; " the Court" means the High Court; "deposit back arrangement" in relation to any contract

reinsurance means an arrangement whereby an amount is deposited by the reinsurer with the cedent; "designated assets" has the meaning assigned to it in Article 2

(16)

Annex V to these Regulations; "direction" means a direction issued by the Minister in accordance with Article 3; "the Directive" means Council Directive 92/96/EEC

(1); "external branch undertaking" means a life assurance undertaking whose head

fice is not situated in the territory

a Member State and which is not a Community deposit undertaking or an Irish deposit undertaking; "financial year" means, in relation to an undertaking, the period in respect

which the accounts

the undertaking are made up, whether the period is a year or not; "the First Directive" means Council Directive 79/267/EEC

(2); "general good" shall be construed in accordance with Article 43; "gross premiums" in relation to a financial year— ( a ) means premiums after deduction

discounts, refunds, and rebates

premium but before deduction

premiums for reinsurance ceded and

commission payable by an undertaking, and ( b ) includes premiums receivable by the undertaking under reinsurance contracts accepted by the undertaking; "home Member State" means the Member State in which the head

fice

the insurance undertaking covering the commitment is situated; "implicit items" has the meaning assigned to it in Annex VI

(1)to these Regulations; "industrial assurance business" has the meaning assigned to it by Section 3

the Insurance Act, 1936 (No. 45

1936), as amended by the Insurance Act, 1989 (No. 3

1989); "insurance" includes "assurance"; "insurance broker", "insurance agent" and

(1)O.J. L360, 9.12.1992, pages 1-27.
(2)O.J. L63, 13.3.1979, page 1. "insurance intermediary" have the meanings assigned to them in Section 2

the Insurance Act, 1989 ; "insurance undertaking" or "undertaking" means— ( 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, the holder

an authorisation under Article 27

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 3

the Directive; "internal linked fund" means an account to which an insurance undertaking appropriates certain linked assets and which may be sub-divided into units the value

which is determined by the undertaking by reference to the value

those linked assets; "Irish deposit undertaking" means a life assurance undertaking whose head

fice is not situated in the territory

another Member State and whose required community minimum solvency margin is supervised in the State in accordance with Article 30

the First Directive; "Irish head

fice insurance undertaking" means a life assurance undertaking whose head

fice is in the State; "life assurance" means insurance

a class specified at a reference number in Part A

Annex 1 to these Regulations; "life assurance business assets" and "life assurance business liabilities" mean respectively assets

a life assurance undertaking which are, for the time being, identified as representing the life assurance fund or funds maintained by the undertaking in respect

its life assurance business and liabilities

the insurance undertaking which are attributable to its life assurance business; "life assurance liabilities" means liabilities

a life assurance undertaking arising under or in connection with contracts for life assurance business including liabilities arising from deposit back arrangements; "linked assets" means life assurance business assets

an insurance undertaking which are, for the time being, identified in the records

the insurance undertaking as being assets by reference to the value

which property linked benefits are to be determined; "linked contract" means a contract falling within Class III

life assurance business as specified in Annex I to these Regulations, and "non-linked contract" shall be construed accordingly; "management expenses" means expenses incurred in the administration

an undertaking or its business which are not commission payable; "mathematical reserves" means the provision made by a life assurance undertaking to cover liabilities (excluding liabilities which have fallen due and liabilities arising from deposit back arrangements) arising under or in connection with contracts for life assurance business; "Member State" means a Member State

the European Communities; "Member State

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

the commitment" means 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; "Member State

the provision

services" means the Member State

the commitment, as defined in Article 2 (e)

the Second Directive, where the commitment is covered by an insurance undertaking or a branch situated in another Member State; "Minister" means the Minister for Enterprise and Employment; "permanent health contracts" means the business

effecting and carrying out contracts

insurance providing specified benefits against risks

persons becoming incapacitated in consequence

sustaining injury as a result

an accident or

an accident

a specified class or

a sickness or infirmity, being contracts that— ( a ) are expressed to be in effect for a period

not less than five years or until normal retirement age for the persons concerned, or without limit

time, and ( b ) either: (i) are not expressed to be terminable by the insurance undertaking under the terms

the contract, or (ii) are expressed to be so terminable only in special circumstances mentioned in the contract, provided that the insurance is carried on by an insurance undertaking in the State which holds an authorisation granted in respect

Class IV in Annex I to these Regulations; "person," "body," "undertaking" and "insurance undertaking" or "assurance undertaking" include any legal entity specified in Article 5

the Directive; "premiums" includes the consideration for the granting

an annuity; "premiums receivable" means— ( a ) in the case

a linked contract the liability under which has been valued on the basis

premiums actually received by the insurance undertaking in a financial year, the amount

premiums received in respect

that contract, and ( b ) in any other case, the premiums recorded in the insurance undertaking's books, in respect

a financial year as due to it in respect

contracts commencing in earlier financial years but not accounted for in the insurance undertaking's revenue account prior to that financial year, whether or not received by the insurance undertaking during that financial year after deducting discounts, refunds and rebates

premiums as recorded in respect

the same period; and for the purpose

determining whether a premium is due no account shall be taken

any credit arrangements made in respect thereof; "profit and loss account" in relation to an insurance undertaking not trading for profit, means an income and expenditure account; "property linked benefits" means benefits provided for under any contract the effecting

which constitutes the carrying on

life assurance business, and which are determined by reference to the value

, or the income from, property

any description (whether or not specified in the contract) or by reference to fluctuations in, or an index

, the value

property

any description (whether or not specified in the contract); "receivable" in relation to income during a financial year, means, unless otherwise specified, such amounts as become due to the undertaking, whether or not received by the insurance undertaking during that year, including (where appropriate) income which has accrued; "the Regulations

1984" means the European Communities (Life Assurance) Regulations, 1984 ( S.I. No. 57

1984 ); "the Regulations

1986" means the European Communities (Life Assurance Accounts, Statements and Valuations) Regulations, 1986 ( S.I. No. 437

1986 ); "reinsurance" includes reassurance; "reinsurance" and "reinsurer" include retrocession and retrocessionaire, respectively; "reinsurance premiums payable" means the premiums recorded in an insurance undertaking's books during a financial year as due by it to reinsurers in respect

reinsurance contracts commencing in the year or reinsurance contracts commencing in earlier financial years but not accounted for in the undertaking's revenue account prior to that financial year, whether or not paid by the insurance undertaking during that financial year, after deducting discounts, refunds and rebates

premiums as recorded in the same period, and for the purpose

determining whether a premium is due no account shall be taken

any credit arrangement made in respect thereof; "required minimum solvency margin" means the greater

the appropriate required solvency margin and the amount

the appropriate minimum guarantee fund and "required Community minimum solvency margin" and "required Irish minimum solvency margin" shall be construed accordingly; "the Second Directive" means Council Directive 90/619/EEC

(3); "supervisory authority" means, in respect

any territory, the authority charged by law with the duty

supervising the activities

undertakings in that territory; "unit

account" means the ECU used by the European Monetary Co-operation Fund, the conversion value

which, to the currency

the State, shall be, as from 31 December

each year, the rate published in the

ficial Journal

the Communities for the last day

the preceding October for which conversion values

the ECU were published for the currencies

all States that were then Member States; "the valuation date" in relation to an actuarial investigation, means the date to which the investigation relates; "zillmerising" means the method known by the name for modifying the net premium reserve method

valuing a life assurance policy by increasing the part

the future premiums for which credit is taken so as to allow for initial expenses.

(2)In these Regulations, a reference to a Part, Article, Annex or Schedule is to a Part, Article, Annex or Schedule

these Regulations and a reference to a paragraph is to the paragraph

the Article in which the reference occurs, unless it is indicated that reference to some other provision is intended and a reference to a numbered Form is to the Form as numbered in a Schedule.

(3)O.J. L330, 29.11.1990, page 50.
(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)In these Regulations a reference to any enactment, Council Directive, order or Regulation includes reference thereto as subsequently amended.
(5)These Regulations shall have effect, any provision to the contrary in any enactment, order or 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 47

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. 4 Scope. 4.

(1)Subject to sub-article
(2)

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

the classes specified in Part A

Annex I and to undertakings carrying on such insurance.

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

insurance specified in Articles 2

(1)and 2
(4)

the First Directive; ( b ) the operations specified in Articles 2

(2)and 2
(3)

the First Directive; ( c ) the organisations and mutual associations excluded from the application

the First Directive by Article 3 thereof; ( d ) the bodies referred to in Article 4

the First Directive. 5 Powers

Court. 5. The Court shall have full jurisdiction to deal with any application, appeal or other proceeding 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 Authorisation/omposite insurance undertakings. 6.

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

life assurance 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

life assurance 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)No insurance undertaking, whose head

fice is situated in the State, may be authorised to carry on both the business

life assurance and the business

non-life insurance

a class referred to in Annex I to the European Communities (Non-Life Insurance) Framework Regulations, 1994.

(5)An undertaking whose head

fice is situated in the State, and which has financial, commercial or administrative links with an insurance undertaking carrying on insurance

a class referred to in Annex I to the European Communities (Non-Life Insurance) Framework Regulations, 1994, shall provide the Minister, in such form as the Minister sees fit, with information relating to the arrangements under which any apportionment

expenses

management and income has been made between the insurance undertakings and the basis for such arrangements, and shall provide the Minister on request with copies

any agreement or other documents relevant to any such arrangements.

(6)The same shall be required

an insurance undertaking whose head

fice is situated in the State, which is the holder

an authorisation under the European Communities (Non-Life Insurance) Framework Regulations, 1994, and which has financial, commercial or administrative links with an undertaking carrying on insurance

a class referred to in Annex I to these Regulations.

(7)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.

(8)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.

(9)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 to only part

a class as listed in Annex I to these Regulations, the authorisation shall relate to that part only.

(10)An authorisation may be restricted to industrial assurance business and a body may not carry on industrial assurance business by virtue

an authorisation granted under these Regulations unless the authorisation expressly extends to such business.

(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, a society registered under the Industrial and Provident Societies Acts, 1893 to 1978, or a Society registered under the Friendly Societies Acts, 1896 to 1977; 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 provided for in these Regulations 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 commitments which the undertaking proposes to cover; (

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

the costs

setting up the administrative services and the organisation for securing business and the financial resources intended to meet those costs. ( c ) In addition, for the first three financial years it shall submit to the Minister— (i) a plan setting out detailed estimates

income and expenditure in respect

direct business, reassurance acceptances and reassurance cessions; (ii) a forecast balance sheet; (iii) estimates relating to the financial resources intended to cover its underwriting liabilities and solvency margin. ( d ) It shall possess the minimum guarantee fund referred to in Part B

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

good repute with appropriate professional qualifications or experience.

(3)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 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

Part A

Annex II to these Regulations and, the minimum guarantee fund referred to in Part B

Annex II to these Regulations. 8 Notification

conditions and documents. 8.

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

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

general and special policy conditions, scales

premiums, technical bases used in particular for calculating scales

premiums and technical reserves, 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, technical bases, forms and other aforementioned printed documents.

(2)The Minister may, for the sole purpose

verifying compliance with the rules concerning actuarial principles, require systematic notification

the technical bases used for calculating scales

premiums and technical reserves, provided that requirement does not constitute a prior condition for an insurance undertaking to carry on insurance business in the State.

(3)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. 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, whether direct or indirect, in that 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 undertaking, the Minister is not satisfied as to the qualifications

such shareholders or persons.

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

the size

their holding and any person concerned shall on request furnish information to the Minister.

(4)For the purpose

this Article— a "qualifying holding" means a direct or indirect holding in an undertaking which represents 10 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, Technical Reserves Provisions, Annual Returns, Accounts and Investigations, Statements, Audit and Auditor's Report, Certificates 10 Financial supervision

insurance undertaking. 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, including mathematical reserves, 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. Transactions with a related company.

(4)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 copy

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

(5)In this Article— "related company" has the meaning assigned to it by Annex V to these Regulations. 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, 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 shall, 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 may, in addition, seek such information as required regarding insurance contracts which are effected through or held by intermediaries and any person concerned shall provide such information to the Minister. 12 Maintenance/etermination

technical reserves, including mathematical reserves, solvency margin, determination

liabilities, localisation

assets, currency matching, register

assets. 12.

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

all underwriting liabilities assumed by it, ( b ) an adequate solvency margin and guarantee fund in respect

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

(2)Subject to the provisions

Annex IV to these Regulations relating to the determination

liabilities, the amount

liabilities

an insurance undertaking shall be determined in accordance with generally accepted accounting concepts, bases and policies or other generally accepted methods appropriate for insurance undertakings.

(3)In determining under sub-articles
(1)and
(2)

this Article the amount

liabilities

an insurance undertaking, all contingent and prospective liabilities shall be taken into account but not liabilities in respect

share capital.

(4)Each insurance undertaking shall cover its technical reserves by equivalent assets valued in accordance with the Rules set out in Annex V to these Regulations. The currency matching Rules set out in Annex VII to these Regulations shall apply to such assets, as appropriate.
(5)Detailed rules related to the localisation

assets and the maintenance

assets in relation to reinsurance arrangements are set out in Annex VII to these Regulations.

(6)Every insurance undertaking shall keep a register showing the assets representing the technical reserves, including mathematical 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.

(7)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 reserves in respect

life assurance business carried on in the State.

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

ficer or

ficers

the Minister during normal business hours. 13 Annual returns, statistical documents. 13.

(1)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 undertaking with respect to its entire business.

(2)For the purposes

sub-article

(1)

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 enable the Minister to verify that the technical reserves, including mathematical reserves, mentioned in Article 12

these Regulations are being maintained.

(3)The Minister shall provide the supervisory authority

another Member State with such information as is necessary for the purposes

supervision. 14 Enforcement

continued compliance with obligations 14. 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. 15 Periodic actuarial investigations. 15.

(1)Every insurance undertaking which carries on life assurance business— ( a ) shall, once in every period

twelve months, cause an investigation to be made into its financial condition in respect

that business by the person who for the time being is its appointed actuary; and ( b ) when such an investigation has been made, or when at any other time an investigation into the financial condition

the insurance undertaking has been made with a view to the distribution

profits, or the results

which are made public, shall cause an abstract

the actuary's report

the investigation to be made.

(2)An investigation to which sub-article
(1)(b)

this Article relates shall include— ( a ) a valuation

the liabilities

the undertaking attributable to its life assurance business; and ( b ) a determination

any excess over those liabilities

the assets representing the fund or funds maintained by the undertaking in respect

that business and, where any rights

life assurance policyholders to participate in profits relate to particular parts

such a fund, a determination

any excess

assets over liabilities in respect

each

those parts.

(3)The Minister may require, as and when deemed appropriate, that an undertaking to which sub-article
(1)

this Article applies shall prepare a statement

its life assurance business in accordance with the requirements

Schedule 5, at the date to which the accounts

the insurance undertaking are made up for the purposes

an investigation in pursuance

subparagraph (a)

that paragraph.

(4)For the purposes

any investigation to which this Article applies, the amount

any liabilities and the value

any assets shall be determined in accordance with Annex IV and V, as appropriate. 16 Amount

liabilities and value

assets. 16. Unless otherwise provided in these Regulations, the amount or value given for a liability or an asset

the insurance undertaking shall be the amount or value

that liability or asset as determined in accordance with the provisions

Annex IV and V to these Regulations as appropriate. In the case

an asset

the insurance undertaking to which Annex V to these Regulations does not apply, the value given shall be the value which the asset would have if Annex V to these Regulations were applicable. 17 Accounts and returns laid before annual general meeting. 17.

(1)Every insurance undertaking shall forward to the Minister each year two copies

the accounts and returns laid before its annual general meeting.

(2)The accounts and returns referred to in sub-article
(1)shall be forwarded not later than one month after the annual general meeting. 18 Modification

Insurance Acts in relation to accounts and other documents. 18. The accounts, balance sheets, notes, statements, reports and certificates set out in Schedules 1 to 5 are in substitution for the accounts, balance sheets, abstracts or statements specified in the Insurance Acts, 1909 to 1990, and in the Regulations

1986 insofar as they relate to insurance undertakings authorised or deemed to be authorised under the Regulations

1984. 19 Deposit

documents with Minister. 19.

(1)Every account, balance sheet, note, statement, report and certificate required to be prepared shall be printed and produced in such form or manner as the Minister may require. Five printed copies thereof shall be deposited with the Minister within six months after the close

the period to which the account, balance sheet, note, statement, report or certificate relates: provided that, if in any case it is made to appear to the Minister that the circumstances are such that a period longer than six months should be allowed, the Minister may extend that period by such period not exceeding three months as he thinks fit.

(2)One

the copies

any document deposited under sub-article

(1)

this Article shall be signed by the appropriate person or persons described in Article 30.

(3)The Minister shall consider the documents deposited under sub-article
(1), and if any such document appears to be inaccurate or incomplete in any respect the Minister shall communicate with the undertaking with a view to the correction

any such inaccuracies and the supply

deficiencies.

(4)There shall be deposited with every revenue account and balance sheet

an insurance undertaking any report on the affairs

the insurance undertaking submitted to the shareholders or policyholders

the undertaking in respect

the financial year to which the revenue account and balance sheet relate.

(5)In these Regulations, any reference to an account or balance sheet includes a reference to any note, statement, report

certificates annexed thereto giving information authorised or required by virtue

Articles 22 to 33

these Regulations to be so given. 20 Lodging

documents in Companies

fice. 20. Any document submitted to the Minister under these Regulations shall be lodged in the Companies Registration

fice and shall there be open to inspection by any person, and copies

such documents may be procured by any person on payment

such fees as the Minister may from time to time fix. 21 Laying

documents before Oireachtas. 21. The Minister shall, as soon as may be, lay before each House

the Oireachtas copies

any documents deemed necessary to be submitted under these Regulations and may append to such documents any explanatory statement or commentary which the Minister thinks fit. 22 Accounts and statements. 22. Articles 22 to 33

these Regulations apply with respect to the accounts and statements (as hereinafter specified) required to be prepared by every insurance undertaking pursuant to Article 13

these Regulations. 23 Annual accounts. 23. Every insurance undertaking shall, in respect

each financial year

the insurance undertaking, prepare such

the accounts prescribed in Schedule 1 to these Regulations as are appropriate to the insurance undertaking. 24 Contents and form

account.

  1. Every account, balance sheet, note, statement, report and certificate required to be prepared by an undertaking pursuant to Article 22 shall be prepared in the manner hereinafter specified and shall fairly state the information provided on the basis required by these Regulations. 25 Revenue account.
  2. The revenue account required to be prepared by every insurance undertaking pursuant to Article 23 shall comply with the requirements

Schedule 2 to these Regulations and shall be in Form 1 completed (as may be appropriate) as specified in the instructions to that Form so, however, that— (i) every such insurance undertaking shall prepare a separate account in Form 1 in respect

each life assurance business fund maintained by it, and (ii) where there is more than one fund for life assurance business or for industrial assurance business, the insurance undertaking shall also prepare a summary form for life assurance business or for industrial assurance business as the case may require. 26 Additional information. 26. Every insurance undertaking shall, in accordance with Article 23 and Schedule 2 to these Regulations, including the instructions thereto, prepare— ( a ) in respect

life assurance business— (

  1. i)Forms 2 to 4 and 6, and (
  2. ii)such

Forms 8 to 14 and 21 as are appropriate; and ( b ) in respect

industrial assurance business— (

  1. i)Forms 2, 3, 5 and 7 to 9, and (
  2. ii)uch

Forms 10 to 14 and 21 as are appropriate. 27 Profit and loss account. 27. The profit and loss account required to be prepared by every insurance undertaking under Article 23 shall comply with the requirements

Schedule 2 to these Regulations and shall be prepared in Form

  1. 28 Balance sheet.
  2. The balance sheet required to be prepared by every insurance undertaking in accordance with Article 23, shall comply with the requirements

Schedule 2 to these Regulations and shall be in Forms 15 to 17, 19 and 20 completed (as may be appropriate) as specified in the instructions to those Forms. 29 Periodic actuarial investigation. 29. Save in relation to subparagraph (a) (ii)

this paragraph, for the purposes

Article 15

, life assurance business and industrial assurance business shall be treated separately and— ( a ) the abstract

the report

the actuary on life assurance business— (i) shall comply with the requirements

Schedule 4 to these Regulations and shall contain the information (together with such

Forms 25 to 28 as may be appropriate) specified in that Schedule, and (ii) except in the case

a Community deposit undertaking, shall also include Form 30 and, where appropriate, Form 29; and ( b ) the statement

life assurance business shall comply with the requirements

Schedule 5 and shall contain the information (together with Forms 31 to 44) specified in that Schedule. 30 Signature

documents. 30.

(1)One

the copies

any document required to be prepared in accordance with Articles 22 to 33, except an auditor's report, shall be signed by persons described in sub-articles

(2)or
(3).
(2)In respect

any document relating to business carried on through an Irish head

fice undertaking, the copy shall be signed by— ( a ) in any case— (i) where there are more than two directors

the insurance undertaking, at least two

those directors and, where there are not more than two directors, all the directors; and (ii) the chief executive, if any,

the insurance undertaking or (if there is no chief executive) the secretary; and ( b ) in the case

an abstract or statement under Article 15, the actuary who made the investigation to which the abstract relates or by reference to which the statement was prepared.

(3)In respect

any document relating to business carried on through an agency or branch in the State by a Community deposit undertaking or an external branch undertaking or through agencies or branches in any Member State taken together by an Irish deposit undertaking, the copy shall be signed by— ( a ) in any case— (i) the authorised agent referred to in Article 46

(2)(d) and sub-paragraph (d)

Article 65

and (ii) an

ficer or employee

the insurance undertaking who, either alone or jointly with others, is responsible for the conduct

the whole

the insurance business carried on by the insurance undertaking in the State, and ( b ) in the case

an abstract or statement under Article 15, the actuary who made the investigation to which the abstract relates or by reference to which the statement was prepared.

(4)One

the copies

any auditor's report shall be a copy signed by the auditor. 31 Audit and auditor's report. 31. The documents referred to in Articles 25, 26, 27 and 28 and the certificate referred to in Article 32 (a), shall be audited by a person duly qualified under the Companies Acts, 1963 to 1990, who shall make a report in Form 22 in accordance with the requirements

Part I

Schedule

  1. 32 Certificates.
  2. There shall be annexed to the documents referred to in Articles 25, 26, 27 and 28

these Regulations: ( a ) a certificate in accordance with the requirements

Part 2

Schedule 3 and shall be in Form 23 which shall be signed by the persons required by Article 30 to sign the documents to which the certificate relates; and ( b ) a certificate in accordance with the requirements

Part 3

Schedule 3 and shall be in Form 24 which shall be signed by the appointed actuary. 33 Transitional provisions. 33. Any reference in any provision

these Regulations to a document submitted to the Minister or prepared in respect

a financial year

an insurance undertaking which is a financial year

the insurance undertaking preceding that to which these Regulations first apply shall be construed as a reference to the document so submitted or prepared in accordance with the corresponding provisions

the Insurance Acts and Regulations previously in force. 34 General: References to Community deposit undertaking. 34.

(1)In these Regulations, any reference to life assurance business shall, in relation to a Community deposit undertaking, be taken to refer to life assurance business carried on by it through a branch in the State; and accordingly, any reference to, or requirement imposed in respect

the accounts and balance sheets (including any notes, statements, reports and certificates annexed thereto) shall be taken as referring to, or imposing the requirement in respect

business carried on through that branch.

(2)In these Regulations, any reference to life assurance business shall— ( a ) in relation to an external branch undertaking, be taken to refer to its entire life assurance business and to any life assurance business carried on by it through an agency or branch in the State; and ( b ) in relation to an Irish deposit undertaking, be taken to refer to its entire life assurance business and to any life assurance business carried on by it through an agency or branch in any Member State; and accordingly, any reference to, or requirement imposed in respect

, the accounts and balance sheets (including any notes, statements, reports and certificates annexed thereto) relevant to life assurance business shall be taken as referring to or, as the case may be, imposing the requirement in respect

— (i) accounts prepared in respect

its entire life assurance business, and (ii) accounts prepared in respect

the life assurance business carried on, in the case

an external branch undertaking, by the branch in the State and, in the case

an Irish deposit undertaking, by the branches in question in the Member State taken together. PART 3 Assignment

Policies, Failure to Comply with Technical Reserves Provisions including Mathematical Reserves, Withdrawal/Lapse

Authorisation 35 Assignment

policies. 35.

(1)For the purposes

Section 13

the AssuranceCompanies Act, 1909, and subject to the provisions

Section 36

the Insurance Act, 1989 , and

these Regulations the following provisions shall have effect: ( a ) An assurance 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 service 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 30

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 paragraph (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

the commitment. ( 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 11
(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. 36 Failure to comply with technical reserves provisions including mathematical reserves. 36.

(1)Where an insurance undertaking whose head

fice is situated in the State fails to comply with Article 12

these Regulations the Minister may, after notifying the supervisory authorities

the Member States in which the commitments 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 in accordance with the provisions

sub-article 2 (ii)

Article 7

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. 37 Withdrawal/lapse

authorisation. 37. 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 36

these Regulations, or ( d ) fails seriously in its obligations under the Insurance Acts and Regulations. 38 Provisions applying in the case

revocation. 38. Where an authorisation is revoked under Article 37

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, apply to the Court for an order, which the Court is empowered to make, restricting the free disposal by the undertaking

its assets in accordance with Articles 36

(1), 36
(3)and 36
(4)

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

persons insured by the insurance undertaking and may for this purpose apply to this Court for such order as to the Court may seem fit. 39 Reasons for revocation. 39. Any decision to revoke an authorisation under Article 37

these Regulations shall be supported by precise reasons and notified to the insurance undertaking in question. PART 4 Qualifying Holdings, Obligation

Professional Secrecy/Exchanges

Confidential Information 40 Qualifying holdings. 40.

(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 level

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

the percentage levels referred to in sub-article

(5)

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 any

the percentage levels

the voting rights or capital which that person holds falls below the percentage levels referred to in sub-article

(4)

this Article or 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 shareholding.

(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 purpose

putting an end to that situation, by way

injunction, suspension

the exercise

the voting rights 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, 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. 41 Obligation

professional secrecy/exchanges

confidential information. 41.

(1)Every person to whom this Article is applicable, including auditors and other experts, working or who has worked for or acting or who has 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-articles

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 competent court in civil or commercial proceedings.

(3)Sub-articles
(1)and
(2)

this Article shall not prevent the competent authorities

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 it may be used 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 62 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 dutes. 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 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 5 Choice

Law, General Good Requirements, Notification

Documents, Policyholder Disclosure, Cancellation Rights 42 Law applicable to insurance contracts. 42.

(1)The law applicable to a contract

insurance which covers commitments situated within the State or within other Member States shall be determined in accordance with the following provisions: ( a ) The law applicable to insurance contracts shall be the law

the Member State

the commitment. However, where the law

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

another country. ( b ) Where a policyholder is a natural person whose habitual residence is in a Member State other than that

which the policyholder is a national the parties may choose the law

the Member State

which the policyholder is a national. ( c ) 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. ( d ) A Member State in which various territorial units have their own rules

law concerning contractual obligations shall not be bound to apply the provisions

these Regulations to conflicts which arise between the laws

those units.

(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 commitment arises in the State, the mandatory rules

the law

the State shall be applied, whatever the law applicable to the contract. ( c ) Subject to the preceding subparagraphs

this Article, the law

the State relating to the general rules

private international law concerning contractual obligations shall be applied to the insurance contracts covered by these Regulations. 43 General good requirements. 43. In conformity with the general good in accordance with the laws

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

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

insurance products; ( b ) the provisions

the Sale

Goods and Supply

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

insurance products; ( c ) provisions related to the supervision and regulation

insurance intermediaries under the Insurance Acts and Regulations; ( d ) provisions contained in consumer credit legislation adopted by the State; ( e ) 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. 44 Notification

documents/scales

premiums. 44. The Minister shall not make provisions requiring the prior approval or systematic notification

general and special policy conditions, scales

premiums, technical bases used in particular for calculating scales

premiums and technical reserves, 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. 45 Policyholder disclosure rules/cancellation rights. 45.

(1)An insurance undertaking shall not issue any insurance policy or a copy

an insurance policy in respect

which a proposal has been submitted by a person seeking insurance unless the information set out under Points 1 to 16 in Annex III to these Regulations has already been furnished directly to that person, in writing, in a clear and accurate manner, or the aforesaid information is provided, in the manner prescribed, in conjunction with the cancellation notice referred to in sub-article

(3)

this Article and the insurance policy or copy

such insurance policy. In addition, the information set out under Points 17 to 22 in Annex III shall be provided by the insurance undertaking directly to the policyholder during the term

the insurance contract.

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

this Article including the insurance contract documents or copies thereof shall, subject to section 108

the Insurance Act, 1936 , which provides for the issue

documents in the Irish language, be provided in the English language. Where the law applicable to the contract is the law

another Member State, the policyholder may request that the information including such insurance contract documents or copies thereof be provided in the

ficial language or languages

that Member State.

(3)An insurance undertaking shall allow any person seeking insurance who has submitted a proposal in relation to an individual life assurance policy in respect

a commitment referred to in Article 4

these Regulations and who has received from that undertaking a policy

insurance or a copy

the policy

insurance related to that proposal, a period

fifteen days from the time when it has delivered to that person, or posted to that person directly at the address provided on the proposal form the policy

insurance or a copy thereof within which to serve a notice

cancellation on the insurance undertaking.

(4)The provisions

sub-article

(3)

this Article shall not apply in the case

the following— ( a ) contracts

insurance effected for a term

six months' duration or less; ( b ) contracts

insurance where none

the proposers or policyholders is an individual; ( c ) contracts

creditor insurance effected for the purpose

insuring the repayment

a loan and where it is intended that such a contract will be assigned or deposited with the lender; ( d ) contracts

reinsurance.

(5)Notwithstanding the provisions

sub-article

(3)

this Article, in relation to industrial branch insurance business, the insurance undertaking may deliver, by means

its industrial branch agent, a form

notice

cancellation, the insurance policy and any accompanying documents directly to the person seeking an industrial branch policy

insurance. For this purpose, the form

notice

cancellation shall specify that such person has a period

fifteen days from the date

delivery by the industrial branch agent within which to serve the notice on the insurance undertaking.

(6)The conditions and legal effects

cancellation

insurance contracts to which the provisions

this Article apply including any conditions and legal effects regarding the arrangements for informing a person that the insurance contract has been concluded shall be determined in accordance with the applicable contract law provisions contained in Article 42

these Regulations.

(7)The notice

cancellation referred to in sub-article 3

this Article shall expressly indicate that the person has withdrawn from the proposed insurance contract.

(8)The giving

notice

cancellation by a person shall have the effect

releasing that person from any future obligation arising from the insurance contract.

(9)For the purposes

sub-article

(3)

this Article a notice

cancellation shall be deemed to be served on the insurance undertaking at the time when such notice is posted to an address as specified by the insurance undertaking.

(10)Any sums paid by the person serving the notice

cancellation in connection with the insurance contract shall be refunded in full by the insurance undertaking.

(11)In the case

the serving

notice

cancellation in respect

a single premium life assurance contract, the insurance undertaking may, when the person has withdrawn from the proposed contract, refund the amount

premium paid less any losses incurred by the insurance undertaking as a result

fluctuations in the financial markets during the period

the legal validity

the insurance contract. PART 6 Right

Establishment, Freedom to Provide Services, General Conditions, Prevention

Irregularities 46 Provisions related to right

establishment

a branch outside the State. 46.

(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)The Minister shall, within three months

receipt

all the information referred to in sub-article

(2)

this Article, furnish such information to the supervisory authority

the Member State

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

(4)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.
(5)Where the Minister has reason— ( a ) to believe that the administrative structure

the insurance undertaking is inadequate, or the financial situation

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

the directors

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.

(6)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.

(7)An insurance undertaking may appeal against a refusal or failure to furnish the information in question to the Court. 47 Amendment to branch information. 47. Where an insurance undertaking established in the State intends to change the information given in respect

Article 46

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

these Regulations, it shall furnish 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

(3),
(5),
(6)and
(7)

Article 46

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. 48 Conditions for establishing a branch in the State. 48. 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 46

these Regulations, including 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. 49 Amendment to branch information. 49. Where an insurance undertaking with a branch established in the State intends to change the information given in respect

Article 46

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

these Regulations, it shall furnish a notification

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

Article 48

these Regulations may be fulfilled. 50 Conditions for carrying on insurance business by way

service into another Member State. 50.

(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 commitments 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 attesting (if such be the case) 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 commitments which the insurance undertaking proposes to cover in each Member State where 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. 51 Conditions for carrying on insurance business by way

service into the State. 51.

(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 certifies that it has communicated to the Minister the appropriate information referred to in paragraphs (a), (b) and (c)

sub-article

(2)

Article 50

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 43

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. 52 Amendment to services information. 52. Where the insurance undertaking intends to amend the information provided in accordance with sub-article

(1)

Article 50

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

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

Article 50

these Regulations. The insurance undertaking shall also be subject to the procedures laid down in accordance with Article 51

these Regulations. 53 General conditions related to services and branch insurance business. 53.

(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 or the English language.

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

general and special policy conditions, scales

premiums, technical bases used in particular for calculating scales

premiums and technical reserves, 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

these Regulations) concerning insurance contracts. This 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. 54 Prevention

irregularities. 54.

(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 insofar 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 7 Advertising, Winding-up, Statistical Requirements 55 Advertising. 55. 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. 56 Winding-up. 56. 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. 57 Statistical information. 57.

(1)An insurance undertaking with its head

fice in the State shall inform the Minister separately in respect

those transactions effected by it by way

establishment and those effected by it by way

services

the amount

the premiums without deduction

reinsurance, and shall so inform the Minister in respect

each Member State where such transactions are effected and in respect

each

Classes I to VII as defined in Annex I to these Regulations.

(2)The Minister shall forward the information provided in accordance with sub-article
(1)

this Article within a reasonable period

time and in aggregate form to the supervisory authorities

each

the Member States which so requests. 58 Statistical requirement regarding services and branch insurance business. 58. 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 57

and other appropriate information in order that the statistical needs

the State may be fulfilled. 59 Statistical information in the general good. 59. 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 8 Fiscal Arrangements, Acquired Rights, Right

Appeal. 60 Fiscal arrangements. 60.

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

the State.

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

Article 42shall not affect sub-article

(1)

this Article. 61 Acquired rights. 61.

(1)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.

(2)A branch referred to in sub-article
(1)

this Article shall, from the date

entry into force

provisions adopted in implementing these Regulations be subject to the relevant provisions laid down in accordance with these Regulations. 62 Right

appeal to Court. 62. 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 9 Provisions Related to Branches

Third Country Insurance Undertakings, Rules Applicable to the Assignment

Third Country Branch Policies, Penalties, Fees 63 Third country branch provisions. 63. Articles 63 to 72

these Regulations apply to a life assurance undertaking whose head

fice is not in a Member State (a "third country undertaking"). 64 Application for authorisation. 64.

(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)No insurance undertaking to which Articles 63 to 72 apply may carry on both the business

life assurance and the business

non-life insurance

a class referred to in Annex I to the European Communities (Non-Life Insurance) Framework Regulations, 1994.

(3)A branch

a third country undertaking authorised to undertake life assurance in the State may apply to extend its business to any class

life assurance for which it is not authorised. 65 Conditions

admission. 65. 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 Article 67, ( g ) it submits a scheme

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

(2)(b) as if it were an insurance undertaking to which that Article applies. 66 Technical reserves including mathematical reserves. 66. An insurance undertaking authorised under Article 65

these Regulations shall establish and maintain technical reserves, including mathematical reserves, adequate to cover the underwriting liabilities assumed in the State in accordance with Article 12

these Regulations. 67 Solvency margin. 67.

(1)Subject to sub-article
(2)

this Article, Annex II and Article 36

(2)shall apply to an insurance 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 Article 68 and any excess shall be retained either in the State or in another Member State. 68 Guarantee Fund. 68.

(1)Subject to sub-article
(2)

this Article, Part B

Annex II shall apply to an 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 and the deposit lodged under Article 65 (e) shall be reckoned in calculating the amount

a guarantee fund for the purposes

this Article. 69 Annual returns. 69. Save as provided in Article 71, Article 13 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. 70 Advances under Article 30

the First Directive. 70.

(1)An undertaking which obtains an authorisation from a Member State and subsequently obtains an authorisation from one or more Member States in respect

a branch may apply to the Minister for the advantages specified in Article 30

the First Directive which may be granted only jointly.

(2)Article 30
(2)and
(3)and
(4)

the First Directive shall apply in such a case. 71 Application

Articles 36 and 37. 71.

(1)Articles 36 and 37 shall apply to an insurance undertaking to which this Article applies.
(2)In the case

an undertaking which has, in accordance with Article 70, availed itself

the advantages specified in Article 30

the First Directive, the references in Articles 35, 36 and 37

these Regulations to another Member State shall be construed as references to the Member State in which the undertaking in question first commenced to carry on business. 72 Assignment

third country branch insurance policies. 72.

(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 30

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

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

(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 affected without the agreement

the supervisory authorities

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

(6)Where the supervisory authorities

the Member States in which the commitments 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 49
(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 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 commitment 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. 73 Penalties. 73.

(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. 74 Fees. 74.

(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

(8)(a)

these Regulations, a fee

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

(8)(b)

these Regulations, a fee

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

(8)(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 64

(1)

these Regulations, a fee

£2,000; ( e ) if the application is by an undertaking mentioned in Article 64

(3)

these Regulations, a fee

£1,000;

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

sub-article 1

this Article. PART 10 Reciprocity Provisions, Interpretation

Sections 93 and 94

the Insurance Act, 1936 75 Application

articles 75 to 79 to third country undertakings and acquisitions by such undertakings. 75. Articles 75 to 79

these Regulations apply to subsidiaries

parent undertakings governed by the laws

a third country and to acquisitions

holdings by such parent undertakings. 76 Definitions. 76. For the purposes

this Part— "a third country" means a country which is not a Member State; "parent undertaking" and "subsidiary" have the meanings assigned to them in Article 40

(9). 77 Notification to the Commission

authorisations and acquisitions

undertakings governed by the laws

a third country. 77.

(1)The Minister shall notify the Commission: ( a )

any authorisation

a subsidiary, one or more parent undertakings

which are governed by the laws

a third country; ( b ) whenever such a parent undertaking acquires a holding in a European Communities insurance undertaking which is authorised by the Minister such that the latter would become a subsidiary

the former.

(2)When authorisation is granted to the subsidiary

one or more parent undertakings governed by the law

third countries, the structure

the group shall be specified in the notification which the Minister shall address to the Commission. 78 Notification to the Commission

difficulties encountered in establishing or carrying on business in a third country. 78. The Minister shall inform the Commission

any general difficulties encountered by insurance undertakings who hold an authorisation granted by the Minister in establishing themselves or carrying on their activities in a third country. 79 Reciprocity measures. 79.

(1)The Minister shall comply with decisions made in accordance with sub-article 4

Article 32b

Council Directive 79/267/EEC as inserted by Article 9

the Second Directive, to limit or suspend decisions: ( a ) regarding requests pending at the moment

the decision or future requests for authorisations, and ( b ) regarding the acquisition

holdings by parent undertakings governed by the laws

the third country in question.

(2)The duration

the measures referred to in sub-article

(1)

this Article shall not, subject to sub-article

(3)

this Article, exceed three months.

(3)The measures referred to in sub-article
(1)

this Article shall be continued where the Council acting on a proposal from the Commission, has decided before the end

the three month period referred to in sub-article

(2)

this Article that such measures shall be continued.

(4)The limitations or suspension referred to in sub-article
(1)

this Article shall not apply to the setting up

subsidiaries by insurance undertakings or their subsidiaries duly authorised in the European Communities or to the acquisition

holdings in European Communities' undertakings by such undertakings or subsidiaries.

(5)Whenever it appears to the Commission that one

the situations as described in paragraphs 3 and 4

Article 32b

Council directive 79/267/EEC as inserted by Article 9

the Second Directive has arisen, the Minister shall inform the Commission, at its request— ( a )

any request for the authorisation

a subsidiary, one or more parent undertakings

which are governed by the laws

the third country in question; ( b )

any plans for such an undertaking to acquire a holding in a European Communities' insurance undertaking such that the latter would become the subsidiary

the former.

(6)The obligation to provide the information referred to in sub-article
(5)

this Article shall lapse once an agreement is concluded with the third country referred to in paragraph 3 or 4

Article 32b

Council Directive 79/267/EEC as inserted by Article 9

the Second Directive when the measures referred to in the second or third subparagraph

paragraph 4

the said Article 32b cease to apply.

(7)Measures taken under this Article shall comply with the obligations

the European Communities under any international agreement, bilateral or multilateral, governing the taking-up and pursuit

the business

insurance undertakings. 80 Interpretation

Sections 93 and 94

the Insurance Act, 1936 . 80. 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. ANNEX I A. Classes

insurance Class Description I Life assurance and contracts to pay annuities on human life as described in Article 1

(1)(a), (b) and (c)

the First Directive, but excluding contracts within Classes II and III below. II Contracts

insurance to provide a sum on marriage or on the birth

a child, being contracts expressed to be in effect for a period

more than one year. III The assurances referred to in Article 1

(1)(a) and (b)

the First Directive which are linked to investment funds. IV Permanent health insurance as defined in Article 2

these Regulations. V Tontines as described in Article 1

(2)(a)

the First Directive where these are carried on by an undertaking holding an authorisation. VI Capital redemption operations as described in Article 1

(2)(b)

the First Directive where these are carried on by an insurance undertaking holding an authorisation. VII Management

group pension funds as described in Articles 1

(2)(c) and 1
(2)(d)

the First Directive where these are carried on by an undertaking holding an authorisation. B. Correspondence between classes

life assurance licensed under the Insurance Act, 1936 , and the classes set out in this Annex to these Regulations.

(1)
(2)Classes

business licensed under the Insurance Act, 1936 . Equivalent classes

insurance business specified in Schedule I to these Regulations. Life Assurance I, II, III, IV, V, VI, VII. Industrial Assurance I, II and III insofar as they relate to Industrial Assurance as defined in the Insurance Act, 1936 . 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 representing 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 ) with the consent

the Minister, cumulative 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 cumulative preferential share capital, and provided 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 also 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 Minister for 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 authorize 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; (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 Minister has raised no objection to the amendment; ( f ) with the consent

the Minister securities with no specified maturity date and other instruments that fulfil the following conditions, including cumulative 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: (i) they may not be repaid on the initiative

the bearer or without the prior consent

the Minister; (ii) the contract

issue must enable the insurance undertaking to defer the payment

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

all non-subordinated creditors; (iv) 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; (

  1. v)only fully paid-up amounts may be taken into account. ( g ) on application, with supporting evidence, to the Minister and with the Minister's consent: (
  2. i)an amount equal to 50 per cent.

the insurance undertaking's future profits; the amount

the future profits shall be obtained by multiplying the estimated annual profit by a factor which represents the average period left to run on policies; the factor used may not exceed 10; the estimated annual profit shall be the arithmetical average

the profits made over the last five years in the activities specified in Article 1

the Directive. (ii) where zillmerizing is not practised or where, if practised, it is less than the loading for acquisition costs included in the premium, the difference between a non-zillmerized or partially zillmerized mathematical reserve and a mathematical reserve zillmerized at a rate equal to the loading for acquisition costs included in the premium; this figure may not, however, exceed 3.5 per cent.

the sum

the differences between the relevant capital sums

life assurance activities and the mathematical reserves for all policies for which zillmerizing is possible; the difference shall be reduced by the amount

any undepreciated acquisition costs entered as an asset; (iii) where approval is given by the supervisory authorities

the Member States concerned in which the undertaking is carrying on its activities, any hidden reserves resulting from the under-estimation

assets and over-estimation

liabilities other than mathematical reserves insofar as such hidden reserves are not

an exceptional nature. (iv) Rules in relation to an application to the Minister in accordance with Article 2 (g)

this Annex are contained in Annex VI to these Regulations. 3. Subject to Part B

this Annex

these Regulations the minimum solvency margin shall be determined as shown below according to the classes

insurance underwritten: ( a ) for the kinds

insurance referred to in Article

(1)(a) and (b)

the First Directive, other than assurance linked to investment funds, and for the operations referred to

🔗 To official source

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