S.I. No. 57/1984:

EUROPEAN COMMUNITIES (LIFE ASSURANCE) REGULATIONS, 1984.

EUROPEAN COMMUNITIES (LIFE ASSURANCE) REGULATIONS, 1984.

I, JOHN BRUTON, Minister for Industry, Trade, Commerce and Tourism, in exercise of the powers conferred on me by section 3 of the European Communities Act, 1972 (No. 27 of 1972), and the Trade, Commerce and Tourism (Alteration of Name of Department and Title of Minister) Order, 1983 (S.I. 384 of 1983), and for the purpose of giving effect to Council Directive 79/267/EEC*, hereby make the following Regulations:

*OJ L63, 13.3.1979, pp. 1-18.

PART I

Preliminary and general

1. These Regulations may be cited as the European Communities (Life Assurance) Regulations, 1984, and shall come into operation on the 14th day of March, 1984.

2. (1) In these Regulations:--

"assurance licence" has the meaning assigned to it by the Insurance Act, 1936 (No. 45 of 1936);

"the Annex" means the Annex to the Directive in which the classes of insurance set out in Schedule I to these Regulations are specified;

"authorisation" means an authorisation under these Regulations, except where the context otherwise requires;

"capital at risk" means the amount payable on death less the mathematical reserve in respect of the relevant contracts;

"the Directive" means EEC Council Directive 79/267/EEC;

"industrial assurance business" has the meaning assigned to it by the Insurance Act, 1936 (No. 45 of 1936);

"member State" means a State which is a member of the European Communities;

"the Minister" means the Minister for Industry, Trade, Commerce and Tourism;

"life assurance" means insurance of a class specified at a reference number in the Annex;

"person", "body" and "insurance undertaking" or "assurance undertaking" includes any legal entity specified in Article 8 (1) (a) of the Directive;

"permanent health insurance" has the meaning assigned to it by Article 8 of these Regulations;

"supervisory authority" means, in respect of any territory, the authority charged by law with the duty of supervising the activities of insurance undertakings or assurance undertakings in that territory;

"unit of account" has the meaning assigned to it by the European Communities (Non-Life Insurance) (Amendment) Regulations, 1976 (S.I. 276 of 1976);

"zillmerizing" means the method known by that name for modifying the net premium reserve method of valuing a long term policy by increasing the part of the future premiums for which credit is taken so as to allow for initial expenses.

(2) In these Regulations, any word or phrase to which a meaning is assigned by the Directive has that meaning.

3. (1) Subject to subarticle (2) of this Article, these Regulations apply to insurance of a class specified in the Annex and to undertakings carrying on such insurance.

(2) These Regulations do not apply to--

(a) the kinds of insurance specified in Articles 2(1) and 2(4) of the Directive,

(b) the operations specified in Articles 2(2) and 2(3) of the Directive,

(c) the organisations and mutual associations excluded from the application of the Directive by Article 3 thereof.

4. (1) A person shall not carry on the business of life assurance in the State unless he is the holder of an authorisation under these Regulations granted by the Minister, unless he carries on such business in accordance with the terms of the authorisation and unless he has established an insurance undertaking in the State.

(2) For the purposes of these Regulations, an insurance undertaking shall be deemed to be or to have been established in the State in accordance with subarticle (1) of this Article if--

(a) it has in the State an office, the existence of which is notified to the public and which is open during normal business hours for the transaction of life assurance business for which it is authorised, and

(b) it employs at such office persons duly qualified to carry on the business transacted and empowered to issue cover for the authorised classes and to settle claims.

(3) No insurance of a class contained in the Annex shall be entered into except in the exercise of the power to issue cover granted under subarticle (2) (b) of this Article.

(4) Section 9 of the Insurance Act, 1936 , shall apply to an authorisation issued under these Regulations.

5. (1) Where the Minister is satisfied that an undertaking applying for an authorisation and having its head office in the territory of a member State complies with the appropriate provisions of these Regulations and of the Insurance Acts 1909 to 1983, he shall grant that undertaking an authorisation.

(2) Where the Minister is satisfied that an undertaking applying for an authorisation and not having its head office in the territory of a member State complies with the appropriate provisions of these Regulations and of the Insurance Acts, 1909 to 1983, he may at his discretion grant that undertaking an authorisation.

(3) No undertaking may carry on the business of life assurance and the business of non-life insurance of a class referred to in Schedule I to the European Communities (Non-Life Insurance) Regulations, 1976 (S.I. 115 of 1976).

(4) An undertaking which on the 15th day of March, 1979 carried on both life assurance and non-life insurance business in a member State where its head office is situated shall not be granted an authorisation by the Minister to enable it to carry on through a branch or agency business other than insurance of a class referred to in Schedule I to the European Communities (Non-Life Insurance) Regulations, 1976 (S.I. 115 of 1976).

(5) (a) Where a branch or agency of an undertaking referred to in subarticle (4) was on the 15th day of March, 1979 carrying on life assurance in accordance with an assurance licence issued by the Minister, such branch or agency may be granted an authorisation by the Minister to enable it to continue to carry on such business.

(b) If the undertaking applies for and is granted an authorisation to carry on non-life insurance by way of a branch or agency in accordance with subarticle (4), it may no longer carry on life assurance by way of a branch or agency and may only carry on that business by way of a subsidiary company in accordance with an authorisation granted by the Minister.

(6) Subject to these Regulations, the provisions of the Insurance Acts, 1909 to 1983, shall, where applicable and subject to any necessary modifications, apply to undertakings holding authorisations under these Regulations.

6. (1) Subject to subarticle (3) of this Article, an assurance licence granted before the commencement of these Regulations in respect of a class of assurance specified in column (1) of Schedule II to these Regulations shall be deemed to be an authorisation in respect of the class of insurance specified at that reference number in column (2) of that Schedule, except that the licence holder must have carried on business corresponding to that class immediately before the commencement of these Regulations.

(2) An assurance licence granted under the Insurance Act, 1936 , to a foreign company (within the meaning of that Act) and deemed to be an authorisation by subarticle (1) of this Article shall apply only in respect of the branch or agency of that company in the State.

(3) A body may not carry on industrial assurance business by virtue of this Article unless it was carrying on such business immediately before the commencement of these Regulations.

(4) On the issue to an undertaking of an authorisation under these Regulations, any licence granted to that undertaking under the Insurance Act, 1936 , shall cease to have effect, but without prejudice to the obligations of that undertaking under the Insurance Acts, 1909 to 1983.

7. (1) The Minister may grant an authorisation to an undertaking to carry on such of the classes of insurance business specified in the Annex or such parts of those classes as may be specified in the authorisation.

(2) An authorisation granted under this Article may be restricted to industrial assurance business and a body may not carry on industrial assurance business by virtue of an authorisation granted under these Regulations unless the authorisation expressly extends to such business.

(3) An authorisation shall be in the appropriate form set out in Schedule III to these Regulations.

8. (1) In these Regulations "permanent health insurance" means the business of effecting and carrying out contracts of insurance providing specified benefits against risks of persons becoming incapacitated in consequence of sustaining injury as a result of an accident or of an accident of a specified class or of sickness or infirmity, being contracts that--

(a) are expressed to be in effect for a period of not less than five years or until normal retirement age for the persons concerned, or without limit of time, and

(b) either:

(i) are not expressed to be terminable by the insurer under the terms of the contract, or

(ii) are expressed to be so terminable only in special circumstances mentioned in the contract.

(2) Subject to subarticle (3) of this Article, permanent health insurance shall not be carried on by an undertaking in the State unless that undertaking holds an authorisation granted in respect of Class IV in Schedule I to these Regulations.

(3) Non-life insurance undertakings transacting, at the commencement of these Regulations, permanent health insurance under the Insurance Act, 1936 shall cease to carry on such business not later than the 15th day of September, 1985.

(4) Section 32 (e) of the Assurance Companies Act, 1909 shall not apply to a transfer of the business of permanent health insurance.

PART II

9. Articles 10 to 25 of these Regulations shall apply to an undertaking which has or proposes to have its head office in the State or which has its head office in the territory of another member State and has established or proposes to establish a branch or agency in the State.

10. An application for an authorisation may be made to the Minister by--

(a) any life assurance undertaking which has established or proposes to establish itself in the State and to establish its head office in the State,

(b) any life assurance undertaking which is established with its head office in the territory of another member State and which establishes or proposes to establish itself in the State,

(c) any life assurance undertaking which is the holder of an authorisation related to a particular class or particular classes of insurance and which proposes to extend its business in the State to another class of insurance or to part of another class.

11. (1) Any undertaking having or proposing to have its head office in the State and 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) of section 5 (2) of the Companies Act, 1963 (No. 33 of 1963), 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;

(b) it shall limit its business activities to the business of life assurance and to operations directly arising therefrom, to the exclusion of all other commercial business;

(c) it shall submit to the Minister a scheme of operations in accordance with Article 9 of the Directive;

(d) it shall possess the minimum guarantee fund referred to in Article 21 of these Regulations.

(2) An undertaking having its head office in the State applying for an authorisation to extend its business to other classes of insurance, shall--

(a) submit to the Minister a scheme of operations in accordance with Article 9 of the Directive in relation to such other classes of insurance, and

(b) prove to the satisfaction of the Minister that it possesses the solvency margin required by Articles 17 and 18 of these Regulations and, where a higher minimum guarantee fund is required by Article 21 of these Regulations, that it possesses such minimum guarantee fund.

12. (1) An undertaking having its head office in the territory of another member State and which there fulfils the requirements of the Directive shall, when applying for an authorisation--

(a) submit to the Minister a copy of its memorandum and articles of association and a list of its directors and managers,

(b) produce a certificate issued by the supervisory authority of the State in whose territory the head office is situated, attesting the classes of insurance which the undertaking is entitled to carry on and that it possesses the minimum guarantee fund or, if higher, the minimum solvency margin calculated in accordance with Article 18 of these Regulations, and indicating the risks which it actually covers and the financial resources referred to in Article 11 (1) (e) of the Directive,

(c) submit a scheme of operations in accordance with Article 11 of the Directive, and

(d) designate an authorised agent having his permanent residence and abode in the State and possessing sufficient powers to bind the undertaking in relation with the authorities and courts of the State and in relation to third parties.

(2) Where the authorised agent referred to in subarticle (1) (d) of this Article is a legal person, its head office shall be in the State and it shall designate a person other than a legal person to represent it who complies with that subarticle.

(3) A branch or agency of an undertaking having its head office in the territory of another member State which is deemed to hold an authorisation under Article 6(1) of these Regulations shall comply with the provisions of subarticle (1) (d) and subarticle (2) of this Article.

(4) A person who purports to have been designated by a life assurance undertaking as its authorised agent for the purposes of this Article or Article 28 of these Regulations shall, without prejudice to the liability of his principal, be personally liable for all matters arising from the carrying on in the State of the business of life assurance by that undertaking.

(5) An undertaking having its head office in the territory of another member State and applying for an authorisation to extend the business of its branch or agency in the State to other classes of insurance shall--

(a) submit to the Minister a scheme of operations in accordance with Article 11 of the Directive, and

(b) comply with the provisions of subarticle (1)(b) of this Article.

13. (1) Where the Minister decides to refuse an application for an authorisation (whether in respect of a head office or a branch or agency) he shall notify his decision to the applicant and shall in the notification specify the grounds for his decision.

(2) An applicant whose application for an authorisation has been refused may appeal against the refusal to the High Court.

(3) (a) Where the Minister at the expiry of a period of six months from the date of receipt by him of an application for an authorisation has not dealt with it, the applicant may apply to the High Court for an order directing the Minister to deal with the application within such period as may be specified in the order, and the Minister shall comply with the order.

(b) Before making an order under this subarticle, the High Court shall afford to the Minister an opportunity of being heard in relation to the application for the order.

14. The Minister shall provide the supervisory authority of another member State with such information as is necessary for the purpose of verifying the solvency margin of an undertaking having a branch or agency in the State and its head office in the territory of that other member State.

15. (1) An undertaking which is the holder of an authorisation shall establish and maintain technical reserves, including mathematical reserves, calculated in accordance with regulations, in respect of underwriting liabilities assumed by it.

(2) Assets of an amount related to the amount of the technical reserves, including mathematical reserves, shall be localised in the State by an undertaking in accordance with regulations.

(3) Pending the making of regulations, an undertaking shall maintain in the State assets of such amount as the Minister may from time to time direct.

(4) Section 22 of the Insurance Act, 1936 , shall not apply to an undertaking which complies with this Article.

(5) Where an underwriting liability is expressed in a particular currency, assets representing that liability shall be realisable in that currency subject to and in accordance with regulations.

(6) (a) Assets representing technical reserves, including mathematical reserves, required to be held under this Article shall comprise assets in accordance with regulations and shall be valued in accordance with regulations.

(b) If the Minister so directs, compliance with the regulations may be ensured by the intervention of a person or institution from outside the undertaking and invested by the Minister with responsibility for verifying on the spot whether the assets representing technical reserves, including mathematical reserves, comply with the regulations.

(7) In this Article "regulations" means regulations under the European Communities Act, 1972 (No. 27 of 1972).

16. Where an undertaking which is the holder of an authorisation fails to comply with Article 15 of these Regulations, the following provisions shall apply:

(a) the Minister may (after notifying the supervisory authority of another member State in a case where the undertaking has its head office in the territory of that State) prohibit the free disposal of assets in the State by the undertaking, and the under-taking or authorised agent mentioned in Article 12 of these Regulations shall comply with any request made by the Minister in this regard;

(b) the Minister may, when he considers it necessary to do so in order to safeguard the interests of persons insured by the undertaking, give a direction to the undertaking--

(i) to suspend the taking on of new business,

(ii) to furnish deposits,

(iii) to furnish information to the Minister, or

(iv) to take such further measures as may be specified in the direction,

and the undertaking or authorised agent shall comply with the direction.

17. (1) An undertaking whose head office is situated in the State shall establish an adequate solvency margin in respect of its entire business in accordance with this Article and Article 18 of these Regulations.

(2) The solvency margin shall correspond to the assets of the undertaking, free of all foreseeable liabilities, less any intangible items, and in representing the amount of the solvency margin the following shall be considered:

(a) the paid-up share capital or, in the case of a mutual concern, the effective initial fund,

(b) one-half of the share capital or the initial fund which is not yet paid up, once the paid-up part reaches 25% of this capital or fund,

(c) reserves (including both statutory reserves and free reserves) not corresponding to underwriting liabilities,

(d) any carry-forward of profits,

(e) on application, with supporting evidence, to the Minister and with his consent:

(i) an amount equal to 50% of the undertaking's future profits; the amount of 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 of the profits made over the last five years in the activities specified in Article 1 of 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% of the sum of the differences between the relevant capital sums of life assurance activities and the mathematical reserves for all policies for which zillmerizing is possible; the difference shall be reduced by the amount of any undepreciated acquisition costs entered as an asset;

(iii) where approval is given by the supervisory authorities of the member States concerned in which the undertaking is carrying on its activities, any hidden reserves resulting from the under-estimation of assets and over-estimation of liabilities other than mathematical reserves insofar as such hidden reserves are not of an exceptional nature.

18. Subject to Article 21 of these Regulations the minimum solvency margin shall be determined as shown below according to the classes of insurance underwritten:

(a) For the kinds of insurance referred to in Article 1(1) (a) and (b) of the Directive, other than assurance linked to investment funds, and for the operations referred to in Article 1(3) of the Directive, the solvency margin must be equal to the sum of the following two results:

-- first result:

a 4% fraction of the mathematical reserves relating to direct business gross of reinsurance cessions and to reinsurance acceptances shall be multiplied by the ratio, for the last financial year, of the total mathematical reserves net of reinsurance cessions to the gross total mathematical reserves as specified above; that ratio may in no case be less than 85%;

-- second result:

(i) for policies on which the capital at risk is not a negative figure, a 0.3% fraction of such capital underwritten by the undertaking shall be multiplied by the ratio, for the last financial year, of the total capital at risk retained as the undertaking's liability after reinsurance cessions and retrocessions to the total capital at risk gross of reinsurance; that ratio may in no case be less than 50%,

(ii) for temporary assurance on death of a maximum term of three years, the above fraction shall be 0.1%,

(iii) for temporary assurance on death of a term of more than three years but not more than five years, the above fraction shall be 0.15%.

(b) For the supplementary insurance referred to in Article 1(1) (c) of the Directive, the solvency margin shall be equal to the result of the following calculation:

-- the premiums or contributions (inclusive of charges ancillary to premiums or contributions) due in respect of direct business in the last financial year in respect of all financial years shall be aggregated;

-- to this aggregate there shall be added the amount of premiums accepted for all reinsurance in the latest financial year;

-- from this sum shall then be deducted the total amount of premiums or contributions cancelled in the last financial year as well as the total amount of taxes and levies pertaining to the premiums or contributions entering into the aggregate;

-- the amount so obtained shall be divided into two portions, the first extending up to 10 million units of account and the second comprising the excess; 18% and 16% of these portions respectively shall be calculated and added together;

-- the result shall be obtained by multiplying the sum so calculated by the ratio existing in respect of the last financial year between the amount of claims remaining to be borne by the undertaking after deduction of transfers for reinsurance and the gross amount of claims; this ratio may in no case be less than 50%.

(c) For permanent health insurance not subject to cancellation and referred to in Article 1 (1) (d) of the Directive, and for capital redemption operations referred to in Article 1 (2) (b) of the Directive, the solvency margin shall be equal to a 4% fraction of the mathematical reserves calculated in compliance with the conditions set out in the first result in (a) of this Article.

(d) For tontines referred to in Article 1 (2) (a) of the Directive the solvency margin shall be equal to 1% of their assets.

(e) For assurances covered by Article 1(1) (a) and (b) of the Directive, linked to investment funds, and for the operations referred to in Article 1(2) (c), (d) and (e) of the Directive, the solvency margin shall be equal to:

-- a 4% fraction of the mathematical reserves, calculated in compliance with the conditions set out in the first result in (a) of this Article insofar as the undertaking bears an investment risk, and a 1% fraction of the reserves calculated in the same fashion, insofar as the undertaking bears no investment risks provided that the term of the contract exceeds five years and the allocation to cover management expenses set out in the contract is fixed for a period exceeding five years

plus

-- a 0.3% fraction of the capital at risk calculated in compliance with the conditions set out in (i) of the second result in (a) of this Article insofar as the undertaking covers a death risk.

19. (1) Subject to subarticles (2) and (3) of this Article, an insurance undertaking carrying on business in the State at the commencement of these Regulations shall comply with the provisions of Articles 17 and 18 of these Regulations not later than the 15th day of March, 1984.

(2) Where an undertaking referred to in subarticle (1) of this Article has not by the date specified in that subarticle fully established the solvency margin required by this Article, the Minister may allow the undertaking a further period not exceeding two years in which to do so provided the undertaking has submitted to the satisfaction of the Minister measures which it proposes to take for such purpose.

(3) Undertakings wishing to extend their business as permitted under Articles 8(2) and 10 of the Directive may not do so unless they comply immediately with the appropriate requirements of these Regulations.

20. Where the solvency margin of an undertaking which is the holder of an authorisation and which has its head office in the State falls below the amount required by Articles 17 and 18 of these Regulations, the Minister shall require a plan to be submitted to him by the undertaking for his approval for the restoration of a sound financial position.

21. (1) An undertaking which is the holder of an authorisation and has its head office in the State shall establish a guarantee fund in accordance with this Article.

(2) Subject to subarticle (3) of this Article, one-third of the minimum solvency margin as calculated in accordance with Article 18 of these Regulations shall constitute the guarantee fund.

(3) The amount of the guarantee fund shall be not less than a minimum of 800,000 units of account, but the Minister may permit a smaller minimum guarantee fund for mutual associations, mutual-type associations and tontines in accordance with Article 20(2) (b) and (c) of the Directive.

(4) At least 50% of the guarantee fund, and all of the minimum guarantee fund referred to in subarticle (3) of this Article, shall consist of the items mentioned in Article 17 (2) (a), (b), (c) and (d) of these Regulations.

(5) Subject to subarticle (6) of this Article, an insurance undertaking carrying on business in the State at the commencement of these Regulations shall comply with the provisions of this Article not later than the 15th day of March, 1984.

(6) The Minister may, in accordance with the provisions of Article 33(2) (b) of the Directive, exempt an undertaking from the requirement in subarticle (1) of this Article.

(7) An undertaking to which Article 13(5) of the Directive applies may, subject to the approval of the Minister, avail itself of the conditions and facilities laid down in Article 35 of the Directive, in accordance with the terms set out in those Articles.

22. (1) Where the solvency margin of an undertaking which is the holder of an authorisation and has its head office in the State falls below the guarantee fund as defined in Article 21 of these Regulations, or if the fund is no longer constituted as laid down in that Article, the Minister shall require the undertaking to submit to him for his approval a short-term finance scheme.

(2) In a case referred to in subarticle (1) of this Article, the Minister may also restrict or prohibit the free disposal of the assets of the undertaking, and the undertaking shall comply with any directions of the Minister in this regard.

(3) The Minister may, when he considers it necessary to do so in order to safeguard the interests of persons insured by an undertaking to which subarticle (1) of this Article applies, give a direction to the undertaking--

(i) to suspend the taking on of new business,

(ii) to furnish deposits,

(iii) to furnish information to the Minister, or

(iv) to take such further measures as may be specified in the direction,

and the undertaking shall comply with the direction.

(4) Where the supervisory authority of another member State requests the Minister to take the measures mentioned in subarticle (2) of this Article in relation to a branch or agency in the State of an undertaking with its head office in that other State, the Minister shall comply with the request.

(5) Where any measures are taken under this Article, the Minister shall so inform the supervisory authority of any other member State where the undertaking is authorised under the Directive.

23. (1) An undertaking whose head office is situated in the State and which is the holder of an authorisation shall furnish the Minister annually or at such more frequent intervals as the Minister may request, with such information, in such form and manner as he may require, as will enable him to verify the state of solvency of the undertaking with respect to its entire business.

(2) An undertaking which is the holder of an authorisation shall furnish to the Minister annually, or at such more frequent intervals as the Minister may request, such returns and documents in such form and manner as he may require, as are necessary to enable the Minister to verify that the technical reserves, including the mathematical reserves, mentioned in Article 15 of these Regulations are being maintained and to enable him to comply with Article 14 of these Regulations.

(3) Every undertaking which is the holder of an authorisation shall keep a register showing the assets representing the technical reserves, including the mathematical reserves, required by these Regulations in respect of insurance carried on in the State by the undertaking and shall furnish to the Minister a certificate of the value of these assets on the closing date for which the accounts and balance sheets of the head office of the undertaking are furnished to the competent authority of the State in which the head office is situated, such values being those in such accounts and balance sheets.

(4) (a) An undertaking whose head office is situated in the State, which is the holder of an authorisation, and which has financial, commercial or administrative links with an undertaking carrying on insurance of a class referred to in Section A of Schedule I to the European Communities (Non-Life Insurance) Regulations, 1976 (S.I. 115 of 1976), shall provide the Minister, in a form acceptable to him, with information relating to the arrangements under which any apportionment of expenses of management and income has been made between the undertakings and the basis for such arrangements, and shall provide the Minister on request with copies of any agreement or other documents relevant to any such arrangements.

(b) The same shall be required of an undertaking whose head office is situated in the State, which is the holder of an authorisation under the European Communities (Non-Life Insurance) Regulations, 1976 (S.I. 115 of 1976), and which has financial, commercial or administrative links with an undertaking carrying on insurance of a class referred to in Schedule I to these Regulations.

24. (1) Subject to the provisions of section 13 of the Assurance Companies Act, 1909, and of these Regulations, an undertaking may, after prior consultation with the Minister, assign all or part of its portfolio of policies if the assignee possesses the solvency margin required by these Regulations, due account being taken of the assignment.

(2) Before an assignment under this Article is effected, the Minister shall consult the supervisory authority of any other member State in which the undertaking carried or carries on business.

25. (1) An authorisation held by an undertaking whose head office is situated in the State may be revoked by the Minister if the holder--

(a) no longer fulfils the conditions required by these Regulations for the granting of an authorisation,

(b) has been unable, within the time allowed, to take the measures contained in the restoration plan or finance scheme referred to in Article 20 or 22 (1) of these Regulations, or

(c) fails seriously in its statutory obligations relating to insurance business.

(2) Where an authorisation is revoked under subarticle (1) of this Article, the following provisions shall apply:

(a) the Minister shall notify the revocation to the supervisory authority of any other member State in which the undertaking carries on business;

(b) the Minister shall restrict the free disposal by the undertaking of its assets in the State if such a restriction has not been imposed under Article 16 or 22 of these Regulations;

(c) the Minister shall take such further measures as he considers necessary to safeguard the interests of persons insured by the undertaking.

(3) (a) An authorisation held by an undertaking whose head office is situated in the territory of another member State may be revoked if the branch or agency of that undertaking in the State:

(i) no longer fulfils the conditions required by these Regulations for the granting of an authorisation, or

(ii) fails seriously in its statutory obligations relating to insurance business with respect in particular to the establishment of technical reserves, including mathematical reserves, as required by Article 15 of these Regulations.

(b) Before revoking an authorisation under paragraph (a) of this subarticle, the Minister shall consult the supervisory authority of the member State where the head office is situated.

(c) The Minister may suspend the business of the branch or agency before such consultation is concluded and shall in such a case notify the supervisory authority of the member State where the head office is situated.

(4) An authorisation held by a branch or agency of an undertaking whose head office is situated in the territory of another member State shall be revoked by the Minister if the supervisory authority in that other State withdraws from that undertaking the authorisation held in that State by that undertaking and notifies the Minister of the withdrawal.

(5) Any decision to revoke an authorisation or suspend business under this Article shall be supported by precise reasons and notified in writing to the undertaking in question.

(6) An undertaking may appeal to the High Court against a decision of the Minister under this Article to revoke an authorisation or to suspend the business of an undertaking.

PART III

26. Articles 27 to 34 of these Regulations shall apply to a life assurance undertaking whose head office is not situated in the territory of a member State.

27. (1) An application for an authorisation may be made to the Minister by a life assurance undertaking whose head office is situated outside the European Communities and which proposes to establish a branch or agency in the State.

(2) A branch or agency of a life assurance undertaking whose head office is situated outside the European Communities and which is authorised to undertake insurance in the State may apply to extend its business to classes of insurance for which it is not authorised or to parts of such classes.

28. (1) The Minister may at his discretion grant an authorisation in respect of a branch or agency of a life assurance undertaking having its head office situated outside the European Communities if the undertaking fulfils at least the following conditions:

( a ) it is entitled to undertake life assurance business under the law of the State where its head office is situated;

( b ) it establishes a branch or agency in the State;

( c ) it undertakes to maintain at the place of management of the branch or agency 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 who shall be approved by the Minister;

( e ) it possesses in the State assets of an amount equal to at least one-half of the minimum amount required by Article 20 (2) (a) of the Directive and deposits with the High Court one-fourth of that minimum amount as security;

( f ) it undertakes to keep a margin of solvency in accordance with Article 30 of these Regulations;

( g ) it submits a scheme of operations in accordance with Article 11 (1) and (2) of the Directive as if it were an undertaking to which that Article applies.

(2) A branch or agency of an undertaking with a head office outside the European Communities which is deemed to hold an authorisation under Article 6 (1) of these Regulations shall comply with the provisions of subarticles (1) (d) and (2) of Article 12 of these Regulations, with the requirements of subarticle (1) (e) of this Article, and with the requirements of Article 30 of these Regulations.

29. (1) An undertaking authorised under Article 28 of 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 15 of these Regulations.

(2) An undertaking whose head office is situated outside the European Communities and which is deemed to be authorised under Article 6 (1) of 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 15 of these Regulations.

(3) Assets of an amount related to the amount of the technical reserves, including the mathematical reserves, shall be localised in the State by an undertaking in accordance with regulations.

30. (1) Subject to subarticle (2) of this Article, Articles 17, 18 and 20 of these Regulations shall apply to an undertaking to which this Article applies.

(2) In calculating a solvency margin for the purposes of this Article, account shall be taken only of the premiums or contributions and claims pertaining to the business effected by the undertaking in the State.

(3) The assets representing the solvency margin shall be retained in the State up to the amount of the guarantee fund required by Article 31 of these Regulations and any excess shall be retained either in the State or in another member State.

(4) This Article, insofar as it applies to an undertaking which at the date of the making of these Regulations is carrying on business in the State in one or more of the classes of insurance specified in the Annex, shall come into operation on the 15th day of March, 1984.

31. (1) Subject to subarticle (2) of this Article, Article 21 of these Regulations shall apply to an undertaking to which this Article applies.

(2) The amount of the minimum guarantee fund shall be not less than one-half of the minimum required under Article 21 (3) of these Regulations and the deposit lodged under Article 28 (1) (e) of these Regulations shall be regarded as part of such guarantee fund.

32. Save as provided in Article 33 of these Regulations, Article 23 of these Regulations shall, insofar as is applicable, apply to an undertaking to which this Article applies as if the undertaking were one whose head office is situated in the State.

33. (1) An undertaking which obtains an authorisation under the Directive from a member State and subsequently obtains from another member State (or other such States) such an authorisation in respect of a branch or agency may apply to the Minister for the advantages specified in Article 30 of the Directive which may be granted only jointly.

(2) Article 30 (2), (3) and (4) of the Directive shall apply in such a case.

34. (1) Articles 16, 22, 24 and 25 of these Regulations shall apply to an undertaking to which this Article applies.

(2) However, in the case of an undertaking which has, in accordance with Article 33 of these Regulations, availed itself of the advantages specified in Article 30 of the Directive, the references in Articles 16 (a), 22 (4), 25 (3) and 25 (4) 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.

PART IV

35. (1) A person who fails to comply with any provision of these Regulations shall be guilty of an offence and shall be liable on summary prosecution to a fine not exceeding £800.

(2) Where an offence under these Regulations is committed by a body corporate and is proved to have been so committed with the consent or connivance of or to be attributable to any neglect on the part of a director, manager, secretary or other officer of the body corporate, the director, manager, secretary or other officer or any person purporting to act in such capacity shall, as well as the body corporate, be guilty of an offence and shall be liable to be proceeded against and punished accordingly.

(3) A prosecution for an offence under these Regulations may be brought by the Minister.

36. 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 of the applicant for such authorisation, be sent by post to or left with the Secretary of the Department of Industry, Trade, Commerce and Tourism, Dublin and shall be accompanied by--

( a ) in the case where the application is by an undertaking mentioned in Article 10 (a) of these Regulations, a fee of £1,000,

( b ) in the case where the application is by an insurance undertaking mentioned in Article 10 (b) of these Regulations, a fee of £500,

( c ) in the case where the application is by an insurance undertaking mentioned in Article 10 (c) or Article 27 (2) of these Regulations, a fee of £500, and

( d ) in the case where the application is by an insurance undertaking mentioned in Article 27 (1) of these Regulations, a fee of £500.

SCHEDULE I

Classes of insurance

SCHEDULE II

Correspondence between classes of life assurance licensed under the Insurance Act, 1936 , and the classes set out in Schedule I to these Regulations.

SCHEDULE III

Authorisation forms referred to in Article 7

DEPARTMENT OF INDUSTRY, TRADE, COMMERCE AND TOURISM

CERTIFICATE OF AUTHORISATION

INSURANCE UNDERTAKING WITH ITS HEAD OFFICE IN IRELAND

Subject to the provisions of the Insurance Acts, 1936 to 1983 and in accordance with the European Communities (Life Assurance) Regulations, 1984 (S.I. 57 of 1984), implementing the First E.E.C. Life Assurance Coordination Directive (79/267/EEC of 5th March, 1979), the Minister for Industry, Trade, Commerce and Tourism hereby authorises ............................................................ .....................................................

............................................................ ............................................................ ............................................................ ........

............................................................ ............................................................ ............................................................ .........

with an establishment at: ............................................................ ............................................................ .......................

............................................................ ............................................................ ............................................................ .........

............................................................ ............................................................ ............................................................ .........

to undertake as from the ............................. day of ............................................................ ...........................................

the business of Life Assurance in Ireland in the following classes of the aforementioned Directive, including/excluding* Industrial Assurance as defined in the Insurance Act, 1936 . ............................................

............................................................ ............................................................ ............................................................ ........

............................................................ ............................................................ ............................................................ .........

*Delete as appropriate

DEPARTMENT OF INDUSTRY, TRADE, COMMERCE AND TOURISM

CERTIFICATE OF AUTHORISATION

BRANCH OR AGENCY OF INSURANCE UNDERTAKING WITH ITS HEAD OFFICE IN ANOTHER E.E.C. MEMBER STATE

Subject to the provisions of the Insurance Acts, 1936 to 1983, and in accordance with the European Communities (Life Assurance) Regulations, 1984 (S.I. 57 of 1984), implementing the First E.E.C. Life Assurance Coordination Directive (79/267/EEC of 5th March, 1979), the Minister for Industry, Trade, Commerce and Tourism hereby authorises the branch or agency establishment of ............................................

............................................................ ............................................................ ............................................................ .........

............................................................ ............................................................ ............................................................ .........

with its head office at: ............................................................ ............................................................ .............................

............................................................ ............................................................ ............................................................ .........

and the branch or agency establishment at: ............................................................ ....................................................

............................................................ ............................................................ ............................................................ .........

............................................................ ............................................................ ............................................................ .........

to undertake as from the ............................................... day of ............................................................ ........................

the business of Life Assurance in Ireland in the following classes of the aforementioned Directive, including/excluding* Industrial Assurance as defined in the Insurance Act, 1936 . ............................................

............................................................ ............................................................ ............................................................ .........

............................................................ ............................................................ ............................................................ .........

* Delete as appropriate

DEPARTMENT OF INDUSTRY, TRADE, COMMERCE AND TOURISM

CERTIFICATE OF AUTHORISATION

BRANCH OR AGENCY OF INSURANCE UNDERTAKING WITH ITS HEAD OFFICE OUTSIDE AN E.E.C. MEMBER STATE

Subject to the provisions of the Insurance Acts, 1936 to 1983, and in accordance with the European Communities (Life Assurance) Regulations, 1984 (S.I. 57 of 1984), implementing the First E.E.C. Life Assurance Co-ordination Directive (79/267/EEC of 5th March, 1979), the Minister for Industry, Trade, Commerce and Tourism hereby authorises the branch or agency establishment of ............................................

............................................................ ............................................................ ............................................................ .........

............................................................ ............................................................ ............................................................ .........

with its head office at: ............................................................ ............................................................ .............................

............................................................ ............................................................ ............................................................ .........

............................................................ ............................................................ ............................................................ .........

and the branch or agency establishment at: ............................................................ ....................................................

............................................................ ............................................................ ............................................................ .........

............................................................ ............................................................ ............................................................ .........

to undertake as from the ............................................................ ......... day of ............................................................ ..

the business of Life Assurance in Ireland in the following classes of the aforementioned Directive, including/excluding* Industrial Assurance as defined in the Insurance Act, 1936 . ............................................

............................................................ ............................................................ ............................................................ .........

............................................................ ............................................................ ............................................................ .........

*Delete as appropriate

GIVEN under my Official Seal, this 13th day of March, 1984.

JOHN BRUTON,

Minister for Industry, Trade,

Commerce and Tourism.

EXPLANATORY NOTE.

These Regulations give effect to Council Directive of the European Communities of 5 March, 1979 (79/267/EEC). The Regulations apply to all authorised life assurance undertakings carrying on business in Ireland, whether from a head office, branch or agency established in Ireland. They specify the conditions of admission to the market, the rules which undertakings once authorised must comply with, for example the maintenance of financial security, including antecedent and consequential provisions. Undertakings from countries outside the Community are subject to special provisions in Part III. These Regulations amend certain provisions of the Insurance Acts, 1909 to 1983 insofar as they apply to life assurance.