Statutory Instrument 1991 No. 2511

The Insurance Companies (Linked Contracts) (Amendment) Regulations 1991

---

© Crown Copyright 1991

Statutory Instruments printed from this website are printed under the superintendence and authority of the Controller of HMSO being the Queen's Printer of Acts of Parliament.

The legislation contained on this web site is subject to Crown Copyright protection. It may be reproduced free of charge provided that it is reproduced accurately and that the source and copyright status of the material is made evident to users.

It should be noted that the right to reproduce the text of Statutory Instruments does not extend to the Queen's Printer imprints which should be removed from any copies of the Statutory Instrument which are issued or made available to the public. This includes reproduction of the Statutory Instrument on the Internet and on intranet sites. The Royal Arms may be reproduced only where they are an integral part of the original document.

The text of this Internet version of the Statutory Instrument has been prepared to reflect the text as it was Made. A print version is also available and is published by The Stationery Office Limited as the The Insurance Companies (Linked Contracts) (Amendment) Regulations 1991, ISBN 0110165114. The print version may be purchased by clicking here. Braille copies of this Statutory Instrument can also be purchased at the same price as the print edition by contacting TSO Customer Services on 0870 600 5522 or e-mail:customer.services@tso.co.uk.

Further information about the publication of legislation on this website can be found by referring to the Frequently Asked Questions.

To ensure fast access over slow connections, large documents have been segmented into "chunks". Where you see a "continue" button at the bottom of the page of text, this indicates that there is another chunk of text available.

1991 No. 2511

INSURANCE

The Insurance Companies (Linked Contracts) (Amendment) Regulations 1991

The Secretary of State, in exercise of his powers under sections 78(1) and (2)(a) and 97 of the Insurance Companies Act 1982^[1] and of all other powers enabling him in that behalf, hereby makes the following Regulations:

    1.    (1)  These Regulations may be cited as the Insurance Companies (Linked Contracts) (Amendment) Regulations 1991 and shall come into force on 1st February 1992.

    (2)  The Insurance Companies Regulations 1981^[2] shall have effect subject to the following amendments.

    2.    In regulation 72 (linked contracts), after paragraph (6) insert the following paragraph-
"  (7)  This regulation does not apply in relation to contracts linked to property of the description in paragraph 10A(b) of Schedule 13 to these Regulations entered into before 1st February 1992 save to the extent that responsibility as mentioned in that paragraph extends at least to acts or omissions after that date." .

    3.    In Schedule 13 (Permitted Links)-
 (a) for paragraph 4 substitute the following new paragraph-
    "4.    Units in an authorised unit trust scheme or a recognised scheme within the meaning of section 207(1) of the Financial Services Act 1986^[3]." ; and

 (b) after paragraph 10 insert the following new paragraph-
    "10A.    Units by whatever name called, in a real or notional fund (not being a scheme or undertaking of a kind mentioned in paragraph 4 above) which is limited to the descriptions of property mentioned above and which under the contract is to be managed either:-
(a) wholly by the insurer; or

(b) wholly or to any extent by another person being a person for whose acts and omissions in managing the fund the insurer assumes responsibility towards the policy holder as if they were the acts or omissions of the insurer, and otherwise (if at all) by the insurer." .

John Redwood

Minister of State, Department of Trade and Industry

6th November 1991

The Regulations amend the Insurance Companies Regulations 1981 by restricting the ability of an insurance company to which Part II of the Insurance Companies Act 1982 applies or a member of Lloyd"s to enter into long-term insurance contracts under which the benefits payable are determined wholly or partly by reference to units in a fund which is neither an authorised unit trust scheme nor a recognised scheme within the meaning of the Financial Services Act 1986. The relevant provisions do not apply to a contract entered into before 1st February 1992 except in the circumstances set out in the amendment to the Insurance Companies Regulations 1981 made by regulation 2 of the Regulations.

The Regulations also amend the Insurance Regulations 1981 by permitting an insurance company to which Part II of the Insurance Companies Act 1982 applies or a member of Lloyd"s to enter into long-term insurance contracts under which the benefits payable are determined wholly or partly by reference to units in an authorised unit trust scheme or a recognised scheme.

[1] 1982 c. 50. back

[2] S.I. 1981/1654, to which there are amendments not relevant to these Regulations. back

[3] 1986 c. 60. back