HL Deb 27 July 1967 vol 285 cc1258-63

[Nos. 151–187]

After Clause 54, insert the following new clause—

Power to impose restrictions on company benefiting by virtue of section 51(5)

(".—(1) An authorisation under section (Authorisations for purposes of section 49) of this Act in whose case section 51 of this Act does not apply to the issue thereof may contain provision imposing on the company, society or body with respect to which it is issued either or both of the following obligations, namely—

  1. (a) to refrain, in the course of carrying on business of the class to which the authorisation relates, from insuring persons other than of a specified class; and
  2. (b) to refrain, as aforesaid, from insuring persons against risks other than of a specified class.

(2) An obligation binding on a company, society or body by virtue of the foregoing subsection may be discharged by the Board of Trade, if it appears to them to be no longer necessary for the obligation to continue in force or may be varied at any time by them.")

Clause 55, page 54, line 22, after ("business") insert ("relevant for the purposes of this Part of this Act")

Clause 55, page 54, line 23, leave out ("50") and insert ("(Authorisations for purposes of section 49)").

Clause 55, page 54, line 5, leave out ("50") and insert ("(Authorisations for purposes of section 49)")

Clause 55, page 54, line 9, after ("business") insert ("relevant for the purposes of this Part of this Act")

Clause 55, page 54, line 9, leave out ("section 50(2)") and insert ("subsection (2) of section (Authorisations for purposes of section 49)")

Clause 55, page 54, line 14, after ("on"), insert ("of")

Clause 55, page 54, line 37, leave out from beginning to end of line 25 on page 56 and insert—

  1. ("(a) the restriction appropriate to the carrying on by an insurance company of industrial assurance business is that the company shall not effect a contract of insurance on human life or a contract to pay an annuity on human life;
  2. (b) the restriction appropriate to the carrying on by an insurance company of liability insurance business is that the company shall not effect or vary any such contract of insurance as is mentioned in subsection (3) of section (Classes of insurance business relevant for purposes of Part II, and definitions thereof) of this Act;
  3. (c) the restriction appropriate to the carrying on by an insurance company of marine, aviation and transport insurance business is that the company shall not enter into or vary any such contract as is mentioned in subsection (4) of that section;
  4. (d) the restriction appropriate to the carrying on by an insurance company of motor vehicle insurance business is that the company shall not enter into or vary any such contract as is mentioned in subsection (5) of that section;
  5. (e) the restriction appropriate to the carrying on by an insurance company of ordinary long-term insurance business is that 1260 the company shall not effect a contract of insurance on human life or a contract to pay an annuity on human life or any such contract as is mentioned in paragraph (b) or (c) of subsection (6) of that section;
  6. (f) the restriction appropriate to the carrying on by an insurance company of pecuniary loss insurance business is that the company shall not enter into or vary any such contract as is mentioned in subsection (7) of that section;
  7. (g) the restriction appropriate to the carrying on by an insurance company of personal accident insurance business is that the company shall not enter into or vary any such contract as falls within subsection (8) of that section; and
  8. (h) the restriction appropriate to the carrying on by an insurance company of property insurance business is that the company shall not enter into or vary any such contract as is mentioned in subsection (9) of that section.")

Clause 56, page 57, line 5, leave out ("50") and insert ("(Atithorisations for purposes of section 49)")

Clause 56, page 57, line 7, after ("class"), insert ("relevant for the purposes of this Part of this Act")

Clause 56, page 57, line 9, leave out ("or")

Clause 56, page 57, line 11, after ("class"), insert ("so relevant")

Clause 56, page 57, line 12, leave out first ("or")

Clause 56, page 57, line 19, leave out ("section 50(2)") and insert ("subsection (2) of section (Authorisations for purposes of section 49)").

After Clause 56, insert the following new clause—

Alteration of scope of the principal Act

(".—(1) Subsection (1) of section 1 of the principal Act (which provides that, with certain exceptions, that Act shall apply to all insurance companies which carry on with Great Britain insurance business of all or any of the classes specified in that subsection) shall have effect with the omission of the words from "of all or any of the following classes" to the end of the subsection.

(2) In consequence of the foregoing subsection and of the classification of insurance business effected by section (Classes of insurance business relevant for purposes of Part II, and definitions thereof) of this Act, the provisions of the principal Act specified in column 1 of Schedule (Amendments of Insurance Companies Act 1958 consequential on sections (Classes of insurance business relevant for purposes of Part II, and definitions thereof) and subsection (1) of section (Alteration of scope of the principal Act) of this Act) to this Act shall have effect subject to the amendments respectively specified in relation thereto in column 2 of that Schedule; and, for the purposes of those provisions, as amended by that Schedule, the expression "ordinary long-term insurance business" shall have the meaning assigned to it by subsection (6) of section (Classes of insurance business relevant for purposes of Part II. and definitions thereof) of this Act.

(3) Subsection (3) of the said section 1 (which requires certain companies carrying on insurance business outside Great Britain to be treated for the purposes of that Act as if they were carrying on such business in Great Britain) shall cease to have effect.")

After Clause 57, insert the following new clause—

Reduction of maximum intervals between actuarial valuations required by section 5 of the principal Act

(". As from the expiration of the period of two years beginning with the day on which this Act is passed, section 5(1)(a) of the principal Act (which, as amended by this Act, imposes on an insurance company to which that Act applies which carries on industrial assurance business or ordinary long-term insurance business the requirement that it shall, once in every five years or at such shorter intervals as may be prescribed by the deed of settlement of the company, or by its regulations or byelaws, cause an investigation to be made into its financial condition, including a valuation of its liabilities, by an actuary) shall have effect with the substitution, for the reference to five years, of a reference to three years.")

Clause 58, page 58, line 42, leave out ("so given") and insert ("given in a statement or report so annexed")

Clause 58, page 58, line 42, at end insert— ("( ) The proviso to subsection (3) of section 34 of the principal Act (which excepts regulations made under the said section 9 from the requirement of that subsection that a statutory instrument containing regulations under that Act shall be subject to annulment in pursuance of a resolution of either House of Parliament) shall not apply to regulations made under the section substituted for the said section 9 by this section.")

Clause 59, page 59, line 11, leave out from ("no") to ("other") in line 12 and insert ("insurance business")

Clause 60, page 59, line 20, leave out from ("of") to ("may") in line 21 and insert ("insurance business")

Clause 60, page 59, line 23, after ("on"), insert ("such")

Clause 60, page 59, line 24, leave out from ("prepare") to end of line 25 and insert ("the prescribed statement of business of that class, being, if a form is prescribed for the statement, a statement in the prescribed form")

Clause 60, page 59, line 25, at end insert—

("( ) The Board of Trade may, on the application or with the consent of an insurance company, modify, in relation to that company, the requirements of the foregoing subsection for the purpose of adapting them to the circumstances of the company.")

Clause 63, page 60, line 42, leave out from ("1965") to ("shall") in line 1 on page 61.

Clause 63, page 60, page 61, line 2, leave out ("so kept") and insert ("kept by the appropriate registrar under that Act")

Clause 64, page 61, line 12, after ("on"), insert ("(whether within or outside Great Britain)")

Clause 64, page 61,line 17, leave out from the beginning to first ("the") in line 18 and insert ("its first financial year")

Clause 64, page 61, line 25, leave out subsection (2).

Clause 64, page 61, line 35, leave out from ("one") to ("Act") in line 36 and insert ("which, immediately before the passing of this Act, was carrying on (whether within or outside Great Britain) business which then constituted general business for the purposes of the principal")

Clause 65, page 62, line 12, leave out from beginning to end of line 23 and insert—

Clause 65, page 62, line 31, leave out ("specified in section 1(1) of the principal") and insert ("relevant for the purposes of this Part of this")

Clause 65, page 62,line 37, at end insert— ("( ) Subsections (1A) and (1B) of section 54 of this Act shall have effect for the purposes of this section subject to the modifications that, in the said subsection (1A), for the reference to paragraph (b) or (c) of section 54(1), there shall be substituted a reference to paragraph (b) or (c) of subsection (1) of this section, and, for the reference to the Board of Trade, there shall be substituted a reference to the appropriate authority, and, in the said subsection (1B), for the reference to paragraph (c) of section 54(1), there shall be substituted a reference to paragraph (c) of subsection (1) of this section; and section (Provisions relating to assets subject to certain requirements imposed under section 54) of this Act shall have effect where a requirement is imposed by virtue of paragraph (c) of subsection (1) above as it does where a requirement is imposed by virtue of paragraph (c) of section 54(1) of this Act, subject to the modifications that, for any reference to paragraph (c) of the said section 54(1), there shall be substituted a reference to paragraph (c) of subsection (1) of this section, and for the reference to the Board of Trade, there shall be substituted a reference to the appropriate authority.

Clause 65, page 62, line 39, leave out from ("no") to ("other") in line 40 and insert ("insurance business")

Clause 65, page 62, line 43, leave out ("specified in section 1(1) of the principal") and insert ("relevant for the purposes of this Part of this")

Clause 65, page 63, line 2, at end insert— ("(3A) When the appropriate authority imposes under subsection (1)(c) of this section a requirement on a company or rescinds a requirement so imposed, it shall forthwith serve—

  1. (a) except where the requirement is one imposed on a registered society (other than one registered in Northern Ireland), on the registrar of companies;
  2. (b) in the said excepted case, on the appropriate registrar as defined by section 73(1) of the Industrial and Provident Societies Act 1965;
written notice stating that fact and, in the case of a notice of the imposition of a requirement, setting out the terms of the requirement and, in the case of a notice of the rescission of a requirement, identifying the requirement.

(3B) Subsections (3B) and (3C) of section 54 of this Act shall have effect for the purposes of this section subject to the modification that, for any reference to a notice served in pursuance of subsection (3A) of that section, there shall be substituted a reference to a notice served in pursuance of the last foregoing subsection.")

Clause 65, page 63,line 6, leave out from ("no") to ("other") in line 7 and insert ("insurance business")

Clause 65, page 63, line 10, at end insert ("and "domestic liabilities" shall be construed in accordance with section 54(4A) of this Act")

LORD HUGHES

My Lords, Amendments Nos. 151 to 187 are a large group of formal Amendments consequential or minor, and non-controversial in their nature. With permission I beg to move this group en bloc.

Moved, That this House doth agree with the Commons in the said Amendments.—(Lord Hughes.)

On Question, Motion agreed to.