§ Mr. Teddy TaylorTo ask the Chancellor of the Duchy of Lancaster why the non-life insurance directive to operate in 1992 and later years does not include provisions for freedom of trade in mass risks; and if he will explain the purpose of the Cumul rule included in the directive.
§ Mr. MaudeThe non-life insurance services directive, which will enter into force in July 1990, lays down procedures for the conduct of business on a services basis for both large and mass risks. A majority of member states considered that for mass risks it should be open to them to impose measures needed in their view to protect consumers. The distinctions between mass and large risks was endorsed by the European Court of Justice judgments in December 1986 on certain insurance cases. The purpose of the Cumul rule is to assist these member states with the regulation of mass risks.