HC Deb 14 April 1975 vol 890 cc46-8W
Mr. Stanley

asked the Secretary of State for Trade if he will detail fully the action taken by his Department by regulation or administrative action since the Insurance Companies Amendment Act 1973 came into force to safeguard the solvency of insurance companies.

Mr. Clinton Davis

Regulations have been made under Sections 7, 41 and 43 of the Insurance Companies Amendment Act 1973 in respect of the identification of long-term assets and liabilities, and

Section
Power 1973 Act 1974 Act Times used
Restriction on new business 13 29 4
Requirements about investments 14 30 140
Maintenance of assets in United Kingdom 15 31 168
Custody of assets 16 32 148
Limitation of premium income 17 33 77
Actuarial investigations 18 34 87
Acceleration of information required by accounting provisions 19 35 10
Obtaining information 20 36 209
Residual power to impose requirements for protection of policyholders 21 37 112
Notice of proposed exercise of power to restrict new business 22 38 50

control of advertisements and intermediaries, and under Section 78 of the Insurance Companies Act 1974 in relation to the valuation of assets. The Department examines each company's statutory returns, and in the light of this and of any other relevant factors discusses with the company any action that may be appropriate. Frequently such action is taken on an informal basis, but between 25th July 1973 and 31st March 1975 the Department's powers of intervention under the 1973 and 1974 Acts were used as follows:

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