• Chapter 4 Chapter 4 Insurance

    • The Activities

      • 31. Effecting Contracts of Insurance

        Effecting a Contract of Insurance as principal is a specified kind of activity.

      • 32. Carrying Out Contracts of Insurance as Principal

        Carrying out a Contract of Insurance as Principal is a specified kind of activity.

      • 33. Insurance Intermediation

        (1) Insurance Intermediation is a specified kind of activity.
        (2) Insurance Intermediation means —
        (a) advising on Contracts of Insurance;
        (b) acting as agent for another person in relation to the Buying or Selling of Contracts of Insurance for that other person; or
        (c) making arrangements with a view to another person, whether as principal or agent, Buying Contracts of Insurance.
        (3) In sub-paragraph (2)(a), "advising" means giving advice to a person in his capacity as a policyholder or potential policyholder, or in his capacity as agent for a policyholder or potential policyholder on the merits of his entering into a Contract of Insurance whether as principal or agent.
        (4) In sub-paragraph (3), "advice" includes a statement, opinion or report —
        (a) where the intention is to influence a person, in making a decision, to select a particular Contract of Insurance or insurance cover; or
        (b) which could reasonably be regarded as being intended to have such influence.
        (5) The arrangements in sub-paragraph (2)(c) include arrangements which do not bring about the transaction.
        (6) The arrangements in sub-paragraph (2)(c) do not include arrangements of the kind described in paragraph 67 that constitute marketing.
        (7) The exclusion in paragraph 29 applies to the activity specified in sub-paragraph (2)(a).

    • Exclusions

      • 34. Entering Contracts of Insurance as Principal

        A person does not carry on the activities specified in paragraph 33(2)(b) or (c) if he enters or is to enter into a transaction in respect of a Contract of Insurance as principal.

      • 35. Other exclusions

        (1) A person does not arrange a Contract of Insurance merely by providing the means by which one party to a transaction is able to communicate with other such parties.
        (2) An Authorised Person does not advise in relation to a Contract of Insurance if it is authorised under its Financial Services Permission to carry on the Regulated Activity of Advising on Investments or Credit, to the extent the advice relates to a Contract of Long-Term Insurance not being a contract of reinsurance.
        (3) An Authorised Person does not arrange a Contract of Insurance if it is authorised under its Financial Services Permission to carry on the Regulated Activity of Arranging Deals in Investments, to the extent that the arranging relates to rights under a Contract of Long-Term Insurance not being a contract of reinsurance.
        (4) The exclusions in paragraphs 75 and 81 apply to the activity specified in paragraph 33.

    • The activity

      • 36. Insurance Management

        (1) Insurance Management is a specified kind of activity.
        (2) Insurance Management means providing management services or exercising managerial functions for an Insurer.
        (3) In sub-paragraph (2) management services and managerial functions include administration and underwriting.

    • Exclusions

      • 37. Employees and Authorised Persons

        (1) A person does not provide Insurance Management to an Insurer if he is an employee of that Insurer.
        (2) An Authorised Person does not provide Insurance Management if it is an Insurer.
        (3) The exclusion in paragraph 75 applies to the activity specified in paragraph 36.