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Number 42 of 2000 INSURANCE ACT, 2000 ARRANGEMENT OF SECTIONS PART 1. Preliminary and General - PDF
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1 Number 42 of 2000 INSURANCE ACT, 2000 ARRANGEMENT OF SECTIONS PART 1 Preliminary and General Section 1. Short title, collective citation and commencement. 2. Interpretation. PART 2 The Insurance Acts Chapter 1 Amendments of Act of section 2 of Act of 1989 (Interpretation). 4. section 3 of Act of 1989 (Offences and penalties). 5. section 22 of Act of 1989 (Reinsurance). 6. Act of 1989: insertion of section 22A (Application of Act to reinsurance). 7. Act of 1989: insertion of Part IIIA (Provision of information). 8. Repeal of Part IV of Act of 1989 (Regulation of insurance intermediaries). 9. section 59 of Act of 1989 (Appointment of authorised officers). 10. section 60 of Act of 1989 (Powers of authorised officers).
2 [No. 42.] Insurance Act, [2000.] Section 11. Second Schedule to Act of 1989 (Increase of penalties). 12. Act of 1989: Third Schedule (Information for policy holders). Chapter 2 Insurance Act, Repeal of section 110 of Insurance Act, 1936 (Time limit for prosecution of offences). Chapter 3 Miscellaneous Revocations 14. Revocation and transitional provisions: Life Regulations of Revocation: authorised officers. PART 3 Amendments of Act of section 2 of Act of 1995 (Interpretation). 17. Act of 1995: insertion of section 13A (Existing insurance intermediaries). 18. section 16 of Act of 1995 (Revocation of authorisation). 19. section 17 of Act of 1995 (Register of investment business firms). 20. section 21 of Act of 1995 (Directions by supervisory authority). 21. section 25 of Act of 1995 (Definition of investment product intermediary ). 22. Part IV of Act of 1995 (Investment product intermediaries). 23. section 26 of Act of 1995 (Definition of restricted activity investment product intermediaries). 24. section 27 of Act of 1995 (Requirements for investment product intermediaries). 25. section 28 of Act of 1995 (Obligations on product producers). 26. Disclosure obligations of restricted activity investment product intermediaries. 2
3 [2000.] Insurance Act, [No. 42.] Section 27. section 30 of Act of 1995 (Issue of receipts). 28. section 31 of Act of 1995 (Register of investment product intermediaries). 29. Act of 1995: insertion of section 31A (Scope of Part IV). 30. section 37 of Act of 1995 (Code of conduct). 31. Repeal of section 51(5)(e) of Act of 1995 (Bonding). 32. section 65 of Act of 1995 (Powers of authorised officers). 33. section 74 of Act of 1995 (Power to make determinations for breaches of conditions or requirements). PART 4 Central Bank Act, section 16 of Central Bank Act, 1989 (Disclosure of information). SCHEDULE 1 SCHEDULE 2 3
4 [No. 42.] Insurance Act, [2000.] Acts Referred to Assurance Companies Act, , 9 Edw. 7. c. 49 Central Bank Act, , No. 16 Central Bank Act, , No. 8 Companies Act, , No. 27 Data Protection Act, , No. 25 European Communities Act, , No. 27 European Communities (Amendment) Act, , No. 25 Insurance Act, , No. 45 Insurance Act, , No. 3 Insurance Acts, 1909 to 1990 Investment Intermediaries Act, , No. 11 Investor Compensation Act, , No. 32 Pensions Act, , No. 25 Petty Sessions (Ireland) Act, , 14 & 15 Vict., c. 93 Solicitors Acts, 1954 to 1994 Transport (Tour Operators and Travel Agents) Act, , No. 3 4
5 Number 42 of 2000 INSURANCE ACT, 2000 AN ACT TO PROVIDE FOR THE AUTHORISATION AND SUPERVISION OF INSURANCE INTERMEDIARIES BY THE CENTRAL BANK OF IRELAND AND TO ENABLE FURTHER EFFECT TO BE GIVEN TO COUNCIL DIREC- TIVE NO. 92/96/EEC OF 10 NOVEMBER 1992 AND FOR THOSE PURPOSES AND FOR THE PURPOSE OF PRO- VIDING FOR THE DISCLOSURE OF INFORMATION IN RELATION TO LIFE ASSURANCE AND NON-LIFE INSURANCE TO AMEND THE INSURANCE ACT, 1989, AND THE INVESTMENT INTERMEDIARIES ACT, 1995, AND TO PROVIDE FOR RELATED MATTERS. [20th December, 2000] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS: PART 1 Preliminary and General Short title, collective citation and commencement. 1. (1) This Act may be cited as the Insurance Act, (2) This Act (other than sections 16 to 33) and the Insurance Acts, 1909 to 1990, may be cited together as the Insurance Acts, 1909 to (3) This Act (other than sections 3 to 15), the Investment Intermediaries Act, 1995, sections 37 to 49 of the Central Bank Act, 1997, and section 44 and sections 52 to 69 of the Investor Compensation Act, 1998, may be cited together as the Investment Intermediaries Acts, 1995 to (4) (a) Subject to subsection (5), this Act shall come into operation on such day or days as, by order or orders made by the Minister for Enterprise, Trade and Employment, may be appointed either generally or with reference to any particular purpose or provision and different days may be so appointed for different purposes and different provisions. 5
6 Pt.1 S.1 [No. 42.] Insurance Act, [2000.] (b) An order under this subsection may, as respects the repeal of Part IV of the Act of 1989 effected by section 8 of this Act, fix different days for the repeal of different provisions of the said Part IV or for the repeal for different purposes of any such provision. (5) The Minister for Enterprise, Trade and Employment shall consult with the Minister for Finance before making an order under subsection (4) with respect to sections 16 to 33 of this Act. Interpretation. 2. (1) In this Act Act of 1989 means the Insurance Act, 1989; Act of 1995 means the Investment Intermediaries Act, (2) A reference in this Act to any enactment shall be construed as a reference to that enactment as amended, extended or adapted by or under any subsequent enactment including this Act. PART 2 The Insurance Acts Chapter 1 Amendments of Act of 1989 section 2 of Act of 1989 (Interpretation). 3. Section 2 of the Act of 1989 is hereby amended in subsection (1) (a) by the substitution of the following for the definition of authorisation : authorisation means an authorisation granted by the Minister under the Regulations of 1976, the Regulations of 1984, the Non-Life Regulations of 1994 or the Life Regulations of 1994 to carry on a specified class or description of insurance business;, (b) by the deletion of the definition of client, (c) by the substitution of the following for the definition of the Insurance Acts : the Insurance Acts means the Insurance Acts, 1909 to 2000, regulations made under those Acts and regulations relating to insurance made under the European Communities Act, 1972;, (d) by the substitution of the following for the definition of insurance agent : insurance agent has the same meaning as in the Investment Intermediaries Act, 1995;, (e) by the substitution of the following for the definition of insurance broker : insurance broker has the same meaning as in the Investment Intermediaries Act, 1995;, 6
7 [2000.] Insurance Act, [No. 42.] (f) by the substitution of the following for the definition of insurance intermediary or intermediary : insurance intermediary or intermediary has the same meaning as an insurance intermediary under the Investment Intermediaries Act, 1995;, (g) by the insertion of the following after the definition of insurance intermediary : insurance undertaking or undertaking means (a) the holder of an authorisation as defined in this section, (b) the holder of an official authorisation granted pursuant to (i) Council Directive No. 73/239/EEC of 24 July as amended or extended from time to time, (ii) Council Directive No. 79/267/EEC of 5 March as amended or extended from time to time, or (iii) the Swiss Confederation Agreement as defined in the European Communities (Swiss Confederation Agreement) Regulations, 1996 (S.I. No. 25 of 1996), (c) the holder of an official authorisation to undertake insurance in Iceland, Liechtenstein or Norway pursuant to the EEA Agreement within the meaning of the European Communities (Amendment) Act, 1993, or (d) an insurance undertaking to which Article 6(4) of the Non-Life Regulations of 1994 applies;, (h) by the substitution of the following for the definition of insurer : insurer has the same meaning as insurance undertaking;, (i) by the substitution of the following for the definition of life assurance : life assurance means insurance of a class specified in Part A of Annex I to the Life Regulations of 1994;, (j) by the insertion of the following after the definition of life assurance : 1 OJ No. L 228/3, OJ No. L 63/1, the Life Regulations of 1994 means the European Communities (Life Assurance) Framework Regulations, 1994 (S.I. No. 360 of 1994);, Pt.2 S.3 7
8 Pt.2 S.3 [No. 42.] Insurance Act, [2000.] (k) by the substitution of the following for the definition of non-life insurance : non-life insurance means insurance of a class specified in Part A of Annex I to the Non-Life Regulations of 1994;, (l) by the insertion of the following after the definition of nonlife insurance : the Non-Life Regulations of 1994 means the European Communities (Non-Life Insurance) Framework Regulations, 1994 (S.I. No. 359 of 1994);, and (m) by the deletion of the definition of undertaking. section 3 of Act of 1989 (Offences and penalties). 4. Section 3 of the Act of 1989 is hereby amended by the substitution of the following for subsection (2): (2) A person guilty of an offence under this Act shall be liable (a) on summary conviction, to a fine not exceeding 1,500 or to imprisonment for a term not exceeding 12 months, or to both, or (b) on conviction on indictment, to a fine not exceeding 50,000 or to imprisonment for a term not exceeding 5 years, or to both. (2A) Where a person, after conviction for an offence under this Act, continues to contravene the provision concerned, such person shall be guilty of an offence on every day on which the contravention continues and for each such offence shall be liable to a fine (a) on summary conviction, not exceeding 200, or (b) on conviction on indictment, not exceeding 5,000. (2B) Summary proceedings for an offence under this Act may be brought by the Minister. (2C) Notwithstanding the provisions of section 10(4) of the Petty Sessions (Ireland) Act, 1851, summary proceedings for an offence under the Insurance Acts may be commenced (a) at any time within 2 years from the date on which the offence was committed, or (b) at any time within 6 months from the date on which evidence sufficient, in the opinion of the person by whom the proceedings are initiated, to justify the proceedings, comes to such person s knowledge, whichever is the later, provided that no such proceedings shall be commenced later than 5 years from the date on which the offence concerned was committed. (2D) Where a person is convicted of an offence under the Insurance Acts the court shall, unless it is satisfied that there are special and substantial reasons for not so doing, order the 8
9 [2000.] Insurance Act, [No. 42.] person to pay to the Minister the costs and expenses, measured by the court, incurred by the Minister in relation to the investigation, detection and prosecution of the offence.. Pt.2 S.4 5. Section 22 of the Act of 1989 is hereby amended by the substitution of the following for subsection (1): (1) Subject to subsection (1A), it shall not be lawful for a company registered in the State or any other person operating in the State to carry on, in the State or outside the State, the business of reinsuring business of a class to which the Insurance Acts apply unless (a) in the case of a person who holds an authorisation to carry on business in one or more classes, the authorisation extends to those classes of business in which reinsurance is being accepted, or (b) in the case of a person who does not hold an authorisation, the person has given notice of not less than 30 days to the Minister, in such form and manner and including such information as the Minister may prescribe, of the person s intention to carry on the business of reinsurance. (1A) Subsection (1) shall not apply to a company registered outside the State which does not have a place of business in the State. (1B) (a) The notice referred to in subsection (1)(b) shall include, but not necessarily be limited to, information in respect of the following: (i) ownership and share capital of the company, where applicable; (ii) directors and senior management; (iii) accountants, auditors and solicitors; (iv) the risks proposed to be covered and related policy and other arrangements. (b) Any subsequent changes in the information included in a notice referred to in subsection (1)(b) shall be notified to the Minister not later than the end of the year in which those changes occur. (1C) A person who was carrying on the business referred to in subsection (1) before the commencement of section 5 of the Insurance Act, 2000, shall, not later than 60 days after such commencement, give notice to the Minister, in such form and manner and including such information as may be prescribed, of the person s intention to continue to carry on that business, and subsection (1B) shall apply to a notice under this subsection as it applies to a notice referred to in subsection (1)(b) with any necessary modifications. (1D) A person who contravenes subsection (1)(b) or who contravenes subsection (1C) and continues to carry on the business referred to in that subsection shall be guilty of an offence. 9 section 22 of Act of 1989 (Reinsurance).
10 Pt.2 S.5 [No. 42.] Insurance Act, [2000.] (1E) The Minister may direct a company in writing to cease carrying on the business referred to in subsection (1) either indefinitely or for such period as he may specify in the direction if (a) the company contravenes subsection (1)(b) or (1C), (b) information that is, to the knowledge of the company, false or misleading is included in a notice of the company under subsection (1)(b) or (1C), (c) the Minister considers that, having regard to the risks insured or proposed to be insured by the company, the company is under capitalised, (d) the Minister considers that one or more of the directors or the senior managers of the company are not suitably qualified to direct and manage the business aforesaid of the company, (e) the Minister considers that the company has not a sufficient number of suitably qualified employees in the State to carry on effectively the business aforesaid, or (f) the Minister is in possession of information showing that the company has engaged in unlawful activities in or outside the State. (1F) Where the Minister proposes to give a direction to a company under subsection (1E) (a) he shall notify the company in writing of the proposal and shall include in the notification a statement of the reasons for the proposal, (b) the company may, within 28 days of the date of the notification, make submissions in writing to the Minister in relation to the proposal, (c) the Minister shall, before deciding to give a direction and determining its terms, take into consideration any representations made to him pursuant to paragraph (b). (1G) Subsections (5) to (9) of section 18 shall apply to a direction under this section as they apply to a direction under that section with any necessary modifications.. Act of 1989: insertion of section 22A (Application of Act to reinsurance). 6. The Act of 1989 is hereby amended by the insertion of the following after section 22: Application of Act 22A. (1) Where the Minister considers it to reinsurance. necessary to do so, in the public interest, in the interest of policy holders and in the interest of the orderly and proper regulation of the insurance industry, the Minister may by regulations provide for the application with such (if any) necessary modifications as are specified in 10
11 [2000.] Insurance Act, [No. 42.] the regulations, to the business of reinsuring business of a class to which the Insurance Acts apply of such provisions of those Acts as are so specified. (2) The Minister may, by regulations, make provision in relation to authorisations and, without prejudice to the generality of the foregoing, the regulations may (a) prohibit the carrying on by the person of the business of reinsuring business other than under and in accordance with an authorisation, (b) provide for the grant of, and the refusal to grant, authorisations by the Minister, (c) provide for the attachment of conditions by the Minister to authorisations, (d) provide for the suspension or revocation of an authorisation by the Minister where the holder contravenes a provision of the Insurance Acts or a condition attached to the authorisation, (e) specify criteria which the Minister shall take into account (whether with such other criteria as the Minister may consider appropriate or otherwise, as the regulations may specify) before deciding to grant or refuse to grant or to suspend or revoke an authorisation, (f) specify the form and manner of applications for the grant of authorisations, (g) provide for the payment of fees to the Minister in respect of applications for and the grant of authorisations, (h) require the provision to the Minister, in respect of such applications as aforesaid of such information as he or she may reasonably require and for the refusal by the Minister to grant authorisations where such information is not provided to the Minister, (i) provide for the making of returns to the Minister in respect of such matters and at such times as may be specified, (j) provide for the notification by the Minister of the person concerned of a proposal to refuse to grant or to suspend or revoke an authorisation and for the making of submissions to, and their consideration by, the Minister before deciding whether to give effect to the proposal, and 11 Pt.2 S.6
12 Pt.2 S.6 [No. 42.] Insurance Act, [2000.] (k) provide for appeals to the High Court against refusals by the Minister to grant authorisations or against revocations or suspensions by the Minister of authorisations. (3) Regulations under this section shall not apply to a person in so far as he or she carries on the business of reinsuring business by virtue of section 22(1)(a). (4) Regulations under this section may contain such incidental, supplementary and consequential provisions as the Minister considers appropriate. (5) A person who contravenes a regulation under this section or a condition attached to an authorisation shall be guilty of an offence. (6) In this section, authorisation means a document in writing in such form as the Minister may determine granted by the Minister to a person and authorising the carrying on by the person of the business of reinsuring business of a class specified in the authorisation.. Act of 1989: insertion of Part IIIA (Provision of information). 7. The Act of 1989 is hereby amended by the insertion of the following after Part III: PART IIIA Provision of Information Interpretation. 43A. (1) In this Part, unless the context otherwise requires 1 OJ No. L 360/1, Annex II means Annex II to the Directive, the text of which is set out for convenience of reference in the Third Schedule (as inserted by section 12 of the Insurance Act, 2000); client means (a) a person who proposes for insurance directly to an insurer or through an insurance intermediary or who requests an insurance intermediary to arrange insurance on his behalf, or (b) a person who is a policyholder; Directive means Council Directive No. 92/96/EEC of 10 November ; surrender value means the monetary value of a policy of insurance where it is surrendered by the policyholder to an insurer. 12
13 [2000.] Insurance Act, [No. 42.] (2) A word or expression that is used in this Part and is also used in the Directive has, unless the contrary intention appears, the same meaning in this Part that it has in the Directive. (3) In construing a provision of this Part, a court shall give to it a construction that will give effect to the Directive, and for this purpose a court shall have regard to the provisions of the Directive, including the preambles. Pt.2 S.7 Provision of information pursuant to Directive (life assurance). 43B. An insurer or an insurance intermediary shall, pursuant to the Directive, in relation to life assurance, provide to a client (a) before the conclusion of a policy of insurance, the information specified in Part A of Annex II, and (b) during the term of a policy of insurance, the information specified in Part B of Annex II, and the Minister may prescribe the form and manner in which such information is to be provided, including the form of a declaration to be signed by a client on receipt of the information and the manner and period in which the declaration is to be signed. Language of information. 43C. (1) The information specified in section 43B, and policies of insurance or copies thereof, shall, subject to section 108 of the Insurance Act, 1936, be provided in the English language. (2) Where the law applicable to the policy of insurance is the law of another Member State of the European Communities, the client may request that the information specified in section 43B, and policies of insurance or copies thereof, be provided in the official language or languages of that Member State. Further information 43D. (1) The Minister may prescribe such to be provided (life assurance and nonlife insurance). than the information referred to in section 43B) information as he considers appropriate (other to be provided by an insurer or insurance intermediary to a client in relation to proposals for and the marketing, sale, distribution, conclusion and issue of, policies of insurance and related matters (a) before the conclusion of such policies, and (b) during the term of such policies, which information shall be provided in such form and manner as may be prescribed by the Minister. 13
14 Pt.2 S.7 [No. 42.] Insurance Act, [2000.] (2) Any regulations made under this section in relation to information about payments in respect of the sale of policies of insurance to be provided to clients of insurers and insurance intermediaries shall be such as to ensure that the requirements in the regulations regarding disclosure of the remuneration of sales employees of insurers shall, in so far as is possible, be equivalent to those regarding disclosure of the payments of commission by insurers to insurance intermediaries. (3) Regulations made under this section may authorise the Minister to obtain from insurers and insurance intermediaries such information as he may reasonably require for the purpose of ensuring compliance with the regulations. (4) Regulations made under this section may (a) include such consequential, incidental, transitional or supplementary provisions as may be considered by the Minister to be necessary or appropriate, and (b) apply, either generally or by reference, to a specified class or classes of insurance or persons or to any other matter as may be considered by the Minister to be appropriate. Regulations (life assurance). 43E. (1) Without prejudice to the generality of subsection (1) of section 43D, regulations made under that subsection may provide in relation to life assurance: (a) that any or all of the following information shall be provided by an insurer or insurance intermediary to a client before the conclusion of the policy of insurance concerned: (i) the type of policy; (ii) the purpose and intention of the policy; (iii) whether the policy replaces, in whole or in part, an existing policy with the insurer concerned or any other insurer which has been or is to be cancelled or in respect of which any benefit or cover has been or is to be reduced; (iv) where an existing policy has been or is to be cancelled or any benefit or cover has been or is to be reduced, the financial consequences, if any, for the client; (v) a written statement that the premium includes the cost of the 14
15 [2000.] Insurance Act, [No. 42.] policy and any other amount payable, if any; (vi) the circumstances in which a premium may be reviewed or increased and the consequences of any failure by the client to review or increase the premium; (vii) an illustrative table which sets out the projected benefits and the surrender or maturity value of the policy and the charges, expenses and any other amount payable, if any; (viii) the consequences for the client of surrender of a policy; (ix) the consequences of non-payment of premiums; (x) the consequences of failing to disclose material facts or providing incorrect information when completing a proposal for a policy; (xi) the circumstances in which a policy may be cancelled or amended by an insurer or insurance intermediary; (b) the form of a declaration to be signed by a client on receipt of the information prescribed under section 43D and the manner and period in which the declaration is to be signed; (c) the form and manner of illustrations of the amounts of any projected benefits, expenses, charges or other payments payable and of illustrations of the means by which the amounts aforesaid are calculated; (d) that in the case of a policy of insurance which acquires a surrender or projected maturity value the insurer shall, at such time or times and in such form and manner as the Minister may prescribe, provide the client with (i) a written statement of the current premium payable and the current surrender or maturity value, and (ii) such further information as the insurer considers appropriate. (2) (a) For the purposes of subsection (1)(c), the Minister, as he considers appropriate, may provide in the regulations concerned for all or any of the following: Pt.2 S.7 15
16 [No. 42.] Insurance Act, [2000.] Pt.2 S.7 (i) that the illustrations referred to in that provision shall be prepared in accordance with (I) the advice of an actuary, and (II) any guidance notes issued by the Society of Actuaries in Ireland for that purpose; (ii) the form and manner and content of a declaration to be furnished by the insurer that all information requested by the actuary pursuant to his or her functions under the regulations concerned has been provided to the actuary and is accurate; (iii) the form and manner and content of a certificate to be furnished by the actuary that the advice given by the actuary and any guidance notes issued by the Society of Actuaries in Ireland have been complied with by the insurer in relation to the illustrations concerned. (b) In this subsection, actuary means (i) where an insurance undertaking is required to have an actuary, the person appointed to act as actuary to the insurance undertaking, or (ii) in any other case, an actuary, being a Fellow Member of the Society of Actuaries in Ireland, nominated by the insurance undertaking, to carry out any function relating to the business of the insurance undertaking which is required by the Insurance Acts to be undertaken by an actuary. Regulations (nonlife insurance). 43F. (1) Without prejudice to the generality of subsection (1) of section 43D, regulations made under that subsection may provide in relation to non-life insurance: (a) that any or all of the following information shall be provided by an insurer or insurance intermediary to a client before or after the conclusion of the policy of insurance concerned: (i) a written statement which shall specify 16 (I) the amount of the premium,
17 [2000.] Insurance Act, [No. 42.] (II) in the case of an insurance intermediary, the amount of the commission payment and any other amount payable to the insurance intermediary, if any, and the percentage of the premium represented by such commission payment or other amount, (III) the amount of any discount and the percentage of the premium represented by such discount, and (IV) the cost to the insurer of underwriting that part of the risk to be insured which relates to previous claims, if any, made by the client concerned; (ii) where applicable, a written statement that any commission payment payable is subject to a statutory notice issued by the Minister under section 37; (iii) the terms and conditions of the policy including restrictions or limitations; (iv) the consequences of failing to disclose material facts or providing incorrect information when completing a proposal for a policy; (v) particulars of any rating factor applicable and of any additional amount payable by reason of it; (vi) details of the dispute resolution procedures, where applicable; (vii) details, including the amount, of that part of an insurance claim required to be paid by the client, where applicable; (viii) in the case of an instalment scheme for the payment of a premium, the amount of interest which is payable on the premium; (ix) an explanation of the subrogation provisions of the policy, where applicable; (x) the amount (expressed as a percentage of the premium) of any tax or levy payable by the client in respect of the policy concerned; 17 Pt.2 S.7
18 Pt.2 S.7 Repeal of Part IV of Act of 1989 (Regulation of insurance intermediaries). section 59 of Act of 1989 (Appointment of authorised officers). [No. 42.] Insurance Act, [2000.] Obligations (information to certain trustees). Offences. (b) the form of a declaration to be signed by a client on receipt of the information prescribed under section 43D and the manner and period in which the declaration is to be signed; (c) that during the term of a policy of insurance, the insurer or insurance intermediary concerned shall provide to the client renewal notices which shall (i) be furnished subject to such prescribed time limits, and (ii) include such information prescribed under section 43D, as the Minister considers appropriate. (2) In this section, renewal notice means a notice in writing issued by an insurer or an insurance intermediary which requests a client to renew the policy concerned in accordance with the terms and conditions of the policy, of any endorsements to the policy and of the notice. 43FF. The Minister may by regulations provide for the giving by insurers to trustees of occu- pational pension schemes of such information as they may reasonably request for the purpose of their compliance with the provisions of the Pensions Act, G. A person who (a) contravenes a provision of regulations made under this Part, or (b) makes a false representation in relation to the matters specified in those regulations, knowing or having reason to believe that the representation is false, shall be guilty of an offence.. 8. Part IV of the Act of 1989 is hereby repealed. 9. Section 59 of the Act of 1989 is hereby amended by the substitution of the following for that section: 59. (1) The Minister, or any other person appointed by the Minister for that purpose, may authorise in writing such and so many persons to be authorised officers for the purposes of the Insurance Acts and may revoke such authorisations. (2) Every person who is appointed to be an authorised officer pursuant to this section shall be furnished with a certificate of appointment and shall, if so required, when exercising any power conferred on him by this Act, produce such certificate or a copy of it duly authenticated by the Minister or such other person appointed by the Minister for that purpose and a form of personal identification.. 18
19 [2000.] Insurance Act, [No. 42.] 10. Section 60 of the Act of 1989 is hereby amended by the substitution of the following for that section: 60. (1) The powers conferred by this section may be exercised in respect of (a) an insurer or insurance intermediary, (b) an associated undertaking or a related undertaking of an insurer or insurance intermediary, or (c) any other person whom the Minster has reason to believe provided or is providing insurance or purported or is purporting to act as an insurer or insurance intermediary. (2) An authorised officer may do all or any of the following: (a) subject to subsection (3), at all reasonable times enter any premises, at which there are reasonable grounds for believing that any books, records or other documents in relation to the issue of any policy, bond, certificate or other instrument of insurance, or in relation to the acceptance of any premium in respect of a policy, bond, certificate or other instrument of insurance are kept, and search and inspect the premises and such books, records or other documents on the premises; (b) secure for later inspection any premises or any part of a premises in which books, records or other documents are kept or there are reasonable grounds for believing that such books, records or other documents are kept; (c) require any person to whom this section applies or any person employed by such person to produce to the authorised officer such books, records or other documents and in the case of information in a non-legible form to reproduce it in a legible form or to give to the officer such information or explanation as the officer may reasonably require in relation to any entries in such books, records or other documents; (d) inspect and take copies of or extracts from, or remove for a reasonable period for further examination, any books, records, data (within the meaning of the Data Protection Act, 1988) or other documents in whatever form kept (including, in the case of information in a non-legible form, a copy of or extract from such information in a permanent legible form) which the officer finds or which is produced to the officer in the course of inspection; (e) require any person to whom this section applies or any person employed by such person to give to the authorised officer such information as the officer may reasonably require in relation to any entries in such books, records or other documents; (f) require any person to whom this section applies to give to the authorised officer any information which the authorised officer may require in regard to the business or activity concerned or in regard to the persons carrying on such business or activity or employed in connection therewith; 19 Pt.2 section 60 of Act of 1989 (Powers of authorised officers).
20 Pt.2 S.10 [No. 42.] Insurance Act, [2000.] (g) require any person by whom or on whose behalf data equipment is or has been used or any person having charge of, or otherwise concerned with the operation of, the data equipment or any associated apparatus or material, to afford the authorised officer reasonable assistance in relation thereto; (h) summon, at any reasonable time, any other person employed in connection with the business or activity concerned to give to the authorised officer any information which the officer may reasonably require in regard to such business or activity and to produce to the authorised officer any books, records or other documents which are in that person s power or control; (i) require any person employed in the premises concerned to prepare a report on specified aspects of the business or activities of a person to whom this section applies or to explain entries in any books, records, documents or other materials furnished. (3) An authorised officer shall not, other than with the consent of the occupier, enter a private dwelling unless he has obtained a warrant issued by a judge of the District Court under subsection (9) authorising such entry. (4) A person who has in his power, possession or procurement any books, records or other documents referred to in subsection (2) shall (a) produce them at the request of an authorised officer and permit the authorised officer to inspect and take copies of, or extracts from, them, (b) at the request of an authorised officer, give any information which may be reasonably required with regard to them, and (c) give such other assistance and information to an authorised officer as is reasonable in the circumstances. (5) Where any person from whom production of a book, record or other document is required claims a lien thereon the production of it shall be without prejudice to the lien. (6) Nothing in this section shall compel the disclosure by any person of any information which the person would, in the opinion of the Court, be entitled to refuse to produce on the grounds of legal professional privilege or authorise the taking possession of any document containing such information which is in his possession. (7) The duty to produce or provide any information, document, material or explanation extends to an examiner, liquidator, receiver, official assignee or any person who is or has been an officer or employee or agent of a person to whom this section applies, or who appears to the Minister or the authorised officer to have the information, document, material or explanation in his possession or under his control. 20
21 [2000.] Insurance Act, [No. 42.] (8) An authorised officer, where he considers it necessary, may be accompanied by a member of the Garda Síochána when performing any powers conferred on an authorised officer by this Act. (9) If a judge of the District Court is satisfied on the sworn information of an authorised officer that there are reasonable grounds for suspecting that there is information required by an authorised officer under this section held on any premises or any part of any premises, the judge may issue a warrant authorising an authorised officer, accompanied by other authorised officers or by a member of the Garda Síochána, at any time or times within one month from the date of issue of the warrant, on production of the warrant if so requested, to enter the premises, if need be by reasonable force, and exercise all or any of the powers conferred on an authorised officer under this section. (10) A person who (a) obstructs or impedes an authorised officer in the exercise of a power under this Act, (b) gives to an authorised officer information which the person knows is false or misleading, or (c) without reasonable excuse, fails to comply with a request or requirement made by an authorised officer under this Act, shall be guilty of an offence. (11) (a) If any officer, employee, shareholder or agent of a person to whom this section applies refuses to produce to an authorised officer when requested to do so any book or document which it is his duty under this section to produce, or refuses to cooperate with an authorised officer when required to do so, or refuses to answer any question put to him by an authorised officer with respect to the affairs of the insurer or insurance intermediary, the authorised officer may certify the refusal under his hand to the Court. (b) Where a refusal is certified to the Court, the Court may enquire into the case and, after hearing any witnesses who may be produced against or on behalf of the officer, employee, shareholder or agent of the person to whom this section applies and any statement which may be offered in defence, make any order or direction as it thinks fit. (c) An order or direction made under paragraph (b) may include a direction to the person concerned to attend or re-attend before the authorised officer or produce particular books or documents or answer a particular question put to him by the authorised officer, or a direction that the person concerned need not produce a particular book or document or answer a particular question put to him by the authorised officer. Pt.2 S.10 21
22 Pt.2 S.10 [No. 42.] Insurance Act, [2000.] (12) In this section agent, in relation to a person to whom this section applies, or any associated or related undertaking, includes past as well as present agents, and includes its bankers, accountants, solicitors, auditors and its financial and other advisers, whether or not those persons are officers or persons to whom this section applies; associated undertaking and related undertaking have the same meaning as in the Investment Intermediaries Act, 1995; person to whom this section applies means a person referred to in subsection (1)(a), (b) or(c); specified means specified under this section.. Second Schedule to Act of 1989 (Increase of penalties). Act of 1989: Third Schedule (Information for policy holders). 11. The Second Schedule to the Act of 1989 is hereby amended by the substitution for that Schedule of the Schedule set out in Schedule 1 to this Act. 12. The Act of 1989 is hereby amended by the addition after the Second Schedule of the Schedule set out in Schedule 2 to this Act. Chapter 2 Insurance Act, 1936 Repeal of section 110 of Insurance Act, 1936 (Time limit for prosecution of offences). Revocation and transitional provisions: Life Regulations of Section 110 of the Insurance Act, 1936, is hereby repealed. Chapter 3 Miscellaneous Revocations 14. (1) Subject to subsection (2), sub-articles (1) and (2) of Article 45 of, and Annex III to, the Life Regulations of 1994 are hereby revoked. (2) Notwithstanding subsection (1) (a) where a proposal is made by a client to an insurance undertaking (within the meaning of the Life Regulations of 1994) and the policy of insurance has not issued before the commencement of Part IIIA of the Act of 1989, subarticles (1) and (2) of Article 45 of, and paragraphs 1 to 16 of Annex III to, the Life Regulations of 1994, shall continue to apply to the proposal, and (b) where a policy of insurance has issued before the commencement of the said Part IIIA, the said sub-articles (1) and (2) of Article 45 and paragraphs 17 to 22 of the said Annex III shall continue to apply to the policy. Revocation: authorised officers. 15. (1) The European Communities (Life Assurance) Regulations, 1984 (S.I. No. 57 of 1984) are hereby amended by the revocation of Articles 37 and 38 (both inserted by the European Communities (Life Assurance) (Amendment) Regulations, 1985 (S.I. No. 296 of 1985)). 22
23 [2000.] Insurance Act, [No. 42.] (2) The European Communities (Non-Life Insurance) Regulations, 1976 (S.I. No. 115 of 1976) are hereby amended by the revo- Pt.2 S.15 cation of Articles 35 and 36 (both inserted by the European Communities (Non-Life Insurance) (Amendment) Regulations, 1985 (S.I. No. 297 of 1985)). PART 3 Amendments of Act of (1) Section 2 of the Act of 1995 is hereby amended in subsection (1) (a) by the insertion of the following after the definition of indirect subsidiary : section 2 of Act of 1995 (Interpretation). insurance agent means an insurance intermediary acting for a limited number of insurance undertakings as specified in section 25C of this Act; insurance broker means an insurance intermediary acting with the freedom of choice described in section 25B of this Act; insurance intermediary means any person who, on a professional basis (a) assists or offers to assist third parties in the placing or taking-up of insurance, or (b) gives or offers to give advice regarding insurance policies to third parties, but does not include an insurance undertaking or an employee of an insurance undertaking when the employee is acting for that insurance undertaking; insurance undertaking has the same meaning as in the Insurance Act, 1989;, (b) in the definition of investment instruments (i) by the insertion of the following after paragraph (l): (m) insurance policies;, and (ii) in paragraph (III) by the deletion of, or an insurance policy, (c) by the insertion of the following after the definition of investment limited partnership : investor includes a client of an investment business firm or of an insurance intermediary;, (d) by the insertion of the following after the definition of investment limited partnership : life assurance has the same meaning as in the Insurance Act, 1989; life assurance intermediary means a person who acts as an insurance intermediary in respect of life assurance;,
24 Pt.3 S.16 [No. 42.] Insurance Act, [2000.] (e) in the definition of officer by the insertion after by whatever name called of and includes a shadow director within the meaning of the Companies Act, 1990,, (f) by the insertion of the following after the definition of Official Assignee : non-life insurance has the same meaning as in the Insurance Act, 1989; non-life insurance intermediary means a person who acts as an insurance intermediary in respect of non-life insurance;, (g) by the substitution of the following for the definition of product producer : product producer means a firm, institution, collective undertaking, investment company or insurance undertaking of the kind referred to in section 26(1)(i) to (vii) of this Act;, (h) by the insertion of the following after the definition of regulated market : the Regulations of 1989 mean the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 1989 (S.I. No. 78 of 1989), and includes any subsequent amendments thereto;, and (i) by the insertion of the following after the definition of supervisory authority : tied insurance agent means an insurance agent who enters into (a) an agreement or arrangement with an insurance undertaking whereby the agent undertakes to refer all proposals of insurance to that insurance undertaking, or (b) an agreement or arrangement with an insurance undertaking which restricts in any way the agent s freedom to refer proposals of insurance to any insurance undertaking other than the insurance undertaking with whom the agent entered into that agreement or arrangement;. (2) Section 2 of the Act of 1995 is hereby amended in subsection (6) by the substitution of the following for paragraph (h): (h) credit institutions which provide investment business services or investment advice.. Act of 1995: insertion of section 13A (Existing insurance intermediaries). 17. The Act of 1995 is hereby amended by the insertion of the following after section 13: Existing insurance intermediaries. 13A. (1) Notwithstanding section 9 of this Act, a person who is an insurance intermediary on the day immediately prior to the coming into operation of section 16(1)(b) of the Insurance Act, 24
25 [2000.] Insurance Act, [No. 42.] 2000, and who is not deemed to be authorised under Part IV or VII of this Act may stand authorised, on the coming into operation of section 16(1)(b) of the Insurance Act, 2000, as an authorised investment business firm until the supervisory authority has granted or refused authorisation to it, provided that no later than 3 months after the coming into operation of section 16(1)(b) of the Insurance Act, 2000, that person applies to the supervisory authority under section 10 of this Act for authorisation. (2) For the purposes of this section, references in section 10 of this Act to a proposed investment business firm shall be construed as references to a person who stands authorised as an investment business firm under subsection (1) of this section. (3) Pending a decision by the supervisory authority to authorise a person who is an insurance intermediary and who stands authorised as an investment business firm under subsection (1) of this section, or during the 3 months referred to in that subsection, or during both such times, the supervisory authority may do all or any of the following: (a) impose such conditions or requirements or both as it thinks fit relating to the proper and orderly regulation and supervision of the investment business firm or in relation to the protection of clients, including conditions and requirements, or both, which relate to matters in an associated undertaking, a related undertaking, or in both; (b) issue directions under this Act. (4) A person to whom subsection (1) of this section refers may appeal to the Court against the conditions or requirements imposed under subsection (3) of this section. (5) On hearing an application under subsection (4) of this section, the Court may confirm, vary or rescind any condition or requirement imposed under subsection (3) of this section.. Pt.3 S Section 16 of the Act of 1995 is hereby amended in subsection (1) by the substitution of the following paragraph for paragraph (k): (k) a director, manager or qualifying shareholder of a person who is an authorised investment business firm or is deemed by virtue of section 26 or 63 of this Act to be such a firm no longer satisfies the supervisory authority as to the matters specified in paragraphs (d) and (e) of section 10(5) of this Act,. section 16 of Act of 1995 (Revocation of authorisation). 19. Section 17 of the Act of 1995 is hereby amended by the substitution of the following subsection for subsection (2): 25 section 17 of Act of 1995 (Register of investment business firms).
26 Pt.3 S.19 [No. 42.] Insurance Act, [2000.] (2) The supervisory authority shall arrange for (a) the register or registers maintained by it pursuant to subsection (1), or a copy or copies thereof, to be made available at the same place at all reasonable times for inspection by members of the public on payment of such fee as it may specify, and (b) the publication, in electronic form or such other form as it considers appropriate, of the register or registers aforesaid.. section 21 of Act of 1995 (Directions by supervisory authority). 20. Section 21 of the Act of 1995 is hereby amended by the insertion in subsection (2) after paragraph (b) of the following: (bb) has failed to provide to the supervisory authority within such reasonable period as may be specified by it such information as it may reasonably request for the purpose of its functions under section 20(1) of this Act, or. section 25 of Act of 1995 (Definition of investment product intermediary ). 21. Section 25 of the Act of 1995 is hereby amended by the substitution of the following for that section: 25. In this Act, investment product intermediary means an investment business firm or a solicitor holding a practising certificate (within the meaning of the Solicitors Acts, 1954 to 1994) who does all or any of the following: (a) acts as a deposit agent or as a deposit broker; (b) provides a service for the reception and transmission of orders to a product producer in (i) units or shares in undertakings for collective investments in transferable securities within the meaning of the Regulations of 1989, (ii) units in a unit trust, (iii) other collective investment scheme instruments, (iv) shares in a company which are listed on a stock exchange, (v) bonds listed on a stock exchange or prize bonds, (vi) tracker bonds, or (vii) insurance policies.. Part IV of Act of 1995 (Investment product intermediaries). 22. Part IV of the Act of 1995 is hereby amended by the insertion of the following after section 25: Acting as insurance intermediary. 25A. (1) An insurance intermediary shall not place or attempt to place insurance, other than reinsurance, otherwise than with an insurance undertaking. (2) The Investor Compensation Act, 1998, shall not apply to insurance intermediaries if and in so far as their business relates to reinsurance or advice regarding reinsurance policies. 26