INSURANCE 1 These Regulations may be cited as the Insurance (Fees) Regulations 2000 and shall come into force on 1st April 2000. 2 The Insurance (Fees) Regulations 1999 are hereby revoked. 3 In these Regulations– “ the Act ” means the Insurance Companies Act 1982; “Community deposit company” means an insurance company (other than a pure reinsurer) whose head office is not in a Member State and which has made a deposit in a Member State other than the United Kingdom in accordance with section 9(1)(c) of the Act as it has effect in pursuance of section 9(2)(b) of the Act; “gross premiums receivable” means the gross amount of premiums receivable required to be included in the documents required to be deposited under section 22(1) of the Act in relation to the financial year to which the documents relate (or, where by reason of an order made under section 68 of the Act such amounts are not required to be included, the amount which would otherwise have been required to be so included) being– in the case of a company (other than a Community deposit company or a Swiss general insurance company) which carries on either long term business or general business but not both, premiums receivable in respect of its global business; in the case of a company (other than a Community deposit company) which carries on both long term business and general business, the sum of premiums receivable in respect of its global long term business and its global general business; in the case of a Community deposit company which carries on either long term business or general business but not both through a branch in the United Kingdom, premiums receivable in respect of its United Kingdom branch business; in the case of a Community deposit company which carries on both long term business and general business through a branch in the United Kingdom, the sum of premiums receivable in respect of its United Kingdom branch long term business and United Kingdom branch general business; in the case of a Swiss general insurance company which carries on general business through a branch in the United Kingdom, premiums receivable in respect of its United Kingdom branch business; “group” means a body corporate together with– all of its wholly-owned subsidiaries; any body corporate of which it is a wholly-owned subsidiary; all bodies corporate which are wholly-owned subsidiaries of any such body corporate as is first mentioned in (b); “pure reinsurer” means an insurance company whose authorisation to carry on business in the United Kingdom is restricted to reinsurance; “wholly-owned subsidiary” has the meaning given to it by section 736(2) of the Companies Act 1985 ; “winding up” includes an analogous procedure under any jurisdiction other than that of any part of the United Kingdom. 4 Subject to regulations 5 to 8, when documents are deposited under section 22(1) of the Act the insurance company concerned shall pay to the Treasury the fee as set out in the table below, according to the amount of its gross premiums receivable for the financial year to which the documents deposited relate– Gross premiums receivable Fee Up to and including £500,000 £350 Over £500,000 up to and including £2,000,000 £1,200 Over £2,000,000 up to and including £5,000,000 £8,000 Over £5,000,000 up to and including £20,000,000 £20,000 Over £20,000,000 up to and including £75,000,000 £35,000 Over £75,000,000 £48,000 5 These Regulations do not apply in the case of an EC company. 6 1 Where the sum of the fees payable under regulation 4 by all the insurance companies within a group would exceed £336,000 the fee in respect of each of those insurance companies shall be abated proportionately so that the sum of the fees payable by those insurance companies is £336,000. 2 For the purposes of paragraph (1), an insurance company shall be deemed to be a member of a group at the date upon which it deposits documents in respect of a financial year in accordance with section 22(1) of the Act if it was a member of that group at the end of the financial year to which those documents relate. 7 No fee shall be payable under regulation 4 where, at the date upon which the documents are deposited under section 22(1) of the Act– a the insurance company is subject to the process of winding up and cannot lawfully effect any contracts of insurance; or b the insurance company is subject to a direction given under section 11 of the Act or section 11 of the Insurance Companies Act 1981 , or given under section 12A of the Act and confirmed by the Treasury pursuant to section 12A(6) of the Act , that it shall cease to be authorised to effect contracts of insurance (including reinsurance) of all classes for which it had been authorised under section 3 or 4 of the Act or under section 3 or 4 of the said Act of 1981; or c the insurance company is subject to a restriction imposed under section 68 of the Companies Act 1967 or section 13 of the Insurance Companies Amendment Act 1973 , or imposed or deemed to have been imposed under section 29 of the Insurance Companies Act 1974 which, in any of those cases and taking into account the authorisation of the company, has the result that the company is prohibited from effecting any contract of insurance (including reinsurance) in the United Kingdom. 8 These Regulations do not apply when copies of an abstract of an actuary’s report of an investigation made under section 18(1) of the Act are deposited with the Treasury unless the abstract is of a report of an investigation which is required to be made by paragraph (a) of that subsection. 9 Where a statement is deposited under section 86(1) of the Act by the Council of Lloyd’s it shall pay to the Treasury a fee of £240,000. 10 For the purposes of section 94A(6) of the Act, the relevant functions of the Treasury in relation to insurance companies and the members of Lloyd’s are anything done for the purpose of or in connection with– a sections 11 to 13, Part II, sections 75 and 78, Part IIIA, Part IV and section 94A of the Act including prosecution of offences alleged to have been committed under any of those provisions or under provisions in earlier legislation which are analogous to those provisions; b section 98 of the Act in respect of the functions set out in paragraph (a); c proposals for United Kingdom or European Communities legislation relating to insurance companies or the members of Lloyd's. Greg Pope Clive Betts Two of the Lords Commissioners of Her Majesty’s Treasury 8th March 2000