INDUSTRIAL ASSURANCE Citation and commencement 1 These Regulations may be cited as the Industrial Assurance (Life Assurance Premium Relief) (Change of Rate) Regulations 1980, and shall come into operation on 20th January 1981. Interpretation 2 In these Regulations— “ the 1977 Regulations ” means the Industrial Assurance (Life Assurance Premium Relief) Regulations 1977 ; “ industrial assurance company ” and “ collecting society ” have the meanings assigned by section 1 of the Industrial Assurance Act 1923 as amended by Schedule 6 to the Companies Act 1967 ; “ the prescribed scheme ” means the scheme prescribed in Schedule 1 to the Industrial Assurance (Life Assurance Premium Relief) Regulations 1977 ; “ an approved scheme ” means a special scheme approved by the Industrial Assurance Commissioner in the circumstances provided for in regulation 7 of the Industrial Assurance (Life Assurance Premium Relief) Regulations 1977 ; “ actuary ” means an actuary having the qualifications which are prescribed by the Friendly Societies (Qualifications of Actuaries) Regulations 1968 ; “ net premium ” has the meaning assigned in paragraph 3 of Schedule 1 to the Industrial Assurance (Life Assurance Premium Relief) Regulations 1977 ; “ gross premium ” means the premium of the amount payable under the policy or contract ; “ the authorised percentage ” means the percentage for the time being in force under paragraph 5(a) of Schedule 4 to the Finance Act 1976 ; “ the effective date ” means the date on which a change in the authorised percentage takes effect ; “ amended net premium ” shall be a sum equal to the gross premium less the authorised percentage, such sum to be rounded off in accordance with the principles set out in Schedule 1 of the 1977 Regulations ; “ parent ” includes a stepfather and a stepmother . Amendment of a scheme 3 1 Where an industrial assurance company or collecting society has adopted the prescribed scheme or an approved scheme in accordance with the provisions of the 1977 Regulations the company or society may, by resolution of its board of directors or, as the case may be, of its committee of management, passed within eight months of the passing of any Act making a change in the authorised percentage, amend any such scheme so that amounts equal to the authorised percentage of the gross premiums due and payable on or after the effective date under policies or contracts to which the scheme applies shall be retained by or refunded to the persons paying the premiums. 2 Where an industrial assurance company or collecting society has amended any such scheme, amounts equal to the authorised percentage of the gross premiums payable under policies or contracts to which the scheme applies shall be retained by or refunded to the persons paying the premiums as provided in the scheme so amended. 3 Written notice of a resolution amending the prescribed scheme or an approved scheme shall within fourteen days of the passing thereof be sent by the industrial assurance company or collecting society to the Industrial Assurance Commissioner. 4 Where a collecting society has resolved to amend the prescribed scheme or an approved scheme any right conferred by section 21 of the Friendly Societies Act 1974 or section 10(1) of the Industrial Assurance and Friendly Societies Act 1948 on any person to receive a copy of the rules of the society or of an amendment thereof shall be extended so as to include the right to receive a copy of the resolution and of the amended scheme adopted by the resolution. Amendment of gross premium 4 1 Where, by virtue of regulation 4 of the 1977 Regulations, a resolution adopting the prescribed scheme provided that the gross premium was to be increased with effect from 6th April 1979 in respect of any specified class of policy or contract, a resolution amending the prescribed scheme may also amend the gross premium so that with effect from the effective date the gross premium shall be amended to such sum as after deduction of the authorised percentage thereof equals the amount expressed in the policy or contract to be the premium. 2 Where such an amendment is made, the resolution shall operate so as to effect the above mentioned amendment in the gross premium payable under every policy or contract of a class to which the provision relates, and the prescribed scheme as amended shall take effect accordingly. Corresponding amendment to sum assured 5 Where a gross premium has been amended under regulation 4, the sum assured or guaranteed by the policy or contract may be amended by an amount determined in accordance with rules which have been certified by an actuary to be fair in relation to the gross premium payable and have been approved by the Industrial Assurance Commissioner. 6 Where the gross premium is amended in accordance with these Regulations, the industrial assurance company or collecting society shall, on being requested in writing after 5th April 1981 to do so by the person by whom the premium is payable, notify him in writing of the effect of the amendment on the sum assured or guaranteed or of any other effect. 7 Where by virtue of regulation 6 of the 1977 Regulations a person insured under a policy or contract irrevocably elected that the premium under the contract under which he was insured should be increased with effect from 6th April 1979, the amendment to the gross premium shall apply as from the effective date as if it had been effected under regulation 4(2), and regulations 5 and 6 shall apply in respect of an amended premium under this regulation as they apply in relation to an amendment under regulation 4. Amendment of approved schemes 8 Where an industrial assurance company or a collecting society adopted an approved scheme under regulation 7 of the 1977 Regulations, the Industrial Assurance Commissioner may, within eight months of the passing of any Act making a change in the authorised percentage, approve any amendment to the scheme which in his view is expedient or necessary to give effect to the change in the authorised percentage. Notice or advertisement 9 Where an industrial assurance company or collecting society has, in accordance with the provisions of these regulations, amended the prescribed scheme or an approved scheme adopted by it, as soon as is reasonably practicable it shall either: a serve upon every person paying premiums to the company or society who is affected by the amendment a notice containing a statement setting out the effects thereof; or b publish or cause to be published such notice by advertisement in one or more newspapers in general circulation in the area where the company or society carries on business. Amendment of rules 10 Notwithstanding anything contained in the rules of a collecting society which has amended the prescribed scheme or an approved scheme, the committee of management of the society may, by resolution passed before the effective date, make amendments to the rules of the society in connection with the amendment by the society of any such scheme. Modifications of enactments 11 The enactments mentioned in the Schedule to these Regulations shall have effect subject to the adaptations and modifications set out in that Schedule. K. Brading Industrial Assurance Commissioner 15th December 1980