Notice) Regulations, 2000

L.N. 106 of 2000

INSURANCE BUSINESS ACT

(CAP. 403)

Insurance Business (Long Term Business Contract Statutory

Notice) Regulations, 2000

IN exercise of the powers conferred by sections 44 and 64 of the

Insurance Business Act, ;-he Minister of Finance, after consultation with

the Malta Financial Services Centre, has made the following regulations

(1) The title of these regulations is the Insurance Business

(Long Term Business Contract Statutory Notice) Regulations, 2000. Citation and

commencement.

(2) These regulations shall come into force on the 1st

January, 2001.

(Regulation 3)

STATUTORY NOTICE: LONG TERM BUSINESS CONTRACTS

(insert the name and address of the person to whom this Notice is sent)

IMPORTANT! READ THIS NOTICE CAREFULLY

STATUTORY NOTICE RELATING TO LONG TERM BUSINESS

CONTRACTS OF INSURANCE (OTHER THAN LINKED LONG TERM

CONTRACTS) ISSUED IN COMPLIANCE WITH THE PROVISIONS OF

THE INSURANCE BUSINESS (LONG TERM BUSINESS CONTRACT

STATUTORY NOTICE) REGULATIONS, 2000.

YOUR RIGHT TO CHANGE YOUR MIND

(identify the contract to which the notice relates or state how it may be identified, e.g.

by reference to an accompanying contract note)

1. You have entered into / have applied to enter into a long term business contract

of insurance with

(insert the name and address of the insurer with whom the contract has been entered

into / is being entered into).

2. You have a legal right to consider the matter again and change your mind if you

wish.

Points to consider

3. Before you decide whether you want to change your mind, ask yourself

If you received personal advice on your policy, are you clear whether that advice

was given by an independent person working on your behalf or by someone

representing the insurer?

Have you received all the information you want in order to understand your policy?

•

Are you satisfied that the policy is suitable for your needs and you meet the

obligations of the policy?

If the answer to any of these questions is NO, you should consult your adviser (or the

insurer) as quickly as possible. There is no extension to the cancellation period if you

ask for further information or the reply is delayed.

4. The regulations give you 15 days beginning from the day on which you are served

with this notice to consider the matter again and, if you so wish, to withdraw from the

transaction.

Your right to withdraw from the transaction

5. If you wish to go ahead with the transaction you should do nothing with the

attached notice of cancellation. But if you wish to withdraw and to have repaid to you

any money you have paid to the insurer or his representative in connection with the

contract, you should serve notice of cancellation (either on the form attached to this

notice or otherwise in writing to the same effect) to the insurer whose particulars are

given in paragraph 1 of this notice within the period of 15 days.

Financial consequences of withdrawal

6. If you withdraw, you are entitled to have repaid to you any money you have paid

the insurer or his representative, and you will have to repay any amounts already paid

to you by the insurer under the contact.

Acknowledgement

In these regulations, unless the context otherwise requires -

Interpretation_

"the Act" means the Insurance Business Act;

"the Centre" means the Malta Financial Services Centre

established by section 3 of the Malta Financial Services Centre

Act and appointed under section 3 of the Act to be the Competent Cap_ 330.

Authority for the purposes of the Act;

"long term business contract" means a contract of insurance

of a long term business class, other than class III, linked long term,

falling within the Second Schedule to the Act;

"insurer" means any company authorised under the Act to

carry on long term business in Malta;

"party" means any party to a long term business contract of

insurance, whether or not such contract has been entered into;

"term insurance" means a long term business contract of

insurance which provides solely for the payment by the insurer of

a sum of money or other consideration upon the happening of death

within a term which is specified in the contract, and which is not

extendible by any of the parties thereto;

and the words and expressions which are also used in the Act have the

same meanings as in the Act.

(Regulation 3)

NOTICE OF CANCELLATION

(To be returned only if you wish to cancel the contract)

IMPORTANT! THIS NOTICE, IF MADE USE OF, MAY BE SERVED BY

HAND, BY YOU OR BY SOMEONE ELSE ON YOUR BEHALF, OR BY

REGISTERED POST

* (contract reference or code number)

* (name of insurer)

* (address of insurer)

I, the undersigned, hereby give notice that I have decided not to proceed with this long

term business contract of insurance and that I request the return of the money paid to

you or your representative in connection with the said contract.

Signed

Name in block capitals

Address

Date

* (To be filled in by the insurer)

RECEIPT

I, the undersigned, hereby acknowledge receipt of the Notice of Cancellation relating

to the long term business contract of insurance reference/code number

...........................................(insert number)

proposed by

(insert the name of the proposer)

Signed

Name in block capitals

Name of insurer/insurance agent

Date

(1) No insurer shall enter into a long term business contract

unless that insurer serves upon the other party a statutory notice in

relation to that contract either prior to the conclusion of such contract

or at the time when the contract is entered into.

(2)

A statutory notice is a notice which -

(a) contains such matters (and no others) and is in the form

set out in the First Schedule to these regulations and complies with

the requirements specified in the following paragraphs of this

regulation; and

(b) has annexed to it a form of notice of cancellation as set

out in the Second Schedule to these regulations.

A statutory notice shall be made out in the Maltese and

(3)

English languages and printed on a single sheet of paper having the

context in one language printed on the front and the content in the other

language printed on the back of the paper.

(4) A statutory notice shall be easily legible and shall, as

nearly as practicable, be a reproduction of that set out in the First

Schedule (and, in so far as it relates to the notice of cancellation, that

set out in the Second Schedule) to these regulations, whether as respects

size, colour, print, the use of capitals or bold lettering and other means

of emphasis.

(5) For the purpose of paragraph (1) of the form set out in

the said First Schedule the reference to a name shall be deemed to include

a reference to the description or title of the person concerned.

(6) An insurer who contravenes any of the provisions of

this regulation shall be guilty of an offence and shall be liable, on

conviction, to a fine (multa) of not less than 200 Maltese liri but not

exceeding 1,000 Maltese liri; but, without prejudice to paragraph (2) of

regulation 4 of these regulations, no long term business contract shall

be invalidated by reason of the fact that the insurer has contravened this

regulation in relation to that contract.

Paragraph (1) of this regulation shall not apply to -

(7)

(a) long term business contracts for which the proposer is

not an individual;

(b) long tenn business contracts for which the proposer, or,

if there is more than one proposer, at least one of the proposers is

neither a person on whose life the contract is made nor the spouse

or minor child of such a person;

(c)

long tenn business contracts of tenn insurance;

(d)

long tenn business contracts ofreinsurance.

Notice of

cancellation.

(1) A person upon whom a statutory notice has been served

by an insurer in relation to any contract to which paragraph (1) of

regulation 3 of these regulations applies, may, within a period of fifteen

days beginning from the date on which such notice has been served,

serve on the insurer a notice of cancellation which complies with

paragraph (3) of this regulation.

(2) A person to whom an insurer ought to have, but has not,

served a statutory notice in relation to any such contract as aforesaid

may, before the lapse of one year beginning from the date of contract,

serve a notice of cancellation on the insurer. If, however, the insurer

serves a statutory notice upon such person in relation to that contract

before such latter person has served a notice of cancellation under this

paragraph, then, without prejudice to his right to serve a notice of

cancellation under paragraph (1) of this regulation, the right of such

latter person to do so under this paragraph shall cease.

(3) A notice of cancellation may, but need not, be in the

form annexed to the statutory notice, and shall have effect if, however

expressed, it indicates the intention of the person serving it to withdraw

from the transaction in relation to which the statutory notice was or

ought to have been served. Save as aforesaid, the requirements

applicable to the statutory notice shall mutatis mutandis apply to a notice

of cancellation.

(4)

Where a person serves a notice of cancellation, then-

(a) if at the time when the notice is served the contract has

been entered into, the notice shall operate so as to cancel the

contract;

(b) in any other case, the service of the notice shall operate

as a withdrawal of any offer to enter into the contract which is

contained in, or implied by, any proposal made to the insurer by

the person serving the notice of cancellation and as notice to the

insurer that any such offer is withdrawn.

(5) Where a notice of cancellation operates to cancel a

contract or as the withdrawal of an offer to enter into a contract -

(a) any money which the person serving the notice has paid

in connection with the contract (whether by way of premium or

otherwise, and whether to the insurer or to a person who is the

agent of the insurer for the purpose of receiving the money) shall

be recoverable from the insurer by the person serving the notice;

(b) any benefit under the policy which the insurer has paid

to the person serving the notice shall be refunded by such person

to the insurer.

(1) Forthe purpose of paragraph (1) of regulation 3 ofthese

regulations, a statutory notice shall be deemed to be served on the other

party if it is sent to such party by registered post at the address specified

on the proposal form.

(2) For the purpose of regulation 4 of these regulations, a

notice of cancellation shall be deemed to be served on the. insurer if it is

sent by registered post to the person specified on the statutory notice at

the address specified also thereon.

(3) Notwithstanding the provisions of paragraphs (1) and

(2) of this regulation, a statutory notice or a notice of cancellation, as

the case may be, may be served on the other party, or the representative

of the other party, by any other manner whatsoever

Provided that, other than serving by a judicial manner or

registered post, the party receiving the notice shall sign the receipt of

acknowledgement which has to indicate the date of signature and

surrender such receipt to the party serving the notice.

(4) Forthe purpose of these regulations, the date on which

a statutory notice or a notice of cancellation, as the case may be, shall

be deemed to be served on the other party-

(a)

when served by registered post

(i) in respect of a statutory notice, shall be the first

working day following the day of posting; and

(ii) in respect of a notice of cancellation, shall be the

day of posting; and

(b) when served by any other manner, save a judicial

manner, shall be the date on the receipt of acknowledgement.

(1) Saving the provisions of paragraph (2) of this regulation,

the Life Insurance (Statutory Notice) Regulations, 1989 (hereinafter in

these regulations referred to as "the 1989 Regulations"), are hereby

repealed without prejudice to anything done or omitted to be done

thereunder.

(2) Where, immediately after the date of coming into force

of these regulations, a statutory notice or a notice of cancellation, as the

case may be, in relation to a long term business contract of insurance

was, immediately before that date, served or ought to have, but has not,

been served, as respects a statutory notice, under paragraph (1) of

regulation 3 of the 1989 Regulations, a notice of cancellation, under

paragraph (1) or (2) of regulation 4 of the 1989 Regulations, regulation

3 or 4 of the 1989 Regulations, as the case may be, shall, in relation to

that contract, continue to have effect until the requirements under the

appropriate regulation had been satisfied.

B (044

If you have been served with this notice by hand, you are asked to acknowledge

its receipt by signing the sub-joined form hereunder on a duplicate copy of this notice.

Signed

Name in block capitals

Office

MAKE SURE THAT YOU KEEP THIS NOTICE AND THAT YOU ONLY

RETURN A COPY THEREOF, DULY SIGNED AND DATED, TO THE PERSON

WHO HAS SERVED IT ON YOU.

RECEIPT

I, the undersigned, hereby declare that I have been served with the Statutory Notice

relating to the long term business contact of insurance, of which the above is a copy.

Signed

Name in block capitals

Date