Affiliated Insurance) Regulations, 2003

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 17,494, 31 ta’ Ottubru, 2003

L.N. 334 of 2003

INSURANCE BUSINESS ACT, 1998

(CAP. 403)

Insurance Business (Companies Carrying on Business of

Affiliated Insurance) Regulations, 2003

IN exercise of the powers conferred by article 64 of the Insurance

Business Act, the Minister of Finance and Economic Affairs, after

consultation with the Malta Financial Services Authority, has made the

following regulations>

(1) These regulations may be cited as the Insurance Citation.

Business (Companies Carrying on Business of Affiliated Insurance)

Regulations, 2003.

(2)

These regulations shall be deemed to have come into

force on the 3rd November, 2003.

In these regulations, unless the context otherwise requires - Interpretation.

"the Act” means the Insurance Business Act<

"affiliated insurance company” means a company carrying

on business of affiliated insurance<

"the Authority” means the competent authority appointed

under article 3 of the Act<

"business of affiliated insurance”, means the business of an

insurance company which is registered in Malta and whose business

of insurance is restricted to risks originating with shareholders or

connected undertakings or entities<

"the Directive” means an Insurance Directive made by

theCompetent Authority by virtue of article 4 of the Act for the

purposes of carrying into effect certain provisions of these

regulations,

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

these regulations have the same meanings as in the Act.

The Authority shall, by a Directive, determine the

shareholding or other connected relationships between undertakings

whose risks can be insured by the affiliated insurance company.

(1) The Act and any rules, regulations and Directives

made thereunder shall apply to a company carrying on business of

affiliated insurance, in the same manner and to the same extent, as they

apply to a company whose head office is in Malta authorised under the

Act, subject to the following provisions of this regulation.

(2)

Subarticle (7) of article 7 of the Act shall apply as if

for the period of six months prescribed therein there was substituted the

period of three months.

(3)

Paragraph (b) of subarticle (1) of article 10 of the Act

shall apply only to the extent that where the authorisation sought or

held is by an affiliated insurance company, it is required to submit proof

that it maintains the minimum guarantee fund in accordance with article

16 of the Act.

(4)

Subarticle (2) of article 10 of the Act shall apply only

to the extent that an affiliated insurance company may, with the approval

of the Authority given in writing, appoint an insurance manager.

(5)

Paragraphs (b) and (c) of subarticle (1) of article 20

thereof shall not apply but an affiliated insurance company shall be

required to provide a copy of its audited financial statements to any

person applying for such copy and the company may charge such

reasonable fees, for such copy.

(6)

Where a transfer of business of insurance is not one

where both the transferor and the transferee are companies carrying on

business of affiliated insurance, the provisions of Part VIII of the Act

shall apply subject to the following provisions of this sub-regulation>

(a)

subarticle (2) of article 33 of the Act shall apply as

follows>-

(i) paragraph (a) thereof shall not apply<

(ii)

paragraph (b) thereof shall apply to the extent

only of requiring that a notice approved for this purpose by

the Authority be sent by the transferor to every policyholder

affected by the scheme and every other person who claims an

interest in a policy included in the proposed transfer and has

given notice of his claim to the transferor< and

(iii)

paragraph (c) thereof shall apply to the extent

only of requiring that copies of a statement setting out

particulars of the transfer and approved for this purpose by

the Authority are available for inspection at the offices of the

transferor and if the company has appointed an insurance

manager, the offices of the said manager<

(b)

subarticle (4) of article 33 of the Act shall apply as

follows>

(i) paragraph (a) thereof shall apply to the extent only

of requiring that the transferee is, or immediately after the

approval will be, authorised under the laws of the country

where the head office is situated to carry on general business

of the class or classes or part classes to be transferred under

the scheme<

(ii)

paragraph (b) thereof shall apply to the extent

only of requiring that the overseas regulatory authority where

the head office of the transferee company is situated has

certified that, after taking the proposed transfer into account,

the transferee possesses the margin or margins of solvency

required to be maintained under the laws of the country of its

head office< and

(iii)

paragraph (c) thereof shall apply to the extent

only of requiring that the transferee company produces

evidence that its financial resources are, consequential to the

transfer, adequate to fulfil the other obligations required of it

by or under the applicable laws of the country where the head

office is situated<

(c)

subarticle (3) of article 35 of the Act shall apply as

follows>

(i)

paragraph (a) thereof shall not apply< and

(ii)

indent (i) of paragraph (d) thereof shall apply

to the extent only of requiring that copies of the application

and of the report mentioned in paragraph (a) of subarticle (2)

of article 35 thereof have been open to inspection at the offices

of the transferor and transferee companies and if either one

of the said companies has appointed an insurance manager,

the offices of the said manager< and

(d)

subarticle (5) of article 35 of the Act shall apply as

follows>

(i)

paragraph (a) thereof shall apply to the extent

only of requiring that the transferee is, or immediately after

the approval will be, authorised under the laws of the country

where its head office is situated to carry on long term business

of the class or classes to be transferred under the scheme< and

(ii)

paragraph (b) thereof shall apply to the extent

of requiring that the overseas regulatory authority where the

head office of the transferee is situated certifies that the

transferee, after taking the transfer into account, possesses

the margin or margins of solvency required to be maintained

under the laws of the country of its head office and that the

transferee’s financial resources are, consequential to the

transfer, adequate to fulfil the other obligations required of

it, by or under the applicable laws of the country of its head

office.

(7)

Sub-paragraph (i) of paragraph (a) of subarticle (2)

of article 39 of the Act shall not apply.

(8) Articles 44 and 47 of the Act shall not apply.

(9) Subarticle (2) of article 48 of the Act shall not apply.

(10) Part XI of the Act shall not apply to an affiliated

insurance company.

Every company which, immediately before the coming into

force of these regulations, was authorised to carry on business of

affiliated insurance under article 7 of the Act, shall, from the date of the

coming into force of these regulations be subject to the provisions of

these regulations.

Mitbug[ fl-Istamperija tal-Gvern — Printed at the Government Printing Press