Notice) (Amendment) Regulations, 2006

L.N. 115 of 2006

INSURANCE BUSINESS ACT

(CAP.403)

Insurance Business (Long Term Business Contract Statutory

Notice) (Amendment) Regulations, 2006

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

Insurance Business Act, the Prime Minister and Minister of finance,

after consultation with the Malta Financial Services Authority, has made

the following regulations>-

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

(Long Term Business Contract Statutory Notice) (Amendment)

Regulations, 2006, and shall be read and construed as one with the

Insurance Business (Long Term Business Contract Statutory Notice)

Regulations, 2000, hereinafter referred to as “the principal regulations”.

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

2006.

Regulation 2 of the principal regulations shall be amended as

follows>

(a) in the definition “long term business contract”,

immediately after the words “falling within the Second Schedule

to the Act” there shall be added the words “, and which is not a

distance contract as defined in the Distance Selling (Retail Financial

Services) Regulations, 2005”< and

(b) for the definition “party” there shall be substituted the

following new definition>

“ “party” means any party to a long term business

contract of insurance<”.

Regulation 3 of the principal regulations shall be amended as

follows>

(a) in sub-regulation (1) thereof, the words “either prior to

the conclusion of such contract or” shall be deleted< and

(b)

sub-regulation (7) thereof, shall be amended as follows>

(i) in paragraph (a) thereof, for the words “the

proposer” there shall be substituted the words “the

policyholder”<

(ii) for paragraph (b) thereof, there shall be substituted

the following >

“(b) long term business contracts for which the

policyholder, or if there is more than one policyholder,

at least one of the policyholders, is neither a person on

whose life the contract is made nor the spouse or minor

child of such a person<”<

(iii) for paragraph (c) thereof, there shall be substituted

the following>

“(c) contracts of term insurance into which the

policyholder is required to enter in order to obtain credit

or loan facilities and such requirement is shown by

documentary evidence referred to or attached with the

proposal>

Provided that this paragraph shall not apply when

the credit or loan facility is to be granted by an

individual<”<

(iv) paragraph (d) thereof shall be renumbered as

paragraph (e)< and

(v) immediately after paragraph (c) thereof, there shall

be added the following new paragraph (d)>

“(d) long term business contracts of six months’

duration or less<”.

Regulation 4 of the principal regulations shall be amended as Amends regulation

4 of the principal

regulations.

(a) in sub-regulation (1) thereof, for the words “within a

period of fifteen days beginning from the date on which such notice

has been served,”, there shall be substituted the words “within a

period of thirty days beginning from the date on which such notice

has been served,”<

(b) for sub-regulation (4) thereof, there shall be substituted

the following>

“(4) Where a person serves a notice of cancellation,

the notice shall operate so as to cancel the contract.”< and

(c) in sub-regulation (5) thereof, for the words “Where a

notice of cancellation operates to cancel a contract or as the

withdrawal of an offer to enter into a contract - ”there shall be

substituted the words “Where a notice of cancellation operates to

cancel a contract, then - ”.

The First Schedule to the principal regulations shall be

amended as follows>

(a) in paragraph 1 thereof, for the words “entered into#have

applied to enter into” there shall be substituted the words “entered

into”<

(b) for paragraph 4 thereof, there shall be substituted the

following -

“4. The regulations give you 30 days beginning from

the day on which you are served with this notice to consider

the matter again and, if you wish, to withdraw from the

transaction.”<

(c) in paragraph 5 thereof, for the words “the insurer whose

particulars are given in paragraph 1 of this notice within the period

of 15 days” there shall be substituted the words “the insurer whose

particulars are given in paragraph 1 of this notice within the period

of 30 days”< and

(d) in paragraph 6 thereof, for the words “under the contact”

there shall be substituted the words “under the contract”.

In the Second Schedule to the principal regulations, for the

words “(insert the name of the proposer)” under the heading

“RECEIPT” there shall be substituted the words “(insert the name of

the policyholder)”.

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