Statutory Notice) (Amendment) Regulations, 2015

L.N. 402 of 2015

INSURANCE BUSINESS ACT

(CAP. 403)

Insurance Business (Long Term Business Contract

Statutory Notice) (Amendment) Regulations, 2015

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

Insurance Business Act, the Minister for Finance, after consultation

with the Malta Financial Services Authority, has made the following

regulations:-

(1) The title of these regulations is the Insurance Citation and

Business (Long Term Business Contract Statutory Notice) commencement.

(Amendment) Regulations, 2015, and these regulations shall be read

and construed as one with the Insurance Business (Long Term S.L. 403.10

Business Contract Statutory Notice) Regulations, hereinafter referred

to as ''the principal regulations''.

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

2016.

Regulation 2 of the principal regulations shall be amended Amends

regulation 2 of

as follows

the principal

regulations.

(a)

the definition ''the Authority'' shall be deleted;

(b) immediately after the definition ''the Act'', there

shall be added the following new definition

'' ''competent authority'' means the Malta

Financial Services Authority established by

the Malta Financial Services Authority Act;'';

and

(c)

in the definition ''insurer'', for the words ''any

company authorised under the Act'', there shall be substituted

the words ''any insurance undertaking authorised under the Act''.

Regulation 3 of the principal regulations shall be amended Amends

regulation 3 of

as follows

the principal

regulations.

(a) for sub-regulation (3) thereof, there shall be

substituted the following

''(3) (a) In the case of a long term business

contract, where Malta is the country of commitment, a

statutory notice shall be made out in the Maltese and

English languages.

(b) In the case of a long term business

contract where Malta is not the country of commitment,

the statutory notice shall be made out in the language of

the country of the commitment, or in any other language

agreed to by the parties.''; and

(b) in sub-regulation (6) thereof, for the words ''to a fine

(multa) of not less than four hundred and sixty-five euro and

eighty-seven cents (€465.87) but not exceeding two thousand

and three hundred and twenty-nine euro and thirty-seven cents

(€2,329.37);'', there shall be substituted the words ''to a fine

(multa) of not less than one thousand euro (€1,000) and not

exceeding one hundred and fifty thousand euro (€150,000);''.

For sub-regulation (4) of regulation 4 of the principal

regulations, there shall be substituted the following

''(4) Where a person serves a notice of cancellation, the

notice shall operate so as to

(a) cancel the contract as if that contract was

never issued or signed by the insurer; and

(b) have the effect of releasing a person from any

future obligation arising from the contract.''.

€0.18