INSURANCE DISTRIBUTION (EXEMPTION) REGULATIONS

INSURANCE DISTRIBUTION

(EXEMPTION)

SUBSIDIARY LEGISLATION 487.06

INSURANCE DISTRIBUTION

(EXEMPTION) REGULATIONS

1st October, 2018

LEGAL NOTICE 237 of 2018.

(1)

The title of these regulations is the Insurance

Distribution (Exemption) Regulations.

(2)

The purpose of these regulations is to transpose and

implement Articles 1(3), 1(4) and 2(2) of the Insurance Distribution

Directive, which shall be interpreted and applied accordingly.

Any reference in these regulations to the Act is a

reference to the Insurance Distribution Act, and the provisions of

article 2 of the Act shall also apply to these regulations.

A person carrying out insurance distribution activities on

an ancillary basis in relation to contracts of insurance shall be

exempted from the requirement of enrolment in terms of article 43E of

the Act, if all the following conditions are satisfied

(a)

the contract of insurance is complementary to the

good or service supplied by the person, where such

contract covers

(i)

the risk of breakdown, loss of, or damage to, the

good or the non-use of service supplied by that

person; or

(ii)

damage to, or loss of, baggage and other risks

linked to the travel booked with that person;

(b) without prejudice to paragraph (c), the amount of the

premium of the contract of insurance does not exceed

six hundred euro (€ 600) calculated on a pro rata

annual basis; and

(c) notwithstanding paragraph (b), where the contract of

insurance is complementary to a service referred to in

paragraph (a), and the duration of that service is equal

to, or less than, three months, the amount of the

premium paid, per person, does not exceed two

hundred euro (€ 200).

(1)

An authorised insurance undertaking, an enrolled

insurance agent or an enrolled insurance broker which has appointed

and registered an ancillary insurance intermediary which, pursuant to

regulation 3, is exempted from the requirement of enrolment in terms

of article 43E of the Act, shall require such ancillary insurance

intermediary to comply with the following requirements

(a) make information available to the client, prior to

the conclusion of the contract of insurance, about its identity

INSURANCE DISTRIBUTION

(EXEMPTION)

and address, and about the procedures allowing clients and other

interested parties to lodge complaints and the arrangements for

handling complaints concerning contracts of insurance by such

undertaking, agent or broker;

(b) have appropriate and proportionate arrangements in

place to comply with information and conduct of business

requirements set out in the applicable Conduct of Business

Rules, and to consider the demands and needs of the client before

the proposal of the contract; and

(c) provide to the client, prior to the conclusion of the

contract of insurance, the insurance product information

document, referred to in Conduct of Business Rules.

(2)

The provisions of article 43E(11) of the Act shall apply

mutatis mutandis to an authorised insurance undertaking, an enrolled

insurance agent and an enrolled insurance broker which has appointed

and registered an ancillary insurance intermediary exempt from

enrolment pursuant to regulation 3.

The following activities shall not amount to insurance

distribution activities or reinsurance distribution activities

(a)

the provision of information on an incidental basis

in the context of another professional activity where

(i)

the provider does not take any additional

steps to assist the potential policyholder or policyholder in

concluding or performing a contract of insurance;

(ii)

the purpose of that activity is not to assist

the potential policyholder or policyholder in concluding or

performing a contract of reinsurance;

(b)

the management of claims of an authorised

insurance undertaking or of an authorised reinsurance

undertaking on a professional basis;

(c)

loss adjusting and expert appraisal of insurance and

reinsurance claims;

(d)

the carrying on of activities which are strictly

limited to effecting introductions either by means of

(i)

the mere provision of data and information

on potential policyholders to insurance intermediaries or

reinsurance intermediaries enrolled under the Act,

authorised insurance undertakings or authorised

reinsurance undertakings; or

INSURANCE DISTRIBUTION

(EXEMPTION)

(ii)

the mere provision of information about

insurance

or

reinsurance

products,

insurance

intermediaries or reinsurance intermediaries enrolled

under the Act, authorised insurance undertakings or

authorised reinsurance undertakings, to potential

policyholders,

where the provider of such information does not take any

additional steps to assist in the conclusion of a contract of

insurance or a contract of reinsurance

Provided that, the activities referred to in

paragraph (d) are carried out in accordance with the conditions

set out in Insurance Distribution Rules made for this purpose.

(1)

For the better carrying out of these regulations,

the competent authority may, from time to time, issue Insurance

Distribution Rules and Conduct of Business Rules.

(2) Such Insurance Distribution Rules and Conduct of

Business Rules may contain such incidental, supplementary and

consequential provisions as appear to the competent authority to be

expedient for the purposes of these regulations.