A LAW to amend further the Insurance Business (Jersey) Law 1996.

THE STATES, subject to the sanction of Her Most Excellent Majesty in Council, have adopted the following Law –

“(2A)  The carrying on of insurance business in or from within the Island includes obtaining or seeking to obtain such business from a person incorporated, registered or resident in the Island by means of a contract or other arrangement with another person where -

(a)     the sole or principal purpose of such contract or other arrangement is the obtaining of or seeking to obtain such business; and

(b)     that other person gives effect to the contract or other arrangement in or from within the Island.”.

“(aa)  having regard to the information before the Commission as to the -

(i)      integrity, competence, financial standing, structure and organisation of the applicant;

(ii)      persons employed by or associated with the applicant for the purposes of his business or any shareholder controller of the business; and

(iii)     description of the business which the applicant proposes to carry on,

the Commission is not satisfied that the applicant is a fit and proper person to be a permit holder;”; and

“(12)  A person who fails to comply with a condition imposed under this Article shall be guilty of an offence and liable to imprisonment for a term not exceeding two years or a fine, or both.

(13)    An offence under paragraph (12) may be charged by reference to a day or any longer period of time and a person may be convicted of a second or subsequent offence under that paragraph by reference to any period of time following the preceding conviction for such an offence.”.

“(3)    A permit holder who fails to comply with any provision of this Article shall be guilty of an offence and liable to a fine not exceeding level 4 on the standard scale.[6]

(4)     An offence under paragraph (3) may be charged by reference to a day or any longer period of time and a permit holder may be convicted of a second or subsequent offence under that paragraph by reference to any period of time following the preceding conviction for such an offence.”.

“(10)  A permit holder who -

(a)     fails to give notice in accordance with paragraph (1); or

(b)     fails to comply with the requirements of a notice under paragraph (5),

shall be guilty of an offence.

(11)    A person who -

(a)     becomes a director, chief executive or shareholder controller; or

(b)     continues to be a director, chief executive or shareholder controller,

in relation to a permit holder, following service on him of a notice of objection under paragraph (6) or (7) in that connection, shall be guilty of an offence.

(12)    A person guilty of an offence under paragraph (10) or (11) shall be liable to imprisonment for a term not exceeding two years or a fine, or both.

(13)    An offence under paragraph (10) or paragraph (11)(b) may be charged by reference to a day or any longer period of time and a permit holder may be convicted of a second or subsequent offence under either paragraph by reference to any period of time following the preceding conviction for such an offence.”.

“(3A) A person appointed under paragraph (1) shall have such duties and responsibilities as may be prescribed and where such person contravenes or fails to comply with any Order made under this paragraph, the Commission may require the permit holder to terminate his appointment within such period as the Commission may specify.”;

“(4A) The Commission may require the permit holder to cause the person appointed under paragraph (1) to take such action as the Commission may specify within such period as the Commission may specify.”; and

“(5)    If a permit holder fails to comply with a requirement specified in paragraph (3A), (4)(b) or (4A) within the relevant time period he shall not effect any contract which constitutes long term business until he has complied with it.”.

“(7)    For the purposes of this Article an advertisement for insurance issued outside the Island shall be treated as issued in the Island if it is directed to persons in the Island or is made available to them otherwise than in a publication, broadcast or other means of communication that is principally directed or made available to persons outside the Island.”.

“37A      Insurance contracts effected in contravention of Article 4

(1)     Subject to paragraph (3), a contract of insurance entered into by a person in the course of carrying on insurance business in contravention of Article 4 shall be unenforceable against the other party and that party shall be entitled to recover any money or other property paid or transferred by him under the contract, together with compensation for the loss sustained by him as a result of having parted with it.

(2)     The compensation recoverable under paragraph (1) shall be such as the parties may agree or as a court may, on the application of either party, determine.

(3)     A court may allow a contract to which paragraph (1) applies to be enforced or money or property paid or transferred under it to be retained if it is satisfied -

(a)     that the person carrying on insurance business reasonably believed that his entering into the contract did not constitute a contravention of Article 4; and

(b)     that it is just and equitable for the contract to be enforced or, as the case may be, for the money or property paid or transferred under it to be retained.

(4)     Where a person elects not to perform a contract which by virtue of this Article is unenforceable against him or by virtue of this Article recovers money or property paid or transferred under a contract, he shall not be entitled to any benefits under the contract and shall repay any money and return any other property received by him under the contract.

(5)     Where any property transferred under a contract to which this Article applies has passed to a third party the references to that property in this Article shall be construed as references to its value at the time of its transfer under the contract.

(6)     A contravention of Article 4 shall not make a contract of insurance illegal or invalid to any greater extent than is provided in this Article; and a contravention of that Article in respect of a contract of insurance shall not affect the validity of any re-insurance contract entered into in respect of that contract.”.