Insurance Business
(General Provisions) (Jersey) Order 1996
1 Long term and general business exemptions
(1) For
the purposes of Article 5(5)(b) of the Law, there is hereby prescribed
general business of class 14, 15, 16, 17 or 18.
(2) For
the purposes of Article 5(5)(f) of the Law, there is hereby prescribed any
company incorporated in Jersey by or on behalf of an individual carrying on
class 1 long term business solely for that individual and the
individual’s dependants.
2 General business (benefit in kind) exemptions
(1) For
the purposes of Article 5(5)(c) of the Law, there is hereby prescribed any
contract of insurance which –
(a) is a
contract under which the benefits provided by the insurer are exclusively or
primarily benefits in kind in the event of accident to or breakdown of a
vehicle; and
(b) contains
the terms specified in paragraph (2).
(2) The
terms referred to in paragraph (1) are –
(a) that,
subject to such restrictions as may be set out in the contract, the assistance
shall normally be available on demand;
(b) that
the assistance shall normally be provided by the insurer’s servants or
exceptionally by garages acting as the insurer’s agents or appointed by
the insurer;
(c) that
the assistance may take any one or more of the following forms –
(i) repairs to the
relevant vehicle at the roadside,
(ii) removal
of the relevant vehicle to another place,
(iii) conveyance
of the relevant vehicle’s occupants to another place,
(iv) delivery
of parts, fuel, oil, water or keys to the relevant vehicle,
(v) reimbursement of the
policy holder for all or part of any sums paid by the policy holder in respect
of the assistance either because the policy holder failed to identify himself
or herself as the policy holder or because the policy holder was unable to get
in touch with the insurer in order to claim the assistance.
(3) In
this Order –
“assistance”
means the benefits to be provided under a contract of the kind prescribed in paragraph (1);
“breakdown”
means an event –
(a) which
causes the driver of the relevant vehicle involuntarily to bring the vehicle to
a halt on a journey because of some malfunction of the vehicle or failure of it
to function; and
(b) after
which the journey cannot reasonably be continued in the relevant vehicle;
“insurer”
means the insurance company providing the assistance;
“Law” means
the Insurance
Business (Jersey) Law 1996;
“policy holder”
means the person entitled to the assistance;
“relevant vehicle”
means the vehicle (including a trailer or caravan) in respect of which the
assistance is required.
3 [2]
5 Conditions applicable to permits
For the purposes of Article 7(8)
of the Law there are prescribed in the Schedule to this Order, the conditions
set out which are applicable to all Category B permits.
6 Circumstances in which auditors or reporting persons are to
communicate to the Commission[3]
(1) In
exceptional circumstances, where it is in the interests of protecting persons
transacting insurance business with a permit holder that the permit holder
should not be informed in advance, the auditor or person appointed to make a
report under Article 10 of the Law, shall report direct to the Commission.
For example (but without limiting the generality of the foregoing) –
(a) where
there has been an occurrence which causes the auditor or reporting person no
longer to have confidence in the integrity of the directors or senior
management, for example, where they believe that a fraud or other
misappropriation has been committed by the directors or senior management of
the permit holder, or they have evidence of the intention of directors or
senior management to commit such fraud or misappropriation;
(b) where
there has been an occurrence which causes the auditor or reporting person no
longer to have confidence in the competence of the directors or senior
management to conduct the business of the permit holder in a prudent manner so
as to protect the interests of policy holders, for example, where they have
discovered that the directors or senior management are acting in an
irresponsible or reckless manner with respect to the permit holder’s
affairs or they have evidence of an intention so to act;
(c) where
the auditor or reporting person has reasonable cause to believe that there has
been or is likely to be an occurrence of material significance for the exercise
in relation to such a permit holder of the Commission’s powers or
functions under the Law.[4]
(2) A
direct report shall also be made where the permit holder will not itself inform
the Commission of a matter, having been advised to do so by the auditor or
reporting person or where it has not done so within the period of time
specified, or where there is not adequate evidence that the permit holder has
properly reported the matter in question.[5]
7 Duties
and responsibilities of actuaries[6]
(1) An
actuary appointed by a permit holder under Article 25(1) of the Law
shall –
(a) prepare
a valuation of the liabilities relating to the permit holder’s long term
business every year or more frequently if he or she considers it necessary in order
properly to monitor the permit holder’s margin of solvency; and
(b) endorse
in writing the valuation basis and the calculation of the permit holder’s
solvency position in a statement provided as part of the annual financial
statements required under Article 16 of the Law.
(2) A
valuation required by this Article shall be in accordance with such rules as
may be in force and approved from time to time either by the Institute of Actuaries
in England and Wales or the Faculty of Actuaries in Scotland.
8 Citation
This Order may be cited
as the Insurance Business (General Provisions) (Jersey) Order 1996.
SCHEDULE[7]
(Article 5)
CONDITIONS APPLICABLE TO
CATEGORY B PERMITS
1 The
permit holder shall be and unless otherwise agreed by the Commission remain
wholly owned by the person in whose name application for the permit is made.
2 There
shall be no change in the directors of the permit holder, as disclosed in the
written application to the Commission, without the prior consent of the
Commission.
3 The
permit holder shall not have any auditor holding office for the purposes of the
Law who has not been approved by the Commission.
4 The
permit holder shall not write risks or introduce new products, other than those
set out in the application, without the prior consent of the Commission.
5 The
permit holder shall furnish to the Commission at 6 monthly intervals such
information relating to its business as may be determined by the Commission.
6 The
permit holder shall furnish to the Commission at 6-monthly intervals financial
statements (including a balance sheet and profit and loss account in a form to
be determined by the Commission) prepared in accordance with International
Accounting Standards or the Generally Accepted Accounting Practice (GAAP)
of –
(a) the
United Kingdom;
(b) The
United States of America; or
(c) with
the prior approval of the Commission, the country or territory in which the
beneficial owner of the permit holder resides or is incorporated.
7 The
permit holder shall furnish audited accounts to the Commission within 3 months
of the end of the financial period.
8 The
permit holder shall, unless otherwise agreed in writing by the Commission,
restrict the investment of its liquid assets to bank deposits, government
securities, certificates of deposit and approved Eurobonds.
9 There
shall be provided to the Commission by the auditors of the permit holder at 6
monthly intervals formal confirmation that conditions 4 and 8 have been
complied with.
10 The
permit holder, when submitting the annual audited financial statements to the
Commission, shall also provide the Commission with a 5-year rolling business
plan including appropriate explanations of variances and amendments from year
to year.