Insurance Act, 1989

JurisdictionIreland


Number 3 of 1989


INSURANCE ACT, 1989


ARRANGEMENT OF SECTIONS

PART I

Preliminary and General

Section

1.

Short title, collective citation, construction and commencement.

2.

Interpretation.

3.

Offences and penalties.

4.

Service of documents.

5.

Power to make regulations.

6.

Orders.

7.

Fees.

8.

Laying of orders and regulations before Houses of Oireachtas.

9.

Repeals.

10.

Expenses.

PART II

Supervision of Insurers

11.

Submission and publication of returns and documents by insurers.

12.

Regulations regarding reserves, liabilities, valuation of assets, reinsurance cessions and solvency certificates.

13.

Keeping of records by undertakings.

14.

Separation of assets and liabilities attributable to life assurance business.

15.

Application of assets of undertaking transacting life assurance business.

16.

General powers to require information.

17.

Investigations.

18.

Powers to intervene in cases of doubtful solvency.

19.

Prior notice and display of policy terms and premium rates.

20.

Qualifications of directors, managers and authorised agent.

21.

Revocation of authorisation where no business is being done.

22.

Reinsurance.

23.

Minimum share capital requirements.

24.

Power to attach conditions to authorisations.

25.

Industrial assurance business.

26.

Insurance of unnamed persons.

27.

Application of Act of 1978.

28.

Amendment of Friendly Societies Act, 1896.

29.

Application of exemptions in the 1976 and 1984 Regulations on life and non-life insurance.

30.

Winding up of insurers.

31.

Insurance Compensation Fund.

32.

Preferential payments of debts out of technical reserves of undertaking.

33.

Administrator's power of sale.

34.

Appointment, duty and qualifications of actuary.

35.

Duties of auditor.

36.

Powers of Court with respect to amalgamation or transfer of insurance business.

PART III

Payment of Commissions by Insurers

37.

Power of Minister to require reduction in commissions.

38.

Prohibition of certain commission payments.

39.

Revocation of authorisation.

40.

Restriction on advertising.

41.

Offences committed by intermediaries.

42.

Certain policies of life assurance voidable.

43.

Furnishing of information to the Minister.

PART IV

Regulation of Insurance Intermediaries

44.

Broker’s qualifications.

45.

Intermediaries' indemnity insurance.

46.

Insurance intermediaries appointment and commission payments.

47.

Insurance bond required by intermediary.

48.

Keeping of separate bank accounts.

49.

Insurance agents' qualifications.

50.

Register of insurance intermediaries.

51.

Provisions regarding scope of agency.

52.

Acceptance by intermediary of insurance proposals.

53.

Treatment of premiums paid to intermediaries.

54.

Restriction on intermediaries convicted of offence.

55.

Disqualification of certain persons from acting as intermediaries.

56.

Codes of conduct.

57.

Scope of Part IV.

PART V

Miscellaneous

58.

Appeal against suspension or revocation of authorisation.

59.

Appointment of authorised officers.

60.

Powers of authorised officers.

61.

Codes of conduct on duty of disclosure and warranties.

FIRST SCHEDULE

Enactments Repealed

SECOND SCHEDULE

Increase of Penalties


Acts Referred to

Assurance Companies Act, 1909

1909, c. 49

Central Bank Act, 1971

1971, No. 24

Companies Act, 1963

1963, No. 33

Credit Union Act, 1966

1966, No. 19

Friendly Societies Act, 1896

1896, c. 25

Insurance Act, 1936

1936, No. 45

Insurance (Amendment) Act, 1938

1938, No. 31

Insurance Act, 1964

1964, No. 18

Insurance (Amendment) Act, 1978

1978, No. 30

Insurance (No. 2) Act, 1983

1983, No. 29

Life Assurance Act, 1774

14 Geo. 3, c. 48

Life Insurance (Ireland) Act, 1866

29 & 30 Vict. c. 42

Public Offices Fees Act, 1879

1879, c. 58

Transport (Tour Operators and Travel Agents) Act, 1982

1982, No. 3


Number 3 of 1989


INSURANCE ACT, 1989


AN ACT TO AMEND AND EXTEND THE INSURANCE ACTS, 1909 TO 1985. [15th March, 1989]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

PART I

Preliminary and General

Short title, collective citation, construction and commencement.

1.—(1) This Act may be cited as the Insurance Act, 1989.

(2) The Insurance Acts, 1909 to 1985, and this Act may be cited together as the Insurance Acts, 1909 to 1989, and shall be construed together as one Act.

(3) This Act shall come into operation on such day or days as may be appointed by order or orders of the Minister, either generally or with reference to a particular purpose or provision, and different days may be so appointed for different purposes and different provisions of this Act.

Interpretation.

2.—(1) In this Act, except where the context otherwise requires—

“authorisation” means an authorisation issued by the Minister under the Regulations of 1976 or the Regulations of 1984 to carry on a specified class or description of insurance business;

“authorised agent” in relation to an undertaking means the person designated as authorised agent of the undertaking under the Regulations of 1976 or the Regulations of 1984;

“business” means assurance or insurance business;

“client” means a person who requests an insurance intermediary to arrange insurance on his behalf;

“commission payment” has the meaning given to it by subsection (3);

“the Companies Acts” means the Companies Act, 1963 , and any enactment which is to be construed together with it;

“contravention” in relation to any provision of this Act includes failure to comply with any requirement imposed by or under that provision and “contravene” shall be construed accordingly;

“Council Directive” means a Directive of the Council of the European Communities;

“the Court” means the High Court;

“insurance” includes assurance;

“the Insurance Acts” means the Insurance Acts, 1909 to 1989, and regulations relating to insurance business made under the European Communities Act, 1972;

“insurance agent” means any person who holds an appointment in writing from an insurer enabling him to place insurance business with that insurer, but does not include an insurance broker or an employee of an insurer when the employee is acting for that insurer;

“insurance broker” means a person who, acting with the freedom of choice described in section 44 (1) (b), brings together, with a view to the insurance of risks, persons seeking insurance and insurance undertakings, and carries out work preparatory to the conclusion of contracts of insurance, but does not include an insurance agent or an employee of an insurer when the employee is acting for that insurer;

“insurance intermediary” or “intermediary” means an insurance agent or an insurance broker;

“insurer” means the holder of an authorisation under the Regulations of 1976 or the Regulations of 1984;

“life assurance” means assurance of a class specified in Schedule 1 to the Regulations of 1984;

“non-life insurance” means insurance of a class specified in Schedule 1 to the Regulations of 1976;

“the Minister” means the Minister for Industry and Commerce;

“prescribe” means prescribe by regulations made under this Act;

“regulations” means regulations made under the Insurance Acts, 1909 to 1989, and regulations relating to insurance business made under the European Communities Act, 1972;

“the Regulations of 1976” means the European Communities (Non-Life Insurance) Regulations, 1976 ( S.I. No. 115 of 1976 );

“the Regulations of 1984” means the European Communities (Life Assurance) Regulations, 1984 ( S.I. No. 57 of 1984 );

“solvency certificate” means a certificate issued by the Minister to an undertaking attesting its compliance with the solvency requirements specified in the Regulations of 1976 or the Regulations of 1984 as appropriate;

“supervisory authority” means, in respect of any territory, the authority charged by law with the duty of supervising the activities of insurance undertakings in that territory;

“undertaking” means the holder of an authorisation.

(2) References in the Insurance Acts, 1909 to 1989, to “assurance company” or “insurance company” shall be construed as references to the holder of an authorisation, and references to “licence” shall be construed as references to “authorisation”.

(3) (a) A commission payment, for the purpose of this Act, is a payment, including a commission or other remuneration, reward or benefit in kind, paid or payable by or on behalf of the holder of an authorisation to an insurance intermediary in connection with the insurance business of the holder and includes the time allowed by the holder to the intermediary for the payment by the intermediary to the holder of premiums received by the intermediary for the holder for contracts of insurance entered into by the holder.

(b) The value of the time allowed by an intermediary for the payment of a commission is to be taken into account in the calculation of the value of the time so allowed by the holder.

(4) In this Act a reference to a Part, section or Schedule is to a Part or section of this Act or to a Schedule to this Act, unless it is indicated that reference to some other enactment is intended.

(5) In this Act a reference to a subsection or paragraph is to the subsection or paragraph of...

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