Finance (Miscellaneous Provisions) Act 2015

Amendments to Part IIIA of Act of 1989

18. (1) Section 43A of the Act of 1989 is amended in subsection (1) by—

(a) deleting the definition of “Annex II”, and

(b) substituting for the definition of “Directive” the following:

“ ‘Directive’ means Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 9 , as amended by Directive 2011/89/EU of the European Parliament and of the Council of 16 November 2011 10 , Directive 2012/23/EU of the European Parliament and of the Council of 12 September 2012 11 , Council Directive 2013/23/EU of 13 May 2013 12 , Directive 2013/58/EU of the European Parliament and of the Council of 11 December 2013 13 and Directive 2014/51/EU of the European Parliament and of the Council of 16 April 2014 14 ;”.

(2) Section 43B of the Act of 1989 is amended by—

(a) substituting “pursuant to the Directive and notwithstanding Articles 4 and 308b(1) of the Directive” for “pursuant to the Directive”,

(b) substituting for paragraph (a) the following:

“(a) before the conclusion of a policy of insurance, the information specified in Article 185(2) (a), (b) and (c), Article 185(3) and Article 185(4) of the Directive, and, additionally, in respect of an insurer holding an authorisation granted pursuant to the Directive, the information specified in Article 185(2) (d) of the Directive,”,

(c) substituting for paragraph (b) the following:

“(b) during the term of a policy of insurance, the information specified in Article 185(5) (a), (b), (c) and (d) of the Directive,”,

and

(d) inserting after paragraph (b) the following:

“(c) where, in connection with an offer for or conclusion of a life insurance contract other than a contract for term insurance, the insurer or insurance intermediary provides figures relating to the amount of potential payments beyond the contractually agreed payments, the insurer or insurance intermediary shall provide the client with a specimen calculation whereby the potential maturity payment is set out applying the basis for the premium calculation using three different rates of interest and the insurer or insurance intermediary shall inform the client in a clear and comprehensible manner that the specimen calculation is only a model of computation based on notional assumptions, and that the client shall not derive any contractual claims from the specimen calculation, and

(d) in respect of contracts of life insurance with profit participation, the insurer or insurance intermediary shall inform the client annually in writing of the status of the claims of the client, incorporating the profit participation and where the insurer or insurance intermediary has provided figures about the potential future development of the profit participation, it shall inform the client of differences between the actual development and the initial data.”.

(3) Regulations made under section 43B of the Act of 1989 and in force immediately before the commencement of this section shall continue in force after such commencement and may be amended or revoked accordingly.

9OJ No. L 335, 17.12.2009, p. 1.

10OJ No. L 326, 8.12.2011, p. 113.

11OJ No. L 249, 14.9.2012, p. 1.

12OJ No. L 158, 10.6.2013, p. 362.

13OJ No. L 341, 18.12.2013, p. 1.

14OJ No. L 153, 22.5.2014, p. 1.