Insurane Intermediaries (General Business) (Amendment) Regulations 2012 Regulation 1 Statutory Doument No. 0735/2012 Insurane At 2008 INSURANCE INTERMEDIARIES (GENERAL BUSINESS) (AMENDMENT) REGULATIONS 2012 Laid before Tynwald: Coming into Operation: 1 Marh 2013 The Insurane and Pensions Authority, having onsulted the Treasury and suh other organisations and persons as appear to it to be likely to be affeted, makes the following Regulations under setion 50 of the Insurane At 2008. 1 Title These Regulations are the Insurane Intermediaries (General Business) (Amendment) Regulations 2012. 2 Commenement These Regulations ome into operation on 1 Marh 2013. 3 Amendment to the Insurane Intermediaries (General Business) Regulations 1999 The Insurane Intermediaries (General Business) Regulations 1999 1 are amended in aordane with the following provisions. 4 Regulation 9 substituted For regulation 9 substitute «9 Exemptions (1) The following lasses of insurane intermediary are exempted from the requirement to register under the At 1 SD 88/99 Prie 0.80 ( 0.96 inlusive of VAT) SD No. 0735/2012 Page 1
Regulation 5 Insurane Intermediaries (General Business) (Amendment) Regulations 2012 (a) persons ating as an intermediary only in respet of longterm insurane; persons arranging insurane that overs the risk of loss or damage to goods or servies provided by the person if the person s prinipal business is not that of insurane intermediary. () An insurane intermediary who (i) (ii) is registered with and regulated by the Finanial Servies Authority under the terms of the Finanial Servies and Markets At 2000 (of Parliament); and is not ordinarily resident in the Island. (2) A person ating as an intermediary is exempted from regulations 3, 4, 5, 7 and 10 (a) only in respet of long term insurane; and if the person is the holder of a liene issued by the Finanial Supervision Commission under setion 7 of the Finanial Servies At 2008 permitted to ondut regulated ativities falling within Class 2 (investment business) sublasses (3) and (7) of Shedule 1 to the Regulated Ativities Order 2011 2. (3) However, if the person also arries on insurane intermediation business that is not long term insurane, the exemption under paragraph (2) does not apply. (4) In this regulation long term insurane has the meaning assigned by the Regulated Ativities Order 2011 save that for paragraphs (2) and (3) that definition has effet without the exlusions in paragraphs (a) to (d) of the definition.». 5 Regulation 10 amended Renumber the existing text of regulation 10 (audit) as paragraph (1) and after that text insert «(2) A opy of the audited annual aounts of every registered insurane intermediary shall be produed to the Supervisor within 21 days after the date of the meeting at whih the aounts were approved by the board of diretors and in any event within 6 months after the lose of the year to whih they relate. (3) In the ase of persons who are registered insurane intermediaries at 1 Marh 2013, paragraph 2 need not be omplied with until 31 May 2013.» 2 SD 0884/11 Page 2 SD No. 0735/2012
Insurane Intermediaries (General Business) (Amendment) Regulations 2012 Regulation 6 6 Shedule 2 substituted For Shedule 2 substitute the Shedule to these Regulations. MADE 12 Deember 2012 Peter Pell-Hiley P. F. PELL-HILEY Chairman, Insurane and Pensions Authority SD No. 0735/2012 Page 3
Insurane Intermediaries (General Business) (Amendment) Regulations 2012 SCHEDULE SCHEDULE [Regulation 6] SCHEDULE 2 SUBSTITUTED «SCHEDULE 2 [Regulation 6] PROFESSIONAL INDEMNITY INSURANCE (1) The ontrat of professional indemnity insurane must inorporate terms that make provision for the following in respet of the insured. (2) The poliy must indemnify the insured (a) against losses arising from laims made against the insured () (d) (i) (ii) (iii) for breah of duty in onnetion with the business by reason of any negligent at, error or omission; in respet of libel or slander, ommitted in the ondut of the business by the insured, any employee or former employee of the insured, and where the business is or was arried on in partnership, any partner or former partner of the insured; and by reason of any dishonest or fraudulent at or omission ommitted or made in the ondut of the business by any employee (other than a diretor of a body orporate) or former employee (other than a diretor of a body orporate) of the insured; against awards of the Ombudsman made against the insured; against laims in onnetion with the business in respet of legal liability inurred by reason of loss of douments for whih the insured is responsible and osts and expenses inurred in replaing or restoring suh douments; and against legal defene osts. (3) The poliy must at ineption and at eah renewal date provide the following (a) subjet to sub-paragraph, minimum limits of indemnity in respet of eah and every loss and aggregate per year of 1,000,000 in respet of the overs required under paragraph (2)(a) to (), or suh higher amounts as appropriate to the nature and size of the business undertaken by the insured; and legal defene osts in addition to the limits of indemnity referred to in paragraph (3)(a) as appropriate to the nature and size of the business undertaken by the insured. SD No. 0735/2012 Page 5
SCHEDULE Insurane Intermediaries (General Business) (Amendment) Regulations 2012 (4) A maximum poliy exess in respet of any one loss must be no higher than an amount that is apable of being met by the insured. (5) In this Shedule award means any finanial award and the ost of taking any steps that the insured is required by the Ombudsman to take in relation to a omplainant; business means the business of the insured; insured means the registered insurane intermediary or person exempt under regulation 9(2); Ombudsman means the Isle of Man Finanial Servies Ombudsman Sheme and any other equivalent ombudsman servie whose awards, if made against the insured, the insured would be obliged to pay; and poliy means the ontrat of professional indemnity insurane. (6) In the ase of persons who are registered insurane intermediaries, or persons who are exempt under regulation 9(2), at the date of the oming into operation of the Insurane Intermediaries (General Business) (Amendment) Regulations 2012, this Shedule need not be omplied with until the date of the registered insurane intermediary s next renewal of its professional indemnity insurane following 1 Marh 2013.». EXPLANATORY NOTE (This note is not part of the Regulations) These Regulations amend the Insurane Intermediaries (General Business) Regulations 1999. Under these regulations persons liensed by the Finanial Supervision Commission to give advie on and/or arrange deals in relation to long-term insurane ontrats whih ontain an investment element, are exempted from the requirement to register as an insurane intermediary with the Insurane and Pensions Authority to arry on intermediation ativity in relation to long-term insurane ontrats without an investment element (regulation 4). In addition, in respet of registered insurane intermediaries, these regulations introdue submission timeframes for audited aounts (regulation 5) and update the requirements for professional indemnity insurane (regulation 6 and Shedule). Page 6 SD No. 0735/2012