Insurance Brokers (Registration) Act 1977
| Year | 1977 |
Insurance Brokers(Registration) Act 1977
1977 CHAPTER 46
An Act to provide for the registration of insurance brokers and for the regulation of their professional standards; and for purposes connected therewith.
[29th July 1977]
Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
The Insurance Brokers Registration Council
1 Establishment of Insurance Brokers Registration Council.
(1) There shall be established a body to be called the Insurance Brokers Registration Council (hereinafter referred to as ‘the Council’) which shall be a body corporate with perpetual succession and a common seal and shall have the general function of carrying out the powers and duties conferred on them by this Act.
(2) The Council shall be constituted in accordance with the Schedule to this Act and the supplementary provisions contained in that Schedule shall have effect with respect to the Council.
Registration and training of insurance brokers
2 The insurance brokers register.
2. The Council shall establish and maintain a register of insurance brokers (hereinafter referred to as ‘the register’) containing the names, addresses and qualifications, and such other particulars as may be prescribed, of all persons who are entitled under the provisions of this Act to be registered therein and apply in the prescribed manner to be so registered.
3 Qualifications for registration.
(1) Subject to subsection (2) below and to section 16 of this Act, a person shall be entitled to be registered in the register if he satisfies the Council—
(a ) that he holds a qualification approved by the Council under section 6 of this Act, being a qualification granted to him after receiving instruction from an institution so approved; or
(b ) that he holds a qualification recognised by the Council for the purposes of this paragraph, being a qualification granted outside the United Kingdom; or
(c ) that he has carried on business as an insurance broker, or as a whole-time agent acting for two or more insurance companies in relation to insurance business, for a period of not less than five years; or
(d ) that he holds a qualification recognised by the Council for the purposes of this paragraph and has carried on business as mentioned in paragraph (c ) above for a period of not less than three years; or
(e ) that he has been employed by a person carrying on business as mentioned in paragraph (c ) above, or by an insurance company, for a period of not less than five years; or
(f ) that he holds a qualification recognised by the Council for the purposes of this paragraph and has been employed by a person carrying on business as mentioned in paragraph (c ) above, or by an insurance company, for a period of not less than three years; or
(g ) that he has knowledge and practical experience of insurance business which is comparable to that of a person who has carried on business as an insurance broker for a period of five years; or
(h ) that he holds a qualification recognised by the Council for the purposes of this paragraph and has knowledge and practical experience of insurance business which is comparable to that of a person who has carried on business as an insurance broker for a period of three years.
(2) A person shall not be entitled to be registered in the register by virtue of subsection (1) above unless he also satisfies the Council—
(a ) as to his character and suitability to be a registered insurance broker; and
(b ) in a case falling within paragraph (a ), (b ), (e ) or (f ) of subsection (1) above, that he has had adequate practical experience in the work of an insurance broker; and
(c ) if he is carrying on business as an insurance broker at the time when the application is made, that he is complying with the requirements of rules under section 11(1) of this Act.
(3) Subject to section 16 of this Act, a person shall be entitled to be registered in the register if he satisfies the Council that he or a partnership of which he is a member is accepted as a Lloyd's broker by the Committee of Lloyd's.
(4) The Secretary of State may, after consulting the Council, by order provide that any of the paragraphs in subsection (1) or (2) above shall be omitted or shall have effect subject to such amendments as may be specified in the order.
4 List of bodies corporate carrying on business as insurance brokers.
(1) The Council shall establish and maintain a list of bodies corporate carrying on business as insurance brokers (hereinafter referred to as ‘the list’) containing the names, principal places of business and such other particulars as may be prescribed of all bodies corporate which are entitled under this section to be enrolled therein and apply in the prescribed manner to be so enrolled.
(2) Subject to subsection (3) below and to section 16 of this Act, a body corporate shall be entitled to be enrolled in the list if it satisfies the Council—
(a ) that a majority of its directors are registered insurance brokers; or
(b ) in the case of a body corporate having only one director, that he is a registered insurance broker; or
(c ) in the case of a body corporate having only two directors, that one of them is a registered insurance broker and that the business is carried on under the management of that director.
(3) A body corporate shall not be entitled to be enrolled in the list by virtue of subsection (1) above unless it also satisfies the Council that it is complying with the requirements of rules under section 11(1) of this Act.
(4) Subject to section 16 of this Act, a body corporate shall be entitled to be enrolled in the list if it satisfies the Council that it is accepted as a Lloyd's broker by the Committee of Lloyd's.
5 Appeals against refusal to register or enrol.
(1) Before refusing an application for registration under section 3 of this Act or an application for enrolment under section 4 of this Act, the Council shall give the person by whom or the body corporate by which the application was made an opportunity of appearing before and being heard by a committee of the Council.
(2) Where the Council refuse any such application, the Council shall, if so required by the person by whom or the body corporate by which the application was made within seven days from notification of the decision, serve on that person or body a statement of the reasons therefor.
(3) A person or body corporate whose application is so refused may within twenty-eight days from—
(a ) notification of the decision, or
(b ) if a statement of reasons has been required under subsection (2) above, service of the statement,
appeal against the refusal to the Court.
(4) The Council may appear as respondent on any such appeal and for the purpose of enabling directions to be given as to the costs of any such appeal the Council shall be deemed to be a party thereto, whether they appear on the hearing of the appeal or not.
(5) On the hearing of any such appeal the Court may make such order as it thinks fit and its order shall be final.
6 Approval of educational institutions and qualifications.
(1) The Council may approve for the purposes of this Act any institution (hereinafter referred to as ‘an approved educational institution’) where the instruction given to persons being educated as insurance brokers appears to the Council to be such as to secure to them adequate knowledge and skill for the practice of their profession.
(2) The Council may approve for the purposes of this Act any qualification (hereinafter referred to as ‘an approved qualification’) which appears to the Council to be granted to candidates who reach such a standard of proficiency at a qualifying examination as to secure to them adequate knowledge and skill for the practice of their profession.
(3) Where the Council have refused to approve an institution or qualification under this section as suitable for any purpose, the Secretary of State, on representations being made to him within one month of the refusal, may, if he thinks fit, after considering the representations and after consulting the Council, order the Council to approve the institution or qualification as suitable for that purpose.
(4) The Council shall publish before the day appointed for the coming into operation of section 3(1)(a ) of this Act, and from time to time thereafter, a list of approved educational institutions and approved qualifications.
7 Supervision of educational institutions and qualifying examinations.
(1) It shall be the duty of the Council to keep themselves informed of the nature of the instruction given by any approved educational institution to persons being educated as insurance brokers and of the examinations on the results of which approved qualifications are granted.
(2) For the purposes of their duty under subsection (1) above the Council may appoint persons to visit approved educational institutions and to attend at the examinations held by the bodies which grant approved qualifications.
(3) It shall be the duty of visitors appointed under subsection (2) above to report to the Council as to the sufficiency of the...
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