Insurance Companies (Accounts and Statements) Regulations 1983
| Jurisdiction | UK Non-devolved |
| Citation | SI 1983/1811 |
| Year | 1983 |
1983 No. 1811
INSURANCE
INDUSTRIAL ASSURANCE
The Insurance Companies (Accounts and Statements) Regulations 19837thDecember 1983
9thDecember 1983
15thMarch 1984
ARRANGEMENT OF REGULATIONS
Regulation
1. Citation and commencement.
2. Application.
3. Interpretation.
4. Value of assets and amount of liabilities.
5. Contents and form of accounts.
6. Balance sheet.
7. Profit and loss account.
8. Revenue account.
9. Additional information on general business (accounting classes).
10. Risk groups for general business.
11. Additional information on general business (risk groups).
12. Provisions supplemental to Regulation 11.
13. Currencies other than sterling.
14. Additional information on general business (co-insurance).
15. Additional information on long term business.
16. Forms prepared pursuant to Regulations 9 and 11 to 15.
17. Additional information on general business ceded under reinsurance treaties.
18. Additional information on general business ceded under facultative reinsurance contracts.
19. Information on major general business reinsurance cedants.
20. Provisions supplemental to Regulations 17, 18 and 19.
21. Additional information on general business accepted under reinsurance treaties (proportional and non-proportional).
22. Additional information on general business accepted under reinsurance treaties (proportional).
23. Prescribed class of general business.
24. Periodic actuarial investigation.
25. Signature of documents.
26. Certificates.
27. Audit and auditors' report.
28. Qualifications of actuary.
29. Information on appointed actuary.
30. Qualifications of auditor.
31. Transitional provisions.
32. Revocations.
Schedule 1, Balance sheet and profit and loss account (Forms 9 to 16).
Schedule 2, General business: revenue account and additional information (Forms 20 to 37).
Schedule 3, Long term business: revenue account and additional information (Forms 40 to 51).
Schedule 4, Abstract of valuation report prepared by the appointed actuary (Forms 55 to 61).
Schedule 5, Statement of long term business by the appointed actuary (Forms 65 to 78).
Schedule 6, Certificates by directors, actuary and auditors.
Schedule 7, Regulations revoked.
The Secretary of State, in exercise of his powers under sections 17, 18, 20, 21, 96(1) and 97 of the Insurance Companies Act 1982(a) and of all other powers enabling him in that behalf, hereby makes the following Regulations:—
Citation and commencement
1. These Regulations may be cited as the Insurance Companies (Accounts and Statements) Regulations 1983 and shall come into operation on 15th March 1984.
Application
2.—(1) These Regulations apply to the accounts and statements (as hereinafter specified) of every company to which Part II of the Act applies in respect of any financial year of the company ending on or after 15th March 1984.
(2) These Regulations do not apply to a Community company (other than a United Kingdom company or a pure reinsurer) or to a Community deposit company, in relation to long term business or general business carried on by it outside the United Kingdom.
Interpretation
3.—(1) In these Regulations, unless the context otherwise requires,—
"accounting class" means an accounting class set out in the following table—
(a) 1982 c.50.
Corresponding classes
Accounting class of general business
1 Accident and health 1, 2
2 Motor vehicle (including damage
to other land vehicles), damage
and liability 3, 10
3 Aircraft, damage and liability 5, 11
4 Ships, damage and liability 6, 12
5 Goods in transit 7
6 Property damage 4, 8, 9
7 General liability 13
8 Pecuniary loss 14, 15, 16, 17
9 Non-proportional treaty reinsurance —
10 Proportional treaty reinsurance —
"the Act" means the Insurance Companies Act 1982;
"additional amount for unexpired risks" means the amount set aside by a company at the end of its financial year, in addition to any unearned premiums, which is considered necessary to meet the cost of claims and expenses of settlement arising from risks to be borne by the company after the end of the financial year under contracts of insurance entered into before the end of that year;
"admissible asset" means an asset which is not required by Regulation 38(3) of the Insurance Companies Regulations to be left out of account for the purposes specified in Regulation 38(1) of those Regulations;
"appointed actuary" means the person appointed as actuary to a company under section 19 of the Act or under any corresponding enactment previously in force;
"authorised unit trust scheme" means a scheme authorised under the Prevention of Fraud (Investments) Act 1958(a) or the Prevention of Fraud (Investments) Act (Northern Ireland) 1940(b);
"charges for management" means amounts chargeable in respect of the management of an internal linked fund in accordance with the conditions of those contracts of insurance under which property linked benefits are linked to the value of the fund or units of the fund;
"claim" means a claim against a company under a contract of insurance;
"claims equalisation" means the amount set aside by a company as at the end of its financial year for the purpose of being used to prevent exceptional fluctuations in the amounts charged to revenue in subsequent financial years in respect of claims arising due to the occurrence of events of an exceptional nature, that is to say, events not normally occurring every year;
"claims outstanding" means, unless otherwise specified, the amount set aside by a company as at the beginning or end of its financial year as being an amount likely to be sufficient to meet—
(a) claims in respect of incidents occurring—
(i) in the case of an amount set aside as at the beginning of the financial year, before the beginning of that year, and
(a) 1958 c.45.
(b) 1940 c.9 (N.I.).
(ii) in the case of an amount set aside as at the end of the financial year, before the end of that year,
being claims which have not been treated as claims paid and including claims relating to business accounted for over a period longer than a financial year, claims the amounts of which have not been determined and claims arising out of incidents that have not been notified to the company, and
(b) expenses (such as, for example, legal, medical, surveying or engineering costs) which have been incurred but not yet recorded as paid or which are likely to be incurred by the company, whether through the employment of its own staff or otherwise, and are directly attributable to the settlement of individual claims which relate to incidents occurring before the beginning or the end of the financial year (as the case may be), whether or not the individual claims in question are those mentioned above,
less any recoverable amounts;
"claims paid", in relation to general business, means unless otherwise specified the amount that is recorded in a company's books as at the end of its financial year as paid by it (whether or not payment has been effected in that year) in full or partial settlement of—
(a) claims, including claims relating to business accounted for over a period longer than a financial year, and
(b) expenses (such as, for example, legal, medical, surveying or engineering costs) which are incurred by the company, whether through the employment of its own staff or otherwise, and are directly attributable to the settlement of individual claims, whether or not the individual claims in question are those mentioned above,
less any recoverable amounts;
"claims payable", in relation to long term business, means the amount due to be paid by a company during a financial year in respect of claims whether or not paid during that year;
"commission payable" means, in relation to a financial year of a company, the amounts, whether or not paid during that year, which are recorded during that year as due to intermediaries and cedants in respect of the inception, amendment or renewal of contracts of insurance;
"Community company" means a company whose head office is in a member State;
"Community deposit company" means a company (other than a pure reinsurer) whose head office is not in a member State and which has made a deposit in a member State other than the United Kingdom in accordance with section 9(2)(b) of the Act;
"company" means an insurance company;
"contract of insurance" includes a contract of reinsurance;
"direct and facultative" refers to direct insurance business and inwards facultative reinsurance business;
"expenses for settling claims" means that part of a company's expenses which has been incurred in respect of general business in the settlement of claims other than expenditure which falls to be included under claims paid;
"expenses for settling claims outstanding" means the amount set aside by a company at the end of its financial year as being an amount likely to be sufficient to meet that part of the company's expenses which is likely to be incurred in respect of general business in the settlement of claims in respect of incidents occurring before the end of that year other than expenses which fall to be included under claims outstanding;
"external company" means a company, other than a company to which section 9(2) of the Act applies, whose head office is not in a member State;
"fund" in relation to general business recorded as commencing in any financial year of a company but accounted for over a period longer than that financial year, means, during such period, an amount not less than the aggregate amount of the premiums receivable during that period (net of reinsurance premiums payable) reduced by the aggregate amount of the claims paid (net of reinsurance recoveries), expenses for settling claims, commission (net of reinsurance commission receivable) and premium taxes in respect of that business and any management expenses attributable to the management of the fund and, after the end of such period, means such amount as is considered necessary to discharge the remaining obligations (net of...
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