1964_INSURANCE_COMPANIES_ORDINANCE — Page 47

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CAP. 41]

Insurance Companies

[1988 Ed.

2. An authorization under section 8, in describing the classes or parts of classes to which it relates, may do so by reference to the appropriate groups specified in Part 4 of this Schedule.

3. If an insurer authorized to carry on long term business effects and carries out a contract of insurance which combines long term business and additional business of the nature specified in Part 3 of this Schedule in relation to class 1 or 2, the additional business shall as respects that contract be regarded as long term business and not as general business.

4. Subject to paragraph 5, an insurer authorized to carry on a class of general business may, in effecting and carrying out a contract of insurance against a risk ("the principal risk") within that class, include in the contract provision whereby the insurer incidentally assumes liability against a risk ("the ancillary risk") that is not within that class.

5. Paragraph 4 shall apply only if

(a) the assumption of liability against the ancillary risk is included in the same contract as that providing for the assumption of liability against the principal risk; and

(b) the ancillary risk is related to the principal risk and to the object, state, condition or person that is insured against the principal risk; and

(c) the ancillary risk is not of the kind to which class 14 or 15 relates and is otherwise such that insurance against it constitutes general business.

6. In classes 6 and 12 "vessels" includes hovercraft.

PART 2

CLASSES OF LONG TERM BUSINESS

Class Description Nature of Business

A Life and annuity Effecting and carrying out contracts of insurance on human life or contracts to pay annuities on human life, but excluding (in each case) contracts within class C below.

B Marriage and birth Effecting and carrying out contracts of insurance to provide a sum on marriage or on the birth of a child, being contracts expressed to be in effect for a period of more than 1 year.

C Linked long term Effecting and carrying out contracts of insurance on human life or contracts to pay annuities on human life where the benefits are wholly or partly to be determined by reference to the value of, or the income from, property of any description (whether or not specified in the contracts) or by reference to fluctuations in, or in an index of, the value of property of any description (whether or not so specified).

D Permanent health Effecting and carrying out contracts of insurance providing specified benefits against risks of persons becoming incapacitated in consequence of sustaining injury as a result of an accident or of an accident of a specified class or of sickness or infirmity, being contracts that

(a) are expressed to be in effect for a period of not less than 5 years, or until the normal retirement age for the persons concerned, or without limit of time, and

(b) either are not expressed to be terminable by the insurer, or are expressed to be so terminable only in special circumstances mentioned in the contract.

E Tontines Effecting and carrying out tontines.

F Capital redemption Effecting and carrying out capital redemption contracts.

Class Description

1 Accident

PART 3

CLASSES OF GENERAL BUSINESS

Nature of Business

Effecting and carrying out contracts of insurance providing fixed pecuniary benefits or benefits in the nature of indemnity (or a combination of both) against risks of the persons insured-