insurance company carrying on insurance business in the UK must be licensed by the Department of Trade and Industry under Sections 2 and 3 of the Insurance Companies Act 1982 ("Act") and the Insurance Companies Ordinance (1981). "Continuing the business of insurance" should extend beyond just risk running off the account to cover the payment of claims.
insurance company carrying on insurance business in the UK must be licensed by the Department of Trade and Industry under Sections 2 and 3 of the Insurance Companies Act 1982 ("Act") and the Insurance Companies Ordinance (1981). "Continuing the business of insurance" should extend beyond just risk running off the account to cover the payment of claims.
...We do not intend to discuss here the requirements of the Ministry of Trade and Industry, but the failure to obtain approval has, historically, have created big problems for the parties of the insurance contract and the contract reosiguranju.Niz cases in 1980, and Bedford Insurance Co. Ltd. v. Instituto deResseguros do Brasil [1984] 1 Lloyd Acknowledgement 210, Stewartv. OrientalFire Marine Insurance Co Ltd [1984] 2 Lloyd Acknowledgement 109, a Phoenix General Insurance Co of Greece SA v. Administratio Asigurarilor de stat [1986] 2 Lloyd Acknowledgement 552, all deal with the problems of illegality. Finally, the Court of Appeals in Phoenix against the Adas decided that the lack of approval by the insurer makes the original insurance and reinsurances illegal and unenforceable, not only unauthorized insurers, but also for the original assured, which might have been completely duped by the insurer. In these circumstances, convinced not recover any claims under the policy.
...Therefore, some of the effects of Phoenix v. Adas are overcome. It seemed that the law is only effective prospectively and will only affect those contracts made after January 12, 1987 see DR insurance against Seguros America Banamex [1993] 1 Lloyd Acknowledgement 120th In a recent case of Bates v. Robert Barrow Limited {Times, 9 February 1995), however, the gatehouse J. decided the Act had retrospective effect, although the decision is still subject to appeal.
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