Insurance Companies (Legal Expenses Insurance) Regulations 1990
| Jurisdiction | UK Non-devolved |
| Citation | SI 1990/1159 |
| Year | 1990 |
1990 No. 1159
INSURANCE
The Insurance Companies (Legal Expenses Insurance) Regulations 1990
Made 29th May 1990
Laid before Parliament 31th May 1990
Coming into force 1st July 1990
Whereas the Secretary of State is a Minister designated1for the purposes of section 2(2) of the European Communities Act 19722in relation to the authorisation of the carrying on of insurance business and the regulation of such business and its conduct:
Now, therefore, the Secretary of State, in exercise of the powers conferred upon him by section 2(2) of that Act 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 (Legal Expenses Insurance) Regulations 1990 and shallcome into force on 1st July 1990.
Interpretation
2.—(1) In these Regulations —
(a)
(a) “legal expenses insurance business” means insurance business (other than re-insurance business) within general business class 17 in Part I of Schedule 2 to the Insurance Companies Act 19823, and “legal expenses insurance contract” and “legal expenses cover” shall be construed accordingly; and
(b)
(b) “lawyer” means a person entitled to pursue his professional activities under one of the denominations laid down by Council Directive 77/249/EEC4.
(2) Expressions used in these Regulations have the same meaning as in the Insurance Companies Act 1982.
Application
3.—(1) Regulations 4 to 9 below apply to all legal expenses insurance business, subject to the following exceptions.
(2) Those regulations do not apply to legal expenses insurance contracts concerning disputes or risks arising out of, or in connection with, the use of sea-going vessels.
(3) Those regulations do not apply to anything done by a person providing civil liability cover for the purpose ofdefending or representing the insured in an inquiry or proceedings which is at the same time done in the insurer’s own interest under such cover.
(4) Those regulations do not apply to legal expenses cover provided by an assistance insurer where that cover is provided under a contract of which the principal object is the provision of assistance for personswho fall into difficulties while travelling, while away from home or while away from their permanent residence and where the costsare incurred outside the state in which the insured normally resides.
In such a case the policy must clearly state that the cover in question is limited to the circumstances referred to in this paragraph and is ancillary to that assistance.
Requirement of separate policy or section
4. Legal expenses cover shall be the subject of either —
(a) a policy relating to that cover only, or
(b) where that cover is provided under a policy relating to one or more other classes of general insurance business, a separate section of the policy relating to that cover only.
Where the cover is included in a separate section, that section shall specify the nature of the legal expenses cover.
Arrangements for avoiding conflicts of interests
5.—(1) An insurance company carrying on legal expenses insurance business shall adopt at least one ofthe following arrangements.
(2) The company shall ensure that no member of staff who is concerned with the management of claims under legal expenses insurance contracts, or with legal advice in respect of such claims, carries on at the same time any similar activity—
(a)
(a) in relation to another class of general insurance business carried on by the company, or
(b)
(b) in any other insurance company, having financial, commercial or administrative links with the first company, which carries on one or more other classes of general insurance business.
(3) The company shall entrust the management of claims under legal expenses insurance contracts to an undertaking having separate legal personality, which shall be mentioned in the separate...
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