Life Assurance (Insurable Interests) Act 2004

Link to law: https://legislation.gov.im/cms/images/LEGISLATION/PRINCIPAL/2004/2004-0003/LifeAssuranceInsurableInterestsAct2004_2.pdf
Published: 2015-11-01

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Life Assurance (Insurable Interest) Act 2004

c i e
AT 3 of 2004

LIFE ASSURANCE (INSURABLE INTEREST)

ACT 2004

Life Assurance (Insurable Interest) Act 2004 Index


c AT 3 of 2004 Page 3

c i e
LIFE ASSURANCE (INSURABLE INTEREST) ACT 2004

Index Section Page

PART 1 5

1 to 3 [Repealed] ................................................................................................................. 5
PART 2 – ABOLITION OF INSURABLE INTEREST IN LIFE

ASSURANCE CONTRACTS 5

4 Insurable interest: life assurance contracts .................................................................. 5
5 Insurable interest: exception orders ............................................................................. 6
6 Insurable interest: supplementary ................................................................................ 6
PART 3 7

7 to 12 [Repealed] ............................................................................................................... 7
PART 4 7

13 to 19 [Repealed] ................................................................................................................ 7
PART 5 7

20 to 23 [Repealed] ................................................................................................................ 7
PART 6 – SUPPLEMENTARY 7

24 [Repealed] ........................................................................................................................ 7
25 Amendments and repeals .............................................................................................. 7
26 Short title and commencement ..................................................................................... 7
SCHEDULE 1 9

SCHEDULE 2 9

SCHEDULE 3 9

ENDNOTES 11

TABLE OF LEGISLATION HISTORY 11
Index Life Assurance (Insurable Interest) Act 2004


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TABLE OF RENUMBERED PROVISIONS 11
TABLE OF ENDNOTE REFERENCES 11

Life Assurance (Insurable Interest) Act 2004 Section 4


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c i e
LIFE ASSURANCE (INSURABLE INTEREST) ACT 2004
1

Received Royal Assent: 17 March 2004
Passed: 17 March 2004
Commenced: 1 July 2004
AN ACT
to make further provision with respect to the distribution of functions
between the Insurance and Pensions Authority and of the Supervisor; to amend
supervisory powers; to amend the Insurance Act 1986, the Retirement Benefits
Schemes Act 2000 and the Insurance Intermediaries (General Business) Act 1996; and
for connected purposes.
PART 1
2

1 to 3 [Repealed]
3

PART 2 – ABOLITION OF INSURABLE INTEREST IN LIFE

ASSURANCE CONTRACTS

4 Insurable interest: life assurance contracts

(1) This section applies in respect of all assurance contracts, whether entered
into before this section comes into operation or after this section comes
into operation.
(2) An assurance contract is not void or illegal nor is to be treated as ever
having been void or illegal by reason only that the policy holder did not,
at the time the contract was entered into, have an insurable interest in the
subject of the contract.

(3) Subsection (2) is subject to orders under section 5.
Section 5 Life Assurance (Insurable Interest) Act 2004


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5 Insurable interest: exception orders

(1) The Isle of Man Financial Services Authority may by order prescribe
assurance contracts and classes of such contracts to which section 4 does
not apply and which, accordingly, may be treated as void and illegal by
reason that the policyholder did not have, at the time the contract was
entered into, a specified insurable interest in the subject of the contract.4

(2) An order under subsection (1) shall not have effect in respect of any
contract entered into before the date on which the order comes into
operation.
(3) Before making an order under subsection (1), the Isle of Man Financial
Services Authority shall consult with the Isle of Man Office of Fair
Trading and such bodies as appear to the Isle of Man Financial Services
Authority to be representative of assurers likely to be affected by the
order.5

(4) An order under subsection (1) shall not come into operation unless it is
approved by Tynwald.
6 Insurable interest: supplementary

(1) Notwithstanding section 4, a policy holder under an existing contract
and any other person having any interest in any sum falling due under
an existing contract shall, in addition to any rights or remedies available
as a result of the operation of that section, continue to have the same
rights and remedies arising under or in respect of the existing contract as
they would have had if that section had not been passed.
(2) In this Part —
“assurance contract
” means a contract under which is assured or secured the
payment of any money out of the funds of an assurer on the happening
of any contingency depending on the duration of human life;
“assurer
” means any company that carries on the business of assuring lives or
survivorships;
“contract
” includes purported contract;
“existing contract
” means an assurance contract entered into before the
commencement of section 4;
“policy holder
” includes an insured person and any person on whose behalf an
insurance contract is made.
Life Assurance (Insurable Interest) Act 2004 Section 24


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PART 3

7 to 12 [Repealed]
6

PART 4

13 to 19 [Repealed]
7

PART 5

20 to 23 [Repealed]
8

PART 6 – SUPPLEMENTARY

24 [Repealed]
9

25 Amendments and repeals

(1) The Retirement Benefits Schemes Act 2000 is amended in accordance with
Schedule 2.
(2) [Repealed]10

26 Short title and commencement

(1) This Act may be cited as the Life Assurance (Insurable Interest) Act
2004.11

(2) This Act shall come into operation on such day as may be appointed by
order made by the Isle of Man Financial Services Authority and different
days may be so appointed for different provisions and for different
purposes.12
13

Life Assurance (Insurable Interest) Act 2004 Schedule 1



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Schedule 1
14

Schedule 2

Section 25(1)
[Sch 2 amends the following Act —
Retirement Benefits Schemes Act 2000 q.v.]
Schedule 3

Section 25(2)
[Sch 3 repeals the following Acts in part —
Investment Business Act 1991
Anti-Terrorism and Crime Act 2003.]
Life Assurance (Insurable Interest) Act 2004 Endnotes


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ENDNOTES

Table of Legislation History

Legislation Year and No Commencement






Table of Renumbered Provisions

Original Current






Table of Endnote References

1
Previous title Insurance (Amendment) Act 2004 renamed by Insurance Act 2008. 2
Part 1 repealed by Insurance Act 2008 Sch 9. 3
Ss 1 to 3 repealed by Insurance Act 2008 Sch 9. 4
Subs (1) amended by SD2015/0090 as amended by SD2015/0276. 5
Subs (3) amended by SD2015/0090 as amended by SD2015/0276. 6
Ss 7 to 12 repealed by Insurance Act 2008 Sch 9. 7
Ss 13 to 19 repealed by Insurance Act 2008 Sch 9. 8
Ss 20 to 23 repealed by Insurance Act 2008 Sch 9. 9
S 24 repealed by Insurance Act 2008 Sch 9. 10
Subs (2) repealed by Insurance Act 2008 Sch 9. 11
Subs (1) substituted by Insurance Act 2008 Sch 8. 12
Subs (2) amended by SD2015/0090 as amended by SD2015/0276. 13
ADO (whole Act except ss 9 and 20 and in Sch 3 the entry relating to s 11 of the
Insurance Act 1986) 1/7/2004; (s 9) 1/10/2004 (SD268/04) (as amended by SD161/05)). 14
Sch 1 repealed by Insurance Act 2008 Sch 9.