Insurance Non-corporate Entities
The Insurance (Limited Partnerships) Regulations 2004 amend the Insurance Act 2008, and the Insurance Regulations 1986, to allow limited partnerships to carry on insurance business. The intention of the Regulations is to introduce a regulatory framework for limited partnerships (“LP”) that mirrors, as closely as possible, that which is already established for limited companies.
The Insurance (Limited Partnerships)(Solvency)(Amendment) Regulations 2011 amend the Insurance (Limited Partnerships) Regulations 2004. These Regulations permit authorised insurers established as LPs, with the approval of the Authority, to make loans to their associates that are fully admissible for the purposes of calculating their minimum margins of solvency.
Prior to this, amounts owing from an associate of an insurer that is an LP were admissible only to a maximum aggregate amount of 25% of the partners’ capital and this limit will remain in force in respect of loans that have not received the approval of the Authority.
The Insurance (Solvency) (Amendment) Regulations 2011 amend the Insurance Regulations 1986, the Insurance (Protected Cell Companies) Regulations 2004 and the Insurance (Limited Partnerships) Regulations 2004. These regulations provide for how contingent debt assets are treated for the purposes of calculating the minimum margin of solvency of an insurer. In addition, they extend the period of admissibility of certain debt assets for the purposes of calculating the minimum margin of solvency of an insurer.
Pursuant to the Transfer of Functions (Isle of Man Financial Services Authority) Order 2015, regulation 5 of the Insurance (Miscellaneous Amendments) Regulations 2015 makes consequential amendments to the Insurance (Limited Partnership) Regulations 2004 with effect from the 1 November 2015.
Copies of the above mentioned legislation are available on the Legislation and Guidance page.