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LLD 8A.1 Enabling provision, application and purpose.

Enabling provision and application

LLD 8A.1.1 G

1The insurance market direction in this chapter is given under section 316(1) of the Act (Direction by Authority) and applies to members.

Purpose

LLD 8A.1.2 G

The insurance market direction in this chapter is intended to protect the interests of policyholders and potential policyholders by:

  1. (1)

    providing for the application of the compensation scheme in respect of contracts of insurance issued by members; and

  2. (2)

    providing for the application of such other provisions of the Act as will enable the application of the compensation scheme to be effective in relation to insurance market activities carried on by members.

LLD 8A.2 Insurance market direction on policyholder compensation.

LLD 8A.2.1 D

With effect from 15 October 2003 the following core provisions of the Act apply to the carrying on of insurance market activities by members:

  1. (1)

    Part X (Rules and guidance) for the purpose of applying the rules in COMP and relevant interpretative provisions; and

  2. (2)

    Part XV (Financial Services Compensation Scheme).

LLD 8A.2.2 G

Section 317(2) of the Act (The core provisions) provides that references in an applied core provision to an authorised person are to be read as references to a person in the class to which the insurance market direction applies. In particular, with effect from 15 October 2003, references to a relevant person in Part XV of the Act include a person who was a member at the time the act or omission giving rise to the claim against him took place.