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New Insurance Levy
PRACTICE AREA GROUP: Insurance and Reinsurance
The Insurance (Amendment) Act 2011 which has been signed into law will amend the Insurance Act 1964 and effect changes to the Insurance Compensation Fund (ICF).
The primary purpose of the legislation is to establish a levy in order to fund losses of Quinn Insurance. The Bill includes measures to:
- extend the scope of the Insurance Compensation Fund to cover all insured risk in the State
- to apply a levy of up to 2 per cent to all non-life insurance policies
- to remove the policy holder protection provision for international business in a liquidation situation
- to provide the following enactment funding for administration purposes for the ICF will only be available to companies who conduct a significant percentage of their overall business in the Irish market. Significant will be defined as 70 per cent averaged over the previous 3 years.