Consolidated Life Assurance Directive.

EU Directive 2002/83/EC of 5 November 2002 concerning life assurance (the new Directive) came into force on 19 December 2002.

The primary aim of the new Directive is to consolidate and restate the three existing life assurance directives (each of which has been substantially amended several times) in the interests of clarity. The new Directive repeals all three directives, together with the directives, or provisions of directives, which amended them. A list of the directives that have been repealed can be found in Annex V, Part A of the new Directive.

Amongst the directives to have been repealed is Directive 2002/12/EC of 5 March 2002 (the so-called "Solvency I Directive"). This directive laid down revised minimum standards in respect of the solvency margins of life companies. These revised minimum standards can now be found in the new Directive.

The new Directive also introduces a limited number of technical additions and alterations to the previous law. The text of the new Directive can be found on the website of the European Union at www.europa.eu.int.

Article by Nicholas Moore

[c] Herbert Smith 2003.

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