Combined Insurance Company of America (CICA), Re [2012] EWHC 632 (Ch) (16 March 2012)

Combined Insurance Company of America (CICA), Re [2012] EWHC 632 (Ch) (16 March 2012)

It is not appropriate to direct the Applicants to give individual notification to former policyholders potentially affected by the PBR, as the benefit to those policyholders and to the process is insubstantial compared to the cost and potential confusion. General advertising and existing safeguards are sufficient at...

Source-derived case information.

Citation
[2012] EWHC 632 (Ch)
Parties
Transferor: Combined Insurance Company of America; Transferee: ACE European Group Limited; Transferee: ACE Europe Life Limited; Regulator: Financial Services Authority
Jurisdiction
England and Wales
Judgment Date
16 March 2012
Procedural Posture
Application for Directions Under Part VII FSMA 2000 / Preliminary Directions Hearing
Outcome
Application for directions granted in part; FSA's request for individual notification to former policyholders refused.
Legal Topics
Transfer of Insurance Business, Policyholder Notification, Regulatory Compliance, Consumer Protection, Scheme of Arrangement
Financial Services Law Insurance Law Company Law Transfer of Insurance Business Policyholder Notification Regulatory Compliance Consumer Protection Scheme of Arrangement

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Summary, issues, holding and outcome

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Parties

Combined Insurance Company of America

Transferor

ACE European Group Limited

Transferee

ACE Europe Life Limited

Transferee

Financial Services Authority

Regulator

Procedural Posture

Application for Directions Under Part VII FSMA 2000 / Preliminary Directions Hearing

Legal Issues

  1. 1 Whether the Applicants should be directed to give individual notice of the proposed transfer scheme to certain former policyholders potentially affected by a Past Business Review (PBR)

Ratio Decidendi

It is not appropriate to direct the Applicants to give individual notification to former policyholders potentially affected by the PBR, as the benefit to those policyholders and to the process is insubstantial compared to the cost and potential confusion. General advertising and existing safeguards are sufficient at this stage.

Court Disposition

Application for directions granted in part; FSA's request for individual notification to former policyholders refused.

Orders

  • Directions for notification and advertising as discussed at hearing granted, excluding individual notification to former policyholders.
  • Applicants and FSA to resolve wording of notice regarding the PBR; if unresolved, further application to court permitted.