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By Luis Salazar Carrión

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EP Doc A4-307/98 (SEC (97) 1824-C4-0049/98). 28 SI 1994 No 3159. 29 This was 6 months late. 30 Reg 3(1). 31 Reg 4(1). 32 Reg 4(1). 34 Thus, as far as insurance is concerned, a court cannot assess the fairness of insuring clauses and exception clauses. Article 4, paragraph 2 excludes from the directive those terms of insurance contracts which ‘clearly define or circumscribe . . ’ Due to the difficulty of identifying the terms which define or circumscribe the risk in an insurance contract the insured will often be deprived of the Directive’s protection.

The European Commission in its Draft Interpretative Communication on Insurance Directives makes clear that the violation of these notification procedures would not affect the validity of the policies issued. (d) Harmonisation Harmonisation of the laws of Member States is to be achieved under Article 94 (ex Article 100) of the Treaty of Rome by adoption of Directives by the Council acting on proposals from the Commission. Towards the end of the seventies the European Commission examined the attainability of harmonising the substantive law applying to insurance contracts,23 but in the circumstances that obtained in those days, the aim of harmonising the law of contract proved to be excessively arduous, with the result that the European Commission decided in the meantime to opt for a solution that aimed to solve conflict of laws in its Second ‘Generation’ of Insurance Directives.

According to the Commission, intermediaries are equated to branches if they are subject to the 9 Case 2/74, Reyners v Belgium [1974] ECR 631, (1974) 2 CMLR 305. See Art 58. See s 101 on Sched 20 of the Friendly Societies Act 1993. See also Reg 3 of the Financial Services and Markets Act 2000 which makes certain modifications to the application of the Regulations to friendly societies that are not covered by the insurance directives. 12 See Case 205/84 [1986] ECR 3755 (1987) 1 CMLR 69. 13 See Document CAB XV/207/97.

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