6. —(1) Subject to subsection (3), this Act applies to an unclaimed policy in respect of which moneys are payable in the State to a policy holder who has a correspondence address in the State.

(2) For the purposes of this Act, a policy is deemed to be unclaimed—

(a) where—

(i) the policy has a specified term which has expired,

(ii) an amount would be payable to the policy holder under the policy if the policy holder were to make a claim under the policy or, in the case of an approved policy, is available to be applied on behalf of the policy holder in accordance with the terms of the policy, and

(iii) the insurance undertaking has received no communication from the policy holder for a period of 5 years or more beginning on the later of—

(I) the day following the last day of the specified term of the policy, or

(II) the date on which the undertaking last received a communication from the policy holder,

or

(b) where—

(i) the policy does not have a specified term,

(ii) an amount would be payable to the policy holder if the policy holder were to make a claim under the policy, and

(iii) the undertaking has received no communication from the policy holder for 15 years or more beginning on the date on which the undertaking last received a communication from the policy holder.

(3) This Act does not apply to a policy which constitutes or forms part of the assets of any of the following:

(a) an occupational pension scheme, other retirement benefit scheme or trust, approved under Chapter 1 of Part 30 of the Taxes Consolidation Act 1997 (other than an approved policy within the meaning of this Act);

(b) a group permanent health insurance or disability benefit scheme;

(c) a sponsored superannuation scheme within the meaning of Chapter 2 of Part 30 of the Taxes Consolidation Act 1997.

7. —(1) The Minister, having regard to the purposes specified in subsection (3), following consultation with the regulatory authority and subject to the consent of the Minister for Finance, amy make regulations providing for the application of this Act and instruments made under this Act, with and subject to any modifications that may be specified in the regulations, to policies (including policies other than policies of life assurance), that are issued to such class or classes of person by such class or classes of undertaking specified in the regulations.

(2) Without prejudice to the generality of subsection (1), the modifications, if any, may relate to any of the following matters:

(a) the period specified in paragraph (a) (iii) or (b) (iii) of section 6(2);

(b) the notice procedure set out in Chapter 2;

(c) the transfer of moneys to the Fund under section 10;

(d) the keeping of a register under section 12 and the particulars required to be entered in the register under that section;

(e) the disclosure of information for statistical purposes under section 13;

(f) the processing of claims under Chapter 4;

(g) any other matters that may appear to the Minister to be necessary for carrying the regulations into effect.

(3) The Minister may make regulations under this section for the following purposes:

(a) consumer protection;

(b) the proper and orderly regulation of the financial services industry;

(c) to facilitate the accessing or identification by persons of policies or moneys to which they are entitled;

(d) to reduce the administrative and financial burden of maintaining unclaimed policies.

8. —(1) Subject to section 9 , except where a policy holder has previously been given notice under this section in respect of an unclaimed policy, each holder of an unclaimed policy shall be given written notice by the insurance undertaking concerned of the following:

(a) the name and current address of the undertaking and any information regarding a change of name since the policy issued;

(b) that an unclaimed policy to which the policy holder appears to be entitled is held at the undertaking;

(c) that if no communication is received by the insurance undertaking from the policy holder on or before 31 March next following, commencing on 31 March 2004, the net encashment value of the policy will be transferred to the Fund without further notice to the policy holder;

(d) that the policy holder is entitled, subject to this Act and the terms and conditions of the policy, to claim the moneys payable under the policy from the insurance undertaking;

(e) any other matters that may be prescribed.

(2) The notice referred to in subsection (1) shall be sent by ordinary post to the correspondence address of the policy holder—

(a) in the case of the first notice sent after the commencement of this section, as soon as practicable after such commencement, and

(b) in the case of each subsequent notice, as soon as practicable after 30 September, commencing on 30 September 2003.

(3) An insurance undertaking that fails to give notice to a policy holder in accordance with this section is guilty of an offence.

9. —(1) Where an unclaimed policy is held at an insurance undertaking and—

(a) subject to any order made under subsection (7), the value of the policy is less than €500 or its equivalent in any other currency,

(b) the insurance undertaking has been instructed by the policy holder not to correspond with or contact the policy holder, or

(c) the insurance undertaking has taken all reasonable steps to notify the policy holder in accordance with section 8 and fails to do so,

section 8 does not apply and the insurance undertaking shall publish or cause to have published a notice in 2 or more daily newspapers circulating in the State and in Iris Oifigiúil.

(2) The notice shall be published—

(a) in the case of the first notice published after the commencement of this section, on 21 March 2003, and

(b) in the case of each subsequent notice, on the first weekday in October in each year commencing on 1 October 2003.

(3) The notice shall be in the prescribed form or in a form to the like effect and shall contain the following information:

(a) subject to subsection (4), the name of the insurance undertaking, the current address of its head office and any information regarding a change of name;

(b) that the undertaking holds unclaimed policies;

(c) that if no communication is received by the insurance undertaking from the holder of an unclaimed policy on or before 31 March next following, commencing on 31 March 2004, the net encashment value of the policy will be transferred to the Fund without further notice to the policy holder;

(d) that any interested person should contact the insurance undertaking to establish if he or she is a policy holder and entitled to any moneys payable under an unclaimed policy;

(e) that policy holders are entitled, subject to this Act, and the terms and conditions of the policy concerned, to claim the moneys payable under the policy from the insurance undertaking;

(f) any additional information that may be prescribed.

(4) (a) An insurance undertaking which publishes, or causes to have published, on its behalf, a notice under this section shall, on request, make available free of charge—

(i) details of the current address of its head office and any information regarding a change of name, and

(ii) subject to paragraph (b), any other relevant information specified in the request.

(b) Where the information referred to in paragraph (a)(ii) is otherwise made available to persons subject to a lawful charge, that information may be made available under this subsection subject to that charge.

(5) Copies of a notice published under this section shall be—

(a) permanently displayed in a prominent position at each premises in which the insurance undertaking carries on business in the State and which is open to the public, and

(b) published in a prominent position in all brochures and publicity material, in relation to unclaimed policies, issued by the undertaking.

(6) An insurance undertaking that fails to comply with this section is guilty of an offence.

(7) The Minister may, by order, amend at any time the amount specified in subsection (1)(a) if the Minister—

(a) considers it appropriate to do so having regard to all the circumstances, and

(b) is satisfied that by doing so members of the public will not be prejudiced.

(8) The Minister may by order amend or revoke an order made under this section, including an order made under this subsection.

10. —(1) Where no communication has been received by an insurance undertaking from the holder of an unclaimed policy on or before the date specified in section 8(1)(c) or 9(3)(c), as the case may be, the insurance undertaking at which the unclaimed policy is held shall, subject to subsection (2), not later than 30 April next following, transfer to the Fund the net encashment value of the policy and the first transfer after the commencement of this section shall take place not later than 30 April 2004.

(2) Where the net encashment value of an unclaimed policy cannot be ascertained, the insurance undertaking shall transfer to the Fund the estimated net encashment value.

(3) An insurance undertaking that transfers moneys to the Fund under this section shall furnish to the Agency a written statement specifying—

(a) the total amount of moneys transferred,

(b) the total number of unclaimed policies which have a specified term, and

(c) the total number of unclaimed policies which have no specified term.

(4) An insurance undertaking that does not hold any unclaimed policies to which subsection (1) applies shall make a written report to that effect to the Agency not later than 30 April in each year and the first report after the commencement of this section shall be made not later than 30 April 2004.

(5) An insurance undertaking is guilty of an offence if it—

(a) fails to transfer moneys to the Fund under this section,

(b) fails to furnish a statement to the Agency in accordance with subsection (3), or

(c) fails to make a report to the Agency in accordance with subsection (4).

(6) (a) Moneys which an insurance undertaking fails to transfer to the Fund under this section shall be a simple contract debt due and owing by the undertaking to the Fund and may be recovered by the Minister from the undertaking in any court of competent jurisdiction.

(b) Moneys recovered under paragraph (a) shall be paid into and form part of the Fund.

(c) The Minister shall, without prejudice to the rights of the policy holder, be deemed to be the policy holder for the purposes of recovering moneys from an insurance undertaking in accordance with this subsection.

11. —(1) After the relevant date, an insurance undertaking shall not transfer moneys to the Fund under section 10 if—

(a) the authorisation of the insurance undertaking is revoked, withdrawn or suspended,

(b) the regulatory authority gives a direction to the insurance undertaking under—

(i) Article 54(2) of the Life Regulations of 1994, or

(ii) section 17 or 18 of the Insurance Act 1989,

(c) the regulatory authority applies to the court for an order under Article 36 of the Life Regulations of 1994 in relation to the insurance undertaking,

(d) an examiner or administrator is appointed by the court to the insurance undertaking, or

(e) the insurance undertaking is—

(i) in receivership,

(ii) in liquidation,

(iii) being wound up, or

(iv) otherwise being dissolved.

(2) The prohibition in subsection (1) ceases to apply to the insurance undertaking when—

(a) its authorisation is restored or the suspension is terminated,

(b) a direction referred to in subsection (1)(b) is revoked, set aside, terminated or otherwise ceases to have effect,

(c) in the case of an order referred to in subsection (1)(c), an application for an order is withdrawn or refused or the order is set aside, terminated or otherwise ceases to have effect, or

(d) the appointment of an examiner or administrator has terminated.

(3) In this section “relevant date” means—

(a) the date of the revocation, withdrawal or suspension of the authorisation, as the case may be, or the date on which the direction is given or an application for an order is made,

(b) the date of appointment of the examiner or administrator,

(c) the date of appointment of the receiver,

(d) where the insurance undertaking is being wound up—

(i) in the case of a voluntary winding up, the date of the passing of the resolution for voluntary winding up,

(ii) in the case where, before the presentation of a petition for the winding up by the court, a resolution has been passed for voluntary winding up, the date of the passing of the resolution, and

(iii) in any other case, the date of the presentation of a petition for the winding up by the court,

or

(e) where the institution is otherwise being dissolved, the date of the dissolution.

(4) An insurance undertaking that fails to comply with subsection (1) is guilty of an offence.

12. —(1) Each insurance undertaking shall keep a register of unclaimed policies.

(2) Subject to subsection (3), an insurance undertaking shall enter in the register the following particulars of unclaimed policies in respect of which moneys are transferred to the Fund under section 10:

(a) the name and correspondence address of the policy holder, if ascertainable;

(b) the policy number, if any and ascertainable;

(c) the total number of policies which have a specified term;

(d) the total number of policies which have no specified term;

(e) if a notice was sent to the policy holder under section 8, the date on which the notice was sent;

(f) the date on which the policy was deemed to be an unclaimed policy in accordance with section 6;

(g) the date of the transfer of moneys to the Fund and the amount transferred;

(h) where notice to the Agency has been given under section 15, the date on which moneys were paid and the amount paid in accordance with that section—

(i) by the Agency to the insurance undertaking, and

(ii) by the insurance undertaking to the policy holder;

(i) in the case of continuing risk policies, the total amount of the charges (if any) referred to in section 2(4)(c) made by the undertaking in respect of those policies;

(j) any other matters that may be prescribed.

(3) Where moneys are transferred to the Fund in accordance with section 10(2), subsection (2) of this section does not apply and the following particulars only shall be entered in the register:

(a) the total amount transferred;

(b) the number of policies in respect of which the moneys have been transferred;

(c) the date of the transfer to the Fund;

(d) the total amount paid to policy holders under section 15.

(4) The register may be kept in any form subject to its being capable of being converted into a legible form and being used to make a legible copy or reproduction of any entry in the register.

(5) (a) Subject to paragraph (b) the register shall not be open to public inspection.

F2[(b)Nothing in paragraph (a) shall be construed as restricting the right of a person to inspect the register in relation to a policy where the person—

(i) proves to the satisfaction of an insurance undertaking that he or she is, or may be, the policy holder,

(ii) proves to the satisfaction of an insurance undertaking that he or she is authorised by the policy holder to so inspect, or

(iii) may act on behalf of the policy holder in relation to that policy pursuant to regulations made under section 7.]

(6) An insurance undertaking is guilty of an offence if it fails to—

(a) keep a register, or

(b) enter in the register the particulars specified in subsection (2) or (3), as the case may be.

13. —(1) The Minister, following consultation with the regulatory authority, in the interests of consumer protection and the proper and orderly regulation of the financial services industry, may, for statistical purposes only, make regulations providing for the disclosure of the information specified in subsection (2) —

(a) to the persons and subject to the conditions (including the payment of charges by the person seeking the information concerned) and restrictions that the Minister may prescribe, and

(b) in a form that the information cannot be directly or indirectly related to an identifiable person.

(2) The information referred to in subsection (1) may include—

(a) prescribed information from the register,

(b) details of the classes of unclaimed policies, and

(c) the number of unclaimed policies in each class.

14. —The transfer of moneys to the Fund under section 10 is without prejudice to the rights of policy holders as provided for in the documents constituting, or the enactments governing, insurance undertakings.

15. —(1) Where a person who makes a claim under an unclaimed policy in respect of which moneys have been transferred to the Fund under section 10 proves to the satisfaction of the insurance undertaking concerned that he or she is the policy holder, the undertaking shall—

(a) give written confirmation to the person that he or she is the policy holder,

(b) within 10 working days after giving the confirmation give written notice to the Agency of the net encashment value of the unclaimed policy, and

(c) send to the policy holder a copy of the notice to the Agency.

(2) The Agency shall pay to the insurance undertaking, within 21 days after the date of the notice, the net encashment value of the policy as stated in the notice given under subsection (1) (b).

(3) Within 5 working days after receipt of payment under subsection (2), the insurance undertaking shall—

(a) subject to any charges or deductions that may be made by the insurance undertaking—

(i) pay to the policy holder the moneys payable under the policy, or

(ii) at the written request of the policy holder and in accordance with the terms of the policy, apply the moneys payable under the policy,

and

(b) provide to the policy holder a written statement of the moneys payable or applied under the policy, as the case may be, and of any charges or deductions made.

(4) In this section “working day” means a day that is not a Saturday, Sunday or public holiday (within the meaning of the Organisation of Working Time Act 1997).

16. —(1) Where an insurance undertaking has been wound up, the liquidator appointed to the insurance undertaking shall, in addition to his or her duties and obligations in respect of the winding up and following dissolution of the insurance undertaking, submit the register to the regulatory authority.

(2) Where a register is submitted to the regulatory authority under subsection (1), the regulatory authority shall—

(a) process, in accordance with section 15 , claims made under unclaimed policies in respect of which moneys were transferred to the Fund under section 10, and

(b) enter in the register the following particulars:

(i) where notice was given to the Agency under section 15, the date on which moneys were paid and the amount paid in accordance with that section—

(I) by the Agency to the regulatory authority, and

(II) by the regulatory authority to the policy holder;

(ii) any other matters that may be prescribed.

17. —(1) In this section—

“duly authorised officer” means a person authorised, in writing, by the insurance undertaking concerned or by some person authorised in that behalf by that undertaking;

“financial year” means the financial year of the insurance undertaking concerned.

(2) Each insurance undertaking shall furnish a certificate of compliance to the regulatory authority, not later than one month after the end of each financial year, in the form and manner that the regulatory authority may specify, stating, if this is the case, that the insurance undertaking has complied with this Act in respect of the following:

(a) the publication of a notice under section 9;

(b) in the case of an insurance undertaking that holds unclaimed policies to which section 10(1) applies, the transfer of moneys to the Fund under that section;

(c) in the case of an insurance undertaking which does not hold any unclaimed policies to which section 10(1) applies, the filing of a report to that effect with the Agency under section 10(4);

(d) the keeping of a register in accordance with section 12;

(e) the processing of claims under section 15.

(3) The certificate shall be signed by a duly authorised officer and shall include any qualifications, amplifications or explanations that the officer considers appropriate.

(4) An insurance undertaking is guilty of an offence if it fails to—

(a) appoint a duly authorised officer, or

(b) furnish a certificate of compliance under this section.

18. —In this Chapter—

“branch” means an agency or branch of an insurance undertaking or any permanent presence of an undertaking in the State even if that presence does not take the form of an agency or branch but consists merely of an office managed by the insurance undertaking's own staff or by a person who is independent but has permanent authority to act for the insurance undertaking in the same way as an agency;

“by way of services into the State” means the covering of a commitment by an insurance undertaking in the State through a head office or branch situated in another Member State;

“computer” includes a personal organiser or any other electronic means of information storage and retrieval;

“home Member State” means the Member State (other than the State) in which the head office of an insurance undertaking is situated;

“inspector” means a person authorised by the regulatory authority under section 19 to exercise the powers conferred on an inspector by this Chapter;

“Member State” means a Member State of the European Communities;

“record” means any book, document (including accounts) or any other written or printed material in any form including—

(a) any information stored, maintained or preserved by means of any mechanical or electronic device, whether or not stored, maintained or preserved in a legible form and that is capable of being reproduced in a legible form, and

(b) all the electronic or other automatic means, if any, by which any such material or information is capable of being so reproduced and to which an insurance undertaking, being inspected for the purposes of this Chapter, has access;

“supervisory authority” means the authority charged by law with the duty of supervising the activities of insurance undertakings in the home Member State.

19. —(1) The regulatory authority may authorise one or more persons to be inspectors for the purposes of—

(a) ensuring compliance by insurance undertakings with this Act,

(b) examining notices to the Agency under section 15,

(c) ascertaining whether insurance undertakings have established systems, procedures and practices that are adequate to secure an effective check on the identification, notification, transfer, recording and payment of moneys payable under unclaimed policies, and

(d) determining whether those systems, procedures and practices have been employed and applied in an adequate manner in relation to moneys payable under unclaimed policies.

(2) An authorisation under this section shall be in writing and shall be subject to any terms and conditions (including terms and conditions relating to the remuneration, fees and allowances for expenses) that may be determined by the regulatory authority, with the consent of the Minister for Finance, and that are specified in the authorisation.

(3) The remuneration, fees and allowances for expenses referred to in subsection (2) shall be payable out of the Fund.

(4) The authorisation of an inspector under this section ceases when the regulatory authority revokes the authorisation.

20. —(1) An inspector may, for the purposes specified in section 19, on production of his or her authorisation—

(a) at all reasonable times and on reasonable notice inspect and take copies of or extracts from (including, in the case of information in a non-legible form, a copy of or extract from that information in a permanent legible form), and make any enquiries that the inspector considers necessary in relation to the following records kept by an insurance undertaking—

(i) policies held by the insurance undertaking,

(ii) records of the transfer of moneys to the Fund under section 10,

(iii) the register,

(iv) notices to the Agency under section 15 ,

(v) any other records relating to the matters specified in subparagraphs (i) to (iv), and

(vi) any other records relating to unclaimed policies,

and, for those purposes, enter any premises on which the inspector reasonably believes that those records are kept and search and inspect the premises,

(b) secure for later inspection any premises or any part of a premises on which those records are kept or there are reasonable grounds for believing that those records are kept,

(c) where records that are stored in electronic form or are not in the English or Irish language, require the insurance undertaking concerned or a person employed by that insurance undertaking to produce in a legible form a copy of those records in the English or Irish language,

(d) require a person by whom or on whose behalf a computer is or has been used to produce or store records or any person having charge of, or otherwise concerned with the

operation of, the computer to afford the inspector all reasonable assistance in relation thereto, and

(e) remove and retain those records for such period as may be reasonable for further inspection or until the conclusion of any legal proceedings, subject to a warrant being issued for that purpose by a judge of the District Court.

(2) A person who has in his or her power, possession or procurement any records referred to in subsection (1) shall—

(a) produce them at the request of the inspector and permit the inspector to inspect and take copies of or extracts from them,

(b) at the request of the inspector, give the inspector any information that the inspector may reasonably require in relation to any entries in those records and provide an explanation of any apparent omissions from them or any omission of a record required to be produced, and

(c) give any other assistance and other information to the inspector that is reasonable in the circumstances.

(3) The duty to produce or provide any record or information extends to an examiner, administrator, liquidator, receiver, official assignee or any person who is or has been an officer or employee or agent of an insurance undertaking or who appears to the regulatory authority or the inspector to have the information or record in his or her possession or under his or her control.

(4) Where a person from whom production of a record is required claims a lien thereon, the production of the record shall be without prejudice to the lien.

(5) An inspector shall not, except with the consent of the occupier, enter a dwelling unless he or she has obtained a warrant issued by a judge of the District Court under subsection (7) authorising the entry.

(6) An inspector, where he or she considers it necessary, may be accompanied by a member of the Garda Síochána when performing any powers conferred on an inspector by this Part.

(7) If a judge of the District Court is satisfied on the sworn information of an inspector that there are reasonable grounds for suspecting that there is information required by an inspector under this section held on any premises or any part of any premises, the judge may issue a warrant authorising an inspector, accompanied by other inspectors or by a member of the Garda Síochána, at any time or times within one month from the date of issue of the warrant, on production of the warrant if requested, to enter the premises, if need be by reasonable force, and exercise all or any of the powers conferred on an inspector under this section.

(8) A person is guilty of an offence if he or she—

(a) obstructs an inspector in the exercise of a power under this Chapter,

(b) gives to an inspector information that the person knows is false or misleading, or

(c) without reasonable excuse, fails to comply with a request or requirement made by an inspector under this Chapter.

(9) For the purposes of carrying out inspections under this Chapter the inspector shall have access to—

(a) all records kept by the Agency in relation to—

(i) the transfer of moneys to the Fund under section 10, and

(ii) the payment of moneys from the Fund under section 15,

and

(b) the certificates of compliance furnished to the regulatory authority under section 17.

21. —(1) Where an insurance undertaking is carrying on life assurance business in the State by way of branch establishment or by way of services into the State, in the interests of consumer protection, the proper and orderly regulation of the financial services industry or the general good, it shall submit to an inspector, on request, all documents which the inspector considers necessary for the purposes of implementing this section insofar as an insurance undertaking with a head office situated in the State is also required to do so.

(2) Where an insurance undertaking carrying on life assurance business by way of branch establishment or by way of services into the State does not comply with a request from an inspector under subsection (1), the inspector shall inform the regulatory authority which may, by written direction, require the insurance undertaking to comply with the request.

(3) Where an insurance undertaking fails to comply with a direction under subsection (2) of this section or section 25(1), as the case may be, the regulatory authority shall inform the supervisory authority concerned.

(4) If, after informing the supervisory authority concerned under subsection (3), any measures taken by the supervisory authority against the insurance undertaking concerned are, in the opinion of the regulatory authority, not adequate and the undertaking continues to contravene this Act, the regulatory authority may, after informing the supervisory authority of its intention, apply to the High Court for such order as to the Court may seem fit, in order to prevent further infringements of this Act, including, insofar as is necessary and in accordance with the Insurance Acts 1909 to 2000, regulations made under those Acts and regulations relating to insurance made under the European Communities Act 1972, the prevention of that insurance undertaking from continuing to conclude new insurance contracts within the State.

(5) The regulatory authority shall give written notification to the insurance undertaking concerned of any order of the High Court under subsection (4) or measure adopted by the regulatory authority pursuant to this section together with the grounds for the adoption of the measure.

22. —(1) Where, following an inspection under this Part, the inspector is of the opinion that—

(a) there is reason to believe that the insurance undertaking concerned is in breach of any provision of this Act, or

(b) there is a material defect in the systems, procedures and practices referred to in section 19(1)(c),

the inspector shall prepare a written report and shall submit a copy of the report to the regulatory authority.

(2) Subject to subsection (3), policy holders shall not be referred to in a report under this section (otherwise than for the purposes of subsection (3)) by name or in any manner by which they could be identified as being the policy holder.

(3) An inspector who, in the course of an inspection, obtains prima facie evidence of—

(a) a possible underpayment of moneys, or failure to transfer moneys, under section 10 , or

(b) a fraudulent notice to the Agency under section 15,

shall furnish to the regulatory authority particulars of the evidence and of the policies and policy holders concerned.

(4) An inspector shall provide to the regulatory authority any information and assistance that may reasonably be required by the regulatory authority in respect of any matters relating to an inspection carried out under this Chapter or for the purpose of clarifying any matter in the inspector's report.

(5) The regulatory authority may give directions in relation to the form, manner and content of a report under this section.

23. —Utterances made in good faith by an inspector for the purpose of performing the functions of an inspector under this Chapter are absolutely privileged and such utterances and reports in any form prepared by an inspector for that purpose are absolutely privileged wherever and however published.

24. —(1) Subject to section 22(2), any prohibition or restriction imposed by law (including any contract) in relation to the disclosure of information (including records in any form) does not apply in relation to—

(a) the disclosure of information in good faith to, or access to information by, an inspector for the purposes of his or her functions under this Part, or

(b) any information that is contained in an inspector's report under section 22 and in the opinion of the inspector ought, in the public interest, to be so contained and no liability of any kind shall attach to the person or insurance undertaking (including their directors, officers or employees) making the disclosure.

(2) Nothing in this section or section 20 or 21 compels the disclosure by any person of any information that the person would, in the opinion of the court, be entitled to refuse to produce on the grounds of legal professional privilege or authorises the taking possession of any document containing such information that is in the person's possession.

25. —(1) Without prejudice to any prosecution that might be brought under this Act, where an inspector's report under section 22 discloses particulars of—

(a) non-compliance by an insurance undertaking with any provision of this Act, or

(b) a material defect referred to in section 22(1)(b),

the regulatory authority may, as soon as practicable after receiving the report, give written directions to the insurance undertaking aimed at ensuring compliance or rectification of the material defect, as the case may be, subject to any terms and conditions that the regulatory authority may specify in the directions.

(2) (a) An insurance undertaking that fails to comply with a direction under subsection (1) is guilty of an offence.

(b) It shall be a defence to a prosecution under paragraph (a) for the insurance undertaking concerned to prove that a direction under subsection (1) was unreasonable having regard to—

(i) the scope and terms of the provision of this Act that, in the opinion of the inspector, the insurance undertaking failed to comply with, or

(ii) the nature and consequences of the alleged material defect.