ABSTRACT
The 1982 Act also regulates insurance companies whose principal places of business are in other States both within and outside the European Union, and who carry on business in the United Kingdom. Certain court decisions held that an insurance contract entered into by an insurance company in breach of the 1982 Act was illegal and void. This situation was rectified by section 2 of the Financial Services Act 1986. Liability insurance has to provide for the possibility of a mid-air collision between wide-bodied aircraft full of passengers over an urban area or installation such as a nuclear power station. In some States 100 percent of a major risk may be insured within that State, for example where the insured is a State enterprise and the insurer is a State insurance company. The English law of insurance requires the insured to have an “insurable interest” in the subject matter of the insurance; otherwise it will be a wager and unenforceable.
