IHTM27103 - Policy monies: policy issued at branch office

If a policy is issued by, or through, a branch office of a UK company, outside the UK, and no reference is made in the terms of the policy as to the place where the policy monies are to be paid.

Policy monies are to be treated as situated in the country of the branch office provided that the whole course of business in relation to the policy had been transacted in that country.

The “whole course of business” connotes the happening of all the following events in the country of the branch office:

1. that the policy is issued to a resident in that country from the branch in that country
   
   
2. that the holder of the policy remains resident and retains the policy there, pays the premiums to the branch there, and dies there
   
   
3. that representation to his estate is taken there and the money collected there.

With regard to condition (b) if at the date of the life assured’s death, the policy is in the UK at the Assurance Company’s head office and the life assured has assigned the policy to the assurance company as security for a loan, do not assume that the policy was situated in the UK without considering the other circumstances surrounding the policy.

Divergence in detail (for example, discontinuous residence) would not necessarily lead to a different conclusion. However if any of the conditions is not fulfilled, or where the locality of the policy has to be determined before the policy holder’s death, each case must be considered on its own facts. Any such case must be referred to TG

Where a policy under hand in terms provides for payment either at its head office or at a branch office, and the “whole course of business”, in the sense indicated above, takes place in the country of the branch office, the monies are also treated as locally situated in that country.