(1) The law applicable to a contract of insurance made by a friendly society the effecting of which constitutes general business and which covers risks situated in the United Kingdom or another member State shall be determined -
(a) in the case of a society to which section 37(3) above applies, in accordance with Part I of Schedule 20 to this Act; and
(b) in any other case, in accordance with that Part of that Schedule as modified by subsection (3) below.
(2) The law applicable to a contract of insurance made by a friendly society the effecting of which constitutes long term business and which covers commitments or risks situated in the United Kingdom or another member State shall be determined -
(a) in the case of a society to which section 37(2) above applies, in accordance with Part II of Schedule 20 to this Act; and
(b) in any other case, in accordance with Part I of that Schedule as modified by subsection (3) below.
(3) For the purposes of paragraph (b) of subsections (1) and