Part I General business by societies to which Section 37(3) applies
General rules as to applicable law
(1) Where the person ("the person insured") who has entered into the contract of insurance with a friendly society has his habitual residence or central administration within the territory of the member State where the risk is situated, the law applicable to the contract is the law of that member State.
However, where the law of that member State so allows, the parties may choose the law of another country.
(2) Where the person insured does not have his habitual residence or central administration within the territory of the member State where the risk is situated, the parties to the contract may choose to apply either -
(a) the law of the member State where the risk is situated, or
(b) the law of the country in which the person insured has his habitual residence or central administration .
(3) Where the person insured carries on a business and the contract covers