(1) In these Regulations "permanent health insurance" means the business of effecting and carrying out contracts of insurance providing specified benefits against risks of persons becoming incapacitated in consequence of sustaining injury as a result of an accident or of an accident of a specified class or of sickness or infirmity, being contracts that - (a) are expressed to be in effect for a period of not less than five years or until normal retirement age for the persons concerned, or without limit of time, and (b) either: (i) are not expressed to be terminable by the insurer under the terms of the contract, or (ii) are expressed to be so terminable only in special circumstances mentioned in the contract.
(2) Subject to subarticle (3) of this Article, permanent health insurance shall not be carried on by an undertaking in the State unless that undertaking holds an authorisation granted in respect of Class IV in Schedule I to these Regulations.