(1) Subject to sub-article (2) of this Article, these Regulations apply to insurance business ("life assurance") of the classes specified in Part A of Annex I and to undertakings carrying on such insurance.

(2) These Regulations do not apply to -

(a) the kinds of insurance specified in Articles 2 (1) and 2 (4) of the First Directive;

(b) the operations specified in Articles 2 (2) and 2 (3) of the First Directive;

(c) the organisations and mutual associations excluded from the application of the First Directive by Article 3 thereof;

(d) the bodies referred to in Article 4 of the First Directive.