Section 16
Section 16
(1)
An insurer, while registered in respect of any class of insurance business, shall at all times have in respect of that class of business a deposit with the Authority of such amount as may be determined.
(2)
Any such deposit shall be in cash or in Government Securities or such other securities as may be determined.
Incorporating amendments until S 1/2016
(Clean copy) NANI/H.AFIF/fiqah _ as of 3rd July 2020
15
BLUV as at 14th January 2016
(3)
All income accruing in respect of a deposit shall be payable to the insurer making the deposit.
(4)
A deposit made under this section in respect of any class of business shall be retained by the Authority until either the insurer ceases to be registered in respect of that class of insurance business or the deposit is required in the winding-up of the affairs of the insurer;
and if the insurer ceases to be so registered, the deposit or part of it may be further retained for the purpose of and in accordance with any such provision for liabilities in respect of policies as is required by subsection (4) of section 13.
(5)
If at any time a deposit under this section (other than a deposit retained after the insurer has ceased to be registered) comprises assets other than Government Securities, and if the value of those assets is less than the sum determined by virtue of subsection (1), the
Authority may by notice in writing direct the insurer to add thereto within 28 days of the service of the notice, cash or security of a value not less than the difference.
(6)
An insurer which has made a deposit under this section may at any time substitute for any assets comprised in the deposit, cash or securities as may be determined so long as the value of the deposit is not thereby reduced to an amount below that which is required by this Order.
(7)
In the foregoing subsections, “securities” (except in the expression
“Government Securities”) includes any form of investment, and “Government Securities”
means securities of which the principal or interest is charged directly or by way of guarantee on the Consolidated Fund; but no deposit shall include –
(a)
any shares in, or debentures or other securities of, an insurer registered under this Order;
(b)
except so far as a debt comprised in the deposit is secured on land, any estate or interest in land; or
Incorporating amendments until S 1/2016
(Clean copy) NANI/H.AFIF/fiqah _ as of 3rd July 2020
16
BLUV as at 14th January 2016
(c)
any securities authorised in the Third Schedule which the Authority declares in writing to the insurer to be unsuitable for the purposes of a deposit.
(8)
Where by virtue of paragraph (c) of subsection (7) any securities comprised in a deposit have been declared unsuitable, the insurer shall within one calendar month of the securities being so declared substitute therefor such other securities as are authorised by this section.
(9)
Any person who fails to comply with this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000, and in the case of a continuing offence to a further fine not exceeding $10,000 for every day during which the offence continues after conviction.
Bank covenants in lieu of deposits.