Section 23
Section 23
(1)
The assets of any insurance fund under this Order shall be kept separate from all other assets of the insurer, and shall not include assets comprised in a deposit under this
Order except as provided by subsection (5), nor any amounts on account of goodwill, the benefit of development expenditure or similar items not realisable apart from the business or part of the business of the insurer.
(2)
The assets of an insurance fund established in respect of general business shall not include any amount representing the total of outstanding premiums and agents’ balances which is in excess of any amount prescribed by the Authority.
(3)
Subject to section 27, the assets of any insurance fund shall be such that –
(a)
the value of Brunei Darussalam assets as specified in the Third
Schedule, with any such additions as are permitted by subsection (4), is not less than any amount prescribed; and
Incorporating amendments until S 1/2016
(Clean copy) NANI/H.AFIF/fiqah _ as of 3rd July 2020
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BLUV as at 14th January 2016
(b)
the value of investments in securities of the Government or of a body incorporated in Brunei Darussalam is not less than 25 per cent of the total value of the assets of the fund.
(4)
For the purposes of subsection (3), there may be added to the value of items specified in the Third Schedule the amount or value of any assets of the fund of the following descriptions –
(a)
income arising from those items but not yet received;
(b)
outstanding premiums on life policies on which future liabilities may be met out of the assets of the fund, being premiums which are to be paid in Brunei
Darussalam currency;
(c)
outstanding premiums and agents balances in respect of Brunei
Darussalam policies for general business but not exceeding the amount permitted in subsection (2);
(d)
interest not yet received on loans secured on any such policies, being interest which is to be paid in Brunei Darussalam currency;
(e)
sums representing claims recoveries from reinsurers in or outside Brunei
Darussalam.
(5)
The Authority may, in respect of assets of any insurance fund, require an insurer –
(a)
not to make investments of a specified class or description;
(b)
to realise, before the expiration of a specified period or such extended period as the Authority may allow, the whole or a specified proportion of investments of a specified class or description held by the insurer when the requirement is made.
(6)
For the purpose of this section, the assets representing any reinsurer’s deposit held by the insurer to meet liabilities of an insurance fund shall be treated as assets of the fund.
(7)
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.
Incorporating amendments until S 1/2016
(Clean copy) NANI/H.AFIF/fiqah _ as of 3rd July 2020
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BLUV as at 14th January 2016
Restrictions on payment of dividends and grant of advance, loan and credit facility.