Section 31
Section 31
(1)
Subject to subsections (2) and (3), no insurer shall assume any risk in respect of any general insurance business unless –
(a)
the premium payable is received by the insurer or is guaranteed to be paid by such person in such manner and within such time as may be prescribed; or
(b)
a deposit in advance has been made of such amount and in such manner as may be prescribed.
(2)
Where the premium payable pursuant to subsection (1) is received by any person, including an insurance agent or insurance broker, on behalf of an insurer, such receipt shall be deemed to be receipt by the insurer for the purposes of that subsection and the onus of proving that the premium payable was received by a person, including an insurance agent or insurance broker, who was not authorised to receive such premium shall lie on the insurer.
Incorporating amendments until S 1/2016
(Clean copy) NANI/H.AFIF/fiqah _ as of 3rd July 2020
32
BLUV as at 14th January 2016
(3)
Subsections (1) and (2) shall apply to such description of general insurance business as may be prescribed.
(4)
Notwithstanding subsections (1) and (2), an insurer shall not grant credit to insurance agents or insurance brokers and insured in respect of motor vehicle insurance business.
(5)
Where any person, including an insurance agent or insurance broker receives on behalf of an insurer a premium on a policy of insurance of a description for the time being prescribed pursuant to subsection (3), such person shall deposit with, or despatch by post to, the insurer the premium so collected within such period as may be prescribed in relation to policies of the description.
(6)
Any refund of premium, in relation to a policy of insurance of a description as may be prescribed under subsection (3) which may become due to an insured on account of the cancellation of a policy or alteration in its terms and conditions or for any other reason, shall be paid by the insurer directly to the insured and a proper receipt shall be obtained by the insurer from the insured and such refund shall not be paid or credited to any other person, including an insurance agent or insurance broker.
(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 $50,000.
Appointment of actuary.