{"kind":"expression","expression":{"expr_id":"88","doc_id":"88","label":"Act 32 of 2010","is_as_enacted":"t","commenced_on":null,"superseded_on":null,"valid_from":null,"valid_to":null,"is_current":"t","incorporating":null,"akn_expr_iri":"\/akn\/ky\/act\/2010\/32\/eng@2010-01-01","akn_envelope":"{\"_canary\": {\"iri\": {\"work\": \"\/akn\/ky\/act\/2010\/32\", \"expression\": \"\/akn\/ky\/act\/2010\/32\/eng@2010-01-01\", \"manifestation\": \"\/akn\/ky\/act\/2010\/32\/eng@2010-01-01.pdf\"}, \"pdf\": {\"md5\": \"9b9a4c94c75a5230fef3729ce89ffc36\", \"path\": \"\/Users\/q\/kyleg-data\/working\/PRINCIPAL\/2010\/2010-0032\/2010-0032_Act 32 of 2010.pdf\", \"pages\": 36, \"filename\": \"2010-0032_Act 32 of 2010.pdf\"}, \"errors\": [], \"extraction\": {\"model\": null, \"stats\": {\"word_count\": 12229, \"paragraph_count\": 43, \"text_char_count\": 77181}, \"usage\": null, \"method\": \"pymupdf-text\", \"version\": \"kyleg-akn-1.0\", \"extracted_at\": \"2026-06-22\"}, \"classification\": \"text_layer\", \"validation_flags\": [], \"docai_processor_id\": null}, \"akomaNtoso\": {\"act\": {\"body\": [{\"eId\": \"sec_n1\", \"num\": null, \"text\": \"Insurance Law, 2010 Law 32 of 2010 18. 19. 20. 21. PART 4 - POWERS AND DUTIES OF THE AUTHORITY 22. 23. 24. 25. 26. 27. 28. PART 5 - MISCELLANEOUS 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. SCHEDULE SAVINGS, TRANSITIONAL AND CONSEQUENTIAL PROVISIONS Insurance Law, 2010 Law 32 of 2010 INSURANCE LAW, 2010 (Law 32 of 2010) ENACTED by the Legislature of the Cayman Islands. PART 1 - PRELIMINARY\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_1\", \"num\": \"1.\", \"text\": \"Short title and commencement 1. (1) This Law may be cited as the Insurance Law, 2010. (2) This Law shall come into force on such date as may be appointed by Order made by the Governor in Cabinet.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_2\", \"num\": \"2.\", \"text\": \"Interpretation 2. (1) In this Law \u2014 \u201cactuary\u201d means a person who has qualified as an actuary by examination of the Institute of Actuaries in England or the Faculty of Actuaries in Scotland or the Society of Actuaries in the United States of America or Canada, and who is a current member in good standing of one of the above professional associations or a person in good standing with some other actuarial qualification who is recognised by the Authority as such for the purpose of this Law; \u201cauditor\u201d means a person who has qualified as an accountant by examination of one of the Institutes of Chartered Accountants in England and Wales, Ireland and Scotland, or the Canadian Institute of Chartered Accountants or the American Institute of Certified Public Accountants, and who is a current Insurance Law, 2010 Law 32 of 2010 member of good standing of one of the institutes referred to or a person of good standing with some other accountancy qualification who is recognised by the Authority as such for the purpose of this Law; \u201cAuthority\u201d means the Cayman Islands Monetary Authority established under section 5 of the Monetary Authority Law (2008 Revision) and includes any employee of the Authority acting under the Authority\u2019s authorisation; \u201cbinding authority\u201d means an instrument whereby an insurer authorises an insurance broker to solicit for a specific class of business on its behalf, having laid down terms and conditions, observance of which fully authorises the insurance broker to effect contracts of insurance between the insurer and the applicant for insurance; \u201cbeneficiary\u201d means a person who is designated by the policy holder under a contract of insurance as a person to whom the whole or part of the proceeds are payable on the maturity or surrender of the contract of insurance or the happening of an event; \u201cclass A insurer\u201d means a holder of a valid class A insurer licence referred to in section 4(3)(a); \u201cclass B insurer\u201d means a holder of a valid class B insurer licence referred to in section 4(3)(b); \u201cclass B (i) insurer\u201d means a holder of a valid class B insurer licence referred to in section 4(3)(b)(i); \u201cclass B (ii) insurer\u201d means a holder of a valid class B insurer licence referred to in section 4(3)(b)(ii); \u201cclass B (iii) insurer\u201d means a holder of a valid class B insurer licence referred to in section 4(3)(b)(iii); \u201cclass C insurer\u201d means a holder of a valid class C insurer licence referred to in section 4(3)(c); \u201cclass D insurer\u201d means a holder of a valid class D insurer licence referred to in section 4(3)(d); \u201ccontract\u201d includes a policy; \u201ccourt\u201d means the Grand Court or a court of summary jurisdiction; \u201cdomestic business\u201d means insurance business where the contract is in respect of the life, safety, fidelity or insurable interest, other than in respect of property, of a person who at the time of effecting the contract is ordinarily resident in the Islands, or property that at the time of effecting the contract is in the Islands or, in the case of a vehicle, vessel or aircraft, or other movable property is ordinarily based in the Islands; \u201cexternal insurer\u201d means a class A insurer who is not a local insurer and whose principal or registered office is in a jurisdiction outside the Islands Insurance Law, 2010 Law 32 of 2010 where the legislation for the regulation and supervision of insurers is acceptable to the Authority; \u201cfinancial year\u201d means an annual period in respect of which financial statements are prepared; \u201cgeneral business\u201d means insurance business other than long term business; \u201cgeneral insurer\u201d means an insurer carrying on general business; \u201cinsurance agent\u201d means a holder of a valid insurance agent licence referred to in section 4(3)(e); \u201cinsurance broker\u201d means a holder of a valid insurance broker licence referred to in section 4(3)(f); \u201cinsurance business\u201d means the business of accepting risks by effecting or carrying out contracts of insurance, whether directly or indirectly, and includes running-off business including the settlement of claims; \u201cinsurance group\u201d means a group that includes an insurer\u2019s subsidiaries, holding company, companies related to the insurer through common ownership or control or which have a majority of common senior management or directors; \u201cinsurance manager\u201d means a holder of a valid insurance manager licence referred to in section 4(3)(g); \u201cinsurer\u201d means a person who is \u2014 (a) licensed under section 4(3)(a), (b), (c) or (d) to carry on insurance business; or (b) an association of individual underwriters including Lloyd\u2019s of London and other associations of underwriters recognised by the Authority for the purposes of section 18 or 31; \u201clicence\u201d means a licence granted under this Law; \u201clicensee\u201d means the holder of a valid licence granted under section 4; \u201clinked policies\u201d means contracts of insurance on human life or contracts to pay annuities on human life where the benefits are wholly or partly to be determined by reference to the value of, or the income from, property of any description, whether or not specified in the contracts, or fluctuations in, or an index of, the value of property of any description, whether or not so specified; \u201clocal insurer\u201d means a class A insurer, incorporated in and having its place of business in the Islands; \u201clong term insurer\u201d means an insurer carrying on long term business; \u201clong term business\u201d means insurance business involving the making of contracts of insurance \u2014 Insurance Law, 2010 Law 32 of 2010 (a) on human life or contracts to pay annuities on human life, including linked policies, but excluding contracts for credit life insurance and term life insurance other than convertible and renewable term life contracts; (b) against risks of the persons insured \u2014 (i) sustaining injury as the result of an accident or of an accident of a specified class; (ii) dying as the result of an accident or of an accident of a specified class; or (iii) becoming incapacitated in consequence of disease or diseases of a specified class, being contracts that are expressed to be in effect for a period of not less than five years or without limit of time and either not expressed to be terminable by the insurer before the expiration of five years from the taking effect thereof or expressed to be so terminable before the expiration of that period only in special circumstances therein mentioned; and (c) whether by bonds, endowment certificates or otherwise whereby in return for one or more premiums paid to the insurer a sum or series of sums is to become payable to the person insured in the future, not being contracts falling within paragraph (a) or (b); \u201cmargin of solvency\u201d means the excess of the value of prescribed assets over prescribed liabilities; \u201cpolicyholder\u201d means the person with whom an insurer has effected a contract of insurance; \u201cproceeds\u201d means monies, benefits in kind and cash values payable under a contract of insurance or reinsurance and includes any assets acquired with the same; \u201creinsurance business\u201d means the business of accepting risks by effecting or carrying one or more contracts of reinsurance whether directly or indirectly, and includes running-off business including the settlement of claims; \u201crelated business\u201d in the context of section 4(3)(b) means business which will originate from the insurer\u2019s members or the members of any group with which it is related through common ownership or a common risk management plan, or as determined by the Authority; \u201cRegulations\u201d means Regulations made under this Law; and \u201crepealed Law\u201d means the Insurance Law (2008 Revision). (2) For the purposes of this Law \u2014 (a) in determining whether a person is a fit and proper person, the Authority shall have regard to all circumstances, including that person\u2019s \u2014 (i) honesty, integrity and reputation; Insurance Law, 2010 Law 32 of 2010 (ii) competence and capability; and (iii) financial soundness; and (b) in determining whether a person (\u2018A\u2019) controls another person (\u2018B\u2019), the Authority shall have regard to whether one or more of the following are met \u2014 (i) \u2018A\u2019, either directly or indirectly, holds ten per cent or more of the issued share capital in \u2018B\u2019; (ii) \u2018A\u2019 is entitled either directly or indirectly to exercise or control the exercise of ten per cent or more of the total voting rights in \u2018B\u2019; (iii) \u2018A\u2019 has the power to appoint or remove directors of \u2018B\u2019; (iv) \u2018A\u2019 is the most senior officer responsible for the operations of \u2018B\u2019; and (v) \u2018A\u2019 is a person on whose instructions or directions the directors of \u2018B\u2019 either directly or indirectly are accustomed to act. PART 2 - LICENSING\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_3\", \"num\": \"3.\", \"text\": \"Requirement for licence 3. (1) Subject to subsection (3), a person shall not carry on \u2014 (a) insurance business; (b) reinsurance business; or (c) business as an insurance agent, insurance broker, or insurance manager, unless that person holds a valid licence issued for that purpose under this Law. (2) A person who contravenes subsection (1) commits an offence and is liable on summary conviction to a fine of one hundred thousand dollars or to imprisonment for a term of five years, or to both. (3) For the purposes of this Law, a person shall not be considered to be carrying on insurance business solely by reason of the fact that the person effects or carries out a contract of reinsurance with an insurer in the Islands, unless the person\u2019s principal place of business is in the Islands.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_4\", \"num\": \"4.\", \"text\": \"Licences 4. (l) A person desiring to carry on \u2014 (a) insurance business; (b) reinsurance business; or (c) business as an insurance agent, insurance broker or insurance manager, Insurance Law, 2010 Law 32 of 2010 in or from within the Islands shall make an application in writing to the Authority for the grant of a licence under one or more of the categories set out in subsection (3). (2) An application under subsection (1) shall contain the information prescribed and shall be accompanied by \u2014 (a) a business plan containing the details prescribed; and (b) the prescribed application fee, and the Authority, if satisfied pursuant to subsection (5), may approve the application and business plan and grant a licence, subject to such conditions as determined by the Authority for the proper operation and supervision of the licensee. (3) Subject to subsection (4), the categories of licences which may be granted by the Authority are \u2014 (a) class A insurer licence, for carrying on of domestic insurance business by a local insurer or external insurer, or limited reinsurance business as approved by the Authority; (b) class B insurer licence, for the carrying on of insurance business other than domestic business in respect of which \u2014 (i) at least ninety-five per cent of the net premiums written will originate from the insurer\u2019s related business; (ii) over fifty per cent of the net premiums written will originate from the insurer\u2019s related business; or (iii) fifty per cent or less of the net premiums written will originate from the insurer\u2019s related business; (c) class C insurer licence, for the carrying on of insurance business involving the provision of reinsurance arrangements in respect of which the insurance obligations of the class C insurer are limited in recourse to and collateralised by the class C insurer\u2019s funding sources or the proceeds of such funding sources which include the issuance of bonds or other instruments, contracts for differences and such other funding mechanisms approved by the Authority; (d) class D insurer licence, for the carrying on of reinsurance business and such other business as may be approved in respect of any individual licence by the Authority; (e) insurance agent licence for the soliciting of domestic business on behalf of not more than one general insurer and one long term insurer; (f) insurance broker licence for arranging or procuring, directly or through representatives, insurance or reinsurance contracts or the continuance of such contracts on behalf of existing or prospective policyholders; and Insurance Law, 2010 Law 32 of 2010 (g) insurance manager licence for providing insurance expertise to or for class B insurers or class C insurers. (4) A licensee shall be subject to the following conditions \u2014 (a) an insurance broker shall not hold any other licence under this Law except an insurance manager licence; (b) an insurer that is not a class D insurer and not a class B insurer incorporated as a segregated portfolio company under Part XIV of the Companies Law (2010 Revision) must be separately licensed for long term business and for general business; (c) only a person incorporated under the Companies Law (2010 Revision) and that has a minimum of two directors may be licensed as an insurance broker, insurance manager, a class A insurer that is a local insurer or a class D insurer; (d) an insurance manager who also carries on business as either an insurance broker or an insurance agent is required to be separately licensed in respect of each such activity; (e) an insurance agent who acts on behalf of more than one long term and one general insurer is to be taken for the purposes of this Law to be acting as an insurance broker; (f) only a person incorporated as an exempted company under the Companies Law (2010 Revision) and that has at least two directors may be licensed as a class B insurer or a class C insurer; (g) a class B insurer may carry on domestic business where such business forms less than five per cent of net premiums written or where the Authority has otherwise granted prior approval which may be reviewed by the Authority at such intervals as the Authority considers appropriate; and (h) an employee of an insurer does not require an insurance agent licence to solicit of domestic business on behalf of the insurer. (5) The Authority shall not grant a licence unless it is satisfied that \u2014 (a) the business to which the application relates would be carried on by persons who are fit and proper persons to be directors, managers or officers in their respective positions; (b) the applicant will be able to comply with the requirements of this Law and the Regulations and with the Money Laundering Regulations (2009 Revision); (c) it will not be against the public interest; (d) the applicant has personnel with the necessary skills, knowledge and experience and such facilities and such books and records as the Insurance Law, 2010 Law 32 of 2010 Authority considers appropriate, having regard to the nature and scale of the business; (e) the structure of the applicant\u2019s insurance group, if any, will not hinder effective supervision; and (f) the applicant\u2019s capital complies with the prescribed level. (6) A licensee who is an insurance broker, an insurance manager, a class A insurer or a class D insurer shall have a place of business in the Islands. (7) The Authority shall cause notice of each licence granted under this section to be published in the Gazette.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_5\", \"num\": \"5.\", \"text\": \"Validity of transactions by unlicensed persons 5. An insurance contract, transaction, obligation or instrument entered into by any person, whether before or after the commencement of this Law, shall not be rendered void or unenforceable merely because it is entered into in connection with insurance business carried on by a person in contravention of section 3(1).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_6\", \"num\": \"6.\", \"text\": \"Requirement for an insurance manager 6. A class B insurer or a class C insurer, unless it maintains permanently a place of business approved by the Authority, shall appoint an insurance manager in the Islands and maintain, at the insurance manager\u2019s place of business or at another location approved by the Authority, full and proper records of the business activities of the class B insurer or class C insurer, sufficient to \u2014 (a) explain the transactions of the class B insurer or class C insurer; (b) disclose, with reasonable accuracy, at any time the state of the affairs of the class B insurer or class C insurer; and (c) enable the class B insurer or class C insurer to prepare annual financial statements.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_7\", \"num\": \"7.\", \"text\": \"Licence renewal fees 7. (1) A licensee shall on or before every 15th day of January after the first grant of the licence, pay the prescribed annual fee in respect of each category of licence held. (2) A licensee who fails to pay the prescribed annual fee by the date specified in subsection (1) shall, unless the Authority waives the same, pay to the general revenue of the Islands, a surcharge not exceeding one-twelfth of the prescribed annual fee for every month or part of a month that the prescribed annual fee is not paid. (3) If the prescribed annual fee referred to in subsection (1) is not paid, the unpaid prescribed annual fee may be sued for by the Authority by action as a civil debt and the Authority may require, and the court may order, the payment of Insurance Law, 2010 Law 32 of 2010 any surcharge accrued under subsection (2) in respect of the late payment of the prescribed annual fee. PART 3 - OBLIGATIONS OF LICENSEES\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_8\", \"num\": \"8.\", \"text\": \"Continuing obligations 8. (1) A licensee \u2014 (a) shall carry on insurance business only in accordance with the information given in its approved licence application and business plan and shall seek the prior written approval of the Authority for any change to the approved business plan or in the information supplied in the application; (b) shall not, without the prior written approval of the Authority \u2014 (i) open outside the Islands a subsidiary, branch, agency or representative office or change its name; or (ii) where it is an insurer, other than an external insurer, conducting insurance business other than long term business, amalgamate with any one or more insurers or, other than in the normal course of business, transfer its insurance operations or any part thereof, or accept transfer of the insurance operations or any part thereof from another insurer; and (c) that is required to have a place of business in the Islands shall maintain in the Islands such resources, including staff and facilities, books and records as the Authority may consider appropriate, having regard to the nature and scale of the business. (2) An insurer shall \u2014 (a) maintain a margin of solvency in accordance with the prescribed solvency requirements; (b) maintain adequate arrangements for the management of risks, including the reinsurance thereof where appropriate; (c) maintain capital in accordance with the prescribed capital requirements; (d) authorize at least one person resident in the Islands and approved by the Authority to accept on its behalf service of process in any legal proceedings and any notices required to be served on it; (e) where it is a member of an insurance group, inform the Authority of any activity or transaction undertaken or proposed by another member of the group that could reasonably be expected to have a material effect on the insurer; Insurance Law, 2010 Law 32 of 2010 (f) where it is an external insurer, be responsible for all contracts of domestic business issued by any branch or subsidiary and also for all acts, omissions and liabilities of such branch or subsidiary activity; and (g) maintain an effective system of governance as approved by the Authority. (3) An insurance agent, insurance broker or an insurance manager shall establish and maintain a separate account for the brokerage, agency and management account separate from the accounts maintained for each insurer. (4) A class B insurer that is established as a segregated portfolio company under Part XIV of the Companies Law (2010 Revision) shall, in respect of each segregated portfolio \u2014 (a) maintain the prescribed margin of solvency; (b) unless waived by the Authority, comply with section 9(1)(a) and (c); and (c) cause each submission under paragraph (b) to be prepared using the same financial year end.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_9\", \"num\": \"9.\", \"text\": \"Returns required of insurer 9. (1) An insurer shall, except as otherwise approved by the Authority in writing and subject to subsection (3), submit to the Authority by way of annual return, within six months of the end of its financial year \u2014 (a) audited financial statements prepared in accordance with internationally recognised accounting standards by an independent auditor approved by the Authority, together with a copy of any prescribed management letter issued by the auditor; (b) an actuarial valuation of its assets and liabilities including loss and loss expense provisions, certified by an actuary approved by the Authority; (c) certification of solvency prepared by a person approved by the Authority in accordance with the prescribed requirements; (d) written confirmation that the information set out in the application for the licence, as modified by any subsequent changes approved by the Authority, remains correct; and (e) such other information as may be prescribed. (2) A class A insurer shall, except as otherwise approved in writing by the Authority, submit in the return under subsection (1), a list of insurance agents and insurance brokers who have the class A insurer\u2019s authority to solicit domestic business on its behalf, and confirmation that the class A insurer is satisfied that the agents are fit and proper persons and have complied with the applicable requirements under this Law. (3) The following exemptions apply to the requirements of subsection (1) \u2014 Insurance Law, 2010 Law 32 of 2010 (a) a class C insurer or a class B insurer that does not write long term business is not required to make submissions under subsection (1)(b) or (c); and (b) the Authority may in writing exempt other classes of insurer from the requirement under subsection (1)(b) where it considers it appropriate, based on the nature, scale or scope of the insurance business involved. (4) The audited financial statements and actuarial valuation referred to in subsection (1)(a) and (b) shall disclose the standards applied and \u2014 (a) a class A insurer or class D insurer shall publish its audited financial statements at a time no later than the time that it submits them to the Authority; and (b) a class B(iii) insurer shall make its audited financial statements available to insured persons, third party beneficiaries, and such other persons as may be prescribed, on request.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_10\", \"num\": \"10.\", \"text\": \"Returns required of insurance broker and insurance manager 10. (1) Except as otherwise approved by the Authority in writing, an insurance broker or an insurance manager shall submit to the Authority by way of annual return, within six months of the end of its financial year \u2014 (a) financial statements prepared in accordance with internationally recognised accounting standards; (b) written confirmation that the information set out in the licence application, as modified by any subsequent changes approved by the Authority, remains correct; (c) evidence of adequate professional indemnity insurance as required under section 13; and (d) such other information as may be prescribed. (2) In addition to the submissions required under subsection (1), except as otherwise approved in writing by the Authority \u2014 (a) an insurance broker shall in respect of domestic business submit a list of all insurers for whom the insurance broker is authorised to act, commissions received from each insurer and the premium income received on behalf of and remitted to each such insurer during the financial year; and (b) an insurance manager shall submit a list of all insurers for whom the insurance manager acts. Insurance Law, 2010 Law 32 of 2010\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_11\", \"num\": \"11.\", \"text\": \"Returns required of insurance agent 11. Except as otherwise approved by the Authority, in writing, an insurance agent shall submit to the Authority by way of annual return within six months of the end of the calendar year, in respect of his domestic business \u2014 (a) confirmation in writing that the insurance agent is acting for no more than two insurers and the names of those insurers; (b) evidence of the existence of a power of attorney, agency agreement or guarantee or professional indemnity insurance as required under section 14; and (c) confirmation in writing that the information set out in the insurance agent\u2019s application for the licence, as modified by any subsequent changes approved by the Authority, remains correct.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_12\", \"num\": \"12.\", \"text\": \"Shares not to be issued or transferred without Authority\u2019s approval 12. (1) Shares totalling more than ten per cent of the authorised share capital of a company that is a licensee under this Law shall not be issued, and issued shares totalling more than ten per cent of the issued share capital or total voting rights of a company that is a licensee under this Law shall not be transferred or disposed of in any manner, without the prior approval of the Authority. (2) For the purposes of subsection (1), the licensee shall provide such information to the Authority, and within such period of time, as the Authority may require for the purpose of assessing whether persons acquiring control or ownership of such shares or voting rights in the licensee are fit and proper persons to have such control or ownership. (3) The Authority may exempt from subsection (1) a licensee whose shares or the shares of whose parent body, if any, are publicly traded on a stock exchange recognised by the Authority, and any such exemption \u2014 (a) shall be subject to a condition that the licensee shall, as soon as reasonably practicable, notify the Authority of \u2014 (i) any change in control of the licensee; (ii) the acquisition by any person or group of persons of shares representing more than ten per cent of the licensee\u2019s issued share capital or total voting rights; or (iii) the acquisition by any person or group of persons of shares representing more than ten per cent of the issued share capital or total voting rights of the licensee\u2019s parent company; (b) shall be subject to a condition that the licensee shall, as soon as reasonably practicable, provide such information to the Authority, and within such period of time, as the Authority may require for the purpose Insurance Law, 2010 Law 32 of 2010 of assessing whether persons acquiring control or ownership of the licensee in the circumstances set out in paragraph (a) are fit and proper persons to have such control or ownership; and (c) shall be subject to such terms and conditions as the Authority may consider necessary. (4) In subsection (1), the reference to shares being transferred or disposed of includes the transfer or disposal of the legal interest in the shares and the transfer or disposal of any beneficial interest in the shares. (5) For the avoidance of doubt and for the purpose of issuing or transferring of issued shares or voting rights in this section, the references to shares totalling more than ten per cent includes cumulative acquisition of shares or voting rights less than ten per cent which amount to more than ten per cent of the authorized share capital of a company.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_13\", \"num\": \"13.\", \"text\": \"Insurance broker or insurance manager to carry professional indemnity insurance 13. (1) Except as otherwise approved by the Authority, an insurance broker or insurance manager shall maintain in force, and comply with the conditions of cover of, professional indemnity insurance placed with an insurer licensed to carry on domestic business or an insurer accorded special dispensation under section 18. (2) The professional indemnity insurance required under subsection (1) shall \u2014 (a) provide for an indemnity of not less than eight hundred and twenty thousand dollars for any one loss, or such other figure as may be specified by the Authority; (b) extend to include the activities conducted on behalf of the broker or insurance manager; and (c) be subject to review by the Authority. (3) In the event that the professional indemnity insurance required under subsection (1) is invalidated, becomes voidable or is withdrawn, cancelled or not renewed, the licensee shall immediately notify the Authority and shall forthwith cease to solicit further insurance business until such professional indemnity insurance has been reinstated or replaced.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_14\", \"num\": \"14.\", \"text\": \"Power of attorney, agency agreement, guarantee or indemnity insurance 14. (1) An insurance agent shall provide evidence satisfactory to the Authority of a power of attorney, agency agreement or guarantee satisfactory to the Authority, between the insurance agent and the insurer for whom the insurance agent acts. Insurance Law, 2010 Law 32 of 2010 (2) A power of attorney, agency agreement or guarantee provided under subsection (1) shall extend to include activities conducted on behalf of the insurer by the insurance agent. (3) In the event that a power of attorney, agency agreement or guarantee provided under subsection (1) is withdrawn or determined, the insurance agent shall forthwith notify the Authority and shall forthwith cease to solicit further insurance business until the power of attorney, agency agreement or guarantee has been reinstated. (4) An insurance agent may, as an alternative to meeting the requirement laid down in subsection (1), maintain in force professional indemnity insurance in accordance with the requirements and for the amount specified in section 13.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_15\", \"num\": \"15.\", \"text\": \"Trust funds 15. (1) Except as otherwise approved by the Authority, an external insurer that carries out domestic business shall, at all times, place and maintain upon trust, with a person approved by the Authority, in a segregated account at a bank in the Islands which holds an \u201cA\u201d licence issued under the Banks and Trust Companies Law (2009 Revision), funds as approved by the Authority in respect of its \u2014 (a) general business; and (b) long term business. (2) Trust funds placed and maintained under subsection (1) shall be held under a trust deed approved by the Authority, which shall provide that \u2014 (a) the funds are exclusively to be used to discharge the external insurer\u2019s obligations to policyholders, and for no other purpose; and (b) the funds are not to be made the subject of any charge, security interest, mortgage, trust, assignment, lien or other dealing, and except with the written consent of the Authority, any distribution, dealing or undertaking entered into in contravention of paragraphs (a) or (b) shall be void. (3) An external insurer shall \u2014 (a) provide, within two months of the end of its financial year, a report to the Authority in the prescribed form confirming the placement or maintenance of the funds approved by the Authority under subsection (1); and (b) if the funds held in trust under subsection (1) fall below the prescribed level, notify the Authority of the fact within seven working days, together with its proposed remedial actions, for the approval of the Authority. Insurance Law, 2010 Law 32 of 2010\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_16\", \"num\": \"16.\", \"text\": \"Separate accounts for long term and general business 16. (1) A class D insurer carrying on both long term business and general business shall keep separate accounts in respect of its long term business. (2) All receipts of funds in respect of the class D insurer\u2019s long term business shall be placed in a separate long term business account, and payments from that account shall not be made directly or indirectly for any purpose other than those of the class D insurer\u2019s long term business attributable to that account, except insofar as the payments can be made out of any surplus disclosed on an actuarial valuation and certified by an actuary approved by the Authority to be distributable otherwise than to policyholders. (3) An insurer that issues linked policies shall keep a separate account in respect of its linked policies and shall maintain sufficient records to identify the assets and liabilities of that account. (4) A licensee that issues linked policies shall establish and maintain one or more funds consisting of assets that are segregated from the other assets of the licensee and that are specified as the assets on the market value of which the liabilities of the licensee in respect of those linked policies or amounts depend.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_17\", \"num\": \"17.\", \"text\": \"Further provisions relating to long term business accounts 17. A class A insurer, class B insurer or class D insurer carrying on long term business may establish any number of separate accounts in respect of contracts to pay annuities on human life and contracts of insurance on human life, the assets relating to which shall be kept segregated one from the other and independent of all other assets of the insurer, and \u2014 (a) separate accounts shall not be chargeable with any liability arising from any other business, including other types of long term business, of the insurer and no liabilities shall be satisfied out of the assets standing to the credit of the relevant separate account apart from those liabilities arising from the contract for which the separate account was established or liabilities relating specifically to the operation of the separate account; (b) subject to paragraph (a), the assets of a separate account shall include all premiums paid with respect to the contract for which the separate account was established and all interest, earnings and assets derived from the premiums; and (c) any claim of the insurer under a contract of reinsurance taken out by the insurer in respect of a contract for which a separate account has been established shall be deemed to be an asset of the relevant separate account to the extent only that the insurer fails to meet its obligations under the relevant contract and upon payment of any amount due under the contract of reinsurance shall be immediately credited to the relevant separate account, whether the insurer is solvent or not. Insurance Law, 2010 Law 32 of 2010\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_18\", \"num\": \"18.\", \"text\": \"Dispensations to broke business from unlicensed insurers 18. (1) The Authority may grant a special dispensation to an insurance broker to place a contract of domestic business with one or more insurers that are not licensed under this Law where \u2014 (a) the insurers have not been refused a licence under this Law; and (b) the Authority is satisfied that \u2014 (i) the insurers are fit and proper; (ii) the proposed volume of domestic business to be placed with the insurers is inadequate to support the payment of licence fees for a class A insurer licence, or that some other good and sufficient reason exists; and (iii) there is an evident need on the part of the insurance broker, in terms of additional capacity or policy coverage, or otherwise, that the business be so placed. (2) A dispensation under subsection (1) shall be subject to review at such intervals as the Authority may specify. (3) The insurers in respect of whom a dispensation under subsection (1) has been granted shall nominate at least one person resident in the Islands and approved by the Authority who is authorised to accept on its behalf service of process in any legal proceedings and any notices to be served. (4) An insurance broker who has not been granted a special dispensation under subsection (1) shall be personally liable to the insured on all contracts of insurance placed with insurers not licensed under this Law, in the same manner as if the insurance broker were the insurer.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_19\", \"num\": \"19.\", \"text\": \"Regulation of agreements between insurance brokers and insurers 19. (1) Subject to subsection (2), an insurance broker shall not enter into a binding authority with an insurer other than a class D insurer. (2) The Authority may grant a dispensation for a fixed period to an insurance broker, despite the duty of the insurance broker to act for the prospective insured, to enter into a binding authority with an insurer if it is satisfied that the insurance broker needs, in terms of additional capacity, policy coverage, cost savings or otherwise, the binding authority to be permitted. (3) An application for a dispensation shall be in writing and shall be accompanied by such additional information as the Authority may require. (4) A dispensation granted under this section shall be subject to any conditions that the Authority sees fit, including restrictions to lines of business, specific contracts, types of client and requirements for disclosure and review at such intervals as the Authority may specify. Insurance Law, 2010 Law 32 of 2010 (5) An unlicensed insurer with whom a broker can place insurance business pursuant to a dispensation granted under this section shall not by virtue of that fact be regarded as carrying on insurance business in or from within the Cayman Islands.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_20\", \"num\": \"20.\", \"text\": \"Duties of auditor 20. (1) If an auditor, in the course of carrying out an audit of the accounts of a licensee under this Law, obtains information or suspects that the licensee is \u2014 (a) unable or likely to become unable to meet its obligations as they fall due; (b) carrying on or attempting to carry on business or winding up its business voluntarily in a manner that is prejudicial to its policyholders or creditors; (c) carrying on or attempting to carry on business without keeping any or sufficient accounting records to allow its accounts to be properly audited; (d) carrying on or attempting to carry on business in a fraudulent or criminal manner; or (e) carrying on or attempting to carry on business otherwise than in compliance with \u2014 (i) this Law or the Regulations; (ii) the Monetary Authority Law (2008 Revision); (iii) the Money Laundering Regulations (2009 Revision); or (iv) a condition of the licence, the auditor shall immediately give the Authority written notice of his information or suspicion and, in the case of suspicion, his reason for that suspicion. (2) Without prejudice to subsection (8), if it appears to the Authority that an auditor has failed to comply with subsection (1), the Authority may disqualify him from being an auditor of a licensee, but the Authority may remove any disqualification imposed under this subsection if satisfied that the person in question will in future comply with subsection (1). (3) A licensee shall not appoint as an auditor a person disqualified under subsection (2). (4) Where the Authority has granted approval of an auditor under this Law, the approval may be revoked by the Authority if the Authority is of the opinion that the auditor is not sufficiently competent to carry out an audit of the accounts of a licensee or that, in all the circumstances, the auditor is incapable of carrying out the audit objectively. (5) When a licensee changes its auditor, the Authority may require the former auditor to explain the reasons for the change. Insurance Law, 2010 Law 32 of 2010 (6) A person carrying out or charged with the carrying out of any duty, obligation or function under this section shall not incur civil liability to any other person for anything done or omitted to be done in respect of the discharge or purported discharge of that duty or function unless it is shown that the act or omission concerned was in bad faith. (7) A reference in this section to an auditor carrying out an audit of the accounts of a licensee includes a reference to an auditor who was engaged to carry out such an audit or who was in the course of carrying out such an audit but resigned before carrying out or completing the audit or whose contract to carry out or complete the audit was otherwise terminated. (8) Nothing in subsection (1) shall impose on an auditor carrying out an audit of the accounts of a licensee an obligation to do anything that the auditor would not otherwise be required to do in accordance with generally accepted auditing standards, other than the obligation to provide notice and reasons to the Authority. (9) A person who contravenes subsection (1) commits an offence and liable on summary conviction to a fine of one hundred thousand dollars or to imprisonment for a term of five years, or to both.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_21\", \"num\": \"21.\", \"text\": \"Insurance managers 21. (1) An insurance manager shall use his best endeavours to manage insurance business only for fit and proper insurers. (2) If the insurance manager, in respect of any insurer for or with whom the insurance manager is managing insurance business \u2014 (a) has concerns regarding the fitness and probity of the insurer; (b) obtains information or suspects that the insurer is unable or likely to become unable to meet its obligations as they fall due; (c) obtains information or suspects that the insurer is carrying on or attempting to carry on business in a fraudulent or criminal manner; (d) obtains information that the insurer is involved in any criminal proceedings, whether in the Islands or abroad; (e) obtains information about a material change in the nature of the insurer\u2019s business that has not been reported to the Authority; (f) in relation to a class B(i) insurer or class B(ii), obtains information that the limit on unrelated business is exceeded; or (g) obtains information or suspects that the insurer is carrying on or attempting to carry on business otherwise than in compliance with \u2014 (i) this Law or the Regulations; (ii) the Monetary Authority Law (2008 Revision); Insurance Law, 2010 Law 32 of 2010 (iii) the Money Laundering Regulations (2009 Revision); or (iv) a condition of its licence, the insurance manager shall report the same forthwith to the Authority. (3) A person carrying out or charged with the carrying out of any duty, obligation or function under this section shall not be liable in damages for anything done or omitted in the discharge or purported discharge of that duty, obligation or function under this section unless it is shown that the act or omission was in bad faith. (4) If either party to an agreement relating to representation between an insurer and an insurance manager intends to terminate the agreement, the party shall give sixty days written notice of the proposed termination to the Authority unless the Authority waives the requirement in writing. PART 4 - POWERS AND DUTIES OF THE AUTHORITY\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_22\", \"num\": \"22.\", \"text\": \"Duties of the Authority 22. (1) It is the duty of the Authority \u2014 (a) to maintain a general review of insurance business in the Islands; (b) from time to time to examine by way of scrutiny of regular returns, onsite inspections or auditors\u2019 reports, or in such other manner as the Authority may determine, the affairs or business of any licensee or other person carrying on, or who has at any time carried on, insurance business, for the purpose of a general review under paragraph (a) or for the purpose of satisfying itself that this Law or any regulations made under this Law or the Proceeds of Crime Law, 2008 [Law 10 of 2008] are being complied with and that the licensee is carrying on business in a fit and proper manner; (c) to examine the annual returns submitted to the Authority under sections 9, 10 and 11; and (d) to examine and make determinations with respect to \u2014 (i) applications for licences under section 4; (ii) applications for approval of the use of words or representations which require approval under section 36(1); (iii) proposals for the revocation of licences under section 25; (iv) changes under section 8(1)(a); (v) cases of suspected insolvency; (vi) the exercise of powers under section 23 or 24; and (vii) applications for approval of auditors. Insurance Law, 2010 Law 32 of 2010 (2) In the performance of its functions under this Law, the Authority is entitled at all reasonable times \u2014 (a) to have access to such books, records, vouchers, documents, cash and securities of any licensee; and (b) to request any information, matter or thing from any person who it has reasonable grounds to believe is carrying on insurance business in contravention of section 3(1), as the Authority may reasonably require for the purpose of enabling it to perform its functions under this Law. (3) The Authority may take all necessary action to ensure the proper and just implementation of this Law, and may authorize in writing any other person to assist it in the performance of its functions. (4) For the purpose of performing its duties under subsection (1)(b), the Authority may in writing authorize any person, at the expense of the licensee, to examine the affairs or business of any licensee or other person carrying on insurance business and to report to the Authority the results of the examination. (5) Where the Authority considers it necessary for the proper supervision of a licensee, the provisions of subsections (1)(b) and (2) may be applied to activities or transactions of any member of the licensee\u2019s insurance group.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_23\", \"num\": \"23.\", \"text\": \"Directions by the Authority 23. (1) Where the Authority is of the opinion that a licensee \u2014 (a) is committing, or about to commit, an act that is an unsafe or unsound practice in conducting the business of the licensee; or (b) is pursuing or about to pursue, a course of conduct that is an unsafe or unsound practice in conducting the business of the licensee, the Authority may direct the licensee, in relation to a policy, a line of business or the entire business of the licensee, to cease or refrain from committing the act or pursuing the course of conduct and to perform such acts as in the opinion of the Authority are necessary to remedy or ameliorate the situation. (2) A person, who without reasonable cause, fails to comply with a direction given by the Authority under subsection (1) commits an offence and is liable \u2014 (a) on summary conviction to a fine of one hundred thousand dollars or to imprisonment for a term of five years or to both; and (b) on conviction on indictment to a fine of five hundred thousand dollars or to imprisonment for a term of ten years or to both, and if the offence of which he is convicted is continued after conviction he commits a further offence and is liable to a fine of ten thousand dollars for every day on which the offence is so continued. Insurance Law, 2010 Law 32 of 2010 (3) The provisions of this section may be applied to a segregated portfolio within a segregated portfolio company that is licensed under this Law.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_24\", \"num\": \"24.\", \"text\": \"Powers of the Authority 24. (1) The Authority may immediately do any of the things provided in subsection (2), where the Authority is of the opinion that \u2014 (a) a licensee is or appears likely to become unable to meet its obligations as they fall due; (b) a licensee is carrying on business in a manner detrimental to the public interest or to the interest of its creditors or policy holders; (c) the activities of any member of the licensee\u2019s insurance group are detrimental to the interest of the licensee\u2019s creditors or policy holders; (d) a licensee has contravened this Law or the Money Laundering Regulations (2009 Revision); (e) a licensee has failed to comply with a condition of its licence or with section 8(2); (f) the direction and management of a licensee\u2019s business has not been conducted in a fit and proper manner; (g) a person holding a position as a director, manager or officer of a licensee\u2019s business is not a fit and proper person to hold the respective position; or (h) a person holding or acquiring control or ownership of a licensee is not a fit and proper person to have such control or ownership. (2) Where subsection (1) applies, the Authority may do any of the following \u2014 (a) require the licensee immediately to take steps to rectify the matter; (b) suspend the licence of the licensee pending a full enquiry into the licensee\u2019s affairs made under section 22(1)(b); (c) revoke the licence; (d) impose conditions with respect to decisions made by the licensee including the suspension of voting rights or nullification of votes cast; (e) impose conditions, or further conditions, upon the licence and amend or revoke any such condition; (f) require the substitution or removal of any director, manager or officer of the licensee; (g) at the expense of the licensee, appoint a person to advise the licensee on the proper conduct of its affairs; (h) at the expense of the licensee, appoint a receiver or person to assume control of the licensee\u2019s affairs who shall have all the powers necessary Insurance Law, 2010 Law 32 of 2010 to administer the affairs of the licensee including power to terminate the insurance business of the licensee; and (i) require such action to be taken by the licensee as the Authority considers necessary. (3) Notwithstanding section 34(1), a licensee may, within seven days of the decision, apply to the Authority for a reconsideration of its decision to revoke a licence under subsection (2)(c). (4) A person appointed in respect of a licensee under subsection (2)(g) or (h) shall \u2014 (a) when requested to do so by the Authority, supply the Authority with such information in respect of the licensee as is specified by the Authority; (b) within three months of his appointment, or within such other period as the Authority may specify, prepare and supply to the Authority a report on the affairs of the licensee making, where appropriate, recommendations in respect of the licensee; and (c) if his appointment is not terminated after supplying the report referred to in paragraph (b), subsequently supply to the Authority such other information, reports and recommendations as the Authority specifies. (5) On receipt of a report under subsection (4), the Authority may \u2014 (a) revoke the appointment of the person appointed under subsection (2)(g) or (h); (b) extend the period of his appointment; (c) subject to such conditions as the Authority may impose, allow the licensee to reorganise its affairs in a manner approved by the Authority; (d) revoke the licence; or (e) apply to the Grand Court for an order that the licensee be forthwith wound up by that Court in which case the provisions of the Companies Law (2010 Revision) relating to the winding up of a company by that Court shall apply. (6) The Authority may revoke a licence if the licensee \u2014 (a) has ceased to carry on insurance business; or (b) goes into liquidation or is wound up or otherwise dissolved. (7) Where the Authority suspends a licence under subsection (2)(b) or revokes a licence under subsection (2)(c), subsection (5)(d) or subsection (6), the Authority shall cause notice of the suspension or revocation to be published in the Gazette, and may also cause the notice to be published, whether within the Islands or elsewhere, in such newspaper or other publication as the Authority may consider necessary in the circumstances. Insurance Law, 2010 Law 32 of 2010 (8) The provisions of this section may be applied to a segregated portfolio within a segregated portfolio company that is licensed under this Law.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_25\", \"num\": \"25.\", \"text\": \"Avoidance of confusion of names 25. The Authority may revoke the licence of a licensee who carries on insurance business or acts as an insurance agent, an insurance broker or an insurance manager under a name which \u2014 (a) is identical with that of any other person, company, firm or business whether within the Islands or not, or which so nearly resembles that name as to be calculated to deceive; (b) is calculated falsely to suggest the patronage of or connection with some person of authority whether within the Islands or not; (c) is calculated falsely to suggest that the person has a special status in relation to or derived from the Government of the Islands, or has the official backing of or acts on behalf of the Government of the Islands or of any department or official thereof or is recognised in the Islands as a local insurer, insurance agent, insurance broker or insurance manager; or (d) is calculated falsely to suggest that the licensee is carrying on insurance business in a different category from that in respect of which he is licensed.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_26\", \"num\": \"26.\", \"text\": \"Preservation of assets, etc. 26. (1) In any case where the Authority has exercised its powers under section 24, the Authority may apply ex parte to the Grand Court for an order that the assets, books or papers of the licensee be preserved, not moved or otherwise disposed of and the Grand Court may, if it is satisfied that the assets, books or papers are liable to be moved, destroyed or otherwise disposed, of make an order that they shall be preserved, and not be moved or otherwise disposed of until a further order of that Court. (2) Where an order has been made by the Grand Court under subsection (1), the licensee may apply to the Grand Court at any time for the discharge of the order and the Grand Court may thereupon discharge, vary or confirm the order.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_27\", \"num\": \"27.\", \"text\": \"Authority may attend winding up proceedings 27. (1) Where a petition for the winding up of a licensee or a person who has at any time been a licensee is presented by a person other than the Authority the petitioner shall serve the Authority with a copy of the petition and the Authority may appear at the hearing of the petition and the provisions of subsections (2) and (3) shall apply. Insurance Law, 2010 Law 32 of 2010 (2) A document which relates to a petition for winding-up and which is required to be sent to any person specified in subsection (1), or to any of his respective creditors, shall also be sent to the Authority. (3) A person appointed for the purpose by the Authority may \u2014 (a) attend a meeting of creditors of a person specified in subsection (1); (b) attend a meeting of a committee established to discuss a compromise or arrangement; and (c) make representations as to any matter for decision at any such meeting.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_28\", \"num\": \"28.\", \"text\": \"Surrender of licence 28. A licensee may apply to the Authority to surrender its licence if it \u2014 (a) has ceased to carry on the business in respect of which the licence was granted and its liability has been extinguished to the satisfaction of the Authority; or (b) is being wound up voluntarily and produces evidence that it is solvent and able forthwith to repay all its creditors, and the Authority may, where an application is made, approve the surrender and cancel the licence and publish the cancellation in the Gazette. PART 5 - MISCELLANEOUS\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_29\", \"num\": \"29.\", \"text\": \"How benefits of insurance policies should inure 29. (1) Subject to subsection (2), all proceeds paid or payable to a policy holder or a beneficiary under a contract of insurance in respect of long term business issued by any insurer shall inure exclusively for the benefit of the policy holder or the beneficiary in accordance with the terms of the contract of insurance and \u2014 (a) shall be protected from the claim of any creditor in bankruptcy, insolvency, administration or similar proceedings relating to any person, whether that person is the policy holder or a beneficiary or whether the claim arose before or after payment under the contract of insurance, unless the contract of insurance was effected for the benefit of the creditor; and (b) shall not be subject to or be otherwise available to meet the claim of any creditor of a person, whether that person is the policy holder or a beneficiary or whether the claim arose before or after payment under the contract of insurance, unless the contract of insurance was effected for the benefit of the creditor. Insurance Law, 2010 Law 32 of 2010 (2) Where premiums are paid by any person to an insurer with intent to defraud a creditor, nothing contained in the Fraudulent Dispositions Law (1996 Revision) shall operate to set aside a payment made under this section and any creditor of the person shall be entitled only to receive out of the proceeds a sum equal to the premiums so paid, together with such interest as the court may order, for the period between payment of the premium and the date of the payment. (3) For the purposes of the application of the Fraudulent Dispositions Law (1996 Revision) to subsection (2) \u2014 (a) the premium or premiums paid under subsection (2) shall be deemed to be dispositions at undervalue; (b) the six-year limitation period in section 4(3) of that Law shall apply to the claim of the creditor but the enforcement of any judgment resulting from the claim shall be permitted against the proceeds outside of any limitation period; and (c) at no time shall the creditor have any right of action or claim against the insurer. (4) This section applies notwithstanding that \u2014 (a) the policy holder reserves a power to nominate or remove one or more other beneficiaries; or (b) the policy holder or the estate of the policy holder is an actual or contingent beneficiary under the contract of insurance. (5) For the purposes of subsection (2), creditor means creditor as defined in section 2 of the Fraudulent Dispositions Law (1996 Revision).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_30\", \"num\": \"30.\", \"text\": \"Effect of payment of proceeds 30. Any payment of proceeds made to a policy holder or beneficiary by the insurer in accordance with this Law and the contract of insurance shall discharge the insurer from any further liability under the relevant contract of insurance and the insurer shall not thereafter be responsible for, or be required to see to, the application of the payment.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_31\", \"num\": \"31.\", \"text\": \"Portfolio transfer 31. (1) A transfer or amalgamation of the whole, or any part, of the long term business of any insurer to another insurer shall only be effected in accordance with the approval of the Authority. (2) An application for approval under subsection (1) shall be accompanied by \u2014 (a) a statement as to the solvency of the transferee; (b) a certified copy of the agreement under which the transfer is to be effected; Insurance Law, 2010 Law 32 of 2010 (c) a report on the terms of the proposed transfer, prepared by a competent professional person approved by the Authority; and (d) satisfactory proof that sufficient notice of the proposed transfer has been served on each policyholder affected and that the notice has been published in local media at least thirty days before the application to the Authority is made. (3) The Authority may approve the proposed transfer as presented or subject to such terms and conditions as it sees fit, having regard to the rights and interests of all policyholders affected by the transfer and all the circumstances of the case. (4) The Authority may impose conditions on applicants under this section and in particular \u2014 (a) for the transfer from the transferor to the transferee of the whole or any part of the undertaking concerned and of any property or liabilities of the transferor concerned; (b) for the allotment or appropriation by the transferee of any shares, debentures, policies or other similar interests in the transferee which under the scheme are to be allotted or appropriated to or for any other person; (c) for the transfer of property or liabilities whether or not the transferor concerned otherwise has the capacity to effect the transfer in question; (d) in relation to property held by the transferor as trustee; (e) in relation to future or contingent rights or liabilities of the transferor; and (f) for securing the effective transfer to the transferee of any property or liabilities, that is the subject of the transfer, situated in or governed by the law of any jurisdiction outside of the Islands. (5) In this section \u2014 \u201cliabilities\u201d includes duties; \u201cproperty\u201d includes property, rights and powers of any description; \u201ctransferee\u201d means the insurer to whom the long term business of the transferor is transferred; and \u201ctransferor\u201d means the insurers whose long term business is transferred under subsection (1).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_32\", \"num\": \"32.\", \"text\": \"Jurisdiction relating to domestic business 32. Every contract of domestic business shall be subject to the jurisdiction of the courts of the Islands, notwithstanding any provision to the contrary contained in the contract or in any agreement related to the contract. Insurance Law, 2010 Law 32 of 2010\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_33\", \"num\": \"33.\", \"text\": \"Arbitration 33. Where there is no valid arbitration agreement in place and a dispute or difference arises out of or in connection with a contract of domestic insurance, the parties to the dispute or difference shall agree to the appointment of one arbitrator and if the parties are unable to agree the Authority shall appoint an arbitrator and the Arbitration Law (2001 Revision) shall apply with the necessary changes.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_34\", \"num\": \"34.\", \"text\": \"Appeals 34. (1) An appeal shall lie to the Grand Court against any decision of the Authority other than a decision of the Authority to present a winding up petition or to apply for the appointment of a receiver or controller. (2) An appeal under this section shall not operate as a stay of any decision appealed against. (3) The Rules Committee of the Grand Court may make Rules of Procedure governing the conduct of appeals under this section.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_35\", \"num\": \"35.\", \"text\": \"Application, etc. 35. (1) Nothing in this Law derogates from any provision of the Immigration Law (2009 Revision) relating to gainful occupation licences. (2) A person who is licensed under this Law shall not be required to be licensed under the Local Companies (Control) Law (2007 Revision) or the Trade and Business Licensing Law (2007 Revision). (3) This Law has no application to or effect upon \u2014 (a) governmental pension arrangements; (b) the validity of policies of insurance in existence at the date of coming into effect of this Law; (c) the Friendly Societies Law (1998 Revision); or (d) pecuniary loss insurance provided by banks licensed under the Banks and Trust Companies Law (2009 Revision).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_36\", \"num\": \"36.\", \"text\": \"Use of the word \u201cinsurance\u201d, etc. 36. (1) Except with the approval of the Authority or where the person is a licensee, a person shall not \u2014 (a) use or continue to use, in English or in any other language, the words \u201cinsurance\u201d, \u201cassurance\u201d, \u201cindemnity\u201d, \u201cguarantee\u201d, \u201cunderwriting\u201d, \u201creinsurance\u201d, \u201csurety\u201d, \u201ccasualty\u201d or any other word which in the opinion of the Authority connotes insurance business or any of their derivatives in the description or title under which he carries on business in or from within the Islands; or Insurance Law, 2010 Law 32 of 2010 (b) make or continue to make any representation in any billhead, letter, letterhead, circular, paper, notice or advertisement, or by any manner whatsoever, that he is carrying on insurance business. (2) Before giving its approval under subsection (1), the Authority may require of any person such references and such information and particulars as may be prescribed. (3) A person who contravenes subsection (1) commits an offence and is liable on summary conviction to a fine of twenty thousand dollars or to imprisonment for a term of two years, or to both.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_37\", \"num\": \"37.\", \"text\": \"False or misleading information 37. (1) A licensee, applicant for a licence, or any director or officer of a licensee or of an applicant shall not knowingly or wilfully supply false or misleading information to the Authority. (2) A licensee, applicant for a licence, or any director or officer of a licensee or of an applicant who contravenes subsection (1) commits an offence and is liable on summary conviction to a fine of one hundred thousand dollars or to imprisonment for a term of five years, or to both.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_38\", \"num\": \"38.\", \"text\": \"Misleading representations 38. (1) A person shall not knowingly make, issue or permit to be made or issued any representation about or description of his insurance business, by whatever form or method, that is misleading or likely to be misleading to the public. (2) A person who contravenes subsection (1) commits an offence and is liable on summary conviction to a fine of one hundred thousand dollars or to imprisonment for a term of five years, or to both.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_39\", \"num\": \"39.\", \"text\": \"Liability of directors etc., where the offence is committed by a corporation 39. (1) Where an offence under this Law or the Regulations which has been committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of any senior officer of the body corporate, or any person who was purporting to act in such a capacity, he as well as the body corporate is guilty of that offence and is liable to be proceeded against and punished accordingly. (2) In subsection (1), \u201cdirector\u201d, in relation to a body corporate whose affairs are managed by its members, means a member of the body corporate.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_40\", \"num\": \"40.\", \"text\": \"Regulations 40. (1) The Governor in Cabinet may make regulations \u2014 (a) prescribing anything by this Law required to be prescribed; Insurance Law, 2010 Law 32 of 2010 (b) exempting any person or class of persons or business or class of business from any provision of this Law; (c) prescribing forms to be used; (d) prescribing any returns to be made under this Law; (e) prescribing capital and solvency margins and ratios to be maintained by licensees under this Law; (f) prescribing any fees payable; and (g) providing for such matters as may be necessary or convenient for carrying out or giving effect to this Law and its administration. (2) Regulations made under this Law may \u2014 (a) make different provision in relation to different cases or circumstances; (b) apply in respect of particular persons or particular cases or particular classes of persons or particular classes of cases, and define a class by reference to any circumstances whatsoever; or (c) contain such transitional, consequential, incidental or supplementary provisions as appear to the Governor in Cabinet to be necessary or expedient for the purposes of the regulations. (3) Regulations made under this Law may create an offence punishable by a fine not exceeding ten thousand dollars.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_41\", \"num\": \"41.\", \"text\": \"Repeal 41. The Insurance Law (2008 Revision) is repealed.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_42\", \"num\": \"42.\", \"text\": \"Savings, transitional and consequential provisions Schedule 42. (1) The Schedule, which contains specific savings, transitional and consequential provisions, shall have effect. (2) Notwithstanding section 40, the Governor in Cabinet may make regulations to provide for such further savings, transitional and consequential provisions to have effect in connection with the coming into operation of any provision of this Law as are necessary or expedient. (3) Regulations made under subsection (2) may be given retrospective operation to a day not earlier than the day this Law comes into force. (4) Subsections (2) and (3) shall expire one year after they come into force. (5) Regulations made under this section shall be subject to negative resolution. Insurance Law, 2010 SCHEDULE Law 32 of 2010 SCHEDULE (Section 42(1)) SAVINGS, TRANSITIONAL AND CONSEQUENTIAL PROVISIONS Continuance of applications 1. Every application for a licence, dispensation, approval or other matter made under the repealed Law that has not been wholly dealt with by the Authority or other person or body to which it has been made when this Law comes into force shall be taken to be an application made under this Law, and this Law shall apply accordingly. Continuance of civil proceedings pending or in progress 2. Except as otherwise expressly provided in this Law every civil matter and proceeding commenced in any court under the repealed Law and pending or in progress immediately before this Law comes into force may be continued, completed and enforced under this Law. Continuance of criminal proceedings 3. All proceedings in respect of offences committed against the repealed Law may be commenced or continued as if this Law had not come into force. Saving of licences, etc. 4. Subject to paragraph 5, every licence, dispensation, approval or direction made or granted under the repealed Law and in force immediately before this Law comes into force shall continue in force after this Law comes into force on the same conditions and with the same effect as if this Law had not come into force. Implementation of new conditions 5. A licensee existing at the coming into force of this Law who is not in compliance with one or more of the conditions specified in section 4(4) as may be applicable to him shall so comply within eighteen months of the coming into force of this Law or such longer period as the Authority may for good cause shown permit and, if it is applicable, shall comply in the interim with section 8. SCHEDULE Insurance Law, 2010 Law 32 of 2010 Implementation of requirements relating to places of business 6. A licensee existing at the coming into force of this Law who is not in compliance with sections 4(6) and 8(1)(c) shall so comply within eighteen months of the coming into force of this Law. Implementation of insurance conditions 7. An insurance broker or insurance manager who is not fully compliant with the requirements contained in section 10 at the coming into force of this Law or who does not have a business plan approved by the Authority shall comply with those requirements within eighteen months of the coming into force of this Law. Saving forms in use 8. Every form issued or prescribed for use under the repealed Law is to be regarded as issued or approved for use under this Law until another form is issued or prescribed for use under this Law in place of that form. Periods of time 9. Where any period of time specified in the repealed Law is current at the coming unto force of this Law, and there is a corresponding provision in this Law, this Law shall have effect as if that corresponding provision had been in force when that period began to run. Passed by the Legislative Assembly the 15th day of September, 2010. Mary J. Lawrence J.P. Speaker. Zena Merren-Chin Clerk of the Legislative Assembly.\", \"element\": \"section\", \"heading\": null}], \"meta\": {\"notes\": null, \"workflow\": null, \"lifecycle\": {\"source\": \"#cilegis\", \"eventRef\": [{\"eId\": \"e_commence_2010_01_01\", \"date\": \"2010-01-01\", \"type\": \"generation\", \"source\": \"#cilegis\"}]}, \"references\": {\"source\": \"#canary\", \"TLCRole\": [], \"TLCEvent\": [{\"eId\": \"ev_commencement\", \"href\": \"\/akn\/ontology\/canary\/event\/commencement\", \"showAs\": \"commencement\"}], \"TLCPerson\": [], \"TLCConcept\": [{\"eId\": \"inForce\", \"href\": \"\/akn\/ontology\/canary\/concept\/temporal\/in-force\", \"showAs\": \"in force\"}], \"TLCProcess\": [], \"TLCLocation\": [], \"TLCOrganization\": [{\"eId\": \"cilegis\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\", \"showAs\": \"Cayman Islands legislation mirror (kyleg)\"}]}, \"temporalData\": {\"source\": \"#cilegis\", \"temporalGroup\": [{\"eId\": \"tg_inforce_2010_01_01\", 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\"eng\"}, \"FRBRManifestation\": {\"FRBRuri\": \"\/akn\/ky\/act\/2010\/32\/eng@2010-01-01.xml\", \"FRBRdate\": [{\"date\": \"2026-06-22\", \"name\": \"generation\"}], \"FRBRthis\": \"\/akn\/ky\/act\/2010\/32\/eng@2010-01-01.xml\", \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRformat\": \"application\/xml\"}}}, \"name\": \"act\", \"header\": {\"title\": \"Insurance Act\", \"actNumber\": \"32 of 2010\", \"longTitle\": null}}, \"doc\": null, \"bill\": null, \"judgment\": null}}","akn_full_text":"CAYMAN ISLANDS\n\nINSURANCE LAW, 2010\n\n(Law 32 of 2010)\nSupplement No. 1 published with Gazette No. 21 dated 11 October, 2010.\n\nPage 2\nLaw 32 of 2010\nc\n\nPUBLISHING DETAILS\nCommenced: 1st of November, 2012\n\nInsurance Law, 2010\nArrangement of Sections\n\nc\nLaw 32 of 2010\nPage 3\n\nCAYMAN ISLANDS\n\nINSURANCE LAW, 2010\n(Law 32 of 2010)\nArrangement of Sections\nSection\nPage\nPART 1 - PRELIMINARY\n1.\nShort title and commencement ..................................................................................................5\n2.\nInterpretation .............................................................................................................................5\nPART 2 - LICENSING\n3.\nRequirement for licence .............................................................................................................9\n4.\nLicences ....................................................................................................................................9\n5.\nValidity of transactions by unlicensed persons ......................................................................... 12\n6.\nRequirement for an insurance manager ................................................................................... 12\n7.\nLicence renewal fees ............................................................................................................... 12\nPART 3 - OBLIGATIONS OF LICENSEES\n8.\nContinuing obligations ............................................................................................................. 13\n9.\nReturns required of insurer ...................................................................................................... 14\n10.\nReturns required of insurance broker and insurance manager ................................................. 15\n11.\nReturns required of insurance agent ........................................................................................ 16\n12.\nShares not to be issued or transferred without Authority\u2019s approval ......................................... 16\n13.\nInsurance broker or insurance manager to carry professional indemnity insurance .................. 17\n14.\nPower of attorney, agency agreement, guarantee or indemnity insurance ............................... 17\n15.\nTrust funds .............................................................................................................................. 18\n16.\nSeparate accounts for long term and general business ............................................................ 19\n17.\nFurther provisions relating to long term business accounts ...................................................... 19\n\nArrangement of Sections\nInsurance Law, 2010\n\nPage 4\nLaw 32 of 2010\nc\n\n18.\nDispensations to broke business from unlicensed insurers ...................................................... 20\n19.\nRegulation of agreements between insurance brokers and insurers ........................................ 20\n20.\nDuties of auditor ...................................................................................................................... 21\n21.\nInsurance managers ................................................................................................................ 22\nPART 4 - POWERS AND DUTIES OF THE AUTHORITY\n22.\nDuties of the Authority ............................................................................................................. 23\n23.\nDirections by the Authority ....................................................................................................... 24\n24.\nPowers of the Authority ............................................................................................................ 25\n25.\nAvoidance of confusion of names ............................................................................................ 27\n26.\nPreservation of assets, etc. ...................................................................................................... 27\n27.\nAuthority may attend winding up proceedings .......................................................................... 27\n28.\nSurrender of licence................................................................................................................. 28\nPART 5 - MISCELLANEOUS\n29.\nHow benefits of insurance policies should inure ....................................................................... 28\n30.\nEffect of payment of proceeds ................................................................................................. 29\n31.\nPortfolio transfer ...................................................................................................................... 29\n32.\nJurisdiction relating to domestic business ................................................................................ 30\n33.\nArbitration ................................................................................................................................ 31\n34.\nAppeals ................................................................................................................................... 31\n35.\nApplication, etc. ....................................................................................................................... 31\n36.\nUse of the word \u201cinsurance\u201d, etc. ............................................................................................. 31\n37.\nFalse or misleading information ............................................................................................... 32\n38.\nMisleading representations ...................................................................................................... 32\n39.\nLiability of directors etc., where the offence is committed by a corporation ............................... 32\n40.\nRegulations ............................................................................................................................. 32\n41.\nRepeal ..................................................................................................................................... 33\n42.\nSavings, transitional and consequential provisions Schedule ................................................... 33\nSCHEDULE\n35\nSAVINGS, TRANSITIONAL AND CONSEQUENTIAL PROVISIONS\n35\nContinuance of applications .............................................................................................................. 35\nContinuance of civil proceedings pending or in progress ................................................................... 35\nContinuance of criminal proceedings ................................................................................................. 35\nSaving of licences, etc....................................................................................................................... 35\nImplementation of new conditions ..................................................................................................... 35\nImplementation of requirements relating to places of business .......................................................... 36\nImplementation of insurance conditions ............................................................................................. 36\nSaving forms in use ........................................................................................................................... 36\nPeriods of time .................................................................................................................................. 36\n\nInsurance Law, 2010\nSection 1\n\nc\nLaw 32 of 2010\nPage 5\n\nCAYMAN ISLANDS\n\nINSURANCE LAW, 2010\n(Law 32 of 2010)\nENACTED by the Legislature of the Cayman Islands.\nPART 1 - PRELIMINARY\n1.\nShort title and commencement\n1.\n(1) This Law may be cited as the Insurance Law, 2010.\n(2) This Law shall come into force on such date as may be appointed by Order\nmade by the Governor in Cabinet.\n2.\nInterpretation\n2.\n(1) In this Law \u2014\n\u201cactuary\u201d means a person who has qualified as an actuary by examination of\nthe Institute of Actuaries in England or the Faculty of Actuaries in Scotland or\nthe Society of Actuaries in the United States of America or Canada, and who\nis a current member in good standing of one of the above professional\nassociations or a person in good standing with some other actuarial\nqualification who is recognised by the Authority as such for the purpose of\nthis Law;\n\u201cauditor\u201d means a person who has qualified as an accountant by examination\nof one of the Institutes of Chartered Accountants in England and Wales,\nIreland and Scotland, or the Canadian Institute of Chartered Accountants or\nthe American Institute of Certified Public Accountants, and who is a current\n\nSection 2\nInsurance Law, 2010\n\nPage 6\nLaw 32 of 2010\nc\n\nmember of good standing of one of the institutes referred to or a person of\ngood standing with some other accountancy qualification who is recognised by\nthe Authority as such for the purpose of this Law;\n\u201cAuthority\u201d means the Cayman Islands Monetary Authority established under\nsection 5 of the Monetary Authority Law (2008 Revision) and includes any\nemployee of the Authority acting under the Authority\u2019s authorisation;\n\u201cbinding authority\u201d means an instrument whereby an insurer authorises an\ninsurance broker to solicit for a specific class of business on its behalf, having\nlaid down terms and conditions, observance of which fully authorises the\ninsurance broker to effect contracts of insurance between the insurer and the\napplicant for insurance;\n\u201cbeneficiary\u201d means a person who is designated by the policy holder under a\ncontract of insurance as a person to whom the whole or part of the proceeds\nare payable on the maturity or surrender of the contract of insurance or the\nhappening of an event;\n\u201cclass A insurer\u201d means a holder of a valid class A insurer licence referred to\nin section 4(3)(a);\n\u201cclass B insurer\u201d means a holder of a valid class B insurer licence referred to\nin section 4(3)(b);\n\u201cclass B (i) insurer\u201d means a holder of a valid class B insurer licence referred\nto in section 4(3)(b)(i);\n\u201cclass B (ii) insurer\u201d means a holder of a valid class B insurer licence referred\nto in section 4(3)(b)(ii);\n\u201cclass B (iii) insurer\u201d means a holder of a valid class B insurer licence\nreferred to in section 4(3)(b)(iii);\n\u201cclass C insurer\u201d means a holder of a valid class C insurer licence referred to\nin section 4(3)(c);\n\u201cclass D insurer\u201d means a holder of a valid class D insurer licence referred to\nin section 4(3)(d);\n\u201ccontract\u201d includes a policy;\n\u201ccourt\u201d means the Grand Court or a court of summary jurisdiction;\n\u201cdomestic business\u201d means insurance business where the contract is in respect\nof the life, safety, fidelity or insurable interest, other than in respect of\nproperty, of a person who at the time of effecting the contract is ordinarily\nresident in the Islands, or property that at the time of effecting the contract is\nin the Islands or, in the case of a vehicle, vessel or aircraft, or other movable\nproperty is ordinarily based in the Islands;\n\u201cexternal insurer\u201d means a class A insurer who is not a local insurer and\nwhose principal or registered office is in a jurisdiction outside the Islands\n\nInsurance Law, 2010\nSection 2\n\nc\nLaw 32 of 2010\nPage 7\n\nwhere the legislation for the regulation and supervision of insurers is\nacceptable to the Authority;\n\u201cfinancial year\u201d means an annual period in respect of which financial\nstatements are prepared;\n\u201cgeneral business\u201d means insurance business other than long term business;\n\u201cgeneral insurer\u201d means an insurer carrying on general business;\n\u201cinsurance agent\u201d means a holder of a valid insurance agent licence referred\nto in section 4(3)(e);\n\u201cinsurance broker\u201d means a holder of a valid insurance broker licence\nreferred to in section 4(3)(f);\n\u201cinsurance business\u201d means the business of accepting risks by effecting or\ncarrying out contracts of insurance, whether directly or indirectly, and includes\nrunning-off business including the settlement of claims;\n\u201cinsurance group\u201d means a group that includes an insurer\u2019s subsidiaries,\nholding company, companies related to the insurer through common\nownership or control or which have a majority of common senior management\nor directors;\n\u201cinsurance manager\u201d means a holder of a valid insurance manager licence\nreferred to in section 4(3)(g);\n\u201cinsurer\u201d means a person who is \u2014\n(a)\nlicensed under section 4(3)(a), (b), (c) or (d) to carry on insurance\nbusiness; or\n(b) an association of individual underwriters including Lloyd\u2019s of London\nand other associations of underwriters recognised by the Authority for\nthe purposes of section 18 or 31;\n\u201clicence\u201d means a licence granted under this Law;\n\u201clicensee\u201d means the holder of a valid licence granted under section 4;\n\u201clinked policies\u201d means contracts of insurance on human life or contracts to\npay annuities on human life where the benefits are wholly or partly to be\ndetermined by reference to the value of, or the income from, property of any\ndescription, whether or not specified in the contracts, or fluctuations in, or an\nindex of, the value of property of any description, whether or not so specified;\n\u201clocal insurer\u201d means a class A insurer, incorporated in and having its place\nof business in the Islands;\n\u201clong term insurer\u201d means an insurer carrying on long term business;\n\u201clong term business\u201d means insurance business involving the making of\ncontracts of insurance \u2014\n\nSection 2\nInsurance Law, 2010\n\nPage 8\nLaw 32 of 2010\nc\n\n(a)\non human life or contracts to pay annuities on human life, including\nlinked policies, but excluding contracts for credit life insurance and term\nlife insurance other than convertible and renewable term life contracts;\n(b) against risks of the persons insured \u2014\n(i)\nsustaining injury as the result of an accident or of an accident of a\nspecified class;\n(ii) dying as the result of an accident or of an accident of a specified\nclass; or\n(iii) becoming incapacitated in consequence of disease or diseases of a\nspecified class,\nbeing contracts that are expressed to be in effect for a period of not less than\nfive years or without limit of time and either not expressed to be terminable by\nthe insurer before the expiration of five years from the taking effect thereof or\nexpressed to be so terminable before the expiration of that period only in\nspecial circumstances therein mentioned; and\n(c)\nwhether by bonds, endowment certificates or otherwise whereby in return\nfor one or more premiums paid to the insurer a sum or series of sums is\nto become payable to the person insured in the future, not being contracts\nfalling within paragraph (a) or (b);\n\u201cmargin of solvency\u201d means the excess of the value of prescribed assets over\nprescribed liabilities;\n\u201cpolicyholder\u201d means the person with whom an insurer has effected a contract\nof insurance;\n\u201cproceeds\u201d means monies, benefits in kind and cash values payable under a\ncontract of insurance or reinsurance and includes any assets acquired with\nthe same;\n\u201creinsurance business\u201d means the business of accepting risks by effecting or\ncarrying one or more contracts of reinsurance whether directly or indirectly,\nand includes running-off business including the settlement of claims;\n\u201crelated business\u201d in the context of section 4(3)(b) means business which will\noriginate from the insurer\u2019s members or the members of any group with which\nit is related through common ownership or a common risk management plan,\nor as determined by the Authority;\n\u201cRegulations\u201d means Regulations made under this Law; and\n\u201crepealed Law\u201d means the Insurance Law (2008 Revision).\n(2) For the purposes of this Law \u2014\n(a)\nin determining whether a person is a fit and proper person, the Authority\nshall have regard to all circumstances, including that person\u2019s \u2014\n(i)\nhonesty, integrity and reputation;\n\nInsurance Law, 2010\nSection 3\n\nc\nLaw 32 of 2010\nPage 9\n\n(ii) competence and capability; and\n(iii) financial soundness; and\n(b) in determining whether a person (\u2018A\u2019) controls another person (\u2018B\u2019), the\nAuthority shall have regard to whether one or more of the following\nare met \u2014\n(i)\n\u2018A\u2019, either directly or indirectly, holds ten per cent or more of the\nissued share capital in \u2018B\u2019;\n(ii) \u2018A\u2019 is entitled either directly or indirectly to exercise or control the\nexercise of ten per cent or more of the total voting rights in \u2018B\u2019;\n(iii) \u2018A\u2019 has the power to appoint or remove directors of \u2018B\u2019;\n(iv) \u2018A\u2019 is the most senior officer responsible for the operations of\n\u2018B\u2019; and\n(v) \u2018A\u2019 is a person on whose instructions or directions the directors of\n\u2018B\u2019 either directly or indirectly are accustomed to act.\nPART 2 - LICENSING\n3.\nRequirement for licence\n3.\n(1) Subject to subsection (3), a person shall not carry on \u2014\n(a)\ninsurance business;\n(b) reinsurance business; or\n(c)\nbusiness as an insurance agent, insurance broker, or insurance manager,\nunless that person holds a valid licence issued for that purpose under this Law.\n(2) A person who contravenes subsection (1) commits an offence and is liable on\nsummary conviction to a fine of one hundred thousand dollars or to\nimprisonment for a term of five years, or to both.\n(3) For the purposes of this Law, a person shall not be considered to be carrying\non insurance business solely by reason of the fact that the person effects or\ncarries out a contract of reinsurance with an insurer in the Islands, unless the\nperson\u2019s principal place of business is in the Islands.\n4.\nLicences\n4.\n(l)\nA person desiring to carry on \u2014\n(a)\ninsurance business;\n(b) reinsurance business; or\n(c)\nbusiness as an insurance agent, insurance broker or insurance manager,\n\nSection 4\nInsurance Law, 2010\n\nPage 10\nLaw 32 of 2010\nc\n\nin or from within the Islands shall make an application in writing to the\nAuthority for the grant of a licence under one or more of the categories set out\nin subsection (3).\n(2) An application under subsection (1) shall contain the information prescribed\nand shall be accompanied by \u2014\n(a)\na business plan containing the details prescribed; and\n(b) the prescribed application fee,\nand the Authority, if satisfied pursuant to subsection (5), may approve the\napplication and business plan and grant a licence, subject to such conditions as\ndetermined by the Authority for the proper operation and supervision of the\nlicensee.\n(3) Subject to subsection (4), the categories of licences which may be granted by\nthe Authority are \u2014\n(a)\nclass A insurer licence, for carrying on of domestic insurance business by\na local insurer or external insurer, or limited reinsurance business as\napproved by the Authority;\n(b) class B insurer licence, for the carrying on of insurance business other\nthan domestic business in respect of which \u2014\n(i)\nat least ninety-five per cent of the net premiums written will\noriginate from the insurer\u2019s related business;\n(ii) over fifty per cent of the net premiums written will originate from\nthe insurer\u2019s related business; or\n(iii) fifty per cent or less of the net premiums written will originate from\nthe insurer\u2019s related business;\n(c)\nclass C insurer licence, for the carrying on of insurance business\ninvolving the provision of reinsurance arrangements in respect of which\nthe insurance obligations of the class C insurer are limited in recourse to\nand collateralised by the class C insurer\u2019s funding sources or the\nproceeds of such funding sources which include the issuance of bonds or\nother instruments, contracts for differences and such other funding\nmechanisms approved by the Authority;\n(d) class D insurer licence, for the carrying on of reinsurance business and\nsuch other business as may be approved in respect of any individual\nlicence by the Authority;\n(e)\ninsurance agent licence for the soliciting of domestic business on behalf\nof not more than one general insurer and one long term insurer;\n(f)\ninsurance broker licence for arranging or procuring, directly or through\nrepresentatives, insurance or reinsurance contracts or the continuance of\nsuch contracts on behalf of existing or prospective policyholders; and\n\nInsurance Law, 2010\nSection 4\n\nc\nLaw 32 of 2010\nPage 11\n\n(g) insurance manager licence for providing insurance expertise to or for\nclass B insurers or class C insurers.\n(4) A licensee shall be subject to the following conditions \u2014\n(a)\nan insurance broker shall not hold any other licence under this Law\nexcept an insurance manager licence;\n(b) an insurer that is not a class D insurer and not a class B insurer\nincorporated as a segregated portfolio company under Part XIV of the\nCompanies Law (2010 Revision) must be separately licensed for long\nterm business and for general business;\n(c)\nonly a person incorporated under the Companies Law (2010 Revision)\nand that has a minimum of two directors may be licensed as an insurance\nbroker, insurance manager, a class A insurer that is a local insurer or a\nclass D insurer;\n(d) an insurance manager who also carries on business as either an insurance\nbroker or an insurance agent is required to be separately licensed in\nrespect of each such activity;\n(e)\nan insurance agent who acts on behalf of more than one long term and\none general insurer is to be taken for the purposes of this Law to be\nacting as an insurance broker;\n(f)\nonly a person incorporated as an exempted company under the\nCompanies Law (2010 Revision) and that has at least two directors may\nbe licensed as a class B insurer or a class C insurer;\n(g) a class B insurer may carry on domestic business where such business\nforms less than five per cent of net premiums written or where the\nAuthority has otherwise granted prior approval which may be reviewed\nby the Authority at such intervals as the Authority considers\nappropriate; and\n(h) an employee of an insurer does not require an insurance agent licence to\nsolicit of domestic business on behalf of the insurer.\n(5) The Authority shall not grant a licence unless it is satisfied that \u2014\n(a)\nthe business to which the application relates would be carried on by\npersons who are fit and proper persons to be directors, managers or\nofficers in their respective positions;\n(b) the applicant will be able to comply with the requirements of this Law\nand the Regulations and with the Money Laundering Regulations (2009\nRevision);\n(c)\nit will not be against the public interest;\n(d) the applicant has personnel with the necessary skills, knowledge and\nexperience and such facilities and such books and records as the\n\nSection 5\nInsurance Law, 2010\n\nPage 12\nLaw 32 of 2010\nc\n\nAuthority considers appropriate, having regard to the nature and scale of\nthe business;\n(e)\nthe structure of the applicant\u2019s insurance group, if any, will not hinder\neffective supervision; and\n(f)\nthe applicant\u2019s capital complies with the prescribed level.\n(6) A licensee who is an insurance broker, an insurance manager, a class A insurer\nor a class D insurer shall have a place of business in the Islands.\n(7) The Authority shall cause notice of each licence granted under this section to\nbe published in the Gazette.\n5.\nValidity of transactions by unlicensed persons\n5.\nAn insurance contract, transaction, obligation or instrument entered into by any\nperson, whether before or after the commencement of this Law, shall not be\nrendered void or unenforceable merely because it is entered into in connection with\ninsurance business carried on by a person in contravention of section 3(1).\n6.\nRequirement for an insurance manager\n6.\nA class B insurer or a class C insurer, unless it maintains permanently a place of\nbusiness approved by the Authority, shall appoint an insurance manager in the\nIslands and maintain, at the insurance manager\u2019s place of business or at another\nlocation approved by the Authority, full and proper records of the business activities\nof the class B insurer or class C insurer, sufficient to \u2014\n(a)\nexplain the transactions of the class B insurer or class C insurer;\n(b) disclose, with reasonable accuracy, at any time the state of the affairs of\nthe class B insurer or class C insurer; and\n(c)\nenable the class B insurer or class C insurer to prepare annual financial\nstatements.\n7.\nLicence renewal fees\n7.\n(1) A licensee shall on or before every 15th day of January after the first grant of\nthe licence, pay the prescribed annual fee in respect of each category of\nlicence held.\n(2) A licensee who fails to pay the prescribed annual fee by the date specified in\nsubsection (1) shall, unless the Authority waives the same, pay to the general\nrevenue of the Islands, a surcharge not exceeding one-twelfth of the prescribed\nannual fee for every month or part of a month that the prescribed annual fee is\nnot paid.\n(3) If the prescribed annual fee referred to in subsection (1) is not paid, the unpaid\nprescribed annual fee may be sued for by the Authority by action as a civil\ndebt and the Authority may require, and the court may order, the payment of\n\nInsurance Law, 2010\nSection 8\n\nc\nLaw 32 of 2010\nPage 13\n\nany surcharge accrued under subsection (2) in respect of the late payment of\nthe prescribed annual fee.\nPART 3 - OBLIGATIONS OF LICENSEES\n8.\nContinuing obligations\n8.\n(1) A licensee \u2014\n(a)\nshall carry on insurance business only in accordance with the information\ngiven in its approved licence application and business plan and shall seek\nthe prior written approval of the Authority for any change to the\napproved business plan or in the information supplied in the application;\n(b) shall not, without the prior written approval of the Authority \u2014\n(i)\nopen outside the Islands a subsidiary, branch, agency or\nrepresentative office or change its name; or\n(ii) where it is an insurer, other than an external insurer, conducting\ninsurance business other than long term business, amalgamate with\nany one or more insurers or, other than in the normal course of\nbusiness, transfer its insurance operations or any part thereof, or\naccept transfer of the insurance operations or any part thereof from\nanother insurer; and\n(c)\nthat is required to have a place of business in the Islands shall maintain in\nthe Islands such resources, including staff and facilities, books and\nrecords as the Authority may consider appropriate, having regard to the\nnature and scale of the business.\n(2) An insurer shall \u2014\n(a)\nmaintain a margin of solvency in accordance with the prescribed\nsolvency requirements;\n(b) maintain adequate arrangements for the management of risks, including\nthe reinsurance thereof where appropriate;\n(c)\nmaintain capital in accordance with the prescribed capital requirements;\n(d) authorize at least one person resident in the Islands and approved by the\nAuthority to accept on its behalf service of process in any legal\nproceedings and any notices required to be served on it;\n(e)\nwhere it is a member of an insurance group, inform the Authority of any\nactivity or transaction undertaken or proposed by another member of the\ngroup that could reasonably be expected to have a material effect on the\ninsurer;\n\nSection 9\nInsurance Law, 2010\n\nPage 14\nLaw 32 of 2010\nc\n\n(f)\nwhere it is an external insurer, be responsible for all contracts of\ndomestic business issued by any branch or subsidiary and also for all\nacts, omissions and liabilities of such branch or subsidiary activity; and\n(g) maintain an effective system of governance as approved by the\nAuthority.\n(3) An insurance agent, insurance broker or an insurance manager shall establish\nand maintain a separate account for the brokerage, agency and management\naccount separate from the accounts maintained for each insurer.\n(4) A class B insurer that is established as a segregated portfolio company under\nPart XIV of the Companies Law (2010 Revision) shall, in respect of each\nsegregated portfolio \u2014\n(a)\nmaintain the prescribed margin of solvency;\n(b) unless waived by the Authority, comply with section 9(1)(a) and (c); and\n(c)\ncause each submission under paragraph (b) to be prepared using the same\nfinancial year end.\n9.\nReturns required of insurer\n9.\n(1) An insurer shall, except as otherwise approved by the Authority in writing and\nsubject to subsection (3), submit to the Authority by way of annual return,\nwithin six months of the end of its financial year \u2014\n(a)\naudited financial statements prepared in accordance with internationally\nrecognised accounting standards by an independent auditor approved by\nthe Authority, together with a copy of any prescribed management letter\nissued by the auditor;\n(b) an actuarial valuation of its assets and liabilities including loss and loss\nexpense provisions, certified by an actuary approved by the Authority;\n(c)\ncertification of solvency prepared by a person approved by the Authority\nin accordance with the prescribed requirements;\n(d) written confirmation that the information set out in the application for the\nlicence, as modified by any subsequent changes approved by the\nAuthority, remains correct; and\n(e)\nsuch other information as may be prescribed.\n(2) A class A insurer shall, except as otherwise approved in writing by the\nAuthority, submit in the return under subsection (1), a list of insurance agents\nand insurance brokers who have the class A insurer\u2019s authority to solicit\ndomestic business on its behalf, and confirmation that the class A insurer is\nsatisfied that the agents are fit and proper persons and have complied with the\napplicable requirements under this Law.\n(3) The following exemptions apply to the requirements of subsection (1) \u2014\n\nInsurance Law, 2010\nSection 10\n\nc\nLaw 32 of 2010\nPage 15\n\n(a)\na class C insurer or a class B insurer that does not write long term\nbusiness is not required to make submissions under subsection (1)(b)\nor (c); and\n(b) the Authority may in writing exempt other classes of insurer from the\nrequirement under subsection (1)(b) where it considers it appropriate,\nbased on the nature, scale or scope of the insurance business involved.\n(4) The audited financial statements and actuarial valuation referred to in\nsubsection (1)(a) and (b) shall disclose the standards applied and \u2014\n(a)\na class A insurer or class D insurer shall publish its audited financial\nstatements at a time no later than the time that it submits them to the\nAuthority; and\n(b) a class B(iii) insurer shall make its audited financial statements available\nto insured persons, third party beneficiaries, and such other persons as\nmay be prescribed, on request.\n10.\nReturns required of insurance broker and insurance manager\n10. (1) Except as otherwise approved by the Authority in writing, an insurance broker\nor an insurance manager shall submit to the Authority by way of annual return,\nwithin six months of the end of its financial year \u2014\n(a)\nfinancial statements prepared in accordance with internationally\nrecognised accounting standards;\n(b) written confirmation that the information set out in the licence\napplication, as modified by any subsequent changes approved by the\nAuthority, remains correct;\n(c)\nevidence of adequate professional indemnity insurance as required under\nsection 13; and\n(d) such other information as may be prescribed.\n(2) In addition to the submissions required under subsection (1), except as\notherwise approved in writing by the Authority \u2014\n(a)\nan insurance broker shall in respect of domestic business submit a list of\nall insurers for whom the insurance broker is authorised to act,\ncommissions received from each insurer and the premium income\nreceived on behalf of and remitted to each such insurer during the\nfinancial year; and\n(b) an insurance manager shall submit a list of all insurers for whom the\ninsurance manager acts.\n\nSection 11\nInsurance Law, 2010\n\nPage 16\nLaw 32 of 2010\nc\n\n11.\nReturns required of insurance agent\n11. Except as otherwise approved by the Authority, in writing, an insurance agent shall\nsubmit to the Authority by way of annual return within six months of the end of the\ncalendar year, in respect of his domestic business \u2014\n(a)\nconfirmation in writing that the insurance agent is acting for no more\nthan two insurers and the names of those insurers;\n(b) evidence of the existence of a power of attorney, agency agreement or\nguarantee or professional indemnity insurance as required under\nsection 14; and\n(c)\nconfirmation in writing that the information set out in the insurance\nagent\u2019s application for the licence, as modified by any subsequent\nchanges approved by the Authority, remains correct.\n12.\nShares not to be issued or transferred without Authority\u2019s approval\n12. (1) Shares totalling more than ten per cent of the authorised share capital of a\ncompany that is a licensee under this Law shall not be issued, and issued\nshares totalling more than ten per cent of the issued share capital or total\nvoting rights of a company that is a licensee under this Law shall not be\ntransferred or disposed of in any manner, without the prior approval of the\nAuthority.\n(2) For the purposes of subsection (1), the licensee shall provide such information\nto the Authority, and within such period of time, as the Authority may require\nfor the purpose of assessing whether persons acquiring control or ownership of\nsuch shares or voting rights in the licensee are fit and proper persons to have\nsuch control or ownership.\n(3) The Authority may exempt from subsection (1) a licensee whose shares or the\nshares of whose parent body, if any, are publicly traded on a stock exchange\nrecognised by the Authority, and any such exemption \u2014\n(a)\nshall be subject to a condition that the licensee shall, as soon as\nreasonably practicable, notify the Authority of \u2014\n(i)\nany change in control of the licensee;\n(ii) the acquisition by any person or group of persons of shares\nrepresenting more than ten per cent of the licensee\u2019s issued share\ncapital or total voting rights; or\n(iii) the acquisition by any person or group of persons of shares\nrepresenting more than ten per cent of the issued share capital or\ntotal voting rights of the licensee\u2019s parent company;\n(b) shall be subject to a condition that the licensee shall, as soon as\nreasonably practicable, provide such information to the Authority, and\nwithin such period of time, as the Authority may require for the purpose\n\nInsurance Law, 2010\nSection 13\n\nc\nLaw 32 of 2010\nPage 17\n\nof assessing whether persons acquiring control or ownership of the\nlicensee in the circumstances set out in paragraph (a) are fit and proper\npersons to have such control or ownership; and\n(c)\nshall be subject to such terms and conditions as the Authority may\nconsider necessary.\n(4) In subsection (1), the reference to shares being transferred or disposed of\nincludes the transfer or disposal of the legal interest in the shares and the\ntransfer or disposal of any beneficial interest in the shares.\n(5) For the avoidance of doubt and for the purpose of issuing or transferring of\nissued shares or voting rights in this section, the references to shares totalling\nmore than ten per cent includes cumulative acquisition of shares or voting\nrights less than ten per cent which amount to more than ten per cent of the\nauthorized share capital of a company.\n13.\nInsurance broker or insurance manager to carry professional indemnity\ninsurance\n13. (1) Except as otherwise approved by the Authority, an insurance broker or\ninsurance manager shall maintain in force, and comply with the conditions of\ncover of, professional indemnity insurance placed with an insurer licensed to\ncarry on domestic business or an insurer accorded special dispensation under\nsection 18.\n(2) The professional indemnity insurance required under subsection (1) shall \u2014\n(a)\nprovide for an indemnity of not less than eight hundred and twenty\nthousand dollars for any one loss, or such other figure as may be\nspecified by the Authority;\n(b) extend to include the activities conducted on behalf of the broker or\ninsurance manager; and\n(c)\nbe subject to review by the Authority.\n(3) In the event that the professional indemnity insurance required under\nsubsection (1) is invalidated, becomes voidable or is withdrawn, cancelled or\nnot renewed, the licensee shall immediately notify the Authority and shall\nforthwith cease to solicit further insurance business until such professional\nindemnity insurance has been reinstated or replaced.\n14.\nPower of attorney, agency agreement, guarantee or indemnity insurance\n14. (1) An insurance agent shall provide evidence satisfactory to the Authority of a\npower of attorney, agency agreement or guarantee satisfactory to the\nAuthority, between the insurance agent and the insurer for whom the insurance\nagent acts.\n\nSection 15\nInsurance Law, 2010\n\nPage 18\nLaw 32 of 2010\nc\n\n(2) A power of attorney, agency agreement or guarantee provided under\nsubsection (1) shall extend to include activities conducted on behalf of the\ninsurer by the insurance agent.\n(3) In the event that a power of attorney, agency agreement or guarantee provided\nunder subsection (1) is withdrawn or determined, the insurance agent shall\nforthwith notify the Authority and shall forthwith cease to solicit further\ninsurance business until the power of attorney, agency agreement or guarantee\nhas been reinstated.\n(4) An insurance agent may, as an alternative to meeting the requirement laid\ndown in subsection (1), maintain in force professional indemnity insurance in\naccordance with the requirements and for the amount specified in section 13.\n15.\nTrust funds\n15. (1) Except as otherwise approved by the Authority, an external insurer that carries\nout domestic business shall, at all times, place and maintain upon trust, with a\nperson approved by the Authority, in a segregated account at a bank in the\nIslands which holds an \u201cA\u201d licence issued under the Banks and Trust\nCompanies Law (2009 Revision), funds as approved by the Authority in\nrespect of its \u2014\n(a)\ngeneral business; and\n(b) long term business.\n(2) Trust funds placed and maintained under subsection (1) shall be held under a\ntrust deed approved by the Authority, which shall provide that \u2014\n(a)\nthe funds are exclusively to be used to discharge the external insurer\u2019s\nobligations to policyholders, and for no other purpose; and\n(b) the funds are not to be made the subject of any charge, security interest,\nmortgage, trust, assignment, lien or other dealing,\nand except with the written consent of the Authority, any distribution, dealing\nor undertaking entered into in contravention of paragraphs (a) or (b) shall\nbe void.\n(3) An external insurer shall \u2014\n(a)\nprovide, within two months of the end of its financial year, a report to the\nAuthority in the prescribed form confirming the placement or\nmaintenance of the funds approved by the Authority\nunder\nsubsection (1); and\n(b) if the funds held in trust under subsection (1) fall below the prescribed\nlevel, notify the Authority of the fact within seven working days,\ntogether with its proposed remedial actions, for the approval of the\nAuthority.\n\nInsurance Law, 2010\nSection 16\n\nc\nLaw 32 of 2010\nPage 19\n\n16.\nSeparate accounts for long term and general business\n16. (1) A class D insurer carrying on both long term business and general business\nshall keep separate accounts in respect of its long term business.\n(2) All receipts of funds in respect of the class D insurer\u2019s long term business shall\nbe placed in a separate long term business account, and payments from that\naccount shall not be made directly or indirectly for any purpose other than\nthose of the class D insurer\u2019s long term business attributable to that account,\nexcept insofar as the payments can be made out of any surplus disclosed on an\nactuarial valuation and certified by an actuary approved by the Authority to be\ndistributable otherwise than to policyholders.\n(3) An insurer that issues linked policies shall keep a separate account in respect\nof its linked policies and shall maintain sufficient records to identify the assets\nand liabilities of that account.\n(4) A licensee that issues linked policies shall establish and maintain one or more\nfunds consisting of assets that are segregated from the other assets of the\nlicensee and that are specified as the assets on the market value of which the\nliabilities of the licensee in respect of those linked policies or amounts depend.\n17.\nFurther provisions relating to long term business accounts\n17. A class A insurer, class B insurer or class D insurer carrying on long term business\nmay establish any number of separate accounts in respect of contracts to pay\nannuities on human life and contracts of insurance on human life, the assets relating\nto which shall be kept segregated one from the other and independent of all other\nassets of the insurer, and \u2014\n(a)\nseparate accounts shall not be chargeable with any liability arising from\nany other business, including other types of long term business, of the\ninsurer and no liabilities shall be satisfied out of the assets standing to the\ncredit of the relevant separate account apart from those liabilities arising\nfrom the contract for which the separate account was established or\nliabilities relating specifically to the operation of the separate account;\n(b) subject to paragraph (a), the assets of a separate account shall include all\npremiums paid with respect to the contract for which the separate account\nwas established and all interest, earnings and assets derived from the\npremiums; and\n(c)\nany claim of the insurer under a contract of reinsurance taken out by the\ninsurer in respect of a contract for which a separate account has been\nestablished shall be deemed to be an asset of the relevant separate\naccount to the extent only that the insurer fails to meet its obligations\nunder the relevant contract and upon payment of any amount due under\nthe contract of reinsurance shall be immediately credited to the relevant\nseparate account, whether the insurer is solvent or not.\n\nSection 18\nInsurance Law, 2010\n\nPage 20\nLaw 32 of 2010\nc\n\n18.\nDispensations to broke business from unlicensed insurers\n18. (1) The Authority may grant a special dispensation to an insurance broker to place\na contract of domestic business with one or more insurers that are not licensed\nunder this Law where \u2014\n(a)\nthe insurers have not been refused a licence under this Law; and\n(b) the Authority is satisfied that \u2014\n(i)\nthe insurers are fit and proper;\n(ii) the proposed volume of domestic business to be placed with the\ninsurers is inadequate to support the payment of licence fees for a\nclass A insurer licence, or that some other good and sufficient\nreason exists; and\n(iii) there is an evident need on the part of the insurance broker, in terms\nof additional capacity or policy coverage, or otherwise, that the\nbusiness be so placed.\n(2) A dispensation under subsection (1) shall be subject to review at such intervals\nas the Authority may specify.\n(3) The insurers in respect of whom a dispensation under subsection (1) has been\ngranted shall nominate at least one person resident in the Islands and approved\nby the Authority who is authorised to accept on its behalf service of process in\nany legal proceedings and any notices to be served.\n(4) An insurance broker who has not been granted a special dispensation under\nsubsection (1) shall be personally liable to the insured on all contracts of\ninsurance placed with insurers not licensed under this Law, in the same\nmanner as if the insurance broker were the insurer.\n19.\nRegulation of agreements between insurance brokers and insurers\n19. (1) Subject to subsection (2), an insurance broker shall not enter into a binding\nauthority with an insurer other than a class D insurer.\n(2) The Authority may grant a dispensation for a fixed period to an insurance\nbroker, despite the duty of the insurance broker to act for the prospective\ninsured, to enter into a binding authority with an insurer if it is satisfied that\nthe insurance broker needs, in terms of additional capacity, policy coverage,\ncost savings or otherwise, the binding authority to be permitted.\n(3) An application for a dispensation shall be in writing and shall be accompanied\nby such additional information as the Authority may require.\n(4) A dispensation granted under this section shall be subject to any conditions\nthat the Authority sees fit, including restrictions to lines of business, specific\ncontracts, types of client and requirements for disclosure and review at such\nintervals as the Authority may specify.\n\nInsurance Law, 2010\nSection 20\n\nc\nLaw 32 of 2010\nPage 21\n\n(5) An unlicensed insurer with whom a broker can place insurance business\npursuant to a dispensation granted under this section shall not by virtue of that\nfact be regarded as carrying on insurance business in or from within the\nCayman Islands.\n20.\nDuties of auditor\n20. (1) If an auditor, in the course of carrying out an audit of the accounts of a\nlicensee under this Law, obtains information or suspects that the licensee is \u2014\n(a)\nunable or likely to become unable to meet its obligations as they fall due;\n(b) carrying on or attempting to carry on business or winding up its business\nvoluntarily in a manner that is prejudicial to its policyholders or\ncreditors;\n(c)\ncarrying on or attempting to carry on business without keeping any or\nsufficient accounting records to allow its accounts to be properly audited;\n(d) carrying on or attempting to carry on business in a fraudulent or criminal\nmanner; or\n(e)\ncarrying on or attempting to carry on business otherwise than in\ncompliance with \u2014\n(i)\nthis Law or the Regulations;\n(ii) the Monetary Authority Law (2008 Revision);\n(iii) the Money Laundering Regulations (2009 Revision); or\n(iv) a condition of the licence,\nthe auditor shall immediately give the Authority written notice of his\ninformation or suspicion and, in the case of suspicion, his reason for that\nsuspicion.\n(2) Without prejudice to subsection (8), if it appears to the Authority that an\nauditor has failed to comply with subsection (1), the Authority may disqualify\nhim from being an auditor of a licensee, but the Authority may remove any\ndisqualification imposed under this subsection if satisfied that the person in\nquestion will in future comply with subsection (1).\n(3) A licensee shall not appoint as an auditor a person disqualified under\nsubsection (2).\n(4) Where the Authority has granted approval of an auditor under this Law, the\napproval may be revoked by the Authority if the Authority is of the opinion\nthat the auditor is not sufficiently competent to carry out an audit of the\naccounts of a licensee or that, in all the circumstances, the auditor is incapable\nof carrying out the audit objectively.\n(5) When a licensee changes its auditor, the Authority may require the former\nauditor to explain the reasons for the change.\n\nSection 21\nInsurance Law, 2010\n\nPage 22\nLaw 32 of 2010\nc\n\n(6) A person carrying out or charged with the carrying out of any duty, obligation\nor function under this section shall not incur civil liability to any other person\nfor anything done or omitted to be done in respect of the discharge or\npurported discharge of that duty or function unless it is shown that the act or\nomission concerned was in bad faith.\n(7) A reference in this section to an auditor carrying out an audit of the accounts\nof a licensee includes a reference to an auditor who was engaged to carry out\nsuch an audit or who was in the course of carrying out such an audit but\nresigned before carrying out or completing the audit or whose contract to carry\nout or complete the audit was otherwise terminated.\n(8) Nothing in subsection (1) shall impose on an auditor carrying out an audit of\nthe accounts of a licensee an obligation to do anything that the auditor would\nnot otherwise be required to do in accordance with generally accepted auditing\nstandards, other than the obligation to provide notice and reasons to the\nAuthority.\n(9) A person who contravenes subsection (1) commits an offence and liable on\nsummary conviction to a fine of one hundred thousand dollars or to\nimprisonment for a term of five years, or to both.\n21.\nInsurance managers\n21. (1) An insurance manager shall use his best endeavours to manage insurance\nbusiness only for fit and proper insurers.\n(2) If the insurance manager, in respect of any insurer for or with whom the\ninsurance manager is managing insurance business \u2014\n(a)\nhas concerns regarding the fitness and probity of the insurer;\n(b) obtains information or suspects that the insurer is unable or likely to\nbecome unable to meet its obligations as they fall due;\n(c)\nobtains information or suspects that the insurer is carrying on or\nattempting to carry on business in a fraudulent or criminal manner;\n(d) obtains information that the insurer is involved in any criminal\nproceedings, whether in the Islands or abroad;\n(e)\nobtains information about a material change in the nature of the insurer\u2019s\nbusiness that has not been reported to the Authority;\n(f)\nin relation to a class B(i) insurer or class B(ii), obtains information that\nthe limit on unrelated business is exceeded; or\n(g) obtains information or suspects that the insurer is carrying on or\nattempting to carry on business otherwise than in compliance with \u2014\n(i)\nthis Law or the Regulations;\n(ii) the Monetary Authority Law (2008 Revision);\n\nInsurance Law, 2010\nSection 22\n\nc\nLaw 32 of 2010\nPage 23\n\n(iii) the Money Laundering Regulations (2009 Revision); or\n(iv) a condition of its licence,\nthe insurance manager shall report the same forthwith to the Authority.\n(3) A person carrying out or charged with the carrying out of any duty, obligation\nor function under this section shall not be liable in damages for anything done\nor omitted in the discharge or purported discharge of that duty, obligation or\nfunction under this section unless it is shown that the act or omission was in\nbad faith.\n(4) If either party to an agreement relating to representation between an insurer\nand an insurance manager intends to terminate the agreement, the party shall\ngive sixty days written notice of the proposed termination to the Authority\nunless the Authority waives the requirement in writing.\nPART 4 - POWERS AND DUTIES OF THE AUTHORITY\n22.\nDuties of the Authority\n22. (1) It is the duty of the Authority \u2014\n(a)\nto maintain a general review of insurance business in the Islands;\n(b) from time to time to examine by way of scrutiny of regular returns, onsite inspections or auditors\u2019 reports, or in such other manner as the\nAuthority may determine, the affairs or business of any licensee or other\nperson carrying on, or who has at any time carried on, insurance\nbusiness, for the purpose of a general review under paragraph (a) or for\nthe purpose of satisfying itself that this Law or any regulations made\nunder this Law or the Proceeds of Crime Law, 2008 [Law 10 of 2008] are\nbeing complied with and that the licensee is carrying on business in a fit\nand proper manner;\n(c)\nto examine the annual returns submitted to the Authority under\nsections 9, 10 and 11; and\n(d) to examine and make determinations with respect to \u2014\n(i)\napplications for licences under section 4;\n(ii) applications for approval of the use of words or representations\nwhich require approval under section 36(1);\n(iii) proposals for the revocation of licences under section 25;\n(iv) changes under section 8(1)(a);\n(v) cases of suspected insolvency;\n(vi) the exercise of powers under section 23 or 24; and\n(vii) applications for approval of auditors.\n\nSection 23\nInsurance Law, 2010\n\nPage 24\nLaw 32 of 2010\nc\n\n(2) In the performance of its functions under this Law, the Authority is entitled at\nall reasonable times \u2014\n(a)\nto have access to such books, records, vouchers, documents, cash and\nsecurities of any licensee; and\n(b) to request any information, matter or thing from any person who it has\nreasonable grounds to believe is carrying on insurance business in\ncontravention of section 3(1),\nas the Authority may reasonably require for the purpose of enabling it to\nperform its functions under this Law.\n(3) The Authority may take all necessary action to ensure the proper and just\nimplementation of this Law, and may authorize in writing any other person to\nassist it in the performance of its functions.\n(4) For the purpose of performing its duties under subsection (1)(b), the Authority\nmay in writing authorize any person, at the expense of the licensee, to examine\nthe affairs or business of any licensee or other person carrying on insurance\nbusiness and to report to the Authority the results of the examination.\n(5) Where the Authority considers it necessary for the proper supervision of a\nlicensee, the provisions of subsections (1)(b) and (2) may be applied to\nactivities or transactions of any member of the licensee\u2019s insurance group.\n23.\nDirections by the Authority\n23. (1) Where the Authority is of the opinion that a licensee \u2014\n(a)\nis committing, or about to commit, an act that is an unsafe or unsound\npractice in conducting the business of the licensee; or\n(b) is pursuing or about to pursue, a course of conduct that is an unsafe or\nunsound practice in conducting the business of the licensee,\nthe Authority may direct the licensee, in relation to a policy, a line of business\nor the entire business of the licensee, to cease or refrain from committing the\nact or pursuing the course of conduct and to perform such acts as in the\nopinion of the Authority are necessary to remedy or ameliorate the situation.\n(2) A person, who without reasonable cause, fails to comply with a direction given\nby the Authority under subsection (1) commits an offence and is liable \u2014\n(a)\non summary conviction to a fine of one hundred thousand dollars or to\nimprisonment for a term of five years or to both; and\n(b) on conviction on indictment to a fine of five hundred thousand dollars or\nto imprisonment for a term of ten years or to both,\nand if the offence of which he is convicted is continued after conviction he\ncommits a further offence and is liable to a fine of ten thousand dollars for\nevery day on which the offence is so continued.\n\nInsurance Law, 2010\nSection 24\n\nc\nLaw 32 of 2010\nPage 25\n\n(3) The provisions of this section may be applied to a segregated portfolio within\na segregated portfolio company that is licensed under this Law.\n24.\nPowers of the Authority\n24. (1) The Authority may immediately do any of the things provided in\nsubsection (2), where the Authority is of the opinion that \u2014\n(a)\na licensee is or appears likely to become unable to meet its obligations as\nthey fall due;\n(b) a licensee is carrying on business in a manner detrimental to the public\ninterest or to the interest of its creditors or policy holders;\n(c)\nthe activities of any member of the licensee\u2019s insurance group are\ndetrimental to the interest of the licensee\u2019s creditors or policy holders;\n(d) a licensee has contravened this Law or the Money Laundering\nRegulations (2009 Revision);\n(e)\na licensee has failed to comply with a condition of its licence or with\nsection 8(2);\n(f)\nthe direction and management of a licensee\u2019s business has not been\nconducted in a fit and proper manner;\n(g) a person holding a position as a director, manager or officer of a\nlicensee\u2019s business is not a fit and proper person to hold the respective\nposition; or\n(h) a person holding or acquiring control or ownership of a licensee is not a\nfit and proper person to have such control or ownership.\n(2) Where subsection (1) applies, the Authority may do any of the following \u2014\n(a)\nrequire the licensee immediately to take steps to rectify the matter;\n(b) suspend the licence of the licensee pending a full enquiry into the\nlicensee\u2019s affairs made under section 22(1)(b);\n(c)\nrevoke the licence;\n(d) impose conditions with respect to decisions made by the licensee\nincluding the suspension of voting rights or nullification of votes cast;\n(e)\nimpose conditions, or further conditions, upon the licence and amend or\nrevoke any such condition;\n(f)\nrequire the substitution or removal of any director, manager or officer of\nthe licensee;\n(g) at the expense of the licensee, appoint a person to advise the licensee on\nthe proper conduct of its affairs;\n(h) at the expense of the licensee, appoint a receiver or person to assume\ncontrol of the licensee\u2019s affairs who shall have all the powers necessary\n\nSection 24\nInsurance Law, 2010\n\nPage 26\nLaw 32 of 2010\nc\n\nto administer the affairs of the licensee including power to terminate the\ninsurance business of the licensee; and\n(i)\nrequire such action to be taken by the licensee as the Authority\nconsiders necessary.\n(3) Notwithstanding section 34(1), a licensee may, within seven days of the\ndecision, apply to the Authority for a reconsideration of its decision to revoke\na licence under subsection (2)(c).\n(4) A person appointed in respect of a licensee under subsection (2)(g) or (h)\nshall \u2014\n(a)\nwhen requested to do so by the Authority, supply the Authority with such\ninformation in respect of the licensee as is specified by the Authority;\n(b) within three months of his appointment, or within such other period as\nthe Authority may specify, prepare and supply to the Authority a report\non\nthe\naffairs\nof\nthe\nlicensee\nmaking,\nwhere\nappropriate,\nrecommendations in respect of the licensee; and\n(c)\nif his appointment is not terminated after supplying the report referred to\nin paragraph (b), subsequently supply to the Authority such other\ninformation, reports and recommendations as the Authority specifies.\n(5) On receipt of a report under subsection (4), the Authority may \u2014\n(a)\nrevoke\nthe\nappointment\nof\nthe\nperson\nappointed\nunder\nsubsection (2)(g) or (h);\n(b) extend the period of his appointment;\n(c)\nsubject to such conditions as the Authority may impose, allow the\nlicensee to reorganise its affairs in a manner approved by the Authority;\n(d) revoke the licence; or\n(e)\napply to the Grand Court for an order that the licensee be forthwith\nwound up by that Court in which case the provisions of the Companies\nLaw (2010 Revision) relating to the winding up of a company by that\nCourt shall apply.\n(6) The Authority may revoke a licence if the licensee \u2014\n(a)\nhas ceased to carry on insurance business; or\n(b) goes into liquidation or is wound up or otherwise dissolved.\n(7) Where the Authority suspends a licence under subsection (2)(b) or revokes a\nlicence under subsection (2)(c), subsection (5)(d) or subsection (6), the\nAuthority shall cause notice of the suspension or revocation to be published in\nthe Gazette, and may also cause the notice to be published, whether within the\nIslands or elsewhere, in such newspaper or other publication as the Authority\nmay consider necessary in the circumstances.\n\nInsurance Law, 2010\nSection 25\n\nc\nLaw 32 of 2010\nPage 27\n\n(8) The provisions of this section may be applied to a segregated portfolio within\na segregated portfolio company that is licensed under this Law.\n25.\nAvoidance of confusion of names\n25. The Authority may revoke the licence of a licensee who carries on insurance\nbusiness or acts as an insurance agent, an insurance broker or an insurance manager\nunder a name which \u2014\n(a)\nis identical with that of any other person, company, firm or business\nwhether within the Islands or not, or which so nearly resembles that\nname as to be calculated to deceive;\n(b) is calculated falsely to suggest the patronage of or connection with some\nperson of authority whether within the Islands or not;\n(c)\nis calculated falsely to suggest that the person has a special status in\nrelation to or derived from the Government of the Islands, or has the\nofficial backing of or acts on behalf of the Government of the Islands or\nof any department or official thereof or is recognised in the Islands as a\nlocal insurer, insurance agent, insurance broker or insurance manager; or\n(d) is calculated falsely to suggest that the licensee is carrying on insurance\nbusiness in a different category from that in respect of which he is\nlicensed.\n26.\nPreservation of assets, etc.\n26. (1) In any case where the Authority has exercised its powers under section 24, the\nAuthority may apply ex parte to the Grand Court for an order that the assets,\nbooks or papers of the licensee be preserved, not moved or otherwise disposed\nof and the Grand Court may, if it is satisfied that the assets, books or papers\nare liable to be moved, destroyed or otherwise disposed, of make an order that\nthey shall be preserved, and not be moved or otherwise disposed of until a\nfurther order of that Court.\n(2) Where an order has been made by the Grand Court under subsection (1), the\nlicensee may apply to the Grand Court at any time for the discharge of the\norder and the Grand Court may thereupon discharge, vary or confirm the\norder.\n27.\nAuthority may attend winding up proceedings\n27. (1) Where a petition for the winding up of a licensee or a person who has at any\ntime been a licensee is presented by a person other than the Authority the\npetitioner shall serve the Authority with a copy of the petition and the\nAuthority may appear at the hearing of the petition and the provisions of\nsubsections (2) and (3) shall apply.\n\nSection 28\nInsurance Law, 2010\n\nPage 28\nLaw 32 of 2010\nc\n\n(2) A document which relates to a petition for winding-up and which is required\nto be sent to any person specified in subsection (1), or to any of his respective\ncreditors, shall also be sent to the Authority.\n(3) A person appointed for the purpose by the Authority may \u2014\n(a)\nattend a meeting of creditors of a person specified in subsection (1);\n(b) attend a meeting of a committee established to discuss a compromise or\narrangement; and\n(c)\nmake representations as to any matter for decision at any such meeting.\n28.\nSurrender of licence\n28. A licensee may apply to the Authority to surrender its licence if it \u2014\n(a)\nhas ceased to carry on the business in respect of which the licence was\ngranted and its liability has been extinguished to the satisfaction of the\nAuthority; or\n(b) is being wound up voluntarily and produces evidence that it is solvent\nand able forthwith to repay all its creditors,\nand the Authority may, where an application is made, approve the surrender\nand cancel the licence and publish the cancellation in the Gazette.\nPART 5 - MISCELLANEOUS\n29.\nHow benefits of insurance policies should inure\n29. (1) Subject to subsection (2), all proceeds paid or payable to a policy holder or a\nbeneficiary under a contract of insurance in respect of long term business\nissued by any insurer shall inure exclusively for the benefit of the policy\nholder or the beneficiary in accordance with the terms of the contract of\ninsurance and \u2014\n(a)\nshall be protected from the claim of any creditor in bankruptcy,\ninsolvency, administration or similar proceedings relating to any person,\nwhether that person is the policy holder or a beneficiary or whether the\nclaim arose before or after payment under the contract of insurance,\nunless the contract of insurance was effected for the benefit of the\ncreditor; and\n(b) shall not be subject to or be otherwise available to meet the claim of any\ncreditor of a person, whether that person is the policy holder or a\nbeneficiary or whether the claim arose before or after payment under the\ncontract of insurance, unless the contract of insurance was effected for\nthe benefit of the creditor.\n\nInsurance Law, 2010\nSection 30\n\nc\nLaw 32 of 2010\nPage 29\n\n(2) Where premiums are paid by any person to an insurer with intent to defraud a\ncreditor, nothing contained in the Fraudulent Dispositions Law (1996\nRevision) shall operate to set aside a payment made under this section and any\ncreditor of the person shall be entitled only to receive out of the proceeds a\nsum equal to the premiums so paid, together with such interest as the court\nmay order, for the period between payment of the premium and the date of the\npayment.\n(3) For the purposes of the application of the Fraudulent Dispositions Law (1996\nRevision) to subsection (2) \u2014\n(a)\nthe premium or premiums paid under subsection (2) shall be deemed to\nbe dispositions at undervalue;\n(b) the six-year limitation period in section 4(3) of that Law shall apply to\nthe claim of the creditor but the enforcement of any judgment resulting\nfrom the claim shall be permitted against the proceeds outside of any\nlimitation period; and\n(c)\nat no time shall the creditor have any right of action or claim against the\ninsurer.\n(4) This section applies notwithstanding that \u2014\n(a)\nthe policy holder reserves a power to nominate or remove one or more\nother beneficiaries; or\n(b) the policy holder or the estate of the policy holder is an actual or\ncontingent beneficiary under the contract of insurance.\n(5) For the purposes of subsection (2), creditor means creditor as defined in\nsection 2 of the Fraudulent Dispositions Law (1996 Revision).\n30.\nEffect of payment of proceeds\n30. Any payment of proceeds made to a policy holder or beneficiary by the insurer in\naccordance with this Law and the contract of insurance shall discharge the insurer\nfrom any further liability under the relevant contract of insurance and the insurer\nshall not thereafter be responsible for, or be required to see to, the application of the\npayment.\n31.\nPortfolio transfer\n31. (1) A transfer or amalgamation of the whole, or any part, of the long term business\nof any insurer to another insurer shall only be effected in accordance with the\napproval of the Authority.\n(2) An application for approval under subsection (1) shall be accompanied by \u2014\n(a)\na statement as to the solvency of the transferee;\n(b) a certified copy of the agreement under which the transfer is to be\neffected;\n\nSection 32\nInsurance Law, 2010\n\nPage 30\nLaw 32 of 2010\nc\n\n(c)\na report on the terms of the proposed transfer, prepared by a competent\nprofessional person approved by the Authority; and\n(d) satisfactory proof that sufficient notice of the proposed transfer has been\nserved on each policyholder affected and that the notice has been\npublished in local media at least thirty days before the application to the\nAuthority is made.\n(3) The Authority may approve the proposed transfer as presented or subject to\nsuch terms and conditions as it sees fit, having regard to the rights and\ninterests of all policyholders affected by the transfer and all the circumstances\nof the case.\n(4) The Authority may impose conditions on applicants under this section and in\nparticular \u2014\n(a)\nfor the transfer from the transferor to the transferee of the whole or any\npart of the undertaking concerned and of any property or liabilities of the\ntransferor concerned;\n(b) for the allotment or appropriation by the transferee of any shares,\ndebentures, policies or other similar interests in the transferee which\nunder the scheme are to be allotted or appropriated to or for any other\nperson;\n(c)\nfor the transfer of property or liabilities whether or not the transferor\nconcerned otherwise has the capacity to effect the transfer in question;\n(d) in relation to property held by the transferor as trustee;\n(e)\nin relation to future or contingent rights or liabilities of the\ntransferor; and\n(f)\nfor securing the effective transfer to the transferee of any property or\nliabilities, that is the subject of the transfer, situated in or governed by the\nlaw of any jurisdiction outside of the Islands.\n(5) In this section \u2014\n\u201cliabilities\u201d includes duties;\n\u201cproperty\u201d includes property, rights and powers of any description;\n\u201ctransferee\u201d means the insurer to whom the long term business of the\ntransferor is transferred; and\n\u201ctransferor\u201d means the insurers whose long term business is transferred under\nsubsection (1).\n32.\nJurisdiction relating to domestic business\n32. Every contract of domestic business shall be subject to the jurisdiction of the courts\nof the Islands, notwithstanding any provision to the contrary contained in the\ncontract or in any agreement related to the contract.\n\nInsurance Law, 2010\nSection 33\n\nc\nLaw 32 of 2010\nPage 31\n\n33.\nArbitration\n33. Where there is no valid arbitration agreement in place and a dispute or difference\narises out of or in connection with a contract of domestic insurance, the parties to\nthe dispute or difference shall agree to the appointment of one arbitrator and if the\nparties are unable to agree the Authority shall appoint an arbitrator and the\nArbitration Law (2001 Revision) shall apply with the necessary changes.\n34.\nAppeals\n34. (1) An appeal shall lie to the Grand Court against any decision of the Authority\nother than a decision of the Authority to present a winding up petition or to\napply for the appointment of a receiver or controller.\n(2) An appeal under this section shall not operate as a stay of any decision\nappealed against.\n(3) The Rules Committee of the Grand Court may make Rules of Procedure\ngoverning the conduct of appeals under this section.\n35.\nApplication, etc.\n35. (1) Nothing in this Law derogates from any provision of the Immigration Law\n(2009 Revision) relating to gainful occupation licences.\n(2) A person who is licensed under this Law shall not be required to be licensed\nunder the Local Companies (Control) Law (2007 Revision) or the Trade and\nBusiness Licensing Law (2007 Revision).\n(3) This Law has no application to or effect upon \u2014\n(a)\ngovernmental pension arrangements;\n(b) the validity of policies of insurance in existence at the date of coming\ninto effect of this Law;\n(c)\nthe Friendly Societies Law (1998 Revision); or\n(d) pecuniary loss insurance provided by banks licensed under the Banks and\nTrust Companies Law (2009 Revision).\n36.\nUse of the word \u201cinsurance\u201d, etc.\n36. (1) Except with the approval of the Authority or where the person is a licensee, a\nperson shall not \u2014\n(a)\nuse or continue to use, in English or in any other language, the words\n\u201cinsurance\u201d, \u201cassurance\u201d, \u201cindemnity\u201d, \u201cguarantee\u201d, \u201cunderwriting\u201d,\n\u201creinsurance\u201d, \u201csurety\u201d, \u201ccasualty\u201d or any other word which in the\nopinion of the Authority connotes insurance business or any of their\nderivatives in the description or title under which he carries on business\nin or from within the Islands; or\n\nSection 37\nInsurance Law, 2010\n\nPage 32\nLaw 32 of 2010\nc\n\n(b) make or continue to make any representation in any billhead, letter,\nletterhead, circular, paper, notice or advertisement, or by any manner\nwhatsoever, that he is carrying on insurance business.\n(2) Before giving its approval under subsection (1), the Authority may require of\nany person such references and such information and particulars as may be\nprescribed.\n(3) A person who contravenes subsection (1) commits an offence and is liable on\nsummary conviction to a fine of twenty thousand dollars or to imprisonment\nfor a term of two years, or to both.\n37.\nFalse or misleading information\n37. (1) A licensee, applicant for a licence, or any director or officer of a licensee or of\nan applicant shall not knowingly or wilfully supply false or misleading\ninformation to the Authority.\n(2) A licensee, applicant for a licence, or any director or officer of a licensee or of\nan applicant who contravenes subsection (1) commits an offence and is liable\non summary conviction to a fine of one hundred thousand dollars or to\nimprisonment for a term of five years, or to both.\n38.\nMisleading representations\n38. (1) A person shall not knowingly make, issue or permit to be made or issued any\nrepresentation about or description of his insurance business, by whatever\nform or method, that is misleading or likely to be misleading to the public.\n(2) A person who contravenes subsection (1) commits an offence and is liable on\nsummary conviction to a fine of one hundred thousand dollars or to\nimprisonment for a term of five years, or to both.\n39.\nLiability of directors etc., where the offence is committed by a corporation\n39. (1) Where an offence under this Law or the Regulations which has been\ncommitted by a body corporate is proved to have been committed with the\nconsent or connivance of, or to be attributable to any neglect on the part of any\nsenior officer of the body corporate, or any person who was purporting to act\nin such a capacity, he as well as the body corporate is guilty of that offence\nand is liable to be proceeded against and punished accordingly.\n(2) In subsection (1), \u201cdirector\u201d, in relation to a body corporate whose affairs are\nmanaged by its members, means a member of the body corporate.\n40.\nRegulations\n40. (1) The Governor in Cabinet may make regulations \u2014\n(a)\nprescribing anything by this Law required to be prescribed;\n\nInsurance Law, 2010\nSection 41\n\nc\nLaw 32 of 2010\nPage 33\n\n(b) exempting any person or class of persons or business or class of business\nfrom any provision of this Law;\n(c)\nprescribing forms to be used;\n(d) prescribing any returns to be made under this Law;\n(e)\nprescribing capital and solvency margins and ratios to be maintained by\nlicensees under this Law;\n(f)\nprescribing any fees payable; and\n(g) providing for such matters as may be necessary or convenient for\ncarrying out or giving effect to this Law and its administration.\n(2) Regulations made under this Law may \u2014\n(a)\nmake different provision in relation to different cases or circumstances;\n(b) apply in respect of particular persons or particular cases or particular\nclasses of persons or particular classes of cases, and define a class by\nreference to any circumstances whatsoever; or\n(c)\ncontain such transitional, consequential, incidental or supplementary\nprovisions as appear to the Governor in Cabinet to be necessary or\nexpedient for the purposes of the regulations.\n(3) Regulations made under this Law may create an offence punishable by a fine\nnot exceeding ten thousand dollars.\n\n41.\nRepeal\n41. The Insurance Law (2008 Revision) is repealed.\n42.\nSavings, transitional and consequential provisions Schedule\n42. (1) The Schedule, which contains specific savings, transitional and consequential\nprovisions, shall have effect.\n(2) Notwithstanding section 40, the Governor in Cabinet may make regulations to\nprovide for such further savings, transitional and consequential provisions to\nhave effect in connection with the coming into operation of any provision of\nthis Law as are necessary or expedient.\n(3) Regulations made under subsection (2) may be given retrospective operation\nto a day not earlier than the day this Law comes into force.\n(4) Subsections (2) and (3) shall expire one year after they come into force.\n(5) Regulations made under this section shall be subject to negative resolution.\n\nInsurance Law, 2010\nSCHEDULE\n\nc\nLaw 32 of 2010\nPage 35\n\n SCHEDULE\n(Section 42(1))\nSAVINGS, TRANSITIONAL AND CONSEQUENTIAL PROVISIONS\nContinuance of applications\n1.\nEvery application for a licence, dispensation, approval or other matter made under\nthe repealed Law that has not been wholly dealt with by the Authority or other\nperson or body to which it has been made when this Law comes into force shall be\ntaken to be an application made under this Law, and this Law shall apply\naccordingly.\nContinuance of civil proceedings pending or in progress\n2.\nExcept as otherwise expressly provided in this Law every civil matter and\nproceeding commenced in any court under the repealed Law and pending or in\nprogress immediately before this Law comes into force may be continued,\ncompleted and enforced under this Law.\nContinuance of criminal proceedings\n3.\nAll proceedings in respect of offences committed against the repealed Law may be\ncommenced or continued as if this Law had not come into force.\nSaving of licences, etc.\n4.\nSubject to paragraph 5, every licence, dispensation, approval or direction made or\ngranted under the repealed Law and in force immediately before this Law comes\ninto force shall continue in force after this Law comes into force on the same\nconditions and with the same effect as if this Law had not come into force.\nImplementation of new conditions\n5.\nA licensee existing at the coming into force of this Law who is not in compliance\nwith one or more of the conditions specified in section 4(4) as may be applicable to\nhim shall so comply within eighteen months of the coming into force of this Law or\nsuch longer period as the Authority may for good cause shown permit and, if it is\napplicable, shall comply in the interim with section 8.\n\nSCHEDULE\nInsurance Law, 2010\n\nPage 36\nLaw 32 of 2010\nc\n\nImplementation of requirements relating to places of business\n6.\nA licensee existing at the coming into force of this Law who is not in compliance\nwith sections 4(6) and 8(1)(c) shall so comply within eighteen months of the\ncoming into force of this Law.\nImplementation of insurance conditions\n7.\nAn insurance broker or insurance manager who is not fully compliant with the\nrequirements contained in section 10 at the coming into force of this Law or who\ndoes not have a business plan approved by the Authority shall comply with those\nrequirements within eighteen months of the coming into force of this Law.\nSaving forms in use\n8.\nEvery form issued or prescribed for use under the repealed Law is to be regarded as\nissued or approved for use under this Law until another form is issued or prescribed\nfor use under this Law in place of that form.\nPeriods of time\n9.\nWhere any period of time specified in the repealed Law is current at the coming\nunto force of this Law, and there is a corresponding provision in this Law, this Law\nshall have effect as if that corresponding provision had been in force when that\nperiod began to run.\nPassed by the Legislative Assembly the 15th day of September, 2010.\nMary J. Lawrence J.P.\nSpeaker.\nZena Merren-Chin\nClerk of the Legislative Assembly.","akn_extracted_at":"2026-06-22 15:33:24.073213+00","cms_id":"2010-0032","law_type":"principal","year":"2010","number":"32","title":"Insurance Act","status":"in_force"},"provenance":{"files":[{"file_id":"4891","expr_id":"88","kind":"akn_xml","filename":"2010-0032_Act 32 of 2010.akn.xml","source_url":null,"storage_path":"\/Users\/q\/kyleg-data\/working\/PRINCIPAL\/2010\/2010-0032\/2010-0032_Act 32 of 2010.akn.xml","content_md5":"4f50768ef61d46694a2565afeb625f5b","byte_size":"77212","http_last_modified":null,"fetched_at":"2026-06-22 15:33:25.094475+00"},{"file_id":"175","expr_id":"88","kind":"pristine_pdf","filename":"2010-0032_Act 32 of 2010.pdf","source_url":"\/cms\/images\/LEGISLATION\/PRINCIPAL\/2010\/2010-0032\/2010-0032_Act 32 of 2010.pdf","storage_path":"\/Users\/q\/kyleg-data\/pristine\/PRINCIPAL\/2010\/2010-0032\/2010-0032_Act 32 of 2010.pdf","content_md5":"9b9a4c94c75a5230fef3729ce89ffc36","byte_size":"651804","http_last_modified":null,"fetched_at":"2026-06-21 23:09:35.623276+00"},{"file_id":"176","expr_id":"88","kind":"working_pdf","filename":"2010-0032_Act 32 of 2010.pdf","source_url":"\/cms\/images\/LEGISLATION\/PRINCIPAL\/2010\/2010-0032\/2010-0032_Act 32 of 2010.pdf","storage_path":"\/Users\/q\/kyleg-data\/working\/PRINCIPAL\/2010\/2010-0032\/2010-0032_Act 32 of 2010.pdf","content_md5":"9b9a4c94c75a5230fef3729ce89ffc36","byte_size":"651804","http_last_modified":null,"fetched_at":"2026-06-21 23:09:35.623276+00"}],"paragraph_count":34,"latest_history":null},"quality":{"expr_id":"88","doc_id":"88","quality_state":"needs_review","quality_score":"80","needs_human_review":"t","deterministic_categories":"{commencement_metadata_problem,duplicate_text,page_header_footer_noise}","llm_categories":"{truncated_text,other}","repair_actions":"{collapse_duplicate_text,manual_review,reextract_full_text,strip_page_furniture,verify_commencement_metadata}","finding_severity_counts":"{\"low\": 1, \"medium\": 1}","finding_summary":"Sample appears truncated; stray characters likely OCR noise. 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