Insurance (Licence) (CAP. 220 1

CHAPTER 220

THE INSURANCE (LICENCE) ACT

Arrangement of Sections
Section

1. Short title.
2 . Interpretation.
3. Licences of Salesmen.
4. Failure to give notice of termination of salesman's

authority.
5. Termination and renewal of salesman's licence.
6. Salesman may act only for his agent or broker.
7. Insurance salesman acting without licence guilty of

offence.
8. Licences to Insurance brokers.
9. Renewal of broker's licence.

10. Revocation or suspension of broker's licence.
11. Insurance broker acting without licence guilty of an

offence.
12. Licence to broker not to imply agency.
13. Broker's Licence may be granted limiting authority of

licensee.
14. Licence to special insurance brokers.
15. Renewal of licence of special insurance broker.
16. Security to be given by applicant for special broker's

licence.
17. Monthly return of special insurance broker.
18. Income Tax on premiums.
19. Release of security of special insurance broker.
20. Prohibition against accepting business from agents and

brokers.
2 1. Forfeiture of licence.
22. Receiving premiums.
23. Personal liability of broker for unlawful contracts.
24. Licences to partnerships.
25. Licences to corporations.
26. When licence not to be issued.

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2 CAP. 220) Insurance (Licence)

27. General penalty.
28. Burden of proof.
29. Fees and regulations.
30. Transitional provisions.

SCHEDULE.

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Insurance (Licence) (CAP. 220 3

-*

INSURANCE (LICENCE)

(I lth September, 1969.)

1. This Act may be cited as the Insurance (Licence) short title.
Act.

2. In this Act- Interpretation.

"Agent" means a person who, for compensation, not
being a duly licensed insurance broker solicits
insurance on behalf of an insurer or transmits, for
a person other than himself, an application for or
a policy of insurance to or from such insurer or
offers or assumes to act in the negotiation of such
insurance or in negotiating its continuance or
renewal;

"Broker" means a person who, for compensation, not
being an agent acts or aids in any manner in
negotiating contracts of insurance or placing risks
or effecting insurance or in negotiating the
continuance or renewal of such contracts for a
person other than himself and includes the agent
of a broker;

"Insurance" means the undertaking by one person to
indemnify another person against loss or liability
for loss in respect of a certain risk or peril to which
the object of the insurance may be exposed or to
pay a sum of money or other thing of value upon
the happening of a certain event;

"Insurer" means the person who undertakes or agrees
or offers to undertake a contract of insurance;

"licensed" means licensed under this Act;

"Registrar" means the Registrar appointed under the
Insurance Act;

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4 CAP. 220) Insurance (Licence)

"registered" means registered under the Insurance Act;

< < salesman" means a person who is employed by a
registered insurance agent or by a licensed Broker to solicit
insurance, or transmit for a person other than himself, an
application for a policy of insurance, or to act in the negotia-
tion of such insurance or in negotiating its continuance or
renewal or collects and receives premiums on behalf of his
employer only, but does not include a registered insurance
agent, licensed broker or employee engaged solely in office
duties for an agent or broker.

Licences of
Salesmen.

3. (1) The Registrar may issue to any person who
has complied with this Act a licence authorising such person
to act as a salesman on behalf of a registered insurance agent
or broker in negotiating contracts of insurance or in the
negotiation of the continuance or renewal of any contracts
such agent or broker may lawfully undertake.

(2) Licences so issued shall be for any classes of
insurance.

(3) Upon written notice to the Registrar that a registered
agent or a broker has appointed a person as a salesman to
act on his behalf, and upon due application of such person
and payment by him of the prescribed fee the Registrar shall,
if he is satisfied that the applicant is a suitable person to
receive a licence, and is not a person whom the Registrar
has refused to licence as a broker under this Act or to register
as an insurance agent under the Insurance Act or whose
registration as an insurance agent under the said Act has
been suspended or revoked, issue to the applicant a licence
stating in substance that the holder is, during the term of
the licence, authorised to act in Antigua and Barbuda as
a salesman of such agent or broker.

(4) Such notice of appointment by a registered agent
or broker shall be upon a form furnished by the Registrar
and shall state that the appointee has been authorised in
writing by the agent or broker to act as a salesman in the
soliciting of and negotiating for insurance and shall be
accompanied by a sworn statement of the appointee on a

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Insurance (Licence) (CAP. 220 5

form furnished by the Registrar giving his name, age,
residence, the remuneration he is to receive for such
employment, his present occupation and occupation for the
Eve years next preceding the date of the notice, particulars
of any other employment in which he is engaged, and such
other information as the Registrar requires.

(5) Where a licensed salesman ceases to be employed
by the appointing agent or broker, notice in writing shall
forthwith be given by the agent or broker to the Registrar
of such termination of employment with the reason therefor
and thereupon the licence shall be ips0 facto suspended but
such licence may be revived subject to the approval of the
Registrar upon filing a notice of withdrawal or a notice of
the salesman's appointment by another agent or broker, and
upon payment of a fee of one dollar.

4. An agent or broker who fails to notify the Registrar Failure to give notice of
within 30 days of the termination of a salesman's appointment termination of
as required b y subsection (5) of section 3 of th;sAAct shall z:lV$:
be guilty of an offence against this Act.

5 . A licence issued to a salesman shall expire on the z;,",$ff"" and
31st day of December next after its issue unless automatically s ~ e s m a n ~ ,
suspended by notice under section 3 or unless revoked or licence.
suspended by the Registrar, but such licence may, in the
discretion of the Registrar, be renewed for a succeeding year
upon due application upon a form prescribed by the Registrar
giving such information as he requires, accompanied by a
certificate of a registered agent or broker respecting the
salesman's appointment, and payment of the prescribed fee,
without requiring anew the detailed information hereinbefore
required.

6. The holder of a licence issued to a salesman may, Salesman
act only for his

during the term and validity of his licence, act as salesman agent of broker.
only for the agent or broker by whom he is appointed and
within the limits of such agent's or broker's licence.

7. Every person who acts as a salesman without the
licence required by this Act, or while his licence is suspended, ,ithOut 1iCence
shall be k i l ty of: an offence against this Act. guilty of offence.

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6 CAP. 220) Insurance (Licence)

Licences to
Insurance 8. (1) The Registrar may, upon the payment of the
brokers. prescribed fee. issue to any suitable person resident in Anti.ma -

and Barbuda a licence to act in Antigua and Barbuda as
an insurance broker to negotiate, continue or renew contracts
of insurance in Antigua and Barbuda or to place risks or
effect insurance with any registered insurer or the agent of
a registered insurer.

(2) The applicant for such a licence shall file with the
Registrar a written application under oath upon a form
prescribed by the Registrar in which the applicant shall state
his name, age, residence and occupation at the time of making
the application his occupation for the five years next preceding
the date of the application and such other information as
the Registrar requires, and the applicant shall declare that
he intends to hold himself out publicly and carry on business
in good faith as an insurance broker and he shall furnish
a statement as to his trustworthiness and competency signed
by at least three reputable persons resident in Antigua and
Barbuda.

(3) If the Registrar is satisfied with the statement and
information required by subsection (2) of this section he shall
issue the licence applied for, and the licence shall expire on
the 31st day of December in each year unless sooner revoked
or suspended.

(4) A broker who is granted a licence under this section
shall be personally liable to the insured for all contracts of
insurance made by or through him directly or indirectly with
any insurer who is not resident in Antigua and Barbuda in
the same manner as if such agent or broker were the insurer.

Renewal of
broker's licence.

9. The licence issued to a broker may in the discretion
of the Registrar, be renewed upon payment of the prescribed
fee for each succeeding year without requiring anew the
detailed information hereinbefore specified.

Revocation or
suspension of 10. The Registrar may, for cause shown and after
broker's licence. a hearing, revoke the licence issued to a broker under this

Act or may suspend it for a period not exceeding the expired
term thereof, and may, for cause shown and after a hearing
revoke the licence while so suspended, and shall notify the

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Insurance (Licence) (CAP. 220 7

licensee in writing of such revocation or suspension and may
publish a notice of such revocation or suspension in such
manner as he deems necessary for the protection of the public.

11. Any person, other than a registered agent, who E;;r,";ti;:p
acts as an insurance broker without a licence or during a licence pilty of
suspension of his licence shall be guilty of an offence. an offence.

12. Subject to section 23 of this Act a broker shall ~ ~ ~ ; ~ p p ; . D X n
not be presumed to be the agent of the insurer or the agent agency.
of the insured by reason of the issue to him of a licence to
act as an insurance broker.

13. In addition to issuing insurance brokers' licences ~ , " , " ; ~ s $ ~ ~ , " ~
giving full authority to the licensee as set forth in the limiting
preceding sections, the Registrar may issue insurance brokers' c::.~ Of
licences limiting the authority of the licensee to the extent
agreed upon with the applicant and set forth in the license,
but in other respects the granting of such licences and the
brokers so licensed shall be subject to this Act.

14. (1) The Registrar may, upon the payment of the Licence to special
insurance

prescribed fee, issue to any suitable person resident in Antigua brokers.
and Barbuda a licence to act as a special insurance broker
to negotiate, continue or renew contracts of insurance in
Antigua and Barbuda with insurers not registered to contract
such business in Antigua and Barbuda.

(2) The applicant for such a licence shall file with the
Registrar a written application as prescribed by section 8
(2) of this Act.

(3) If the Registrar is satisfied with the statements and
information required, he shall issue the licence applied for
subject to suspension or revocation in the discretion of the
Registrar, and the licence shall expire on the 31st day of
December in each year unless sooner suspended or revoked.

15. The licence issued to a special insurance broker :(_r;''be,,
may, in the discretion of the Registrar, be renewed for each insu,nce broker.
succeeding year upon payment of the prescribed fee without
requiring anew the detailed information specified by section 8
of this Act.

LAWS OF ANTIGUA AND BARBUDA

CAP. 220) Insurance (Licence)

Security to be
given by
applicant for
special broker's
licence.

Monthly return
of special
insurance broker.

Income tax on
premiums.

Release of
security of
special insurance
broker.

Prohibition
against accepting
business from
agents and
brokers.

Forfeiture of
licence.

16. A person shall, before receiving such licence
execute and deliver to the Registrar security to the satisfaction
of the Registrar in the sum of not less than one hundred
and twenty-five thousand dollars, that he as holder of a special
insurance broker's licence will faithfully comply with this Act.

17. Within ten days after the end of each half year
ending on the 30th day of June and the 31st day of December
in each year every special insurance broker shall make to
the Registrar a return under oath in the form and manner
prescribed by the Registrar, containing particulars of all
insurances effected under this Act by him during such half
year.

18. In respect of all premiums on insurance effected
under a licence issued to a special insurance broker the special
insurance broker shall be liable to pay to the Inland Revenue
Department such taxes as would be payable if such premiums
had been received by an insurer registered in Antigua and
Barbuda.

19. O n it being shown to the satisfaction of the
Registrar that all insurances effected under a special insurance
broker's licence are no longer in force or have been wholly
reinsured, the special insurance broker shall be entitled to
a release or cancellation of his security.

20. A special insurance broker shall accept
applications for insurance with unregistered insurers only
from the insured or another special insurance broker and
a special insurance broker shall not receive any such
application form, or pay or allow compensation or anything
of value in respect of such applications to, an agent or broker
not licensed as a special insurance broker under this Act,
and any contract of insurance with an unregistered insurer
made by or through any agent or broker not licensed as a
special insurance broker under this Act shall be deemed to
be unlawfully made within the meaning of section 23 of this
Act.

21. A person licensed as a special insurance broker
under this Act who contravenes any of its provisions shall
be guilty of an offence and, in addition to any other penalty,
shall forfeit his licence.

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Insurance (Licence) (CAP. 220 9

22. A broker shall, for the purpose of receiving any Receiving
premium for a contract of insurance, be deemed to be the premiums.

agent of the insurer notwithstanding any conditions or
stipulations to the contrary.

23. An agent or broker shall be personally liable to lit^
the insured on all contracts of insurance made by or through unla,hl
him directly or indirectly with any insurer not registered to contracts.
undertake insurance in Antigua and Barbuda in the same
manner as if such agent or broker were the insurer.

24. (1) Licences as brokers may be issued to b$:;d;s.
partnerships on the conditions hereinbefore specified for the
issue of such licences to individuals except as otherwise
provided in this section.

(2) Each member of the partnership shall file the state-
ment or application and pay the prescribed fee including a
written request that the licence be issued in the name of the
partnership, and the licence may be revoked or suspended
as to members of the partnership.

(3) If the partnership is terminated before the expiration
of the licence the partners shall forthwith give notice to the
Registrar who shall thereupon revoke the licence.

(4) A member of a partnership licensed under this
section who contravenes any of its provisions shall be guilty
of an offence against this Act.

25. Licences as brokers may be issued to any Licences to
corporation that is incorporated expressly for the purpose CorPoration~
of acting as a broker or for that and other purposes.

26. Licences as brokers shall not be issued to a Et;i!;;,"i; not
corporation which is not registered in Antigua and Barbuda
under the Companies Act, or if it appears to the Registrar
that the application is made for the purpose of acting as broker
wholly or chiefly in the insurance of property owned by the
corporation or by its shareholders or members or in the
placing of insurance for one person, firm, corporation, estate
or family.

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10 CAP. 220) Insurance (Licence)

General penalty. 27. Every person guilty of an offence under this Act
for which no specific penalty is provided shall be liable on
summary conviction before a Magistrate to a fine not
exceeding one thousand dollars for every such offence.

Burden of proof. 28. In any prosecution under this Act whenever it
appears that the accused has done any act or been guilty
of any omission in respect of which he would be liable to
some penalty under this Act unless he is duly licensed it shall
be incumbent upon him to prove that he is duly licensed.

Fees and
regulations.

29. (1) Until otherwise prescribed by the Governor-
General the fees payable to the Registrar by a salesman or
broker shall be as set forth in the Schedule to this Act.

(2) The fees mentioned in subsection (1) of this section
shall be paid before a licence or the renewal of a licence is
issued.

( 3 ) The Governor-General may make regulations-

(a) altering-or amending the scale of fees provided
for in the Schedule to this Act;

(b) generally for the better carrying out of the
provisions of this Act.

Transitional
provisions

30. (1) Where, prior to the date when the Revenue
&/1982. (Miscellaneous Provisions) Act, 1982 (in this section called

"the Act") came into operation, any person to whom the
Registrar had issued a licence under this Act to act as an
insurance broker or as a special insurance broker or as an
insurance salesman had paid the fee in respect of the year
1982 for that licence pursuant to this Act, then and in such
case that person shall, not later than twenty-eight days after
the date when the Act came into operation, pay to the
Registrar a sum of money being the difference between the
fee already paid by him for such licence and the fee applicable
to his licence specified in the Schedule to this Act as enacted
by section 7 of the Act.

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Insurance (Licence) (CAP. 220 1 1

(2) If any insurance broker, special insurance broker
or insurance salesman fails to comply with any provision
sf this section that relates to him, any licence that had been
issued to him under this Act shall forthwith expire.

SCHEDULE

1. Licence for insurance brokers and
............................. renewals thereof

2 . Licence for special insurance brokers for
business with unregistered insurers and
renewals thereof .............................

3 . Licences for insurance salesman and
............................. renewals thereof

4. The fee for anv licence as above in this

(Section 29)

$ 500.00

Schedule for a period of six months or less
shall be one-half of the sum of money
specified in relation to that licence.