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State Insurance Corporation Act


Published: 1986

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State Insurance Corporation (CAP. 413 1

CHAPTER 41 3

THE STATE INSURANCE CORPORATION ACT

Arrangement of Sections
Section

PART I

Preliminary

1. Short title
2. Interpretation.

Establishment, Constitution and Functions of the Corporation

3. Establishment of the Corporation.
4. Headquarters and branches.
5. Functions of the Corporation.
6. Business of the Corporation.
7. Property to be insured with the Corporation.

Capital, Profits and Reserves

8. Capital.
9. Profits of the Corporation.

10. Vesting of assets.
11. Distribution of profits.

Administration and Accounts

12. Board of Directors.
13. Remuneration.
14. Functions of the Board.
15. Power to make rules.
16. Appointment of General Manager.

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2 CAP. 413) State Insurance Corporation

17. Functions of General Manager.
18. Directions of the Minister.
19. Disqualifications.
20. Conflict of interest.
21. Secrecy.
22. Accounts and audit.

Miscellaneous.

23. Regulations.
24. Insurance Act to apply.
25. Protection of Directors.
26. Preliminary.
27. Exemption from duties and taxes.

SCHEDULE.

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State Insurance Corporation (CAP. 413 3

STATE INSURANCE CORPORATION

An Act. to provide for the establishment of the State
Insurance Corporation, charged with the functions of
insuring the assets of the Government and certain
statutory boards and the undertaking and carrying on
of all classes of insurance business and for purposes
incidental thereto and connected therewith.

(1st January, 1986.)

Preliminary

1. This Act may be cited as the State Insurance Shorttitle.
Corporation Act.

2. In this Act, Interpretation.

"appointed day" means the first day of January, 1986.

"Board" means the Board of Directors of the
Corporation established under section 12;

"Corporation" means the State Insurance Corporation
established under section 3;

"the Department" means the State Insurance
Department established under section 3 of the
State Insurance Act 1976; No. 21 of 1976. Repealed.

"General Manager" means the person appointed as
such under section 16;

"insurance business" has the same meaning as in sec-
tion 3 of the Insurance Act; Cap. 218.

"public property" means property owned or used by
the Government or owned or used by a statutory
board and includes any other liability or risk in
which the Government or statutory board has an
insurable interest.

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4 CAP. 413) State Insurance Corporation

Establishment, Constitution and Functions of the Corporation

Establishment of
the Corporation.

3. ( 1 ) There is hereby established a Corporation
which shall-

( a ) be a body corporate by the name of the State
Insurance Corporation with perpetual succession and a
seal;

(b ) in its corporate name be capable of suing and
being sued;

(c) be capable of holding, purchasing and other-
wise acquiring and disposing of any property, movable
or immovable, for the purpose of carrying out its func-
tions under this Act.

Schedule.

Headquarters and
branches.

Functions of the
Corporation.

(2) The provisions of the Schedule shall have effect
with respect to the constitution and proceedings of the
Board.

4. The Corporation shall have its headquarters in
Antigua and Barbuda, and may, for the better performance
of its functions under this Act, establish branches and
appoint agents or representatives within or outside Antigua
and Barbuda.

5. ( 1 ) The functions of the Corporation shall be-
( a ) to undertake and carry on all or any class of

insurance business;

(6 ) to guarantee in relation to any stock, shares,
debentures, debenture stock, bonds, obligations or
securities issued by or having any guarantee of any
company or institution or by any authority, or of any
person whether corporate or unincorporate;

(c) to carry on business as consultants, advisers,'
and managers in relation to insurance and pension
schemes;

(d) to establish, promote and otherwise assist any
company for the purpose of acquiring any of the
property or furthering any of the functions of the
Corporation;

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State Insurance Corporation (CAP. 413 5

(e ) subject to the regulations, to invest the funds
of the Corporation in such manner as the Board thinks
fit and to take such steps as are necessary for the pro-
tection or realization of any investment, including the
taking over and administering of any property offered
as security for investment;

V) to purchase, take on lease, or otherwise
acquire for the purposes of the Corporation, any estate,
lands, buildings, easements, or other interest in real
estate and to sell, let or lease or otherwise dispose of or
grant rights over any real property belonging to the
Corporation;

(g ) to take over and carry on the business of the
Department;

(h ) to rebuild, repair, replace or reinstate, houses,
buildings, machinery, and every other description or
property which may be insured by the Corporation and
to carry on any kind of business necessary or expedient
for any such purpose;

(i) to reinsure in whole or in part any class of
insurance business specifically for any risk or in accor-
dance with standing agreements entered into with
other insurers or reinsurers on such terms and condi-
tions as the exigencies of business dictate and in the
best interest of the Corporation;

0) to advance or lend money upon security of any
property;

( k ) subject to the approval of the Minister and to
the provisions of the Insurance Act, to acquire or amal-
gamate with the business carried on by any insurer in
Antigua and Barbuda;

(I) to undertake, for such time as the Minister
approves, the management of the affairs of any insurer,
agent or association of underwriters in Antigua and
Barbuda;

(m) to carry on such other business as in the opin-
ion of the Board is capable of being carried on in con-
junction with the Corporation's business; and

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CAP. 413) State Insurance Cuvporation

Business of the
Corporation.

Property to be
insured with the
Corporation.

Capital.

Profits of the
Corporation.

( n ) to do such other things as appear to the Board
to be incidental or conducive to the attainment of the
above functions or any of them.

(9) The Corporation shall function as a commercial
organisation and conduct its business subject to the accept-
ed business principles applicable to insurance.

6. The Corporation shall provide insurance for all
classes of insurance business.

7. As from the appointed day, all public property,
other than such property as the Minister may by Notice pub-
lished in the Gazette specify, shall be insured with the
Corporation.

Capital, Profits and Reserves

8. (1) The authorised capital of the Corporation
shall be five million dollars and may be increased by such
amounts as the Board, with the approval of the Minister,
determines.

(2) The paid-up capital shall be five hundred thousand
dollars and the Government shall within thirty days of the
enactment of this Act, pay up such capital in cash or securities.

(3) The authorised capital and paid-up capital of the
Corporation shall be for the sole account of the
Government and shall not be transferable nor subject to
encumbrance.

(4) Notwithstanding the other provisions of this Act,
the Minister shall cause to be transferred to the
Corporation securities issued by the Government in varying
amounts for the purpose of preserving the paid-up capital
from any impairment whenever the annual statement of
accounts discloses that the assets of the Corporation are less
than the sum of its liabilities and paid-up capital.

9. ( I ) The net profits of the Corporation for each
financial year shall be determined in accordance with the

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State Insurance Corporation (CAP. 413 7

established accounting principles applicable to insurance
business, after provision has been made for adequate
reserves, unexpired risks, outstanding claims and special or
contingency reserves and taxation, if any.

(2) The Board may, with the approval of the Minister,
make such other additional provisions relating to the
reserves as it thinks fit.

10. (1) AS from the appointed day, all the assets, lia- Vestingof assets.
bilities, books, records, furniture and fittings of the
Department and all contracts and agreements entered into
or agreed to be entered into by the Department shall stand
transferred to and vested in the Corporation.

(2) The Reserves and Funds set up by the Department
to meet any liabilities to the policyholders and transferred
under the provisions of subsection ( I ) , shall be maintained
in a similar manner in the name of the Corporation.

(3) The Corporation shall have like rights, powers and
remedies (including in particular, rights and powers as to
taking and resisting of legal proceedings) for ascertaining,
perfecting or enforcing any rights or liabilities vested in or
attaching to the Department under this section as if this had
at all times been the rights and liabilities of the
Corporation.

(4) All civil proceedings commenced before the
appointed day in any court in Antigua and Barbuda by or
against the Department or on its behalf may be continued
by or against the Corporation and any such proceedings
may be amended accordingly.

11. (1) Subject to subsection (2) , a part of the net ; ' t i o n o f
profits of the Corporation shall at the end of each financial
year be transferred to the General Reserve of the
Corporation in the following arnounts-

(a) where the General Reserve is equal to or less
than the authorised capital, twenty-five per cent of such
profits;

( b ) where the General Reserve exceeds the
authorised capital but is equal to or less than twice the

CAP. 413)

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State Insurance Corporation

authorised capital, twelve and one-half per cent of
such profits.

(2) Except the Board with the approval of the Minister
othefwise determines, no transfer shall be made to the
General Reserve where the General Reserve is in excess of
twice the authorised capital.

(3) Subject to subsection ( 5 ) , after an allocation is
made to the General Reserve in accordance with subsection
( I ) , the balance of the net profits for the financial year shall
be distributed as follows:-

(a) where there are securities to be redeemed-

(i) fifty per cent thereof shall be applied to the
redemption on behalf of the Government in
respect of securities held by the Corporation
and issued in accordance with section 8 (4),
and

(ii) such amounts of the remaining balance of
the net profits shall be applied to a special
contingency reserve fund as the Board may,
with the approval of the Minister, determine; or

(6) where there are no securities to be redeemed
such amounts of the remaining balance of the net prof-
its shall be transferred to a special contingency reserve
as the Board may, with the approval of the Minister,
determine.

(4) The balance of the net profits for the financial year
remaining after allocations have been made in accordance
with this section shall, as soon as practicable after the end of
each financial year, be paid into the Consolidated Fund.

(5) No allocations shall be made under this section, in
respect of any financial year, if in that year the accounts of
the Corporation disclose that the assets of the Corporation
are, or after such allocations are likely to be, less than the
sum of its liabilities and paid-up capital.

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State Insurance Corporation (CAP. 413 9

Administration and Accounts

12. There shall be a Board of Directors of the g::oqf,
Corporation which shall be responsible for the policy and
general administration of the Corporation.

13. The directors of the Corporation shall be paid Remluleration.
such remuneration as the Board with the approval of the
Minister determines.

14. The Board may- Functions of the
Board.

( a ) appoint at such remuneration and on such
terms and conditions as it thinks fit, such officers and
employees as it considers necessary for the proper
functioning of the Corporation;

( b ) provide, with the approval of the Minister, the
guidelines for investment of the monies of the
Corporation;

(c) approve settlement of claims admissible under
any policy of insurance issued by the Corporation in
excess of such limits of settlement as is prescribed for
the General Manager;

(4 approve settlement of ex-gratia claims;
(e) appoint with the approval of the Minister, the

actuary, solicitor and the auditor of the Corporation;

0 delegate such powers as it thinks fit to the
General Manager;

(g ) approve the annual recurrent budget of the
Corporation including specific resolutioils for capital
expenditure and expenditure of sums in excess of the
limits which the General Manager approves;

(h ) provide guidelines regarding the rates and
terms of the policies of insurance which the
corporation may issue;

( 2 ) approve schemes of reinsurance for the
Corporation;

(?') approve the annual audited statement of
accounts of the Corporation and, subject to this Act

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10 CAP. 413) State Insurance Coqoration

and to the approval of the Minister, determine the allo-
cation of the profits;

(k) subject to such terms and conditions as the
a Board prescribes, authorise advances to employees for
housing and transport;

(1) constitute such committees of the Board and
employees of the Corporation as it considers necessary
and delegate functions thereto; and

fm) perform such other functions as the Minister
approves for the efficient and proper functioning of
the Corporation.

Power to make
rules. 15. ( 1 ) The Board may make rules for the conduct

of the Corporation's business and may issue such orders and
instructions as it thinks fit for giving effect to this Act and
for the effective management of the Corporation.

(2) Without prejudice to subsection ( I ) , the Board
may, subject to the approval of the Minister, makes rules-

( a ) governing the proceedings of the Corporation
and the manner and transaction of its business;

(b) providing the manner in which cheques and
other instruments may be signed or executed on behalf
of the Corporation;

( c ) prescribing the salaries, allowances, benefits,
pension or superannuation schemes and gratuity for
officers and employees of the Corporation;

(d) generally for the performance of its functions
under this Act.

Appointment of
G ~ ~ ~ ~ M ~ ~ ~ ~ ~ ~ . 16. ( 1 ) There shall be a Genera1 Manager of the

Corporation who shall perform the functions conferred on
him by this Act, and such other functions as may be con-
ferred on him by the Board.

(2) The General Manager shall be appointed by the
Minister by instrument in writing on the recommendation
of the Board for such period and on such terms and condi-
tions as the Minister determines, from among persons who

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State Insurance Corporation (CAP. 413 11

possess qualifications in insurance or in related fields, or
who have had substantial experience or training in such
fields.

1'7. ( 1 ) The General Manager shall be responsible Ez,"&yL_
to the Board for the execution of its policy and for the man-
agement of the Corporation.

(2) The function of the General Manager shall be-

( a ) to act, contract and sign instruments and doc-
uments on behalf of the Corporation;

( b ) to delegate such powers to other employees of
the Corporation as he thinks necessary for the efficient
management of the Corporation;

( c ) subject to the approval of the Board, to
appoint the employees of the Corporation;

(4 to accept any form of insurance or reinsur-
ance business and enter into such contracts of insur-
ance or reinsurance as he thinks necessary;

(e) to draw up the terms and conditions of con-
tracts including the contracts of insurance and reinsur-
ance;

0 subject to the provisions of this Act, to fix the
rates and terms for undertaking various classes of insur-
ance business within the guidelines laid down by the
Board;

(g) subject to any limits or guidelines which the
Minister or the Board issues, to invest the monies of the
Corporation;

(h ) subject to approval of the Board, to conduct
negotiations with trade unions;

( i ) subject to the approval of the Board, to estab-
lish branch offices of the Corporation.

(3) The General Manager shall attend all meetings of
the Board, but shall not have the right to vote.

(4) Subject to subsection ( 5 ) , the General Manager
shall devote the whole of his professional services to the

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12 CAP. 413) State Insurance Corporation

Corporation and while holding office shall not receive any
salary or supplementary emoluments from any source other
than the Corporation nor shall he occupy any other office
or e