THE NIGEIUAN COUNCIL OF REGISTERED INSURANCE BROKERS BILL, 2003

EXPLANATORY MEMORANDUM

This Bill seeks to provide for the establishment of the Nigerian Council of Registered Insurance Brokers and also 10r the transfer of all assets in custody of the Incorporated Association to the Council.

•

THE NIGERIAN COUNCIL OF REGISTERED INSURANCE BROKERS BILL, 200) t/

All.ltANUliMliNT OJ' CLAUSLJ.';

Clause; PART l-Es"l'ABUSIIMliNT OF 1'1lU CoUNCIL

1. Bstablishment of tbe Council 2. Duties of the Council

PART II-GOVERNING BOARDOF 11m COUNCIL ETC

3. Governing Board of theCouncil 4. Election of President and Vice Presidents

PART IIl-RliG1STRAT10N 01' INS\J!I.ANCIi BROKIiRS

S. Registration of insurance brokers 6. Qualification Ior registration 7. List of bodies corporate carrying 011 business as insurance brokers

8. Refusal of insurance brokers application by the Council 9. Register and List 10, Publication of register and list 11. Election of Honorary Fellows and Associates

PART IV-ExOCUT1VH SUCRIlTARY ANDornua STArr

12. Executive Secretary and staff 13. Regulation of professional conduct

PART V -FUNL) OF Tim Ccuscn. 14. Fund of the Council

PART VI-Mum; OF OPERATION OF PRACnClN(i INSlJRANCU BIWKIiRS ANI) EN!\OLLEI) BODY CORPORATE

15. Requirement for carrying on business 16. Preliminary investigation of disciplinary cases 17. Disciplinary Committee 18. Erasure from the Register and List for crime, unprofessional conduct, etc. 19. Restoration of names erased as a result of disciplinary cases, etc. 20. Erasure from the Register and List on ground of fraud or error 21, Appeals in disciplinary and other cases 22. Procedure of Disciplinary Committee 23, Assessors to Disciplinary Committee 24. General power to appoint a Commiucc

PART Vll-RESTRK"flON ON USE OF TlTl.ES AND DESCRWl'IONS

25. Penalty for pretending to be registered, etc. 26, Exceptions 27, Offences by bodies corporate 28. Falsestatement

PART V1ll-Ml<;cELLANI!.OUS AND GENERAL

29. Transfer of assets and liabilities 30. Power of the Minister to give directions to the Council 31. Regulations 32. Fees and practicing certificate 33. Ameudmem of Act No. 22 of 1993 34. Interpretation 3:>. Citation.

rue NIGERIAN COUNCIL OF REGISTERE!) INSURANCE BROKERS, BILL 1003 A BILL

FOR

AN ACT TO PROVIDE FOR THE ESTABLISHMENT OF THE NIGERIAN COUNCIL OF REGISTERED INSURANCE BROKERS AND FOR TIlE TRANSFER OF ALL ASSETS IN

CUSTODY OFTIIE INCORPORA TED ASSOCIA nON TO TIlE COUNCIL; AND FOR RELATED MATTERS

[

EI'lACTI:D BY TIlENational Assembly of the Federal Republic of Nigerla-.

PART I-EsT/lllLlSHMliNl' OF Tim COUNCIL

1.-(1) There is established a body to be known as the Nigerian Council of Registered Insurance Brokers (in this Bill referred (0 as "the Council").

(2)Thc Councll-.

(a) shall be a body corporate:

(b) shall have perpetual succession and a common seal; and

(c) may sue and be sued in its corporate name,

2. The duties of me Council shall be 10-

(a) establish and maintain a central organization for Insurance Brokers;

(b) enrol insurance broklng body corporate; and

(c) may secure in accordance with the provisions of this Bill the establishment and maintenance of a register of Insurance Brokers containing the names, addresses and qualifications and such other particulars as may be prescribed of all persons who having applied in the prescribed manner, are entitled under the provisions of this Bill to be registered and the publication from time to time of the lists of these persons:

(d) shall encourage the dissemination of knowledge, education, practical training and research into the profession;

(e) may establish and maintain a library;

(j) may arbitrate or settle dispute or questions between members and other panics and discipline of members;

(8) may do such things from time to time aimed at elevating the status of Insurance Brokers and the protection of their interests and procure their general efficiency and proper professional conduct; and

(h) shall perform through the Governing Board established by section 3 (I) of this Act the functions conferred on it.

PART II-GOVERNING BO/>ROOF COUNClLETC

3.-(1) There is established for the Council a Governing Board ill this Bill referred to as "the Board") which shall be charged with the administration and general management of the Council.

(2) The Governing Boanl shall consist of the following members=

(a) the President of the Council who shall bc the Chairman:

0,) lhf' nf'nlliv ami Vir.f'Prf'~idt'nl" nf lht' r:llllucil·

] Commence- ment.

Establisbment of the Ccunell.

Duties or the Coaucn.

Governillg Board.

(a) as to his character and suitability to be a registered insurance broker, and

(0) that he has had 5 years practical experience in the insurance industry. (3) A Registered insurance broker simi I be eligible tu use the title Y Registered Insurance Brokers" ,

(4) Sublccr to the provisions of this Dill ami rules made by the Council, members of the Council shall be classified into four catcgories-.

(a) Fellows;

(b) Associates;

(c) Ordinal)' members; and

(d) Student members.

(5) Persons awarded any of the titles stipulated in this section shall be entitled to usc Ihe initials "Fcm'" (Fellow, Council of Register cd Insurance Brokers) ••ACm" (Associate Cuuncil of the Registered Insurance Brokers) as thc case may be,

7.-(1) TheCouncil shall establish and maintain a list of bodies corporate carrying on business as insurance brokers (in this Bill referred to as "the List") containing the names, principal places of business and such other particulars as may be prescribed by the Council.

(2) Subject to subsection (3) of this section and section 15 (I) of this Bill, a body corporate shall be entitled to be enrolled in uus list if it satisfies the Council that-

(a) at least one partner or director is a registered insurance broker; and

(0) it is a limited liability company incorporated in Nigeria. (3) Anenrojlcd body corporate shall be eligible 10usc the title of "Incorporated Registered Insurance

Brokers" .

(4) Enrolment ill ,the List shall be a condition precedent to the licensing of a body corporate by the National Insurance Commission.

8.-(1) An application for registration under section 5 of this Bill or an application for enrolment under section 6 of this Bill shall not be refused unless the Council gives the person by whom or the body corporate by which the application was made an opportunity to appear before it, and be heard by a Committee of the Council.

(2) Where the Council refuses any such application within seven days of its decision, it shall notify the applicant of its decision.

(3) A person or body corporate whose application is so refused may within twenty-eight days Jrom the date of notification of the decision appeal against the decision in a Court.

(4) On hearing such appeal the Court may make such order or orders as it thinks III and the order shall be final.

9.-(1) The Register and List shall be kept by the Executive Secretary of the Council who shall be appointed by the Council.

(2) The Council may make rules with respect to the form and manner of keeping the Register and List and the making of entries ami alterations and in particular-

(a) regulate the making of applications for registration of enrolment;

(b) notify the Bxecuuvc Secretary of any change ill the particulars required 10 be entered ill the Register or List;

(c) prescribe a fee to be charged on the entry of a name in, or the restoration of a name to, the Register or List:

Lilli or bodies corp•.••.ale tl\ttying {III business lIS Insurance broken.

Rerusalor Insurance broken "I'plicllli,,,, by the Ceuucll,

Supplemen· tary proylslons 10 the Register IIDd Usl.

(c) a representative of tllC Federal Ministry responsible for insurance mailers nOI below the milk of a Director;

(d) a representative of the Federal Ministry of Education nut below the rank of a Director; (e) a representative of the National Insurance Commission not below the rank of a Director;

fJ) past Presidents of the Corporation;

(g) not more than eight other elected Members;

(h) not more than six Chairmen of the Council Area Committees;

(i) the Executive Secretary of the Council who shall also be the Chief Executive OffiCCI' of the Council; and

(J) other members not exceeding two as may be co-opted by OICGoverning Board. (3) TIle Chairman and Members of the Board slmll be elected at the Annual General Meeting of the

Council.

(4) The provisions of the First Schedule to this Bill shall have effect with respect to the qualifications F;irstiSchedul~- and tenure of office of members of the Council and other matters.

(5) Regulations made by the Council with the approval of the Minister may provide for an increase or reduction in members of the Board and may make such amendments to subsection (2) of this section and the Schedules to this Bill as the M Inister considers expedient for the purposes of or in consequence of the increase or reduction.

PART In-ELECTION OF PRP..s\l)ENT, DEPlITYAND VICE-PRESIDENTS 01: ruu COUNCIL

4. There shall be for the Council-

(a) a President;

(b) a Deputy President; and

(c) a Vice-President who shall be elected for a term of one year and may be re-elected for another term only.

PART IV-REGISTRATION 01' INSURANCE BROKlJRS

5.-(1) The Council shall establish and maintain a register of insurance brokers (in this Bill referred to as ("the Register").

(2) The Register shall contain names, addresses. qualifications and other particulars as may be prescribed. of all persons who are entitled under tile provisions of this Bill to be registered and applied in the prescribed manner to be so registered.

(3) No person shall be registered by the Council as a registered insurance broker unless he satisfies the provision of section 6 of this Bill.

6.-(1) Subject to subsection (2) of uils section, a person for registration shall be entitled to be registered as a broker ir he satisfies the Council-

(0) that he is an associate of the Chartered Insurance Institute of Nigeria or identical body outside Nigeria and recognized by the Institute;

(b) that he possesses a certificate issued by the Council after passing examination prescribed by the Council for Insurance Brokers; or

(c) that he possesses the certificate of the Chartered Insurance Institute of Nigeria as an insurance broker and is a Chief Executive of all insurance broking company registered under the Insurance Decree 1997 and held such a position before coming into force of this Bill.

(2) A person shall not he entitled 10 be registered ill the Register by virtue of subsccuou (1) above unless to also satisfies the Ccuncil-.

Election "f President, Deputy l'md Vk:e· Presideol'l.

Registration of insllr1lDU brOkers.

Quallrlutious (<11' regi5tra· tion.

Li~tor bodes

(d) prescribe a fee 10 be charged in respect ofthc retention ill the Register Of List of any name in any year subsequent to the year ill which that name was first entered in the Register or List;

(e) provide for the entry in tile Register of qualifications (whether approved qualifications or not) possessed by person whose names arc registered and for the removal of such qualifications from the Register, and prescribing a fce to be charged in respect of the entry:

(/) authorize the Executive Secretary to refuse (O enter a name in, or restore it to, the Register or List until a fee prescribed for the entry or restoration has been paid ami to erase from the Register or List the name of a person who or body corporate which, after the prescribed notices and warnings, fails to pay the fcc prescribed in respect of the retention of that name in the Register or List:

(g) authorize the Executive Secretary to erase from the Register or List the name of a person who or body corporate which, after the prescribed notices and warnings. fails to supply information required by the Executive Secretary with a view to ensuring that the particulars entered in the Register or List are correct; and

(h) prescribe anything required or authorized by the provisions uf this Bill relating to the Register or US!.

(3) Rules under this section which provide for the erasure of a name from the Register or List on failure to pay a fee shall provide for its restoration on the making of U1C prescribed application in that behalf and on payment of that fee and any additional fcc prescribed in respect of the restoration.

(4) RUles under this section prescribing fees may provide for charges of different fees in different classes of cases and for the making of arrangements for the collection of fees with such body or bodies as may be prescribed.

10.-(1) The Council shall cause the Register and List to be printed ami published within one year of the establishment or the Council and as often as it thinks 111.

(2) Where the Register or List is not published in any year after the first publication, [he Council shall eause any alterations in the entries in the Register or List which have been made since the last publication to be printed and published within that year.

(3) A copy of the Register or List purporting {O be printed and published by the Council, shall as altered by any alterations purporting 10 be printed and published by the Council. be evidence in all proceedings that the individuals specified in the Register are registered or, as the case may be. that the bodies corporate specified in [he List arc enrolled; and the absence of the name of any individual or body corporate from ally such copy of the Register or List shall be evidence, until the contrary is shown, Umt he is not registered or, as the case may be, that it is not enrolled therein.

(4) In the case of an individual whose name or a body corporate the name of which docs not appear in any such copy of the Register or List as altered, a certified copy, under the hand of the Executive Secretary of the entry relating (0 that lndlvldual or body corporate in the Register or List shall be evidence of the entry.

PART V-ELECTION or HONORARY FcLLOWS ANI) ASSOCJATIiS

11.-(1) The Council may elect as an Honorary Fellow or llouorary Associate. a person who in its opinion, has rendered exceptional service and contribution 10 the insurance broking profession.

(2) A person awarded any title stated in subsection (I) of this section shall be entitled 10 usc the initials "FCm" (Fellow. Council or AClB (Associate, Corporanon of Regfstcred Insurance Brokers) as the case may be.

PART VI-EXliCLJflYE SECRl1fARY ANLl OIliER STAFF

12.-(1) There shall be for tile Council a fit and proper person who shall be the Executive Secretary of the Corporation and such other staff as the Corporation may, from time to time deem necessary.

PublkallOll of Reglster and LIsI.

Ettcll'lll or Hunurnry FelloWs and A!l.wclatts.

EXt1:ulln Sntehllty and alh't starr.

(2) The Executive Secretary shall, ill addition (0 his other functions under this UilJbe the Secretary to the Council and shall on UICInstructions of the President of the Corporation or any Conunlucc of the Council convene meetings of the Councilor any Counnurce ulld keep minutes of proceedings at all such meetings as the case may be.

(3) The Council may, whenever the Executive Secretary is absent or for auy other reason unable to discharge the functions of his office appoint an acting Executive Secretary to discharge those functions.

(4) 'Ole Executive Secretary and ether staff of the Corporation shall hold office 011 such conditions as the Council may determine.

13.-(1) The Council shall provide guidelines to regulate the conduct of members and may from time to time remove such guidelines.

(2) Subject to the provisions of subsection (1) of this section, any code of ethics and practice applicable in the Nigerian Insurance Industry the formulation of which the Council is a party. shall be required to be adhered to Of complied with by Registered Insurance Brokers and bodies corporate registered or as the case may be, listed under this Bill.

PART VII-FUND OF rns COUNCIL

14.-(1) There shall beestablished for the Council a fund which shall be managed and controlled by the Council.

(2) There shall bepaid and credited into the Fund-

(a) all fees and other moneys payable to the Council; and

(b) such moneys as are held by the Nigerian Councilor Insurance Brokers incorporated.

(3) There shall be paid out of the Fund-

(a) all expenditure incurred by the Council in the discharge of its functions under this DiU;

(b) the remuneration and allowances of the Executive Secretary and ether employees of the Council; and

(c) such reasonable traveling and subsistence allowances of members of the Council in respect of the time spent on duties of the Council as the Council may determine.

(4) The Council may invest moneys in the Fund in ally security created or issued by or on behalf of the Federal Government or in any other securities in Nigeria approved by the Council.

(5) The Council may, from time to lime. borrow money for the purposes of the Council and any Interest payable on moneys so borrowed shall be paid out of the Fund,

(6) The Council shall keep proper accounts on behalf of the Council in respect of each year and proper records in relation to those accounts; and the Council shall cause the aCCOUllISto be audited by an auditor and when audited the accounts shall be submitted to thc members of the Council for approval by them at a meeting of the Council.

(7) The Auditor, appointed for the purposes of this section, shall not be a member of the Council.

PART VIII-Mooll OFQpliRl\rrON OF PRACTISING INSURANCE BROKER AND ENROLLliD BODYCORPORATE

15.-(1) Tbe Council may make rules requiring registered insurance brokers (in this Bill referred to as "Practicing Insurance Brokers") and enrolled bodies corporate to ensure that-

(a) their businesses have a working capital of not less than ,.,5 milfiun, made up of verifiable movable and Immovable assets and cash in proportion as the Council may decide:

.) lit

. .,

RegulHlkHI or professIonal conduct.

Fund or the Council.

Requirement rot tarrytng on Business.

(b) uiey maintain a professional indemnity cover of not less than N 10 million ur 50 per cent of their annual brokerage Income for the preceding year. whichever is greater;

(c) the numbcrof insurance companies with which 111(:yplace insurance businesses and the amount of insurance business which thcy place with each Insurance company. is such as to pruvcnr their business from becoming unduly dependent on any particular insurance company;

(d) U1CYopen and keep clients' accounts at banks for money received by them for or on behalf of persons with whom they do business;

(e) they keep such accounting records showing UlC transactions of their businesses as may be prescribed;

if> they do not hold directly or indirectly financial Intcrest-,

(I) in excess of 10 per cent ill any reinsurance company; or

(Ii) Ina loss adjusllng company in Nigeria;

(g) they pay to the appropriate insurer any premium collected by them not later than 30 days of collecting the premium.

(2) A practicing insurance broker or an enrolled body corporate shall keep records of all insurance businesses handled by them and, for the purposes of this section, separate records shall be kept by the Practicing Insurance Broker Of enrolled body corporate with respect 1O-

(a) insurance business entered into with insurers registcred in Nigeria: and

(b) insurance business entered into with persons outside Nigeria,

(3) A practicing insurance broker and enrolled body corporate shall-

(0) keep accounting records which shall show and explain the business transacted by the practicing insurance broker or enrolled body corporate and disclose his or its financial position: and

(0) ensure that the accounting records kept under section (I) of this sccuou gi ves a true and fair view of his Of its business at the accounting dale.

(4) A practicing insurance broker or enrolled body corporate who contravenes the provisions of this section commits an offence and is liable on conviction to a fine ofN50.000.00.

16.-(1) The Council shall set up a panel to be known as tnc Investigatlon Panel. for the preliminary investigation of cases in which-

(a) it is alleged that a registered insurance broker or enrolled body corporate is liable to have his or its name erased from the Register or List on ally ground specified ill section 17; or

(b) a complaint of unprofessional conduct is made to the Council by or on behalf of a member of the public against a registered insurance broker or an enrolled body corporate or all employee of an enrolled body corporate:

(c) any such case is refereed to as "a disciplinary case".

(2) (a) A disciplinary case shall be referred to the Investigation Panel. which shall carry out a preliminary investlgatlon.

(b) Where the Panel is satisfied that there is sufficient evidence to support a finding that the registered insurance broker or enrolled body corporate is liable to have his or its name erased from the Register or List. the Panel shall refer the case. with the results of its investigation to the Disciplinary Tribunal set up under this Act.

.) t:

Prellmilluy Inu!llIgation or dl!iCipUnary e•••••

(3) The Council shall make rules as to the Constitution of the Investigation Panel.

17.-(1) The Council shall set up a committee to be known as the Disciplinary Committee for the consideration anddctcnnjnatlon of disciplinary cases rcrcrrcd ro it under section 12and of any ether cases ofwllich it has cognizance under the provisions of this Act.

(2) The COWlCU shall make rules as to the constitution of the Disciplinary Conuulttcc, the time and place of the meetings of the Committee. the quorum and the mode of summoning members.

(3) Rules under this section shall ensure that a persou ether than the Chairman of the Council who bas acted on any disciplinary case dues not act in relation to that case as a member of the Disciplinary Committee.

18.-(1) Where a registered insurance broker or enrolled body corporate Is-

(2) convicted by any Court in Nigeria of any criminal offence being an offence which owing to its nature or the circumstances under which it was committed, does not render him or it fit to have his or its name on the Register or List, or

(b) judged by me Disciplinary Committee to have been guilty of professional misconduct, the Disciplinary Committee may, if It thinks fit, direct that the name of the Insurance broker or body corporate be erased from the Register or List.

(2) If it appears to the Disciplinary Committee that a registered insurance broker or enrolled corporate body has contravened or failed to comply with Decree 2 of 1997, or any rule made under the Insurance Decree No.2 of 1997 and that the contravention or failure is such as to render the insurance broker unfit to have his name on the Registeror the body corporate unfit to have its name on the List. the Disciplinary Committee may. ifit thinks fit, direct that the name of the insurance broker, or body corporate be-erased from the Register or List.

(3) Where-

(a) the name of a partner of an enrolled body corporate is erased from the Register under subsection (1) of this section, or

(b) a partner of any such body corporate is convicted of an offence under this Act, or

(c) the name of a registered insurance broker employed by any such body corporate is erased from the Register under Subsection (I) of this section and UIC act or omission constituting the ground on which it was erased instigated or connived at by a partnerofthe body corporate. orifthe act cr ouussion was a continuing act or omission, a partner of tile body corporate had. or reasonably ought to have had Knowledge of the continuance, the Disciplinary Committee may, if it thinks fit. direct that the name of the body corporate 1Jc erased from the List.Provided that the Disciplinary Committee shallnot take a case into consideration during any period within which proceedings by way of appeal may be brought which may result ill this subsection being rendered inapplicable while any such proceedings are pending.

(4) If me Disciplinary Committee is of the opinion as respects an enrolled body corporate that the conditions for enrolment in section 6 of this Bill are no longer satisfied, the Disciplinary Committee may, if it thinks fit, direct that the name of the body corporate be erased from the List.

(5) Where a registered insurance broker dies while he is a partner of an enrolled body corporate. he shall be deemed for the purpose of subsection (4) above to have continued to 1Jca partner of that body until tile cxplratlon of a period of six months, beginning with the date ofilis death.

(6) Where the Disciplinary Committee directs that the name of all Individual or body corporate shall be erased from the Register or List, the Executive Secretary shall serve 011 that Individual or body a notification of the direction ami a statement of the Committee's reasons.

(7) A body corporate whose name has been erased from the List shall have iL'S certificate uf registration revoked by UIC National Insurance Commission.

J((

OIsdpllmtry CommlUee.

ErW'iore from the R~l:ist~r and List rlH' crkn~1 aRprOre!l- 610R81

conduct, ere.

(8) A body corporate who, through disciplinary action or otherwise has the number of its partners reduced to one shall Immediately appoint an additional partner provided that if the body corporate remains for 12 months with one partner the 118111C of me body corporate shall be erased and us certificate of registration revoked by rho National Insurance Connuisslon.

19,-(1) Where thc name of all individual Of body corporate has been erased from the Register or List in pu~uance of a direction under section 18. the name of that individual or body corporate shall not again be entered in the Register or list unless the Disciplinary Committee on application made 10 il in that bchalf otherwise direct.

(2) An application under subsection (I) of this section for UIC restoration of a name in the Register or List shall be made to the Disciplinary Commiuee-

(a) within ten months of the dale of erasure; or

(b) within ten months of a previous application.

20,-(1) Where it is proved 10 the satisfaction of the Disciplinary Committee that any entry in the Register or List has been fraudulently or incorrectly made, Ihe Disciplinary Committee may. if it thinks fit, direct that the entry be erased from such Register or List.

(2) An individual may be registered or a body corporate enrolled in pursuance of this Act notwithstanding that his or its name has been erased under this section.

(3) When it is so erased on the ground of fraud, that individual or body corporate shall not be registered orenrollcd except on an application in that behalf to the Disciplinary Ccmruluee and on any such application, the Disciplinary Committee may. if it thinks fit. direct that the individual or body corporate shall 001be registered or enrolled, or shall not be registered or enrolled until the expiration of such period as may be specified in the direction.

(4) Where the Disciplinary Committee directs that the name of an individual or body corporate shall be erased from tlic Register or List under this section. the Executive Secretary shall serve 011 that individual or body a notification of the direction and a statement of the Couuniuce's decision.

21.-(1) Where the Secretary of the Commiucc serves a notice on an individual or a body corporate of the decision that his or its name be erased from the List or Register. such individual or body corporate may appeal such decision before a Court.

(2) The Council may appear as respondent on any such appeal and for tile purpose of enabling directions to be given as to the costs of any such appeal the Council shall be deemed to be a party whether it appears at the hearing of the appeal or 1I0t.

(3)Where no appeal is brought against a direction under section 20 or scctiou z l of this Dill or where such an appeal is brought but withdrawn or struck out for want of'prosccutlon, the direction shall take effect on the expiration of the time for appeal or. as the case may be. on the withdrawal or striking out of the appeal.

(4) Where an appeal is brought against a direction under either oftbose sections, the direction shall take effect when the appeal is dismissed and not otherwise.

22.-(1) For the purpose of any proceedings before the Disciplinary Conuulucc. the Conuniuee may administer oaths, on any party to Ole proceedings may Issue 00l writs of subpoena ad testificandum ad tecum. but no person shall be compelled under any such writs to produce any document which he could not be compelled to produce on the trial of an action.

(2) TIIC Council shall make rules as to the procedures to be followed and the rules of evidence to be observed ill proceedings before the Disciplinary Tribunal; and ill panicular-

(a) ensure that the notice that the proceedings arc to be brought shall be given. at such time and in such manner as may be specified in the rules, to the individual or body corporate alleged to be liable to have his or its name erased from the Register or List;

(b) ensure that any party to the proceedings shall, ifhe so requires, be entitled 10 be heard by the Disciplinary Commtnee:

) II

Restoration or names erlUed ••• a re~ult of disciplinary clllie~.etc.

Era.,ure from Regblter BAd List 01] j:rfJund (lr rraud or error.

Appeals in disciplinary imd oilier case5.

Procedure 01 1)isl;:lpJlna'y Commitlee.

(c) enable any party to the proceedings to be represented by counsel or solid tor or (if the rules so provide and the party so elects) by a person of such other description as may be specified ill the rules;

(.Q "'4U'''' proceedings bcforu thc Dtsclpthmry Cunun Iucc 10be held iupublic ""1'1 In so tar as •••ay be provided by the rules;

(e) enquire, in cases where it is alleged that a registered Insurance Broker or enrolled body corporate has been guilty of unprofessional conduct, and the Disciplinary Committee finds that the allegation has not been proved, it shall record a finding that the registered insurance broker or body corporate is not guilty of such conduct in respect of the matters to which the allegation relates;

if) require in cases where it is alleged that a registered insurance broker or enrolled body corpora te is liable to have his or its name erased from the Register or List under section 19 (2) of this Act and where the Disciplinary Committee judges that the allegation has 1I0t been proved, it shall record a finding that the registered insurance broker or body corporate is not guilty of the matter alleged.

23.-(1) For the purpose of advising me DlsclplluaryCommittee on question of law arising in proceedings before it, there shall in all such proceedings be an assessor to the Disciplinary Comruluec who shall be a Legal Practitioner of not less than tell years standing.

(2) The power Ofappointing asscsscrsundcrthis section shall be exercisable by the Council, but if no assessor appointed by it is available to act at any particular proceedings, the Disciplinary Committee may appoint an assessor under this section to act inthe proceedings.

(3) Subject 10 the provisions of this section, an assessor under this section may be appointed either generally or for any particular proceedings or class of proceedings, and shall hold and vacate office in accordance with the terms of rho instrument under which he is appointed.

(4) Any remuneration paid by the Council to persons appointed to act, as all assessor shan be at such rate as lhe Council may determine.

24.-(1) The Council may set up a committee for any purpose (other Ulan a purpose for which the Council is required to set up a Committee under this Bill) and may delegate to any such CommiUee-

(a) the power to make rules under rhis Bill;

(b) any functions expressly conferred by this Dill 011 any Conunittce set up under this section.

(2) The number of members of a eonunittee set up under this section and Ulcir term of office shall be fixed by the Council.

(3) A committee set up under this Bill may include persons who arc not members of the Council. but at least two-thirds of the members of every such committee shall be members of the Council.

(4) Every member of a commiuce set up under this Bill who at UIC time of appoinuncm was a member of the Council, also ceases to be a member of the commtuec.

PART IX-RESTRICrlON ON USE OF TITLES ANO DESCRIPTiONs

25.-(1) Any person who wHfully-

(a) takes or uses any style, title or description which consists of or includes the expression "Registered Insurance Broker" when he is not registered in the Register; or

(b) takes or uses any name, title. addition or description falsely implying, or otherwise pretend, that he is registered in the Register shall be liable Oil summary conviction to a fine not exceeding N50,OOO.OOor imprisonment for 3 months or both.

(2) Anybody corporate which wilfuUy-

(a) lakes or uses any style, title or description which consists of or includes the expression "Insurance Broker" when it is nOI enrolled in the List; or

A.~seuol$lo Di.o;cipllnary Commillee.

Gencral power 10 appoint committee,

PenallYfor pretending In be rtgislcred. etc.

(b) takes or uses any name, title, addition or description falsely implying, or otherwise pretends, that it is enrolled in the List, shall be liable on summary conviction to a fine not exceeding /'II 100,000.00.

(3) Reference in this section to the expression "Insurance Broker" includes references to the following related expressions that is to say" Assurance Broker" Reinsurance Broker" and "Reassurance Broker".

) II

26.-(1) Where a practicing insurance broker dies, the Council may, during (he period of three months beginning from his death DC such period dire" that section 25 shall not operate (0 prevent his Exeepnous. personal representatives, his surviving spouse or any of his children from taking or using in relation to his business, but in conjunction with the name in which he carried on, any title which he was entitled to take or use immediately before his death.

(2) Where a practising insurance broker becomes bankrupt. the Council may during the period of three months beginning from the time of bankruptcy or such other period direct, that Section 25 shall not operate to prevent his trustee or assignee in bankruptcy from taking or using in relation to his business, but in conjunction with the name in which he carried on, any title which he was entitled to take or U$C immediately before the bankruptcy.

27. Where an offence under this Bill is committed by a body corporate and is proved to have been committed with the consent of. or connivance of or is attributable to any negligence on the part of, any partner, director, manager, secretary or other similar officer of the body corporate, or any person purporting to act in any such capacity, he as well as the body corporate shall be deemed to bc guilty of the offence and may be proceeded against and punished.

28. Any person who, for the purpose of procuring the registration of any name, qualification or other mauers-.

(a) makes a statement which he believers to be false; or

(b) recklessly makes a statement which is false, commits an offence and is liable 011 conviction to a fine nOIexceeding N20,OOO.OO or imprisonment for3 months or both.

PART X-MISCELlANEOUS AND GENERAL

29.-(1) From the comrnencememof'thls Bill-

(a) all assets and liabilities held or incurred immediately before that day by or 011 behalf of the Incorporated Association shall, by virtue of this Bill and without any further assurance vest in the Council and be held by it for the purposes of the Council;

(b) subject to subsection (2) of this section, any act or thing made or done by the Incorporated Association shall be deemed to have been made or done by the Council.

(2) The provisions of Second Schedule to this Act shall have effect with respect to matters arising from the transfer by this section to the Council of the property of the Incorporated Association and with respect to the other matters.

30. The Minister may give to the Council, directives of a general character or relating generally 10 particular matters (but not to any individual person or case) with regard to the exercise by the Council of its functions and the Council shall comply with the directives.

31-(1) The Council may, with the approval of the Minister, make regulations generally for the purpose of this Bill and any regulations so made shall be published in the Gazette as soon as practicable and a copy of any such regulations shall be sent to the Ministernot later than 7 days before they arc so published.

(2) Rules made for the purposes of this Bill shall be subject to conffrmation by the Council at its next general meeting or at any special meeting of the Council convened for the purpose, and if the general meeting refuses to contlrrn such rules shall cease to have effect 011 the day after the date of refusal, but without prejudice to anything done in pursuance of any such rules.

Offences by bodles corporllte.

,,·a tse statement.

Transrer or assets and liabilities.

Power of the Mhdsler III give directives to the Council.

Regulatiun.

32. The Council may make rules fOI"-

(a) prescribing the amount and date for payment of the annual subscription and for such purpose. different amounts may be prescribed by the rules according to the category of membershlp;

(b) prescribing the form of certificate to practice to be issued annually or, if the Council thinks flt, by endorsement on an existing certificate; and

(c) prescribing the form and usc of the Council '8 logo.

33.-(1) The word "broking" appearing in section 2 (5) of Charter cd Insurance Institute of Nigeria Act of 1993 is hereby deleted.

(2) Section 36 of the Insurance Act 1997 is amended by deleting subsection(3) and substituting for the following new subsection-

"(3) If the Commission is satisfied that the applicant is a listed body corporate within the meaning of the Nigerian Council of Registered Insurance Brokers Bill 2003" .

34. In this BiIl-

"body corporate" means an association of person or partncrsshlp duly registered under Part B of the Companies and Allied Matters Act No.1 1990;

"Council" means the Nigerian Council of Registered Insurance Brokers established under section 1 of this Bill;

"Board" means the Governing Board of the Council established under section 3 of tnis Bill;

"Employee" in relation to a body corporate, includes a director of the body corporate and shall be construed accordingly;

"Enrolled" means enrolled in the List and "Enrolment" shall be construed accordingly;

"Executive Secretary" means the Executive Secretary of the Council appointed under section 12 (1) of this Bill;

"Fees" includes annual subscription;

"Functions" includes powers and duties;

"Incorporated Association" means the Nigerian Corporation of Insurance Brokers incorporated under the Companies and Allied Matters Act 1990;

"Auditor" means a person enrolled or registered as an accountant pursuant to any enactment in eria: "Insurance Broker" means a registered insurance broker or enrolled body corporate and includes

reinsurance broker;

"Insurer" or" Insurance Company" means a company which is carrying on insurance risk and is registered under the Insurance Act 1997 for the purpose and includes a reinsurer;

"List" means the List of bodies corporate carrying on buslucss as Insurance Brokers;

"Member of the Corporation" means a person registered by the Corporation as a Registered Insurance Broker and "membership of the Corporation" shall be construed accordingly;

"Minister" means the Minister charged with responsibility for matters relating to insurance and "Ministry" shall be construed accordingly;

Fees lind prllcllslllg cerlificRlc.

Amcndment of Acl No.22.1993

lnierprelll- lion.

••Panel" has We meaning assigned 10 it by section 1(i of this Bill; .1'1, I

••Practising Insurance Broker" menus a Registered Insurance Broker who is carry Ing onbuslucss as an Insurance Broker;

"Prescribed" means prescribed rules under this Dill;

••President" ." Deputy President" anti "Vice President" means respectively the office holder under those names in the Council;

"Profession" means the profession of insurance broking; and

"Register" means the register of Insurance Brokers and "Registered" and "Registration" shall be construed accordingly.

35. This Bill may be cited as the Nigerian Council of Registered Insurance Brokers Bi!I. 2003.

SCHEDULES

SCHEDULE 1 Sections 3 (4)

L (1) Subject to the provisions of this paragraph, a member of the Governing Board shall hold office for a period of three years commencing from the dale of his appointment or election.

(2) The President, Deputy President and Vice President shall each hold office for a period of one year subject to a re-election for another term of one year such that no person shall hold the office of President for more than two consecutive years.

(J) In the case ofa person who is a member by virtue of having been the President orthe Council, he shall retain his membership of the Governing Council without limitation as to duration,

(4) The Executive Secretary as a member of the Governing Board shall have no voting right and shall relinquish his membership of the Governing Board upon the determination of his contract of appoint men I.

(5) Any member of'the Council who ceases to be a member thereof shall, ifhc is also a member oflhe Governing Board, cease to hold office on the Governing Board.

(6) Any member may, by notice in writing under his hand addressed to the President o~lhe Council, resign his office.

(7) A person who retires from or otherwise ceases to be an elected member of the Governing Board shall be eligible again to become a member of tile Governing Board by re-election and any appointed member may be re-appointed.

(8) Elections to the Governing Board shall be held ill such manner as may be prescribed by rules made by the Governing Board, and until so prescribed, they shall be decided by secret ballot.

(9) lffor any reason there is a vacation of office by a member and (a) such member was appointed, the person or body that appointed

him shall appoint another tit and proper person to replace such member; or

(b) such member was elected, the Governing Board may. if the time between the unexpired portion of the term of office and the next general meeting of the Council appears 10 warrant the filling of the vacancy, co-opt sorne [it and proper person for such time.

2. The Governing Board shall have power to do anything which in its opinion is calculated to facilitate the carrying on ot thc activities of tile Council.

(1) Subject to the provisions of this Dill, the Governing Board may in the name of tile Council make standing orders regulating the proceedings of the Council, the Governing Board or any of their Committees.

(2) The Standing Orders shall provide for decisions to be taken by a tl1ajority of the members, and, ill the event of equality of vole 5, the President of the Council Of the Chairman, as the case may be, shall have a second or casting vote.

(J) Standing Orders made for a committee shall provide that the committee reports back 10 the Guvcming Heard en any matter ",",,,J 10 ;1 hy Ihe Council.

Supplt"mt"trJary Prov&loru rdatlng to tht" Gort"ming Bot/rd, qut/l(f1cQdotu alld tenure of office of Members

Powers of the Governing Board. Etc.

4. The quorum of the Governing Board shall be seven and the quorum ore Committee of the Council shall be determined by the Council

5. (I) The Governing Doard shall convene the general meeting ofthe Council once in every year on such day as the Governing Hoard may. from lime to time. appoint. so however that if the meeting is not held within one year after the previous meeting, net more than fifteen months shall elapse between the respective dates of the two meetings.

(2) A special general meeting of the Council may be convened by the Governing Board at any time, and ifnot less than 20 members or the Council require it by notice in writing addressed to the Executive Secretary ofthe Council selling out the objects of the proposed meeting, tile Chairman of tile Governing Board shall convene n special meeting of tile Council.

(3) The quorum of any meeting of the Council shall be 10 members and that of any special meeting ofthe Council shall be 15 members.

6. (I) Subject to the provisions of any standing orders of the Governing Board, the Governing Board shall meet whenever it is summoned by the Chairman; and if the Chairman is required to do so by notice in writing given to him by not less than seven other members, he shall summon a meeting of the Governing Board to be held within seven days from the date on which the notice is given,

(2) At any meeting of the Governing Board, the President or in his absence the Deputy President or the V icc President shall preside, but if all of them are absent, the members present at the meeting shall appoint one oftheir members to preside at that meeting.

(3) Where the Governing Board desires to obtain the advice of any person on a particular matter, the Governing Board may co-opt him as a member for such period as the Govern Board thinks fit; but a person who is a member by virtue of this subparagraph shall not be entitled to vote at any meeting of the Governing Board and shall not count towards a quorum.

(4) Any member of the Councilor of the Governing Board, and any person holding office 011a committee of Ihe Governing Board, who has a personal interest in any contract or arrangement entered into or proposed to be considered by the Governing Board on behalf of the Council, or on behalf of the Governing Board or a commfucc thereof shall forthwith disclose his lntcresr ro the President or to the Governing Board, as the case may be, and shall not vote on ally question relating to the contract arrangement.

SCHEDULE 2 Section 29 (2)

Transitional Provisions as to Assets and Liabilities

I. Every agreement to which the Incorporated Association was a party immediately before the commencement of this Uill, whether in writing or not and whether or not of such a nature that the rights, liabilities and obligations thereunder could be assigned by the Incorporated Association. shall, unless its terms or subjectmatter make it impossible that it should have effect as modified in the manner provided by these subparagraphs, have effect From the commencement of this Dill so far as il relates to assets and liabilities transferred by this Act to the Corporation, as if-

(I)

(It) the Cnuncil h:ul heen It pnrly to the Ilr,reemenl;

General meeting of the COl/neil

Meeting v/the Governing Board

Transfer of Assets and Liabilities

(b) for any reference (however worded and whether expressed or implied) to the Incorporated Association, there were substituted as respects anything failing to be done on of after the commencement of this Bill a reference to the Council.

(c) for any reference however worded 10a member or members of the Governing Council of the Incorporated Association or an officer of the incorporated Association. there were substituted, as respects anything failing to be done on or after the commencement of this Hill, a reference to a member or members of the Governing Board under this Bill.

(2) Other documents which refer, whether specially or generally, to the Incorporated Association shall be considered in Accordance with subparagraph (I) of this paragraph so far as applicable.

(3) Without prejudice 10 the generality of the foregoing provisions of this Schedule, where, by the operation of section 2 of this Dill, any right, liability or obligation vests in the Council, the Council and all other persons shall, as from the commencement of this BHI I"" rbe "n1O rights, powers and remedies (and. in partlculw, the same rights as to the laking or resisting of legal proceedings or the making or resisting of applications to any authority) for ascertaining, perfecting or enforcing that right, liability or obligation as they would have if it had at all times been a right, liability or obligation ofthe Council.

(4) Any legal proceedings or applicetiou tc any authority pending on the commencement of this Bill by or against the Incorporated Association and relating to assets or liabilities transferred by this Bil! to the Council may be continued on or after that day by or against the Council.

2. On the commencement of this Bill, any person holding any paid appointment in the Incorporated Association shall hold corresponding appointment in the Council on the same terms and conditions as 10tenure and otherwise but shall not be entitled to receive remuneration both from the Incorporated Association and from the Council in respect of the same period of service.

J. lfthe law in force anhe place where any property transferred by this 13m is situate provides for the registration or transfer of property of the kind in question (whether by reference 10 an instrument or transfer or otherwise), the law shall. $0 far as it provides for alterations of a register (but not for avoidances of transfers, the payment offees or any other matter) apply with the necessary modifications to the transfer of the property aforesaid; and it shall be the duty of the Governing Board to furnish the necessary particulars of the transfer to the proper officer of the registration authority, and for that officer to register the transfer accordingly.

4. All regulations. rules and similar Instruments made for the purposes of the Incorporated Association and in force immediately before the coming into force oflhis Dill sha'~ except in so far as they arc subsequently revoked or amended by any authority having power in that behalf have effect with ally necessary modification as if duly made for the corresponding purpose of the Council.

I CERTIFY, IN ACCORDANCE WITH SECTON 2(1) OF THE ACTS AUTHENTICATION ACT, CAP. 4, LAWS OF THE FEDERATION OF NIGERIA 1990, THAT THIS IS A TRUE COPY OF THE BILL PASSED BY BOTH HOUSES OF THE NATIONAL ASSEMBLY.

~ CAJA-

'JJS· S-/fp/~3 IBRAHIM SALIM, CON

CLERK TO THE NATIONAL ASSEMBLY

~-~h JUNE,2003

' .•....•..••.•.....• .&.0'...., .•.....•.•.....•.••.•..•..••.••.•• ~~, •..••..• ~~--., •. ,. ~~~,.~~_ - ---------- ~ ~~- - - - '(5) :JI) (2) (3) I (4)HORT TITLE OF LONG TITLE 'H fHE SUMMARY OF THE I DATE PASSED BY DATE PASSED BY

THE BILL BILL CONTENTS OF THE ,

SENATE HOUSE OF IBILL I REPRESENTATIVES

I AN ACT TO PROVIE FOR This Bill seeks to provide for : I

HE NIGERIAN i :OUNCILOF THE ESTABLISHMENT OF I the establishment of the I 28th May. 2003 22"d May,2003i THE NIGERIAN COUNCIL ,:EGISTERED Nigerian Council of I ,! OF REGISTERED~SURANCE i INSURANCE BROKERS Registered insurance Brokers I:ROKERS BILL, 2003 I ANDFOR THE TRANSFER and also for the transfer of all

OF ALL ASSETS IN assets in custody ofthe CUSTODY OF THE Incorporated Association to INCORPORATED the Council.ASSOCIATION TO mE COUNCIL; AND FOR RELATED MATIERS.

I certify that this Bill has been carefully compared by me with the decision reached by the National Assembly and found by me to be true and correct decision of the Houses and is in accordance with the provisions of the Acts Authentication Act Cap. 4. Laws of the Federation of Nigeria 1990.

~ v-J .••• ~ I' ~71>/()-.rOl

IBRAHIM SALIM, CON Clerk to the National Assembly ••--II, June, 2003

ASSENT, CHIEF OLUSEGUN OBAS NJO, GCFR• pr~";~i!!/he Federal Repu lieofNigeriaIf 2003

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